With so many potential buyers viewing property on the Internet, first impressions are essential. If your house doesn't stand out the next listing is only a click away. A great exterior will not only stop a surfer, it will get a drive-by buyer through your front door. Don't underestimate the power of curb appeal! The front of your house is its calling card, and it's up to you to make sure it's giving the right number.
First take care of the obvious: Poor exterior maintenance will have potential buyers wondering what else you didn't keep up. Clean moss off the roof and plants out of gutters; wash the windows and pressure wash dirty decks or siding. Clear weeds growing from the front walk. Take care of the details. If your driveway has faded, it's time to re-seal it. Fill the cracks in your sidewalk. Trim back unruly bushes, mow the lawn and add mulch to tidy up garden beds. Put away tools and other yard clutter - the property should look well taken care of.
Spruce up your front entrance. You may want to change your front door for something more eye-catching, perhaps engraved wood or one with decorative glasswork. Changing the door's hardware can also help it stand out. The doorknob and knocker should be polished. Placing planters near the front door can add a pleasing visual as well as contributing fragrance to further the sensory experience. A front doormat can also be welcoming touch.
Changes that cost more can also increase the selling price. If you can afford to paint the house, look for examples of eye-catching color combinations in design magazines, online and in your city. If you can't afford to paint the whole building, just do the trim and shutters. Adding window boxes can also brighten the exterior.
Landscaping is another opportunity to increase the value of your property. You could hire a professional, but just adding a few shrubs and flowering bushes should do the trick. A well placed bench can help potential buyers imagine themselves sitting in their new garden.
You can ensure potential buyers notice your home just by giving the exterior a little extra attention. Remember, your traffic and often your selling price will increase with your home's curb appeal.
Friday, January 30, 2009
Thursday, January 22, 2009
Determine The Listing Price
When it comes to buying a home, most potential buyers will use the listing price to as the number one factor to determine the homes that they look at. Even though you and a realtor may determine the asking price, the buyer will determine the selling price. If the price is too high, most buyers won’t give it a second thought - which is why you want to determine the listing price carefully.
If you set the correct price, you’ll notice a much faster sale. Setting the right listing price will also attract more potential buyers to your property as well. You’ll also notice an increase in response from realtors, and receive more calls about the property. The listing price is very important - and it can ultimately determine whether or not you sale your property.
A home can be overpriced due to several reasons. Overpricing is something you want to avoid, as buyers tend to steer clear of homes that have been overpriced. Normally, this happens when a buyer asks a lot more than the home is worth or valued at. Some buyers ask a lot more than the value of the home due to location. Although the location is very important, most potential buyers won’t give the home a second look if they think the price is too high - and more importantly out of their price range.
When you put your home up for sale, most activity will happen within the first couple of weeks. If you put the right price on your home, you’ll notice immediate interest. There are always buyers looking for homes in their price range, waiting for new homes to be listed or homes to be reduced in price. Buyers who are waiting to purchase may miss seeing your home completely if the price is too high.
To determine the listing price of your home, you should always have it appraised before you put it on the market. This way, you’ll know the full value of your home. You can sell it for market value or go a little under, although you should never attempt to go way over the value. In doing so, you’ll miss out on a lot of potential buyers. The home market is very competitive these days, which is why you want your home to draw as much interest as possible.
Keep in mind that realtors really have no control at all over the real estate market, only the plan behind marketing. Realtors don’t determine the asking price - the seller does. You can ask a realtor for advice, although you are the decider of your listing price. If you do things right and take each thing step by step, you’ll set the listing price in the right area and have no problems selling your property.
If you set the correct price, you’ll notice a much faster sale. Setting the right listing price will also attract more potential buyers to your property as well. You’ll also notice an increase in response from realtors, and receive more calls about the property. The listing price is very important - and it can ultimately determine whether or not you sale your property.
A home can be overpriced due to several reasons. Overpricing is something you want to avoid, as buyers tend to steer clear of homes that have been overpriced. Normally, this happens when a buyer asks a lot more than the home is worth or valued at. Some buyers ask a lot more than the value of the home due to location. Although the location is very important, most potential buyers won’t give the home a second look if they think the price is too high - and more importantly out of their price range.
When you put your home up for sale, most activity will happen within the first couple of weeks. If you put the right price on your home, you’ll notice immediate interest. There are always buyers looking for homes in their price range, waiting for new homes to be listed or homes to be reduced in price. Buyers who are waiting to purchase may miss seeing your home completely if the price is too high.
To determine the listing price of your home, you should always have it appraised before you put it on the market. This way, you’ll know the full value of your home. You can sell it for market value or go a little under, although you should never attempt to go way over the value. In doing so, you’ll miss out on a lot of potential buyers. The home market is very competitive these days, which is why you want your home to draw as much interest as possible.
Keep in mind that realtors really have no control at all over the real estate market, only the plan behind marketing. Realtors don’t determine the asking price - the seller does. You can ask a realtor for advice, although you are the decider of your listing price. If you do things right and take each thing step by step, you’ll set the listing price in the right area and have no problems selling your property.
Tuesday, January 20, 2009
Gated Communities: A Safe Bet
Many of the new property developments on Coast Rica's beautiful "Gold Coast" are gated communities. These are an ideal choice for investment, especially if you aren't planning on living in your property all year round.
Owning land in absentia can pose some unique issues in Costa Rica, where squatter laws give an individual some rights to land if the legitimate owner has allowed them to reside there for over a year. This doesn't mean that you've given them consent to live on your land – it simply means that you haven't kicked them off. Squatters look for uninhabited land and set up residence, sometimes planting a few crops, and hope to remain undiscovered long enough to make a claim.
There are many ways to avoid this headache – you can have someone local check on your property, employ a caretaker (and keep good records so that they can't claim squatter status), or visit your property every three months. If squatters are discovered within 90 days the police are required to remove them from your property. To have them removed after a year, the legal landowner must go through a lawsuit which is an expense (and headache) that most people would rather avoid, and in some cases they could even lose ownership of their land.
An easy way to avoid this is to buy property in a gated community. This option ensures that your home is watched when you are not in town as well as having additional benefits. Gated communities are generally a more secure option than striking out alone, especially in areas that are big tourist destinations. Costa Rica is a very safe country: violent crime rates are much lower here than in other countries but petty offenses such as theft and property crime are not uncommon, especially in traveler-dense areas. Many condo developments and gated communities offer an entry system and private security included in the residents' fees, and your neighbors offer many sets of eyes to keep watch over your place.
Most of these developments offer infrastructure that is well above the national average, with underground electricity, great roads and community areas, and some even offer their own water systems and shopping areas.
The other advantage of owning in a gated community is that you can easily enter a property management arrangement, turning your empty home into a money making venture that pays for itself when you aren't around. The Guanacaste area has become an increasingly popular resort destination because of its warm weather, amazing beaches and general beauty. There's no doubt that a smart investment in this area will pay dividends and gated communities are a safe bet!
Owning land in absentia can pose some unique issues in Costa Rica, where squatter laws give an individual some rights to land if the legitimate owner has allowed them to reside there for over a year. This doesn't mean that you've given them consent to live on your land – it simply means that you haven't kicked them off. Squatters look for uninhabited land and set up residence, sometimes planting a few crops, and hope to remain undiscovered long enough to make a claim.
There are many ways to avoid this headache – you can have someone local check on your property, employ a caretaker (and keep good records so that they can't claim squatter status), or visit your property every three months. If squatters are discovered within 90 days the police are required to remove them from your property. To have them removed after a year, the legal landowner must go through a lawsuit which is an expense (and headache) that most people would rather avoid, and in some cases they could even lose ownership of their land.
An easy way to avoid this is to buy property in a gated community. This option ensures that your home is watched when you are not in town as well as having additional benefits. Gated communities are generally a more secure option than striking out alone, especially in areas that are big tourist destinations. Costa Rica is a very safe country: violent crime rates are much lower here than in other countries but petty offenses such as theft and property crime are not uncommon, especially in traveler-dense areas. Many condo developments and gated communities offer an entry system and private security included in the residents' fees, and your neighbors offer many sets of eyes to keep watch over your place.
Most of these developments offer infrastructure that is well above the national average, with underground electricity, great roads and community areas, and some even offer their own water systems and shopping areas.
The other advantage of owning in a gated community is that you can easily enter a property management arrangement, turning your empty home into a money making venture that pays for itself when you aren't around. The Guanacaste area has become an increasingly popular resort destination because of its warm weather, amazing beaches and general beauty. There's no doubt that a smart investment in this area will pay dividends and gated communities are a safe bet!
Saturday, January 10, 2009
Evaluating the Offer for Your Home
People work tirelessly to generate interest in a home they are trying to sell. Once they get an offer, however, they often are not sure how to evaluate it.
Evaluating the Offer for Your Home
You have read every book under the sun. You have read more internet articles than you can imagine. You have cleaned up your home, made repairs and put out your marketing. At this point, you feel like you are an expert in the process. Suddenly, you get an offer on the property. Now what?
The first thing to do is relax. Do not make the mistake of rushing to evaluate it. An offer is just that – an offer. It has contingencies and all kinds of little quarks in it. Although you have lived in the home for a lengthy period of time, you need to realize you are now in a business transaction. Once you have caught your breath, it is time to consider the offer.
The first issue is always the offered purchase price. The price will never be what you are asking for in the listing. It will be below the number, perhaps shockingly lower. At this point, you may feel the urge to pick up the phone and give the buyer a piece of your mind. Don’t! This is a business transaction. The buyer is merely throwing out a bit of bait to see if you are going to bite. If you do, they get a great deal. If you do not, they will evaluate any counter offer you make. If you do not counter, they can always submit a higher offer. Remember, this is a business transaction, not an affront to your pride!
A second issue concerns items in the home the buyer may want included in the sell. I have seen brawls break out over a lamp that would make a biker blush. Maybe that lamp is an heirloom that you can’t part with, but it probably is not. Only you can decide how valuable it is and whether it is worth losing the sale, but try to be objective and coherent when making the decision. Yes, it has been a loyal lamp, but really now…
After this, you need to evaluate any additional costs associated with the offer. The buyer may want allowances for painting and so on. It is usually fairly easy to bypass your emotions on this one, but you need to make some basic financial calculations. Take the offered price and subtract all costs for the transactions. One you have the net revenue figure, compare it to the bottom line number you decided on when you first decided to sell. This will tell you if it is an offer you should accept.
Homeowners often get so focused on the selling process, that they are caught off guard when an offer actually rolls in. Stick to your guns on your bottom line and you should be fine.
Evaluating the Offer for Your Home
You have read every book under the sun. You have read more internet articles than you can imagine. You have cleaned up your home, made repairs and put out your marketing. At this point, you feel like you are an expert in the process. Suddenly, you get an offer on the property. Now what?
The first thing to do is relax. Do not make the mistake of rushing to evaluate it. An offer is just that – an offer. It has contingencies and all kinds of little quarks in it. Although you have lived in the home for a lengthy period of time, you need to realize you are now in a business transaction. Once you have caught your breath, it is time to consider the offer.
The first issue is always the offered purchase price. The price will never be what you are asking for in the listing. It will be below the number, perhaps shockingly lower. At this point, you may feel the urge to pick up the phone and give the buyer a piece of your mind. Don’t! This is a business transaction. The buyer is merely throwing out a bit of bait to see if you are going to bite. If you do, they get a great deal. If you do not, they will evaluate any counter offer you make. If you do not counter, they can always submit a higher offer. Remember, this is a business transaction, not an affront to your pride!
A second issue concerns items in the home the buyer may want included in the sell. I have seen brawls break out over a lamp that would make a biker blush. Maybe that lamp is an heirloom that you can’t part with, but it probably is not. Only you can decide how valuable it is and whether it is worth losing the sale, but try to be objective and coherent when making the decision. Yes, it has been a loyal lamp, but really now…
After this, you need to evaluate any additional costs associated with the offer. The buyer may want allowances for painting and so on. It is usually fairly easy to bypass your emotions on this one, but you need to make some basic financial calculations. Take the offered price and subtract all costs for the transactions. One you have the net revenue figure, compare it to the bottom line number you decided on when you first decided to sell. This will tell you if it is an offer you should accept.
Homeowners often get so focused on the selling process, that they are caught off guard when an offer actually rolls in. Stick to your guns on your bottom line and you should be fine.
Thursday, January 1, 2009
Buying a Home – Dealing With Lender Letters
Most people who set out to buy a home, be it house, townhouse, condo, apartment, or mansion on a hill, know they need to have a lender letter in hand saying they are qualified for a loan. What most “civilians” (people not in the real estate business) don’t realize is how much the value of a lender letter varies.
Let’s look at some of the general ways a lender letter varies, which sort you want, and how to present it to a seller to put you in the best possible position to buy that seller’s property. If you’re working with a broker, he or she will coach you in these matters. If you’re shopping on your own, and especially if you’re looking at FSBOs (for sale by owner properties), you need to know this stuff.
Lender letters come in two general types, pre-qualification letters and pre-approval letters. The bold print on the page may call it one thing, and when the letter is read, it actually proves to be the other, so pay attention. A pre-qualification letter is weaker than a pre-approval letter.
Pre-Qualification Letter
The weakest pre-qualification letter basically says that “if everything the borrower has told me is correct, he/she is eligible to borrow $XXXXXX.” All you really have here is the buyer’s word paraphrased by a lender. Unfortunately, there is an old adage in real estate that “buyers are liars”. This is well known, so presenting this type of a letter tells a seller you are not in a very strong position with the lender.
A stronger version says “I have looked at an ‘in file’ credit report, and based on that and what the borrower has told me, he/she is eligible to borrow $XXXXXX.” This is still not great, but it is a step in the right direction.
Pre-Approval Letter
The pre-approval letter says “I have checked this person’s credit reports, seen all necessary substantiating materials relative to income…assets…etc., and my firm is committed to making a loan subject only to receiving a copy of a contract to purchase and the property’s appraisal for the contract price or higher.” The letter may not say it, but it is also subject to the underwriting process that includes looking at updated credit information. Regardless, this letter carries a lot of power and sellers will be very happy to see you.
A Word to the Wise
The above discussion of lender letters brings up something you should be keenly aware of as a buyer. Your credit must not change in any substantial way between the time you first apply for a loan and the time you go to settlement on your new home.
If you’re buying waterfront property, do not go out and buy a boat until after you’ve closed on the property. I once saw someone make this mistake and almost lose the property purchase because of it. He had to quickly find a new lender and accept a higher interest rate to keep the deal from going south.
If you’re moving from a small condo to a larger place, there’s the temptation to run right out and buy more furniture for your new quarters. Fine. Just wait until after you’re the proud new owner.
If you are serious about buying a home, a lender letter is a key part of your negotiating ammunition. To save yourself a lot of aggravation during escrow, get a pre-approval letter before you go house hunting.
Let’s look at some of the general ways a lender letter varies, which sort you want, and how to present it to a seller to put you in the best possible position to buy that seller’s property. If you’re working with a broker, he or she will coach you in these matters. If you’re shopping on your own, and especially if you’re looking at FSBOs (for sale by owner properties), you need to know this stuff.
Lender letters come in two general types, pre-qualification letters and pre-approval letters. The bold print on the page may call it one thing, and when the letter is read, it actually proves to be the other, so pay attention. A pre-qualification letter is weaker than a pre-approval letter.
Pre-Qualification Letter
The weakest pre-qualification letter basically says that “if everything the borrower has told me is correct, he/she is eligible to borrow $XXXXXX.” All you really have here is the buyer’s word paraphrased by a lender. Unfortunately, there is an old adage in real estate that “buyers are liars”. This is well known, so presenting this type of a letter tells a seller you are not in a very strong position with the lender.
A stronger version says “I have looked at an ‘in file’ credit report, and based on that and what the borrower has told me, he/she is eligible to borrow $XXXXXX.” This is still not great, but it is a step in the right direction.
Pre-Approval Letter
The pre-approval letter says “I have checked this person’s credit reports, seen all necessary substantiating materials relative to income…assets…etc., and my firm is committed to making a loan subject only to receiving a copy of a contract to purchase and the property’s appraisal for the contract price or higher.” The letter may not say it, but it is also subject to the underwriting process that includes looking at updated credit information. Regardless, this letter carries a lot of power and sellers will be very happy to see you.
A Word to the Wise
The above discussion of lender letters brings up something you should be keenly aware of as a buyer. Your credit must not change in any substantial way between the time you first apply for a loan and the time you go to settlement on your new home.
If you’re buying waterfront property, do not go out and buy a boat until after you’ve closed on the property. I once saw someone make this mistake and almost lose the property purchase because of it. He had to quickly find a new lender and accept a higher interest rate to keep the deal from going south.
If you’re moving from a small condo to a larger place, there’s the temptation to run right out and buy more furniture for your new quarters. Fine. Just wait until after you’re the proud new owner.
If you are serious about buying a home, a lender letter is a key part of your negotiating ammunition. To save yourself a lot of aggravation during escrow, get a pre-approval letter before you go house hunting.
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