Question: I'm planning to buy a house and I'm thinking of buying something new in the Albuqueque or Rio Rancho areas. Do you have any advice for me on buying a new home?
Answer: New homes are very attractive and it's easy to understand why. It's exciting to move into a place that doesn't have anyone else's memories or wear and tear. Everything is brand new and you get to customize the space yourself. And sometimes the whole area has great landscaping and a great look. There are lots of new homes and developments in the Greater Albuquerque area such as Loma Colorado, or Cabezon, in Rio Rancho, or Stormcloud on the westside of Albuquerque. There are, however, a few pointers I can give you that might help the process go a little smoother.
I assume we're talking about buying in a development and not building from scratch on your own land. These two processes have some similarities, but are not the same.
The single best thing you can do to protect yourself is to work with a Realtor. I know, I am a real estate agent, so of course I'd say that, but there's a good reason . The builder's sales person will help you through the process once you pick a house, but they aren't going to help you weight the pros and cons of their particular development against the others you've seen and against the pre-existing or resale homes you've seen while looking at houses. Keep in mind, if you go into a development alone while driving around and give them your name, sometimes even if you give them your real estate agent's card, they often won't pay your broker their commission. That basically means, unless you're going to pay your broker, you've forfeited the ability to work with a Realtor at all. So let your Realtor spend the gas money and gain the benefit of having them on your side through the whole process. It doesn't cost you anything and could provide a whole host of unforseen benefits.
Another big misconception about buying new is that you don't need an inspection. Certainly things are less likely to breakdown when they're brand new, but the larger truth is that things go wrong in any house. There's a period of time (usually right after you move in) where you discover things are working the way they seemed do during your final walk through. This can happen even with a home inspection, but it's much less likely. So, regardless of if you're buying brand new or a 50 year old house, you should get a home inspection. This is very common on a "Resale" purchase, but people often waive this right on the new purchase, probably because on a new house, the buyer pays for any additional inspections they would like to get.
When the new house is completed you'll do a "Walk-through" inspection with the Superintendent on the project. Tell them in advance that you'll want to bring an inspector with you and that you need a week's notice to get that scheduled. Sometimes you don't need that much time, but usually you do. And in a busy market you might need two weeks. Linda Cecil, the owner of Concept One Home Warranties and Inspections in Albuquerque, offers a lower price for inspecting new homes because the inspection usually goes so smoothly. Check with whomever you end using to see if they offer a similar discount.
So get out there and start looking. Visit the Rio Rancho Home Search page of my website to see what's on the market right now. There are a number of new developments in Albuquerque and Rio Rancho such as Cabezon, Loma Colorado and many more. Some of them are green built homes and others are patio homes or townhomes. Plus, some of the builders are offering great incentives such as closing cost assistanct of money towards upgrades.
If you're getting an upgrade package make sure you use it on things that will raise the value of the house such as tile instead of vinyl floors, or the higher end fixtures, cabinets or counters. Things like paint are cheap, easy to do yourself and don't really add any value. This is true for carpet too. You're going to wear down the carpet living there and you'll probably replace it when you go to sell it. Get whatever is standard and that you'll like and go for the more permanent and lasting upgrades.
Visit www.LeadingMeSafelyHome.com for neighborhood information, to search for houses, find services providers and more.
Friday, August 28, 2009
Thursday, December 18, 2008
Increasing Equity in a house
Question:
I just bought a house and plan to live in it for at least 5 years. What can I do to increase my equity besides making extra principal payments on my loan?
Answer:
Congratulations. You’ve bought a home in one of the best markets for buyers. Just the fact that you bought your house in a down market will give you a good chance of your house increasing in value while you live there. This, in turn, increases the amount of equity you have in your house.
“Equity” is the percentage, or amount, of your house that you own outright. So if you put 10% down on the house when you purchased it, you started out with 10% equity.
There are a number of ways of increasing your equity while you own your home.
First, every time you make a mortgage payment, you increase how much you own by a small amount. If you make additional payments, or pay extra, towards your principal you further add to the equity you have in your home.
Another way to grow your equity is to improve the value of the house, which increases the difference between the loan amount and the total value of the home.
There are a few ways for a house to increase in value. One of them is through market changes. You bought in a down market, which is great. Prices are low and you took advantage of the first part of the “buy low, sell high” concept. If you keep your house until you are in a seller’s market, then you will get to finish the cycle by selling high. This is the more passive approach to increasing value.
The other approach is to make updates to your house which can increase the value. What you decide to do will depend on what needs to be done, how much those changes will cost and how much of a benefit there will be. Some things that tend to pay the owner back the best when they go to sell are renovating kitchens and bathrooms. Remember, replacing things like the furnace or cooler are not updates, but maintenance items. They do not necessarily increase the value, but they certainly will make the house more saleable when you do go on the market.
The most important thing is to do the renovations you will enjoy the most and that will have the biggest increase in value. Some less expensive ways to increase the value of a house are cosmetic changes such as refinishing wood floors or replacing vinyl floors with tile.
Items like new windows definitely increase the value and also save you money on your heating and cooling bills. In this case, it’s an update that pays you back two fold. Once through the energy cost savings and again when you go to sell the house.
In short, enjoy your house. Make extra principal payments when you can. Make renovations your will enjoy and see where the market takes you. You can live happily in your home knowing you bought at the best time to buy and you’ll try to reap the benefits of that decision down the line.
Visit www.LeadingMeSafelyHome.com for seller tips, to search for houses in the Albuquerque area, buyer tips and more.
I just bought a house and plan to live in it for at least 5 years. What can I do to increase my equity besides making extra principal payments on my loan?
Answer:
Congratulations. You’ve bought a home in one of the best markets for buyers. Just the fact that you bought your house in a down market will give you a good chance of your house increasing in value while you live there. This, in turn, increases the amount of equity you have in your house.
“Equity” is the percentage, or amount, of your house that you own outright. So if you put 10% down on the house when you purchased it, you started out with 10% equity.
There are a number of ways of increasing your equity while you own your home.
First, every time you make a mortgage payment, you increase how much you own by a small amount. If you make additional payments, or pay extra, towards your principal you further add to the equity you have in your home.
Another way to grow your equity is to improve the value of the house, which increases the difference between the loan amount and the total value of the home.
There are a few ways for a house to increase in value. One of them is through market changes. You bought in a down market, which is great. Prices are low and you took advantage of the first part of the “buy low, sell high” concept. If you keep your house until you are in a seller’s market, then you will get to finish the cycle by selling high. This is the more passive approach to increasing value.
The other approach is to make updates to your house which can increase the value. What you decide to do will depend on what needs to be done, how much those changes will cost and how much of a benefit there will be. Some things that tend to pay the owner back the best when they go to sell are renovating kitchens and bathrooms. Remember, replacing things like the furnace or cooler are not updates, but maintenance items. They do not necessarily increase the value, but they certainly will make the house more saleable when you do go on the market.
The most important thing is to do the renovations you will enjoy the most and that will have the biggest increase in value. Some less expensive ways to increase the value of a house are cosmetic changes such as refinishing wood floors or replacing vinyl floors with tile.
Items like new windows definitely increase the value and also save you money on your heating and cooling bills. In this case, it’s an update that pays you back two fold. Once through the energy cost savings and again when you go to sell the house.
In short, enjoy your house. Make extra principal payments when you can. Make renovations your will enjoy and see where the market takes you. You can live happily in your home knowing you bought at the best time to buy and you’ll try to reap the benefits of that decision down the line.
Visit www.LeadingMeSafelyHome.com for seller tips, to search for houses in the Albuquerque area, buyer tips and more.
Monday, October 13, 2008
Should I sell, foreclose, short sale or rent?
Question:
I bought my house two years ago in Albuquerque, NM. Now the houses in my area are selling for less than what I owe. I’m struggling financially and I’m worried I might have to sell my house and I won’t get enough money to pay off the mortgage. What should I do?
Answer:
A lot of people are facing the same issue in Albuquerque and all over the country. We know we’re in a market where home values are down. We know we are in difficult times. Most people struggling to make ends meet think the only option is foreclosure. But there are other options. I don’t know your exact situation, so let’s assume you have missed a couple of payments, or are about to miss your first payment, and are struggling like so many other Americans.
You might decide to try and sell your house, but if it’s worth less than you owe, you won’t have enough money to pay off the mortgage. That’s when you call the bank for permission to do a “short sale”. This is where the lender allows you to sell for less than you owe and they reduce the amount of your mortgage. If you haven’t missed any payments yet, which is preferred in protecting your credit, you will probably have to demonstrate financial hardship for them to approve the sale.
However, there are other options available to you that don’t involved letting go of the house. Those include renting out your house and finding someplace cheaper for yourself, refinancing if at all possible, cutting back other expenses, or some combination of the above.
First, talk to a mortgage lender. Find out if you can get approved to refinance. If you get a much lower interest rate, it will make your monthly payment lower.
Next, talk to a property manager. Find out how much you can get if you rent your house. If you can cover, or almost cover your mortgage, you might be able to keep the house. Then you can rent something significantly cheaper (think apartment or townhouse) and your monthly expenses will go down.
Finally, look at your budget. Find out how much you need per month to live and cut out some of the extras. If staying in your house means enough to you, cutting back on other things might be worthwhile.
Selling because the market is low is the definition of “panic selling”. It hurts you financially. It hurts the market. And it can hurt your credit. So, if you are managing to make ends meet, I would suggest hanging in there. Real estate, like many investments, does best over the long-term. It’s a good investment when compared with renting, but it’s not designed to make you rich in just a couple of years. The people who make the most from their homes are usually those who stay in them for the long haul. If your plan was to live in your house for five to ten years, then stay a few more and see where things stand. History shows us values will come back up. You bought this house because it suited your life and you liked it. Now it’s time to enjoy it.
Visit www.LeadingMeSafelyHome.com for seller information, to get a free Comparative Market Analysis on your house and more.
I bought my house two years ago in Albuquerque, NM. Now the houses in my area are selling for less than what I owe. I’m struggling financially and I’m worried I might have to sell my house and I won’t get enough money to pay off the mortgage. What should I do?
Answer:
A lot of people are facing the same issue in Albuquerque and all over the country. We know we’re in a market where home values are down. We know we are in difficult times. Most people struggling to make ends meet think the only option is foreclosure. But there are other options. I don’t know your exact situation, so let’s assume you have missed a couple of payments, or are about to miss your first payment, and are struggling like so many other Americans.
You might decide to try and sell your house, but if it’s worth less than you owe, you won’t have enough money to pay off the mortgage. That’s when you call the bank for permission to do a “short sale”. This is where the lender allows you to sell for less than you owe and they reduce the amount of your mortgage. If you haven’t missed any payments yet, which is preferred in protecting your credit, you will probably have to demonstrate financial hardship for them to approve the sale.
However, there are other options available to you that don’t involved letting go of the house. Those include renting out your house and finding someplace cheaper for yourself, refinancing if at all possible, cutting back other expenses, or some combination of the above.
First, talk to a mortgage lender. Find out if you can get approved to refinance. If you get a much lower interest rate, it will make your monthly payment lower.
Next, talk to a property manager. Find out how much you can get if you rent your house. If you can cover, or almost cover your mortgage, you might be able to keep the house. Then you can rent something significantly cheaper (think apartment or townhouse) and your monthly expenses will go down.
Finally, look at your budget. Find out how much you need per month to live and cut out some of the extras. If staying in your house means enough to you, cutting back on other things might be worthwhile.
Selling because the market is low is the definition of “panic selling”. It hurts you financially. It hurts the market. And it can hurt your credit. So, if you are managing to make ends meet, I would suggest hanging in there. Real estate, like many investments, does best over the long-term. It’s a good investment when compared with renting, but it’s not designed to make you rich in just a couple of years. The people who make the most from their homes are usually those who stay in them for the long haul. If your plan was to live in your house for five to ten years, then stay a few more and see where things stand. History shows us values will come back up. You bought this house because it suited your life and you liked it. Now it’s time to enjoy it.
Visit www.LeadingMeSafelyHome.com for seller information, to get a free Comparative Market Analysis on your house and more.
Friday, November 30, 2007
Fixing up an older Albuquerque home for resale
If you have a limited income but want to invest in your house to make it more marketable and worth more money, you have to decide what you're going to update. There's a big difference between the things you can and can't see just as redoing the kitchen and floors, or putting in a high efficiency swamp cooler or all new windows.
Older homes tend to fall into one of two categories, updated or not. In the Albuquerque Real Estate market as well as any other market this means a huge difference in price depending on the upgrades that have been made as well as the general prices of the area. It's important to find out how much of an increase your neighborhood will support. If you're in Downtown Albuquerque the difference between an updated and non-updated home can be as much as $75,000. If you're in Nob Hill it could be even more.
If you’re planning to sell an older home, but want to increase the value first, you will have to do some work. If you’re on a very tight budget, don’t worry, there is a wide array of things you can do to a house to increase its value from paint, to new flooring, to redoing the kitchen and baths.
If you have to sell your house and don’t have time for a remodel, you will have to accept a lower sales price. If you take this route, try and get estimates on what the remodel would cost and pass this information onto prospective buyers. It will help them see the potential and they will be more likely to buy if they have a plan for updating.
If you decide to remodel, then figure out how much you can afford and decide what you’re going to do. The main idea is that upgrades people can see have the most impact on value. So, while an energy efficient cooler is a huge selling point, and does add value, it’s not as important as all new appliances and updating the bathrooms. This is particularly true on a limited budget where you have to choose only a few projects on which to work.
To decide on which projects to do, think about what will make the biggest impact. Paint is cheap and easy, so definitely do that in every room of the house. It will go a long way to improving the look of the house. Condition will determine the other projects. If all the floors have “throw-down brown” carpet and 1970’s vinyl, then you will want to make new flooring treatments a priority. If the bathroom is in good condition, but is dated, consider new fixtures like shower and sink faucets, towel holders, cabinet pulls and a new mirror. These minor changes can give your bathroom a new fresh look for a reasonable budget. Do the same kind of thing in the kitchen to get a clean and fresh look throughout the entire house.
These are just a few ideas of what to do to increase value of your house without spending too much money. But, try and enjoy the changes too. If you’re going to live in your house for a while, make these changes so you can live with the rewards of your hard work. Then when you go to sell, you’ll just have to touch up the minor details.
Visit www.LeadingMeSafelyHome.com for seller tips, to get a free CMA (Comparative Market Analysis) on your home, search properties in the free Albuquerque area MLS and more.
Older homes tend to fall into one of two categories, updated or not. In the Albuquerque Real Estate market as well as any other market this means a huge difference in price depending on the upgrades that have been made as well as the general prices of the area. It's important to find out how much of an increase your neighborhood will support. If you're in Downtown Albuquerque the difference between an updated and non-updated home can be as much as $75,000. If you're in Nob Hill it could be even more.
If you’re planning to sell an older home, but want to increase the value first, you will have to do some work. If you’re on a very tight budget, don’t worry, there is a wide array of things you can do to a house to increase its value from paint, to new flooring, to redoing the kitchen and baths.
If you have to sell your house and don’t have time for a remodel, you will have to accept a lower sales price. If you take this route, try and get estimates on what the remodel would cost and pass this information onto prospective buyers. It will help them see the potential and they will be more likely to buy if they have a plan for updating.
If you decide to remodel, then figure out how much you can afford and decide what you’re going to do. The main idea is that upgrades people can see have the most impact on value. So, while an energy efficient cooler is a huge selling point, and does add value, it’s not as important as all new appliances and updating the bathrooms. This is particularly true on a limited budget where you have to choose only a few projects on which to work.
To decide on which projects to do, think about what will make the biggest impact. Paint is cheap and easy, so definitely do that in every room of the house. It will go a long way to improving the look of the house. Condition will determine the other projects. If all the floors have “throw-down brown” carpet and 1970’s vinyl, then you will want to make new flooring treatments a priority. If the bathroom is in good condition, but is dated, consider new fixtures like shower and sink faucets, towel holders, cabinet pulls and a new mirror. These minor changes can give your bathroom a new fresh look for a reasonable budget. Do the same kind of thing in the kitchen to get a clean and fresh look throughout the entire house.
These are just a few ideas of what to do to increase value of your house without spending too much money. But, try and enjoy the changes too. If you’re going to live in your house for a while, make these changes so you can live with the rewards of your hard work. Then when you go to sell, you’ll just have to touch up the minor details.
Visit www.LeadingMeSafelyHome.com for seller tips, to get a free CMA (Comparative Market Analysis) on your home, search properties in the free Albuquerque area MLS and more.
Real Estate Disclosures in Albuquerque, NM
I've often been asked how much a seller needs to disclose when selling a house.
The short answer is “When in doubt, disclose.”
If you’re getting ready to sell your home, it’s important to know your responsibilities. I'm sure this is true in most markets, but certainly in the Albuquerque Real Estate market one of the guiding principles is to disclose any “adverse material facts” about your house. This includes things like leaks, foundation problems, electrical issues as well as easements or zoning problems. If you have to ask yourself if you should include it on your disclosure statement, the answer is “yes.”
Real estate used to be a “Buyer Beware” industry. There was little focus on disclosures and both of the agents technically worked for the seller. Over the last decade this has changed. Both the buyer’s and seller’s brokers are usually paid by the seller, but the buyer’s broker is there to represent the buyer and look out for their best interest. This includes helping the buyer find out as much about the house as possible through inspections, surveys and reading the disclosure. With the increased focus on the buyer’s concerns comes more attention paid to the honesty and accuracy with which the seller provides their disclosure.
If you had a huge leak 10 years ago and you replaced the roof and fixed all of the damage, disclose it. The buyer will hopefully see it as a plus that the roof has been replaced, and as long as there is no sign of the damage, they will likely not be concerned. Besides, you have no choice. Selling a home has a lot of complexities and the best way to handle them is with as much honesty, integrity and care as possible. Your real estate professional should have a disclosure form to help you list everything you might know about your house, and to answer the questions that many buyers will have. In preparation for this, you might want to make a list of all of the major repairs and issues you have dealt with during your ownership of the home. Make note of the upgrades you’ve made to the house since you can include those in your disclosure and in the marketing materials for your home. Most houses have had some issues, even newer ones. Hopefully you have been a diligent home owner and have either fixed problems right away, or you have done regular preventative maintenance to avoid problems altogether. Either way, it’s important to communicate as much information as you can about your home.
A disclosure statement can be a powerful tool in selling a house. Don't just see it as a chore, or a negative. Think of it as giving the new owners a user’s manual. The more information the potential buyer has, the better they will feel about their prospective new house. They will feel more in control of the situation, more committed to the house if they understand it's history, and they will be more likely to make an offer.
Visit www.LeadingMeSafelyHome.com for seller tips, to get a free valuation on your house, search properties in the Albuquerque area and to find service providers.
The short answer is “When in doubt, disclose.”
If you’re getting ready to sell your home, it’s important to know your responsibilities. I'm sure this is true in most markets, but certainly in the Albuquerque Real Estate market one of the guiding principles is to disclose any “adverse material facts” about your house. This includes things like leaks, foundation problems, electrical issues as well as easements or zoning problems. If you have to ask yourself if you should include it on your disclosure statement, the answer is “yes.”
Real estate used to be a “Buyer Beware” industry. There was little focus on disclosures and both of the agents technically worked for the seller. Over the last decade this has changed. Both the buyer’s and seller’s brokers are usually paid by the seller, but the buyer’s broker is there to represent the buyer and look out for their best interest. This includes helping the buyer find out as much about the house as possible through inspections, surveys and reading the disclosure. With the increased focus on the buyer’s concerns comes more attention paid to the honesty and accuracy with which the seller provides their disclosure.
If you had a huge leak 10 years ago and you replaced the roof and fixed all of the damage, disclose it. The buyer will hopefully see it as a plus that the roof has been replaced, and as long as there is no sign of the damage, they will likely not be concerned. Besides, you have no choice. Selling a home has a lot of complexities and the best way to handle them is with as much honesty, integrity and care as possible. Your real estate professional should have a disclosure form to help you list everything you might know about your house, and to answer the questions that many buyers will have. In preparation for this, you might want to make a list of all of the major repairs and issues you have dealt with during your ownership of the home. Make note of the upgrades you’ve made to the house since you can include those in your disclosure and in the marketing materials for your home. Most houses have had some issues, even newer ones. Hopefully you have been a diligent home owner and have either fixed problems right away, or you have done regular preventative maintenance to avoid problems altogether. Either way, it’s important to communicate as much information as you can about your home.
A disclosure statement can be a powerful tool in selling a house. Don't just see it as a chore, or a negative. Think of it as giving the new owners a user’s manual. The more information the potential buyer has, the better they will feel about their prospective new house. They will feel more in control of the situation, more committed to the house if they understand it's history, and they will be more likely to make an offer.
Visit www.LeadingMeSafelyHome.com for seller tips, to get a free valuation on your house, search properties in the Albuquerque area and to find service providers.
Updating your kitchen in Albuquerque, NM to increase home value.
Each market has different trends and styles, so for the purpose of this article I will only address the trends of the Albuquerque Real Estate market. Things may vary in your market, so be sure to talk to a local Real Estate or Interior Design professional before making drastic changes in your home.
If you’re planning on updating your kitchen, but you are low on financing resources, there are lots of improvements you can make, increase the value of your home and stay within your budget.
Now, you want to enjoy the benefits of your remodel, so don’t wait until you’re about to sell your house to do it. If you need new appliances, then go ahead and get them, but if they are in working condition you might want to invest the money in other parts of the kitchen that bring more value such as cabinets and counters and wait until the second phase to replace appliances. That said, a dishwasher is a must in any modern kitchen, so if you don’t have one, you might as well put one in now and enjoy the luxury. This usually means losing some cabinet space to make room next to the sink. You might want to move the displaced cabinets to another part of the kitchen so you don’t lose the storage space.
Also keep in mind, whatever you do with the counteres and cabinets will have to be able to accomodate standard size appliances when you do get new ones. If you have a strangely small refrigerator, or no room for a microwave, you will want to make adjustments now for the coming appliances. Any buyer will surely expect a microwave and room for a normal fridge.
Counters and cabinets can be the most expensive part of a kitchen remodel, but are also the most important along with working and nice looking appliances. If you just can’t afford to do both counters and cabinets, consider painting or refinishing the cabinets and getting new pulls that give them a modern look. Re-dooring can be another option where you just get new doors for the existing cabinets. This can save a lot of money and it looks like you did all new cabinets. If the counters are worn or extremely dated, then you should invest in new countertops. There are a number of ways to do this. Laminate counters are the least expensive option. It can look nice and clean (I have them in my kitchen) but they have the least resale value.
The fashion in kitchens right now is granite, quartz or other natural stone. These will generally be in the mid to higher price range along with cement, stainless steel, solid surface and some kinds of tile. There are a number of less expensive options that will increase the value of your home and prospective buyers will like. These options can range from some kinds of tile, wood and some of the solid surface options. But counters and cabinets alone do not update a kitchen. Floors are an important element as well.
In the future, I will talk about flooring options and how to make the most of your limited budget without taking away from the value put into the rest of the kitchen.
Visit www.LeadingMeSafelyHome.com for seller tips and info, a free Comparative Market Analysis (CMA) on your Albuquerque area home, find service providers and more.
If you’re planning on updating your kitchen, but you are low on financing resources, there are lots of improvements you can make, increase the value of your home and stay within your budget.
Now, you want to enjoy the benefits of your remodel, so don’t wait until you’re about to sell your house to do it. If you need new appliances, then go ahead and get them, but if they are in working condition you might want to invest the money in other parts of the kitchen that bring more value such as cabinets and counters and wait until the second phase to replace appliances. That said, a dishwasher is a must in any modern kitchen, so if you don’t have one, you might as well put one in now and enjoy the luxury. This usually means losing some cabinet space to make room next to the sink. You might want to move the displaced cabinets to another part of the kitchen so you don’t lose the storage space.
Also keep in mind, whatever you do with the counteres and cabinets will have to be able to accomodate standard size appliances when you do get new ones. If you have a strangely small refrigerator, or no room for a microwave, you will want to make adjustments now for the coming appliances. Any buyer will surely expect a microwave and room for a normal fridge.
Counters and cabinets can be the most expensive part of a kitchen remodel, but are also the most important along with working and nice looking appliances. If you just can’t afford to do both counters and cabinets, consider painting or refinishing the cabinets and getting new pulls that give them a modern look. Re-dooring can be another option where you just get new doors for the existing cabinets. This can save a lot of money and it looks like you did all new cabinets. If the counters are worn or extremely dated, then you should invest in new countertops. There are a number of ways to do this. Laminate counters are the least expensive option. It can look nice and clean (I have them in my kitchen) but they have the least resale value.
The fashion in kitchens right now is granite, quartz or other natural stone. These will generally be in the mid to higher price range along with cement, stainless steel, solid surface and some kinds of tile. There are a number of less expensive options that will increase the value of your home and prospective buyers will like. These options can range from some kinds of tile, wood and some of the solid surface options. But counters and cabinets alone do not update a kitchen. Floors are an important element as well.
In the future, I will talk about flooring options and how to make the most of your limited budget without taking away from the value put into the rest of the kitchen.
Visit www.LeadingMeSafelyHome.com for seller tips and info, a free Comparative Market Analysis (CMA) on your Albuquerque area home, find service providers and more.
Tuesday, May 29, 2007
Should I sell my home before I buy something new?
Question:
I want to move into a new home, but I don’t want to sell until I find something I really love. Will there be any problems with that?
Answer: People often want to find the home of their dreams and then sell their current home. Sometimes this can work, but more often then not the timing is just off. If you’re in a strong sellers market, then most sellers don’t have to accept a “contingency offer” which is where they take the house off the market and then give you an agreed upon amount of time in which to sell your home. If you’re in an area where homes are selling very quickly then you might be able to sell it in time to meet your contract. But if you’re in a market with a large number of homes for sale it could take a lot longer.
If you can afford to buy your new house without selling your current home, and you can afford to pay two mortgages if needed, then you might be o.k. However, most people need the money from their current home as a downpayment on the new home.
For example, the current situation in Rio Rancho is one with a lot of homes on the market. Right now, it takes the average home 46 days to get a contract. Some houses will sell more quickly, but many will take longer. Then it’s customarily another 30 days to close. If you have the average home, it could take you as long as 80 days or more to have the proceeds from your sale. While that is not terribly long, it is often too long to ask a seller to wait.
Even though it’s more effort, the safest thing to do is sell your home first. Once you have a buyer, look aggressively for a new home. If you don’t find something right away you might have to rent a home month to month in the interim. Sometimes you can even rent back the house you just sold if the new buyer doesn’t have to move in right away.
You can pack your belongings and keep a good deal of it in storage. If it looks like it’s going to be a short term rental situation, you probably won’t need your fine china set for the two or three months it takes to move into your new home. Besides, you’ll have moved a lot of your belongings into storage when you did the staging for your house and de-cluttered, so you’ll have much less to move into the temporary rental.
If you’re ready to buy something new, list your home for sale and then be prepared to rent something for a little while. It’s worth it in the long run and you won’t feel pressured to buy something just because of the timing.
Visit www.LeadingMeSafelyHome.com to get a free CMA, search Albuquerque area properties, read Frequently Asked Questions, get buyer and seller tips and more.
I want to move into a new home, but I don’t want to sell until I find something I really love. Will there be any problems with that?
Answer: People often want to find the home of their dreams and then sell their current home. Sometimes this can work, but more often then not the timing is just off. If you’re in a strong sellers market, then most sellers don’t have to accept a “contingency offer” which is where they take the house off the market and then give you an agreed upon amount of time in which to sell your home. If you’re in an area where homes are selling very quickly then you might be able to sell it in time to meet your contract. But if you’re in a market with a large number of homes for sale it could take a lot longer.
If you can afford to buy your new house without selling your current home, and you can afford to pay two mortgages if needed, then you might be o.k. However, most people need the money from their current home as a downpayment on the new home.
For example, the current situation in Rio Rancho is one with a lot of homes on the market. Right now, it takes the average home 46 days to get a contract. Some houses will sell more quickly, but many will take longer. Then it’s customarily another 30 days to close. If you have the average home, it could take you as long as 80 days or more to have the proceeds from your sale. While that is not terribly long, it is often too long to ask a seller to wait.
Even though it’s more effort, the safest thing to do is sell your home first. Once you have a buyer, look aggressively for a new home. If you don’t find something right away you might have to rent a home month to month in the interim. Sometimes you can even rent back the house you just sold if the new buyer doesn’t have to move in right away.
You can pack your belongings and keep a good deal of it in storage. If it looks like it’s going to be a short term rental situation, you probably won’t need your fine china set for the two or three months it takes to move into your new home. Besides, you’ll have moved a lot of your belongings into storage when you did the staging for your house and de-cluttered, so you’ll have much less to move into the temporary rental.
If you’re ready to buy something new, list your home for sale and then be prepared to rent something for a little while. It’s worth it in the long run and you won’t feel pressured to buy something just because of the timing.
Visit www.LeadingMeSafelyHome.com to get a free CMA, search Albuquerque area properties, read Frequently Asked Questions, get buyer and seller tips and more.
Making Repairs before selling
Question:
Am I going to have to make repairs on my home in order to sell it?
Answer: Every contract and home sale is different, but the custom in the Greater Albuquerque area is that the buyer will request a certain amount of money for repairs when they make an offer on the house. When you accept an offer there is no way to know how much the repairs will cost since the inspections have not been done yet. Yes, some homes are sold in “as is” condition, but in a highly competitive market that is a disadvantage and you could find yourself without a buyer at all. The seller customarily pays for the inspections and this too will have been negotiated in the purchase agreement.
Once you have a contract the inspections are scheduled. This is the point when emotions run high. Buyers (especially first time home buyers) get scared of what they are undertaking and the results of the inspections are often alarming. This is also when the deal sometimes falls apart. No one wants this to happen, but sometimes seller and buyer alike can get caught up in the details and lose sight of what they really want. Also, in a competitive market, such as the current one, you can’t afford to lose a willing buyer. At every stage you should ask yourself “Am I willing to lose this buyer over this issue.” If it’s a few hundred dollars on a near full price offer, you might find the repair list worth completing.
There are steps you can take in advance of the inspections and the single best thing you can do is make the needed repairs before the house is on the market. We all live with little quirks in our homes that we would not want in a new home, such as doors that stick, or the back door lock that’s broken. After all, who doesn’t have one of those wooden sticks as a lock on a set of sliding glass doors? It’s true, you may fix things that the buyer would not have requested, but the fewer items on the inspection report, the smoother things will go.
So when selling your home, make sure its in good repair, present it well, price it correctly, and make it easy to show. All of these things will help give you the edge in a market with many listings to consider that are in direct competition to yours.
Visit www.LeadingMeSafelyHome.com for seller tips, service providers to help with staging and organization and more.
Am I going to have to make repairs on my home in order to sell it?
Answer: Every contract and home sale is different, but the custom in the Greater Albuquerque area is that the buyer will request a certain amount of money for repairs when they make an offer on the house. When you accept an offer there is no way to know how much the repairs will cost since the inspections have not been done yet. Yes, some homes are sold in “as is” condition, but in a highly competitive market that is a disadvantage and you could find yourself without a buyer at all. The seller customarily pays for the inspections and this too will have been negotiated in the purchase agreement.
Once you have a contract the inspections are scheduled. This is the point when emotions run high. Buyers (especially first time home buyers) get scared of what they are undertaking and the results of the inspections are often alarming. This is also when the deal sometimes falls apart. No one wants this to happen, but sometimes seller and buyer alike can get caught up in the details and lose sight of what they really want. Also, in a competitive market, such as the current one, you can’t afford to lose a willing buyer. At every stage you should ask yourself “Am I willing to lose this buyer over this issue.” If it’s a few hundred dollars on a near full price offer, you might find the repair list worth completing.
There are steps you can take in advance of the inspections and the single best thing you can do is make the needed repairs before the house is on the market. We all live with little quirks in our homes that we would not want in a new home, such as doors that stick, or the back door lock that’s broken. After all, who doesn’t have one of those wooden sticks as a lock on a set of sliding glass doors? It’s true, you may fix things that the buyer would not have requested, but the fewer items on the inspection report, the smoother things will go.
So when selling your home, make sure its in good repair, present it well, price it correctly, and make it easy to show. All of these things will help give you the edge in a market with many listings to consider that are in direct competition to yours.
Visit www.LeadingMeSafelyHome.com for seller tips, service providers to help with staging and organization and more.
Staging - Preparing your home for sale
Question:
What do I have to do to prepare my home for sale? Is cleaning it really well enough?
Answer: When you are ready to sell your home, there are a number of things that you have to do to get it ready. You want to price your home to get people in the door, and then you need to make sure they like what they see. A good thorough cleaning is a great way to start, but it’s just not enough.
There are many more homes on the market in the Albuquerque Area than there were in recent years. Given this shift it’s critical that your home stands out from the competition. That’s where “Staging” comes in. Staging is when you take furniture and position it to highlight the features of the house and provide a clean, compelling and effective presentation.
The reason for staging your home is simple. You want to help the buyers envision their own belongings in the house. If you have a wall of family photos, people might not see past them to imagine their own photos there. They will unconsciously feel they are intruders in your home instead of feeling “at home.” Staging provides them with an idea of how the space can be used, but otherwise gives them a blank canvas on which to design their future.
There are a number of ways to stage your house for sale. Most people think of renting expensive furniture and filling an empty home. This is one of the options, but you can also stage a home that is occupied. If you are living in your home when it goes on the market, then the simplest, most cost-effective and quickest way is to use the furniture you already own.
In order to do this, you will need to de-clutter and de-personalize your space and then organize your furniture in a way that shows off the features and benefits of your house. You may even have to rent a storage unit if you don’t have space to discretely hide the items you’ll be removing. You can hire a professional stager, or you can give it a try on your own, but sometimes it helps to have an impartial person advise you on what to keep, where to put it and what to remove. You’ll likely be moving soon, so think of it as advance packing.
So when selling your home, create a space that entices the buyer, price it correctly, be aware of the market conditions and make it easy to show. All of these things will help give you the edge in a market with many listings to consider that are in direct competition to yours.
Visit my website at http://www.leadingmesafelyhome.com/ to learn more about what to do to get ready to sell your house, review seller tips, search Albuquerque area properties and more.
What do I have to do to prepare my home for sale? Is cleaning it really well enough?
Answer: When you are ready to sell your home, there are a number of things that you have to do to get it ready. You want to price your home to get people in the door, and then you need to make sure they like what they see. A good thorough cleaning is a great way to start, but it’s just not enough.
There are many more homes on the market in the Albuquerque Area than there were in recent years. Given this shift it’s critical that your home stands out from the competition. That’s where “Staging” comes in. Staging is when you take furniture and position it to highlight the features of the house and provide a clean, compelling and effective presentation.
The reason for staging your home is simple. You want to help the buyers envision their own belongings in the house. If you have a wall of family photos, people might not see past them to imagine their own photos there. They will unconsciously feel they are intruders in your home instead of feeling “at home.” Staging provides them with an idea of how the space can be used, but otherwise gives them a blank canvas on which to design their future.
There are a number of ways to stage your house for sale. Most people think of renting expensive furniture and filling an empty home. This is one of the options, but you can also stage a home that is occupied. If you are living in your home when it goes on the market, then the simplest, most cost-effective and quickest way is to use the furniture you already own.
In order to do this, you will need to de-clutter and de-personalize your space and then organize your furniture in a way that shows off the features and benefits of your house. You may even have to rent a storage unit if you don’t have space to discretely hide the items you’ll be removing. You can hire a professional stager, or you can give it a try on your own, but sometimes it helps to have an impartial person advise you on what to keep, where to put it and what to remove. You’ll likely be moving soon, so think of it as advance packing.
So when selling your home, create a space that entices the buyer, price it correctly, be aware of the market conditions and make it easy to show. All of these things will help give you the edge in a market with many listings to consider that are in direct competition to yours.
Visit my website at http://www.leadingmesafelyhome.com/ to learn more about what to do to get ready to sell your house, review seller tips, search Albuquerque area properties and more.
Pricing real estate in the Albuquerque Area.
Question:
Are there specific issues in the Albuquerque area that I should keep in mind when pricing my home for sale?
Answer: Yes. Every area has specific market conditions that effect the way you should price your home. Your neighborhood might even be different from another just a few miles away.
If you live in Downtown Albuquerque, or the North Valley, there is a tighter inventory and therefore you may be able to ask a little more for your home then if you lived in, say Rio Rancho, or the westside of Albuquerque where there are many homes for sale and buyers are being more picky.
In Albuquerque, we are in a market showing slower growth than in recent years. This means there is likely to be a larger number of homes available for sale in the coming months. More homes, means more comparison shopping on the part of the buyers. If you’re planning to sell your home this summer there are a number of things you can do to help your house stand out among the others in the same price range, area and style. They key is to do the most you can with the things within your control, and find the positive in the things out of your control, like location or size.
The first thing to examine is price. If you want or need to sell your home quickly, having it priced right is the first major step. This is true in even the best Sellers' Market. Many people think they should price their home a little higher than they hope to get so they can negotiate. This can be a fatal error. If a home is priced just right, it’s reasonable to try and get the asking price. If it’s priced high, it might not ever sell.
Most people look at homes within a certain price range, for example, “up to $300,000.” If your home is priced at $310,000 when it really should be $298,000 you will miss the buyers who can’t go above $300,000. Those who will see your home are in the $300,000 - $350,000 range and they have a different set of expectations given their higher budget. So even if you were planning to come down $12,000, people who could afford your home at the lower price won’t even consider it because it seems out of their reach. In fact, they will probably never even know it’s available.
Equally important in this market is how your home looks on paper when compared to the other homes available at the same price. When there is a large inventory, as we have on the westside and Rio Rancho, then buyers have to narrow the options before they even leave their Realtor’s office. So if your home does not have the same amenities, features and details of the other homes, it will quickly be dropped off the list. Good pictures can help with this too.
So too, in an area where the homes are very similar to one another, if your home is priced higher than it should be, it will be easily noticed and again, be ruled out quickly.
So when selling your home, price it realistically, stage it well, be aware of the market conditions and make it easy to show. All of these things will help give you the edge in a market with many listings to consider that are in direct competition to yours.
To get a sense of your home's value visit www.LeadingMeSafelyHome.com and request your free CMA or Comparative Market Analysis.
Are there specific issues in the Albuquerque area that I should keep in mind when pricing my home for sale?
Answer: Yes. Every area has specific market conditions that effect the way you should price your home. Your neighborhood might even be different from another just a few miles away.
If you live in Downtown Albuquerque, or the North Valley, there is a tighter inventory and therefore you may be able to ask a little more for your home then if you lived in, say Rio Rancho, or the westside of Albuquerque where there are many homes for sale and buyers are being more picky.
In Albuquerque, we are in a market showing slower growth than in recent years. This means there is likely to be a larger number of homes available for sale in the coming months. More homes, means more comparison shopping on the part of the buyers. If you’re planning to sell your home this summer there are a number of things you can do to help your house stand out among the others in the same price range, area and style. They key is to do the most you can with the things within your control, and find the positive in the things out of your control, like location or size.
The first thing to examine is price. If you want or need to sell your home quickly, having it priced right is the first major step. This is true in even the best Sellers' Market. Many people think they should price their home a little higher than they hope to get so they can negotiate. This can be a fatal error. If a home is priced just right, it’s reasonable to try and get the asking price. If it’s priced high, it might not ever sell.
Most people look at homes within a certain price range, for example, “up to $300,000.” If your home is priced at $310,000 when it really should be $298,000 you will miss the buyers who can’t go above $300,000. Those who will see your home are in the $300,000 - $350,000 range and they have a different set of expectations given their higher budget. So even if you were planning to come down $12,000, people who could afford your home at the lower price won’t even consider it because it seems out of their reach. In fact, they will probably never even know it’s available.
Equally important in this market is how your home looks on paper when compared to the other homes available at the same price. When there is a large inventory, as we have on the westside and Rio Rancho, then buyers have to narrow the options before they even leave their Realtor’s office. So if your home does not have the same amenities, features and details of the other homes, it will quickly be dropped off the list. Good pictures can help with this too.
So too, in an area where the homes are very similar to one another, if your home is priced higher than it should be, it will be easily noticed and again, be ruled out quickly.
So when selling your home, price it realistically, stage it well, be aware of the market conditions and make it easy to show. All of these things will help give you the edge in a market with many listings to consider that are in direct competition to yours.
To get a sense of your home's value visit www.LeadingMeSafelyHome.com and request your free CMA or Comparative Market Analysis.
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