How to Prepare Your Home For Sale

Preparing your home to receive potential buyers is crucial for the success of your home sale. In reality, an agent has limited power in convincing a buyer to choose a house that do not fill the buyer's needs.

A good brokerage firm will focus its efforts into marketing the property. In other words, our main job is to bring as much people through the door, and the home should take care of the buyer once he is in. That is why I always tell my sellers "the home will sell the home..."

Central Florida as the rest of the country has shifted into a buyer's market. There is a lot of competing homeowners for a limited number of buyers. That is why it is so important to prepare your home for sale.

We need to make sure that the home presents all its best features to these prospect buyers. The following ten points should help you to prepare your property to receive and present itself to these individuals.

Detach yourself from your home
The moment you place your home in the market, your home becomes a "house". It is an item that will be sold to someone else.

De-Personalize
Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted. You want buyers to imagine their own photos on the walls, and they can't do that if yours are there!

De-Clutter
I cannot reinforce this one enough. Your home will look a lot more spacious and clean with less visible items. If you haven't used x or y thing within a year, chances are you don't really need it.

Remove all books from bookcases
Pack up those knickknacks
Clean off everything on kitchen counters
Put essential items used daily in a small box that can be stored in a closet when not in use
Think of this process as a head-start on the packing you will eventually need to do anyway

Organize bedroom closets and kitchen cabinets

While looking through the house, buyers will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you, if she sees everything organized. It says you probably take good care of the rest of the house as well.

Rent a storage unit
Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room's purpose and plenty of room to move around. You don't want buyers scratching their heads and saying, "What is this room used for?"

Remove/replace favorite items
If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won't want it. Once you tell a buyer she can't have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.

Make minor repairs
Replace cracked floor or counter tiles
Patch holes in walls
Fix leaky faucets
Fix doors that don't close properly and kitchen drawers that jam
Consider painting your wall neutral colors, especially if you have grown accustomed to purple or pink walls (Don't give buyers any reason to remember your home as "the house with the orange bathroom")
Replace burned out light bulbs
If you've considered replacing a worn bedspread, do so now

Make the house sparkle
Wash Windows inside and out
Rent a pressure washer and spray down sidewalks and exterior
Clean out cobwebs
Re-caulk tubs, showers and sinks
Polish chrome faucets and mirrors
Clean out the refrigerator
Vacuum daily
Wax floors
Dust furniture, ceiling fan blades and light fixtures
Bleach dingy grout
Replace worn rugs
Hang up fresh towels
Bathroom towels look great fastened with ribbon and bows
Clean and air out any musty smelling areas. Odor are a no-no

Scrutinize
Go outside and open your front door and just stand there. Does the house welcome you?
Linger in the doorway of every single room and imagine how your house will look to a buyer
Examine carefully how furniture is arranged and move pieces around until it makes sense
Furniture should not interrupt the flow of the home
Make sure window coverings hang level
Tune in to the room's statement and its emotional pull. Does it have impact and pizazz?
Does it look like nobody lives in this house? You're almost finished

Check curb appeal
If a buyer won't get out of her agent's car because she doesn't like the exterior of your home, you'll never get her inside.

Keep the sidewalks cleared
Mow the lawn
Paint faded window trim
Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive
Trim your bushes
Make sure visitors can clearly read your house number

After taking all of these points into action, your home should be close to a "model home" in a new subdivision's sale center or show room. That is what we are trying to accomplish. Once your home is prepared, the difference will definitely pay-off with either a higher purchase price or shorter time in the market.

Orange County Neighborhood Grants

Orange County has made available a fund of 3.5 million for grants to help neighborhood projects. The money can be utilized for landscaping, cleaning and repairs throughout the neighborhood. Homeowner associations and neighborhood groups who apply for the grant must put up a percentage of the total grant requested.

The county will be offering some workshops from February to March to assist the groups about the program and requirements. For more information you can call the county's Neighborhood Services Division at 407-836-2917.

Florida's Existing Housing Market

ORLANDO, Fla. – Jan. 25, 2007 ­– Florida’s housing market mirrored the national trend in 2006, with sales of existing single-family homes slowing to a more sustainable pace following a five-year run of record closings. By year’s end, a total of 180,037 homes changed hands statewide for a 28 percent decrease compared to the 248,575 homes sold in 2005, according to the Florida Association of Realtors® (FAR).

At the same time, 2006 sales figures made it into the record books for several markets around the state; 2006 also is expected to be the third highest sales year on record nationally, according to the National Association of Realtors® (NAR).

Statewide, the median existing home sales price rose 6 percent to reach $248,300; in 2005, it was $235,200. In 2001, Florida’s median existing home sales price was $127,700, which represents a gain of 94.4 percent over the five-year period, according to FAR records.

“The housing market transitioned to a more sustainable balance during 2006, coming off the record-setting sales pace and price gains of the previous five years,” says 2007 FAR President Nancy Riley. Changes in the marketplace mean it’s more important than ever for consumers to turn to a Florida Realtor – someone they can rely on to help them understand the true history of homebuying and selling in their local areas.

“With mortgage rates continuing to remain historically low, stable home prices and at last, some inventory, now is the time to take advantage of the homeownership opportunities we have throughout the Sunshine State,” she adds. “Along with the tangible benefits of owning a home, such as building household wealth and stability, there are so many other intangible assets. When you buy a home, you’re not just creating an investment that makes dollars and cents; you’re making an investment in your family and in your future – and that’s priceless!”

NAR’s latest housing market outlook anticipates modest quarterly gains for home sales in 2007, with the 30-year fixed-rate mortgage expected to rise to 6.7 percent by the fourth quarter of this year. “Home sales appear to have bottomed out, having reached a cyclical low in September of last year,” notes NAR Chief Economist David Lereah, who predicts that 2007 will represent a year of stability for the housing sector.

Looking to Florida's existing condominium market, sales of existing condos also decreased in 2006, with a total of 55,594 condos sold statewide compared to 83,049 in 2005 for a 33 percent decrease, according to FAR. The statewide median sales price for condos in 2006 was $211,300; a year ago, it was $209,900 for a 1 percent increase.

In 2006, the rate for a 30-year, fixed-rate mortgage averaged 6.1 percent; in 2005, the average rate was 5.87 percent. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s larger metropolitan statistical areas (MSAs), Orlandoreported a total of 27,212 existing homes sold last year, down 26 percent than the area’s 2005 sales activity, when 36,727 homes changed hands. The existing-home median sales price rose 14 percent to $262,900; the year before, it was $231,400. A total of 4,933 existing condos sold in the Orlando market in 2006, a 2 percent increase over the 4,833 condos sold the year before. The existing condo median price for the area was $166,100, a 3 percent decrease from the 2005 figure of $171,100.

“The year 2006 was the second best year on record for the Orlando area housing market,” says Randy Martin, president of the Orlando Regional Realtor Association and broker-associate with RE/MAX 200 Realty Inc. in Winter Park.

“A driving force behind the market this year is that builders have all this new inventory out there, so they’re offering these incredible incentives to clear and move their inventory of new homes. At the same time, they’re reducing plans to build new development. The anticipation is that builders will ‘burn’ their supply of available homes sometime in mid-2007. It’s why right now is an outstanding time to buy, plus the interest rates are still low. And looking to 2007, we anticipate another strong year, with opportunities for buyers and sellers.”

In the state's smaller markets, the Gainesville MSA reported 3,174 homes sold last year, a 21 percent decrease over the 3,993 homes sold the previous year. The existing-home median sales price rose 19 percent to $213,200; the year before, it was $179,200. The Gainesville market reported a total of 1,284 existing condos changed hands in 2006, up 10 percent from the 1,171 condos sold the previous year. The existing condo median price was $153,400; in 2005, it was $135,300 for a 13 percent increase.

“Gainesville is just a great place to live – being a university town, there’s so much going on whether your interests are the arts, music or sports,” says Sherry Patrick, president of the Gainesville Alachua County Association of Realtors and broker-associate with Coldwell Banker M.M. Parrish Realtors in Gainesville.

“The university provides a stable economic base and attracts many other businesses and industry to our area. Our housing market has stayed pretty strong, and we anticipate another good year in 2007. It’s a great time to buy: interest rates are still low and homeownership opportunities are available.”


© 2007 FLORIDA ASSOCIATION OF REALTORS

Nationally, Existing and New Homes Sales Rise

WASHINGTON – Jan. 2, 2007 – Existing-home sales continued to recover nationally last month following a rise in October, with the level of sales activity suggesting a turn in the market, according to the National Association of Realtors® (NAR).

Total existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 0.6 percent to a seasonally adjusted annual rate of 6.28 million units in November from a level of 6.24 million in October, but were 10.7 percent below the 7.03 million-unit pace in November 2005.

David Lereah, NAR’s chief economist, said modest gains are expected for home sales. “As the housing market recovers from its correction, existing-home sales should be rising gradually during 2007 – it looks like we may have reached the low point for the current cycle in September,” he said. “We’ve entered a more sustainable period of home sales now, and we expect greater support for prices over time as inventory levels are eventually drawn down.”

Total housing inventory levels fell 1.0 percent at the end of November to 3.82 million existing homes available for sale, which represents a 7.3-month supply at the current sales pace.
The national median existing-home price for all housing types was $218,000 in November, which is 3.1 percent lower than November 2005 when the median price was $225,000.

The median is a typical market price where half of the homes sold for more and half sold for less. “For every 1.0 percent drop in home prices, we project an additional 50,000 buyers are drawn into the market,” Lereah said.

Sales of new one-family houses in November showed less strength than existing homes sales, but also rose from October numbers. According to the U.S. Census Bureau and the Department of Housing and Urban Development, new home sales rose 3.4 percent in November compared to October numbers; but new home sales feel 15.3 percent compared to sales one year earlier in November 2005.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.24 percent in November, down from 6.36 percent in October; the rate was 6.33 percent in November 2005.

NAR President Pat Vredevoogd Combs, from Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt, said the performance of long-term interest rates is a pleasant surprise. “Mortgage interest rates are the lowest they’ve been since January, and it’s the first time since August of 2005 that interest rates are lower than a year earlier,” said Combs. “This is increasing buying power at the same time that sellers are showing a willingness to negotiate price and terms. Combined with a plentiful supply of homes on the market, there’s a window for buyers now with conditions that we haven’t seen prior to the beginning of the housing boom in 2001.”

Single-family home sales increased 0.2 percent to a seasonally adjusted annual rate of 5.52 million in November from a pace of 5.51 million in October, but were 10.2 percent lower than the 6.15 million-unit level in November 2005. The median existing single-family home price was $217,200 in November, which is 3.6 percent lower than a year ago.

Existing condominium and cooperative housing sales rose 3.1 percent to a seasonally adjusted annual rate of 757,000 units in November from a downwardly revised 734,000 in October, but were 13.6 percent below the 876,000-unit pace in November 2005. The median existing condo price was $224,600 in November, which is unchanged from a year ago.

Regionally, existing-home sales in the Northeast increased 6.0 percent to a level of 1.06 million in November, but were 4.5 percent below November 2005. The median existing-home price in the Northeast was $269,000, down 2.2 percent from a year earlier.

Existing-home sales in the West rose 0.8 percent to an annual pace of 1.32 million in November but were 17.5 percent lower than a year earlier. The median price in the West was $351,000, down 0.8 percent from November 2005.

Existing-home sales in the Midwest were unchanged in November, holding at a level of 1.42 million, and were 9.6 percent lower than November 2005. The median price in the Midwest was $165,000, which is 3.5 percent below a year ago.

Existing-home sales in the South fell 1.6 percent to an annual sales rate of 2.47 million in November, and were 10.2 percent below a year ago. The median price in the South was $179,000, down 3.2 percent from November 2005.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

Back to the Basics

As you already know by now, our real estate market is not what it used to be, at least before the rampage of 2001 to 2005. But, as my grandmother told me one day in Puerto Rico, “after the hurricane, comes the calm weather…” I guess that in this case, after the seller’s market comes… the buyer’s market. And somehow makes some kind of sense.

However, the bottom line is that what ever it is, it has to make sense to buyer’s again in order to bring back the market to a healthy state. This post is called “BACK TO THE BASICS” and its purpose is to give out some guidelines for buyers on how to make smart purchases whether you are looking to invest or reside in the new property.

After 2005, a lot of economists were talking about “market stabilization” and how it was necessary to bring back home prices to what the market could bare at the time. Central Florida has felt the effects of this stabilization resulting in slight price decreases through out different regions and the accumulation of housing inventory.

When you add the excessive new construction over supplying a demand, existing homeowners overpricing their properties, investors flipping and assigning contracts… buyers will stay in the sidelines. On top of that, we have a media reminding buyers constantly on how weak the market in general is… nobody wanted to buy a house and let the property depreciate lower than the purchase price.

Currently, there are more than enough homes for sale and a lot of motivated sellers behind them.

In reality this creates a beautiful opportunity for a buyer. However, you should consider the following guidelines in order to make a smart purchase in a slow market:

Have you financing in place, first!

The first step in buying a home is not driving around different neighborhoods or visiting an open house when you see one. It should begin searching for loan options (assuming you are financing your purchase).

Having your financing strategy in advance, will save you a lot of time, money and facilitate the overall buying process once the desired property is located. Doing your loan homework is like identifying your destination and pressing cruise control in the interstate highway. It automatically puts you in the “serious buyer” category. You will be able to pin point exactly what kind of property you will be able to afford (hence, not wasting time viewing properties you can’t), stay within your budget and have a better position in negotiating the price with a seller.

Hire a good Realtor

Every buyer should have good representation, period. Typical buyers do not engage in a real estate transaction every day for the exception of investors. A good real estate professional will provide you guidance, market value and have all the contacts necessary to close the transaction in a timely manner.

A lot of time is wasted driving around looking at neighborhoods. If you see a home you like, chances are that you won’t be able to view the property because you didn’t make an appointment with the selling agent. A Realtor will scout the best options within your budget and show you the properties in the appointed time convenient for everyone. Buyer agents are compensated by the seller in most cases. In other words, they will be providing you a service free of charge.

Our buyer representation program goes a little further than that. We are paying 50% of the commission back to the buyer at closing converting a client into a partner.

Remember, most sellers are represented, so why aren’t you?

Ask for a Comparative Market Analysis

If your main concern is to not overpay for a property then you should ask your Realtor to prepare a CMA before making an offer. A CMA should not be confused with an appraisal. This report is limited in scope within an area, and it analyzes the sales comparables in the neighborhood.

CMAs are a major tool to determine market value for a home and are typically included in the listing presentation when meeting with a seller. This report will definitely help you determine your offer and what price range you should stay in.

Hire a home inspector

A buyer should always get a home inspection before closing. A good home inspector will not only look for any existing problems with the property but also will give you valuable information on how to maintain it. Remember, your home is an appreciating asset. But in order for you reap good equity, your property has to be maintained in optimal conditions.

These guidelines should put any buyer in the right track towards purchasing a new home efficiently and in a timely manner. Real estate markets are local and cyclical in nature making it a little tricky in forecasting. However, making a smart purchase should place a homeowner in a great position to make the most out of their new investment.