Series: 20 Best-Kept Real Estate Secrets - Part III

Welcome back to the last session we have for Sellers this summer.  No matter what the economy is doing, these tips are useful in any market.

6.  Don't Over-Upgrade
Before you start knocking down walls in a "what-started-as-a-do-it-yourself-just-turned-into-my-nightmare" sort of way, double think it.  Big Mistake.  When it comes to a home, minor improvements are more important in the end than the major ones.  Simple fixes are re-painting walls and getting inexpensive new curtains.  Always ask yourself, "What things ar getting the most use in this home?"  Handles, closet tracks, leaky faucets...fix those first.  When buyers see little problems like those, it makes them think more is wrong.  Besides, you can spend $40,000 on a new kitchen that won't fit that perfect buyer's lifestyle, anyway - so just make sure there is no water on the floor.  Leave the dreaming to them.

7.  Take the "Home" Out of Your House
As much as everybody rants and raves about your bubbly personality, take it out of your home.  The more personalized your home is, the less buyers can see themselves in it.  Your pride in your home could cost you in the long run.  Get rid of about 1/3 or your things, showcase your floor plan and maximize space.  Also, consider using a home stager to set it up in the best possible light - it could be the difference between something they "may" like and something they "have to live in."

8.  Kitchen First
Remodeling your kitchen will, on average, get you about an 85% return on your investment.  Even minor fixes can make a so-so kitchen shine - paint the walls and change the hardware on the cabinets.  If you can't afford to replace all of the appliances, try to put in at least one stainless steel appliance.  That way, you'll have buyers saying, "At least we won't have to buy a "fill-in-the-blank" instead of "We'd have to re-do the entire kitchen."  Lastly, save the bright blue and yellow kitchens for the Greek Isles - keep yours neutral.  As nice as it may look to the eye, the buyer's mind is figuring out exactly how much it will cost to fix it.

9.  Always Be Ready To Show
Here is a reality that not many Realtors will tell you as a seller:  You are now on buyer schedules.  Unfortunately in this day and age, that might mean you will have a showing at 7:00 or 8:00 in the evening.  That also means you could have a showing at 7:00 or 8:00 in the morning, which means the home needs to be in tip-top shape at all times.  On average for today's market, it typically takes between 8-9 showings for every bid you get.  So DVR that "CSI: Miami" and get out of that home!  Buyers can't see their new lives in your home with you on the couch.

10.  First Impressions are the Only Impression
Though your new soaker tub/whirlpool in the master bath is a great new feature, buyers are judging the exterior of your home before they even walk through the door.  The average buyer takes a measly 8 seconds to decide on buying your home...so you know what that means?  Your entranceway could be one of the most important "humps" to push them over.  Fix it up, clear the clutter, and make it inviting.  After all, no buyer will remember your fancy new tub if they have to step over muddy shoes, backpacks, and coats.

That's it for the Selling Side!  I hope everybody learned a little (if not a lot)...and keep on improving!

Series: 20 Best-Kept Real Estate Secrets - Part II

Welcome back to the Series of the Summer!  Let's take a look at the buyers today, shall we?

BUYING SIDE
1.  Keep Your Money Where It Is
Congrats on the new BMW that will match perfectly in the driveway of that home you have an offer on - unfortunately, the car might be the only place you have to live in once the mortgage underwriters see that on your credit.  Loan Status: DENIED.  In the 3-6 months leading up to the purchase of a home (no matter what the price is), don't change anything in your financial DNA.  Lenders want to see a complete and risk-free paper trail, so keep your assets where they are.  The age of technology we live in doesn't leave much room for error on your end, so don't try to paint that "false picture" by randomly shuffling your birthday cash advances you convinced your grandma to send you into your "New Home" account.  It won't get you very far.

2.  Get Pre-Approved
Chances are, any Realtor that is worth your time will make sure you have a pre-approval letter from a lender.  This is done for a few reasons:  1) to make sure you aren't falling in love with a home that is out of your price range, and 2) to make sure you aren't using the Realtor as a tour guide.  It's also good to remember the difference between a "Pre-Qualification" and a "Pre-Approval."  A Pre-Qual only requires basic information, and generally does as much good as spinning a "Wheel of Fortune" to see what they will give you - unreliable.  A Pre-Approval requires an actual mortgage application and financial background, giving the lender a pretty clear picture of what you're capable of.  So go ahead - flex those financial muscles and show 'em what you got.

3.  Draw The Line
Save the awkwardness at the Fourth Of July BBQ with the neighbors.  Get a property survey done to make sure you have a good idea of where your property lines are.  Some Realtors might say it's a nuisance, but it will be completely worth it in the end when you figure out your land actually goes back another 20 feet from where you thought.  If you don't have the documentation from the start, you could have extra legal troubles, fees, hassles, and costs down the road when your neighbor decides to build an amphitheater in his backyard that has most of rows "R" through "V" in yours.

4.  Don't Time the Market
Trying to guess when the market is at rock bottom is like trying to guess the number of jellybeans in that jar at the carnival - with some careful studying, you can be close, but you'll rarely be spot-on.  Don't obsess with it - Real Estate goes up, then down, then back up again, etc.  Instead of waiting for "THE" low, just buy "IN" the lows.  People often ask me when the best time to buy is, and my answer is always simple:  The best time to buy is when YOU find your dream home...period.

5.  Bigger Isn't Always Better
Won't your family be so impressed this Thanksgiving when they see you have the largest home in the neighborhood?  Absolutely - but future buyers probably won't.  The biggest homes in a neighborhood generally only appeal to a small audience.  Your home value (even if it is huge) will only go up as much as the other homes around you.  Real Estate 101:  Buy the worst home on the block, and make it a fixer-upper.

Again, I hope you're writing this stuff down.  Back to sellers next week!