Archive for the ‘Selling A House’ Category

Beware Legal Pitfalls With Foreclosures, Short Sales

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Daily Real Estate News | Monday, September 26, 2011

http://realtormag.realtor.org/daily-news/2011/09/26/beware-legal-pitfalls-foreclosures-short-sales?cid=WR09292011:30262&ed_rid=1698691

Short sale and foreclosure transactions can be fraught with potential legal problems for real estate professionals. And as the number of these transactions continues to skyrocket, agents need to be careful, Stella Ling, managing senior counsel of the California Association of REALTORS®, told a crowd at CAR’s REALTOR® Expo last week.

Short sales success rate is only about 50 percent, Ling said, so “the best thing to do is to prescreen the short-sale listings.” For example, she encouraged agents to look for home owners who have refinanced in the mid-2000s and to avoid listings where a second trustee lender can come back for a deficiency through a judicial foreclosure or might not agree to a short sale. Ling also recommends checking to see if the seller has considered a bankruptcy.

Another danger she points to is “reverse staging.” With reverse staging, sellers trash the property in order to devalue the property. Ling says real estate professionals should ensure sellers don’t do any damage and if they suspect any, they should reconsider proceeding with the transaction.

“If a seller does reverse staging, destroying their own home, what else are they going to do? What other misrepresentations are they going to make?” Ling told the crowd of real estate professionals.

Ling also suggests when handling REO transactions that real estate professionals read the REO addendum carefully that lenders often add to the purchase contracts. Oftentimes, these addendums make buyers give up a lot of their rights, she notes.

Source: “Avoiding the Legal Pitfalls of Distressed Real Estate,” Inman News (Sept. 23, 2011)

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As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.com http://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegatesIf you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

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Banks Agree to More Short Sales

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Daily Real Estate News | Friday, August 26, 2011
source Bloomberg News 8/24/11

http://realtormag.realtor.org/daily-news/2011/08/26/banks-agree-more-short-sales?cid=WR08312011:27896&ed_rid=1698691

Banks are agreeing to more short sale transactions, and short sales are taking less time to sell, which is helping to clear large inventories of distressed properties more efficiently, says James J. Saccacio, RealtyTrac CEO, in releasing new housing data this week.

“This is a glimmer of hope that lenders are getting more realistic,” Rick Sharga, senior vice president of RealtyTrac, told Bloomberg News. “It’s a win for borrowers who avoid foreclosure, buyers who get a house in better condition and banks that lose less money, which is also a win for taxpayers.”

During the second quarter, the number of homes nearing foreclosure accounted for 12 percent of total home sales, with banks agreeing to more transactions at prices below the outstanding mortgage balance, RealtyTrac reported in releasing its second quarter data this week.

What’s more, pre-foreclosure homes took an average of 245 days to sell after receiving the initial foreclosure notice–that’s down from 256 days in the first quarter, RealtyTrac reports.

Sales of homes in the foreclosure process or short sales sold on average for a 21 percent discount–or an average sales price of $192,129–compared to the sales price of non-distressed homes.

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As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegatesIf you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

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45-day Short Sale Decision Legislation Introduced

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www.realtor.org
On Tuesday, April 12th, 2011, Representatives Tom Rooney (R-FL) and Robert Andrews (D-NJ) introduced H.R. 1498, the “Prompt Decision for Qualification of Short Sale Act of 2011″. This legislation makes it mandatory for mortgage servicers to reply to a short sale application within 45 days of submission. If the servicer fails to provide a decision to the short sale applicant within that time period, the application is deemed approved. NAR has heard from many of our members nationwide that the length of time for a decision on a short sale application remains a significant impediment for this foreclosure mitigation option. It is the NAR’s hope that this legislation will not just shine a light on the short sales issue, but establish a mechanism for the development of an appropriate solution.

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As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegatesIf you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

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U.S. Consumer Panel, HUD Change Course on Chinese Drywall

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By Duane Marsteller

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RISMEDIA, March 22, 2011—(MCT)—For more than a year, two federal agencies have urged homeowners with Chinese drywall to replace all electrical wiring when fixing their homes. Recently, the U.S. Consumer Product Safety Commission and the U.S. Department of Housing and Urban Development altered course—lending credence to a homebuilder group’s protocol, conflicting with a court-monitored national remediation program and drawing criticism from some quarters.

The federal agencies revised their drywall remediation guidelines to say that some, but not all, electrical wiring and components must be removed. The change stems from additional laboratory testing of electrical components that found that long-term exposure to hydrogen sulfide—the primary gas emitted by the tainted drywall—did not always substantially worsen the risk of smoke or fire.

“In general, residential electrical system components appear to be relatively tolerant of the corrosive environment created by problem drywall, if the system is installed properly,” a commission report says.

The commission and HUD also added 2009 to the range of years in which the corrosive drywall was installed in U.S. homes. The previous ending year was 2008. Drywall installed in 2009 was imported two to three years earlier, said the agencies.

The drywall, mostly imported from China, has been blamed for emitting sulfuric gases that corrode electrical and metal components, produce noxious odors and cause health ailments such as runny noses and headaches.

Concerned that corroded electrical wires could lead to a higher risk of fire, the commission hired Sandia National Laboratories in New Mexico to conduct long-term testing. The lab purchased electrical outlets, circuit breakers, wiring and other electrical components, then subjected them to eight weeks of testing that simulated 40 years’ worth of corrosive conditions that could be found in homes with the problem drywall.

Their findings: Some components corroded faster than others, depending on how often they were used, how well they were installed or connected, and other factors. Based on that, officials revised the guidelines to recommend replacing the following items that tend to corrode faster:

• Fire-safety alarm devices, including smoke and carbon monoxide alarms.
• Electrical distribution components such as receptacles, switches and circuit breakers.
• Gas service piping and fire-suppression sprinkler systems.

Other electrical wiring, such as that behind walls, also can corrode but not severely enough to always warrant their automatic removal, said both the agencies and laboratory.

But that recommendation was heavily qualified.

“While no fire, smoking or other safety events occurred during the course of this experiment, CPSC staff and Sandia are mindful of the limited scope and controlled conditions of this experiment,” they say in a 89-page report of their findings. “The experiment does not, and could not, possibly capture every permutation of conditions, wiring, installation, brands, environmental conditions and other possible confounding factors that are actually present in the affected houses.”

That concerns Mike Foreman, a Sarasota, Fla., construction consultant who has been researching the corrosive drywall for more than three years.

Foreman says the lab results are incomplete, noting that testing was limited to 110-volt outlets and wires with PVC insulation. Further testing needs to be done on 220-volt outlets and wires with other types of insulation for starters, he contends.

“It’s nice that they came out with this information, but it’s lacking detail,” says Foreman. “All it does is just add confusion.”

By revising their guidelines, the agencies now differ from those issued by a federal judge who is overseeing a consolidated court proceeding on Chinese drywall.

In a pair of rulings last year, U.S. District Court Judge Eldon Fallon said all electrical wiring should be removed as part of any repairs done under the court case. A drywall manufacturer is now following that standard as it fixes 300 homes in a pilot program that could lead to a national settlement.

Several attorneys in the case say it is unlikely Fallon will change his requirements, which can cost $100,000 per home to implement, as a result of the agencies’ revision.

But the agencies now are more in line with recommendations the National Association of Home Builders issued earlier this week. Some have criticized the builders’ protocol because it does not recommend the removal of all wiring.

“Now, we have complete alignment and a sense of relief for homeowners and builders that, if there is no corrosion in the wiring, it doesn’t necessarily have to be removed,” says Katherine Cahill, product risk services managing director for Marsh Risk Consulting, who helped develop the NAHB’s standards.

(c) 2011, Bradenton Herald (Bradenton, Fla.)

Distributed by McClatchy-Tribune Information Services

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegatesIf you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

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Having Problems Short Selling Your Home

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http://www.realtor.org/government_affairs/gapublic/making_home_affordable_servicer

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What Should You Do If You Think a Servicer Isn’t Following the Making Home Affordable Program Guidelines

Members have called NAR asking what to do if they think that servicers are not following the guidelines for the Obama Administration’s Making Home Affordable Program for modifying eligible mortgages and refinancing Fannie Mae and Freddie Mac mortgages. Here are the recommended steps to take:

1) First, go to www.makinghomeaffordable.gov, the official Treasury website for the Making Home Affordable Program. At the site, determine whether the loan is owned or guaranteed by Fannie Mae or Freddie Mac by clicking “Loan Look Up” on the ribbon on the top of the home page. Only the holder of the loan is allowed to perform this , so do in the presence of your client or after obtaining their written permission.

If the loan is a Fannie Mae or Freddie Mac loan, call (1) 1-800-7Fannie or (1) 1-800-Freddie, as appropriate, describing the specific inconsistency. Do this whether the issue relates to the refinancing or the loan modification program.
2) Next, if the loan is not owned or guaranteed by Fannie Mae or Freddie Mac you can determine if the servicer is participating in the Home Affordable Modification Program (HAMP) by going to the website and clicking “Contact Your Mortgage Servicer” on the top ribbon. To date, 16 servicers are participating, covering more than 80% of all mortgages.

If the servicer is participating, the first step is to contact the servicer using the phone number or email address listed on the site so you can appeal the issue to a supervisor. Be sure to identify the specific provision of the guidance that you believe is not being followed. If the supervisor cannot or will not correct the problem, call 1-800-7Fannie to report the disagreement. Fannie is administering the program for the Treasury Department and will work to resolve the issue.

Making Home Affordable Program Website (consumer friendly)
www.MakingHomeAffordable.gov

Site for Detailed Information on Making Home Affordable and Other Government Programs
www.FinancialStability.gov

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegatesIf you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my blog titled  “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

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What is a Short Sale

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www.realtor.org

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Image via Wikipedia

A short sale is a transaction in which the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.

Why is the number of short sales rising?

Due to the recent economic crisis, including rising unemployment, and drops in home prices in communities across the nation, the number of short sales is increasing. Since a short sale generally costs the lender less than a foreclosure, it can be a viable way for a lender to minimize its losses.

A short sale can also be the best option for a homeowners who are “upside down” on mortgages because a short sale may not hurt their credit history as much as a foreclosure. As a result, homeowners may qualify for another mortgage sooner once they get back on their feet financially

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates . You can also follow me at http://www.twitter.com/chancegates . If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my blog titled “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or to request a modification. If the modification fails, contact your local real estate professional to help short sale your home. To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

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Preparing a House to Sell Part 9

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Making the Most Of the
Basement/Laundry spaces

... and this is just the living room. i need t...
Image via Wikipedia

If you have a basement or laundry room, you want to make the most of the space by brightening it up and making sure it’s clean and inviting.

Nobody wants to go into a dark and crowded room to do laundry, so do your best to make it as inviting as possible.

Here are some simple tips:

  • Tidy up and organize your basement.  Discard, donate, or recycle items you can give away.
  • If you have unfinished concrete floors, paint the concrete to give it a cleaner look.
  • Be sure to clean and polish the washer and dryer to give them a bright and shiny look.
  • Put all detergents, laundry items and irons out of sight.  Remove any residue that may have accumulated in the laundry sink.
  • Notes:

    A bright throw rug in front of the washer and dryer will often help cheer up unfinished laundry rooms.

Other related articles:

It All Starts with Creating Curb Appeal

The Entryway Sets the Stage

Tips For Every Room in the House

Making The Most Out Of Your Kitchen & Dining Room

Can the Buyers See Themselves
Living In the Living Room?

Make the Bathroom Sparkle

Look at These Big Beautiful Bedrooms

Create a Clutter-Free and
Functional Home Office

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.com or  http://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegatesIf you are behind on your house payment and looking for a loan modification, go to making homes affordable to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney. For a free copy of my blog titled  “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures.

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Preparing A House To Sell Part 8

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Create a Clutter-Free and
Functional Home Office

Our living room from the stairs
Image by headsclouds via Flickr

Working out of the home is a reality for many people today, so a functional home office space can give your home a competitive advantage over other homes on the market.

Try to make the space as functional as possible, and if it’s part of another room, make sure and maintain the main function of the room.

Here are some home office tips:

  • Store all the files and paperwork you don’t need for everyday function.
  • Remove big, bulky filing cabinets that take up a lot of space and store them somewhere else to make the office look bigger.
  • Clean everything off the desk surface, leaving only your computer and desk lamp.  A neat desktop makes the work space look more functional, and the lighting makes it look more inviting.
  • Store all personal and confidential or client information out of sight.  Set up a password protected screensaver on your desktop.
  • Weed out the postings on bulletin boards or wall organizers.  A few things are okay to make the office look organized and functional, but an overcrowded bulletin board looks crowded.
  • If your office is a part of another room, make sure it doesn’t overpower the main function of the room.  If it’s in the dining room, consider setting up temporary space elsewhere.

Other related articles:

It All Starts with Creating Curb Appeal

The Entryway Sets the Stage

Tips For Every Room in the House

Making The Most Out Of Your Kitchen & Dining Room

Can the Buyers See Themselves
Living In the Living Room?

Make the Bathroom Sparkle

Look at These Big Beautiful Bedrooms

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.com or  http://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegatesIf you are behind on your house payment and looking for a loan modification, go to making homes affordable to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney. For a free copy of my blog titled  “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures.

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Preparing A House To Sell Part 7

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Look at These Big, Beautiful Bedrooms!

 

Bedrooms are a key part of the home buying experience.  Bigger is better.  Nobody comments favorably about “lovely, tiny bedrooms.”  Just like other areas of the house, clutter takes up space and makes rooms look smaller.

Here are some tips to make your bedrooms look bigger and brighter:

 

  • Candles and fresh flowers are excellent accessories on bedroom furniture.
  • New bedspreads or quilts make a bedroom look inviting.
  • Make your bed look pretty and make sure the bedspread or quilt fits the bed properly and hangs low enough to cover the view under the bed.  Buyers won’t look under the bed, so you can store other non-essential items there (preferably in low storage boxes).
  • Put away the stacks of reading material on night stands and leave room for one good book.

 

  • In kids’ rooms, posters, photos, drawings and awards are all personal items that should be taken down for showing the house.  You want the buyers to imagine the rooms as their own.
  • Remove the super-ninja turtle posters or torn-out magazine covers in kids or teenagers’ bedrooms.
  • Put away all items that are hanging off the backs of doors.  Cluttered and clanking doors often make the room feel smaller – especially if they don’t allow the door to open all the way.
  • Remember that buyers are most likely going to look in your closets, so a better place to hide things is under the bed.  Make sure the closets are as spacious looking as they can be.  Remove all the clothes, shoes, and items that you won’t be using right away.
  • In kids’ bedrooms, be sure to put the toys in boxes or bins, and slide them under the bed.
  • Items that you don’t need should be taken out of the closet to make them more spacious.  Get an early start and pack items in boxes and store them in the garage or basement.
  • Coordinate your clothing in your closets and line shoes up neatly so it looks as organized as possible.

Other related articles:

It All Starts with Creating Curb Appeal

The Entryway Sets the Stage

Tips For Every Room in the House

Making The Most Out Of Your Kitchen & Dining Room

Can the Buyers See Themselves
Living In the Living Room?

Make the Bathroom Sparkle

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.com or  http://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegatesIf you are behind on your house payment and looking for a loan modification, go to making homes affordable to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney. For a free copy of my blog titled  “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures.

Preparing a House to Sell Part 6

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Make the Bathroom Sparkle

An American bathroom of a freshly renovated ho...
Image via Wikipedia

Next to the kitchen, the bathroom is the room that gets the most scrutiny.  Some inexpensive designer tricks can make your bathroom look like a million dollars.

Here are some tips especially for the bathroom:

  • Always empty bathroom trash cans before showings.  Also, put the
    trash can under the vanity to clear floor space – you want the bathroom to appear as big as possible.
  • A new shower curtain is a great investment – very little money for a big impact.
  • Things like toilet cleaners, plungers, and hampers add clutter; put them away while you’re selling your house.
  • Keep all reading material out of sight in the bathroom.
  • Place personal items (such as hairdryers, makeup kits, and hairbrushes) in cupboards or drawers.
  • Hang matching new towels; go for the best-looking towels you can.  Like shower curtains, they add a nice impact.
  • Remove everything from the countertop, except pretty soap sets, candles or fresh flowers.
  • Check the faucets for leaks, drips or disrepair.  Repair or buy new faucets if they are leaky or worn out.
  • New silicone beading can do wonders for your shower, tub and sink area…especially if the caulking is stained or cracking.
  • Shine your faucets and knobs and use cleaner to prevent water spots.
  • Keep your shower and tub area spotless.  Buyers will often look behind the curtain, so make sure the area looks as good as it can.  Keep shampoos and soaps to a minimum.
  • Scrub tiles and bleach the grout so it all sparkles.
  • Replace or paint the vanity if it shows excessive wear and tear.  Replacing knobs can give an updated look to an older vanity.

Other related articles:

It All Starts with Creating Curb Appeal

The Entryway Sets the Stage

Tips For Every Room in the House

Making The Most Out Of Your Kitchen & Dining Room

Can the Buyers See Themselves
Living In the Living Room?

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.com or  http://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegatesIf you are behind on your house payment and looking for a loan modification, go to making homes affordable to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney. For a free copy of my blog titled  “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures.

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