Adding Value by Dennis O'Hagan

Six Keys to Selling Your Home in Today's Market...

Below is an OUTSTANDING article regarding "Selling Your Home In Today's Market.  We have Listed many homes since the first of this year and almost everyone of them have SOLD within the first week they were on the market.  Why?  Because they were decluttered, clean and move-in-ready... 

RISMEDIA, Monday, May 14, 2012— According to the National Association of Realtors®, more than 4.25 million homes sold in 2011. That's a lot of real estate and such numbers raise the question: How are sellers doing it?

"Because individual homes are unique, there isn't one single strategy that works equally well for every property," says Wendy Forsythe, the executive vice president of a real estate company. "The real trick is understanding that today's marketplace is cash driven, quick and highly competitive. Owners who understand their local markets and work with a knowledgeable agent are those most likely to succeed."

In March roughly one-third of all sales were cash, meaning a large number of buyers are not dependent on lender financing, the sale of their existing home or a settlement that might be 45 to 60 days in the future.

Instead, they can act quickly and in many cases seek properties which can be bought today and occupied tomorrow.

To ready a home for sale in today's marketplace, Forsythe says owners should consider six basic keys to selling success.

Six Keys to Success

1) Curb appeal counts. Most home buyers want homes which look great from the outside. It's not just a question of curb appeal -- it's about perception. If a home looks good from the street it probably means the property is ready for a new occupant without a lot of cost or hassle.

Buyers tend to pass on a home that doesn't appeal to them from the street -- not even bothering to look inside. An experienced local REALTOR® can show you how to generate the most curb appeal with the least cost.

2) A clutter-free home. With the new emphasis on cash sales and speed owners must show homes which are free and clear of clutter. A clutter-free home will make interior spaces look larger and eliminates the need to get rid of stuff when you are in the throes of moving. It makes sense to donate or reduce clutter before a home is placed on the market -- not only as a sales tactic but also as a practical step toward relocation.

3) Working condition. Having your home's systems in good mechanical condition is an advantage in today's market. Most distressed homes can't compete when it comes to such basics as working heating, plumbing and air-conditioning. Properties that can readily pass a professional home inspection are often easier to finance, and are generally more appealing to buyers who don't want to face the unknown costs and delays sometimes associated with major renovations.

4) List and negotiate properly. According to Forsythe, "a seasoned REALTOR® can show owners how best to market a particular home according to such factors as location, price, condition and financing. Owners want to work with us because our experience brings value and confidence to a transaction, factors that are enormously important in a changing marketplace."

5) Seek prequalified buyers. While many sales may be for cash, the majority still require financing. It would be frustrating to enter into a sales contract with a potential buyer who ultimately cannot obtain financing to purchase your home -- meaning you have lost time -- and potentially money -- and then you have to start over. When a home is shown by appointment, the buyer should have a pre-qualification letter in hand.

Such letters from lenders are not binding but at least show that the purchaser sat down with a loan officer and has some realistic sense of what he or she can reasonably afford.

6) Distressed properties. Roughly 30 percent of today's home sales involve "distressed" properties -- a term which includes short sales and foreclosed properties owned by lenders. You need to consider the distressed properties in your neighborhood when pricing and marketing your home. These properties typically sell at discount, especially in major foreclosure centers and sometimes require substantial repair and rehabilitation.

"Home sellers can compete with these offerings," according to Forsythe. "There's no question that a large number of distressed properties in a local market will impact prices, but price is not the only factor buyers consider. While distressed homes work for some purchasers, they're not the right choice for buyers who want homes that offer move-in condition -- homes in better shape that can often command higher prices."

While the housing market is just in the beginning stages of a recovery, it's still possible to successfully sell your home by making sure you're catering to the kind of buyers in the market today, and by making sure that you -- and your home -- are ready to move as quickly as these buyers are.

Make Any Size Your "Super" Size Whether UPSIZING or DOWNSIZING...

Whether moving across the street or across the country, when there is a change in the size of a living space, there is a lot to think about with many pro's and con's to consider. Finding the right sized space is easier if you consider your lifestyle now and how it might change in this new space. Understanding your reasons, hopes and goals in transitioning to the new sized home is the biggest key to your success. The clearer and better prepared you are to transition to the new sized home, the bigger benefits you will receive in the short term. You can fix your errors over time, but often there are costs associated with that, so getting things "right" in the beginning is worth your time and effort.

Money - value or savings, often top the list for a size change. Often, people downsize thinking that they will save money; some people take equity from their larger home and use that money for other ventures. Upsizing during a buyer's market can get you a good deal on a larger home. Either way, if money is the focus, remember that as you look at the home. Sometimes the savings is not as big as you think, or you can quickly get in over your head. A smaller home in a more desirable location might cost you more than your large home in a less sought-after area.

Lifestyle - changes in family size, job status, retirement or health top the list for lifestyle changes that prompt size changes. While money may still play a role, if your reasons for changing the size of your home are "lifestyle related" then you will want to keep this focus.

Upsizing

Many housing markets are providing buyers with opportunities to "upsize" - getting more house for the money and great values for the housing dollar. Going up in size when you have been living in a small space can be quite appealing, though surprisingly there are some challenges, too.

Pros

• Finally - you have more storage and space to move!
• Additional bathrooms allow more privacy and easier morning routines
• Additional bedrooms ease strain on family members and encourage guests
• Larger kitchens enable cooks to do their job with ease
• Added space can accommodate a home business or hobbies
• Larger homes also often have added amenities like larger lot size, lawns and landscaping in addition to more space inside the home

Cons

• In a larger home there may be more walking, more stairs, and facilities may or may not be as convenient
• Costs of heating and cooling will be higher
• Maintenance costs are often higher
• Property taxes may be higher
• More and possibly larger rooms may require more furniture or the scale of the furniture that you do have is off - so additional decorating expenses will be incurred
• Attics, basements, garages, sheds and storage areas need to be organized, and sometimes heated, cooled, or dehumidified to prevent items stored there from becoming ruined
• Lawns, landscaping and larger lots require care and maintenance which can be costly and a lot of work

Suggestions:

If you are upsizing at the same time that a family or friend is downsizing, you might walk into a great deal on furniture, tools, lawn-mowers or other must-haves for your new home. Check out Craigslist and local garage sales to score great finds and help you to get to know the new neighborhood. Weigh the cost and benefits of moving furniture long distances. Treasured family heirlooms will likely remain on the moving list while less favored items may not be worthy of moving. And, don't forget rentals - there are actually places that can rent furniture while you make up your mind about what you want or can afford.

Do some planning for your new space. Magazines and the internet are filled with ideas that may provide inspiration for you, or consider working with an interior designer. Take photos of the new space and measurements of the rooms so you can better understand the opportunities and constraints of your new home. Consider the condition of the walls and floors, windows and lighting as you go. Painting and work on the floors is much easier to achieve if the room is already empty. For improvements, if you can make decisions on color and materials, and schedule workers, completing improvements prior to moving in can save a lot of time and effort.

If you have never owned a home before, it can be a big task to take on a large space. Often your realtor will know of reliable professionals to help accomplish home improvements. Your excitement and enthusiasm will take you far, and remember: you don't have to do it all at once. Create a prioritized list for the new space, knowing you still have your day-to-day life to live while getting settled in your new home.

Downsizing

Sometimes a desirable location translates to a smaller home, or perhaps you are consciously choosing to reduce your space. Whatever the case, if you are moving from a larger home to a smaller one, chances are "stuff issues" will top your list. Knowing this when you are looking may be useful for you to see how much you can fit into the new space and what you need to part with. For some people, this is an emotional time. Falling in love with the new space can be a key to success. Your realtor can help you to find the right small space for you, only you can find the right space for your stuff.

Pros

• Finally - you are not paying to heat and/or cool rooms that you rarely use!
• It is convenient to have rooms closer together - often there is less walking
• There is less to clean and to organize
• Maintenance chores are often less, with smaller rooms, fewer windows, floors, less roof, etc.
• Perhaps you are seeing a reduction in property tax or mortgage
• Often you have less to take care of in the way of property and landscaping

Cons

• Often you have to make some tough decisions regarding "stuff"
• Your furniture might be "off" in scale, better suited to a larger home
• Fewer bedrooms and/or bathrooms sometimes require planning for family and guests
• Cooking in a smaller kitchen is different, and storage for kitchen tools and food might require thought

Suggestions:

Enlist the help of a professional. Recent trends in lifestyle management have spawned personal and professional coaches, as well as professionals who help with organization and clutter management. These professional organizers make it their business to know the best way to clear your closets, storage areas and generally handle and manage your stuff.

If you feel overwhelmed and can afford their help, they might even save you money in the end by reducing the need to rent storage, saving you from moving unneeded items, and helping you sell some of the more valuable things. And, while they are not interior designers, professional organizers have seen a lot of homes and know the most attractive ideas for using your space. If you are trying to sell a larger home while planning for the move to your smaller space, professional organizers can also aid you and your realtor in staging the home you are selling, gaining you twice the return on their services!

When downsizing, consider the features of the home that you use the most. Will you be doing the same things in the new home, or is there going to be a lifestyle change, too? Ensure that you compare what you are currently doing in each of these areas, and how that will have to change in the new space.

In the kitchen: If you are currently using many different kitchen tools, but moving into a home with a smaller kitchen - will you need to get rid of tools? Or will you find or create storage space in the new kitchen? Perhaps you are moving to a place with great restaurants - but can you afford to eat out a lot? Often you will need to plan for less pantry space, too.

In bathrooms: You will often be faced with towel and linen storage designed for a smaller dwelling, and vanities that are in keeping with smaller spaces. This can translate into crowded medicine cabinets and stuffed drawers, so even everyday things like personal care products become "stuff issues." Consider buying smaller containers and filling them from larger bottles - your small space doesn't have to be crowded if you can plan and get creative. Keep only the best of your towels and linens, and that which you really need.

Changing the size of your space may or may not benefit you financially, but the change in lifestyle will not be missed. It is an opportunity to re-evaluate your belongings and your relationship with the space you have and use. Sometimes, it even means looking at the way you do things, and why. Changing the size of your space is essentially an opportunity to get to know yourself all over again, in a very conscious way. Tackling these challenges and viewing them as opportunities will result in a new home that is suited to you and your needs. Bigger or smaller, be sure you make it just like you want it.

Early Voting Starts May 14th / Ballot Propositions Info...

Primary Election Calendar:

First Day of Early Voting                                                                     May 14, 2012

Last Day to Apply for Ballot by Mail (Received, not Postmarked)           May 22, 2012

 Last Day of Early Voting                                                                    May 25, 2012

 Primary Election Day                                                                         May 29, 2012

            *No Precinct Conventions due to delayed Primary

 Run-off Election and Contested Precinct Chair Election                       July 31, 2012

 

Ballot Propositions that will appear on the Republican Primary Ballot:

 SCHOOL CHOICE:

The state should fund education by allowing dollars to follow the child instead of the bureaucracy, through a program which allows parents the freedom to choose their child's school, public or private, while also saving significant taxpayer dollars. Yes or No.

 REPEALING OBAMACARE:

Congress should immediately repeal the Patient Protection and Affordable Care Act (otherwise known as Obamacare) and reject the rationing of healthcare by government or the intrusion by government into the doctor - patient relationship. Yes or No.

PUBLIC PRAYER

Government should be prohibited from restricting the content of public prayer. Yes or No.

BALANCED BUDGET / CONTROLLING GOVERNMENT GROWTH:

Out of control spending should be stopped at all levels of federal and state government through constitutional amendments limiting any increase in government spending to the combined increase of population and inflation, requiring voter approval. Yes or No.

REDISTRICTING:         

The Texas Legislature should redraw the court-imposed lines for Congress and State legislative districts in its upcoming session in order to remedy inequities. Yes or No.

Benefits of 15-year mortgage hard to beat

Why those lured by smaller payments on 30-year loan should reconsider

By Jack Guttentag, Monday, April 30, 2012.  Inman News®

The case for 15-year fixed-rate mortgages has never been stronger because, in the post-crisis market, the rate advantage over the 30-year has never been larger. The rate advantage is about 0.875 percent, whereas prior to the crisis, it was 0.375 percent to 0.5 percent.

Consider two $100,000 loans, one a 15-year at 3.125 percent and the other a 30-year at 4 percent. The respective payments are $696.61 and 477.42. After 15 years, the borrower with the 15-year loan has paid $39,454 more but is out of debt whereas the borrower with the 30-year loan still owes $64,543.

But there is a counterargument. A disciplined borrower can choose the 30-year loan and invest the difference in payment between the 30- and the 15-year loans, in that way offsetting the higher interest rate on the 30-year loan. Some financial planners recommend this approach to their clients as part of a program to build wealth faster.

The challenge in making such a program work is that the rate of return on the invested cash flow must exceed the rate on the 30-year loan by an amount that depends on how much higher the 30-year rate is than the 15-year rate.

Home Sales Gain Momentum in Texas...

RISMEDIA, Friday, May 04, 2012— Regional Spotlight—The Texas real estate market gained positive momentum in the first quarter of 2012, according to the 2012-Q1 edition of the Texas Quarterly Housing Report issued recently by the Texas Association of REALTORS®. The volume of single-family home sales in Texas was 12 percent higher than the same quarter of 2011 and the median price increased by almost three percent over the same time frame.

"The watchword for Texas real estate in 2011 was 'consistency,' in both sales volume and price. That allowed us to emerge from last year with stable sales volumes and strong property values," says Joe Stewart, chairman of the Texas Association of REALTORS®. "Now, in 2012's first-quarter results, we see a strong increase in sales volume and a meaningful increase in the median price. That indicates positive momentum for the year ahead."

For the period of January through March 2012, the volume of single-family home sales in Texas was 45,502, 12 percent more than the same quarter in 2011. The median price for Texas homes during the quarter was $147,100, 2.7 percent more than 2011-Q1.

Jim Gaines, Ph.D., an economist with the Real Estate Center at Texas A&M University, expanded on the report: "We believe several factors are driving the strong performance of the first quarter, including continued job growth in Texas and some increased access to credit for home buyers. Most of all, we're starting to see a shift in Texans' attitudes toward real estate. Essentially, buyers and sellers have higher expectations for the market, so they're beginning to take action and we're starting to see the impacts."

Looking ahead, the "months inventory" calculation can provide insight into future demand for homes and that figure decreased from 7.6 months in 2011-Q1 to 6.0 months in the first quarter of this year. "Months inventory" is an indicator of the balance between demand for homes and supply in the market and the Real Estate Center at Texas A&M University cites 6.5 months of inventory as a balanced market.

Gaines continues, "In Texas, our inventory of homes for sale has been decreasing for about six months now. That's due in part to the fact that some homeowners who don't have to sell have chosen to wait for prices to improve before selling their homes. In addition, the slower processing of foreclosures and fewer distressed properties may reduce the number of listings. However, a decrease of more than 20 percent in the inventory of homes compared to the same quarter last year is significant and may be an indication of price increases in the future."

Chairman Stewart concludes, "If all the indicators play out as we expect, the Texas real estate market is in for a busy spring and summer."

For more information, visit www.TexasRealEstate.com.

$prinkler $marts... 10 Tips to Save Water and $$$...

10 Tips to Save Water and $$$ 

1. Become familiar with your controller and take advantage of its features.  Check the manufacturer’s website for videos on how to program it correctly.
2. Set your irrigation controller so that the system does not activate between 10:00AM and 6:00PM when most water is lost due to evaporation.
3. Avoid overspray – Ensure that your irrigation system only sprays water on landscaped areas, not on concrete, wood, stone, brick or other impervious surfaces such as sidewalks, streets, driveways, fences or walls, which cause water runoff.
4. Adjust your watering schedule to the season.  Decrease or cease watering when grass should be dormant during cooler weather months.
5. Adjust the run time and frequency on the controller, based on changing rainfall and temperatures.
6. Program your controller timer to cycle and soak to prevent over watering.
7. Check sprinkler heads to remove dirt or debris that may clog nozzle heads.  Once a month, run the system on a short cycle and make any needed adjustments or minor repairs.
8. Consult a licensed irrigator if the irrigation system requires major repairs.
9. Install a rain or moisture shutoff device or another technology to prevent the system from operating in the rain or when soil moisture is sufficient.
10. Maintain the correct water pressure.  Your irrigation system should not operate below nor above the manufacturer’s published specifications for the equipment being used.  High water pressures waste water.

A little Steven Wright HUMOR...

Steven Wright is the famous comic scientist who once said, "I woke up one morning, and all of my stuff had been stolen and replaced by exact duplicates." His mind sees things differently than most of us do.  Here are some of his gems:

- I'd kill for a Nobel Peace Prize.

- Borrow money from pessimists - they don't expect it back.

-  Half the people you know are below average.

- 99% of lawyers give the rest a bad name.

- 82.7% of all statistics are made up on the spot.

- A conscience is what hurts when all your other parts feel so good.

- A clear conscience is usually the sign of a bad memory.

-If you want the rainbow, you got to put up with the rain.  

- All those who believe in psycho kinesis, raise my hand.  

- The early bird may get the worm, but the second mouse gets the cheese.

- I almost had a psychic girlfriend, but she left me before we met.

- Okay, so what's the speed of dark?

- How do you tell when you're out of invisible ink?

- If everything seems to be going well, you have obviously overlooked something.

- Depression is merely anger without enthusiasm.

- When everything is coming your way, you're in the wrong lane.

- Ambition is a poor excuse for not having enough sense to be lazy.

- Hard work pays off in the future - laziness pays off now.

- I intend to live forever - so far, so good.

- If Barbie is so popular, why do you have to buy her friends?

- Eagles may soar, but weasels don't get sucked into jet engines.

- What happens if you get scared half to death twice?

- My mechanic told me, "I couldn't repair your brakes, so I made your horn louder."

- Why do psychics have to ask you for your name.

- If at first you don't succeed, destroy all evidence that you tried.

- A conclusion is the place where you got tired of thinking.

- Experience is something you don't get until just after you need it.

- The hardness of the butter is proportional to the softness of the bread.

- To steal ideas from one person is plagiarism - to steal from many is research.

- The problem with the gene pool is that there is no lifeguard.

- The sooner you fall behind, the more time you'll have to catch up.

- The colder the x-ray table, the more of your body is required to be on it.

- Everyone has a photographic memory - some just don't have film.

- If at first you don't succeed, skydiving is not for you.

- If your car could travel at the speed of light, would your headlights work? 

Thinking of Selling your home? Sellers Get More Cash from Cleaning...

RISMEDIA, Friday, April 27, 2012— Cleaning and decluttering will garner sellers a 403 percent return on their investment when they sell their homes this spring, compared to a 293 percent return for electrical and plumbing upgrades and 196 percent for staging.

The results from HomeGain’s annual 2012 DIY Home Improvements for Sellers spiked a few myths about what improvements pay off in marketing homes today. Nearly 500 real estate agents nationwide participated in the survey to determine the top 10 low cost, do-it-yourself home improvements for people getting their home ready to sell.

Cleaning and de-cluttering continues to rank as the top suggested home improvement (since the survey was originally conducted in 2003). This low cost home improvement is recommended by 99 percent of real estate professionals. The average recommended cost is $402 with a returning value of just over $2,000 to the home’s sale price, or a 403 percent return.

In past surveys, home staging and lightening and brightening were battling it out for the number two spot on the top 10 list. In the 2011 survey, lightening and brightening reclaimed the number two position and held on to it in 2012. Home staging, however, fell to the number five position this year behind landscaping the yard and repairing electrical and/or plumbing.

The three least remunerative improvements were painting the interior (107 percent ROI), improving kitchens and bathrooms (66 percent ROI) and painting the exterior (55 percent ROI).

For more information, visit www.realestateeconomywatch.com.

Thinking of buying a home? Fixed Mortgage Rates Hold Near Record Lows...

RISMEDIA, Saturday, April 28, 2012— Freddie Mac (OTC: FMCC) recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates down slightly and hovering just above their record lows as markets waited for the Federal Reserve's monetary policy announcement. The 30-year fixed-rate mortgage averaged 3.88 percent and has been below 4 percent all but one week in 2012. The 15-year fixed, a popular refinancing choice, averaged 3.12 percent.

The 30-year fixed-rate mortgage (FRM) averaged 3.88 percent with an average 0.7 point for the week ending April 26, 2012, down from last week when it averaged 3.90 percent. Last year at this time, the 30-year FRM averaged 4.78 percent.

Results showed that the 15-year FRM this week averaged 3.12 percent with an average 0.6 point, down from last week when it averaged 3.13 percent. A year ago at this time, the 15-year FRM averaged 3.97 percent.

Additionally, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.85 percent this week, with an average 0.6 point, up from last week when it averaged 2.78 percent. A year ago, the 5-year ARM averaged 3.51 percent.

The 1-year Treasury-indexed ARM averaged 2.74 percent this week with an average 0.6 point, down from last week when it averaged 2.81 percent. At this time last year, the 1-year ARM averaged 3.15 percent.

"Fixed mortgage rates held near record lows this week as the markets waited for the Federal Reserve's (Fed) April 25th monetary policy announcement following two days of deliberations,” said Frank Nothaft, vice president and chief economist, Freddie Mac.

“The Fed stated that it expects economic growth to remain moderate and then pick up gradually. In addition, it noted that labor market conditions have improved in recent months and it anticipates the unemployment rate will decline gradually.

"The housing market has also shown some improvement as well. The Federal Housing Finance Agency's purchase-only house price index rose at a monthly rate of 0.3 percent in February. Moreover, 12 out of 20 metropolitan areas experienced increases over the month, according to the S&P/Case-Shiller® 20-city indexes, led by a 2.1 percent gain in Phoenix. New home sales in March were stronger than the consensus market forecast and February's sales were revised upwards to the strongest pace in almost two years. However, the Fed's statement warned that despite some signs of improvement, the housing sector still remains depressed."

For more information, visit www.freddiemac.com.

HOME MAINTENANCE TIP: How to Clean and Repair Gutters

RISMEDIA, Monday, April 23, 2012— Cleaning roof gutters is a small task that can prevent big problems. Every spring and fall, thoroughly cleaning your home’s gutters will keep them working like they should. Leaves can build up and clog the downspouts, which can cause water damage to your roof and fascia (board behind the gutter). All that water pouring over the gutters can end up next to your home’s foundation, and maybe in the basement or crawlspace. Follow these simple steps for cleaning your home’s gutters and making simple gutter repairs. Select an appropriate ladder to clean gutters. Use a step ladder if possible. For a two-story home, you may need an extension ladder. For all ladders, make sure the legs are set on a solid and level surface. Removing Debris Begin cleaning the gutter near a downspout. Remove the large debris (leaves, twigs, etc.) with a trowel and dump it in a bucket. To clean out finer materials, flush the gutter lengths with a hose starting at the end opposite the downspout. Alternatively, you can use a gutter-cleaning attachment on a hose. If the water doesn’t drain, recheck the downspout strainer, and clean as necessary. If gutter water still doesn’t drain, the downspout may be clogged. Check the drain end. If the downspout runs underground, remove it from the pipe as needed. Install a small nozzle on the hose and lock it at full pressure. Turn on the water and feed the hose up from the bottom of the spout. If this doesn’t clear the downspout or the nozzle is too big, use a plumber’s snake tool to clear the blockage. Reattach the downspout. Repairing Gutters After flushing the gutter, if there is still standing water, the gutter may not be sloped correctly and will require adjustment. The length of the system should decline at least ¼” every 10’ toward the downspout. If the gutter doesn’t slope enough, detach the hangers and adjust the gutter enough to drain properly, then reattach. It may be easiest to work on small sections at a time to prevent the entire gutter system from falling. Inspect the gutter for obvious damage and missing parts. Support hangers should be spaced every 2’ along the gutter. Repair any leaks in the gutter. Identify gutter leaks by filling the gutter with water, but make sure the gutters have dried before repairing. To repair leaks at the seams, make sure the gutter lengths are tight against each other, and run a bead of gutter sealant on both sides of all joints. To repair leaks at the end caps, add sealant along the inside of the joint. To repair holes in the gutter material, ask a Lowe’s associate for products designed to repair aluminum or fiberglass gutters. Apply gutter touch-up paint to cover any blemishes as desired. If necessary, repaint some or all of the gutters in the home’s exterior color. This article is excerpted from Lowe’s Creative Ideas magazine. For more information, please visit www.lowes.com.