Tony Kostovski’s Blog

Project Time

If you are considering putting your home up for sale this spring, now is the time to decide if you need to undertake a home improvement project to increase the home’s appeal and potential asking price. Starting now should allow you enough time to outline the project scope, define the budget, hire a professional, apply for permits and complete the job before the “for sale” sign is put in place.

 When considering where to invest, remember that kitchen and bathroom updates traditionally yield the greatest return without having to increase the square footage. Work with your Realtor and contractor to craft a project that will boost the home’s appeal at the right price. In other words, you will want to choose cabinets, fixtures, tiles, flooring and countertops that are current, but not necessarily top-of-the-line. When selecting items look for good quality and consider what appeals to today’s consumer.Your real estate and construction professionals can let you know what is in demand in the marketplace, such as stainless steel appliances in the kitchen and double vanities in the master bath. Be sure to capitalize on their expertise.

The Power of a Professional

* Staging: Preparing a home for sale takes work. A good selling agent has a knack for knowing how to make a home look its best. To-do items might include painting, clearing clutter, updating floors or fixtures, rearranging furniture and even small scale home improvement projects. Done right, staging can increase appeal and even price.

* Marketing: Marketing a home for sale takes a lot of time, organization and attention to detail. In addition to posting in the Multiple Listing Service (MLS), there are Internet opportunities, print advertisements, and direct mail options. Other marketing efforts include open houses for both Realtors and the public.

* Negotiating: The act of negotiating a price that both parties are comfortable with is no easy task. A selling agent can offer invaluable advice on counter-offers, contingencies, timelines and more. Also helpful is expertise on what makes one offer or buyer more appealing than another.

Certain Expectations

When possible, buyers will expect you to be fair and flexible. You should certainly feel empowered to stand up for your best interests, but if you can accommodate certain requests, it can make for a smoother transaction.

Buyers expect you to be honest and up front about the condition of your property. A home inspection and seller disclosure documents help ensure that potential defects are identified, but a buyer also expects that you will not purposefully hide areas of concern.

Finally, buyers expect you to leave the home in a respectable condition. Moving day is certainly a hectic one, but it is no reason to leave behind unwanted items for the buyer to deal with. You are expected to leave the home broom swept and cleared of all items except those identified in the contract as transferring with the property.

ACCORDING TO SELLERS,

SILENCE ISN’T ALWAYS ‘GOLDEN’

When trying to sell a home, silence isn’t always golden especially when you’re expecting your real estate agent to call. In fact, it’s one of the leading complaints among sellers in the real estate market. Often times you find an agent who is more than willing to take on your listing, but once the relationship is made, the seller enjoys getting a call at least once a week.

“A seller should establish with the agent up front the expectation that regular communication will occur. Even if it’s just to check-in, the seller will be more satisfied being kept ‘in the loop’.

Keeping the communication lines open between the two parties assures the seller that the agent is keeping them apprised of any and all offers. In addition, agents often provide valuable tips on why prospective buyers weren’t interested. Often times, an agent is privy to the buyer’s dislikes of the property. For instance ‘this room’s too dark’ or ‘the kitchen has a funny smell.’ This allows the agent to give the seller constructive feedback and offer important tips on how to make the home more attractive to future buyers.

If you’re a seller and are not hearing from your broker, be sure to keep calling them until they get the message that you expect a regular update. If the broker doesn’t return your calls, leave a message for your broker’s office manager. The manager will see to it that your broker becomes more attentive to your listing.

Selling a home can be a lot of work and sometimes quite stressful. It is incumbent upon an agent to satisfy the seller’s expectations of routine updates, this will ensure the possibility of future business not to mention a successful sale. Furthermore, as a seller you must demand the communication exchange between you and your agent. If both parties work in a cooperative effort, the selling experience will be more successful and enjoyable for both the agent and the seller involved.

The Cost of Closing

When you are buying a home it may feel like every time you turn around there is a hand out for some unexpected fee or expense. This is probably especially true if you are a first-time buyer.

The fact is there are many steps along the way to a closing and each has a professional who must be paid for her time and expertise. These expenses often fall under the general heading of “closing costs.” These four items are some of the safeguards required by lenders who want to verify that the property is worthy of the loan.

1. Home Inspection: Most contracts include a contingency that requires a property to pass inspection.

2. Appraisal: The mortgage company also wants to make sure the home is worth at least the amount you agreed to pay for it. An appraisal by a third party determines the fair market value.

3. Survey: A professional survey of the property is often required to verify the boundaries and other property characteristics.

4. Title Search and Title Insurance: Your lender will hire a company that determines who is the legal owner of the property in question. The lender wants to verify that you are buying from the rightful owner and there are no liens or other claims to the property by other parties. And to safeguard against any oversights in this review process, an errors and omissions insurance policy is also secured.For more information about other closing costs, ask your real estate professional or lender.

A New Lending Landscape

First, this new approach to lending can reduce the risk that you be a victim of unscrupulous lending practices. As a result, this more stringent approach may work to your benefit.

Use this time to learn as much as you can about the current lending landscape. Read articles in the newspapers and online. Reach out to your Realtor and ask for his or her interpretation of the recent developments. It is also wise to spend time analyzing your own finances including your income, assets, expenses and credit score. If you know your own budget and financial qualifications inside and out, you will know what is realistic and what is too good to be true.

Once you have identified what you want and are prepared with your own facts and figures start making some calls. Banks and mortgage companies may have reined in their lending, but it is still a free and competitive marketplace. Search for the best rates and terms available. However, if you feel you may get a better offer in a few weeks or months, and your timetable permits it, wait a bit. The advice of your real estate professional will be invaluable when making this decision.

Finally, remember that the real estate marketplace still favors buyers. The inventory of homes exceeds the current demand in most locations, so you have the opportunity to be more selective and a little more demanding at the bargaining table.