Homebuyers feel ready and willing to buy, but not financially able

Chart last updated 5/7/12

first tuesday Analysis

Data courtesy of the University of Michigan*

Inform them they are able to buy

Changes in homebuyer opinion in the Western Census Region, as shown in the chart above, are tracked based on the answers to two questions:

The greater the percentage of positive answers, the higher the index figure. Agents and brokers who follow the indexed trend of both lines will improve their awareness of the way homebuyers are likely to behave in the following months when deciding whether to make an offer to buy a home. The Western Census Region includes all states west of Texas. Most of these states experienced economic and home-pricing drops during the Great Recession.

MARKET VALUE

Pricing a home in today’s market can be difficult even with the prospect of stabilizing home values. Despite what some sellers believe -- that their unique home is worth more than recent comparable sales in their area -- buyers are the driving force now in determining the true value of homes.

Moving In

How to Rent the Right Storage Building for Your Stuff

There are several reasons why people rent a storage unit. Downsizing a home is one of them. Having a place to store out-of-season lawn equipment is another, paying to have a son’s or daughter’s stuff stored when they move to another city is common. 

What is a Short Sale?

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here's a more official definition:

Top 4 Questions Home Buyers Have About the Tax Credit

Helpful comments from Rismedia.

Top 4 Questions Home Buyers Have About the Tax Credit

Household Odors Can Prevent a Sale

Selling a home involves lots of prep.  However, a touchy topic that may affect a home’s ability to be sold is its odor.  Owners may not even be aware of the smoke/pet/mildew problem, but buyers will notice it immediately upon setting foot in the home.  If you have dogs, cats, hamsters, old carpeting, mildew problems, or if you love to smoke or cook foods with a pungent odor —chances are that buyers can smell it and it may prevent a sale. Do the sniff test and determine if you have any offensive odors. Ventilate the home and invest in an air-cleaning and deodorizing machine or products to remove pet odors. Another option is a cleaning product with living enzymes that consume the odor-causing agents and remove the smell permanently.

• Get rid of smells. Minimize odors by removing litter boxes and thoroughly vacuuming up dog and cat hair.
• Move the dog out. Relocate the pets during the selling process. Moving the animal to the home of a friend or relative is the best solution.
• Next best: to the basement. If the pet can’t be moved, then confine the animal to the basement or the garage.
• No pets at showings. Take the pet with you during open houses and showings.
• Hide the evidence. Remove evidence of the pet, like pet toys, feeding dishes and photos, which can distract potential buyers who don't like the idea of animals living in the house.

Helping Children Cope with a Move

 1. Show the children the new home and their new room prior to moving. If this isn't possible, pictures or videos will help them visualize where they are going.

2. Assure children that you won't forget their friends.

3. Make a scrap book of the old home and neighborhood.

4. Throw a goodbye party. At the party have their friends sign a tee shirt.

5. Have your children write good bye letters and enclose their new address. You may wish to call the other children's parents so they will encourage return letters.

6. When packing, give them their own box. They can decorate it so they know which one it is.

7. If you move far away, buy postcards when you stop so they can remember the trip.

8. When unpacking, allow them to unpack their treasures, then let them play with the boxes while you unpack.

9. Start a scrap book for their new home. Include a diary of "My first..."

10. Visit their new school, park, church, etc. Remember to take a camera. 11. Help your children invite new friends over to the house.

12. Let them choose a new favorite restaurant. This will help them feel in control of their New World.

13. Encourage them to send letters about their new home, to their friends.

14. Involve your children in groups, sports, and activities like the ones they used to participate in.

15. Remember even if you only lived in a home a few years, to a young child it is nearly their entire lifetime!

16 Things Every Homeowner Should Know Before Selling

1. The five factors that affect the marketing of any home are the price, location, terms, condition of the property, and the agent you select.

2. Over 80% of all Buyers purchase their home through real estate agents.

3. The real estate agent you select should have mutual objective with you such as obtaining the highest possible price, in the shortest period of time, with the most favorable terms.

4. There is much more to a successful sale than placing a sign in the yard, an ad in the paper, and submitting it to the Multiple Listing Service. Discover what other things the agent will be doing to make your home sell.

5. There is a cumulative effect in advertising. Ask what your agent's policy is in regards to advertising.

6. Advice on how to sell your home quickly is a valuable service to expect from the agent you select.

7. Ask the real estate agent how contracts will be presented and if there will be a net sheet showing all of the expenses involved. 8. Many homeowners are concerned because they don't know what is taking place during the listing period. Ask the agent you choose how they stay in touch.

9. Real estate agents are usually able to recommend repairmen and contractors who perform quality work at reasonable prices to help you maintain your home.

10. A Home Protection Plan will allow your home to sell more quickly and protect you from potential liability due to faulty mechanical items.

11. A real estate professional is trained to qualify buyers in order to protect the Seller from taking a home off the market prematurely.

12. Important criteria for selecting an agent are: level of service, selling quickly at an expected price, and the reputation of the agent and their company.

13. Ask for a list of people the agent has represented. This will allow you to independently check the agent's "track record."

14. Following up with prospects who have looked at your home is important but if the owner attempts this, it might appear that he is over anxious.

15. Some real estate agents will issue the Seller a performance warranty which states that if the owner is not happy with the service they are receiving, the agent will release the listing.

16. An inspection by a professional inspector prior to finding a buyer, may identify problem areas that you can repair. This will save time and possibly increase the price you receive for your home.

For more information, call Richard Morse, your real estate professional, at (800) 946-3895.

A New Approach for a Failed Listing

It's disappointing to put your home up for sale, expecting it to sell immediately, and then it doesn't. You lose the home you wanted to purchase because you needed the cash out of your old home, and don't want to make two house payment.

The longer a home stays on the market, the more likely agents and prospects will think there is something wrong with it. The home will be shown less, making it more difficult to find the right buyer for the home.

The reasons that properties fail to sell include one or more of the following: price, location, condition, terms, and marketing efforts. To successfully sell, a correction in these areas must be made. You rarely get a second chance to make a first impression. To maximize the new marketing efforts, all factors must be considered.

Price is the single most important factor in a successful sale. It can overcome a poor location, bad condition, or no terms. A price adjustment must exceed an invisible threshold in order to induce increased activities. For instance, if a home is priced at $107,500, a reduction probably will not encourage additional activity unless it brings the price below $100,000.

If the location of the property is not favorable for a sale, an adjustment in one of the other factors must be made in order to compensate. The areas to consider are price, condition, and terms.

Most buyers, regardless of the price range they're in, spend everything they have for a home. They have to live in it the way they buy it until they can save enough to redo it. It's better to replace carpet and floor covering with something neutral, than to give the buyer an allowance to pick their own. It's better to replace wallpaper and repaint with neutral colors than to give the buyer an allowance to pick their own. It's also better to replace appliances that are needed, than to make an allowance.

Buyers will always deduct more in their offer than it will cost you to make the repairs or improvements.

Terms describe financing alternatives. They include seller carried first & second lien notes, buy-downs for the purchaser to lower the costs of the payments in the initial periods, seller paid discount points, and the willingness to sell the home FHA or VA.

If two or more homes of the same size are on the market in the same area, for the same price, the one in the best condition will probably sell first. If two or more homes of the same size are on the market in the same area, in the same condition, the one with the best price will probably sell first.

If two or more homes in the same condition are on the market in the same area, at the same price, the largest one will probably sell first. If two or more homes of the same size are on the market for the same price, in the same condition, the one with the best location will probably sell first.

One successful tactic is to position your home like its new on the market. This will create excitement among the buying prospects and more importantly, the agents in the area.

Your home must be exposed to the largest buying segments. Your home must appeal to different buyer segments, such as first time home buyers, move up buyers, relocation buyers, move down buyers, and investors.

Every home needs an exciting feature. The price of the home will determine what the feature needs to be. It could be new appliances in the kitchen, ceiling fans through out the home, a whirlpool spa, or a home entertainment center.

If your home doesn't have an exciting feature, that could be the reason it hasn't sold.

For more information, call Richard Morse, your real estate professional, at (800)946-3895.

Critical Things that Allow a Home to Sell Quickly and for the Most Money

1. It is important to make certain that the first impression is a favorable one.

2. You'll never have more activity on the home than you will in the first three to four weeks of the listing. The reason is simple: there are buyers out there who have seen everything available and for one reason or another, haven't bought. They are just waiting for something new to come on the market.

3. When that new property does hit the market, buyers and agents both will scramble to look at it. It is common knowledge that the property will usually sell for the highest price during this time. After the initial surge of interest, the only people to look at it will be those buyers new to the marketplace.

4. Make your home look and feel like a builder's model home. Everything should look like it belongs even if it means storing some things until the home is sold. You are trying to create a feeling that makes potential buyers want to move in.

5. Don't wait to see if the house will sell first before implementing these ideas. Once you do decide to do something, don't do just the easy ones or just the bare minimum.

6. The property needs to look good from the street, up the sidewalk, on the front porch, throughout the house, in the darkest closets, and even in the attic. You definitely want to give the impression of a well cared for home.

7. You want the prospective buyer to feel that this home is quality all the way through, not just on the surface.

8. You are even competing with every other home that is currently for sale: new and pre-owned, your area and other areas, those listed with agents and those trying to sell themselves; even with the foreclosures in the market.

9. Your property must appeal to owner occupants who will pay the highest price for the property because they are going to live there as their home.

10. Typical buyers put all of their savings into the down payment and closing costs and don't have anything left over to improve the home such as replacing old, worn-out things.Those buyers will just have to live with that carpet until they can afford to replace it.

11. If buyers have a choice of two comparable properties similar in price, they'll choose the one in the best condition. Just as on the other hand, if two properties are similar in condition, the buyers will choose the one that is less money.

12. Stand at the street and look at the house. If all you can see are trees and shrubs, you have some yard work to do. One of the easiest things to do is trim the shrubs that are overgrown. They should be lowered to a height near the bottom of the windows. If there is ivy growing on the side of the home, get it off.

13. If there are tree branches hanging low in the yard, they need to be pruned. A simple rule of thumb is to have all the limbs high enough so that you can walk under the tree.

14. Invest in a few flats of flowers such as petunias or periwinkles that will last the entire growing season. This will add color and beauty to the front of your home. Consider putting some nice looking flower pots on the porch with some red geraniums or some other blooming plants in them.

15. Look at the front door and the area around it. If you paint nothing else, at least give it a fresh coat of paint. If the doorbell is broken, replace it. Wash the mail box. Keep the porch swept. Get an attractive mat for people to wipe their feet.

16. Air out the home. You are the last person to notice any peculiar odor in your home that may be blatantly obvious to visitors. Go on a search to find the offender. It may be a kitty litter box or a dog bed. It might even be a mildewed shower.

17. Wash all the windows in the house, inside and out. While you're at it, clean the window sills and the bottom of the window jambs, and wash the blinds.

18. If it has been over a year since you've had the carpets cleaned, now is the time to do it. The bare floors should also be waxed or polished, even if they're supposed to be "no-wax."

19. Put bright light bulbs in every socket made for a bulb. Buyers like bright and cheery so you have to keep it from looking like a dungeon. You'll also want to keep the drapes and shades open during the day, even if you're not in the habit, because it will make the property look better.

20. Clean out all of the closets, cabinets, and drawers. Get rid of things you haven't used in the past five years and pack up everything that you haven't used in the last year.

21. Closets should look as if they have enough room to hold additional items. You might need to box up off season clothes to make it look that way. Get everything off the floor and don't have the shelves piled to the ceiling.

22. Even though it may be inconvenient, you will be better off by selecting the furniture pieces that look best and putting the others in the garage, basement, or better yet, in storage. You can rent a mini-warehouses for a few dollars a month.

23. Go over the kitchen like a health inspector. Clean the oven and keep it that way, even if it means eating out more often. After cleaning the range, put new drip pans under the burners, or at least, cover the old ones with foil. Clean around the seal of the door to the dishwasher.

24. Bath tubs, showers and sinks should be freshly caulked. All the grout should be clean and in good condition. There are excellent cleaners that will do the job without tons of scrubbing. There should be no leaks in the faucets or traps.

25. Keep children's toys out of the front yard and off the sidewalks and front porch. Get the teenagers and children to understand the importance of keeping the house looking good while it is on the market. Take down the posters until the house is sold.

26. Clean the ashes out of the fireplace during the season that it isn't being used. 27. Be sure there is a light in the attic and it is easy and safe for people to walk.

28. If you don't have time for a garage sale, consider donating things to charity. Make a list of all the items and their estimated value, and be sure to get a receipt. The donation is tax deductible and may be worth more to you than the time and effort you'd put into a garage sale.

29. The pool needs to be sparkling and free of leaves.

A small investment that can make big returns

1. Change the wallpaper in the entry, kitchen, and bathrooms if necessary.

2. Replace ugly or out of style light fixtures.

3. Completely paint the inside of the home and put all new floor coverings down. Add new window treatments.

4. Ceiling fans are attractive and they are also very practical.

5. New appliances in the kitchen can be an exciting feature that can actually make the difference in a prospect choosing your home over another.

Just before a showing:

1. When the agent arrives with the prospects, have the drapes and window shades open to let in as much daylight as possible. At night, be sure that all of your outdoor lights are on, especially landscape and pool lights.

2. Open all the doors between rooms to give an inviting feeling. Turn on all of the lights including the lamps. Tune the radio to quiet, "elevator style" music.

3. Pick up any newspapers or magazines that may be lying around. See that the counters are free of unnecessary items and that dirty dishes are placed in the dishwasher. Take out the trash if needed. 4. If you have pets, get them out of the way. Not everyone may share your love for animals. Some people may be allergic to them.

5. The beds should be made and clothes picked up. Bathrooms should be clean and the toilet lid down.

6. When you leave the house in the morning or during the day, please leave it as if you know it is going to be shown. It's may be difficult and may even mean you have to get up a little earlier in order to take care of these important items. You never know when the right person is going to look at it, so you must always be ready for them.

For more information, call Rich Morse, your real estate professional, at (800)946-3895

Pricing a Home to Sell

The seller sets the price of the home, but ultimately the buyer determines the value. My job is to supply you with facts about what has sold recently and what is for sale now to help you make a decision.