8 Quick Fixes to Increase Value
With buyers scarce, sellers must convince them that their property offers what many want most - top value for dollar spent. Here are eight fast fixes:
1. Buff up curb appeal. You've heard it before, but it's critical to get buyers to want to look on the inside. Be objective. View listings from the street. Check the condition of the landscaping, paint, roof, shutters, front door, knocker, windows, house number, and even how window treatments look from the outside. Add something special-such as big flower pots or an antique bench - to help viewers remember house A from B.
2. Enrich with color. Paint is cheap, but forget the adage that it must be white or neutral. Don't get too advantageous with jarring pinks, oranges, and purples. Use soft colors that say "welcome," lead the eye from room to room, and flatter skin tones. Think soft yellows and pale greens. Tint ceilings a lighter shade.
3. Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. But besides making each squeaky clean and clutter-free, update the pulls, sinks, and faucets. In a kitchen, add one cool appliance, such as an espresso maker. In the bathroom, hang a flat-screen TV to mimic a hotel.
4. Add old-world patina. Install crown molding at least six to nine inches in depth, proportional to the room's size, and architecturally compatible. For ceilings nine feet high or higher, add dentil detailing, small tooth-shaped blocks used as a repeating ornament. It's all in the details.
5. Screen hardwood floors. Buyers favor wood over carpet, but refinishing is costly and time-consuming. Screening cuts dust, time, and expense. What it entails: a light sanding, not a full stripping of color or polyurethane, then a coat of finish.
6. Clean out, organize closets. Get sorting-organize your piles into "don't need," "haven't worn," and "keep." Closets must be only half-full so buyers can visualize fitting their stuff in.
7. Update window treatments. Buyers want light and views, not dated, fancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.
8. Hire a home inspector. Do a preemptive strike, since busy home owners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible.
Sources: Ernie Roth, Roth Interiors, Los Angeles; Angel Petragallo, abr, Group One, Boise, Idaho; Melissa Galt, Galt Interiors, Atlanta; Steve Kleiman, CEO, Oakington Realty, Houston; Sid Davis, Sid Davis & Associates, Farmington, Utah, and author of First-Time Homeowners' Survival Guide (Amacom, 2007); Steve Hochman, Friendly Note Buyers, Roxbury, N.Y.; Margi Kyle, designer and spokesperson for Hunter Douglas.
Thursday, June 26, 2008
Friday, June 20, 2008
Home Hazards and Potential Dangers
4 Home Hazards
These issues don't necessarily cause illness but are serious nonetheless. The following are common hazards home inspectors often find:
1. Faulty wiring: Overloaded circuits, loose wires, missing covers on distribution boxes, abandoned appliances, or aluminum wiring, which can become problematic with age.
2. Loose guard rails: Stairway guardrails, especially on exterior stairways, that are not securely connected. Decks - often installed by home owners unfamiliar with building codes - that have loose boards.
3. Shower doors: Shower doors that lack safety glass and are not properly secured. A home owner who slips when stepping out of the bathtub and grabs a glass door that isn't properly fastened could be severely injured.
4. Drainage problems: Downspouts discharging next to an exterior wall or a negative grade that slopes toward the home and brings water toward the home, causing foundation deterioration. This can lead to water damage, often seen in the basement, and possibly mold growth. Look for cracks, foundation wall stains, and musty, damp smells.
5 POTENTIAL DANGERS IN A HOME
Home inspection company Pillar to Post has identified these common dangers. Buyers and sellers need to contact a home inspector to make sure these problems aren't present.
RADON
This colorless, odorless gas can seep into the home from the ground and has been called the second most common cause of lung cancer.
What to look for: Basements or any protrusions into the ground offer entry points for radon. The Environmental Protection Agency publishes a map of high prevalence areas for radon .
A radon test can determine if high levels of radon are present.
ASBESTOS
This fibrous material - once popular in building materials because it provides heat insulation and fire resistance - was banned in 1985. It may still be found in older homes' insulation materials, floor tiles, roof coverings, and siding. If disturbed or damaged, it can enter the air and cause severe illness.
What to look for: Homes built before 1985 are at risk of having asbestos within construction materials. Home owners should be careful when remodeling because disturbing insulation may cause the asbestos to become airborne.
LEAD
This toxic metal, used in home products for many years, can contribute to several health problems, especially among children. Exposure can occur from deteriorating lead-based paint, lead pipes, or lead-contaminated dust or soil.
What to look for: Homes built prior to 1978 may have lead present. Look for peeling paint and check old pipes. To get a HUD-insured loan, buyers must show a certificate that homes built prior to 1978 are lead-safe.
HAZARDOUS PRODUCTS
Stockpiles of household items - such as paint solvents, pesticides, fertilizers, and motor oils - can create a dangerous situation if not properly stored or disposed. They can cause illness or even death if small amounts are ingested.
What to look for: Make sure these items aren't tucked away in corners, crawl spaces, garages, or garden sheds. Home owners often don't realize these products can pose a danger and may forget they're storing them. But buyers don't want it to become their problem - and expense - to dispose of. If these products are found, the buyer should require their removal and get a disposal certificate prior to closing, which proves the products were disposed of properly and not just dumped in the backyard.
GROUNDWATER CONTAMINATION
Hazardous chemicals that are illegally disposed of can seep through the soil and enter water supplies. A leaking underground oil tank or faulty septic system can also lead to contamination.
What to look for: Look for any conditions that may be conducive to leakage. Homes near light industrial areas or facilities may be at risk. Also a concern: areas once used for industry that are now residential. Pillar to Post offers a Neighborhood Environmental Report that details any dangers or remedies of environmental incidences and sources of contamination that have occurred at a specified address and within its vicinity.
These issues don't necessarily cause illness but are serious nonetheless. The following are common hazards home inspectors often find:
1. Faulty wiring: Overloaded circuits, loose wires, missing covers on distribution boxes, abandoned appliances, or aluminum wiring, which can become problematic with age.
2. Loose guard rails: Stairway guardrails, especially on exterior stairways, that are not securely connected. Decks - often installed by home owners unfamiliar with building codes - that have loose boards.
3. Shower doors: Shower doors that lack safety glass and are not properly secured. A home owner who slips when stepping out of the bathtub and grabs a glass door that isn't properly fastened could be severely injured.
4. Drainage problems: Downspouts discharging next to an exterior wall or a negative grade that slopes toward the home and brings water toward the home, causing foundation deterioration. This can lead to water damage, often seen in the basement, and possibly mold growth. Look for cracks, foundation wall stains, and musty, damp smells.
5 POTENTIAL DANGERS IN A HOME
Home inspection company Pillar to Post has identified these common dangers. Buyers and sellers need to contact a home inspector to make sure these problems aren't present.
RADON
This colorless, odorless gas can seep into the home from the ground and has been called the second most common cause of lung cancer.
What to look for: Basements or any protrusions into the ground offer entry points for radon. The Environmental Protection Agency publishes a map of high prevalence areas for radon
A radon test can determine if high levels of radon are present.
ASBESTOS
This fibrous material - once popular in building materials because it provides heat insulation and fire resistance - was banned in 1985. It may still be found in older homes' insulation materials, floor tiles, roof coverings, and siding. If disturbed or damaged, it can enter the air and cause severe illness.
What to look for: Homes built before 1985 are at risk of having asbestos within construction materials. Home owners should be careful when remodeling because disturbing insulation may cause the asbestos to become airborne.
LEAD
This toxic metal, used in home products for many years, can contribute to several health problems, especially among children. Exposure can occur from deteriorating lead-based paint, lead pipes, or lead-contaminated dust or soil.
What to look for: Homes built prior to 1978 may have lead present. Look for peeling paint and check old pipes. To get a HUD-insured loan, buyers must show a certificate that homes built prior to 1978 are lead-safe.
HAZARDOUS PRODUCTS
Stockpiles of household items - such as paint solvents, pesticides, fertilizers, and motor oils - can create a dangerous situation if not properly stored or disposed. They can cause illness or even death if small amounts are ingested.
What to look for: Make sure these items aren't tucked away in corners, crawl spaces, garages, or garden sheds. Home owners often don't realize these products can pose a danger and may forget they're storing them. But buyers don't want it to become their problem - and expense - to dispose of. If these products are found, the buyer should require their removal and get a disposal certificate prior to closing, which proves the products were disposed of properly and not just dumped in the backyard.
GROUNDWATER CONTAMINATION
Hazardous chemicals that are illegally disposed of can seep through the soil and enter water supplies. A leaking underground oil tank or faulty septic system can also lead to contamination.
What to look for: Look for any conditions that may be conducive to leakage. Homes near light industrial areas or facilities may be at risk. Also a concern: areas once used for industry that are now residential. Pillar to Post offers a Neighborhood Environmental Report that details any dangers or remedies of environmental incidences and sources of contamination that have occurred at a specified address and within its vicinity.
12 Questions for a Home Inspector!
Disputes over property condition and repairs can kill a deal in a hurry. Take the time to schedule inspections and find out the condition of the property as early as possible to allow adequate time for resolving any issues that arise.
12 Questions Buyers Should Ask the Home Inspector
1. Are you a member, in good standing, of a professional inspectors organization, such as the American Society of Home Inspectors?
2. Are you licensed? (Required only in some states)
3. What systems-plumbing, heating, electrical-will the inspection include?
4. How long will the inspection take?
5. How much will the inspection cost?
6. Can we accompany you on the inspection?
7. Do you have references?
8. Do you carry errors and omissions insurance?
9. What is your specialty and what sort of continuing education have you completed?
Note: If the inspector is a plumber by training and has no expertise in home construction, the inspection might not be comprehensive.
10. Do you provide a written report at no extra charge?
11. Does the report include estimates of repair costs?
12. Does your company also do repairs when you find problems? If the answer is yes, it may indicate a conflict of interest.
TIP: If you have particular concerns about one area of the home-the foundation, for instance-you might want to hire a second inspector who specializes in that component.
12 Questions Buyers Should Ask the Home Inspector
1. Are you a member, in good standing, of a professional inspectors organization, such as the American Society of Home Inspectors?
2. Are you licensed? (Required only in some states)
3. What systems-plumbing, heating, electrical-will the inspection include?
4. How long will the inspection take?
5. How much will the inspection cost?
6. Can we accompany you on the inspection?
7. Do you have references?
8. Do you carry errors and omissions insurance?
9. What is your specialty and what sort of continuing education have you completed?
Note: If the inspector is a plumber by training and has no expertise in home construction, the inspection might not be comprehensive.
10. Do you provide a written report at no extra charge?
11. Does the report include estimates of repair costs?
12. Does your company also do repairs when you find problems? If the answer is yes, it may indicate a conflict of interest.
TIP: If you have particular concerns about one area of the home-the foundation, for instance-you might want to hire a second inspector who specializes in that component.
Friday, June 13, 2008
Real Estate Forecast: Sunny with a strong chance of Sales
Is the worst over?
Though we aren’t sending out the celebratory party invites just yet, there are a lot of strong signals that are leading the real estate community to believe that the “worst of times” may be in the past.
The key to any degree of stabilization in the housing market is, of course, the balance between supply and demand.
What I can tell you based on my experience is that the market is showing some very early signs of building momentum. In fact, over the last few weeks we have seen dozens of stories published both in real estate trade and consumer publications that reveal some interesting facts about a potential turnaround in the economy and housing sector based on supply and demand.
What could this mean for a consumer? Read on.
Increasing Demand
• According to a May 13, 2008 Utah Department of Workforce Services report, the seasonally adjusted unemployment rate was
3.1 percent in April, down from 3.3 percent in March.
• New companies and projects are adding new jobs. According to Deseret News’ June 1, 2008 Utah TrendLines Extra article
entitled, “Utah Economic News and Data,” a new commercial center, 201 Commerce Center, will add 4,000 jobs in the next
ten years. Oracle Corporation will add 100 jobs paying an average wage more than double the Salt Lake County median wage and a Swiss company is looking to add an aircraft maintenance facility at the Ogden-Hinkley airport in Ogden that would create 200 jobs.
Decreasing Supply
• According to the University of Utah's Bureau of Business and Research, residential construction in Utah is falling. The number
of residential building permits for homes, twin homes, condominiums and apartments declined 58.2 percent in the first
quarter of 2008, compared with the same period last year. With fewer homes being built, current plentiful inventories will likely
shrink.
Bright News in Mortgage: Welcome News for Buyers
And if that news wasn’t good enough for real estate, late last month Fannie Mae reported it was scrapping its declining markets policy which previously required borrowers to put up an extra 5% down payment when purchasing homes in areas deemed “declining markets.”
Under the policy change, borrowers will get loans up to 95% loan-to-value, even in markets in which prices have been falling. Prior to the change, borrowers could only get loans up to 90% to give lenders a 5-percentage-point cushion to protect against possible price declines in the future.
The previous controversial policy kept some would-be home buyers from taking action because they could not come up with the funds to make the increased down payment. Others may have avoided buying because they were afraid to do so if prices were still declining. By eliminating this policy, Fannie May will instead require 3% down payments for conventional, conforming mortgages processed through its Desktop Underwriter automated underwriting system and 5% minimum down payments for loans process manually, Inman News reported.
The new policy, which took effect June 1, should be welcome news for many buyers, especially first time buyers. NAR President Richard F. Gaylord said the easement of this policy is good news for the industry: “This means consumers across the country will have access to safe, affordable financing with down payments of only 5% on most mortgages, with 100% financing available on some loan products, and we could see an upturn in home sales this summer.”
NAR Chief Economist Lawrence Yun concurs noting, “I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant,” he said. “Also, a recent notable drop in interest rates on conforming loans will help consumers in high cost markets...”
So What Could This Mean For A Buyer?
If Yun’s predictions are correct, the housing market will strengthen and prices are likely to begin a steady upswing in the coming months.
Lancaster Online’s May 18, 2008 “Housing Slump can be a Boon to Buyers,” included a quote from Coldwell Banker President and Chief Operating Officer Jim Gillespie who said, “This is the absolute
best time in my 33 years in real estate to buy a home. Interest rates are still low, inventory levels are high and prices are stable. You should not try to time the market. People who try to time the market get burned.”
In Utah, even with fewer sales, the average sales price declined only 1.2% in the first quarter of 2008 compared with the first
quarter of 2007, according to the Utah Association of Realtors. Homes priced above $500,000 are seeing adjustments but homes priced less than $300,000 are seeing activity and, in most cases, are not seeing significant reductions.
Over the last few weeks we’ve seen a real up-tick in buyer interest and homes going into contract. It seems in most markets, housing prices have adjusted to a point where they are “fair” and it seems buyers are responding. As a result, especially thanks to the recent Fannie May declining markets policy change, people who couldn’t afford a home a few years ago are coming back into the market.
If You’re Ready to Move-Up, Now May Be the Time
I recently came across an article published online by the Wall Street Journal on March 16, 2008 entitled “Opportunity knocks in sinking housing market” that synopsized the move-up market quite well. It read: “If you're hankering after a larger home or a house in a better neighborhood, this could be your chance to trade up on the cheap.
“To be sure, when you go to sell your current home, you will likely get a modest price. Since 2006's second quarter, real estate has fallen 10.2 percent, as measured by the S&P/Case-Shiller U.S. National Home Price Index. But your new, grander house will also be relatively inexpensive, so you're effectively cranking up your real estate exposure when the market is well below its peak.
“In other words, trading up to a larger home or a better neighborhood is really about wanting to consume more real estate.
“Still, like any thrifty shopper, you want to buy when there's a sale – and that is what today's market offers.”
My Recommendation: Carpe Diem!
If you have been sitting on the sidelines waiting to enter the market, there may not be a better time than now. Prices in some markets may not have hit their lowest point, but they probably aren’t far off. In many areas, only the pace of sales has been affected while prices have held firm and in some cases, have gone up.
Waiting for the absolute bottom to hit before buying puts you at risk of missing it and getting caught up in a market on the upswing, which, based on what many industry analysts are reporting, may be on the horizon sooner than originally predicted.
As your real estate professional, I would welcome the opportunity to counsel you on the opportunities available in today’s market and help you take advantage of them before it is too late.
Please call me today so we may get started.
Though we aren’t sending out the celebratory party invites just yet, there are a lot of strong signals that are leading the real estate community to believe that the “worst of times” may be in the past.
The key to any degree of stabilization in the housing market is, of course, the balance between supply and demand.
What I can tell you based on my experience is that the market is showing some very early signs of building momentum. In fact, over the last few weeks we have seen dozens of stories published both in real estate trade and consumer publications that reveal some interesting facts about a potential turnaround in the economy and housing sector based on supply and demand.
What could this mean for a consumer? Read on.
Increasing Demand
• According to a May 13, 2008 Utah Department of Workforce Services report, the seasonally adjusted unemployment rate was
3.1 percent in April, down from 3.3 percent in March.
• New companies and projects are adding new jobs. According to Deseret News’ June 1, 2008 Utah TrendLines Extra article
entitled, “Utah Economic News and Data,” a new commercial center, 201 Commerce Center, will add 4,000 jobs in the next
ten years. Oracle Corporation will add 100 jobs paying an average wage more than double the Salt Lake County median wage and a Swiss company is looking to add an aircraft maintenance facility at the Ogden-Hinkley airport in Ogden that would create 200 jobs.
Decreasing Supply
• According to the University of Utah's Bureau of Business and Research, residential construction in Utah is falling. The number
of residential building permits for homes, twin homes, condominiums and apartments declined 58.2 percent in the first
quarter of 2008, compared with the same period last year. With fewer homes being built, current plentiful inventories will likely
shrink.
Bright News in Mortgage: Welcome News for Buyers
And if that news wasn’t good enough for real estate, late last month Fannie Mae reported it was scrapping its declining markets policy which previously required borrowers to put up an extra 5% down payment when purchasing homes in areas deemed “declining markets.”
Under the policy change, borrowers will get loans up to 95% loan-to-value, even in markets in which prices have been falling. Prior to the change, borrowers could only get loans up to 90% to give lenders a 5-percentage-point cushion to protect against possible price declines in the future.
The previous controversial policy kept some would-be home buyers from taking action because they could not come up with the funds to make the increased down payment. Others may have avoided buying because they were afraid to do so if prices were still declining. By eliminating this policy, Fannie May will instead require 3% down payments for conventional, conforming mortgages processed through its Desktop Underwriter automated underwriting system and 5% minimum down payments for loans process manually, Inman News reported.
The new policy, which took effect June 1, should be welcome news for many buyers, especially first time buyers. NAR President Richard F. Gaylord said the easement of this policy is good news for the industry: “This means consumers across the country will have access to safe, affordable financing with down payments of only 5% on most mortgages, with 100% financing available on some loan products, and we could see an upturn in home sales this summer.”
NAR Chief Economist Lawrence Yun concurs noting, “I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant,” he said. “Also, a recent notable drop in interest rates on conforming loans will help consumers in high cost markets...”
So What Could This Mean For A Buyer?
If Yun’s predictions are correct, the housing market will strengthen and prices are likely to begin a steady upswing in the coming months.
Lancaster Online’s May 18, 2008 “Housing Slump can be a Boon to Buyers,” included a quote from Coldwell Banker President and Chief Operating Officer Jim Gillespie who said, “This is the absolute
best time in my 33 years in real estate to buy a home. Interest rates are still low, inventory levels are high and prices are stable. You should not try to time the market. People who try to time the market get burned.”
In Utah, even with fewer sales, the average sales price declined only 1.2% in the first quarter of 2008 compared with the first
quarter of 2007, according to the Utah Association of Realtors. Homes priced above $500,000 are seeing adjustments but homes priced less than $300,000 are seeing activity and, in most cases, are not seeing significant reductions.
Over the last few weeks we’ve seen a real up-tick in buyer interest and homes going into contract. It seems in most markets, housing prices have adjusted to a point where they are “fair” and it seems buyers are responding. As a result, especially thanks to the recent Fannie May declining markets policy change, people who couldn’t afford a home a few years ago are coming back into the market.
If You’re Ready to Move-Up, Now May Be the Time
I recently came across an article published online by the Wall Street Journal on March 16, 2008 entitled “Opportunity knocks in sinking housing market” that synopsized the move-up market quite well. It read: “If you're hankering after a larger home or a house in a better neighborhood, this could be your chance to trade up on the cheap.
“To be sure, when you go to sell your current home, you will likely get a modest price. Since 2006's second quarter, real estate has fallen 10.2 percent, as measured by the S&P/Case-Shiller U.S. National Home Price Index. But your new, grander house will also be relatively inexpensive, so you're effectively cranking up your real estate exposure when the market is well below its peak.
“In other words, trading up to a larger home or a better neighborhood is really about wanting to consume more real estate.
“Still, like any thrifty shopper, you want to buy when there's a sale – and that is what today's market offers.”
My Recommendation: Carpe Diem!
If you have been sitting on the sidelines waiting to enter the market, there may not be a better time than now. Prices in some markets may not have hit their lowest point, but they probably aren’t far off. In many areas, only the pace of sales has been affected while prices have held firm and in some cases, have gone up.
Waiting for the absolute bottom to hit before buying puts you at risk of missing it and getting caught up in a market on the upswing, which, based on what many industry analysts are reporting, may be on the horizon sooner than originally predicted.
As your real estate professional, I would welcome the opportunity to counsel you on the opportunities available in today’s market and help you take advantage of them before it is too late.
Please call me today so we may get started.
Saturday, June 7, 2008
2008 Home Sales Statistics
I thought this is a list of very good FACTS straight from the head of the Utah County Association of Realtors! As we look at real numbers it is comforting to see that the housing market is very stable right now. We are seeing an increase!!
The following letter is from: Taylor Oldroyd,
CEO Utah County Association of Realtors®
Subject: Monthly Statistics--April 2008
1.There is a lot of talk about where the bottom of this housing correction is…I am going out on a limb to say that the bottom was in Dec 2007. December saw the fewest number of homes with only 269. Since then, we have increased at a nice and consistent pace. January increased seven to 276. Februray we saw another step of 15 to 291. March broke the 300 mark and hit 327. In April we reached 395. This represents a 47% increase since Dec 2007. I'd say that is a nice climb out of the bottom.
2. Of course comparing April 2008 with last year we still see a 32.5% reduction in sales. Again though,this is a nice step in the right direction. March 2008 compared to March 2007 was off nearly 10 points higher at 43.4%. The signs of a pick up in the market are clear.
3. How did Condos make out? Last month was off 51% compared to last year and this month again a bit of an improvement. April 2008 sales of Condos is down 37% compared to last April.
4. The upper-end of the market continues to struggle however. For only the second time in recent history, no homes priced above $1 million were sold. And home sales above $500k were down 71% from April 2007.
Summary: Price it right and it will sell. If you're in the higher end, hang in a bit longer and as Utah leads the country in economic indicators, these upper-end homes will see a slow rebound too.
The following letter is from: Taylor Oldroyd,
CEO Utah County Association of Realtors®
Subject: Monthly Statistics--April 2008
1.There is a lot of talk about where the bottom of this housing correction is…I am going out on a limb to say that the bottom was in Dec 2007. December saw the fewest number of homes with only 269. Since then, we have increased at a nice and consistent pace. January increased seven to 276. Februray we saw another step of 15 to 291. March broke the 300 mark and hit 327. In April we reached 395. This represents a 47% increase since Dec 2007. I'd say that is a nice climb out of the bottom.
2. Of course comparing April 2008 with last year we still see a 32.5% reduction in sales. Again though,this is a nice step in the right direction. March 2008 compared to March 2007 was off nearly 10 points higher at 43.4%. The signs of a pick up in the market are clear.
3. How did Condos make out? Last month was off 51% compared to last year and this month again a bit of an improvement. April 2008 sales of Condos is down 37% compared to last April.
4. The upper-end of the market continues to struggle however. For only the second time in recent history, no homes priced above $1 million were sold. And home sales above $500k were down 71% from April 2007.
Summary: Price it right and it will sell. If you're in the higher end, hang in a bit longer and as Utah leads the country in economic indicators, these upper-end homes will see a slow rebound too.
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