Archive for Sellers

Broker Tour | Knowing the Real Estate Market

Broker tour

Q. What is Broker Tour?

A. Broker Tour is a time when sellers make it easy for Brokers to see properties that are on the market. The “tour” is a process by which brokers can look at properties without making prior arrangements. In the Corvallis, Albany and Philomath areas the agents let themselves into homes that are pre-set; in some areas, like Lebanon or Sweet Home there is a “caravan” type tour that is rigorously scheduled and the agents group together and all go in a few cars at once.

Q. How does this process work?

A. The listing agent sets the tour time up in the MLS system. In Corvallis, Philomath and Albany brokers “tour” on Wednesdays. The time of the tour is flexible, but most commonly around 9:00 am until early afternoon. One of the nice features about the way we tour here is that we can flex a little and work around our client’s schedules and needs. Other areas have different methods, for instance in Lebanon the tour is more of a “caravan” with a list of pre-scheduled properties. Additionally, some offices have an established “office tour” which may or may not be established as part of their office meeting agenda.

Q. Which properties are on tour?

A. Tour is often comprised of the “new” listings for the week. Sometimes a “new” property has been on the market for a while (days or even weeks) before it is scheduled for tour. Sometimes homes that have already been on tour once are re-set for additional tours. Generally, those homes have had a “change” like in price or décor. Occasionally, the first tour had a poor turn-out, so it’s re-set to give the brokers another chance to see the property. It’s never a bad thing to let brokers have easy access to preview a property. Broker tour is a little like “open house” just for agents.

Q. Why is it beneficial for brokers to tour?

A. This is a chance to see the property and be familiar enough to discuss it with clients. Sometimes, brokers tour with a specific client in mind, other times not. It is also a way to become familiar with the market, understand the various homes that are for sale and associate a price point with them. This is also a social opportunity, brokers on tour often cross paths and has a chance to talk with colleagues, exchanging ideas and needs.

Q. Why didn’t more agents tour my home?

A. There could be any number of reasons why some agents didn’t tour. Often it’s because they have conflicts in their work schedule. It’s possible that they’ve seen the house (either on tour previously or even when it was on the market in the past). Sometimes the time that is set is not practical or long enough to allow them to see every property. Rural properties are often under-toured due to drive times etc. There may have been a number of properties on tour and the volume made it impossible to see them all. Some brokers only tour if they have a client that may match a property, some never tour at all.

Q. What about a luncheon or give-away?

A. A lot of brokers offer luncheons or give-a-ways with the idea in mind that more brokers will tour the home. It’s my opinion that the brokers that need to see a specific home, make a point to visit with or without incentives.

Selling Your Home: How to Prepare for a Home Inspection

How to prepare for your home inspection:

Being prepared for your home inspection will make the process much smoother for you, the buyer and the inspector. When an inspector cannot access essential components of the home, it often makes the process take longer and can add to the cost. Lack of preparedness that results in additional trips for the inspector can be costly to the seller and can delay the process or even cause your transaction to fall apart.The following is a list of items that will help your home inspection move along smoothly:

Access to Attic: The inspector will need to get into the attic; or at least view the attic from the access opening. If the access panel is in a closet, please remove all personal property (clothing, boxes, etc.), hanging rods, and/or shelving that would prevent the inspector from safely entering the access. If the access panel is secured with nails or screws, please remove these. If a panel is painted shut, the inspector will not try to move the panel as this may damage the painted areas. The inspector will not move personal items nor remove securing screws or nails to gain access to the attic.
Access to the Crawlspace: The inspector will need to get into the crawl area beneath the structure (if present). If the access hatch is in a closet, please remove all personal property (clothing, boxes, etc.), hanging rods, and/or shelving that would prevent the inspector from safely entering the crawlspace. If the access hatch is secured to the floor with nails or screws, please remove these. If a panel is painted shut, the inspector will not try to move the panel as this may damage the painted areas.
Electrical Panel: The inspector will be removing the main and sub-panel covers and inspecting the wiring inside. Please move any items that are in front of the panel. NEC code requires a clear area of 3 ft. in front of and 30 inches to both sides of the panels. The main and sub-panel power supply should be turned on. Inspector will not switch breakers on-off (except GFCI).
Computers: The inspector will be tripping all G.F.C.I. breakers and/or outlets, also sometimes when removing the panel cover, a breaker is accidentally switched off. We recommend that any programs being run be saved and all computers and peripherals shut down.
Dishwasher, Microwave & Oven: They will not be operated unless empty. If any appliance is known to be defective, please inform the inspector and it will be deferred for a service technician to evaluate.
Pets: Please make arrangements to have your pets (including cats) out of the inspector’s way. The inspector will need to look at all sides (in and out) of the house, garage, basement, and closets. Either leave them with a friend/neighbor or kennel them. Inspector will not enter a property if pets are loose. Cats sometimes have a desire for the outdoors and will slip past an inspector when opening and closing doors. Inspector is not responsible for animals that have escaped during an inspection.
Gas Appliances: (Furnaces, Fireplaces and Water Heaters): Please remove all personal items, etc. from in front of the service panels of these appliances so that the inspector can safely inspect them. Have gas turned on to the appliances and pilot lights lit. Inspector will not turn gas valves on-off nor ignite pilot lights.Plumbing: Water should be turned on at the main valve and to all plumbing fixtures for the inspection. Water valves will not be turned on-off by the inspector.
Buyers: Normally the buyer(s) will be present during the inspection. We ask that seller leave the property during the inspection.
Minor Children: Any children under 18 must have an adult present. Again, for liability purposes, we ask that only the inspector, buyer, and respective real estate agent be at the property during the inspection.

It may also be a good idea to leave notes if there are specific items that are unique and/or unusual about your property (hidden access hatches, specialty items etc.) and contact information for the listing broker and/or the seller in the event of an emergency or questions that can be resolved quickly over the phone.

This list was provided by Matt Waddell of AmeriSpec Home Inspection Services. Thanks Matt!

The Real Estate Market in America | Today’s Perspective

Here’s today’s perspective on the real estate market from Greg Rand, OwnAmerica Founder

Greg is a regular contributor in print and on cable news and has a broad base knowledge on housing and the mortgage market. He is one of the experts that was at the Coldwell Banker GenBlue Conference in Las Vegas (March 2011.) I’m taking his class and can’t wait to see what develops. I’ve read his book Crash Boom! , was very impressed and think that what he has to say has value.

3.8% Tax–False Rumors

Misinformation regarding a 3.8 Percent “Transfer Tax” Rumors continue to be “out there”

Misleading e-mails and other communications about the 3.8 percent Medicare tax in the health care reform law continue to circulate. You may be receiving some of these messages. The communications typically say the 3.8 percent tax is imposed on unearned income that includes the sale of a principle residence, but the tax that’s being referenced is far more narrow than that and only has the potential to impact a small sliver of high-income households who receive investment income. The $250,000-$500,000 capital gains exclusion remains in place.

Application of the Tax

This tax WILL NOTbe imposed on all real estate transactions. When the legislation becomes effective in 2013 it may impose a 3.8% tax on some (but not all) income froma interest, dividends, rents (less expenses) and (capital gains (less capital losses). The tax will fall only on those individuals with an AGI (Adjusted Gross Income) over $200,000 and couples finling a joint return with more than $250,000 AGI.

Types of Income

Interest, dividends, rents (less expenses) capital gains (less capital losses)

Formula

The new tax applies to the lesser of

Investment income amount
Excess AGI over the $200,000 or $250,000 amount

Please see the following National Association of REALTOR^®Brocure that follows for Scenarios and Examples:

Open publication – Free publishing – More tax

Home Prices Have Already Hit Bottom

An interesting item in DSNews: Economists Say Home Prices Have Already Hit Bottom

I’m glad that a panel of economists could read the writing on the wall:

“When it comes to the distressed side of the business, it’s become clear that the nation’s high level of unemployment is now one of the primary triggers of default among struggling homeowners. Getting more people back to work is key to a recovery in housing and getting a handle on still-rising delinquency numbers.”

Home prices in some markets have hit the floor, some may be rebounding and some may still experience a dip, it has a lot to do with what the local (key word here is “local”) economy is doing including housing inventories, the job market, business growth, and potentials for lender owned properties to come into the market (affecting inventory).

Locally, there are vast differences between markets that are virtually contiguous. For example, Albany and Corvallis have vastly different economic profiles. Philomath is a community adjacent to Corvallis; it’s small and often gets overlooked in “searches” (Realtor.com, Zillow, Trulia, and other real estate search sites.) One does not “compare’ properties in these differing markets against each other when attempting to establish a market value.

Job availability and types of jobs, growth rates, volume of new construction during the “boom” (which added to inventory), profile of homes built, price appreciation during the “boom”, supply and demand (including supply and demand for rental properties), homeowner and home buyer demographics all play into the availability, pricing and negotiability of prices.

Further, “The group of economists is projecting gains in home prices of 1.2 percent over the course of 2011”, I personally find it inappropriate to make sweeping comments about “home prices”. There is no “national real estate market” it’s all local. Saying there’s a “national average home price” or a “national median home price” is a little like saying there’s “a national average temperature” or “a national median temperature”. Those kinds of statistics are a method of measuring change, but one should not take the figures and attempt to apply them to any specific market.

Consumers, either Buyers or Sellers, looking to enter any market are best served to research that market, taking into consideration the local economy and local housing market prior to drawing conclusions. Investigate communities near-by. Good values can be found in surrounding communities. Don’t assume that the market where you are going is similar to the one from which you are moving. Let’s all just know that the key to any recovery is the strength of the local job market and get on with the business of living.

Dava’s Corvallis House Adventure: Three Incidents during the Move (that I’d rather not have happened)

Three little things during the move–that I’d rather not have happened and how I might have prevented them.

My husband hit head on the light fixture that used to be over the table. Table had been moved, but stuff was still being packed in that area. This was not the first time for this bit of glass. I worried about it a lot and generally had it protected (faked a table with boxes under it, but they got relocated and …) I think for future if I have a light fixture like that, I’ll simply remove the glass to a safe place.
Sudden loss of water at the new house. Ohhhh, freak out! I’ve not lived with a well before, so of course, all the worst case scenarios leaped to mind before we discovered that the cable guy had unplugged the pump. Maybe there should be a sign that says “don’t unplug this” near the well pump.
Limited participation on my part. I was busy, busy, busy with work. So a lot of the actual moving day stuff was handled without my assistance. Perhaps this is a good thing, as I tend to the bossy side of life. Also, it was much less stressful for me, but still, stressful. The good thing is, the work I did was very productive.

All in all it wasn’t a bad move. Everything made it here it good condition. It will be a while before we find everything (especially since we’re starting a remodel as soon as we move in…). The pre-planning and pre-packing was well worth the effort.

New Rules For Owners Of Woodstoves

New Rules for Owners of Woodstoves

In 2009 the Oregon Legislature passed a law requiring the removal of any uncertified woodstoves from a home when it is sold. The purpose of the program is to help protect the air quality for Oregonians. Uncertified woodstoves burn about 70% dirtier than certified woodstoves and are also much less efficient than newer, certified stoves. Removing the uncertified woodstoves helps Oregon’s efforts to restore and preserve healthy air.

As of August 1, 2010, Oregon law requires that homeowners remove any uncertified fireplace insert(s) or woodstove(s) when a home is being sold. All uncertified woodstoves from the home and outbuildings must be removed and destroyed. It is the seller’s responsibility to remove and destroy the woodstove. However, the buyer and seller can agree that the buyer will be responsible. If the buyer agrees to be responsible for the woodstove removal, then the buyer must: 1) remove and destroy the uncertified wood burning device within 30 days after the closing date of the sale; 2) get a receipt indicating that the stove has been destroyed; 3) submit the notification to Oregon Department of Environmental Quality (DEQ).

To tell if your stove meets the certification requirements, check the back of the device for a certification sticker from the Oregon DEQ or the US Environmental Protection Agency (EPA). This label indicates that it is certified to comply with particulate emission standards. A safety label (for UL or other safety listing agency) is not the same as a DEQ or EPA certification. You can also check EPA’s list of certified wood stoves to see if your wood heating device is listed. If the stove or insert is certified, it’s can remain in place. If it’s not certified, then it must be removed. There is no way to obtain certification for an uncertified stove (it doesn’t have the pollution control systems).

You may remove the stove yourself, or have a woodstove retailer or chimney sweep remove it for you. Once it’s removed, you should take it to a metal scrap recycler or landfill to ensure it is properly disposed of and destroyed (it cannot be used for any other purpose—no planters, plant stands etc.). Be sure to get a receipt from the contractor or business that takes your stove. Your receipt is your proof and part of your notification to DEQ.

There will be online forms available and paper forms available to mail to DEQ – Heat Smart Program, 811 SW Sixth Av, Portland, OR 97204 to allow you to notify DEQ of removal and destruction of a non-certified woodstove.

There are wood heating devices that are not required to be removed:
Pellet stoves—Pellet stoves burn a renewable fuel made of ground, dried wood and other biomass wastes compressed into pellets. Most pellet stoves require electricity to operate
Central wood fired furnaces—Indoor, ducted, thermostatically controlled devices with a dedicated cold air inlet and hot air outlet that connect to heating ductwork for the entire house
Antique stoves—Woodstoves built before 1940 with ornate construction and a current market value substantially higher than a common woodstove manufactured during the same period
Masonry Fireplaces—There are two types; traditional masonry typically made of brick or stone; or “low mass” fireplaces that are engineered and pre-fabricated. These are typically not used as primary heat sources; they are primarily for ambiance and secondary heating
Masonry heaters—Site built or site-assembled solid-fueled heating device, consisting of a firebox, a large masonry mass and a maze of heat exchange channels. This device stores heat from rapidly-burning fires within the masonry structure, and slowly release the heat into the home throughout the day.

My Corvallis Oregon Move–7 Things that Worked for Me

My Own Recent Corvallis, Oregon Move

I recently sold my home of 11 years in Corvallis, Oregon and moved to a rural subdivision just outside Corvallis (technically in Benton County, but still with a Corvallis zip code). The “new” home on a very big lot (nearly 3/4ths of an acre), similar in vintage to the “old” house, a little larger, a little “newer” (1963 vs 1959) and it has a shop.

I’m pretty experienced at “moving”. We moved around a lot when I was a kid (something like 14 or so different times before high school) and there are a lot of moving stories associated with all those moves. All-in-all, I have to say the process went very well this time. Of course, I think I had the best real estate agent around… Even so, we had our ups and downs. There is rarely a home sale process that occurs without some “challenges”.

We needed to sell the home we lived in, so that we could move the money and buy the home we wanted. A fairly normal scenario, but it can be a tricky process. The one thing I can say that worked in our favor was that I do know how to do this. I even listened to my own advice.

Here are the 7 things that worked for me.

Prepare the house to be sold for market (commonly called “staging” but oh, so much more than “decorating”
1. Finish projects—the ugly old half bath finally got a face lift
2. Fix what needs fixing—refinished some wood flooring, put back closet doors, installed new appliances, replace glass in windows with seals that were compromised, fine tune to the n^th degree
3. Eliminate anything that’s excess—pack away items that are specific to us, clear out closets, haul away excess (how in the world did we accumulate so much stuff?) and stash the rest–preferably off site
4. Touch up paint—this one item has the biggest impact and is the least expensive to do
5. Touch up the landscaping—weed, mow, bark dust etc. Haul away that “extra yard stuff”
Do a market analysis—list within the confines of that analysis. This is a crucial step. Going over won’t bring an “offer”. Listen to feed back from other professionals (even though this is what I do, it’s difficult to be objective–but used my own judgment as well, some thought I could list higher…)
Take many, very good, photos, publish the very good photos in real estate specific web sites that are well trafficked the local MLS (Willamette Valley MLS), ColdwellBanker.com, ValleyBrokers.com, Realtor.com and nearly every other web site known to the real estate world.
Disclose everything I know. Detailed information. No guessing, ”just the facts, ma’am”
Negotiate the best offer. Received two offers, focused on the best. In contract within 6 days of publishing to MLS. No worries from the home inspection (because we knew pretty much what we had). Sweated out the appraisal (it was fine—I thought it should be, but these are weird times)
Move! (the seller of the house I purchased gave me early possession—that won’t always work, but there’s almost always a solution). We hired a local professional mover, because after all, we are not kids anymore. Get in touch with me if you need his name.
Closed! Signed papers, used a local, lender. Everything there went like clockwork.

Of course there will be some glitches. Some of the things that happen right after a move are funny, some are not. We are very happy with the new place. No, the boxes are not yet unpacked, but the bird feeders are up and we’re looking forward to the next phase.

Related posts: What is Staging and Why Bother?

What Is Staging And Why Bother?

What Is Staging and Why Bother?

In real estate, Strategic Marketing is the integration of pricing and staging principles. It involves several aspects of preparing one’s home to appeal to the psychological needs of buyers. Staging is one aspect of Strategic Marketing. It is completely different from decorating. Decorating is the personalization of one’s home to suit individual tastes. Staging, whether the home is vacant or occupied, is the depersonalization and neutralization of one’s home to appeal to buyers.

Why bother? According to a recent study conducted by Proctor and Gamble, 78% of buyer’s needs and criteria are met before they visit your home (Number of bedrooms, bathrooms, square footage, acreage, location, etc.). This means that you control how those last 22% of needs and criteria are met. It is extremely important that you do everything possible to get your home ready to make the best impression on buyers. Staging is about creating a series of impressions that helps buyers create an emotional connection to the home, so they can imagine the home as their own.

So what can you do to give buyers the best impression of your home?

De-clutter

Remove family pictures, reduce the amount of items that are on surfaces such as bookcases, kitchen and bathroom counters, dining table, and any catch-all space, and pare down clothes and linen closets. Think of it this way: You’re planning to move anyway, so why not get a head start in your packing?
De-cluttering shows buyers that there is room for their belongings, allows buyer’s eyes to focus on your home’s features instead of your things, makes your home feel larger, and brings a sense of calm to buyers.

Clean

Remove scuffs from floors and walls, stains from carpets, freshen up bed linens and curtains, dust blinds and all surfaces, wash windows, and wipe down kitchen and bathroom counters.
Cleaning shows buyers that your home has been well cared for and eliminates daily odors such as pet and cooking smells.

Repair

This includes cracked windows, kitchen drawers, ripped or damaged flooring, caulking in your bathrooms, and anything that has been on your to-do list. You know it needs to be fixed, chances are buyers will notice too.
Repairing items around your home shows buyers that there is no extra work to be done. Uncompleted work translates to buyers as additional expense, time and effort that will need to go into your home after purchase and cause buyers to question if there are any hidden problems.

Neutralize

Choose warm and neutral colors for walls, flooring, and even bed linens.
Neutralizing your color pallet throughout your home allows buyers to imagine their furnishings in your home.

For those on a limited budget, the four least expensive things that will have the biggest impact are: de-cluttering, cleaning, painting, and enhancing your home’s curb appeal. Spruce up your curb appeal by doing any of these quick and easy things: mow your lawn, bring in fresh bark mulch, clean up dead leaves and plants, replace that shabby mailbox, plant some inexpensive annuals for color, and sweep off front stoop, walk, and driveway.

Staging is all about preparing your home to appeal to buyers. All of these items are basic steps that you, as a homeowner, can take to begin that preparation. As a Certified Home Marketing Specialist, I provide an in-depth customized consultation about Strategic Marketing and specifically home staging to all my clients.

Why A Home Protection Plan

Why A Home Protection Plan (Warranty)

Your home is one of your biggest investments. Unexpected repair or replacement costs can put a strain on your budget, especially with the other expenses associated with moving.

The home protection plan offered by Coldwell Banker (via American Home Shield) provides peace of mind to both the seller and the buyer during the time in which the home is on the market (seller protection) and for at least one year after closing (buyer protection).

The plan offers quick relief from hassles and expenses when covered items break down during the course of the listing or the first year of home ownership.

What is a home protection plan? It is a service contract (not really a warranty, but commonly referred to as that) that covers repair or replacement of many of the most frequently occurring failures of home systems and appliances. A home protection plan pays for repair or replacement of any covered item that breaks down due to normal wear and tear or items that fail due to typical use. The owner at the time of the service call pays a minimal service charge.

When a seller purchases a warranty during the listing period, they:

are protected in the event that a covered component fails while the home is listed
are protected in the event that a covered component has failed, and the failure is discovered during the course of a home inspection (for either a buyer or a seller)
have the peace of mind of knowing that some of the expenses, that could become problems during the course of selling the home, are minimized

When the buyer obtains a warranty they have the peace of mind of knowing that their potential for major home repairs are mitigated during the first year of home ownership, often a time when savings are at a low point.

Warranties are renewable, so buyers have the option of purchasing additional coverage after the first anniversary of their home ownership.

Some of the most common items I’ve seen handled by the Home Protection Plan for my clients have included: Plumbing repairs, electrical repairs, heating system repairs, and appliance repairs.