Your Home and Your Retirement
Provided By Yahoo! Finance
Many retirees are planning to access home equity, hoping it may make the difference between a comfortable retirement and just getting by. This article considers some of the strategies for tapping home equity, such as moving to a more affordable residence or obtaining a reverse mortgage.
Before You Start:
•Talk with your spouse or partner about using your home to help finance retirement. Are you in agreement?
•Consider whether your plans are realistic. For example, ask yourself whether you could really downsize to a smaller home.
•Begin looking into the cost-of-living implications that would be associated with moving to a different part of the country.
•Check your most recent retirement account statement to determine whether you're already contributing the maximum amount.
Your Home and Your Retirement
Unlike earlier generations of retirees, who paid off first mortgages and retired at the family homestead, today's Baby Boomers are looking to capitalize on home equity to enhance their retirement savings. Popular strategies for tapping home equity include downsizing to a smaller house or condominium, relocating to an area where the cost of living is more affordable, and taking out a reverse mortgage.
Regardless of which strategy you choose, it's important to be realistic about what your house may be worth when you retire. Although housing prices have escalated considerably during the past few years, a variety of factors may cause them to level off or decline at some point in the future. Home equity may value to a diversified portfolio, but relying too much on your house to fund your retirement could work against you if the real estate market in your area cools considerably.
Making a Move
Selling your existing home and relocating to a more affordable house or condominium may be a reasonable option if you have considerable home equity and the shift won't negatively affect your lifestyle. As part of your research, remember to investigate the overall housing costs in your desired area. For example, real estate values and property taxes typically vary considerably by locale, sometimes even within the same state. Additionally, before relocating to a new area, you might want to spend significant time there to make sure it is compatible with your lifestyle and interests.
When calculating your home's sale price as part of the retirement income equation, be sure to use realistic assumptions. Real estate prices have risen at above-average rates in recent years (see table on average annual rise in home prices, below), and there is always the potential that they may level off or even decline in the future. When planning your retirement income, remember the importance of diversification -- owning a portfolio of stocks, bonds, and cash investments in addition to home equity -- to help guard against market swings in any one area, including real estate. Of course, there are no guarantees that a diversified portfolio will protect against overall financial losses, but a diversified portfolio can position you to potentially take advantage of gains in several financial sectors.
Finally, when selling your home, consider that the first $250,000 in capital gains ($500,000 if you sell jointly with a spouse) is not subject to federal taxation if you lived in the house for two years or more.
A Reverse Mortgage: A Tool for Staying Put
Tapping home equity doesn't necessarily require relocating. A reverse mortgage may be a solution if you have significant home equity and a desire to stay in your existing home. With a reverse mortgage, you receive a source of income by borrowing against your home's equity. Payouts are tax free and may be taken as a lump sum, a line of credit, or an annuity-like payment schedule.
To qualify, you and other owners (such as a spouse or partner) must be at least 62 years of age. You must own your home outright or be able to retire an existing mortgage with the money you receive from the reverse mortgage. As long as the reverse mortgage is in effect, you are responsible for maintaining your home, and for paying taxes and insurance. The loan plus accrued interest is due when you die or sell the house.
When evaluating a reverse mortgage, be sure to consider the fees, which may be substantial. You may have to pay a loan origination fee of between 6% and 8% of the value of your home, in addition to servicing fees assessed over the term of the mortgage. Because of the relatively high fees, many experts recommend a reverse mortgage only if you plan to remain in your home for the long term. Also keep in mind that the amount you owe tends to grow over time, as interest (which is usually based on a variable, rather than fixed, rate) accrues on amounts that are gradually paid out. Over time, a reverse mortgage can completely exhaust the value of your home, leaving little if any assets left over for your heirs.
Payout Alternatives
Study payout options associated with a reverse mortgage carefully to determine whether one may work for you.
payout Option Advantages Drawbacks
Lump sum You receive a considerable sum. Interest accrues on the entire amount.
Line of credit You have the flexibility to draw only as much as you need. Fees may outweigh the benefit if you draw only a small amount.
Annuity-like schedule You may receive a source of income for as long as you remain in your home. Payments are not indexed to inflation.
The recent boom in the national housing market may have lulled many Baby Boomers into believing their home equity will be enough to see them through a comfortable retirement. If you're among those who intend to rely on a home's value -- either through downsizing, relocating, or obtaining a reverse mortgage -- make sure that your plans include realistic projections. And remember that maintaining a diversified portfolio of other types of investments can potentially help balance out your overall pool of financial assets.
Summary:
•Strategies for accessing home equity may include selling your house and moving to a smaller residence, relocating to a community where the cost of living is more affordable, or obtaining a reverse mortgage.
•Because real estate values may potentially level off or even decline, it's important not to rely too much on the value of your home to finance your later years. Consider using home equity to supplement a diversified portfolio that includes stocks, bonds, and cash investments.
•Accessing home equity by selling your house may have the greatest appeal if you are able to find alternate housing without significantly compromising your lifestyle.
•A reverse mortgage may work for homeowners who have considerable home equity and want to remain in their current residence. Payout options typically include a lump sum, a line of credit, or an annuity-type schedule of payments.
•When evaluating reverse mortgages, review the fees and overall cost of borrowing (total interest paid over time), which may be considerable.
Checklist:
•Read the fine print before signing any type of reverse mortgage, paying particular attention to details about fees and expenses.
•Reinvigorate your traditional retirement saving initiatives by maximizing contributions to your workplace plans and/or IRAs.
•If a reverse mortgage will make it impossible for you to pass along the full value of your home to an heir or heirs, consider revising your estate plan accordingly.
•Don't base long-term financial plans on the assumption that your home will maintain or surpass its current value.
Do you have more questions about your home and retirement? Give us a call at 972-214-417-4455 or email us at carlossalinas@kw.com "Real Estate Magician"
http://www.realestatemagician.net/
Wednesday, February 9, 2011
Monday, April 26, 2010
GOODBYE, TEXAS STADIUM
Source Dallas Business Journal
Provided By RECON
After almost 40 years as home of the Dallas Cowboys, high school playoff games and countless other events, Texas Stadium is no more.
Thousands of people witnessed the 60-second implosion Sunday morning as Dykon Explosive Demolition leveled the football stadium, the home field of Cowboys legends such as Roger Staubach, Troy Aikman and coach Tom Landry.
The Dallas Cowboys moved from Texas Stadium, built in 1971, to their new $1.3 billion Cowboys Stadium in Arlington last August.
Plans for the 78-acre site are up in the air, but some college students had suggestions. Graduate-level teams from six Texas colleges shared redevelopment ideas at the fifth annual Texas Shoot-Out Real Estate Challenge last week.
Are you interested in homes near the new Cowboys Stadium? Give us a call at 214-417-4455 or email us at carlos@RealEstateMagician.Net
Both Homes and Loans with only one call.
Carlos Salinas "Real Estate Magician"
Provided By RECON
After almost 40 years as home of the Dallas Cowboys, high school playoff games and countless other events, Texas Stadium is no more.
Thousands of people witnessed the 60-second implosion Sunday morning as Dykon Explosive Demolition leveled the football stadium, the home field of Cowboys legends such as Roger Staubach, Troy Aikman and coach Tom Landry.
The Dallas Cowboys moved from Texas Stadium, built in 1971, to their new $1.3 billion Cowboys Stadium in Arlington last August.
Plans for the 78-acre site are up in the air, but some college students had suggestions. Graduate-level teams from six Texas colleges shared redevelopment ideas at the fifth annual Texas Shoot-Out Real Estate Challenge last week.
Are you interested in homes near the new Cowboys Stadium? Give us a call at 214-417-4455 or email us at carlos@RealEstateMagician.Net
Both Homes and Loans with only one call.
Carlos Salinas "Real Estate Magician"
Tuesday, April 13, 2010
Americans Prefer Owning Over Renting
Provided By Realtor Mag
Source Fannie Mae National Housing Survey
Safety and educational quality are among the reasons why 65 percent of Americans would rather own a home than rent one, according to Fannie Mae's national housing survey.
Of those Americans, 43 percent state that safety is a primary reason to buy, and 33 percent say they think schools are better in neighborhoods where most homes are owned by their residents.
However, buyers and renters are more cautious in today’s economic climate than in the past, according to the survey, with 23 percent of renters reporting that they will buy a home but later than they once thought.
A full 70 percent of respondents believe buying a home is one of the safest investments available, but 60 percent think that it will be more difficult for them to secure a mortgage than it was for their parents.
Are you interested in owning a home or getting a home loan? Please contact us at 214-417-4455 or email us at Real Estate Magician .NET
Buying Your First Home
Buying Your First Home
Published By Yahoo Finance
Finding the right first home starts with a price range and a short list of desirable neighborhoods. But there are many other factors you'll need to consider before investing in what may be your biggest asset.
Topics
1.Buying Your First Home
2.How Much Mortgage Can You Afford?
3.Costs of Buying a Home
4.Ongoing Costs
5.Choosing a Neighborhood
6.Finding a Broker
1. Buying Your First Home. Home ownership is the cornerstone of the American Dream. But before you start looking, there are a number of things you need to consider. First, you should determine what your needs are and whether owning your own home will meet those needs. Do you picture yourself mowing the lawn on Saturday, or leaving your urban condo for the beach? The best advice is to look at buying a home as a lifestyle investment, and only secondly as a financial investment.
Even if housing prices don't continue to increase at the torrid pace seen in recent years in many areas, buying a home can be a good financial investment. Making mortgage payments forces you to save, and after 15 to 30 years you will own a substantial asset that can be converted into cash to help fund retirement or a child's education. There are also tax benefits.
Like many other investments, however, real estate prices can fluctuate considerably. If you aren't ready to settle down in one spot for a few years, you probably should defer buying a home until you are. If you are ready to take the plunge, you'll need to determine how much you can spend and where you want to live.
2. How Much Mortgage Can You Afford? Carlos Salinas Mortgage Loan Officer and REALTOR® at RealEstateMagician.net can help YOU with this, just email & ask for a 2 Minute PreApplication. Many mortgages today are being resold in the secondary markets. The Federal National Mortgage Association (Fannie Mae) is a government-sponsored organization that purchases mortgages from lenders and sells them to investors. Mortgages that conform to Fannie Mae's standards may carry lower interest rates or smaller down payments. To qualify, the mortgage borrower needs to meet two ratio requirements that are industry standards.
The housing expense ratio compares basic monthly housing costs to the buyer's gross (before taxes and other deductions) monthly income. Basic costs include monthly mortgage, insurance, and property taxes. Income includes any steady cash flow, including salary, self-employment income, pensions, child support, or alimony payments. For a conventional loan, your monthly housing cost should not exceed 28% of your monthly gross income.
The total obligations to income ratio is the percentage of all income required to service your total monthly payments. Monthly payments on student loans, installment loans, and credit card balances older than 10 months are added to basic housing costs and then divided by gross income. Your total monthly debt payments, including basic housing costs, should not exceed 36%.
Many home buyers choose to arrange financing before shopping for a home and most lenders will "prequalify" you for a certain amount. Prequalification helps you focus on homes you can afford. It also makes you a more attractive buyer and can help you negotiate a lower purchase price. Nothing is more disheartening for buyers or sellers than a deal that falls through due to a lack of financing.
In addition to qualifying for a mortgage, you will probably need a down payment. The 28% to 36% debt ratios assume a 10% down payment. In practice, down payment requirements vary from more than 20% to as low as 0% for some Veterans Administration (VA) loans. Down payments greater than 20% generally buy a better rate. Lowering the down payment increases leverage (the opportunity to make a profit using borrowed money) but also increases monthly payments.
How Much Home Can You Afford?
Carlos Salinas Mortgage Loan Officer and REALTOR® atRealEstateMagician.net can help YOU with this, just email & ask for a 2 Minute PreApplication.
Bob and Janet's combined income is $50,000 a year, or $4,166 a month. Their housing expense ratio of 28% yields a monthly maximum of $1,166 for mortgage, insurance, and taxes ($4,166 x 0.28 = $1,166).
Their total debt ceiling of 36% is $1,583 (4,166 x 0.36 = $1,500). Their monthly debt payments include a $200 car payment, credit card payments of $100, and student loan payments of $200. Subtracting this total of $500 from the $1,500 permitted leaves $1,000 in monthly housing payments.
3. Costs of Buying a Home. Many home buyers are surprised (shocked might be a better word) to find that a down payment is not the only cash requirement. A home inspection can cost $200 or more. Closing costs may include loan origination fees, up-front "points" (prepaid interest), application fees, appraisal fee, survey, title search and title insurance, first month's homeowners insurance, recording fees and attorney's fees. In many locales, transfer taxes are assessed. Finally, adjustments for heating oil or property taxes already paid by the sellers will be included in your final costs. All this will probably add up to be between 3% and 8% of your purchase price.
4. Ongoing Costs. In addition to mortgage payments, there are other costs associated with home ownership. Utilities, heat, property taxes, repairs, insurance, services such as trash or snow removal, landscaping, assessments, and replacement of appliances are the major costs incurred. Make sure you understand how much you are willing and able to spend on such items.
Condominiums may not have the same costs as a house, but they do have association fees. Older homes are often less expensive to buy, but repairs may be greater than those in a newer home. When looking for a home, be sure to check the actual expenses of the previous owners, or expenses for a comparable home in the neighborhood.
5. Choosing a Neighborhood. Before you start looking at homes, look at neighborhoods. Schools and other services play a large part in making a neighborhood attractive. Even if you don't have children, your future buyer may. Crime rates, taxes, transportation, and town services are other things to look at. Finally, learn the local zoning laws. A new pizza shop next door might alter your property's future value. On the other hand, you may want to run a business out of your home.
Look for a neighborhood where prices are increasing. As the prices of the better homes increase, values of the lesser homes may rise as well. If you find a less expensive home in a good neighborhood, make sure you factor in the cost of repairs or upgrades that such a house may need.
6. Finding a Broker. If you are a first-time home buyer, you will probably want to work with a broker. Brokers know the market and can be a valuable source of information concerning the home buying process. Ask lots of questions, but remember that most brokers are working for the seller, and in the end, their primary obligation is to the seller and not to you. An alternative is a so-called buyer's broker. This individual does work for you, and therefore is paid by you. Seller's brokers are paid by the seller.
Make sure that the broker has access to the Multiple Listing Service (MLS). This service lists all the properties for sale by most major brokers across the country. Brokerage commissions average 5% to 7% and are split between the listing broker and the broker that eventually sells the home. Don't be surprised if your broker is eager to sell you their own listing since they would then earn the entire commission.
Home Buying Costs
Down Payment 0% - 20% of purchase price
Home Inspection $200 - $500
Points $1,000 and up for 1% - 3%
Adjustments 3% - 8% of purchase price
Once you've determined a price range and location, you're ready to look at individual homes. Call Carlos Salinas Mortgage Loan Officer and REALTOR® at RealEstateMagician.net can help YOU find your new home.
Remember that much of a home's value is derived from the values of those surrounding it. Since the average residency in a house is seven years, consider the qualities that will be attractive to future buyers as well as those attractive to you.
Although it can be difficult, try to remember that you will probably want to sell this home someday. The more research you do today, the better your decision will look in the years to come.
Summary
Buying a home can mean building significant value through the years.
Prequalifying with your lender is a good way to determine how much house you can afford.
You will need cash for a down payment and closing costs. Generally speaking, the higher the down payment, the lower the interest rate and monthly mortgage payment.
In addition to your mortgage payments, you will also need to consider the other costs of home ownership.
Schools, taxes, services, crime rates, transportation, and zoning are important considerations when selecting a neighborhood.
Brokers usually represent the seller, but they can be valuable sources of information for buyers as well. A broker that belongs to the Multiple Listing Service will be able to offer a wider variety of homes to choose from.
Remember to consider resalability when buying your home.
Are you a first time home buyer? Carlos Salinas Mortgage Loan Officer and REALTOR® at RealEstateMagician.net can help YOU through every step of the way. So, don't wait call or email me now.
Published By Yahoo Finance
Finding the right first home starts with a price range and a short list of desirable neighborhoods. But there are many other factors you'll need to consider before investing in what may be your biggest asset.
Topics
1.Buying Your First Home
2.How Much Mortgage Can You Afford?
3.Costs of Buying a Home
4.Ongoing Costs
5.Choosing a Neighborhood
6.Finding a Broker
1. Buying Your First Home. Home ownership is the cornerstone of the American Dream. But before you start looking, there are a number of things you need to consider. First, you should determine what your needs are and whether owning your own home will meet those needs. Do you picture yourself mowing the lawn on Saturday, or leaving your urban condo for the beach? The best advice is to look at buying a home as a lifestyle investment, and only secondly as a financial investment.
Even if housing prices don't continue to increase at the torrid pace seen in recent years in many areas, buying a home can be a good financial investment. Making mortgage payments forces you to save, and after 15 to 30 years you will own a substantial asset that can be converted into cash to help fund retirement or a child's education. There are also tax benefits.
Like many other investments, however, real estate prices can fluctuate considerably. If you aren't ready to settle down in one spot for a few years, you probably should defer buying a home until you are. If you are ready to take the plunge, you'll need to determine how much you can spend and where you want to live.
2. How Much Mortgage Can You Afford? Carlos Salinas Mortgage Loan Officer and REALTOR® at RealEstateMagician.net can help YOU with this, just email & ask for a 2 Minute PreApplication. Many mortgages today are being resold in the secondary markets. The Federal National Mortgage Association (Fannie Mae) is a government-sponsored organization that purchases mortgages from lenders and sells them to investors. Mortgages that conform to Fannie Mae's standards may carry lower interest rates or smaller down payments. To qualify, the mortgage borrower needs to meet two ratio requirements that are industry standards.
The housing expense ratio compares basic monthly housing costs to the buyer's gross (before taxes and other deductions) monthly income. Basic costs include monthly mortgage, insurance, and property taxes. Income includes any steady cash flow, including salary, self-employment income, pensions, child support, or alimony payments. For a conventional loan, your monthly housing cost should not exceed 28% of your monthly gross income.
The total obligations to income ratio is the percentage of all income required to service your total monthly payments. Monthly payments on student loans, installment loans, and credit card balances older than 10 months are added to basic housing costs and then divided by gross income. Your total monthly debt payments, including basic housing costs, should not exceed 36%.
Many home buyers choose to arrange financing before shopping for a home and most lenders will "prequalify" you for a certain amount. Prequalification helps you focus on homes you can afford. It also makes you a more attractive buyer and can help you negotiate a lower purchase price. Nothing is more disheartening for buyers or sellers than a deal that falls through due to a lack of financing.
In addition to qualifying for a mortgage, you will probably need a down payment. The 28% to 36% debt ratios assume a 10% down payment. In practice, down payment requirements vary from more than 20% to as low as 0% for some Veterans Administration (VA) loans. Down payments greater than 20% generally buy a better rate. Lowering the down payment increases leverage (the opportunity to make a profit using borrowed money) but also increases monthly payments.
How Much Home Can You Afford?
Carlos Salinas Mortgage Loan Officer and REALTOR® atRealEstateMagician.net can help YOU with this, just email & ask for a 2 Minute PreApplication.
Bob and Janet's combined income is $50,000 a year, or $4,166 a month. Their housing expense ratio of 28% yields a monthly maximum of $1,166 for mortgage, insurance, and taxes ($4,166 x 0.28 = $1,166).
Their total debt ceiling of 36% is $1,583 (4,166 x 0.36 = $1,500). Their monthly debt payments include a $200 car payment, credit card payments of $100, and student loan payments of $200. Subtracting this total of $500 from the $1,500 permitted leaves $1,000 in monthly housing payments.
3. Costs of Buying a Home. Many home buyers are surprised (shocked might be a better word) to find that a down payment is not the only cash requirement. A home inspection can cost $200 or more. Closing costs may include loan origination fees, up-front "points" (prepaid interest), application fees, appraisal fee, survey, title search and title insurance, first month's homeowners insurance, recording fees and attorney's fees. In many locales, transfer taxes are assessed. Finally, adjustments for heating oil or property taxes already paid by the sellers will be included in your final costs. All this will probably add up to be between 3% and 8% of your purchase price.
4. Ongoing Costs. In addition to mortgage payments, there are other costs associated with home ownership. Utilities, heat, property taxes, repairs, insurance, services such as trash or snow removal, landscaping, assessments, and replacement of appliances are the major costs incurred. Make sure you understand how much you are willing and able to spend on such items.
Condominiums may not have the same costs as a house, but they do have association fees. Older homes are often less expensive to buy, but repairs may be greater than those in a newer home. When looking for a home, be sure to check the actual expenses of the previous owners, or expenses for a comparable home in the neighborhood.
5. Choosing a Neighborhood. Before you start looking at homes, look at neighborhoods. Schools and other services play a large part in making a neighborhood attractive. Even if you don't have children, your future buyer may. Crime rates, taxes, transportation, and town services are other things to look at. Finally, learn the local zoning laws. A new pizza shop next door might alter your property's future value. On the other hand, you may want to run a business out of your home.
Look for a neighborhood where prices are increasing. As the prices of the better homes increase, values of the lesser homes may rise as well. If you find a less expensive home in a good neighborhood, make sure you factor in the cost of repairs or upgrades that such a house may need.
6. Finding a Broker. If you are a first-time home buyer, you will probably want to work with a broker. Brokers know the market and can be a valuable source of information concerning the home buying process. Ask lots of questions, but remember that most brokers are working for the seller, and in the end, their primary obligation is to the seller and not to you. An alternative is a so-called buyer's broker. This individual does work for you, and therefore is paid by you. Seller's brokers are paid by the seller.
Make sure that the broker has access to the Multiple Listing Service (MLS). This service lists all the properties for sale by most major brokers across the country. Brokerage commissions average 5% to 7% and are split between the listing broker and the broker that eventually sells the home. Don't be surprised if your broker is eager to sell you their own listing since they would then earn the entire commission.
Home Buying Costs
Down Payment 0% - 20% of purchase price
Home Inspection $200 - $500
Points $1,000 and up for 1% - 3%
Adjustments 3% - 8% of purchase price
Once you've determined a price range and location, you're ready to look at individual homes. Call Carlos Salinas Mortgage Loan Officer and REALTOR® at RealEstateMagician.net can help YOU find your new home.
Remember that much of a home's value is derived from the values of those surrounding it. Since the average residency in a house is seven years, consider the qualities that will be attractive to future buyers as well as those attractive to you.
Although it can be difficult, try to remember that you will probably want to sell this home someday. The more research you do today, the better your decision will look in the years to come.
Summary
Buying a home can mean building significant value through the years.
Prequalifying with your lender is a good way to determine how much house you can afford.
You will need cash for a down payment and closing costs. Generally speaking, the higher the down payment, the lower the interest rate and monthly mortgage payment.
In addition to your mortgage payments, you will also need to consider the other costs of home ownership.
Schools, taxes, services, crime rates, transportation, and zoning are important considerations when selecting a neighborhood.
Brokers usually represent the seller, but they can be valuable sources of information for buyers as well. A broker that belongs to the Multiple Listing Service will be able to offer a wider variety of homes to choose from.
Remember to consider resalability when buying your home.
Are you a first time home buyer? Carlos Salinas Mortgage Loan Officer and REALTOR® at RealEstateMagician.net can help YOU through every step of the way. So, don't wait call or email me now.
Sunday, March 14, 2010
Preparing for An Open House
Preparing for An Open House
1. Out of sight, out of mind! Hide away anything you would not see in a "model"home. This is especially true regarding trash! Remember to empty all trash bins and remove them from sight. Keep in mind that potential buyers look at everything! A clean property equates a well maintained property that will get offers!
2. Never underestimate the sense of smell. It is important that your property passes the "smell test". This may be accomplished by using many of the various room fresheners available today. I recommend a long lasting product and prefer the plug-in style. Consider placing one in each room. Place in an inconspicuous area that is not easily noticed by potential buyers.
3. Do you hear what I hear? This is especially important in creating an atmosphere of peacefulness. You do not want potential buyers to hear the furnace turn on or listen to outdoor traffic. Consider playing music that will not offend most people. Rock and Roll is dead as far as your open house goes! We suggest playing soft background music that contains no lyrics.
4. Potential buyers will be touching surfaces in your property. Not intentionally, but because they have to! Be certain that all banisters, handrails, doorknobs and faucets sparkle! You do not want people to "feel" that your home is anything but squeaky clean!
5. I like to suggest leaving a decorative treat filled dish out for potential buyers. You can fill it with various individually wrapped candies. I know it sounds corny but EVERYONE loves chocolate and it will make potential buyers remember and feelgood about your property!
Having appealed to the five senses some other important tips...
CLEAN, CLEAN, CLEAN! This cannot be stressed enough and I mean EVERYTHING! Buyers will look inside your oven, refrigerator, microwave, dishwasher and everywhere else I might have forgotten to mention. Consider your open house a home inspection performed by an Army drill sergeant! Nothing will be overlooked!
Make sure the front door is cleaned or freshly painted. The entry is clean & clutter free. Remember as the Real Estate Agent is opening the door the buyers are just standing there looking around at everything.
Now if I have not completely terrified you, here is some more advice...
Check for cobwebs that seemingly come from nowhere.
Wash all light fixtures so they sparkle like new.
Clear any signs of clutter and hide away all personal items.
Consider shampooing the carpets for a fresh smelling clean look.
Organize and clear clutter from every closet and cabinet... Buyers ALWAYS look inside to determine storage space.
Wash windows inside and out. (Pay close attention to window sills and frames.) Buyers will typically inspect every window. Ouch!
Place fresh flowers close to the entrance door for a warm welcome.
Finally, you must leave the house otherwise the buyers may not feel comfortable opening the closets, cabinets, dishwasher ect., they must feel as if this will be their home.
Go out for a nice meal and try to relax during your open house.
Carlos Salinas
"Real Estate Magician"
1. Out of sight, out of mind! Hide away anything you would not see in a "model"home. This is especially true regarding trash! Remember to empty all trash bins and remove them from sight. Keep in mind that potential buyers look at everything! A clean property equates a well maintained property that will get offers!
2. Never underestimate the sense of smell. It is important that your property passes the "smell test". This may be accomplished by using many of the various room fresheners available today. I recommend a long lasting product and prefer the plug-in style. Consider placing one in each room. Place in an inconspicuous area that is not easily noticed by potential buyers.
3. Do you hear what I hear? This is especially important in creating an atmosphere of peacefulness. You do not want potential buyers to hear the furnace turn on or listen to outdoor traffic. Consider playing music that will not offend most people. Rock and Roll is dead as far as your open house goes! We suggest playing soft background music that contains no lyrics.
4. Potential buyers will be touching surfaces in your property. Not intentionally, but because they have to! Be certain that all banisters, handrails, doorknobs and faucets sparkle! You do not want people to "feel" that your home is anything but squeaky clean!
5. I like to suggest leaving a decorative treat filled dish out for potential buyers. You can fill it with various individually wrapped candies. I know it sounds corny but EVERYONE loves chocolate and it will make potential buyers remember and feelgood about your property!
Having appealed to the five senses some other important tips...
CLEAN, CLEAN, CLEAN! This cannot be stressed enough and I mean EVERYTHING! Buyers will look inside your oven, refrigerator, microwave, dishwasher and everywhere else I might have forgotten to mention. Consider your open house a home inspection performed by an Army drill sergeant! Nothing will be overlooked!
Make sure the front door is cleaned or freshly painted. The entry is clean & clutter free. Remember as the Real Estate Agent is opening the door the buyers are just standing there looking around at everything.
Now if I have not completely terrified you, here is some more advice...
Check for cobwebs that seemingly come from nowhere.
Wash all light fixtures so they sparkle like new.
Clear any signs of clutter and hide away all personal items.
Consider shampooing the carpets for a fresh smelling clean look.
Organize and clear clutter from every closet and cabinet... Buyers ALWAYS look inside to determine storage space.
Wash windows inside and out. (Pay close attention to window sills and frames.) Buyers will typically inspect every window. Ouch!
Place fresh flowers close to the entrance door for a warm welcome.
Finally, you must leave the house otherwise the buyers may not feel comfortable opening the closets, cabinets, dishwasher ect., they must feel as if this will be their home.
Go out for a nice meal and try to relax during your open house.
Carlos Salinas
"Real Estate Magician"
Thursday, March 11, 2010
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