Things to do Before Putting Your Home For Sale

1. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. An inspector will be able to give you a good indication of the trouble areas that will stand out to potential buyers, and you’ll be able to make repairs before open houses begin.

2. Organize and clean. Pare down clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine.

3. Get replacement estimates. Do you have big-ticket items that are worn our or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don’t plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.

4. Find your warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.

5. Spruce up the curb appeal. Pretend you’re a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments?

6. Take pictures - viewing pictures of your home, both inside and out, can help you pinpoint trouble spots - cluttered areas, paint touchups needed, etc.

7. Stage your home - impression is a strong motivating factor - the cleanliness and decor of your home have a strong impact on most buyers - a clean, pretty home makes the buyer feel that you have maintained the home well including the major systems, like plumbing, electric, etc

8. Try to have your home give off the warm, fuzzy feeling - buying a home is an emotional experience - things like scents and colors enhance these feelings

Home Prices Fell

Home prices fell 0.4 percent nationally in the third quarter, according to the Office of Federal Housing Enterprise Oversight.

That's the first decline after 50 straight quarters of appreciation averaging 1.62 percent per quarter.The decrease in housing prices has only begun to eat into the nearly 13 years of quarterly price gains.

The National Association of Home Builders said in November that only 42 percent of all homes sold in the third quarter were priced low enough to be affordable for families earning the national median income of $59,000.

Should I rent or buy a house?

According to the National Association of Realtors....

It Makes "Dollars and Sense" to buy a home: Over the last ten years, the cost of rental housing in the U.S. has increased an average of 3% per year. The apartment or home that you rent for $750 a month will cost you more than $978 a month 10 years from now. The Federal Reserve Board estimates that homeowners have a net worth almost 36 times more than that of renters.

Other advantages of home ownership include:
*tax advantages
*freedom to make changes to the home
*equity
*stability
*fixed rate loan - payments will not rise over time


There are advantages to renting too:
*can be easier to relocate
*not having to deal with repairs
*no real estate tax
*renter's insurance usually cheaper than homeowners

As a real estate agent, of course my vote is for home ownership, but I can see the arguments for both sides. My biggest argument for owning a home is the stability factor - not having to worry about the landlord making you relocate.


Here are a few home ownership rates - the percentage of Americans that own their own homes:


State 1984 - 2004

Missouri 69.5 % - 72.4 %
California 53.7 % - 59.7 %
New York 51.1 % - 54.8%

Reasons for Real Estate Optimism

Dont' let the housing headlines get you down - i know we are always seeing..... foreclosure rates, lending woes, tons of homes on the market, etc. BUT.....

There is still room for optimism in this housing market. Buyers benefit from the falling prices, making homes much more affordable and there are more buying incentives out there too - like seller's paying closing costs.

Investors who will have a greater opportunity to get those "great" deals. It is espectially good for the investors who can afford to hold on to the property for a few years.

It can be a great opportunity for landlords as well - with more people needing to rent housing until they are able to get into their own home.

For the real esate agents, there will be less competition as some of the other sales agents start to slip away from selling homes and getting other types of employment. Those real estate agents to stick it out will be able to build there networks and have more clients.

Agents can be more flexible offering FLAT FEE MLS listings and discount commissions.

(for more info got to http://lauralei.net/ ) As sellers begin to lower their selling price, they are more likely to shop around and go with the best deal - not that friend or relative.

FSBOs and expired listings are more plentiful. Agents who do their homework and are diligent will reap the benefits.

So don't let the headlines get you down - make the market work for you!

Happy holidays and real estate!

Just opened up the Realtor Magazine and read this bit of encouragement from Richard Gaylord the National Association of Realtors president.... here is his advice:

1-Real Estate is a long-term investment

2-There's no such thing as a bad market - there are always plenty of people ready to buy and sell.

3-Economic indicators remain good

4-Bad news should be put in perspective

5-Real estate is a local business

and finanlly

6-Control what you can

Well, as for me, I think this is good advice ..... and at least for today, brightens my day!

Happy Holidays

The FHA Modernization Act

The Federal Housing Administration (“FHA”) was established during the height of the Great Depression by the Housing Act of 1934. By offering government-backed insurance for the full balance of a loan, the FHA was created to encourage the private sector to return to the mortgage market and aid the increasing number of families who were defaulting on their loans and losing their homes



Today, a record number of American families are facing mortgage payment delinquencies and foreclosures. An estimated two million households may lose their homes to foreclosure between 2007 and 2008. This is where the FHA Modernization Act comes in.


The FHA Modernization Act would:
1) Create a new, risk-based insurance premium structure for FHA that would match the premium amount with the credit profile of the borrower . It would replace the current structure, in which there is standard premium amount for all borrowers, while still protecting the soundness of its Insurance Fund. FHA would have the flexibility to charge higher-risk borrowers a slightly higher premium, and to charge a lower premium for low-risk borrowers.



2) Eliminate the current statutory three percent minimum down payment, reducing a significant barrier to homeownership . FHA's existing down payment requirement does not meet the demands of today's marketplace, where most first-time homebuyers put down two percent or less. The "new" FHA would offer a variety of down payment options.



3) Increase and simplify FHA's loan limits . FHA's loan limit in high-cost areas would rise from 87 to 100 percent of the GSE conforming loan limit and in lower-cost areas from 48 to 65 percent of the conforming loan limit. This change is crucial in today's housing market. In many areas of the country, the existing FHA limits are lower than the cost of new construction, eliminating FHA financing as an option for buyers of new homes in those markets. FHA has simply been priced out of the market in other areas, such as California, where FHA insured only about 5,000 home mortgages in all of 2005.

4) other things like enchanced fraud protection, helping homeowners keep their homes, etc

Lots of people are saying "it's a good thing" ..... it will be interesting to see.