WNY-RealEstate.com

6 Reasons to Reduce Your Home Price

admin — Fri, 18 Jun 2010 13:49:06 +0000

While you’d like to get the best price for your home, consider our six reasons to reduce your home price.

If you don’t receive any offers for a few weeks, check out other comparable houses on the market and what they’re going for.

If you don't receive any offers for a few weeks, check out other comparable houses on the market and what they're going for. Image: Liz Foreman

Home not selling? That could happen for a number of reasons you can’t control, like a unique home layout or having one of the few homes in the neighborhood without a garage. There is one factor you can control: your home price.
These six signs may be telling you it’s time to lower your price.

1. You’re drawing few lookers
You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think it’s overpriced and are waiting for the price to fall before viewing it.

2. You’re drawing lots of lookers but have no offers
If you’ve had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.

3. Your home’s been on the market longer than similar homes
Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 30 and you’re pushing 45, your price may be affecting buyer interest. When a home sits on the market, buyers can begin to wonder if there’s something wrong with it, which can delay a sale even further. At least consider lowering your asking price.

4. You have a deadline
If you’ve got to sell soon because of a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home, it’s how much money a buyer is willing to spend.

5. You can’t make upgrades
Maybe you’re plum out of cash and don’t have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from buyers is that your home isn’t as well-appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it’s time to accept that buyers expect to pay less for a home that doesn’t show as well as others.

6. The competition has changed
If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and what’s still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.

Article By G. M. Filisko
G.M. Filisko is an attorney and award-winning writer who made strategic price reductions that led to the sale of a Wisconsin property. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics. Reprinted with permission from NATIONAL ASSOCIATION OF REALTORS® © Copyright 2010

Home Inspection & Seller’s Disclosure Important!!

admin — Wed, 17 Mar 2010 14:58:41 +0000

The article below was published in the Buffalo News. It contains valuable lessons for all involved in a real estate transaction. Sellers… as the article reveals, it is so important to honestly disclose any defects in your home and not cover them up. Home buyers… while a home inspection might not have revealed these serious issues in this case either, it is still a very good idea to have one conducted.

Court awards $282,000 to purchasers of sinking home Jury finds sellers lied about condition

By Janice L. Habuda
NEWS STAFF REPORTER
Published: March 14, 2010, 12:30 am

A couple who bought a “sinking home” in Amherst has been awarded the purchase price by a State Supreme Court jury, which found the sellers lied about the home’s condition.

Karen and Anthony Regan sued the former owners of 107 Blue Heron Court, as well as the real estate firm that listed the property and the real estate agent who represented them. Claims against additional parties were dismissed by State Supreme Court Justice Patrick H. NeMoyer before trial.

The $282,000 award equals what the couple paid in 2007 for the house, which they also keep.

“This is the first case which has gone to trial in which a verdict has been rendered against both the seller and the real estate [agent],” said attorney James I. Myers, who represented the Regans.

“I think it sends a very strong warning and message to sellers. If they know of a material defect in their home, they have to disclose it,” Myers said. “It sends an equally strong message to real estate brokers and agents that they have a duty to disclose. They just can’t rely upon a buyer doing a home inspection.”

About a decade ago, hundreds of homeowners in parts of Amherst noticed foundation failures and sinking homes that later were attributed to soil problems.

Jurors found on March 5 that former owners Elaine and Robert Altman lied about the condition of the home, which is in an area of north Amherst where homes are sinking or cracking because of poor underground conditions. The Altmans were found 75 percent liable.

“We think the verdict is wrong,” said attorney Richard A. Clack, who represented the Altmans and said he is considering post-trial motions. “My clients certainly did not commit any knowing fraud against the buyers.

“We worked tirelessly throughout this case to try to come up with a solution for the new owners,” Clack said. “We went to trial on this unwillingly.”

John Fox, an agent for Hunt Real Estate whose actions were found to have violated Real Property Law, was found 20 percent liable.

Attorney Brian Sutter, who represented the agent and firm, said that an appeal is planned but declined to comment further.

Jurors found the Regans were 5 percent liable of negligence in their purchase. Their attorney said he doesn’t believe allocation of responsibility is appropriate in this case.

Another real estate agent, Scott Thomas, who originally worked on the Regans’ behalf as an agent for Keller Williams Realty, was found not liable.

Several years before putting the house up for sale, the Altmans noticed some settlement toward the back of the house and sought to remedy it, Clack said.

“They spent $28,000 in early 2002 to fix that,” Clack said. “They thought their house was in good condition when they put their house on the market.”

“They had given the Realtor the documentation of what had been done on the house,” Clack said.

Fox denied receiving or seeing some of the documentation in question, according to court papers.

The Regans looked at the home in spring of 2007 in the company of their real estate agent and the Altmans. In the basement, the walls were obscured but some cracks were visible in an uncarpeted area of the floor.

Anthony Regan claimed he asked about the cracks and was reassured by Robert Altman that there were no water problems. Regan testified that he then asked:

“This isn’t one of those sinking homes, is it?”

“[N]o, that’s in the Pines,” Altman reportedly replied.

“[Y]eah, they’ve had a lot of problems [or trouble] over there,” Thomas added.

After the Regans made an offer on the house, they received the “Property Condition Disclosure Statement,” in which the sellers stated there were no water infiltration issues with regard to the basement or structural defects.

Because of that statement and the existence of home warranty, the Regans decided not to have a home inspection.

After closing, the Regans heard from their new neighbors about sinking foundation problems in the neighborhood. They also learned of records on file with the Town of Amherst—including documents the Altmans had submitted with a request to have their assessment significantly reduced.

What about caveat emptor — let the buyer beware?

Myers, the Regan’s attorney, said that still applies, but sellers must prepare a disclosure statement and certify to its truthfulness.

“The courts have held that if they fill that out falsely, they can be held liable.”

Darlene Torbenson has been a spokeswoman for owners of sinking homes. “Hopefully, a ruling like this would make [real estate agents] a little bit more cautious about the homes they’re selling,” she said.

jhabuda@buffnews.com

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Buyers… 8 Steps to Getting Your Finances in Order

admin — Sat, 22 Aug 2009 01:10:33 +0000

Develop a family budget.
Instead of budgeting what you’d like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.
Reduce your debt.
Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt—car loans, student loans, revolving balances on credit cards—down to between 8 percent and 10 percent of your total income.
Get a handle on expenses.
You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You’ll probably see some great ways to save.
Increase your income.
It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want.
Save for a down payment.
Although it’s possible to get a mortgage with only 5 percent down—or even less in some cases—you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent down payment.
Create a house fund.
Don’t just plan on saving whatever’s left toward a down payment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.
Keep your job.
While you don’t need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.
Establish a good credit history.
Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.

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Moving Tips for Sellers

admin — Sat, 25 Jul 2009 04:12:19 +0000

Give your forwarding address to the post office, usually two to four weeks ahead of the move.
Notify your credit card companies, magazine subscriptions, and bank of the change of address.
Develop a list of friends, relatives, and business colleagues who need to be notified of the move.
Arrange to have utilities disconnected at your old home and connected at your new one. Click here for WNY contacts.
Cancel the newspaper.
Check insurance coverage for moved items. Usually movers only cover what they pack.
Clean out appliances and prepare them for moving, if applicable.
Note the weight of the goods you’ll have moved, since long-distance moves are usually billed according to weight. Watch for movers that use excessive padding to add weight.
Check with your condo or co-op about restrictions on using the elevator or particular exits.
Have a “first open” box with the things you’ll need most—toilet paper, soap, trash bags, scissors, hammer, screwdriver, pencils and paper, cups and plates, water, snacks, and toothpaste.

Plus, if you’re moving out of town:

Get copies of medical and dental records and prescriptions for your family and your pets.
Get copies of children’s school records for transfer.
Ask friends for introductions to anyone they know in your new neighborhood.
Consider special car needs for pets when traveling.
Let a friend or relative know your route.
Carry traveler’s checks or an ATM card for ready cash until you can open a bank account.
Empty your safety deposit box.
Put plants in boxes with holes for air circulation if you’re moving in cold weather.

Items to Have on Hand for the New Owners

Owner’s manuals for items left in the house.
Warranties for any items left in the house.
A list of local service providers—the best dry cleaner, yard service, etc.
Garage door opener.
Extra sets of house keys.
Code to burglar alarm and phone number of monitoring service if not discontinued.

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6 Ways to Speed Up Your Selling your Home

admin — Fri, 17 Jul 2009 17:36:02 +0000

Price it right.
Set a price at the lower end of your property’s realistic price range.
Get your house market-ready for at least two weeks before you begin showing it.
Be flexible about showings. It’s often disruptive to have a house ready to show on the spur of the moment, but the more often someone can see your home, the sooner you’ll find a seller.
Be ready for the offers. Decide in advance what price and terms you’ll find acceptable.
Don’t refuse to drop the price. If your home has been on the market for more than 30 days without an offer, be prepared to lower your asking price.

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Steps to Buying a Home

admin — Sat, 04 Jul 2009 01:20:11 +0000

These are the typical steps to buying a home in New York State.

Get Pre-Approved for a mortgage. This allows you to know your price range and monthly payment.
Search for a home.
Submit a purchase offer, a deposit is required at this step.
Seller accepts contract.
Contingencies removed after home inspection, etc.
You apply for a mortgage typically within 7 days.
While your mortgage application, is being processed your credit is checked and the property you are purchasing will be appraised.
Receive Mortgage Commitment- Typically within 30 days from mortgage application.
Abstract updated.
Property Surveyed.
Water/Septic Tests performed if required.
Package sent to lender’s attorney 4 to 7 days before closing.
Lender attorney reviews package.
Home owners insurance purchased typically 5 days before closing. (Buyers are required to purchase a Hazard insurance policy.)
Final Inspection done 1 day before closing.
Closing. (60 days from mortgage application)

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5 Common First-Time Homebuyer Mistakes

admin — Wed, 01 Jul 2009 19:49:20 +0000

They don’t ask enough questions of their lender and miss out on the best deal.
They don’t act quickly enough to make a decision and someone else buys the house.
They don’t find the right real estate professional who is willing to help you through the home buying process.
They don’t do enough to make their offer look good to a seller.
They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.

Reprinted with permission from Real Estate Checklists and Systems at www.realestatechecklists.com and from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2005. All rights reserved.

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10 Ways to Make Your House More Sellable…

admin — Wed, 01 Jul 2009 01:56:27 +0000

Get rid of clutter. Throw out or file stacks of newspapers and magazines. Pack away most of your small decorative items. Store out-of-season clothing to make closets seem roomier. Clean out the garage.
Wash your windows and screens to let more light into the interior.
Keep everything extra clean. Wash fingerprints from light switch plates. Mop and wax floors. Clean the stove and refrigerator. A clean house makes a better first impression and convinces buyers that the home has been well cared for.
Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows.
Put higher wattage bulbs in light sockets to make rooms seem brighter, especially basements and other dark rooms. Replace any burnt-out bulbs.
Make minor repairs that can create a bad impression. Small problems, such as sticky doors, torn screens, cracked caulking, or a dripping faucet, may seem trivial, but they’ll give buyers the impression that the house isn’t well maintained.
Tidy your yard. Cut the grass, rake the leaves, trim the bushes, and edge the walks. Put a pot or two of bright flowers near the entryway.
Patch holes in your driveway and reapply sealant, if applicable.
Clean your gutters.
Polish your front doorknob and door numbers.

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Sell Your Property Faster

admin — Fri, 26 Jun 2009 16:29:00 +0000

Things to Think About

What is the buyer’s first impression of the exterior of the house?
Should I re-seed the lawn and get my landscaping in top shape?
Does the house or any part need painting?
What about door mats? Do I need to replace them?
What about the windows? Are they clean? How about the screens? Any holes?
What is the buyer’s first impression as they step in the house?
Are my pets in control at all times?
Does the carpet need cleaning or replacement?
Are all the cabinets in good working order?
Can I take Items out of the cabinets to make them look more spacious?
Is there any furniture that can be stored to make the rooms look larger?
Since all buyers want to look in closets, can I take some of the clothes out to make them look roomier?
Are the garbage and storage areas as clean and neat as they should be?
Should I stay out of a prospective buyer’s way?
Is the price and terms offered going to appeal to most of the buying public in my price range?
Do I need to be aware of other houses similar to mine also being offered for sale?

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How Much Can You Afford?

admin — Fri, 26 Jun 2009 13:50:03 +0000

Prior to determining what type of home would be best for you, I find it is best to determine what you can afford.

At this early stage, all your income, savings, monthly expenses, and debt will need to be reviewed.

Getting pre-qualified for a mortgage loan, is a quick way to determine how much you can afford. (However you will typically still need to get pre-approved prior to purchasing a home. I will go into more detail on the difference between Pre-qualified and Pre-Approved in another article.)

I find it is best to get pre-approved as soon as possible. Being pre-approved allows you to shop in high confidence. If you find a home that you like, you can quickly put in a bid to purchase and it also reassures the seller you have the financial ability to purchase the home.

What you can afford to pay for a home will be determined by factors like:

Gross Income.
Available funds for down payment, closing and other miscellaneous costs.
Your debt burden.
Type of mortgage.
Interest rates.
Your credit history.

One way lenders evaluate how much you can afford is by using a housing expense-to-income ratio. This is determined by calculating what your estimated monthly housing expense would be. This is known as PITI. (Principal, Interest, Taxes, and Insurance)

Every buyer is different and a mortgage professional can help you find out just what you can afford. Income and debts typically are the largest factors in determining your price range.

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