Posted by Kim Adamof on Tue, May 19, 2009 @ 02:01 PM
The Triangle Business Journal reported today, more Americans are finally coming to terms with how much their homes are really worth, but many home owners in the South are still unwilling to come to grips with reality, according to Zillow's first quarter Homeowner Confidence Survey.
The new survey reports that 60 percent of home owners nationwide believe their homes lost value in the last year, . That's up from 57 percent in February.
Now, the reality check: Eighty percent of homes actually were worth less than they were 12 months ago, up from 76 percent in February.
"While homeowners are now more realistic when looking backward, they are still pretty starry-eyed when looking forward with three out of four homeowners believing that their own homes' prices will increase or be flat over the next six months," said Stan Humphries, Zillow's VP of data and analytics, in a news release. "Unfortunately, there are few markets we expect to perform this well."
However, a higher percentage of those living in the South are refusing to concede that their homes are worth less.
Zillow found 49 percent of Southern home owners believe their homes have lost value over the past year. In reality, 70 percent of homes in the region are worth less.
Half of home owners in the South also believe that the next six months will bring stabilization of their home values, while 24 percent believe their home's value will increase, and 26 percent believe their home's value will decrease.
Nationwide, 74 percent believe their home will not decline in value in the coming six months, effectively calling a bottom to their own home's housing slide.
When asked about future plans to sell, 31 percent of homeowners said they would be at least "somewhat likely" to put their homes on the market in the next 12 months if they saw signs of a real estate market turnaround.
"With almost a third of homeowners poised to jump into the market at the first sign of stabilization, this could create a steady stream of new inventory adding to already record-high inventory levels, thus keeping downward pressure on home prices," Humphries noted.
The survey results come on the heels of a National Association of Realtors report that showed a year-over-year decline of nearly 14 percent in the median sale prices of single-family homes nationwide. The Raleigh-Cary and Durham areas posted slight drops and ranked among the 45 healthiest metros in the country.
Let us help you figure out your home's value.
Posted by Kim Adamof on Thu, Mar 19, 2009 @ 02:28 PM
People who sell their home may be able to exclude the gain from their income. Here are seven things every homeowner should know if they sold, or plan to sell their house.
- Amount of exclusion. When you have gain from the sale of your home, you may be able to exclude up to $250,000 of the gain from your income. For most taxpayers filing a joint return, the exclusion amount is $500,000.
- Ownership test. To claim the exclusion you must have owned the home for at least two years during the five year period ending on the date of the sale.
- Use test. You also must have lived in the house and used it as your main home for at least two years during the five year period ending on the date of the sale.
- When not to report. If you are able to exclude all of the gain from the sale of your home, you do not need to report the sale on your federal income tax return.
- Reporting taxable gain. If you have gain which cannot be excluded, it is taxable and must be reported on your tax return using Schedule D.
- Deducting a loss. You cannot deduct a loss from the sale of your home.
- Rules for multiple homes. If you have more than one home, you may only exclude gain from the sale of your main home and must pay tax on the gain resulting from the sale of any other home. Your main home is generally the one you live in most of the time.
For more information see IRS Publication 523, Selling Your Home, available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Posted by Kim Adamof on Thu, Feb 12, 2009 @ 06:43 PM
I found this article by Realtor.org to be very interesting....
Home Sellers Seeking Professional Representation Rising
By Harika "Anna" Barlett, Senior Research Analyst
With housing inventory at its highest since the early 1980s, a greater number of home sellers understand the value of professional representation. This is understandable given that the housing market has been challenged in the past two years and inventory of homes for sale reached its highest point since the early 1980s.
The 2008 NAR Profile of Home Buyers and Sellers reveals that among recent home sellers surveyed in August 2008, the pure For-Sale-By-Owner (FSBO) sales - those cases where the seller did not know the buyer - remain historically low at 7 percent. It had been closer to 10 percent during the housing boom years.
Among the shrinking pool of FSBO sellers, the outcome results of such sales are highly questionable. FSBO sellers, who sold their home to someone they did not previously know, sold their homes within a median of six weeks. By contrast agent-assisted sales took a median of nine weeks. In addition, the median selling price as a percentage of the asking price was 97% for those FSBO sellers, compared to 96% among agent-assisted sales.
At first glance, FSBO transactions appear to be doing quite well. However, the median selling price of an open market FSBO home was $150,100, while the median price for agent-assisted sales was $211,000.
FSBOs have typically been more popular among lower income households trying to sell lower priced homes. So one may argue that price difference results between FSBO and agent-assisted sales is due to characteristics of lower-valued and smaller-sized FSBO homes. Indeed, the average home size in FSBO sales is smaller. The median home size in open market FSBO sales is 1,515 square feet, compared to the median of 1,850 square feet in agent-assisted sales.
However, when we compare median prices per square foot of home, the data show that it was $92 in FSBO sales, and $116 in agent-assisted sales, with a difference of $24 per square foot of home sold. Considering the median size of 1,515 square feet in FSBO sales, this translates into a price difference of $36,360 on a size-adjusted base. So the claims that FSBO sales are getting completed faster and the owners get a price closer to their asking price are misleading. The FSBO homes, given the nature of the market, are being listed at deeply discounted prices. Because lower prices get buyers' attention, any subsequent price concession afterwards tend to therefore be small. FSBO owners have in essence mispriced their homes too low.
The chart below shows the price comparisons between FSBOs and agent-assisted sales. The FSBO segment is broken out between those sellers who already knew the buyer to delineate arms-length transactions like those that with occur within a family or friends.
Regarding the length of time a home was on the market prior to sale, the time will obviously be much shorter for mispriced, discounted homes. That result is revealed in the chart below. The length of time a home was on the market prior to sale also changes by location, in addition to sale method. In open-market FSBO sales, the median time on the market was six weeks, compared to the median of nine weeks for agent-assisted sales. This difference gets bigger in the sale of those homes located in a small town - five versus ten weeks. However, it is smaller for those sales that take place in a suburban area (six versus eight weeks); and it is reversed in those sales that take place in an urban area. In urban areas, open market FSBO sales take a longer time, a median of ten weeks, compared to the median of eight weeks for agent-assisted sales.
Consumers are smart. In more difficult times for housing and the economy, a greater number of people are seeking professional real estate advice. Consumers in the end are also greatly benefiting as a result of having sought out professional representation.
Posted by Kim Adamof on Tue, Feb 03, 2009 @ 10:14 AM
Short sales are a buzz word in real estate right now. Lots of agents are taking classes to learn how to handle short sales.
If you want or need to sell your home, do you know how to figure out if you qualify for a short sale? Not every homeowner who potentially comes to the closing table with money is a candidate for a short sale.
The first thing to figure out is how much can you REALISTICALLY sell your home for. Then determine how much your mortgage payoff is for. With all the closing costs including your mortgage payoff, if you need to come to the table with money, then on to the next question.
Are you at least one month behind on your mortgage? If the answer is no, then you don't qualify.
The best advice is to contact your lender to see where you stand and what they'd be willing to accept. A qualified short sale agent with a track record of getting to the closing table can help you navigate.
I do offer a course for home sellers "How to Short Sale Your Home" on my website. Check it out and let me know what you think.
Posted by Kim Adamof on Mon, Feb 02, 2009 @ 01:44 PM
When I work with buyers, alot of times they'll say they don't want to live in a neighborhood that has a Homeowners Association.
To that I say, "It depends on what you are looking for."
Homeowners Associations have a bad reputation for annoying people, increasing fees, and not doing much with the money collected.
That's probably true in some areas of the country.
You can find a house on an "unrestricted" lot. That means the county enforces county codes & laws. You can't control that your neighbor has 15 junk cars in his front yard or the other neighbor decided to move a mobile home into the back of his yard.
It also means that you can run a business out of your home. As long as you abide by county rules you can do whatever you want.
Most subdivisions have different levels of covenants which are recorded in the Register of Deeds office. Some are very detailed and some are not. Its important to read the most current version of the covenants when purchasing a home.
Even though a subdivision has covenants, it doesn't mean they have a Homeowners Association.
Subdivisions without a formal Homeowners Association depend on neighbors to organize themselves for managing the front entrance and open space -- or not. There are many subdivisions that do not have an entrance sign or maintain the sign that was originally installed.
If a neighbor wants to complain about another neighbor and try to enforce the covenants, they will need to directly confront their neighbor about the issue. If they don't get anywhere then they will need to go to the county and file a complaint.
The job of the association is to enforce the covenants and protect the continuity of the subdivision.
I have found 2 different "levels" of Homeowners Association around the Raleigh NC area.
First is the basic "sign maintenance" association. The homeowners collect a small annual fee from all the neighbors. The fund is used to maintain the front entrances and open space. Lawncare companies are usually paid from this fund to mow and mulch. Sometimes an outside Homeowners Association company will collect and manage this fund.
The more in-depth homeowners association has higher fees but at the same time, cover more services, such as a pool.
Homeowners Associations are managed by an outside third party. If a neighbor has a complaint, there is someone to go to.
Our home is most likely the biggest investment we make in our life so we need to protect our investment. Buyers are more likely to buy into a neighborhood that is well maintained because they are investing into their future.
No matter what type of HOA you have, ultimately they are there to protect your investment.
Posted by Kim Adamof on Thu, Jan 15, 2009 @ 07:47 AM
What is Listing Syndication?
When an agent or company tells you they will put your house on hundreds of websites, do they really? The answer is yes, for free.
There are websites out there that want me to enter my listings to fill their database. In return, they'll send that information about my listing to other sites such as Yahoo, Google, MSN, AOL, Zillow, etc. The biggest way for Google, Trulia, Zillow, and all the search sites out there to get inventory is from realtors entering their listings.
These websites are FREE for us realtors to upload listings. They, of course, have paid features.
Discount Brokers rely heavily on this type of service since they don't have much of a marketing budget for listings. Any listing in the Raleigh MLS will be syndicated through a listing syndication website the Raleigh Board of Realtors partnered with.
Overall the name of the game is EXPOSURE!!! That's what these websites offer sellers.
Posted by Kim Adamof on Wed, Jan 14, 2009 @ 08:00 AM
Selecting a Real Estate Consultant who will represent you in the marketing and sale of your home may be one of the most important decisions of your life. This selection process is just as important as selecting any other professional such as your family doctor, dentist or attorney. That individual selected should be working for you, keeping at all times your best interest in mind. That person will be directly involved in advising and counseling you with regard to a large portion of your personal assets.
First of all, that person must have your confidence and trust but also you should have specific criteria for choosing that special person. I suggest that you evaluate that person in all the following categories.
- Appearance and demeanor
- Energy level and attitude
- Integrity, including honesty and sincerity
- Home enhancement experience
- Pricing strategy
- Strength of marketing plan
- Knowledge of the local market
- Compatibility; you should enjoy working with your consultant
- Willingness to discuss brokerage investment and to cover all marketing expenses
- Commitment; willingness to work long, hard and smart for YOU
Click here see my professional credentials which I believe you will find valuable in your decision making process. I know I can provide you professional assistance with any of your real estate needs and help you make GOOD DECISIONS.
PS. Perhaps the most common mistake home sellers make in the selection of a Real Estate Consultant is to allow agents to "bid" on the listing. In other words, sellers have a tendency to hire the agent who presents them with highest estimated value for their home. I strongly recommend that home sellers choose their agent FIRST, based on their integrity, skill, and the strength of their marketing plan - NOT because he or she told you a PRICE you wanted to hear.
Posted by Kim Adamof on Tue, Jan 13, 2009 @ 08:00 AM
I enjoy showing houses to buyers. I see alot of sellers make the same mistakes which end up costing them a sale from my buyer. Here are 5 excellent tips to help you get an offer from a buyer.
1. Help buyers feel at ease while touring your home by not being home. Try to remove children and pets as well. Its very uncomforable for buyers when sellers are home, even when the seller sits out front or in the back yard.
2. Turn on ALL the lights, or let the buyers agent turn them on, for the entire showing.
3. Open drapes and blinds in the daytime, close them at night. Sunshine is important during showings.
4. Strong cooking or smoking odors can ruin a sale. Make sure your home is fresh for showings. Read my blog article on odors.
5. Small signs highlighting the special features of your home will make sure buyers see all the benefits.
Posted by Kim Adamof on Sat, Jan 10, 2009 @ 10:00 AM
Distraught sellers who need to generate more interest in house that has been languishing on the market for months should consider 10 steps from MSNBC financial guru Laura T. Coffey
- Can the clutter. Pack up knickknacks, pictures, piles of paper and furniture that makes the place look crowded.
- Let the light in. Take down any heavy drapes.
- Scrub-a-dub-dub. Shampoo soiled carpets, Scrub the front door. Repaint scuffed walls. Tidy up the lawn and trim the shrubs.
- Get moving on the "honey do" list. Fix everything that is in need of repair.
- Enhance the view. Erect a fence or plant shrubbery to improve or obscure the view of unattractive nearby properties or streets.
- Try weeknights. Holding an open house on Wednesday may attract a different crowd.
- Ask for criticism. Consult with buyers' agents for their feedback.
- Send the owners away. Ask them to vacate when potential buyers come around so they can talk freely.
- Rent to own. Give a potential buyer a little credit .Becoming a landlord may keep you from having to shoulder two mortgages.
- Drop the asking price. And figure out the lowest amount you're willing or able to accept.
Source: MSN Money, Laura T. Coffey (01/06/2009)
Posted by Kim Adamof on Tue, Jan 06, 2009 @ 10:05 PM
Is your house on the market not selling? Are you getting feedback about odors or smells?
Buyers react very strongly to smells. It doesn't matter if it is trash, pet smells, or simply the smell of mildew. Odors can wreck havoc on one's nose and they are simply nerve/nose wracking.
Although air fresheners can help mask some smells, they don't always do the job of completely removing odors. You have to be VERY cautious with trying to cover up or mask bad odors with air fresheners. There are many buyers with allergies and asthma.
So, before you get frustrated or hire an expensive odor removal professional, you can take control of those odors before they take control of you. Here are 5 tips for removing odors from your home.
Sniff, remove and clean. First of all, you should use your nose to do the "sniff test" to detect general odors. This means that you should concentrate on sniffing out the odor by utilizing your sense of smell. Simply, sniff around the area and determine where the pungent smell is coming from. After removing the offensive culprit, you should wash the odorous area with warm water and use an antibacterial agent, like Dawn antibacterial soap. Once it is completely clean, you can then air out the area. Follow up with an odor-neutralizing spray like Fresh Wave or put 1/2 cup of vinegar in a bowl and leave it in the affected area for an even fresher and cleaner scent.
Remove Pet Odor. You should get down low and truly sniff out and smell the area to find the urine stain. Once you find the stain, you should blot out the area with a white paper towel and then use an enzymatic cleaner to completely remove the area which will partially get rid of the odor. Once it is completely dry, you can vacuum with baking soda or some other type of carpet powder, specifically for pet stains. For those older odors that you can't find with your nose, you should use a pet stain backlight that allows the stain to be seen in fluorescent light. Once you see it, you should attack and then clean it thoroughly with an enzymatic cleaner.
Get Rid of Cooking Odors. To remove pungent cooking odors that come from cooking cabbage, cauliflower, etc, you should add a tablespoon of lemon juice to the cooking water. You can also add lemon juice to your dishwasher cup so that it smells lemony clean. For smelly cutting board, you should clean it with an antibacterial soap and then rinse it with baking soda and water. If you want to avoid having stinky hands while cleaning, rub vinegar on them before you get started.
Remove Carpet Odor. To remove odors from carpet, you should take a box of baking soda and spread it all over the floor. Leave it there overnight and then vacuum the floor the next day. You'll then have a fresh smelling and aromatic floor. For really tough odors, you may have to steam the floor first and then use the above mentioned baking soda treatment.
Remove Sink Odors. For really terrible sink smells, you should take some detergent and mix with some hot water and then pour it in the sink. For stubborn smells, you should take some bleach and hot water and then pour it down the sink. If you notice a sewer smell emanating from the sink itself, you should pour some commercial cleaner down the sink's small hole. If this doesn't work, you may have to call in a professional plumber.
For more tips, go to Mrs. Clean House Cleaning Specialist website.