ForSalebyOwner.com founder gives up on own listing, hires real estate broker

- (source: AG Beat)

Former FSBO CEO sells home the traditional way

Founder and former CEO of ForSalebyOwner.com, Colby Sambrotto listed his 2,000 square foot New York condominium on his own through online classified ads and FSBO sites, but after six months, he opted to hire New York broker Jesse Buckler who immediately advised a price change as the listing was not attracting the right buyer.

After giving up on the DIY route, Sambrotto’s decision to hire a broker led to attracting multiple offers, closing for $150,000 over the original asking price. The WSJ reports the listing sold for $2.15 million including a 6% commission.

Many FSBOs turn to Realtors

The news stands as an enormous validation of the real estate profession and while some may tease, it is no laughing matter and the former FSBO CEO made a good financial decision.

AGBeat columnist Herman Chan said, “If people want to take a stab at For Sale By Owner (ie FSBO), go for it. But well over 80% of FSBO’s eventually have to list with an real estate agent to get their house sold. It’s harder than it looks!”

Not a new dilemma

Marlow Harris, Seattle Residential and Investment Consultant at Coldwell Banker Bain Associates told AGBeat, “The ForSaleByOwner.com founder’s dilemma is one we see quite often and is not unusual. Trying to sell your own property yourself or using a discount brokerage, is not the solution for everyone. Unusual properties, properties in the higher price range, these are more difficult to sell and often require specialization.”

Harris continues, “We see these choices across the board, from single family homes to huge housing developments. For instance, Vulcan, one of Paul Allen’s companies which has invested heavily in Redfin, does not use Redfin to market their many condominium projects. They use traditional real estate firms such as John L. Scott, Williams Marketing and Matrix Real Estate, finding that the do-it-yourself approach to real estate just doesn’t work for these types of sales.”

Foreclosures flat in first half of 2011 (Wichita Eagle)

Wichita area’s home foreclosures flat in first half of 2011

By DAN VOORHIS

 

The number of homes scheduled for foreclosure sale was about flat in the first half of 2011, perhaps signaling that the wave of foreclosures has stabilized.

There were 1,533 homes scheduled for sale by the Sedgwick County Sheriff’s Office in the first half of the year, but only 627 were actually sold. The rest were pulled out at the last minute by the banks.

Those levels are down about 25 percent from the high seen the first half of 2010 but are also about 25 percent higher than prerecession levels.

 

Full story: http://bit.ly/qvomxo

HELP!!! My Home Won’t Sell!!!

There are many ways to categorize home sellers, but one way is by motivation.  Sellers can fall into one of two categories:  WANT to sell, and NEED to sell.  These are two very different situations.  Circumstances such as change of income, marital status, job relocation and the like, can put you into a situation where you don’t have the choice to sell or not.  You HAVE to sell.

No matter which type of seller we are, we all need to start with realistic expectations and an understanding of the type of market we are in.  For example: most people don’t realize that only 58.1% of homes put on the market sell.  Which means that almost 42% don’t!  These odds aren’t what most sellers would want to hear, but that is reality.  When the number of buyers and sellers gets out of balance, the market can shift.  In the past year, and especially the past couple of months, there has been a widening of the gap between the growing number of homes available and the relatively few numbers of buyers to buy them.  This gap has created a strong buyer’s market in almost every price range.  In a buyer’s market, each home must compete with ever toughening competition.  Instead of the buyer having 10-15 homes to pick from, they now have 25-35 homes instead.  Your home must be the nicest home in the group to get the offer.  There are no points for 2nd or 3rd place.  In a buyer’s market, it is possible for your home to be seemingly priced properly, be in good repair, show well, and still not sell.

Whether you WANT to sell, or NEED to sell, the standard advice is always the same if the home isn’t selling:  change the house, change the price, or be patient.  By changing the house you can make your home stand out by looking different.  Items such as painting to neutral colors, updating light fixtures and hardware, changing the flooring, and staging the home can all make a huge difference.  By changing your price, you change your competition.  By moving into a different price category, you automatically look better RELATIVE to your new competition.  Sometimes, sellers find it necessary to change both the house AND the price.  The secret to being the home that is selected is really very simple: be the best home in the price range you choose to compete.  Since buyers shop by comparison and not in a vacuum, this principal becomes crucial to understand.  The decision to spend the money and make improvements or drop the price, sometimes by tens of thousands of dollars, is not an easy one.  It becomes a business decision of dollars and cents as well as a test of your true motivation.  Together with your real estate agent, you can make the decision that is right for both you and your family.

I HAVE to sell but I can’t wait forever.  What then?

If changing the house or changing the price aren’t possible, then prepare yourself for a, possibly long, wait.  Patience is something that very few people  find easy. If your financial situation prevents you from being able to wait for a while, and you can’t make improvements or drop the price any further, you may be feeling a bit desperate and perhaps out of options.  Truth is, you do have options.  They might not be ideal, but you do have options.  Here are a few:

1.    Rent the home – Being a landlord isn’t appealing to most people.  Most sellers wouldn’t know where to begin.  But there are property management companies that can handle the entire process for you from start to finish.  BE CAREFUL when renting to family or friends, you might lose more than you thought. If the renting option sounds appealing, you should really consider the Rent To Own process below.  Read on…

2.  Offer a “Rent To Own” – This may sound intimidating, but it’s really not.  Imagine having a “super” tenant, signed to a 3 year lease, who’s financially stable enough to put a little money down up front, who wants to buy your home at YOUR price, and who’s presumably going to treat it like their own.  Sound good?  This is a very powerful option for the seller who NEEDS to sell but isn’t already behind on payments.  It can be a real Win-Win opportunity for both the seller and the tenant/buyer.  Read more about our new Rent To Own (or Rent to Sell) Program below!

3.  Short Sale – For the seller who finds them self upside down and needing to sell, this may be the best alternative to a foreclosure.  Please visit our website www.wichitashortsale.info for more information on short sales.

4.  Foreclosure – While not appealing to anyone, this is an option.  For a growing number of people who simply can’t continue to make payments, this is a reality.  Sellers facing foreclosure should really consider trying a short sale first.

The “RENT TO SELL” Program

Due to changes in the mortgage requirements in the last few years, there are many potential buyers out there that cannot qualify for financing at this time. However, they know that within just a couple of years they will be able to get financing, but they want a home now. If you Rent-to-sell you’re home, you make it available to these buyers. Basically, you become the bank. Here are the steps:

1  Decide on your price. In a rent-to-sell situation, there’s usually no need to negotiate price, as you are already being flexible with terms by being willing to offer more options than the usual financing options.

2. Find a buyer – We do it all for you.

3. The buyer puts a percentage of the price down, up front.

4. The buyer then rents the home. Ideally, the rent should at least cover your mortgage payment. Usually the rent is going to be higher than your mortgage payment, meaning that you’re making money each month.

 

5. Anytime, within three years, if the buyer is ready and they can get financing, we close on the home. You and the buyer will have signed a contract that guarantees them the original price for three years.

6. After three years, if the buyer cannot or will not buy the home, they walk away, and you keep any money they had put down on the home. While the buyer is not required to buy this home, they would forfeit any money that they may have put down.

7. At this point you’ve either sold your home, or your mortgage payments have been made, you’ve made a little money on the side, and you have more equity in your home.  Now it’s time to decide, would you like to try and sell, or maybe go for the rent-to-sell again?  By then, you’ll be in a better situation and have more options.

We have a long list of buyers looking for Rent To Own opportunities right now.  If you’re considering this as an option and would like more information, contact us today.  Select Homes Property Management can assist you and handle all of the work.  Call Leah Brasca (316) 744-8900 for more information.

89 Quick and Easy Fix-ups to Help Sell Your Home Fast … and for more money!


Some Thoughts on Condition
Of all the things homeowners control when selling their home, the condition of the property is one of the most important.

A crucial part of marketing any product is the presentation of the product. Corporations and retail businesses understand this concept and pay millions of dollars each year to advertising and marketing consultants to get the best advice possible.

The same is true for real property. In order to compete effectively with other sellers, home owners must present their homes to the marketplace in an attractive, desirable condition. When you bought your home, you probably comparison shopped. Well, buyers are still doing that today. According to the National Association of Realtors, the average purchaser looks at 10 to 20 properties prior to purchasing a home. Regardless of how many properties are on the market, available buyers will always seek the best priced property that is in the best condition.

Think Like a Buyer!
You are not just selling a house. You are selling shelter, lifestyle, and dreams. People always want the best for themselves, and your home should represent the buyer’s answer to this goal. Put yourself in the buyer’s shoes! Remember, they arrive at your front door wanting to find the right home. Don’t make them search somewhere else for it. If you have done your homework, every room in your home will create a desire for the buyer to stay.

Start Making a List!
Walk outside and take a look at the property through the critical eyes of a buyer. Is there anything that needs repairing, looks worn, or is outdated? Start writing these items down on your list. Walk through the interior and do the same things. Ask for the assistance of everyone in your family. After all, a shorter sales time will benefit everybody in the family.

Do Everything Before Putting Your Home on the Market!
Complete all of your repairs, improvements, and enhancements prior to your first showing. Remember, your best showings come early in the listing period. Be ready!

How to Sell Your Home Faster and for More Money!
The following pages will guide you step by step through the process of preparing your home for sale to achieve the highest possible sale price in the least amount of time. Our concentration will be in six areas: (1) Repairing, (2) Cleaning, (3) Neutralizing, (4) Space Management,
(5) Atmosphere, and (6) Staging

Repairs
1. The rule of thumb is, if something needs repair, fix it! There are probably many things in your home that you have simply become used to over time…things that you have been promising yourself that you will attend to. Well, now is the time. The buyer will mentally add up the cost of repairing all those minor flaws and end up with an amount that is generally much higher than what it would cost you to do the repairs. You might be saying to yourself, “these repairs aren’t any big deal.” But the buyer is thinking, “If the owners didn’t care for these little items, then what about the roof and the furnace?” Needed small repairs and perceived owner neglect will either lower the purchase price or lengthen the time required to sell.

2. Check all walls for peeling paint and loose wallpaper.

3. Large repairs: In today’s climate of open disclosure and vigilant professional home inspections, the rule is “Treat a buyer as you would yourself.” Repair any problems with major systems or offer an allowance for the buyer to make repairs after closing. Always disclose anything that you know about the property. Having been a consumer yourself, you know that buyers will more readily make a purchase decision with someone whom they can trust.

Cleaning
4. Every area of the home must sparkle and shine! Each hour spent will be well worth it. Would you rather buy a clean car, or a dirty one? Would you hurry to buy a pair of shoes with mud on them?

5. Clean all windows, inside and out. This helps make the house sparkle.

6. Clean all wall-to-wall carpeting and area rugs. Clean and polish linoleum, tile and wooden floors.

7. Clean and polish all woodwork if necessary. Pay particular attention to the kitchen and bath cabinets.

8. Clean and polish all light fixtures.

Neutralizing
9. Be cautious about selecting colors when painting or replacing carpeting. Your objective here is to make your home appeal to the largest possible buying segment. Ask yourself “How many of the available buyers would be able to move into your house with their furniture and not have to replace the carpeting?” Position your home on the market to be as livable to as many people as possible.

10. Forget your personal taste…the “market” is always demand driven! The average buyer will have a hard time looking beyond blue carpeting and bold wallpaper. Consider replacing unusual or bold colors with neutral tones. Two coats of white paint may be the best investment you ever made.

Space Management (This involves creating the illusion of more space)
11. Arrange furniture to give the rooms as spacious a feeling as possible. Consider removing furniture from rooms that are crowded. If necessary, store large items.

12. Pack up collectibles…both to protect them, and to give the room a more spacious feel. Leave just enough accessories to give the home a personal touch. Dispose of unneeded items.

13. Remove all clutter and make it a habit to pick up clothing, shoes, and personal possessions each day for possible showings.

14. Empty closets of off-season clothing and pack for the move. Organize them to demonstrate the most efficient use of space. Leave as few items on the floor or shelves as possible.

15. Use light to create a sense of space. All drapes should be open. Turn on all of the lights throughout the home before a showing, and be sure to replace any burned out light bulbs!

Atmosphere
When placing yourself in the potential buyer’s shoes, you will want to consider the overall atmosphere of your home. Keep in mind your sense of smell as you go through the check list. Create the atmosphere of your home as a shelter, a place that is safe and warm, and in good condition.

16. A clean smelling house creates a positive image in the buyer’s mind. Be aware of any odors from cooking, cigarettes, pets, etc., that may have adverse effects on potential buyers. Remember that some people are much more sensitive to odors than others. Smokers rarely notice the odor of tobacco that fills their homes, and pet owners may be oblivious to objectionable cat or doggy odor.

17. You can use products like carpet deodorizers, air fresheners, and room deodorizers; but the best strategy is to remove the source of the smell rather than cover it up.

18. Unfortunately, often the only way to remove the smell of pet urine from flooring is to rip up the carpeting and padding and replace them. If this is preventing the sale of your home, don’t hesitate to make this investment.

19. If smoking or cooking odors have permeated your home, have your carpets and furniture cleaned, and air out or dry-clean your drapes.

20. Mildew odors are another no-no. Don’t allow wet towels to accumulate in hampers or dirty laundry to pile up in closets.

21. Once offensive odors are removed, consider adding delightful ones. Recent studies have shown that humans have strong, positive responses to certain smells. Cinnamon, fresh flowers, breads baking in the oven are all excellent ways to enhance your property for sale.

Staging
This part of preparing your home for sale is the most fun and involves the use of color, lighting, and accessories to emphasize the best features of your home.

22. Study magazine ads or furniture showrooms to see how small details can make rooms more attractive and appealing. The effect of a vase of flowers, an open book on the coffee table, a basket of birch logs by the fireplace, a scented candle, etc. can make the difference in a room.

23. The use of a brightly colored pillow in a wing chair or a throw blanket on a couch can add dimension to a sterile room.

24. Soften potentially offending views, but always let light into your rooms. Replace heavy curtains with sheer white panels. Never apologize for things you cannot change. The buyer will either decide to accept or reject the property regardless of the words you say. Just present your home in the best possible way with complete honesty.

25. Go through your photo albums and select pictures of your house and yard during all seasons. If hung at eye level in a well-lighted area, the pictures will speak for themselves and give you yet another selling stage.

26. Take advantage of natural light as much as possible by cleaning windows, opening shades and drapes etc. Add lamps and lighting where necessary. Be sure that all fixtures are clean and have functioning bulbs.

The Exterior
Check your home for any needed maintenance just as a buyer would. Repaint or touch up as necessary. You can’t make a better investment when you are selling your house! Don’t let the outside turn buyers off before the inside turns them on.

27. Color has the power to attract. A tub of geraniums, a pot of petunias, or a basket of impatiens on the front steps is a welcoming touch.

28. If you are selling during the winter months, consider using a wreath of dried flowers on the front door.

29. If you have a porch or deck, set the stage with pots of flowers and attractively arranged furniture.

30. Check to see that all doors and windows are in good working order. Give special attention to your home’s exterior doors and front entry. Clean and paint doors if necessary. Remember, first impressions are likely to color the remainder of the house tour.

31. Wash all windows and replace any broken and cracked window panes.

32. Screens should be free of any tears or holes.

33. Inspect all locks to ensure that they are functioning properly.

34. Check for loose or missing shingles.

35. Invest in a new doormat that says “Welcome”.

The Yard
36. Make sure the yard is neatly mowed, raked and edged.

37. Prune and shape shrubbery and trees to compliment your house.

38. Consider adding seasonal flowers along the walks or in the planting areas. Plop the plants into a well-placed wheelbarrow, an old-fashioned washtub, or what have you. Such standbys as nasturtiums, petunias, impatiens, and verbena are easy to maintain if you only remember to water them regularly. Try a row of sweet smelling alyssum to line a short sidewalk or pop in some perky dwarf marigolds to form a cheerful oasis of color in your yard.

39. It is important to devote at least one area of your yard to outdoor living. Buyers will still recognize a scene set with a picnic table and chairs and respond positively to it. Cover your picnic table with a fringed, red-and-white checked cloth set out some plastic plates and glasses bring out the barbecuing equipment, and buyers will almost smell the hot dogs cooking!

The Driveway
40. The driveway is no place for children’s toys. Not only are such things dangerous, the clutter is unsightly.

41. The surface of your driveway should be beyond reproach; after all, it’s one of the first things a buyer will see when he drives up. Sweep and wash the driveway and walks to remove debris, dirt and stains. Repair and patch the cracks, edge the sides and pull up any weeds.

ROOM-BY-ROOM ANALYSIS
The Front Entry

Whether a gracious proportioned center-hall or a small space just large enough for a coat rack and a tiny table, this part of your home deserves your particular attention.

42. Study your entry hall and ask yourself what kind of impression it makes for your home. Dried flowers or a small plant can make a striking focal point on a hall table any time of the year.

43. Virtually any entry hall will benefit from a well-placed mirror to enlarge the area.

44. Your entry hall’s flooring will be observed carefully by the prospective buyer. Make sure the surface is spotless and add a small rug to protect the area during showings.

45. The entry hall closet is the first one inspected. Make it appear roomy. Add a few extra hangers. Hang a bag of cedar chips or a pomander ball to give a pleasant, fresh scent. Remove all off-season clothing.

The Living Areas
Think of these areas as if they were furniture showrooms. Your job is to make each room generate a positive response. Add touches that make a room look truly inviting.

46. Sweep and clean the fireplace. Place a few logs on the grate to create an attractive appearance. You are welcome to have a fire going for showings during the winter months … it creates a great atmosphere.

47. Place something colorful on the mantel, but don’t make it look like a country craft store.

48. Improve the traffic flow by removing excess furniture. Have easy traffic flow patterns. Be sure that all doors open fully and easily.

49. Draw attention to exposed beams or a cathedral ceiling with special lighting. Be sure to remove any cobwebs and dust.

50. Remove oversized television sets if they dominate the room. If necessary, substitute with a smaller one until you move.

The Dining Room
Avoid going overboard. To be effective, any stage setting that you create should reflect the character of your entire home appropriately.

51. Set the scene by setting the table with an attractive arrangement. Add fresh or silk flowers as a centerpiece.

52. Visually enlarge a small dining area. If your dining table has extra leaves, take one or two out. Consider placing your dining table against the wall. Remove any extra “company” chairs. Consider putting the oversized pieces in storage until your house is sold.

The Kitchen
Pay particular attention to your kitchen. This room continues to be the “heart of the home”. A pleasant, workable kitchen is near the top of most buyers’ list of priorities and is a room that buyers always scrutinize closely.

53. Avoid clutter! Clean counters of small appliances and store whenever possible to maximize the appearance of work space.

54. Check the counter top around your sink, and remove any detergent or cleanser, etc., that may be cluttering the area.

55. Sinks, cabinets, appliances and counter tops should be clean and fresh.

56. All appliances should be absolutely clean, bright, sparkling, and shiny!!

57. Clean off the top of the refrigerator! If you must use that space for storage, use baskets and bowls to camouflage the items kept there.

58. Set the scene with an open cookbook, a basket filled with fruit, a basket of silk flowers, or a ceramic mixing bowl and wire whisk.

59. Create the aromas associated with happy homes! Bake some cookies from premixed, refrigerated cookie dough, start baking a loaf of refrigerated bread dough, or pop a frozen apple pie in the oven.

60. In the heat of summer, place a bowl of lemons or limes on the counter to provide a fresh and pleasant aroma.

61. Clean and organize all storage space. If your cabinets, drawers, and closets are crowded and overflowing, buyers assume that your storage space is inadequate. Give away items you don’t use, storing seldom-used items elsewhere, and reorganize the shelves. Neat, organized shelves and drawers look larger and more adequate for prospective buyer’s needs.

62. Large, cheerful kitchen windows are an advantage and should be highlighted as a special feature of your home. Take a critical look at the window treatment … is it clean, sharp and up-to-date? Do the curtains need washing or the blinds need cleaning? Would the window area look better without any window treatment?

63. Set the table for an informal meal with bright place mats and a generous bowl of fruit as a centerpiece.

The Laundry Room
A separate laundry room is a true asset and is one of the most frequent requests that buyers make during a home search. Don’t hide this treasure behind closed doors. Spruce up the room and open the door proudly for inspection.

64. Add a fresh coat of paint or put up cheerful wallpaper.

65. Organize all closets and storage space.

66. Remove all dirty laundry. Keep current with your laundry or store all dirty laundry in a closed container… maybe even hermetically sealed and welded shut!

67. Clean and polish the washer and dryer.

68. Consider adding an attractive, coordinated throw rug.

The Stairways
Stairways should provide an attractive transition from one level of your home to another.

69. Make certain the stairs are safe! Stair lighting should be more than adequate, stairs must be clutter free, stair railings tight and secure, and runners or carpeting tacked securely. Remove any items from the surface of the stairs and store elsewhere. Check the condition of the walls, and paint or re-wallpaper if necessary.

70. If the stairs are a focal point of the main living areas, carefully choose accents to improve the visual appeal. If you have a wide, gracious staircase, emphasize this feature by hanging a few pictures along the wall. Draw attention to a handsome lighting fixture by polishing the brass and dusting each small light bulb or crystal prism.

71. Large master bedrooms are particularly popular among today’s home buyers. Make your bedroom larger. Paint the room a light color, remove one of the bureaus if the room is crowded, and minimize clutter to maximize spaciousness. Aim for a restful, subdued look.

72. A private bathroom off the master bedroom is a real sales plus. Decorate to coordinate with the color scheme of your bedroom, creating the “suite” effect.

73. Virtually all buyers are looking for a house with plenty of closet space. Try to make what you have appear generous and well planned. Remove and store all out of season clothing. Remove any items from the floor area. This will make a closet seem more spacious. Arrange all shelves to maximize the use of space.

74. Make sure all articles in the closet are fresh and clean smelling. When prospective buyers open your closet door, they should be greeted with a whiff of fresh smelling air.

75. Make sure all closet lights have adequate wattage and are operating. Add battery operated lights to those closets that lack them. Lighted closets look bigger, are more attractive, and allow buyers to inspect the interiors easily.

76. Take the time to explain the importance of marketing to your children. Encourage them to participate in preparing your home for showing; particularly the principle of appealing to the widest possible market segment. Ask your children’s cooperation in making their beds and picking up their rooms prior to showings. Consider promising a special reward if they willingly participate in your house-selling goals.

77. Have them pack up any items that are not currently in use and dispose of unused possessions.

78. Remove any crowded, unusual, or personal wall hangings such as posters and store them until your home is sold.

The Bathrooms
Wise sellers take special pains when preparing their bathrooms for scrutiny by strangers. The bathroom is a room and a very personal one. Prospects will inspect yours carefully, so be sure it is immaculate. Cleanliness is the key! Make sure that all surfaces are spotless.

79. Replace worn or dirty shower curtains, clean and repair caulking, and remove nonskid bath decals that are in poor condition.

80. Clear off countertops and store all personal care products out of sight.

81. Repair any faucets that leak or do not function properly. Clean off mineral deposits with vinegar or commercial products.

82. Clean and organize all cabinets and drawers. Don’t forget the medicine cabinet and the storage cabinet under the sink. Dispose of old items and polish the shelves.

83. Remember to appeal to a wide range of buyers. Play down dominant colors with contrasting neutral colored towels and accessories. If your bathroom is mostly white or neutral, add a few cheerful accents of color. Don’t hesitate to buy a few new towels and a rug…you’ll be taking them with you to your new home.

84. Scrub and wax an old floor. Cover the largest area you can with a freshly washed scatter rug.

85. Decorate and personalize to create a pleasing, individual look. Consider bringing out your best towels and perfumed guest soaps. Add a plant for color and freshness.

86. A gentle hint of fragrance in the air is fine, but keep it subtle.

The Garage
87. Sweep and wash the floor to remove dirt and stains. Organize tools, garden equipment, bicycles, etc. A clean, organized garage appears larger.

88. If the area is dark, add more light. If it is small and accommodates only one car, remove your car before buyers visit. An empty garage always looks larger. If you have a two car garage with very little extra room, remove one of your cars so that buyers can make their inspection in comfort.

89. Get rid of anything that you don’t plan to move to your new home. Place remaining stored material neatly in boxes, and position away from walls.

IMPORTANT: Points to Remember When Showing Your Home
Increase your chances. The more people who see your home, the more likely you are to sell it quickly. Yes, it’s inconvenient to show your home at dinner time, but if the people buy your home, isn’t it worth it?

There shouldn’t be any major house cleaning at this point. The kinds of tasks you ought to be concerned with now are simple ones: making the beds, stuffing last night’s dirty pans in the dishwasher, picking up loose newspapers, etc. Even young children can participate by “cleaning” their rooms.

If the season is appropriate, open the windows in each room and let in some fresh air. Stale air isn’t appealing, particularly in a home with smokers or pets.

Keep your thermostat at a comfortable setting.

Turn on all the lights for every showing before prospective buyers arrive. This also gives you an opportunity to select the lighting effects you want for each room. No area of your home should be dark.

Turn off the television and turn on light background music.

Arrange for pets and children to be at a neighbor’s. Perhaps it’s unfair to lump children with pets, but young children can distract buyers from their purpose. Keep pets away from buyers.

Don’t try to “sell” the house with words! By this time you have prepared the house for sale … let it sell itself. Buyers buy on emotion—theirs, not yours! Keep the emotions under control.

“Depersonalize” the house as much as possible. Take down any extra family pictures that are hanging on the walls or displayed on the shelves. They will often distract the buyers’ attention from what is most important … the house!

Most importantly, please leave the home during all showings. It is uncomfortable and difficult for buyers to view the home when owners are present. Oftentimes, they will rush through the home and not give it the proper attention your home deserves. It is also hard for the buyers to “picture themselves” living in the home when the sellers are present.

NOTICE TO SELLERS
Keep in mind that buyers want to obtain the lowest price and best terms for themselves.

We recommend that you do not discuss the following types of information with any buyers or real estate agents, regardless of whom they represent, other than your listing agent.
1. Reason for selling.
2. Motivation/urgency to sell.
3. Willingness to consider an offer less than the listing price.
4. Terms under which you would sell.
5. Relocation, timing, benefits of policies…if applicable.
6. Items of personal property which you “might” be willing to include in a sale.
7. Any confidential information that would serve to disclose your negotiating strategy.

HELP!!! My Home Won’t Sell!!!

There are many ways to categorize home sellers, but one way is by motivation.  Sellers can fall into one of two categories:  WANT to sell, and NEED to sell.  These are two very different situations.  Circumstances such as change of income, marital status, job relocation and the like, can put you into a situation where you don’t have the choice to sell or not.  You HAVE to sell.

No matter which type of seller we are, we all need to start with realistic expectations and an understanding of the type of market we are in.  For example: most people don’t realize that only 58.1% of homes put on the market sell.  Which means that almost 42% don’t!  These odds aren’t what most sellers would want to hear, but that is reality.  When the number of buyers and sellers gets out of balance, the market can shift.  In the past year, and especially the past couple of months, there has been a widening of the gap between the growing number of homes available and the relatively few numbers of buyers to buy them.  This gap has created a strong buyer’s market in almost every price range.  In a buyer’s market, each home must compete with ever toughening competition.  Instead of the buyer having 10-15 homes to pick from, they now have 25-35 homes instead.  Your home must be the nicest home in the group to get the offer.  There are no points for 2nd or 3rd place.  In a buyer’s market, it is possible for your home to be seemingly priced properly, be in good repair, show well, and still not sell.

Whether you WANT to sell, or NEED to sell, the standard advice is always the same if the home isn’t selling:  change the house, change the price, or be patient.  By changing the house you can make your home stand out by looking different.  Items such as painting to neutral colors, updating light fixtures and hardware, changing the flooring, and staging the home can all make a huge difference.  By changing your price, you change your competition.  By moving into a different price category, you automatically look better RELATIVE to your new competition.  Sometimes, sellers find it necessary to change both the house AND the price.  The secret to being the home that is selected is really very simple: be the best home in the price range you choose to compete.  Since buyers shop by comparison and not in a vacuum, this principal becomes crucial to understand.  The decision to spend the money and make improvements or drop the price, sometimes by tens of thousands of dollars, is not an easy one.  It becomes a business decision of dollars and cents as well as a test of your true motivation.  Together with your real estate agent, you can make the decision that is right for both you and your family.

I HAVE to sell but I can’t wait forever.  What then?

If changing the house or changing the price aren’t possible, then prepare yourself for a, possibly long, wait.  Patience is something that very few people  find easy. If your financial situation prevents you from being able to wait for a while, and you can’t make improvements or drop the price any further, you may be feeling a bit desperate and perhaps out of options.  Truth is, you do have options.  They might not be ideal, but you do have options.  Here are a few:

1.    Rent the home – Being a landlord isn’t appealing to most people.  Most sellers wouldn’t know where to begin.  But there are property management companies that can handle the entire process for you from start to finish.  BE CAREFUL when renting to family or friends, you might lose more than you thought. If the renting option sounds appealing, you should really consider the Rent To Own process below.  Read on…

2.  Offer a “Rent To Own” – This may sound intimidating, but it’s really not.  Imagine having a “super” tenant, signed to a 3 year lease, who’s financially stable enough to put a little money down up front, who wants to buy your home at YOUR price, and who’s presumably going to treat it like their own.  Sound good?  This is a very powerful option for the seller who NEEDS to sell but isn’t already behind on payments.  It can be a real Win-Win opportunity for both the seller and the tenant/buyer.  Read more about our new Rent To Own (or Rent to Sell) Program below!

3.  Short Sale – For the seller who finds them self upside down and needing to sell, this may be the best alternative to a foreclosure.  Please visit our website www.wichitashortsale.info for more information on short sales.

4.  Foreclosure – While not appealing to anyone, this is an option.  For a growing number of people who simply can’t continue to make payments, this is a reality.  Sellers facing foreclosure should really consider trying a short sale first.

The “RENT TO SELL” Program

Due to changes in the mortgage requirements in the last few years, there are many potential buyers out there that cannot qualify for financing at this time. However, they know that within just a couple of years they will be able to get financing, but they want a home now. If you Rent-to-sell you’re home, you make it available to these buyers. Basically, you become the bank. Here are the steps:

1  Decide on your price. In a rent-to-sell situation, there’s usually no need to negotiate price, as you are already being flexible with terms by being willing to offer more options than the usual financing options.

2. Find a buyer – We do it all for you.

3. The buyer puts a percentage of the price down, up front.

4. The buyer then rents the home. Ideally, the rent should at least cover your mortgage payment. Usually the rent is going to be higher than your mortgage payment, meaning that you’re making money each month.

 

5. Anytime, within three years, if the buyer is ready and they can get financing, we close on the home. You and the buyer will have signed a contract that guarantees them the original price for three years.

6. After three years, if the buyer cannot or will not buy the home, they walk away, and you keep any money they had put down on the home. While the buyer is not required to buy this home, they would forfeit any money that they may have put down.

7. At this point you’ve either sold your home, or your mortgage payments have been made, you’ve made a little money on the side, and you have more equity in your home.  Now it’s time to decide, would you like to try and sell, or maybe go for the rent-to-sell again?  By then, you’ll be in a better situation and have more options.

We have a long list of buyers looking for Rent To Own opportunities right now.  If you’re considering this as an option and would like more information, contact us today.  Select Homes Property Management can assist you and handle all of the work.  Call Leah Brasca (316) 744-8900 for more information.

 

First-time Homebuyers Help Available

The Kansas Local Government Statewide Housing Program provides a 4 percent cash assistance loan with a floating interest rate for eligible borrowers to use for downpayment and closing costs. KLGSHP is administered by Sedgwick County and is available statewide. Click here for more information.

FHA Increasing Annual Mortgage Insurance Premiums

On Sept 7, the Federal Housing Administration (FHA) will be increasing the annual mortgage insurance premiums for FHA loans to 0.85 percent or 0.9 percent, depending on the loan-to-value (LTV) ratio of the loan.  At the same time, the upfront mortgage insurance premium will be cut by more than half to 1.0 percent.  Although the new fee levels will result in a $38 per month increase for the average homebuyer using an FHA loan, the increased fees are absolutely necessary in order to replenish the FHA capital reserves fund and ensure the continued availability of the vitally important FHA loan program.  For more information, you can review a letter from HUD explaining the changes by clicking here.

To Buy Or Not To Buy, That Is The Question

The American Dream-Isn’t that what everyone is after?  Back at the turn of the 20th century, just 36.5% of Americans owned their own homes.  In 2009 that percentage was up to 67.4. Owning a home has, to many, become a symbol of the American Dream.  However, to many others, it’s a terrifying prospect to invest so much money and for so many years.  So what should YOU do?  To buy or not to buy, that is the question.

HOW WILL BUYING A HOME HELP ME FINANCIALLY?
–Mortgage Interest Deduction: The interest that you pay each year, on your mortgage, is deductible on  your tax return.  That means if you buy a $150,000 home, at the end of that first year, you’ll be able to claim an almost $6500 deduction on your tax return!
–Property Tax Deduction: The property tax that you pay each year is deductible on your tax return.  On a $150,000 home, property tax would be around $1900 per year that you can claim as a deductible.
–Appreciation: Right now, homes in our area are appreciating at around 2-3% per year.  This means, that after only five years, the home you purchased for $150,000, is now worth almost $174,000!
–Capital Gain Exclusion: If you’re married and have lived in your home for at least two of the past five years, and you decide to sell your home, the potential profit of up to $500,000 is NOT TAXABLE!
SOME THINGS TO THINK ABOUT
–Paint: Would like to paint or decorate your home in YOUR style?  If you rent, you can’t do that.  If you buy, when it comes to décor, the sky’s the limit!
–Music: Are you ever at home listening to the radio, and all of a sudden your favorite song comes on?  Don’t you just want to crank the volume up!  If you’re renting an apartment, your neighbors will hear and the cops might be at your door shortly.  If you buy your own home, you can play your music as loud as you please, or enjoy that surround sound when watching a movie.
–Stability & Security: Do you ever worry that your landlord may decide to sell the house that you’re living in?  If you own it, that worry is GONE!  How would you like the stability of knowing that you’re in the home you’re going to raise your children in, the home they’re going to come back and visit you in during later years!
Please remember that buying a home is a very serious decision and needs to be made based on facts.  There are many online sites that have rent-versus-own calculators.  Use them!  Talk to a Buyers’ Agent, he or she will be able to sit down with you and help you decide if you’re ready for this investment.  If you do it wisely, buying a home just might be the best investment you ever make, and you just may be able to live, the American Dream!

Sedgwick Co. Program Offers Down Payment Assistance

BY BILL WILSON

The Wichita Eagle

Sedgwick County is back in the mortgage lending business through a down payment assistance plan for low-income first-time homebuyers.

The program makes $50 million in mortgage revenue bonds available to first-time buyers who can pay a mortgage but don’t have enough money to cover up-front costs like down payments and closing charges.

County officials are finalizing details of the plan for a rollout later this month. For information, call the county housing office at 316-660-7270.

“There are a lot of people who, once in place in a home, can go ahead and make the mortgage payment,” Sedgwick County Commissioner Dave Unruh said.

“But coming up with a 10 percent or whatever down payment, they don’t have that available. … It helps the individual get a home and it helps keep the housing market going while not being a drain on county resources.”

Dorsha Kirksey, director of the county’s housing department, said the program is a redesigned version of the 25-year-old Kansas Local Government Stateside Housing Program.

Instead of the traditional 4 percent grant to qualified first-timers, it instead offers a five-year mortgage, probably at around 6 percent, as a second mortgage for qualifying buyers and homes.

The program carries income limits tailored to the applicant, but makes the down payment assistance available to buy homes priced in excess of $200,000.

The program comes at a time when many home lenders are requiring significant down payments from borrowers, and are hesitant to allow second mortgages like the county program.

But Gary Schmitt, who oversees residential and commercial lending at Wichita’s Intrust Bank, said the program is a good community investment.

“Historically, these have been a really good deal,” Schmitt said. “In today’s environment, they’re unique, but we still have to figure out ways to provide money to people who can afford homes but not have the means to get in.”

Kirksey said the retooled program has been on hold since 2008 because of the housing market meltdown.

It was revived through the U.S. Treasury Department’s initiative for state and local home finance agencies.

Kirksey said Treasury will buy $30 million of the bonds, with the other $20 million sold on the private market.

Read more: http://www.kansas.com/2010/07/08/1394909/sedgwick-co-program-offers-down.html?story_link=email_msg#ixzz0tV0riK89