Chance Gates' Blog » Selling A House

Selling a House in a Buyers Market

Chance Gates — Mon, 27 Apr 2009 19:24:37 +0000

: Image via Wikipedia

Understanding Pricing
I realize it is hard to stomach, but short sales and foreclosures have driven the value of homes way down. The good news is houses are starting to sell if they are priced right. It use to be: that a seller could find the highest price house that compares to his, price his house a little higher, wait a couple months and he would sell the house. Now if a seller prices his house to high and waits a couple months the actual selling price is less than before. In order to sell a house, the price must be accurately determined to get a fast sale for the most money possible. If the house stays on the market longer than 7 days, with no activity, a price adjustment is needed. A seller needs to stay updated on other houses for sale, in his neighborhood, at least once a week.

Marketing
The way to market a house has really changed in the last few years. A seller use to be able to put an ad in the newspaper or magazine to create interest in his property. Now only about 20% of home buyers go to a newspaper or magazine before buying a house. Wayne Gretzky once said “A great hockey player skates to where the puck is going”. In real estate that is also true, a seller needs to advertise where the buyers are going. That is the internet; over 80% of buyers start their search by looking at houses on line. A seller should get his house on as many web-sites as possible, over 200 different sites is highly recommended.

Internet marketing is a good start, however in today’s market a seller can not stop there. He needs to have fliers made up and passed out to all his neighbors. More than 50% of houses sold come from neighborhood activity.

Open Houses – Good or Bad?
This is a question that will be different for every seller. It is very true that less than 5% of open house actually sell the house. There is no telling if a potential buyer is actually inspecting the house to rob later. However, it does remind people that the house is on the market and helps create conversation about the house. It also gives potential buyers a noncommittal way of seeing the house.

As a Reno/Sparks real estate professional I encourage all questions and comment on the Reno/Sparks real estate market or any article posted. I can be reached by email at chance@ballard-company.com or http://www.myspace.com/chancegates

Selling A House For Less Than The Full Mortgage . Step 1

Chance Gates — Fri, 13 Feb 2009 16:42:53 +0000

: Image by Getty Images via Daylife

This is a complicated process, and it is always recommended a person talk to a CPA and/or an attorney before trying to sell a home for less than they owe the bank. The bank will usually require that a person be two months delinquent, before the bank will allow someone to start a short sale. Believe it or not the process has become a little simpler this year compared to last year. Now banks seem to be more prepared. They will send out a package that a person will have to fill out. This will have financial information and needs a letter of hardship stating why a person cannot make their mortgage payment. On every short sale the bank will open a case of fraud. This is one on the reason it usually takes so long. Sometimes it is a little easier and less stress on the owner, if a realtor is given permission to talk to the bank.

As a Reno/Sparks real estate consultant I always welcome any comments or questions on the Reno/Sparks real estate or any of the articles I posted. You can email me directly at chance at ballard-company.com

Selling A House For Less Than The Mortgage Part 2

Chance Gates — Wed, 11 Feb 2009 17:19:11 +0000

The next step is to determine the price to list the house. Once again this will be less than the homeowner owes on the mortgage. Knowing it is tough to find a buyer, for a short sale, the sale price will usually be to the lower end of the market. This will hopefully generate more interest in the house. However this price will have to come with in, a percentage of market value. The percentage could differ depending on which bank holds the mortgage.

Selling a House For Less Than The Full Mortgage. Part 3

Chance Gates — Mon, 09 Feb 2009 16:23:58 +0000

: Image by wallyg via Flickr

So the lender has given permission and accepted that the house is going to be sold for less than the mortgage. The house price has been determined and the house is now on the market. The homeowner has turned in all of the necessary paperwork, talked to lawyer and accountant to make sure there would be no litigation or tax liabilities. The homeowner also understand selling the house this way is going to damage their credit, however not near as damaging as having the house foreclosed on.

After a few showings hopefully an offer comes, now this is when the experience of the agent really gets tested. The agent needs to run the numbers and make sure asking price will match the lenders bottom line, or the lender will turn the offer down. Once again the net to the lender has to be within a certain percentage of the market value. The lender will hire someone to determine the market value by comparing sales of similar houses in the neighborhood.

The offer is high enough to satisfy the lender. The homeowner will then sign the offer and accept it. Then the offer and acceptance will be sent to the lender for third party approval, which can take up to 90 days or more. Title can be opened at the point so when third party approval comes, the house can be sold in 30 days or less.

Hopefully if there is more than one mortgage on the house, both are with the same bank. If the first and second mortgages are held with two different banks then the problem I discussed in “When Buying a House that is a Short Sale” come into effect.

Selling a House. The Listing Cycle Part 1

Tue, 30 Nov 1999 07:00:00 +0000

Met with a gentleman last month. He says "Chance what can you do to sell my condo". First I let him know how people reason for buying has changed. Use to be a person would buy a house and the value would go up and they would have equity in their house. His condo a one bedroom 480sqft that was built in 1982, has been totally remodeled, similar properties once sold between $85,000 and $90,000. He understands that bank REOs and short sale have reduced their prices to sell. He also understands that he will have to compete with their price. So I show him how I will get him listed on several different web-sites. I also show him what the fliers or possible post cards will look like. I then explain different marketing techniques that will be used to sell his house. So we go over the comparable sales in the area and he decides to list this property for $55,000 (been reduced to $39,000). I explain to him how this is higher than anything in the area that has sold in the past 3 months. He understands that I feel this price is to high, but is close to what I think it should be listed at.

Doing the Math:

$39,000.00
- 8,000.00 down payment
$31,000.00 financing amount
$244 + 113.00 = $357.00
30yr fixed @ 6.5% monthly payment $244.00 plus insurance.
HOA fees $113.00
Profit $475.00 – 357.00 = $118.00

Rents going between $475.00 – $525.00
Profit $118.00/ month – insurance.

Interest rates and Insurance will verify.
Buyer to verify all rates and payments.

Like to thank National City Mortgage for the interest rate.
All information deemed reliable but not guaranteed.

Quick Tips On Getting Your Home Ready to Sell

Chance Gates — Mon, 22 Dec 2008 19:34:11 +0000

: Image via Wikipedia

In the current Reno/Sparks real estate market it is important to take advantage of everything a seller can.

Your imagination is the most powerful tool you have to improve the value of your property – and it’s free. Here’s how: Step out of your own shoes and step into your potential buyer’s shoes. Then take a good, realistic look at your house and property, and consider: Is it appealing? Can you imagine yourself living there comfortably? Or do you imagine yourself putting in a lot of work to make the house and property acceptable?

Most buyers are interested in three things about a property they’re considering

¨ Visual appeal (landscaping, spaciousness, cleanliness, color, lack of clutter)

¨ Maintenance (everything in working order, nothing to repair or paint)

¨ Safety (locks and deadbolts, burglar/fire alarm systems, busyness of the neighborhood)

If a potential buyer can’t form a good mental picture of living in your house – no sale! With this in mind, you’ll want to give your property a good, hard look from the outside in. You want to create a fabulous first impression so everyone will want to come inside.

What to Look For On the Outside

¨ Roof and gutters: When buyers look at your house from their car, about 30% of what they see is your roof. Be certain it’s in good repair.

¨ Landscaping: A well-manicured yard and a smooth, even driveway reassure potential buyers that you care about your property. A yard free of mud and weeds suggests a good sprinkler system and low maintenance.

¨ Paint and siding: Neutral colors and a clean appearance are important. Consider repainting or power-washing both your house and roof.

¨ Porch or covered patio: Make sure it’s clean and uncluttered.

¨ Fence: Fencing should be in good repair.

What to Look For On the Inside

¨ Kitchen: Regardless of your kitchen size, you can make it feel spacious: Remove appliances and gadgets from your counter tops and store them. Repair broken or cracked counters.

¨ Bathrooms: Replace faucets, medicine cabinet, and towel racks if necessary; be certain the bathrooms are spotless and fresh-smelling.

¨ Master Bedroom: Spaciousness and décor are important. Remove and store nonessential furniture.

¨ Flooring: An investment in new carpeting almost always increases the perceived value of a home. Select a neutral color of medium-grade carpeting and padding. Replace cracked and broken tiles.

¨ Wall covering: A fresh coat of paint can do wonders. Always use neutral or soft, warm colors. Avoid wallpaper.

¨ Personal touches: Eclectic personal touches may distract potential buyers.

Deciding What to Do First

The most important thing to think about first is this: Fix what you can see! Cosmetic changes, regardless of the cost, will make a world of difference when it comes time to sell. Whatever you saw when you put on your potential buyer’s shoes, that’s what you do first, from the outside in.

Keep in mind that you want the best return on your investment. When you make cosmetic changes, you maximize popular appeal. People will see what looks great, and they’ll picture themselves living there. Conversely if your home looks untended, people will imagine how much work they have to do – again, no sale!

The cost of such a project might frighten you; however, think about the cost of not doing it. If it costs $2,000 to repair your roof and gutters and you balk at the price, think again. The same roof repair will probably decrease your asking price by $4,000 when a buyer begins to negotiate. Ask your Realtor for guidance.

How to Get Your Property Ready To Be Sold in a Hard Real Estate Market and How a Home Stager May Assist You (wealthyways4you.com)