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If you have been thinking of buying a home while prices and interest rates are low but have been sitting on the sidelines, Trulia’s Tara-Nicolle Nelson outlines the first steps you should take in order to best position yourself for a successful leap into the market. Once you have reviewed and digested these steps, call me to discuss how we can get started in securing that new home for you…

The recession has done lots of favors for buyers-to-be, including dropping prices and interest rates to bargain levels. But it has also created a lending and housing market climate in which loans are tough to get, tensions about buying into a down market run high, and transactions are harder and longer to close than they have ever been.

If I were talking to a friend who wanted to throw a New Year's 2013 party in her new home, here are the things I'd tell her to do, stat:

1. Fix credit problems. More deals than ever are dying on the vine, and credit problems are a top reason home-sale transactions fall out of escrow. Detect and correct errors on your credit report now by reviewing the federally mandated free reports you can get at AnnualCreditReport.com.

2. Study up. Do some research, both online and offline, into things like:

Areas: Start your online research into decision points like tax rates, school districts, neighborhood character and even prices in various areas. Check out NabeWise.com for some local insight into neighborhood flavor and personality.

When you start connecting with local agents, ask them to brief you on neighborhood market dynamics. They can give you a deeper view into need-to-knows like how long homes typically stay on the market and whether they generally go for more or less than the asking price, so you can be smart about how you search vis-à-vis what you have to spend.

Agents: This is the perfect time to ask your family and friends for a referral to an agent they know, have used and love (like Mike Hostetler!). When you've narrowed the field down to a few, call them up and set up a meeting to find out if you're a good fit.

Distressed properties: In some areas, more than 40 percent of the homes on the market are short sales and foreclosures, and they involve a very different timeline and set of facts than traditional home sales. Read up and talk with the agent candidates you interview about what you should expect from these types of listings, to minimize surprise and manage your expectations way in advance.

3. Save even more. You have worked hard for a number of years to save enough cash that you think you're in the clear when it comes to funding your down payment and closing costs. Studies show that after months of saving, people often let up and relax into a spending season. Even at your early stage in the process, it's easy to start noticing and buying the furnishings and touches you want to install in your new home.

While I don't want you to feel deprived or forgo amazing and affordable deals on things you know you're going to need, I assure you that no matter what amount of cash you have on hand, when you start house hunting, making offers, closing your transaction or moving in, the time will definitely come when you'll wish you had more.

You might want to ratchet up your offer a bit to best another buyer, or you might just end up with a place that needs a little sprucing up. It might be months before you know exactly what you'll need extra cash for, but now is not the time to press the gas pedal when it comes to your monthly spending.

4. Purge. Now's the time to sell, donate or give away as much of your junk or, excuse me, precious personal possessions as you can. Use the proceeds to pad your cash cushion, or tuck the donation receipts away for your tax records next year.

Start with these steps and chances are good that your house hunt -- and purchase -- will be in full swing by spring, if not sooner.

Following are some helpful tips for keeping those fireplaces and furnaces in tip-top condition for the upcoming winter.  Not only will these tips help keep you warmer, they can help save you money and maybe your life!  These tips come from Lowes and the Inman Newsletter, a good source for better living and home maintenance.

Enjoy and have a Merry Christmas and a Happy New Year!  I look forward to assisting you or anyone you know in looking for that next great home!

Wood-burning fireplaces

1. Inspection by a certified chimney sweep is a must. For heavy use, the chimney should be inspected and cleaned annually. Go up to five years if the fireplace is used only occasionally. The sweep should inspect for proper operation of the damper and for cracks in the flue liner, as well as sweeping the flue to remove creosote and other combustion byproducts.

2. Close the damper when the fireplace isn't in use.

3. Install a chimney cap if you don't already have one. You don't want creatures building their nest in your flue.

4. When starting a fire, "prime" the flue by holding lighted newspaper at the back wall of the firebox to start the warm air rising.

5. Burn aged, dry hardwood if possible. Fir or pine burns hot and deposits creosote in the chimney. Don't burn construction debris. It may contain toxic chemicals that will vaporize in the fire and could enter the living space.

6. Do not clean out the fireplace when the ashes are still hot. And dispose of the ashes in a place where wayward embers won't start a fire.

Fireplace with gas starter

1. If the flame goes out, wait at least five minutes before attempting to relight the fireplace. This allows time to clear the fireplace of gas.

2. Be alert for unusual odors or odd-colored flames, which are often a sign that the fireplace is not operating properly. In such cases, contact your dealer or licensed technician for servicing. Contact the gas company if you smell gas when the unit is off.

Gas furnace maintenance

1. An annual maintenance check of a gas furnace extends the life of the appliance and ferrets out any hidden problems. A qualified heating contractor should vacuum out the unit, inspect the blower motor, inspect the heat exchanger for cracks, check the electronics and perform a multipoint checklist to make sure the furnace is operating properly.

2. Clean or replace the furnace filter frequently during the heating season. This ensures that air returning from the inside of the house is unobstructed and clean when entering the combustion chamber.

3. Keep vents, space heaters and baseboards clear of furniture, rugs and drapes to allow free air movement.

4. Ensure there is free airflow around your furnace and make sure there are no storage items obstructing airflow.

5. Do not store or use combustible materials, such as chemicals, paint, rags, clothing, draperies, paper, cleaning products, gasoline, or flammable vapors and liquids in the vicinity of the furnace.

6. Carbon monoxide is a colorless, odorless and lethal gas that can occur any time there is incomplete combustion or poor venting. Any home that contains fuel-burning appliances, such as a fireplace or furnace, should have a carbon monoxide alarm installed according to the manufacturer's instructions.

Fall is in the air already, which means that another chilly winter can't be too far behind. So before the cold weather arrives, Paul Bianchia from Inman News has the following annual checklist of things to do to get your home ready for the change of season.

Inside your home

Check smoke detectors: Don't neglect that smoke detector any longer! Take some time right now to check the operation of detectors, and to change the batteries. If you have an older house with a limited number of smoke detectors, install additional ones at each sleeping room, and make sure there is one centrally located on each level of the home as well.

Install a carbon monoxide detector: As houses get closed up for winter, the chances of carbon monoxide poisoning from malfunctioning gas appliances increases substantially. If you have a furnace, fireplace, water heater, or other appliance that's fueled by propane or natural gas, or if you have an attached garage, install a carbon monoxide detector. They're available inexpensively from many home centers and other retailers, and offer easy, plug-in installation.

Service your heating system: Perform a complete system check of your furnace annually, either by yourself or by a trained furnace technician. Check for worn belts, lubrication needs or other servicing that might be required; refer to your owner's manual for specific suggestions, and follow any manufacturer safety instructions for shutting the power and fuel to the furnace before servicing. Check the condition of duct joints and insulation, and of course, change the filter.

Upgrade your thermostat: An older thermostat that's a couple of degrees off can result in a lot of wasted energy, and so can forgetting to set the thermostat down at night. You can take care of both of those problems with an upgrade to a programmable thermostat. Programmable thermostats are digital and typically very accurate, and they allow for easy, set-and-forget programming of temperatures for different times of the day, including energy-saving nighttime and workday setbacks.

Outside your home

Trim trees: Trees that are overhanging your home can be a real hazard. They can deposit debris on your roof, scrape against shingles during wind storms, and, worst of all, snap off with potentially devastating results. Have a professional tree trimming service inspect the condition of overhanging tree limbs, and safely cut them back as needed.

Check the gutters: Clear the gutters of leaf and pine needle debris, and check that the opening between the gutter and the downspout is unobstructed. Look for loose joints or other structural problems with the system, and repair them as needed using pop rivets. Use a gutter sealant to seal any connections where leaks may be occurring.

Break out the caulk: A few hours and few tubes of caulking can make a big difference in both your heating bills and your comfort levels this winter. Caulk around windows, doors, pipes, exterior electrical outlets, and any other exterior penetrations where cold air might enter. Use a good grade of acrylic latex caulk, either in a paintable white or, if you don't want to paint, use clear.

Drain sprinkler systems: In colder areas, now is the time to be thinking about having your sprinkler and irrigation systems blown out. You can rent a compressor and do this yourself, or contact a landscape or irrigation system installer and have them handle this for you. This is also the time to shut off outdoor faucets and install freeze-proof faucet covers as needed.

Adjust exterior grade: Fall is also a great time to look at the grade around your home, and make sure that everything slopes away from your foundation to avoid costly problems with ground water. Add, remove or adjust soil grades as necessary for good drainage.

You have made it through all the steps necessary to get to the closing table… Listed or made an offer on a property, negotiated the final price, the inspection and appraisal are complete, agreed to improvements have been made, and the finance company has given their blessing.  So you think you are ready to close?  Trust me, there are many surprises that can spring up at closing and make that day you have looked forward to for so long a miserable with more delays.  Check out this great article from Tara-Nicholle Nelson, follow these tips, and you may be on your way to a “quick” and easy closing experience…

Oh yes, don’t forget to call or email me if you or anyone you know are looking to sell and/or buy a home! Until next month…

I used to pass a mortgage company billboard on the freeway every day that read: “Surprises are for birthday parties.” (Implied: surprises are usually unpleasant when they arise in the context of real estate transactions.) The worst case scenario that looms large in the minds of buyers, refinancers and sellers alike is that they’ll get to the close of escrow and some big glitch will arise, coming between you and your home – or your cash.

Here are 4 key need-to-knows to help you avoid getting a nasty surprise at the closing table.

Read my lips: no new bills (or other financial blips). Most savvy buyers know better than to run out and buy a car while they’re trying to buy a home. But you’d be surprised at how many don’t think twice before opening new credit accounts to buy appliances or finance the kitchen remodeling work they plan to have done as soon as they get the keys to the place. Many a lender will run a quick credit check right before closing, mostly so they can detect whether your bills – your monthly obligations – have increased to a point that pushes your debt-to-income ratio too high to qualify for the home, or would make it tough for you to pay your new mortgage.

If your escrow runs 45, 60 or 90 days (or longer) as they commonly do in short sales and sales of bank owned homes, new accounts can certainly show up on your credit report in that time frame, endangering the deal and generating a surprise “no deal” from your lender just when you thought you’d be getting a set of closing docs to sign.

Also, some lenders conduct a last-minute check of borrowers bank account statements. Of course they want to make sure that you have the cash you need to seal the deal. But you might be surprised to learn that lenders also want to be sure that there are no unexplained, major deposits to your account, as well. They know some borrowers are inclined to borrow fistfuls of dollars from family and friends just before closing in an effort to scrape together the cash they need to close their home purchase by any means necessary.

And, unless the money is a lender-approved gift, that’s not allowed! (Why? The mortgage lender wants to avoid the friend or relative later saying they “own” part of the house, and also doesn’t want your obligation to repay a “friend-and-family” loan to interfere with your ability to repay your new home loan!)

If you have any large deposits (other than your normal income) come in just before or during escrow, be prepared to both explain them and document their source.

Make full disclosure when you first apply for your mortgage or short sale. Today’s loan underwriters are notorious for being sticklers about verifying and re-verifying the facts on your loan application. And as mortgage guidelines have tightened, lenders have also tightened up the underwriting process, creating a virtual gauntlet of review after review, underwriter after underwriter that you have to get past in order to close your deal. The most critical one? The funder – it is this underwriter’s job to give the thumbs up (or down) on wiring your mortgage money into escrow.

Funders are the toughest to get past, understandably, because the buck stops with them when it comes to their employer’s issuance of tens, even hundreds of millions of dollars of mortgage money every year. So, they want to be sure every last one of your loan qualifying i’s are dotted and t’s crossed – up to the very last possible moment before they green-light the disbursement. They have the right – scratch that –the responsibility to re-check your credit, assets, even your employment at the last minute, and they take this responsibility very seriously.

And on a short sale, the pre-closing title check can reveal legal judgments and liens against the seller that have been placed on the property up to the day of closing.

I’ve seen deals fall apart or come to the brink of failure the day or so before they were supposed to close because a buyer had lost a job, turned out to actually be legally married (the divorce they’d put on the application was not yet final), or a new collection account had surfaced. I recently saw a short sale nearly cancelled when a new collection account of the seller’s was filed as a lien on the house. Once, I even saw a deal killed beyond salvation when a last minute credit re-check surfaced a social security number flag that revealed one buyer was not in the country legally!

To avoid these sorts of last minute surprises, be 100 percent honest with your real estate and mortgage agents at the beginning of your homebuying (or selling) process about any and every area of your life that corresponds to a mortgage or short sale application question, even before you complete the application – there’s almost no such thing as an overshare at that stage. That puts them in a position to help you avoid closing table drama from the jump, even if it means they advise you to stay in your job, settle some bills or buy the home on your own, rather than with your spouse.

Watch the calendar closely. Buyers who originally were pre-approved for their mortgage many moons before they find the right property should obtain updated estimates of their mortgage payments and the cash they will need to close their purchase as their house hunting period goes on, and especiallyonce they have a firm closing date estimate. Mortgage interest rates can change dramatically over a period of a few months, and closing costs vary widely based on things as seemingly minor as whether your transaction closes at the beginning or the end of the month.

To avoid getting to closing and realizing that you have to come up with an extra few weeks’ worth of prepaid mortgage interest because your closing date changed, make sure your real estate and mortgage brokers are in close communication, and ask them to keep you apprised of how any closing date changes will impact the size of the check you’ll have to write to close the deal. And if you’re buying a property that is a short sale or foreclosure, ask them to give you this briefing as soon as possible (and as frequently as possible!) in the transaction so that you can prepare a little cushion of extra cash in case closing is delayed for reasons beyond your control (which happens very frequently in these sorts of sales).

Obtain and review your closing documents in advance. I used to give this advice mostly to buyers, urging them to ask their agent and mortgage broker to provide them with their loan and title documents at least a day or so in advance – earlier, if possible. If you have to sign 300 pages at the closing table and you know your keys and moving plans hang in the balance, the chances you’ll be scrutinizing every line are pretty slim – and if you do happen to catch an error, the time it will take the lender to revise and reissue a set of papers can throw your moving calendar entirely out of whack.

The best practice is to get these documents in advance, so you can check on line items like the interest rate and monthly payment in the comfort of your own home or office, ask questions of your representatives and initiate any corrections that need to be made without disrupting the plans for signing and closing.

And this applies to sellers, too – even though buyers have a much higher volume of paperwork to get through at closing (and errors can be costly), closing doc errors occasionally arise that have a serious impact on sellers, as well. I was once asked for advice in a situation where the seller owned two neighboring parcels of land, and the title paperwork for the sale of one erroneously included the other one, too! It took a boatload of high-drama legal wrangling to get the mistake corrected, and get the sellers' other lot back.

Did you know there are things you can and should ask about/from your prospective buyers? Tara-Nicole Nelson from Trulia provides us more great information below.  This time from a seller's perspective...

In today’s market, some sellers struggle to get even a single offer - much less an offer from a qualified buyer, at a reasonable price, on terms they can live with.  But just because the market is down doesn’t mean sellers are utterly powerless. Proactively asking prospective buyers the right questions can help put together the best possible deal, and stacks the decks in favor of it closing, as well - so here are those questions!  

1. Where’s your proof?  Real estate transactions fall out of escrow on today’s market more than ever (that just means that a contract is cancelled sometime between the time buyer and seller sign it and the time it was supposed to close).  This is a seller’s worst nightmare - to get your hopes up and your moving plans in motion then have to cancel it all because the deal falls through. And that’s just where the awful-ness begins; every seller fears pulling their home off the market in reliance on a contract that later implodes because of the reality that they might forgo other good buyers while your home is marked “pending.”

Deals often fall apart because the mortgage lender fails to approve the short sale, or the home appraises way below the seller’s bottom line.  But another common deal-killer is when the buyer’s financing falls apart.  While nothing is bullet-proof, smart sellers have their agents ask the buyers agent for robust proof that the buyer can actually do the deal.  

If your home’s buyer plans to use mortgage financing, you should get a pre-qualification letter from a mortgage pro who has actually run the buyer’s credit, seen their down payment money and checked their income and assets - it’s not overkill for your agent to call the buyer’s mortgage contact and check on how recent and how strong (or tenuous) this approval is.  (The more recent the better - down payment savings can be spent and even jobs can be lost between the time of the approval and the time of the offer, if many moons have passed.)

If the buyer is using cash, the listing agent should insist on receiving a recent proof of funds, like a bank account statement, documenting that the buyer has the cash they’ll need to close on hand.

2. Is there anything you’d like?  This question is all about personal property - the “stuff” that’s inside your home, from your furniture to your home electronics (not including the children - or the in-laws, if you have some in residence).  If you have things that are in great condition, are difficult to move, are very well-suited or custom-made for the home or that you were planning to sell in the course of your move anyway, you might want to ask your home’s buyer if they are interested in them. Maybe you have a price in mind, or maybe you are willing to give it away for the convenience of not having to move it - I’ve even seen sellers who can’t meet a buyer’s counteroffer by reducing the price instead offer up a valuable item of property instead, sealing the deal that way.  

If you do agree to leave some things behind - whether for a fee or for free, make sure you explain to the buyer in writing that you cannot offer a warranty on the item(s), and work with your broker or agent to ensure that the paperwork doesn’t run afoul of any lender guidelines.

3. For offers over the asking price: What’s your plan if it doesn’t appraise? Even on today’s market, a well-priced home in a great neighborhood can generate multiple offers, with the top offer usually exceeding the asking price. The problem is that if the recent sales in the area aren’t in that same price range as your amazing offer, your home could very well fail to appraise for the asking price (low appraisals are a very common problem these days - causing thousands of transactions to fall out of escrow).  And the other problem is that some crafty buyers count on this, strategizing to make a sky-high offer to beat the others out, planning all the while to demand a price reduction when the property appraises low.

Before you accept an offer that is higher than you or your agent feels your home will realistically appraise for, ask the buyer what they plan to do if the property appraises below their offered price.  Better yet, when it becomes clear that you’ll be receiving multiple offers, let all prospective buyers know that before you accept an over-asking offer, you will either (a) require that the winning buyer waive the appraisal contingency, and/or (b) require an agreement that the successful buyer will make up the difference between the appraised price and the purchase price, and proof that they have the cash on hand to do so. This is a surefire shenanigan minimizer, and will cause people to make only offers they will stand behind later.  (Now, if the home appraises below the listing price, that’s a horse of a different color.)   

4. Did you read the reports? Some savvy sellers who know their homes need a little work here and there (or a lot, as the case may be) take the smart step of having their home inspected or appraised in advance of even putting it on the market.  If they can’t afford to do all the work indicated in the report, many will adjust the list price to account for needed repairs, some even going so far as to obtain repair estimates from local contractors and offer them up to prospective buyers in the home’s disclosure packets.

In their excitement to find a property that meets their needs, some buyers barely skim the reports and may not realize that the list price reflects a discount for the needed repairs.  Best practices for sellers who have advance reports is to require buyers to acknowledge them (as by signing a receipt), and to even call out - in writing - the specific repairs for which the price is being discounted. Some listing agents in these situations even advise their sellers to insist on an as-is contract, so that the buyer has a crystal clear understanding that the seller cannot do any repairs.

That way, you don’t get two weeks into the transaction when the buyer understands the condition problems and (a) bails out of the deal, (b) asks for repairs or for more of a discount, or (c ) has their loan fall apart because a previous FHA appraisal came in low or their lender will not allow the home to be sold with your home’s particular “issues.”

Thanks for reading!  Good luck to you!  Don't forget to call me whether you are selling and/or buying a home!

Mike

Bernice Ross, CEO of RealEstateCoach.com provides us with some great advice which was intended for Realtors, but consumers should be aware of these things and ask your Realtor about them if these situations should arise.

Hopefully, you have never been involved in any real estate litigation. If you want to keep the attorneys at bay, here is a list of behaviors to avoid -- as well as some best practices that may keep you out of trouble.

Making matters even worse, you can do everything right and still end up in litigation. Sometimes you're just in the wrong place at the wrong time.

For example, there was one case where the seller failed to make a major disclosure about the property. The seller went bankrupt, so the plaintiff's attorney turned to the agents and the other people involved in the transaction. When the attorney discovered that the painting contractor had errors and omissions insurance, the contractor was named as a defendant as well.

Six best practices that may help you avoid a lawsuit

Below you will find six common sources of real estate litigation and six strategies that could help you to avoid being sued. Keep in mind I'm not an attorney and this should not be considered legal advice, and that people can file a lawsuit even if you didn't break the law -- for legal advice you should hire an attorney.

1. "What's that spot on the ceiling?"

I had an experience in which the brown spot on the ceiling turned out to be caused by a beehive with hundreds of pounds of honey. If you don't know the source you shouldn't speculate.

Best practice: Avoid diagnosing any issue regarding the condition of the property if you don't know the exact cause. Instead say, "I don't know what caused the stain on the ceiling. If you are interested in the property, then it's extremely important to hire a competent roofer and physical inspection service to thoroughly investigate the condition of the property."

In terms of what you put on your mandated written disclosure documents, avoid diagnosing there as well unless you can identify the condition with certainty. Instead, describe what you see:

Examples: "Brown stain noted on living room ceiling," and "Buckled sidewalk noted adjacent to ficus tree in front yard."

That said, it is important to disclose known facts about the condition of the property, as typically such disclosures are mandated by law. When in doubt, disclose. To protect yourself, it's smart to have your own inspector go through the property and to note where there are problems. You can give prospective buyers a copy of the report, and you should also make a note on the report telling prospective buyers that they should obtain their own inspections to verify the condition of the property at the time of sale.

2. "We don't need to disclose that inspection report."

Sellers often don't want to disclose previous inspection reports, especially if it caused a previous sale to fall apart. Failure to disclose these reports is always a bad idea.

Here's an example: A geological inspection on a house revealed that it could collapse during an earthquake. The first set of buyers walked away from the property. The listing agent failed to disclose the geological report to the second set of buyers. The house collapsed during the Northridge Earthquake and two people died. Needless to say, the settlement was several million dollars.

Best practice: When you have a transaction that falls apart due to the physical inspection, it's smart to disclose it to the buyer. If the seller won't disclose the report, walk away from the listing. It's simply not worth the risk.

3. "Where's the property line?"

While the seller may swear under oath that they know exactly where the property line is, that may not be the case. Example: The sellers said the fence was the property line, though they were actually off by one foot. That mistake cost them over $200,000.

Best practice: When a buyer asks about where the property line is, say, "If you want the exact location of the property lines, you should hire a surveyor."

4. "How much will the seller really take for the property?"

Example: A luxury agent had a listing that was priced at $2.4 million. When a journalist asked her at what price she believed the property would actually sell, she said $1.8 million. When the seller read this in the paper a few days later, he filed a lawsuit for an unauthorized price reduction. The judgment was for over $2 million.

Best practice: When a buyer asks you how much a seller will take for the property, there's only one correct answer: "The only way to know for sure is to write an offer."

In fact, you can't even represent that the seller will sell for the asking price, since in a multiple-offer situation the property could sell for over asking.

5. "Is this a good family neighborhood that has a low crime rate?"

You may believe that a property is located in a "great neighborhood," but there is subjectivity in that phrase, and neighborhoods are constantly changing.

Best practice: When buyers ask you about the characteristics of the neighborhood, such as crime, ethnic composition of the residents, and families who live in the area, provide the buyer with resources, such as links to online census, crime, and school and demographics data where they can study this information for themselves. You do not want to run afoul of Fair Housing laws by providing inaccurate information or appearing to steer buyers to or away from a particular neighborhood.

6. "It's a new property -- do I really need a physical inspection?"

If there was ever a time to have a thorough physical inspection, it's when a buyer purchases a new property. For example, in one of the new homes that we purchased, the plumbers hooked up the hot water to one of the toilets -- talk about being steamed!

Best practice: On all new properties, make sure that the buyer does a thorough physical inspection and walk-through prior to closing. The buyer has leverage before the transaction closes. Later, some builders aren't very good at following up on post-close problems.

Ultimately, your first line of defense is to always follow the Golden Rule: Never say anything negative about anyone, never represent what your buyer or seller will do, and never guess at the condition of a property.

Another great article by Tara-Nicolle Nelson about turn offs that make buyers cringe at the thought of considering your home and what you can do as a seller to to prevent your home from being an offender.  Following are the issues and steps sellers can take:

1. Stalker-ish Sellers: You may think your being helpful walking the buyer through your home during a showing, pointing out the wagon wheel light fixture you made by hand, the custom mural of a stingray you paid top dollar for to have it appear accross your family room wall, and noting the sounds of happy school children cutting accross your lawn to get to the next block and how their voices lifts your spirits.  However, the buyers are likely trying really hard to ignore, minimize, or figure out how to undo the very features of your home you hold dear.  They also likely want or need to hold ave "space" to speak with their mate and/or agent about things they may want to change to make it their home without you hawking over them.  Many times, the more these types of conversations and greater detail can result in more serious consideration about your home.

What's a seller to do?  Back off.  Remove yourself from the property during showings.  If you feel you need to be there, at least walk outside or go down the street to the coffee shop.  If the buyers have questions about the home, they will contact you and are likely to come up with better thoughtout questions if you are not standing over them while viewing your home.

2. Shabby, dirty, crowded and/or smelly houses.  You may think you already know this one, but it is amazing how sellers get use to what they think is a clean/neat home but not so much for a new set of eyes (or nose).  Buyers are about to make the biggest financial decision in their lives and they are going to make quick judgements on how much time they'll spend in the sea of available homes.  Your job is to make yours stand out from the instant they pull into your driveway and in your fron door.

What's a seller to do?  Other than listing your home at a competitive price, the only control you have over the process is differentiating your home from the competition.  Pre-pack the items you don't need or use anymore.  Do not show it without having it picked up, cleaned, and no dirty dishes or laundry sitting out.  Eliminate or reduce pet odor and clean out or remove litter boxes.

3. Irrational seller expectations.  Buyers are faced with a lot of hard work in researching and analyzing the market and what they can afford.  They are looking for somewhere they can afford for 5, 7, 10 years or more, so buyers have to educated about all the options including short sales, foreclosures, and a myriad of financing options.  The last thing they want to do is try to argue with a seller about unreasonable expectations or pricing.  Remember, there are so many properties for sale out there, they don't have to do this.  If they have issues to work through with your home, they aren't going to bother argue pricing.  If they do like your home, they may wait you out, hoping the market will "educate" you about properly pricing your home.

What's a seller to do?  Get real about pricing your home!  Get out of your little world and go see other properties for sale in your area comparable to yours.  If you have less curb appeal, space, or fewer upgrades, don't expect to get the same price for your home.  If you owe more than you can sell it for, maybe you shouldn't even consider selling or see if you can sell as a short sale.  If you must sell for financial reasons, over pricing will only mean it will be on the market longer and may never sell at an unreasonable price.

4. Feeling Misled.  You will never trick anyone into buying your home.  If you describe your neighborhood as funky and vibrant as code for the fact your home is under a railroad track and next to a biker bar, prospects will  figure this out quickly.  If you state offers will be verbally approved, don't go back the next day asking for additional money.  If you mislead or can't be honest about your listing, how can they expect you to be honest about condition or anything else?

What's a seller to do?  Buyers rely on sellers to be honest and upfront, so be both.  While you don't have to point out all the features or aspects that could be perceived as negative, don't gou out of your way to slant, skew, or spin the facts which will be obvious to buyers and their agents.  Review the description to be published before it is released to make sure you are not misleasding prospective buyers.

5. New, ugly home improvements: Who hasn't walked into a home that has been remodeled and upgraded in anticipation of the sale, only to discover the brand spanking new kitchen features a countertop made of not granite or marble, but pink tiles with a kitty cat in the middle of them.  Or pristine, just -installed carpet in a creamy shade of blue.  New improvements that are contrary to a buyers taste have as bad an impact as if you hadn't spent the money.  If buyers are thinking they will have to replace counter tops or carpet, they would rather think of doing it to older items than have to pay for your new upgrades in the price of the home and then still have to replace these things!

What's a seller to do? Check with a REALTOR before you make  a big investment in remodelling.  They can give you a reality check on which investments may give you a return on your investment and which may be a waste of time and money.  Updating appliances and painting/refinishing cabinets will be a lot less costly and give you a better return than a new $20,000 kitchen.  They can also help you identify more neutral colors and patterns which will appeal to a broader group of buyers.

6. Crazy listing photos (or no photos at all): We've all seen them.  Listing photos with garbage cans sitting in front of the garage door, piles of laundry on the laminite floor you are promoting, unmade beds and walls adorned with "unusual" artifacts.  These kinds of pictures will turn off potential buyers from even considering looking at your house in person.  Just as bad are listings with one picture or none at all.  This is immediately a signal that your are trying to hide something and they will click right past your listing without giving your home a second glance.

What's a seller to do?  Take more photos than you will ever use in your listing.  The beauty of digital photography is that you can take a lot of pictures and then later pare the number down to only the one's that put on the best "face" of your home.  Review the listing photos on-line as they may look different there.  Again, it is easy to remove or replace photos from the on-line listing.

Again, many of these items seem simple, silly, or already considered.  The problem is, the way we live isn't how prospective buyers live so to give yourself the best opportunity to move you listing quickly is to be "buyer friendly".  Remember, you can't go wrong with clean and neutral!

Call or email if you would like me to go through your home with you for free consultation regarding making your home the most "saleable" it can be! 

A great article by a fellow Realtor Tara-Nicole Nelson in the Trulia website identifies five things you should do now to prepare yourself to buy a home in 2010.  Basically they are the following:

1. Minimize holiday spending and save your cash!: I know this is easier said than done, but if you are serious about home ownership next year, you can do without the cashmere sweaters and gifts others will end up taking back after Christmas day anyway.  You should even scale back on the kids, putting more money away for that downpayment and spend more quality time with the kids and find ways to entertain as a family in exchange for gifts that have a shorter value.  A less materialistic holiday season wont really hurt anyone and who can argue against it.  Besides, the lower home prices and interest rates wont last forever.  Take the savings from your thriftiness and sock it away for that down payment and you'll benefit so much more in the long run by having a larger downpayment.

2. Research financing, neighborhoods, and prices on-line.  During these long winter days and nights, spend time on-line understanding what loans are available, what is required to qualify for these low interest rates, and identify who you would consider to work with in financing your next home.  Or call me for suggestions on who you might work with.

Decide where you would like to live in the future and find out how much homes in that area are selling for.  Are you being realistic in what you can afford vs where you would like to live?  You can find ratings on some neighborhoods and schools on line, or again, you can call or email me and I will be happy to assist you with this kind of information.

3.Rehab your credit if you need to. Go to annualcreditreport.com to check out your credit reports.   Audit them for errors and dispute any inaccuracies.  These errors can cause you to be disqualified for some preferred financing programs if they are not cleared up.  Also, don't close any accounts, even if you are able to pay some down or off.  These accounts support a positive credit history and your ability to earn and pay-off credit.

4. Spend some time running your own numbers.  Get your monthly finances in order for a clear read on your bills outside of housing.  Also, determine how much cash you will have available for a downpayment when you are ready to act.  This will allow YOU to determine how much house you can afford and not go by some "formula" the mortgage company says you can afford.  You must determine your comfort level.

5. Finally, speak directly with a mortgage broker and Realtor (me!) about putting an action plan together that works with your comfort level, affordability, and time table, so as a team, we can work together toward getting you into a new home you will be comfortable and happy with for years to come.

Please feel free to contact me to review and discuss all or any one of these steps now so we have a solid plan in place to get you into your next "dream home" in 2011.

Have a safe and happy holiday season.  I look forward to working with you in 2011!

Mike  

You are bombarded daily with mortgage brokers ads on the record low rates they have to offer.  The problem is, qualifying for these rates can be a real challenge.  Following are six simple steps to improve your FICO score and secure one of those record low mortgage rates for yourself!

1. Pull your credit reports on-line-for free!  Go to AnnualCreditReport.com which is a government authorized website where you can get your credit status for free, no strings attached!  Look for errors such as accounts that may not belong to you, credit card or loans with balances that are actually lower than being reported, and old debts that are paid off and should have been removed (7 years for credit cards/10 years for bankruptcies.

2. If you reopen accounts you thought were open but have actually been closed because of lack of use, you will boost your utilization ratio which is one element of your credit score based on how much available credit you have.

3. A biggie here, pay down some debt.  This will decrease your debt-to-income ratio and increase your credit score if done right.  See step 4.

4. You don't have to close any of your accounts. Instead, spread your debt out.  Closing accounts reduces the amount of credit that is available to you which makes it look like you are close to maxing out available credit.  So if you have one card near its limit and others that have a zero balance, consider transfering some of that balance among the other cards with a goal of 20-30% of available credit on each card.

5. Use credit regularly, HOWEVER, pay on time every time!  Having no credit purchases and having "sound" finances, including no debt doesn't mean a higher FICO score.  FICO is based on your history as a responsible user of credit by smart management and payment of your debt on an ongoing basis.

6. Finally, check in with your mortgage broker occasionally.  Have them pull your report and score. You will have accurate information which may allow you to qualify for a re-fi at a lower rate and they can advise you on additional steps to take to improve your score.  With these improvement steps, they can also directly submit a request for score adjustments with the credit bureaus which could be updated in just a few days.

While these steps wont take you from a 500 to a 700, they will improve your score and qualify you for that next best rate or for a re-fi on your current home.

Thanks for reading this lengthy blog. There is a lot of good information here. 

Remember, I am never to busy to assist you or anyone you know with your/their next real estate transaction.  I grow my business one client at a time!

Have a great fall!

Mike