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Don't Let Your Home Get Left Behind

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | April 10th, 2013

Real estate experts call them "leftover houses." They're available properties in well-regarded neighborhoods -- But while other homes fly off the market, they sit unsold, seemingly indefinitely.

"These oddballs are sitting because they don't speak to any buyers," says Mark Nash, a long-time real estate broker and the author of "1001 Tips for Buying & Selling a Home."

Sometimes the reason a home languishes is due to what real estate people refer to as an "incurable problem."

"Maybe your home is a white elephant because it's a contemporary in a sea of traditional houses. Or maybe it backs to a McDonald's," Nash says.

But other more common explanations are that the property was overpriced when it hit the market or that it badly needs to be cleaned, repaired or redecorated.

A strong listing agent will help clients by providing an itemized list of repairs and upgrades needed to make a property saleable. And if they're wise, the home's owners will follow this guidance, without taking personal offense.

Unfortunately, some homeowners are oblivious to the reasons their property isn't selling, and their listing agent may be too tactful to outline all the corrections needed.

"In its own way, the market screams out reasons why a house doesn't sell. But the owners just aren't listening," Nash says.

Here are a few pointers for home sellers:

-- Look into hiring a "stager" to make your place more appealing.

Even a house that's been well kept in terms of the basics can be held back because of an outdated decor or excessive clutter.

The cost of hiring a professional stager for a full level of services can run $500 or more -- a stretch for sellers struggling to score a low-cost sale. But the expenditure could be well worth it.

"Stagers can warm up a house and make it feel a whole lot better to visitors," Nash says.

He says one way to find a skillful stager is through relatives, work associates or friends who've recently sold a home. Another way is by visiting the website of the Real Estate Staging Association (www.realestatestagingassociation.com).

Look for stagers in your area and -- before giving them a call -- be sure to check out their websites for examples of their work.

-- Plan a home-selling party with friends.

After it's gone unsold for a lengthy period, the excitement that may have accompanied your home's debut has likely drained away.

"Bad house karma sets in and you have to reverse the situation fast," Nash says.

To do so, he says one idea is to call in friends for a home-selling party.

"Your friends will probably tell you, in a way that's not insulting, the main reasons your home isn't selling and what to do about it," Nash says.

"It's a really strange thing how people can sometimes get the buzz going again about their house. Then all of a sudden an offer -- or maybe even two -- come in unexpectedly," Nash says.

-- Update your online photos.

Ashley Richardson, a real estate agent affiliated with the Council of Residential Specialists (www.crs.com), says it's critical for all home sellers to have very good photos of their property on the Internet.

"Nowadays, buyers look at photos of 15 homes for every one they visit in person," Richardson says.

One advantage of using fresh pictures of your property is that you can replace out-of-season photos with those that look current.

"Don't use photos taken with a cellphone. Your listing agent should have a top-quality camera and the skills to take pictures," Richardson says.

-- Tell your listing agent to burn up the phone lines with calls about your home.

In these days of fussy purchasers, the well-honed marketing skills of an experienced listing agent are more important than ever.

One key marketing skill your listing agent can use is to "talk up" your place to other real estate agents with home-buying clients of their own, says Lisa Atkinson, an agent whose specialties include short sales and marketing foreclosed properties.

"When I list a house, I push hard to bring it to the attention of other agents. The more agents who know about it, the more showings," she says.

Many listing agents make calls to promote a property when it first goes on the market. But Atkinson says they can also use networking techniques to rekindle interest in a place that's been sitting unsold for a lengthy period.

-- Give your home the beauty of blooms.

It's a lovely touch to have fresh-cut flowers on display throughout your home's interior. But Michelle Minch, who heads a home staging firm called Moving Mountains Design, says the need to repeatedly replace cut flowers for the length of the showing period is unaffordable for many sellers.

One less pricey option -- especially easy during the summer months -- is to display flowering, potted plants indoors and also to install such blooms in your outdoor gardens, or in front of your place.

"Potted orchids are a very elegant indoor choice, and you can now find them reasonably priced in grocery stores," Minch says.

Why do bountiful blooms help sell a home that's starved for attention? Minch says that for prospective buyers, flowers hint at happier, more gracious living.

"When you're selling a home, you're selling an aspiration for a better lifestyle. Everybody likes to think that once they buy that next home they'll be living like Martha Stewart," Minch says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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Tips for Young Buyers in a Crowded Market

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | April 3rd, 2013

Though a real estate recovery is underway, home prices still aren't back to their pre-2007 levels in many neighborhoods. Even so, many young families worry it's already too late to buy that starter home in a nice suburb with good schools.

"Buyers hung around waiting for the right moment to get into the market. But that moment seemed to come and go in a heartbeat," says Karl Case, a home values expert and senior fellow at Harvard University's Joint Center for Housing Studies.

Not only are prices on the rise in many desirable areas, inventories are also tight. These dual factors make it doubly frustrating for frugal buyers who now must compete with others for coveted properties.

Along with rising housing prices, young families are already trying to cope with high living costs for other basics, from child care to food and gas. But Case says it's not too late for most young homebuyers to make a good property purchase.

Case says it's pointless for would-be homebuyers who missed the bottom of the market in their chosen area to focus on the past.

Rather than obsessing about not having bought at an earlier point in the cycle, Case advises first-time buyers to move forward and think strategically. Here are a few pointers:

-- Consider an "overpriced" home.

Young homebuyers (and even veteran buyers) can overlook an important fact about real estate: You can sometimes get the best deals on homes that were significantly overpriced at the outset.

Barry Nystedt, a real estate broker and former president of the National Association of Exclusive Buyer Agents (www.naeba.org), says the secret to shopping among overpriced properties is to be the first to know when price cuts occur.

"Sometimes people overprice because of ego, but mostly they do so because of ignorance of the market. Eventually, after their property has been sitting unsold for a lengthy period, they get worn down. That's when they drop their price and start to negotiate seriously," Nystedt says.

"Through the years, I've gotten some very good deals for clients after price reductions have occurred," Nystedt recalls.

-- Include out-of-style properties in your search.

First-time buyers may wish to consider a category of properties a notch above fixer-uppers: what agents call "cosmetically challenged" properties. These homes are well kept and the fundamentals, including electricity and plumbing, all work. But their owners have neglected the interior decor. Because of that, they're often sold below market value.

As Nystedt notes, many longtime owners of solid family houses never redo their tired, fraying, out-of-date interiors.

"But if the house has good bones and you get a favorable price on it, it will pay you to strip that old wallpaper, pull up the carpet and refinish the hardwood floors beneath," Nystedt says.

But he cautions that homebuyers should be careful to distinguish between outdated homes and those with serious underlying issues.

He urges anyone buying a home, especially money-conscious young families, to make their purchase conditional on a thorough home inspection to ensure the place doesn't have fundamental flaws such as structural problems. These are much more costly to fix than a dated living room.

-- Search for highly motivated sellers.

For home-sellers, time is money. People who must move quickly, perhaps due to job relocation or a marital breakup, are typically more willing to let their property go for a reasonable price than those who can hold out.

You needn't do anything unethical to find out what motivates the owners of a home that interests you. Often, the listing agent will answer direct questions about the sellers' motivations.

"The real estate business is based on relationships. Agents talk to each other, and your agent might hear from the listing agent that the owners of a property you like are eager for an immediate offer," Nystedt says.

He says owners who've accepted an out-of-state job transfer are usually the most willing to negotiate, particularly if their property is already vacant or has been taken over by a relocation company.

"'Relo' companies aren't emotional sellers. They'll often cut to the chase to sell the property as soon as possible," Nystedt says.

-- Exercise caution about taking a non-traditional mortgage.

It's no secret that with mortgage rates hovering around historic lows, most homebuyers are opting for a traditional 30-year fixed-rate mortgage. Still, some first-time purchasers facing an affordability pinch are now considering non-traditional mortgage alternatives, according to Dale Robyn Siegel, a veteran mortgage broker who heads her own firm.

Siegel, author of "The New Rules for Mortgages," says one budget-stretching alternative to a fixed-rate loan is a "hybrid" that guarantees a constant interest rate for 10 years before converting into an adjustable rate mortgage that changes annually.

"I wouldn't go with any hybrid that converts to an ARM after just five to seven years. Interest rates are bound to rise in the next few years, and you may wind up staying in your house longer than expected. The reality is that life could get in the way of your best-laid plans," Siegel says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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Get the Best Agent for Your Sale

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | March 27th, 2013

In many neighborhoods, the backlog of foreclosed properties is now clearing, and home-selling activity is picking up dramatically. Meanwhile, buyers who've been waiting on the sidelines for several years are finally jumping in the fray.

"We're hearing about appreciation for the first time since 2008. That's causing a lot of people to hurry up and make a purchase before they're priced out of the market," says Karen Rittenhouse, author of "The Essential Handbook for Selling a Home."

Rittenhouse, an investor who heads her own realty firm, says buyer eagerness is prompting more wannabe sellers to plan a springtime sale this year. That, in turn, means leading real estate agents are juggling more listings.

But Rittenhouse urges sellers to exercise extra caution when selecting an agent during this busy spring season, to make doubly sure their listing commands the personal attention it deserves.

"You need to ask for referrals, check references and interview every agent you're considering. Like hiring a cancer specialist, you don't want to just pick someone out of the phone book," she says.

Many successful agents hire assistants to handle much of their routine work, and Rittenhouse doesn't necessarily disapprove of this practice. But she says it's important that your primary agent handle such core functions as negotiating on your behalf when an offer comes in.

Eric Tyson, a personal finance expert and co-author of "House Selling for Dummies," says it isn't always easy to determine in advance whether an agent will give your listing the attention it deserves.

Here are a few pointers for home sellers:

-- Review a potential listing agent's track record.

Maybe the agent you're thinking of hiring is a superstar, having won numerous awards for sales volume. Even so, this could be the wrong one for you, Tyson says.

"Just because the agent is a big producer in sales volume doesn't mean (he or she has) expertise selling in your specific area or your type of house," he says.

Tyson and his co-author of "House Selling for Dummies," Ray Brown, urge would-be sellers to get an "activity list" from any agent they're considering. This should itemize all sales closed in the previous 12 months and show the property locations, as well as list and sale prices.

"You can't beat this raw data when you're sizing up an agent," says Tyson, who says an activity list is more revealing than all the awards an agent has won in the past. That's because it tells you how the agent is now performing on a day-to-day basis.

Agents don't just specialize in particular areas, they also specialize in certain price categories, and you should find someone whose focus aligns with your needs.

-- Ask the agents you interview about their vacation plans.

Obviously, agents like to pull away for vacations from time to time. But real estate experts caution against hiring one who plans to head for vacation during the early weeks of your listing period. That could hinder your sale at the time when buyer excitement about your place is high.

Often agents rely on backups when they're away. But Tyson says this is a poor option for clients, especially if the agent is gone for more than a couple of days during the period when offers are most likely to come in.

He says it's unreasonable to ask agents to forecast their travel plans a full year ahead. But a couple of months in advance, it's fair to ask about any lengthy absence that will occur shortly after your property goes on the market.

-- Seek out a responsive listing agent.

Starting the day that your property goes up for sale, you need to start getting a regular stream of feedback from your listing agent.

For example, if your agent stages an open house for real estate professionals in the area -- known as a "broker's open" -- you'll want to receive their comments about the price and condition of your home. Also, you'll want timely feedback from potential buyers who come through your place for showings.

Why is timely feedback essential to a successful sale? Because it allows you to correct course quickly. For instance, immediate feedback that your home is overpriced would let you adjust your price before it's stigmatized.

Your listing agent should be the one giving you feedback on a regular basis. To ensure this happens, you need an agent who is meticulous about collecting comments and passing them on.

You can increase your chances of finding a conscientious communicator by asking the references that your agent gives you whether they got regular feedback. Plus, you can insist that your listing agreement specify how often, and whether by phone, email or text, your agent will contact you.

"When it comes to selling your home, good communication with your listing agent isn't a luxury. It's crucial," Tyson says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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