The Sweet Spot Of Pricing Your Home

 

When you and your REALTOR^® sit down to price your home, you'll be looking at competitive homes that are the most similar in size, location and amenities as your home. You may find that prices can be thousands of dollars higher or lower. It's tempting to pick the highest price and say, "Let's list it here." But what if your home doesn't sell at that price?

High prices are a strategy that can work in an accelerating market, but it's risky. Your home can sit for months without selling and you'll end up marking the price down, perhaps lower than it should have sold for in the first place.

Pricing your home is a science. The science is choosing the right price at which your home will sell quickly. How do you do that? By analyzing your local market conditions and where your home fits in the spectrum.

The only way your home will sell at the highest price possible is if your buyer agrees to your home's value. To best determine market value, you have three important tools: CMAs, appraisals, and your REALTOR's^®knowledge of the market.

The comparative market analysis

A comparative market analysis (CMA) is a side-by-side comparison of similar homes for sale as well as homes that have recently sold in your neighborhood. REALTORS^® use CMAs to compare the features that make each home unique, including age, location, number of bedrooms, baths, room sizes, updates, condition, etc.

As a seller, you should be able to see where your home fits -- in the top or lower price range of similar homes. For example, if a similar home to yours has been recently renovated with a new kitchen, expect it to sell for more than your home if your home has not been improved.

The appraisal

An appraisal is a market analysis performed by a professional appraiser using a variety of sources, including multiple listing system data and conforming loan formulas.

Appraisers most often work for lenders to determine market values, so that lenders can weigh the risk of making a loan to a homebuyer. Appraisals come after an offer is made when the buyer applies for a loan. Even though the buyer pays for the appraisal, the lender uses it to determine whether or not to make the loan at the contract price.

Other market data

Your REALTOR^® has access to data that may not be public through the Multiple Listing Service. This data is provided to broker members to track market trends over weeks, months and years. Some brokers pay data companies for specific markets that help them plan their business, such as the number of listings on hand, which zip codes are the hottest, and whether closings are trending up or down over last month or last year.

Your REALTOR^® uses all this data to help you hit the sweet spot of pricing. That's high enough to reflect your home's value, but attractive enough to buyers to get it sold quickly. 

Article on Realtytimes.com

Courtesy of the Lina Arbelaez Group.

 

When you are buying or selling property in today's market, it's important to have confidence in your Real Estate professional. The Lina Arbelaez Group’s commitment as your REALTOR® is to provide you with the specialized Real Estate service you deserve.

 

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why The Lina Arbelaez Group’s goal is to keep you informed on trends in Miami Real Estate. With property values continuing to rise, Real Estate is a sound investment for now and for the future.

As local Broward & Miami-Dade area experts with knowledge of the communities, Our objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling or would just like to have additional information about Real Estate in your area, please don't hesitate to call 954-600-8739, visit our website, or e-mail premiersouthfloridahomes.info@gmail.com

 

 

 

 

 

18 Inexpensive Ways to Improve Curb Appeal When You're Selling a House

When you’re selling a house, you don’t want potential buyers to drive by and keep on going. But if your home doesn’t have curb appeal—if it doesn’t look so great on the outside that people have to stop and take a look—that’s exactly what’s going to happen.

“A home’s curb appeal is always critical, since it’s the first impression for potential buyers,” says National Association of Realtors President Steve Brown, co-owner of Irongate, Inc., Realtors in Dayton, Ohio. “That’s why exterior replacement projects offer the greatest bang for the buck. Projects such as entry door, siding, and window replacements can recoup homeowners more than 78 percent of costs upon resale.”

But don’t freak out and exclaim, “I can’t afford to replace my windows and siding.” Oftentimes improving curb appeal can mean just doing a few small projects that can have a large impact. Many don’t cost a lot of money.

I spoke with three real estate professionals for their suggestions on how to improve your home’s curb appeal on the cheap. Here are their tips.

• Wash the windows.
• Evaluate foundation plantings, and trim back or replace as needed.
• Update the light fixture at the front door.
• Repair or install a new mailbox.
• Replace window treatments inside the house if necessary. “Take a look at the window treatments in the rooms on the front of the house,” suggests DeeDee Bowman, a Realtor with Coldwell Banker Hearthside in Lahaska, PA. “How do they appear from the street or front walk? Update or eliminate if needed.”
• Repair the front walk if it is cracked or heaved.
• Remove dead tree and shrub branches.
• Mow the lawn.
• Power wash your house. Before you hire a professional for this service, check out the Windex Outdoor Multisurface Cleaner, which attaches to a garden hose. I used this product when I was selling my old house, and it cleaned up our vinyl siding and windows so easily.
• Clean the entryway, front lights, and walkway of cobwebs, tree debris, dust, dirt, etc.
• Add colorful, potted plants along your walkway or entryway. “You can often find smaller plants on sale at hardware stores, flower markets, or gardening and home improvement stores,” suggests Romunda Craft, a Realtor with Century 21 Imperial Realty in Daly City, CA. “Another alternative—small succulents planted together in larger containers.”
• Paint your front door. “Doors leave a first impression as you enter the home,” says Inez Tomonelli, a Realtor with Lyon Real Estate in Roseville, CA. “Be sure that it is clean, or even add a fresh coat of paint or new stain.”
• Clean and sweep the driveway.
• Store all yard equipment, including children’s toys.
• Find somewhere else to park any extra cars, boats, trailers, or RVs.
• Do not use the porch for storage.
• Clean up after your pets.
• Store garbage cans where they are not visible from the street.

Curb appeal is the difference that sells nearly half of all houses on the market, so says the National Association of Realtors. If you’re getting ready to sell yours, investing some time and a little bit of money in improving your home’s curb appeal seems like a no-brainer.

Article on Parade.com

Courtesy of the Lina Arbelaez Group.

When you are buying or selling property in today's market, it's important to have confidence in your Real Estate professional. The Lina Arbelaez Group’s commitment as your REALTOR® is to provide you with the specialized Real Estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why The Lina Arbelaez Group’s goal is to keep you informed on trends in Miami Real Estate. With property values continuing to rise, Real Estate is a sound investment for now and for the future.

As local Broward & Miami-Dade area experts with knowledge of the communities, The Lina Arbelaez Group’s objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling or would just like to have additional information about Real Estate in your area, please don't hesitate to call 954-600-8739, visit our website, or e-mail premiersouthfloridahomes.info@gmail.com

 

 

PROS AND CONS OF BUYING A FORECLOSED HOME

For many people, buying a home is the largest purchase that they'll make in their lifetimes. Supply of homes on the market for sale, down payment amount, neighborhood quality and the house's condition are just some items on the checklist of what a potential homebuyer should consider before making a purchase. And stress, time and money concerns inevitably take a toll on anyone who's in the market for a home.
However, there are some ways that you could reduce the costs of the homebuying process. For example, buying a foreclosed home presents a unique opportunity, as well as having some major drawbacks. (See related: Buying Foreclosures at a Bargain Price.)

What Is a Foreclosure?

A foreclosure is series of actions in which a lender attempts to retrieve the balance of a loan they had previously issued to a homeowner who no longer can afford to make principal and interest payments on their mortgage. The lender has several options that it can pursue, including revising the payment schedule to make the loan more affordable for the homeowner or putting the house up for auction. Or the lender, most commonly a bank, can take ownership of the property with the hopes of selling it themselves. When a bank intends to do the latter, it typically uses a Multiple Listing Service (MLS), which allows the home to be viewed by the public.

The Pros

Discounted Price
Foreclosed homes are found throughout the United States, in a variety of neighborhoods. These properties have the potential of being marked down significantly from other properties in the same area. So this circumstance can create the opportunity for someone to purchase a property at a considerable discount, enabling them to buy a property that otherwise would have been unavailable to them.
Appreciation Potential
If there are savings on the acquisition side, the lower foreclosed price improves the likelihood of the buyer realizing a gain on their investment sometime in the future. If the foreclosed home is sold for less than what similar properties on the same street or division are worth, the buyer's percentage increase could be greater if there's a general rise in value for all homes in the neighborhood.
Bargaining Power
If their timing is right and if they follow proper negotiating tactics, a prospective buyer can use the bank’s possession of a foreclosed home to their advantage. The truth of the matter is that banks are usually better suited to be issuing loans to homebuyers than they are selling homes directly. Financial institutions typically want to rid themselves of foreclosed properties quickly (for a reasonable price, of course). Their aim is to secure as much of the original loan amount as possible. So the longer that the bank has held the property, the greater the odds that they will seriously consider lower offers.

Cons

Unpredictable Costs and Damages
When foreclosures are placed on the market for sale, they are listed “as-is.” In other words, the bank doesn't claim any responsibility for the current condition of the property, nor will they make any repairs before it is sold. Fortunately, a home inspection report can reveal many potential problems with the house and a general contractor or handyman can provide a potential buyer with repair estimates.
The problem lies in what sometimes isn't detected in these assessments (and don’t forget that repair estimates aren’t guaranteed figures, either). Homes that have sat dormant for months or even years have likely been exposed to the elements and thus have a substantial risk of some kind of damage. Mold, impaired plumbing and wood rot are just a few things that aren't always found on an inspection report but can wreak havoc on the owner of a foreclosed property, long after the closing paperwork is signed. (For more, see: The Pitfalls of Buying a Foreclosure House.)
Additionally, delinquencies such as back taxes and tax liens can add further costs to an otherwise desirable house. Whatever is owed the government must first be paid and settled before the buying process can go forward. This leads us to the next drawback of buying a foreclosed home.
Slow Process
The preceding complications often mean lots of paperwork. Typically, foreclosures will have a number of additional documents that have to be completed to prepare for the closing, which isn’t always so timely. Response times between the bank and other involved parties can be sluggish and could seem like an eternity for an eager prospective homeowner. Serious damage found in the house can result in a lower home appraisal, which may affect the buyer's ability to secure a loan. Some lenders won’t lend below a certain dollar amount because the profit potential on a lesser loan isn't worth the risk.
Increased Demand
As with any market, whenever there's a chance to acquire something at a discount from the going rate, demand will soar. So increased buyer interest and competition are inevitable when dealing with worthwhile foreclosed properties. Very often, a foreclosed home can be priced below the other homes in the surrounding area (these homes are otherwise known as comparables, or comps). When homebuyers and even investors identify these attractive deals, numerous offers can come in rapidly and turn into a bidding war in some instances. So what was once an under-priced home in a great neighborhood can rapidly become a costly property.

The Bottom Line

On the surface, foreclosed homes can seem awfully appealing. However, costs can be extremely unpredictable and underlying damages could make a property undesirable. The buying process is often sluggish, which might spur second thoughts in the minds of buyers, while heavy demand for enticing foreclosed properties might push some hopeful purchasers away.
With all this being said, foreclosed homes can wind up being incredible deals. Buyers have the unique opportunity to pay below-market value for homes which wouldn’t be available under normal circumstances. Paying less makes having a greater price appreciation more achievable for buyers, who have the potential to sell the house for a more sizeable gain sometime in the future. If nothing else, buyers need to perform due diligence by scheduling thorough home inspections and getting multiple repair estimates. If done responsibly, purchasing a foreclosed home can allow a buyer to reap a myriad of benefits for many years to come. (Suggested further reading: Avoiding Foreclosure Scams.)

Article on Investopedia.com
Courtesy of Lina Arbelaez Premier Homes.

When you are buying or selling property in today's market, it's important to have confidence in your Real Estate professional. Lina Arbealez Premier Homes commitment as your REALTOR® is to provide you with the specialized Real Estate service you deserve.

When you are an informed buyer or seller, you'll make the best decisions for the most important purchase or sale in your lifetime. That's why our group's goal is to keep you informed on trends in Miami Real Estate. With property values continuing to rise, Real Estate is a sound investment for now and for the future.

As local Broward & Miami-Dade area experts with knowledge of the communities, Premier Homes objective is to work diligently to assist you in meeting your real estate goals.

If you are considering buying or selling or would just like to have additional information about Real Estate in your area, please don't hesitate to call 954-600-8739, visit my website, or e-mail info.premiersouthfloridahomes@gmail.com