Assist2Sell

In today's real estate climate, you want to be sure to take all the necessary steps to squeeze every possible penny out of the sale of your home. Small oversights or missteps can be costly when it comes to your bottom line. However, there are some common mistakes that are easily avoidable if you listen to the experience and advice of your real estate representative.

One error that can cost you is to put your home on the market before it is truly ready for presentation. Image is everything, so get all the cleaning, painting, patching, and lawn care done well in advance of your first showing.

Another costly stumbling block involves your initial listing price. Remember that you control the asking price, but not the selling price - that is finally determined by the buyers and what the market will bear. Try to detach yourself emotionally from what you want to net, and price your home aggressively against your competition, right from the beginning.

Emotional attachment can keep you from perceiving and presenting your home as what it now is, a commodity. Present it, market it and price it as you would any new product on the market. Your agent will make sure it gets exposure to the right demographic, and will help you avoid costly errors along the way to a successful closing.

Michael Sinton, CRB, CRS, SFR, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, SFR, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at msinton@assist2sell.com or on the web at www.WeSellCentralNJ.com.

Applying for a home loan today sure isn't what it used to be. Buyers who would have qualified just a year or two ago are now facing rejection, but all hope is not yet lost. If you find a home you love offered by motivated sellers, your real estate representative may be able to negotiate a lease-to-own option.

Usually, a portion of the monthly rent paid goes into escrow, where it accumulates for the eventual downpayment. It's a fairly painless way to save up money so you can get the home you want now, even if you can't put enough down to qualify for financing. Within an agreed amount of time, usually three to five years, you will have then saved enough to secure a loan and complete your purchase.

Simply paying rent is like throwing your money away, but a rent-to-own option actually helps you build equity while you’re making your monthly payments (like a mortgage!). Many sellers find this arrangement attractive too, because it generates regular income for them in a still recovering housing market.

You might be wondering why a real estate agent would even bother to offer a lease-to-own option instead of an outright purchase, but in these cases, the agent is often paid a rental commission, and then a sales commission once the transaction has completely closed with a purchase.

Michael Sinton, CRB, CRS, SFR, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, SFR, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at msinton@assist2sell.com or on the web at www.WeSellCentralNJ.com.

Michael Sinton with Assist-2-Sell Realty Brokerage Group has earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS® offers the SFR certification to REALTORS® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.

According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures. For many real estate professionals, short sales and foreclosures are the new “traditional” transaction. REALTORS® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.

“As leading advocates for homeownership, REALTORS® believe that any family that loses its home to foreclosure is one family too many, but unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale results,” said 2009 NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Foreclosures and short sales can offer opportunities for home buyers and benefit the larger community, as well, but it’s extremely important to have the help of a real estate professional like a REALTOR® who has earned the SFR certification for these kinds of purchases.”

The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS® stay current on national and state-specific information as the market for these distressed properties evolves.

For more information, contact Michael Sinton, CRB, CRS, SFR, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at msinton@assist2sell.com or on the web at www.WeSellCentralNJ.com.

You may be hearing that things are improving in the residential real estate market, and while that is true, not every area is experiencing the euphoria yet. Even where sales are making gains, it often still depends on the ranges of listing prices - bargain foreclosures, mid-range homes, or high-end properties.

My last two columns addressed the approaches that buyers and sellers should take when the transaction involves homes in the first two categories, but luxury listings are a different story. Between the economy and the credit crunch, this top 10% of listings is suffering, largely because lenders aren't committing to financing such large loans.

As high-end prices will probably still drop, buyers who do qualify for financing have more power in negotiating these sales. However, seek loan pre-approval before you make any offers. Jumbo loans require larger downpayments at slightly higher rates, and qualification takes time.

As the seller of a luxury home, you may have to bite the bullet and undercut your competition, if you're truly committed to making a sale. Use your agent's Competitive Market Analysis to make your pricing decision, and if you can, offer to finance the deal yourself.

The painful truth in this high-end market is that recovery will take longer, so you shouldn't hesitate to set a lower price and offer other concessions to make your sale happen.

Michael Sinton, CRB, CRS, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at msinton@assist2sell.com or on the web at www.WeSellCentralNJ.com.

My last column discussed how real estate is beginning to recover, although not everywhere yet. Whether you're buying or selling, you need to be aware of local conditions, and adjust your strategy according to the value of your home.

We've already covered a couple tips for the least expensive homes on the market, and now we'll look at the middle tier of properties. While these listings are seeing more activity than luxury homes, demand is still soft compared to the often bargain "distressed" properties on the market.

Buyers are facing some difficulty in trading up, because their equity has taken a hit over the last few years. As a buyer, it’s best to list your current home for sale and get it under contract before making an offer on the home you want. When you’re ready, reason dictates that you're safe offering 10% under the asking price in a still lukewarm market.

As a seller in the mid-price range, you'll need to make your listing stand out from the competition. Forget about incremental price drops and go for a big cut, which will draw the most attention. Or offer incentives like paying closing costs or a decorating allowance.

If the home you're selling or want to buy is in the luxury range, you'll want to read my next column for some tips in that market.

Michael Sinton, CRB, CRS, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at msinton@assist2sell.com or on the web at www.WeSellCentralNJ.com.

The signals are out there: home sales are picking up and prices are slowly ascending. However, recovery isn't obvious everywhere yet. Most markets are still seeing the cheapest homes selling fastest, while mid-range homes are taking longer, and upper-end properties are languishing.

Whether buying or selling, your best strategy in this dynamic marketplace depends on which tier your property sits. This column will begin by offering advice for that bottom tier of the most affordable homes. My next column will discuss the mid-range market, and then finally we'll get around to those most expensive properties at the top.

Most of the two million recent foreclosures have made up the bulk of the least expensive homes on the market. Bargain prices and a federal tax credit have lured investors and first-time buyers into the fray, increasing sales of $100-$250K homes by 9% over the last year. Buyers should act quickly and submit their offer with due haste. If your offer isn't accepted, keep checking back, because deals commonly fall through.

While it's hard to compete against foreclosures in the pricing category, they’re often in dire need of repairs. Sellers can increase their odds of success by offering their home in "model condition" at a fair price. Whether you’re a buyer or a seller, watch this blog for more advice on making your sale or purchase work.

Michael Sinton, CRB, CRS, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at msinton@assist2sell.com or on the web at www.WeSellCentralNJ.com.

It’s probably no surprise that homeowners who have faced the ordeal of foreclosure feel a certain measure of shame or guilt about their experience. Whether or not those feelings are warranted, it's hard to survive the process completely unscathed.

What is surprising is the recent development of "buyer's guilt." Some who are fortunate enough to afford to take advantage of a low-priced foreclosure offering are suffering some degree of remorse about the transaction.

Whether it's because they got a deal that none of their friends or family did, or whether they just feel badly about someone else's unhappy situation, the emotions are real, but should be approached in a different way.

These buyers are not necessarily capitalizing off someone else's misfortune, but actually helping by removing a distressed property from the market and maintaining property values. It's actually good for the market and the local economy for buyers to take advantage of these bargains.

If you have some doubt about buying a foreclosure, you can ease your concerns and do some good for others. When you make your move, why not make a donation of household goods instead of packing them in boxes? Certainly a local shelter or charitable organization like the Salvation Army can improve the lives of others with your kindness, and put you in a great frame of mind about your move!

Michael Sinton, CRB, CRS, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at msinton@assist2sell.com or on the web at www.WeSellCentralNJ.com.

Although less than ideal, sellers are seeing more "contingency" contracts, wherein the buyers make their offer contingent upon being able to sell their own home first to complete the purchase. If the buyers aren’t successful, their Offer To Purchase becomes null and void, potentially leaving the sellers at Square One.

A compromise has developed, called a "kick-out clause," which is wording included in the contract that allows the sellers to continue marketing their home, even while under contract. If the sellers receive another offer, the buyers are granted a “kick-out” period - usually 72 hours - to respond by removing their sell-first contingency or by securing financing and completing the purchase.

Unfortunately, the chances are that most buyers who must sell first likely won't qualify for another loan on the new property. If the buyers fail on both counts - selling and financing - then the sellers have the right to accept another offer from qualified buyers.

While this might seem to put the buyers at a disadvantage, the sellers must have some sort of protection against an offer that could tie up their listing indefinitely and perhaps never be consummated.

Consider including language in the contract that also requires the buyers to begin aggressively marketing their own home within a specified period. If the buyers don't leap to action, the contract can be voided.

Michael Sinton, CRB, CRS, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at msinton@assist2sell.com or on the web at www.WeSellCentralNJ.com.

Phew! After four years of declining home sales, the numbers appear to be finally turning back upward, with closed sales and pending contracts at above-normal increases. In particular, first-time buyers helped buoy the market by taking advantage of low prices and interest rates, as well as the $8,000 tax credit offered by the federal government.

At least for now, home prices remain attractively low, and mortgage payments as they relate to income are very comfortable. All the information seems to point to the fact that home prices have actually overcorrected downward. What does that mean? It indicates that many markets may experience a price "snap back," with values increasing a lot more than the historical average of 4% appreciation per year.

Some factors may continue to make buyers cautious, mostly declines in retirement savings and a lukewarm economic recovery with unemployment hovering around 10% nationally. Now is not the time to hesitate, however, as mortgage interest rates are expected to rise in 2010.

We can expect the momentum of home sales to continue, especially with the extension of the tax credit through April and the fact that qualification is no longer limited to just first-time buyers. Prices and interest rates will rise this year, so buyer confidence should be at an all-time high. The pressure cooker of pent-up demand is about to blow its top!

Michael Sinton, CRB, CRS, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at msinton@assist2sell.com or on the web at www.WeSellCentralNJ.com.

Selling your home in anything other than an active market can seem challenging, but what do you do when yours is only one of many homes in your neighborhood with For Sale signs? Surprisingly, there are actually some advantages to marketing your home in this situation.

More buyers are drawn to neighborhoods where they can preview more homes at once. More buyers means more opportunities for your home to be seen and to attract an offer, so make your listing stand out against your competition.

Price your home aggressively after reviewing the comparable sales figures provided by your real estate representative. Don't give your neighbors the advantage of looking like a bargain compared to your listing - take it yourself and show buyers what a great value you're offering. If you're competing against foreclosure listings, having your home in "move in" condition helps, because foreclosures often need lots of repairs.

With this much activity in the neighborhood, make sure that your home is available for showing on literally a moment's notice. Buyers who come to look at other listings may spot yours and want to see it right away to make comparisons. Be prepared for "impulse" prospects with good housekeeping and an escape plan for unexpected showings.

Finally, don't worry if your neighbor sells first - that just makes for less competition in your market!

Michael Sinton, CRB, CRS, e-Pro
Broker/Salesperson

For more information, contact Michael Sinton, CRB, CRS, e-Pro, Broker/Salesperson, Assist-2-Sell, America's leading discount real estate company, directly at 732-364-7434, via email at msinton@assist2sell.com or on the web at www.WeSellCentralNJ.com.