Relocation: Moving Home - A Stressful Time

Moving home involves a lot of work. There are also a lot of financial considerations that people generally are not used to. Engaging a solicitor, arranging the mortgage, paying for bridging finance if it is necessary, seeking the best selling price for your home, and the best buying price for the home you are moving into, all of these are very large and important transactions that cost a lot of money and may also cause you a lot of stress.

Add to this the stress of actually moving home. There may be some emotional attachment to the home you are leaving and you may find this very difficult. Then you have all the practicalities of dealing with utility companies, having mail redirected, cancelling your services and informing friends and business of the move.

Traumatic

And this has not even begun to consider the hassle of packing up your belongings, arranging for a removal company, and transit insurance if you think you need it, and unpacking everything at the other end. It is really no wonder that so many people consider moving house such a major and traumatic experience.

However, if you take a step back, the situation is really not that bleak. Most people end up moving home for very positive reasons. These will include getting a new job, or moving to a bigger property. Therefore, as well as all the stress there is also a lot of joy and excitement involved.

Get Sorted

You can also use the move as a chance to clear out your possessions. Look through everything before you start packing and decide what things you do not want to take with you to your new address. If there are a lot of clothes you can pack them up and give them to a charity shop. You should think about getting boxes and old newspapers gathered up. Boxes will be available from local shops and you can save your newspapers for wrapping breakables.

If you are moving everything by yourself, you can rent a van to help you out. Make sure it is a suitable size. If the van is too small you'll find yourself doing multiple trips, and if it is too large you may not be able to park, or even drive it. You should be comfortable with driving the van so give it a try before loading it up to make sure. The alternative is always to hire a professional relocation company.

Market Value of Real Estate Property

Determining the market value of real estate property

Market value is the value of your house as seen through the eyes of a prospective buyer who has many properties to choose from.

A Comprehensive Market Analysis is essential to determining value. This market analysis has many elements:

• Location is one of the most important elements.
• Characteristics of the property is another.
• Similar properties for sale in your area are considered.
• Recent sales of comparable properties are also included.

Goal is to determine a price that will attract a willing and able buyer, in a reasonable time, at the best price:

• The price should not exceed market value by more than 5%.
• If overpriced, potential buyers may not even make offers.
• Overpriced houses get ”stale” with buyers and agents quickly.
• Long marketing periods can be expensive due to loss of buyer interest and “wasted” mortgage payments.

Things to keep in mind about pricing:

• Realistic pricing will achieve maximum price in a reasonable time.
• Profit desire is irrelevant; the market determines the price.
• The cost of improvements is almost always more than their added value.
• Houses that remain on the market for a long time lose interest and do not get shown.
• A house that is priced right from the beginning achieves highest total net income.

Real Estate: Home Improvement Tips (2/2)

8 ways to help sellers make quick and affordable home-improvement fixes to appeal to buyers

Low-Cost Home Improvements for a Quick Sale

4. Paint Those Walls
Painting is one of the cheapest, most effective improvements you can make in your home - especially if the colors aren't neutral to begin with. I know you love the pink entryway and purple bathroom, but most buyers won't love it as much.

I know you think painting is cheap and that the buyer can just do it later. Most people think this way, however, there are many people who don't have the vision. They need to see it done. Painting your home off white or in earth tones is the best way to go. Remember: you're selling your home to appeal to the masses.

5. Address the Flooring
Flooring is a little more expensive, but will bring a better return on your investment - especially if you're still hanging on to the orange shag. Even if you have more modern carpet but don't have enough in the budget for new carpeting, a good cleaning by a professional can help dramatically. The same can be said for wood floors, too. A good scrubbing can go a long way.

6. Clean Your Windows/Treatments
Cleaning your windows can really spruce up your home. A bright home always shows far better than a dungeon. Removing heavy drapes and curtains can help, too, and breathe new life into your home. It's far better to have nothing than to have a pattern that was popular 20 years ago.

7. Change Old Lighting
Lighting is a subtle enhancement to make, but a buyer will notice if a home's lighting is outdated. There are some great lights that can be purchased rather cheaply in many lighting stores. Even little things like upgrading to brighter bulbs can help.

Dark or poorly lit rooms turn off most homebuyers. Although it's a little more expensive to add, recessed lighting can really change the look in a room. Recessed lights work especially well in kitchens and baths.

8. Declutter Your Home
This one can really go a long way. Buyers like spacious rooms they can envision their own belongings in. Getting rid of things you don't need or can put into storage while your home is on the market can transform the appearance of your home.

Hold a yard sale for those items that still hold value. For things you want to keep but will spoil how well your home shows, get a POD (portable on-site storage) or consider putting your stuff in a short-term storage facility.

Remember: not every improvement has to be expensive. Sometimes it's the small things that make the biggest difference in a buyer's mind.

Go to part 1/2

Real Estate: Home Improvement Tips (1/2)

8 ways to help sellers make quick and affordable home-improvement fixes to appeal to buyers

Low-Cost Home Improvements for a Quick Sale

In a very competitive real estate market, one of the things that's vital to your success is how well your home shows in relation to the rest of the inventory for sale. There are simple things that you can do to improve your chances, and maybe put a few extra dollars in your pocket at the same time.

Maybe you're not even thinking about selling your home right now. When the time comes, however, these lost cost improvements could make a difference.

First impressions are always important so you want to make sure the entry to your home shines. As the buyer approaches the front door, the last thing they want to see is an old, worn door with cobwebs hanging from above.

Right off the bat, most buyers are going to assume that if the home is not well maintained on the exterior, the interior won't be much better.

1. The Entryway
Painting the front door or even replacing it if it's beyond help can make a real difference. A nice shiny door set always stands out. If you have vinyl siding and haven't cleaned it in a while, mildew, dirt and grime can accumulate. Giving it a quick spray can surprisingly make a big difference in your home's appearance.

2. Plant Some Color
Planting some flowers around the entryway can really make your property come alive. Choose a variety of colors that really stand out. Adding a few potted plants in a covered entry or a large enough stoop is always a nice touch, too.

3. Fix Up the Baths
While remodeling a bath is one of the best home improvement projects to get the most return on your investment, it may not work in your current budget. But if you have gold toilets and sinks from the 70s, it may be time to let go and move on to something that 99 percent of the population likes better.

Have a gold shower too? There are low-cost alternatives to ripping out the shower. There are specially made bath fitters that are designed to go over a shower. New faucets are another low-cost item that can make a difference. Silver and nickel are "in" right now; brass is less popular. Changing towel racks, toilet paper holders and shower heads are also nice touches for little expense.

Go to part 2/2

Real Estate: 10 Strategies for Short Sales (2/2)

Tips for real estate agents:
How to Sell a House When Seller Cannot Pay Off the Bank

Part 2/2

6. SET THE RIGHT PRICE.
Price the home at least 5 percent under market. You have to give the buyer compensation for the inconvenience of the Short Sale and a reason to wait. Price it even further under the market if the foreclosure is right around the corner. Negotiate by creating a sense of urgency in marketing materials and on the MLS. Most banks will accept as much as 10 percent under market.

7. PRESENT ANY REASONABLE OFFER.
This gets the waiting period started. Submit the offer and let it be working as you’re waiting for the file to be assigned. Some real estate commission mandates that you have to disclose any other offers that come in. If you get someone with a back-up offer now, the process is easier. If you submit another offer, call the people who made the original offer to let them know and give them an opportunity to update theirs. There is very few situations where the first people to make an offer didn’t get the property.

8. CALL EVERY WEEK.
Without agent calling the bank, no one would know the file is still in limbo. During the calls, establish rapport with the lender representatives and be nice. It’s very frustrating to call every week and have them try to get you off the phone, but they do take notes and put notes in the file. If you’re a jerk, they’ll note that too. Think about getting the borrower on the phone with you and the loss-mitigation negotiator to humanize the situation.

9. NEVER INCLUDE PERSONAL PROPERTY IN THE SALE.
Treat the sale of appliances, playground equipment and other items as a separate transaction. You don’t want any money unnecessarily going to the lender. If the seller doesn’t need these items, you can have the buyer purchase that property to give the seller money to move or to pay down a second mortgage.

10. TEACH OTHER AGENTS ABOUT SHORT SALES.
The seller’s credit isn’t damaged as badly, the seller moves with dignity, the buyer gets a home that’s in better shape than an REO, the neighborhood is saved from vacancies that leave properties at risk of damage, the bank gets more money sooner and reserves aren’t wasted. If you meet agents who don’t want to do Short Sales, turn them into a referral source. You’ll gain a reputation as a Short Sale expert.

Go to part 1/2

Real Estate: 10 Strategies for Short Sales (1/2)

Tips for real estate agents:
How to Sell a House When Seller Cannot Pay Off the Bank

Part 1/2

1. TRY TO SAVE THE HOME.
Determine if the sellers have a job with an income that provides a reasonable chance to support the house with a loan modification. Some might say I’m crazy for helping people get them. Yes, I’m crazy like a fox. If I help the homeowners now to save the house, save their credit, keep their kids in the same school, who do you think is their Realtor for life? You won’t make money in the short run, but in the long run you’ll end up with lots of referrals because you put their interests ahead of yours.

2. QUALIFY SELLERS FOR SHORT SALE.
There are specific hardships that must exist for a Short Sale to be an option. Verify that the seller (a) faces financial hardship (b) has no financial reserves, excluding retirement, and (c) is losing ground financially each month and heading toward foreclosure.

3. PREPARE A LETTER OF AUTHORIZATION.
Make sure you have permission to represent the sellers. In the pre-listing appointment phone calls, get the information about their lenders and the loan numbers, so that you can arrive at your first meeting with a letter of authorization for them to sign. Have the borrower/seller in the letter direct the lender to give you the name and contact information for the investor and any mortgage guarantors, too. You want to have the power to negotiate with everyone involved.

4. PUT THE SELLERS TO WORK RIGHT AWAY.
Give them a list of what you need in the Short Sale package and have them collect the items for review during the first listing meeting. Every bank asks for different items, but typically they want the hardship letter, a financial form showing assets and liabilities, two months of bank statements, the last two pay stubs as well as copies of the mortgage statements. If the sellers are self-employed, you may need two years of tax returns. Once everyone signs the listing agreement, you lose the power to walk away if the client isn’t cooperative, so make the Short Sale package information a condition of the listing agreement.

5. DO A TITLE SEARCH UP FRONT.
You need to know what all the problems are as early in the process as possible. In title company states, get a title report, normally provided as a service. In attorney states, have a firm you work with do it, and specify in your offers that this will be the closing attorney. Make sure the attorneys and escrow officers are trained in Short Sales.

Go to Part 2/2

Real Estate: 5 Reasons to Start a Blog

Still not convinced that blogging and other forms of social media can boost business?
If you’re not blogging, you’re missing some prime opportunities to capture new leads, market listings and make a lasting impression on your clients. The more you blog and repeatedly use the same phrases, the more hits your site will get through search engines like Google.
Blogs needn’t be longer than 300 words and you should use some photos, videos and plenty of links to relevant Web sites and material.

With millions and millions of users on social networks such as Twitter, Facebook,
LinkedIn and YouTube – along with the reach ActiveRain provides through search engine optimization – your name will be in front of potential clients if you’re an active blogger.

1. MORE VISIBILITY.
Garner exposure for yourself by writing insightful, concise articles that will ultimately lead more buyers and sellers to you online.

2. MORE CREDIBILITY.
Position yourself as an expert in real estate or in a certain geographical location by targeting your market.

3. MORE MARKETING.
Successfully market your listings.

4. MORE TRAFFIC.
Increase Internet traffic to your Web site by creating links back to subjects or people in your blogs.

5. MORE REFERRALS.
Generate referrals from clients and other real estate agents.

Real Estate: Facebook for Business

The world of real estate prospecting has morphed into Facebook friend requests, tweets, chirps and fan pages. Instead of asking for your phone number to talk about your services, clients might instead request you as a LinkedIn connection or message you on Facebook to get updates on a transaction.

Facebook is one of the largest social networking sites out there – and real estate agents shouldn't ignore that fact. But you have to make your impact on social network meaningful and relevant to your target audience; you can't post a bunch of listings and expect business to rain down on you like manna from heaven.

Here are some tips to stand apart from the crowd on Facebook:

After you sign up
1. Target your audience (past/current clients, other agents, niche businesses)
2. Pay attention to what people are posting about
3. Attract friends, followers, connections and subscribers
4. Interact and engage with your friends and/or fans

Maximize your exposure
There are three types of accounts on Facebook: personal profiles, groups and business/fan pages. Also, you can place ads to targeted audiences in certain geographic areas for little cost.

Personal pages – Messages are limited to 20 recipients at a time with a personal page. There are strict rules about posting business information on a personal page.

Groups – Groups are set up for more personal interaction and are more directly connected to the people who administer them. Groups can be public or prviate.

Business/Fan pages – This is the ideal way to attract a public following. Here are some business page options:

* Geographic area page.
Create a page for your county or a specific neighborhood that is solely about that area and has no mention of your business. You'll get fans instantly and people won't feel pressured by seeing your business information on the page. Get people to interact on the page by holding photo contests, asking questions that elicit participation ("What's the best pizza place in town?" or "Where's the best hiking trail in our county?") and offering prizes, such as gift cards, dinner for two, etc. Get local businesses to participate; they'll be more than happy with the free exposure. To spread the word about your business, download a tab called FBML, which allows HTML on the page, such as a framed-in IDX search.
* Agent referral page.
Add items of value, network with other agents at events posted on Facebook and share referrals.
* REO business page.
Market your distressed property business and expertise to asset-management companies.
* Office or team page.
Promote your office or team members, services and more with this page.
*Builder/condo page.
Reach out to builders, condo associations and other groups who have a vested interest in these niches. Promote your expertise in condos, new construction and niche services.

Treasury Streamlines, Simplifies Short Sale Process

The U.S. Treasury plan to help homeowners avoid foreclosure is many-faceted. The plan was announced in November 2009 and officially went into effect in April 2010:

It sets limits on the time it takes lenders to approve or reject Short Sales requests.
It provides incentives to lenders and borrowers for completing Short Sales.
It streamlines and standardizes the documentation necessary for Short Sales.
It limits the ability of subordinate lien-holders to obstruct the Short Sales process.

Incentives to Borrowers
Under the plan, borrowers who complete a Short Sale are released from their primary mortgage debt. Additionally, they receive $3,000 for moving expenses.

Incentives for Lenders
The plan provides for payments of $1,500 to mortgage servicers and investors for completing a Short Sale - or a deed-in-lieu transaction, in which the deed is simply turned over to the lender.

Standardized Documentation
The program has published streamlined and standardized documentation for Short Sales, including a Short Sale Agreement and Offer Acceptance Letter. Creating one standard set of documents minimizes the complexity of Short Sales, which should significantly increase use of the option.

Payments Capped to Subordinate Lien-Holders
In the past, some holders of second mortgages have blocked Short Sales by seeking steep payment in exchange for releasing their claim. Under the new plan, participating subordinate lien-holders as a group can receive no more than $6,000 from proceeds of the sale.

Time Limits for Short Sales
Lenders have only 10 days to approve or reject a Short Sale - a significant step, since the process often takes so long to complete that numerous transaction fall through. Borrowers are allowed at least 90 days to market and sell their home, with the possibility of additional time based on local market conditions. Marketing can run at the same time as the foreclosure process, but no foreclosure can take place during the marketing period as long as the borrower is acting in good faith to sell the proper.