Even if your bowling trophies and musty shag carpet feel like home to you, they might turn off potential buyers. That’s why staging — as seen on TV— has become a popular technique to help sell houses. But home staging is more than just redecorating; it’s a way to help potential buyers feel like your house could be their next home.

It might seem counterintuitive to spend money on a home that you’re leaving, but the cost might be worth it. According to StagedHomes.com, a leading home-staging organization, the final sale price on staged homes increased an average of 3 percent versus those that were not. Staged homes also typically spend 80 percent less time on the market.

Staging doesn’t have to be expensive or overwhelming. If you don’t know where to begin, talk to your REALTOR®, who can offer advice or help you find a professional stager. A basic consultation with a home staging professional might cost $200 to $400 depending on the market, but some are complimentary.

If you want to do it yourself, start outside. Clean the sidewalk and driveway and, if possible, add a fresh coat of paint to the house, garage door or railings. Use potted plants and new light fixtures for flash at the front door.

Inside, keep things clean and clutter-free. Pick impersonal art over family pictures. Purge unnecessary belongings, and stow what you can’t throw away in decorative baskets. Sparsely arrange furniture away from walls. Add accents with mirrors, plants, rugs, pillows, colorful cookbooks, fruit bowls and other accessories. Focus on lighting, from soft bedroom lamps to natural light from open drapes. Click here for more tips.

Sources: HGTV.com, StagedHomes.com, StageStars.biz

Starting January, 1, 2009, using the new Real Estate Purchase Contract (REPC), was mandatory for all real estate transactions involving a licensed real estate agent or broker. This form could be used starting August 27, 2008, but most people opted to wait until the mandatory date. There are a number of changes to this form, but I will focus on what I think is the most important change in this post. I will look at other changes in upcoming posts, so check back.

Section 10.2 of the REPC

The old REPC, 10.2 provided Seller Warranties:

10.2: Condition  of  Property.   Seller  warrants  that  the  Property  will  be  in  the  following  condition  ON  THE  DATE SELLER DELIVERS PHYSICAL POSSESSION TO BUYER: (a) the Property shall be broom-clean and free of debris and personal belongings.  Any Seller or tenant moving-related  damage to the Property shall be repaired at Seller’s expense; (b)  the heating, cooling, electrical, plumbing and sprinkler systems and fixtures, and the appliances and fireplaces will  be in working order and fit for their intended purposes; (c) the roof and foundation shall be free of leaks known to Seller; any private well or septic tank serving the Property shall have applicable permits, and shall be in working order and  fit for its intended purpose; and the Property and improvements, including the landscaping, will be in the same general condition as they were on  the date of Acceptance.

The New REPC, 10.2 is in AS_IS Condition:

10.2: Condition of Property/Buyer Acknowledgements.   Buyer acknowledges  and agrees  that  in  reference  to  the  physical condition of the Property: (a) Buyer is purchasing the Property in its “As-Is” condition without expressed or implied  warranties of any kind; (b) Buyer shall have, during Buyer’s Due Diligence as referenced in Section 8.1, an opportunity to  completely inspect and evaluate the condition of the Property; and (c) if based on the Buyer’s Due Diligence, Buyer elects  to proceed with the purchase of the Property, Buyer is relying wholly on Buyer’s own judgment and that of any contractors  or inspectors engaged by Buyer to review, evaluate and inspect the Property. 
 

What is the difference?

istockphoto.com

Basically, the old REPC provided some protections for the buyer, which at the time seemed like a good idea. The problem started when sellers were not aware of some of the problems discovered about their homes by a potential Buyer. After the discovery of a defected warranted item, it was mandatory for the seller to fix the specific warranted item. In some cases this was an extreme hardship for a seller if the repair ran into thousands of dollars and the seller didn’t have the money. The seller could NOT cancel the contract and could be in default.

What the Buyer needs to do now…

photo:loraineritchey

Caveat Emptor, meaning, let the buyer beware!  Seller’s are still required to disclose any known defects about the property, but it is the unknown defects that a buyer needs to discover. It is more important than ever for the Buyer to inspect the property. If you find a defect, you may request that the seller repair the item, but now, the seller is not required to repair a defect. The buyer can cancel the contract if the seller does not agree to repair an item.

If you are not sure how this change and all other changes will affect you when purchasing or selling your home, contact a professional who will help you navigate this process.

An SRES® designee can help you make wise decisions about selling the family home, financing, buying rental property, or managing the capital gains and tax implications of owning real estate, among many other issues. In addition to guiding clients to the right experts on tax laws, probate, estate planning, and a variety of equity conversion strategies, Seniors Real Estate Specialists® can offer clients relevant information on current trends in senior real estate transactions.

The SRES® Designation course seeks to instill each student with the knowledge and understanding of, and empathy for, 50+ real estate clients and customers, while educating students on developing the business building skills and resources needed for specialization in the 50-plus real estate market.

Your SRES Designee has:

• learned the application of federal laws for Housing for Older Persons Act (HOPA).

• adopted methods for counseling the 50+ buyer and sellers

• committed his/herself to focus on the transaction and avoid inappropriate involvement in family matters

• developed sensitivities to 50+ issues on priorities when counseling buyers and sellers, showing properties, and managing transactions

• established reputable services that win and sustain client and customer relationships and position his/herself as a trusted real estate advisor

• assembled a team of experts to help serve 50+ clients and customers

• been educated on the uses, benefits, procedures, and issues involved in reverse mortgages

• learned about the uses of pensions, 401k accounts, and IRAs in real estate transactions

• gained an understanding of how Medicare, Medicaid, and Social Security impact 50+ real estate decisions

• the ability to help clients integrate disposition of real property into estate plans

• the knowledge to recognize mortgage finance and loan schemes and scams that victimize 50+ borrowers

A national program since 1998, the council now has Seniors Real Estate Specialists® in all 50 states and Canada and adds hundreds of new members every month.
SRES members are not qualified to give legal or tax advice and the SRES Council does not guarantee the accuracy of its members’ information. All clients are strongly urged to contact a real estate attorney or certified public accountant to obtain legal or tax advice.

seniors real estate specialist

What happened to real estate sales for November 2008 in Salt Lake County?

According to the Salt Lake Board of Realtors, the number of homes and condominiums (units) sold in November 2008 was 576 units. In November of 2007 there were 924 units sold, that’s a decrease of 38%. Another statistic to note was that median price INCREASED by 4% to $229,900 from $221,300 in ‘07.

How can home prices be going up when all the indicators, and may cities home values, are going down?  Well, most of the homes sold, 75%, were under the $300,000 price point, only 10% of the homes sold were above $500,000. The big difference between this year and last year is that interest rates last year were a full 1% higher. Usually when interest rate go down, people can afford more, so they usually purchase a more expensive house. Plus when interest rates are lower more people can afford to buy, so you see more entry level buyers come into the market, thus the large margin of home buyer’s in the entry level price range. When interest rates rise, people can afford less, and there are less buyer’s in the buyer pool, so more inventory means prices tend to go down.

It also might mean that prices in Salt Lake County have stabilized and may start to rise. It also might be temporary, prices should stabilize, then rise for a period of 4 to 6 months before we can claim victory over declining home prices. See my post on when it is a good time to buy to learn more about if you should wait.

What are your thoughts?

 

photo by shutter stock

 

A home is a place of residence or refuge.^[1] It is usually a place in which an individual or a family canrest and be able to store personal property. Most modern-day households contain sanitary facilities and a means of preparing food.  Wikipedia 

 

Where does it say that a home has to make its owner a bazillion dollars OR is of no use in a declining market? With all the talk these days about the housing bubble and home values, to buy or not to buy, I want to look at the issue from another angle.

People NEED a place to live, shelters from the weather, a place to raise a family, to store their things, create memories. There are 2 options; you are either the owner of your domicile, or a renter/tenant of your domicile.  Why own? First, it cost less to own than rent. Second, payments stay the same monthly (fixed rate over 15 or 30 years) eventually the mortgage is paid off. Third, the tax benefits from owning. Finally, after it is paid, there is a nice little nest egg, and even if it’s worth nothing, you have a place to live!

Let’s look at the last few years and why people are in such a huff over the real estate market. Without going into the details of what and why we had a real estate bubble (there are hundreds of articles out there to read), prices have fallen drastically in some markets of the country, BUT NOT ALL markets! Yes if you purchase 2 years ago and HAVE to sell now, you could loose money. But how many people have to do this? Don’t most people live in their homes at least 5 to 7 years? The problem with the last few years is that some people where caught up in the lure of rising prices and speculation, the upward spiral continued to feed on itself. The mantra for home ownership became, how much can I make on my home? And should I buy 2 more?  But is this what home ownership is all about? For some, yes, for investors, for sure, but for most people, no way!  Owning a home is about shelter, raising a family, security from the weather and the world? Why hasn’t this been the mantra of late? How can we bring this mantra back?

We bring it back by talking about all the reason for home ownership; what are the basic tenets of home. Reinforce the definition of HOME at the beginning of this blog, ask the question, where are you going to live and why would you wait to buy home? Taking this basic premise of home ownership, is it good to own in any market? Must you make money on your home every year? Is the requisite for home ownership to turn a profit?

I would like to take this opportunity, the beginning of the New Year, 2009, to educate and change the mantra of what it means to be a homeowner. Show that it is good to buy a home almost anytime.

People have asked me , if I have all these designations, why don’t I tell people what they mean and why I spent all the TIME and MONEY to get them. So here is the first in a series of posts that will explain the professional designations I have and how they might benefit you, the client.

The first is the CRS Designation, short for Certified Residential Specialist. Some consider this the PH d of real estate. I will start with what the official CRS explanation:

There are over one million REALTORS® in business today. So if you want to find that one-in-a-million REALTOR®, start with the over 37,000 who hold the Certified Residential Specialist Designation. CRS is the symbol of excellence in residential real estate. Our members have proven they have the experience, training and commitment to be among the best in their profession.

This sums up a lot of why I like this designation, the best of the best! There are weeks of core courses to take (thousands of dollars including travel and expenses), plus there are elective classes, you can get credit for college work or other advanced real estate designations. Next is the required number of real estate transaction, years in the busines, and fees. Gather all these up and you can apply for the designation.

Of all the Realtors in the U.S., just 4% can call themselves Certified Residential Specialist. Just 1 in 25 has the experience, the commitment and the hours of advanced training necessary to call themselves a Certified Residential Specialist.

How does this help you the consumer? Well, despite all the expertise you get when you work with me, it doesn’t cost you any more than working with any other Realtor. In fact, the skills and know-how you get from me may actually save you time and money.

Citizen journalism, social networking and user-generated content are transforming the industry.
By Les Christie, CNNMoney.com staff writer
January 10 2007: 9:32 AM EST

NEW YORK (CNNMoney.com) — Home buyers and sellers have already seized much of the power once in the hands of exclusively of real estate professionals. But they’re about to get stronger still.

The changes to the real estate industry have come fast, with listings and valuations tools widely available for free on the Internet.

Now, according to many of the participants of Real Estate Connect NYC 2007, a conference devoted to outlining the changes facing the industry, the industry is on the cusp of another technical revolution, one that revolves around that Time Magazine person of the year – YOU!

Real estate blogs, which have been around for a few years, exploded in popularity during 2006. These sites provide a wealth of unvarnished opinion, truths and half-truths about towns and neighborhoods all over the country – the inside dirt on restaurants, schools and crime.

“The rules have fundamentally changed,” said Brad Inman, the host of Real Estate Connect and publisher of Inman News. “Social networking is lifting real estate and in the next 12 months it’s going to overwhelm real estate. It’s been happening since Craig’s List started but it’s only now coming to a head.”

In the past, the real estate industry always had a gate-keeper mentality.

“Brokers prospered by not giving out information,” says Dottie Herman, CEO of New York based broker, Prudential Douglas Elliman. “Clients came to them for information. This takes the industry to a whole different model.”

Technology has made it very simple to start up, run and contribute to Web sites and that has let loose a flood of information that’s increasingly well organized.

“Now we’re seeing the aggregation of these conversations. [Consolidators] are taking feeds from lots of different blogs and outing it in one place by zip code or neighborhood,” says Inman.

Take Outside.in for example. This two-month old Web site collects blogs from more than 3,000 neighborhoods in 55 cities. Posters can write about anything, including the quality of new real estate listings, how good the schools are, hot restaurants, even individual real estate agents.

These sites encourage content from readers. Don’t like the spumoni at the local gelato house? Vent on line. Angry that your streets are going unswept? Become an Internet scold. Curious about that derelict house around the corner? Ask your blogger neighbors what they know about it.

Another site, Homethinking.com solicits reviews on agents. Like Yahoo! autos, where Accord owners can rank their satisfaction with their car purchase or TripAdvisor, where travelers can rate hotels, Homethinking posters are able to rate their real estate agents.

All this openness can make the marketplace much more transparent for consumers. It enables them to know market prices more accurately, to engage the most professional real estate agents available and to learn about individual towns or neighborhoods much more intimately and expeditiously than they could in the past.

As the new technology comes more into play, realtors will have to adjust. Many of the web sites have taken over some of the traditional services that real estate agents once provided.

It may be a difficult period in some markets. Not only are sales down, but alternate business models are making inroads into their business. For sale-by-owner sites, discount or fee-for-service brokers and brokers who pay buyer’s rebates all may gain traction.

Inman says that real estate professionals have two choices when it comes to confronting the changes wrought by technical advances: engage it or pretend it isn’t there.

It’s easy to guess what route he recommends.

Any agent that sells real estate should know the importance of marketing and how there should be a plan for getting the home ready to sell. A lot of people are staging and making sure the home is clean and bright; the yard in good shape and maintained. The other day I was showing clients several homes. Several of these home were flips, where the Seller had gone in and spent thousands of dollars fixing them up, new floors, paint, cabinets and appliances; all the bells and whistles. The bad thing was that we couldn’t stay in these homes very long and enjoy them because it was COLDER inside than outside! So all the money, decorations and staging was ineffective because it was like walking into a refrigerator. Buyers don’t want to feel like they are in a refrigerator when it is winter out. They want to walk into a home and feel, safe, warm, secure and dry. Buyers buy based on how a homes makes them feel… it’s a complete package… turn on that heat!

The caption said: Luxury gated townhome community-Central location… Luxury homes in the $200,000 price range and located in the central city of Salt Lake? Can’t happen. I think this term is over used by agents everywhere, it is loosing it’s luster. I mean, this property has linoleum! The term Luxury from Wikipedia: Luxury real estate (American English) or luxury property (British English) describes a niche in the real estate market dealing with the highest socio-economic group of property buyers.

Then there is this LUXURY Listing: FEDERAL HEIGHTS MEDITERRANEAN MANSION. COMPLETELY UPDATED WITH EVERY CONCEIVABLE LUXURY. THIS RARE HOME SCREAMS CHARACTER AND WORLD-CLASS QUALITY.DECKS, PATIO, POOL AND GARDENS ARE MATURE, LUSH AND PRIVATE. HEATED STONE WALKWAYS, FLOORS AND DRIVEWAY. $4,990,000. This is luxury!

I know there are luxury properties that fit into the luxury category that are only around the $1 million dollar mark, but I think anything below this amount is not luxury. Am I wrong?