Make It Your Highest and Best Offer
By marionduffy | July 20, 2009
I have had this conversation with several clients recently regarding bank owned listings. When you make an offer, it must be your “highest and best”. While it is understandable that buyers do not want to pay more than they have to for a property, the old days of making a low offer and expecting a seller to counter do not apply in today’s foreclosure market. A good percentage of foreclosures are in the lower price tier and first time buyers and investors are all over them. Most listings receive multiple offers shortly after they hit the market and sell for at least full list price if not over.
There is so much in the news about the terrible housing market, all the foreclosures, and declining prices. So it is very understandable that many buyers think they can come in way lower than the asking price. But the truth of the matter is that usually the asking price is the low price. Some of the comments I get from many buyers are: ”Is the listing agent lying about having all those offers just to apply pressure and make you offer more?” or “What if the lender would have taken less than my offer and I end up paying more than I needed to?”
REALTORS® are required to abide by a Code of Ethics and lying about multiple offers, or anything for that matter, is unacceptable. And, I can tell you from experience, multiple offers on bank owned properties is common place in today’s market. As far as the purchase price the lender will accept, the bank’s goal is to get the highest price with the best terms. That does not mean that the highest offer always gets it. In addition to price the bank considers the terms of the offer as well as the financial soundness of the buyer.
My advise is to offer a price you feel the property is worth to you, but it should be the highest price you feel you are comfortable with for that property. Offering a lower price and expecting the bank to come back with a counter is usually a waste of time. It really wouldn’t make good business sense on the part of the bank to spend time countering one buyer when they already have a better offer from another buyer. Your offer should be contingent on an appraisal, so if the appraisal comes in much lower you can renegotiate.
Topics: Foreclosures, Buyers, Real Estate Prices, Investment Property, Orange County Real Estate, Distressed Properties, Bank Owned | No Comments »
Stage With Greenery
By marionduffy | June 13, 2009
It may not sound like a big deal, but putting a little green in most rooms can make a house look more inviting to buyers. That is green as in greenery. A potted plant here and a vase of flowers there adds a certain ambiance to a home.
One of the reason
s to stage a home is to depersonalize it so that it is easier for buyers to imagine themselves living there. Plants and flowers are neutral. It’s kind of a psychological thing. Plants bring in a little of the outdoors and even if they are artificial they remind us of nature. They sort of set the mood by giving a room a more relaxed and happy feeling. Try taking the car and fashion magazines off the coffee table and placing a potted plant there instead. Replace the family photo on the corner of the desk with some greenery. Doing this will depersonalize and neutralize the room and make it more inviting to a potential buyer.
It doesn’t matter if the plants are real or artificial. In fact, when you are selling your house, artificial might be a better way to go. While your house is on the market, you basically need to keep it “open house perfect” all the time. Caring for real plants during this time will just add to your daily “to do” list. And a wilted straggly plant on the coffee table is just not the look you are going for!
The greenery is not meant to stand out, but just be part of the room. If done properly, many buyers wo
n’t even notice them. And that’s a good thing. You want potential buyers looking at your house, not at your belongings. Think of a window display at the mall. A clothing store advertising sun-dresses and swim wear may have a couple of surf boards and fake palm trees included in the display to give you the “summer feeling”. However, chances are that when you walk by, the only thing you notice is the clothing, but your subconscious mind is thinking summer fun.
Another advantage to using greenery is that it often helps you “declutter” the home. Removing clutter is the one of the best things, if not the best thing, you can do to prepare your home for sale. Again, remove all the magazines from a table and replace with one plant. Take everything off the bathroom counter except maybe a soap dispenser and add a little vase of flowers. Same with the kitchen. Clear the counters and then add a little greenery to break it up. After all, counter space sells and you want to show it off.
Often it is the little things that make a big difference. So go for the green with greenery.
Topics: Staging, Selling a house, Preparing Your Home for Sale | No Comments »
“Cash for keys” Program
By marionduffy | May 24, 2009
A loan modification or short sale is not always the answer for a homeowner facing foreclosure. However, at least in some cases, a “deed-in-lieu” option may help. The new Foreclosure Alternative Program (FAP) has a deed-in-lieu program that may help some homeowners. Under this program, sometimes referred to as “cash for keys”, the bank takes back the home from the borrower and agrees to write off the debt. This program does not work for everyone and a lender will only agree to do it under certain conditions. To read more about the program, see this week’s Beyond the Headlines by the California Association of REALTORS.
Topics: Foreclosures, Distressed Properties, Short Sales | No Comments »
Family Fun In Lake Forest This Sunday
By marionduffy | May 14, 2009
The Arbor in Lake Forest is the place to be this Sunday, May 17. The City of Lake Forest is sponsoring “Exploration Day in The Arbor: Carnival of Discovery“. The event is from 1:00 to 6:00 at The Orchard and Prothero Retail Center on El Toro Rd between Rockfield Blvd and Raymond Way. The fun includes carnival rides, music, family entertainment and much more.
A few of the local service organizations will have information tables at the event. They will have information on how they serve the community, upcoming events, as well as how to join if you are interested. I belong to Soroptimist International of Lake Forest and we will have a table at the event. Soroptimist is a women’s service organization with the goal of improving the lives of women and girls both locally and internationally.
Topics: Lake Forest | No Comments »
Sellers, Put Away Your Collections
By marionduffy | May 11, 2009
Many people have a collection of some sort. I have a blue bottle collection. Why, I don’t know. I think I had something that came in a nice looking blue bottle, so I kept the bottle. I now have about 5 or 6 blue bottles of different shapes and sizes. I keep them in a cabinet in the kitchen and I rarely pull them out.
Some colletions are just a few items, like my blue bottles. Others can be quite extensive and often people display them throughout their home. Collections can be a lot of fun and very interesting, something to share with family and friends when they visit. However, when you have your house for sale, it is usually best to put the collection away and out of sight.
For one, they can be a distraction. When prospective buyers are viewing your home, you really want them looking at your house, not at your collection. You want them to remember your house as the one with the nice kitchen or big backyard, not the one with the model airplane collection or all the plates displayed everywhere.
Also, collections often have a tendency to make the house look cluttered. Clutter is probably the worst thing to have in a house for sale. Likewise, removing clutter is the least expensive and best thing you can do to prepare your home for sale.
When preparing your home for sale, the goal is to make the home appeal to the biggest pool of buyers as possible. Buyers need to be able to picture themselves living in a home. Sometimes sellers make this very hard for buyers to do. For instance, I recently showed a home where the seller had a doll collection. There were dolls displayed everywhere, on shelves, on chairs, and on all the beds. These were probably antique and very expensive dolls. However, my buyer was a young bachelor and it made it really hard for him to imagine his belongings in among this menagerie of dolls. If all the dolls had been removed, it would have been easier for him visualize himself living there. Remember, it is best to depersonalize your home so it appeals to all types of buyers.
By packing up your collection before you list your home for sale, you make your house more marketable and you have one less thing to do when it is time to move.
Topics: Staging, Selling a house, Preparing Your Home for Sale | No Comments »
Mortgage Protection Plan for First-Time Buyers
By marionduffy | April 28, 2009
With home prices down and interest rates really low, most first-time buyers know this is a great time to buy. But with the constant news of job losses, many are hesitant to make the move. To help relieve the pressure, the California Association of REALTORS has started a new mortgage protection plan to benefit first-time buyers.
C.A.R. president, James Liptak, sent an email to all C.A.R. members describing the program. He states: “Through the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer also can participate in the program, for a reduced monthly benefit of $750 per month for up to six months in the event of a job loss. Program benefits also include coverage for accidental disability and a $10,000 death benefit. C.A.R.’s Housing Affordability Fund is dedicating $1 million to the program this year, and estimates that as many as 3,000 families will benefit from the program throughout 2009.
To qualify for the Mortgage Protection Program, applicants must:
. Be a first-time home buyer – someone who has not owned a home in the last three years
. Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
. Use a California REALTOR® in the transaction
. Purchase the property in California
. Be a W-2 employee (cannot be self-employed or military personnel)
First-time home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®”.
There is no cost for this program. To learn more, visit the CARHAF website.
Topics: Buyers, Real Estate Forms, Loan approval | 1 Comment »
Tips on Buying Fixer-Upper Houses
By marionduffy | April 17, 2009
Buying a fixer can be fun and very profitable, but it can also be a financial disaster and very stressful. Here are some tips to keep in mind when you are looking at homes:
Know what you are buying. A “fixer” can mean a lot of different things, from a cosmetic fixer in need of only carpet and paint to a total dump that needs a complete renovation. Seriously consider how much work is needed. Has the house been well maintained and just needs updating or does it have some serious problems like a leaky roof and structural issues? Always, always, always get a professional property inspection!
Know yourself. If you are planning on doing the work yourself, do you have the skills needed? Many first time buyers or even experienced homeowners have started a project just to find out it is way over their head. It ends up costing them even more because an experience contractor has to do it over or fix what went wrong. Sometimes it is better to do some of the work yourself and contract out other projects. Also, do you really have the time to do it?
Know what it will cost. Whether you plan to do the work yourself or pay someone else to do it, check into the cost of materials and labor before you buy the house. Getting more than one estimate is also a good idea. Then add 10 to 15 percent to the total cost. I have remodeled several homes and they always take longer and cost more than anticipated.
Know why you are doing it. It depends on whether you are buying the house for a rental or if you plan on living in it yourself. Fixing up a house to be a rental means bringing it up to par with other comparable rental property. But if it is a house that you are going to live in, you will want to fix it up just the way you like it. In either case, don’t over do it. It is really easy to get caught up in the moment and upgrade more than necessary.
I love buying fixers but I have learned to seriously evaluate what I am buying.
Topics: Buyers, Investment Property, Inspections | No Comments »
Beware of Foreclosure Scams!
By marionduffy | April 7, 2009
It is already bad enough to have suffer through the heartache and stress of the foreclosure process and the possibility of losing your home. But to be the victim of a scam that takes advantage of you makes it even worse.
The increase in the number of foreclosures has also increased the number of predators preying on vulnerable homeowners. These unscrupulous people try to convince desperate homeowners that they can rescue them from foreclosure.
The California Association of REALTORS has provided member REALTORS with a document for us to share with consumers regarding foreclosure rescue scams. It provides some of the warning signs and red flags of a foreclosure scam as well as some resources for homeowners who are already victims of such scams. Click on Foreclosure Rescue Scams below.
I must add that there are a number of very ethical professionals who are seriously trying to help homeowners facing foreclosures. But, just like everything else, beware of the scam artist.
Topics: Foreclosures, Selling a house, Distressed Properties, Short Sales, Loan approval | No Comments »
Keep the Dollars in Lake Forest
By marionduffy | February 24, 2009
Lake Forest is a great place to live!!! It will be 30 years this April that I have lived here. The community is safe (see page one of The Leaflet Newsletter, Jan.-Feb 2009), the schools are great, and it is close to just about everything. According to a recent survey, I’m not the only happy camper. The survey done in November 2008 found that 92% of residents and 87% of businesses are satisfied with the services provided by the City of Lake Forest ( page 4 of the Jan-Feb 09 Leaflet). And it keeps getting better.
We now have an excellent variety of restaurants as well as plenty of shopping. One way our residents can keep Lake Forest such a delightful place is to shop and dine locally. Doing that not only keeps money in our community and supports local businesses, but also encourages more retail and eateries to consider Lake Forest in their search for new locations. To get an idea of some of our local establishments, go to www.city-lakeforest.com/shopdinelakeforest.
Topics: Lake Forest, Orange County Real Estate | No Comments »
Curb Appeal and the Internet
By marionduffy | January 28, 2009
The Internet has made curb appeal even more important than in the past. Today when you list your home, literally the whole world can see the front of your house.
Curb appeal has always been important. If buyers drive by and don’t like the front of the house, it is unlikely that they will want to see the interior. A messy front yard is a good indication of what the rest of the house is like. You know what they say, “first impressions are lasting impressions” and “you don’t get a second chance to make a good first impression”.
The Internet has added a new dimension to this because now most buyer’s “first impression” comes from an online listing of the house. Today buyers do a lot of homework online before they actually go out to look at homes. And when they are ready to go out looking, they often ask their agent to show them homes they have found on their Internet search.
When searching online, buyers particularly look at the photos of the listings. It’s “a picutre is worth a 1000 words” type thing. But consider this. The first photo of each listing is usually of the front exterior of the house. There are often several more photos of the interior and backyard, but if the front is not appealing, a buyer may not click to view the rest of the pictures.
If you are preparing your home for sale, seriously study the front of your home and determine what needs to be done to improve its curb appeal. When you are ready to put it on the market, ask your agent to take several photos of the front and together pick the one that is the most appealing and likely to encourage a potential buyer to click for more. Make sure you have curb appeal and Internet appeal!
Please note: If the Internet listing of your home does not have photos you may as well not have your house on the market because buyers usually just skip over those listings!!!
Topics: Selling a house, Preparing Your Home for Sale | No Comments »
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