Entries from April 2007
Have you ever heard of the “home staging” profession? These individuals assist sellers with presenting their home in a fashion that will increase the likelihood of a full price offer. While the value added by such professionals is often worth the investment, many sellers can put the basics into action themselves, and enjoy the same benefits.
There are several “quick fixes” that stagers commonly recommend, and here are some highlights for your consideration as you prepare to market your home.
First, the dirty work. You’ve got to clean your windows, but don’t forget about washing all the screens to let in as much sparkling sunlight as possible. In tiled bathrooms, clean and regrout the floors. You know what they say about cleanliness!
Second, create space in two ways. In the kitchen, roll away any movable utility carts and clear clutter off the countertops and the refrigerator. In the rest of the home, move the furniture one to two feet away from the walls to create the illusion of more space.
Finally, impart a sense of warmth and coziness by making up beds with colorful sheets and comforters with matching window treatments. All of these preparations should make it that much easier for the buyers to imagine how comfortable they will be in this home. Your pride of ownership will encourage them to feel the same!
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Happy Investing, Kendall E. Matthews
Phoenix, Arizona Investment Real Estate
P.s. You can click here to learn about our investment strategies.
Categories: Articles of Interest
Fellow Real Estate Investors,
Here is the Foundation to Success that I have been taught by my real estate investment mentor. Follow these 10 steps and you to will have a greater chance to be successful in your future endeavors.
- Have a Powerful Why.
- Find Opportunities.
- Evaluate Properties.
- Write Powerful Offers.
- Put property Up For Sale.
- Create & Enhance Equity.
- Short-term: Sell for a profit.
- Long-term: Refinance for an equity position
- Prosper.
- Teach Others.
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Happy Investing, Kendall E. Matthews
Phoenix, Arizona Investment Real Estate
P.s. You can click here to learn about our investment strategies.
Categories: Real Estate Development · Real Estate Investing
A country church once paid $1,500 per acre more than “fair market value” for two acres of land adjoining the existing church property. In another transaction, a young couple agreed to accept $7,900 less than “fair market value” for their three-year-old tract home.
Once “fair market value” is established on real estate, other factors such as availability and time pressure may influence the final sales price. The church wanted an additional two acres adjoining church property to use for a picnic and fellowship area. Property located in any other spot would have been unsuitable. Thus the adjacent land held more value for the church because of its location, and they were willing to pay the price.
The couple that accepted $7,900 less than fair value for their home exemplifies the concept of time pressure. The husband, a middle management candidate within his company, was offered a promotion in another state. He was anxious to move and assume his new responsibilities. They weighed a higher selling price for their home against a fast move to the new job. The new job won out, resulting in a lower than fair market value sale price.
Keep in mind that even when the final sale price of real estate is higher or lower than “fair market value,” both buyer and seller may experience complete satisfaction with the transaction.
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Happy Investing, Kendall E. Matthews
Phoenix, Arizona Investment Real Estate
Categories: Articles of Interest
Good morning Investors,
Question, can you do cash out refinance after your property has been place on the real estate market, but didn’t sell?
The answer is no… and yes.
Yesterday, I talked with my home mortgage underwriting team. They stated that a property owner has to wait six months after their listing has expired before they can do cash out refinance.
Why?
The refinance lenders don’t want to remove equity from a property that didn’t sell and use those funds to buy another property.
However, they will allow you to immediately do a refinance mortgage rate and term.
The moral of the story is this: Since equity provides a zero rate of return, have as much equity as possible separated into a side account from outside of the property. That way no one can tell you what you can and can’t do with your money!
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Happy Investing,
Kendall E. Matthews
Phoenix, Arizona Investment Real Estate
Categories: Articles of Interest
In slower housing markets, most sellers understand that attracting buyers becomes more of a challenge. With more homes for sale at ever more competitive prices, buyers tend to have more power to choose and negotiate under these circumstances.
What steps can you take to insure a faster sale at a higher price? First, seek representation. Over the last ten years, the number of homes that sold “by owner” fell by one third, and that statistic includes all markets, both hot and cool. What does that trend mean? Sellers have come to realize that real estate professionals are better equipped to produce top dollar offers, especially in slower conditions.
In 2006, the National Association of REALTORS® reported that the median selling price for homes listed through agents was 16% higher than those homes that were sold “by owner.” Beyond putting more money in your pocket, an agent also saves you untold headaches associated with marketing your home, orchestrating showings, and coordinating paperwork.
Last year, a significant number of unrepresented sellers ended up finally turning to a professional. Why wait until your home has already become stale inventory to reach the same conclusion? Remember that what works in a slow market also holds true in very active markets – a professional representative simply brings more knowledge and experience to the table, resulting in higher offers in less time.
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Happy Investing,
Kendall E. Matthews
Phoenix, Arizona Investment Real Estate
Categories: Articles of Interest
There are all sorts of loans for all types of homes, and “fixer uppers” are no exception. Lenders can offer attractive terms to buyers who want to renovate their purchase. One well-known lender offers three different types of renovation loans, with the most popular requiring a downpayment of only five percent.
So how does it work? Along with their application, borrowers submit architectural drawings of the proposed improvements. Then a completed home value is determined and financing terms are offered, with interest rates usually coming in just slightly higher than those on conventional loans.
Payments are often separated into six parts during the renovation, with disbursements issued at the satisfactory completion of each stage of the project. If you’re familiar with construction loans, you’ll find that it works in a similar fashion.
What’s really attractive about purchase-plus-renovation loans is that some lenders will even roll the first six months of interest into the total loan amount. That can free you from making payments during those first six months while you’re heavily involved in your improvement project and may even need to be living elsewhere.
In any case, there is a dizzying array of financing options out there, and it’s best to start the discussion with a real estate agent who is well versed in matching homes to buyers and buyers to loans!
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Happy Investing,
Kendall E. Matthews
Phoenix, Arizona Investment Real Estate
Categories: Articles of Interest
As you prepare to sell your home, you probably expect to have a For Sale sign in the yard, information on the Multiple Listing Service, and perhaps an Open House. If you expect top dollar in today’s market, you can count on a real estate professional to provide many more services in addition to those three most obvious elements of successful marketing.
The agent will handle all aspects of the sale, from preparing your home to attract buyers through the negotiation of the purchase offer. Somewhere in the middle of all that is effective marketing through online advertising, targeted mailings, and personal networking, not just on behalf of the agent, but through a whole team of professionals. When that offer comes in, all the experts in the office spring into action, helping the entire process move along smoothly to a satisfying conclusion.
Your agent has a personal stake in selling your home for the highest price possible in the shortest time possible. If your listing languishes on the market, it becomes like stale bread that might sell for half price at the supermarket. Time and money are directly related, whether we’re talking about bread or houses. Price your home competitively from the start, present it in the finest manner possible, and market it through the expertise of a professional supported by a network of experts.
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Happy Investing,
Kendall E. Matthews
Phoenix, Arizona Investment Real Estate
Categories: Articles of Interest
