Why Won't My Home Sell

Selling a property can often seem like a hit and miss proposition in today’s real estate market. If you find you are missing a lot, you need to figure out why.

The real estate market is the ultimate roller coaster ride for buyers and sellers. For buyers, it is all downhill until they finally find the home that fits their needs and desires. Sometimes it seems like it will never happen and then suddenly they find it. With sellers, the process works the other way. It is all uphill until the magic moment happens. A seller has to deal with lookie loos and other stragglers that may create the impression there are no serious buyers out there. In worse case scenarios, you might get no interest at all. If you are going through this state as a seller, you need to consider why your home won’t sell.

Most homes fail to sell for three primary reasons – price, appearance and exposure. Let’s take a closer look.

The recent sellers’ market is over. You need to understand and accept this. You can no longer just list your home at any old price and get an offer. The demand simply isn’t there any more. You need to go back to traditional approaches, which means sizing up the market in your neighborhood. What are other homes selling for? How does your home measure up to them. Try to be objective when doing this analysis and defining the correct listing price for your home. If you can’t stomach selling for the lower price, pull the property from the market and sit on it until things improve.

Our second reason is appearance. Appearance refers to curb appeal and how your home shows. This is a fairly simple thing to fix. First, get the yard and landscaping in shape. Second, make sure your home is spic and span when people come to see it. Clean, clean and then clean some more! For a helpful hint, bake something that smells delicious when prospective buyers are coming over. Trust me, it helps.

With exposure, we are referring to your marketing. Build it and they will come may have worked in a movie, but it does not in real estate. Stick up signs. List it in the paper. List it online. Make sure it is in MLS. Tell everyone and anyone you are selling. Carry fliers with you so you can hand them out if anyone shows interest. The property is no longer your home. It is a product to be sold. Market it as such.

While we are in the middle of a slow real estate market, it does not mean sales are not occurring. If you are not having any luck, make some by addressing the three issues above.

Raynor James is with FSBOAmerica.org - learn to sell my home and save money on real estate agent commissions.

2007 Residential Real Estate Forecast

In many ways 2006 was the non-year for real estate. The National Association of Realtors(R) reported that sales will be down in 2006 about 9 percent from 2005, a record setting year.Many markets waited for spring market which was disappointing. Markets then believed buyers would re-group in summer,and buyers were a no-show. Fall and last market hopes were dashed when fall came and went, with plenty of traffic at open houses, but few contracts.

Pent-up demand from a lackluster 2006 should drive buyers back to market. But, these savvy buyers will be on the lookout for realistic prices and seller give-backs. Most buyers will tell you point-blank that their income gains in the last five years have not matched rises in home home prices. Real estate markets won't bounce back until home sellers realize as prices go up, the pool of buyers shrinks proportionately. Buyers with a home to sell will include a home-sale contingency, so sellers should be prepared to accept one.

Inventory levels will remain in the six to seven moth range. Listing leftover's from 2006, will roll into 2007. The leftovers are either un-realistic sellers whose pricing is from the "froth years" or thier homes haven't been updated to keep up with the stiff competition and time-starved buyers.

Mortgage rates will remain in the 5.5% to 7% range. Historically low, but low rates by themselves haven't motivated buyers to write real estate contracts in 2006.

Foreclosures will rise. Risky loans such as Interest-Only, Option ARM's and 100% financing will tap out buyers whose used these "appreciation-oriented" mortgages.

Prices will drop 4-10% before leveling off in the majority of non-seller's markets. Homes that are priced right and are in good condition which offer features and finishes that buyers demand, will sell close to list price in moderate market times. Flat or negative appreciation.

Florida, Arizona, California and Washington D.C., will have unstable markets. Until sellers get a reality-oriented wake-up call markets in these locales will sputter and hiccup.

Ten states posted solid sales gains in the second quarter of 2006 versus 2005. Reported the National Association of Realtors(R). The gains ranged from an impressive 48% in Alaska to a low of 5.3 percent in Georgia. The other eight states included Arkansas, Texas, North and South Carolina, Vermont, Tennessee, New Mexico, and Wyoming.

Residential real estate will return to being viewed as shelter and housing and trend away from being viewed as a speculative investment.

What about 2008? Stable, pre-frenzy market with appreciation at 1% annually.

Mark Nash, is a residential real estate author, broker, columnist and writer based in Chicago. His fourth book 1001 Tips for Buying and Selling a Home received eighteen five star reviews on Amazon.com. His latest book; Real Estate A-Z for Buying & Selling a Home will be published in December 2006. Mark publishes a free monthly ezine for real estate professionals. Agent to Agent features ten articles that offer free reprints for agents, home buyers and sellers through EzineArticles.com . Real estate news and book reviews, Celebrity Homestyles, Home selling and buying tips and advice, Joke-of-the-Month, Help this Agent, and agent marketing tips. Over 5000 subscribers in the U.S. & Canada. Subscribe at: http://www.1001realestatetips.com/forrealestateagents.html

Negotiating a Real Estate Contract

Negotiating the purchase or sale of a home can be fraught with struggles, ill-will and nastiness. coming the three deal-killers is easy if you remember one thing. Keep your emotions out of real estate contract negotiations. It will reward you handsomely. Plus, if you exit successfully from a ugly negotiation you still have to endure several weeks or months with the other side. On top of that, you might need to go back to the buyer and seller and ask for a closing date extension or inspection repairs. If wear out the other side early, they'll be much more unlikely to agree to anything you ask for simply because they don't like you or your attitude.

There are three outcome variables when a real estate contract is drafted by the buyer and presented to the seller.

The seller will accept the terms=contract.

The seller will change the terms=counteroffer.

The seller will reject the terms=the end, start over or walk away.

When the parties to a real estate contract accept the terms, it is known as acceptance. Most states require all real estate contracts to be in writing. And, they require that all offers of price or other terms be in writing. You might want to throw out a number out to a seller in a conversation, but it is not enforceable and is considered by real estate professionals as undesirable.

The counteroffer is the most common scenario in real estate contracts. Many buyers and sellers like the back and fourth of counteroffers and negotiations. But, be forewarned, some buyers and sellers have a low threshold to extended counteroffering. My rule of thumb is once you have gone back and fourth five times, you start to bog down the process. Each side should develop a strategy for negotiating before the real estate contract is formally presented.

In some situations a real estate contract is rejected before acceptance, by either side at any time. Some reasons for rejections are: incompatible closing dates or other terms, price, or another real estate contract is presented and it is more attractive to the seller. I am of the opinion that it is better for a contract to be rejected during negotiations than fall-through after acceptance. Like many things in life, accepted contracts are easier to get into, than out of.

Low-ball offers. Much more common in 2006 and 2007 than in previous years. Real estate market pendulums have swung in the buyers favor. That being said, some of the low-ball offers that buyers recently have attempted to negotiate were twenty-percent under list. Sellers of appropriately priced homes did not even respond. The rule of thumb is to not go below ten-percent of list for an opening price offer. If you can sweeten other terms of a contract to counter the low price, it could help keep you in good graces with the seller.

Counteroffers are like volleyball. Each time an counteroffer is given back to the other side, you will start to know where they want to go on price and terms. If sellers or buyers don't move off their original price much, they are showing signs of digging in their heals, don't expect much movement, each round. Early signs of rigidity in counteroffers tell me to buckle your seatbelt another notch, because the other side is not flexible.

The take-it-or-leave-it offer. Sometimes negotiations get near an impasse. The other side might call your bluff and say this is it, take-it-or-leave it. If you developed a strategy as I mentioned earlier, you will know what to do with the ultimatum. And, I hate to say it, the folks who do these ultimatums also like to try and come back after you've met the ultimatum and ask for another bump. No, no, and no.

Highest and best offer. Sometimes sellers or their agents get restless in negotiations and want to call your bluff. They'll say give us your highest and best offer. This is a tricky situation, sometimes if your not in love with a home, you might withdraw the offer and not tip your hand. Especially if you might revisit it later after pursuing other homes.

Bidding Wars. Going into bidding wars is not for the faint of heart. You will probably over-pay for the home, but if you truly want it, it's okay. You might though have to come up with some extra cash for the down-payment if it doesn't appraise out, at an inflated price. One of the main problems in bidding wars is not knowing how many offers are on the table. Real estate license laws usually favor the listing agent 's need for confidentially with their client, the seller. I've also seen all the offers drop out except for one, and you end up negotiating against yourself. I tell my clients to not participate in a multiple offer situation. They become competitive and emotional, I prefer to stay on the sidelines until the dust settles. Since you haven't tipped your hand, if you are invited to submit your contract after the multiple peter out, you will have a fresh slate with all the frenzy just a learning experience for the sellers.

Don't be rushed through negotiations. I have seen contracts put into acceptance in hours and at the worst, weeks. I would say, a good negotiation should take no more than two days, with five rounds of counteroffers. If either side starts to delay their response to a counteroffer more than one day, it's a red flag. Give reasonable deadlines for a response to all your counteroffers.

Full price offers. Sometimes if a home is priced right and new to the market, and you really want it, offer full price. I've seen homes slip away over a thousand dollars, and in the scheme of things or as a ratio of list price, it's dumb.

Withdrawing an offer. If you are working with unreasonable people, or terms that are agreed to are change and continually in flux, walk away. First though, withdraw the offer. Withdrawing can really tell the other side that they are unreasonable. Sometimes they get it, sometimes they don't. But, most houses are worth the trouble of torture-some sellers or buyers.

Keep a written record of negotiations. It's easy after a couple of rounds to forget that you agreed to leave the basement refrigerator, or as a buyer to shorten your mortgage contingency, make sure you write down all the changes each round, all experienced real estate agents do.

Mark Nash, is a residential real estate author, broker, columnist and writer based in Chicago. His fourth book 1001 Tips for Buying and Selling a Home received eighteen five star reviews on Amazon.com. His latest book; Real Estate A-Z for Buying & Selling a Home will be published in December 2006. Mark publishes a free monthly ezine for real estate professionals. Agent to Agent features ten articles that offer free reprints for agents, home buyers and sellers through EzineArticles.com . Real estate news and book reviews, Celebrity Homestyles, Home selling and buying tips and advice, Joke-of-the-Month, Help this Agent, and agent marketing tips. Over 5000 subscribers in the U.S. & Canada. Subscribe at: http://www.1001realestatetips.com/forrealestateagents.html

Decorating Do's and Don'ts for Home Sellers in 2007

Home sellers contemplating placing there home on the market in the next year and want to prepare, should consider what trends home buyers are saying yes too. This tips are based on a survey of 923 real estate agents, managing brokers and association executives who responded to a survey request in Agent to Agent. Agent to Agent is distributed monthly to real estate professionals in all fifty states and Canada.

Do's

-Consider glass as an option to ceramic tiles. Ceramic doesn't offer the decorative benefits of newly re-discovered glass tiles that reflect light and add a glisten and glow to kitchens and bathrooms. The cost difference is minimal.

-Specify drawer-style refrigerators/freezers and dishwashers. You’ll love the deign flexibility to place where you want them. Perfect for contemporary kitchens where you want only base cabinets with open shelves above.

-Research exotic and reclaimed woods. Recycled wood salvaged from soon-to-be-demolished buildings and eco-friendly rosewood is in growing demand as homeowners mainline individualism and earth-friendly wood finishes.

-Luggage rooms. With today's on-the-go family, where to stash all their luggage is a growing problem. Most harried travelers want it in one place, to find the right piece for the right trip and to have their travel sizes of 3 ounces or less in at-a-glance place.

-Look for bolder, deeper colors for trim like shutters, doors, and window frames. Professional color forecasters believe this is the next big trend.

-Textures. Mixing natural materials such as slate and stone, wood and natural fibers, earthenware and recycled barn wood. Anything weathered; wood, metal and glass gives newer homes a sense of history.

-Install engineered stone compound countertops. Cheaper than granite, but come in a variety of colors and finishes, this synthetic alternative to nature is cutting edge in 2007 kitchens.

-Place a second laundry in your Master Suite. Walk-in closets are everywhere, why not put your own laundry next to your dirty clothes? They've been popping up more and more in 2006, and sure to go mainstream in 2007.

-Put up a wrought iron fence instead of a wood or chain-link fence. Wrought iron says luxury to homebuyers.

Don'ts

-Install bowl-shaped above-counter bathroom sinks. The splashing and over-all up-keep has earned these the reputation of nice to look at, but don't want one.

-Install too many glass kitchen cabinet doors. It looks great in magazines, but busy homeowners don’t have the time to keep their kitchen cabinets organized to keep the picture perfect look. Plus if you hate washing the windows, having more glass in a greasy room like a kitchen is high-maintenance.

-Minimize breakfast bar countertop overhang. Buyers hate when they can’t pull up a stool comfortably for a cup of coffee. Make sure yours extends past base cabinets at least twelve inches, preferably fifteen-eighteen.

-Go cheap and omit trim around interior window openings. Drywall finishes-only around windows doesn’t say contemporary, it says like a bullhorn; cheap.

-Utilize concrete-blocks in exterior walls in new construction. One, it’s ugly and two, unless they are properly sealed at installation and every three years thereafter, they’ll leak moisture. Mold is a big by-product of improperly installed and maintained concrete-block, inside or out.

-Specify spiral staircases. Once the rage for mid-seventies make over's, now death to a home seller. The boomers have aged, their kids don't like them, unfriendly to pets and young children. Take yours out and put in a standard staircase (inside or out) before you sell.

-Underestimate softness of Bamboo wood floors. The first user reviews are in on this popular eco-friendly flooring, and they're not pretty. Easily dented and scratched, and prone to warping from variations in climate and humidity levels.

© Copyright 2006 Mark Nash
Mark Nash, is a residential real estate author, broker, columnist and writer based in Chicago. His fourth book 1001 Tips for Buying and Selling a Home received eighteen five star reviews on Amazon.com. His latest book; Real Estate A-Z for Buying & Selling a Home will be published in December 2006. Mark publishes a free monthly ezine for real estate professionals. Agent to Agent features ten articles that offer free reprints for agents, home buyers and sellers through EzineArticles.com . Real estate news and book reviews, Celebrity Homestyles, Home selling and buying tips and advice, Joke-of-the-Month, Help this Agent, and agent marketing tips. Over 5000 subscribers in the U.S. & Canada. Subscribe at: http://www.AgenttoAgentEzine.com

What's In - What's Out with Homebuyers in 2007

What's In, What's Out with Homebuyers in 2007 by Mark Nash is based on a survey of 923 real estate agents, managing brokers and association executives who responded to a survey request in Agent to Agent ezine, published by Mark Nash. Agent to Agent is distributed monthly to real estate professionals in all fifty states and Canada.

In

-The housing correction. My prediction in the 2006 "What's In, What's Out" I forecasted a soft decline in home prices in most markets. In 2007 project a 5-8% decline in prices on average between single-family and condominium homes.

-Homes that are priced right. It isn't the boom market of 2005, look at only the sold comparable's from the last six months. Forget the cocktail party chit-chat when all you heard was record prices in the shortest market times in U.S. real estate history.

-Online home valuation sites ( Zillow.com). Mainly those that utilize up-to-date and reliable home sale data. Technology is great when it works, but tread carefully with online valuation web sites. Ask yourself how long does it take your recorder of deeds and real estate transactions to record them? If up-to-the-minute, okay, otherwise plan the lead time into the online valuation to spew out accurate information.

-Market timing. Many buyers and sellers were on their own timelines in 2006 and they missed opportunities that were created by not recognizing the real estate markets ebb and flow. Spring is high market, the most demand by the largest number of buyers. Summer is a good market, fall is fair, and winter is the remnant market, the left-over buyers and sellers from the high, good, and fair markets.

-Savvy buyers. With interest rates historically low and bent-up demand from a soft year in 2006, the deals and lack of frenzy won't last long. "Deferred demand" from 2006 could ignite a mini-frenzy in some markets.

-Third places or officetels. Home offices are on the rise, though those who work from one, need more than a coffee shop or hotel lobby for business meetings. Look for alternative work spaces that bridge the home office with hourly rentals of conference room-type spaces that offer technology and privacy.

-Upscale garages. It's no longer the out-of-sight-out-of-mind dumping ground. Today's garage owners want them decked out with cabinet and storage systems, mini-refrigerators, insulation, heating and air conditioning and durable but residential-looking flooring.

-Caving. Man caves and Mom caves are coming out of the closet. Personal dedicated space for one person in a household can go and work on projects or "chill" without being disturbed and if so only in an emergency.

-Two home offices. Rising gas prices and commuting times have created more two-work-at-home families. Size matters, make sure each is at least ten-by-ten feet.

Rejuvenation rooms. A one-stop space for exercising, meditation, yoga, sauna and fancy steam showers. Showers are going upscale too. Waterfall fixtures, programmable temperature and water flow are the next trend for "showerers".

-Heated patios, walkways and driveways. Northern baby-boomers are tired of shoveling and are looking for ways to decrease winter maintenance, plus many have discovered how also heating the patio can add an extra couple of weeks enjoyment in spring and fall.

-Snoring rooms. Offered as options in new homes, adjacent, second bedrooms to the master, offer relief from the "buzz saw" and an alternative to the couch. A godsend for millions of relationships nationwide.

-Modular Housing. Many think of the out-dated double wide as the typical modular, but modular options and quality have exploded from the top end 11,000 square foot home, with every whistle and bell, complex finishing details, to the bread and butter 1200 square foot starter home. Low-cost, factory-built construction and quick conception to foundation times, make this the affordable wave of the future.

-Sustainable Design. Sustainable design is based on three areas; energy conservation, indoor air quality, and resource conservation. Viewed as new-age in construction circles, sustainable design looks at homes holistically, and not just a group of unrelated systems thrown together. Natural forms of energy, such as wind, solar, and geo-thermal if available on-site, are maximized.

-Structured wiring. Right up there with all the buzz about green homes is structured wiring, now entering the main stream must-have for technology based home buyers. Coaxial TV cable (RG-6), Category 5E voice and data lines, distributed radio, remote camera security are wired through out a home into multi-outlet boxes called in the trade, home network centers.

-Mixing finishes on kitchen base and wall cabinets. Matchy-matchy is out in kitchen design. The new look is to have stained-wood bases and painted wood upper cabinets. The old-europe-look rules, but with today's appliances.

Out

-"As is" in home sale marketing. Anything went in the boom market, but if you're planning to use "as is" in 2007, forget it. The two letter-two word kiss of death, buyers see it as a red flag about the home and you the seller. You have too much competition to be chasing buyers away.

-Buyer incentives. Free cars don't sell houses, realistic pricing does. Gimmicks only confuse and distract buyers. Cut to the chase and deduct the cost of your free-with-purchase from your current price and send the signal to buyers that you're selling real property not personal property.

-Endless Open Houses. The open house pendulum has swung from " the house sold in the first day" to "we need to have our house open every Sunday". Desperation is when your home is open every Sunday. Buyers know and track it. Plan on every three weeks to have a public open house.

-Over-full-price offers. It was a strategy in the boom market to under-price a home and let the market set the selling price. Not today, one thing that won't change in 2007 is that every buyer will want a deal, and walk from one if they don't get one.

-Bedrooms not large enough for a bed. In the boom, rehabbers and developers learned the fastest way to profit was to increase the room count of a home of an existing home. Bedrooms shrunk to walk-in closet size when a four-room one-bedroom was gut-rehabbed into a four-room two-bedroom. Or, the doorways and windows eliminate required wall space. Savvy agents kept asking, can you fit a queen-size bed in either room? And the answer was usually, no.

-Loads of glass upper kitchen cabinet doors. Buyers say it looks great, but many who specified and experienced it, firsthand don't have the time to keep their kitchen cabinets organized. Plus if you hate washing the windows, having more glass in a greasy room like a kitchen is high-maintenance.

-Bowl-shaped above-counter bathroom sinks. The splashing and over-all up-keep have earned these the reputation of nice to look at, but don't want one.

-Any shiny metal finish. Brushed nickels and pewter's are in and antiqued and polished brass is out.

-Stainless-steel refrigerators and dishwashers are a fading trend. The cold look and higher maintenance of steel is shifting buyers to specify warmer colors in kitchen appliances.

-Spiral staircases. Once the rage for mid-seventies make over's, now death to a home seller. The boomers have aged, their kids don't like them, unfriendly to pets and young children. Take yours out and put in a standard staircase (inside or out) before you sell.

On the way out.

-Bamboo floors. The first reviews are in on this popular eco-friendly flooring, and they're not pretty. Easily dented and scratched, and prone to warping from variations in our climate and humidity levels.

Hardwood laminate floors. The word is out that these noisy poor relatives of solid hardwood that don't stand up to multiple sanding's to change color or to remove stains.

-Home sellers who smoke in their home while it is being marketed. Buyers hate second-hand and stale smoke odors. Marketing your home is not the same as living in it. If you have to smoke go outside.

© Copyright 2006 Mark Nash

Mark Nash, is a residential real estate author, broker, columnist and writer based in Chicago. His fourth book 1001 Tips for Buying and Selling a Home received eighteen five star reviews on Amazon.com. His latest book; Real Estate A-Z for Buying & Selling a Home will be published in December 2006. Mark publishes a free monthly ezine for real estate professionals. Agent to Agent features ten articles that offer free reprints for agents, home buyers and sellers through EzineArticles.com . Real estate news and book reviews, Celebrity Homestyles, Home selling and buying tips and advice, Joke-of-the-Month, Help this Agent, and agent marketing tips. Over 5000 subscribers in the U.S. & Canada. Subscribe at: http://www.AgenttoAgentEzine.com

Top Mistakes of Home Buyers and Sellers in 2006

2006 was an unusal year for residential real estate. The much over-hyped real estate bubble didn't pop. But, home buyers and sellers did a slow dance to determine who was going to be driving the bus. Seller's continued to be stuck in the previous mold of "we rule". Buyers on the other hand saw loads of inventory and rising market times, both signals that they had more clout than ever before. Here are the top mistakes both sides made in 2006.

Sellers

-Used incentives instead of cutting price. Buyers are not impressed by stubborn sellers refusing to lower their price. Who insist on offering buyer incentives of free cars to credits for one-year property taxes or condominium assessments. Buyers, savvy than ever aren't buying the old sales trick, mark-up to discount. Cut to the chase, lower your price and forget the razzmatazz.

-Marketed an energy inefficient home. Forget the real estate bubble, energy prices are a primary concern for homebuyers. Stung by rising higher commuting costs from recent increases at the pump, homebuyers in the last three months have paid extra attention to energy costs during their home search. From my experience and hearing client reports as they look for seasonal homes in southern climates, natural gas, heating oil and electricity costs have moved dramatically up the list as potential deal-killers. Sellers should be prepared for buyer inquiries about energy consumption and efficiency improvements.

-Thought it was still a sellers market and priced accordingly. Pricing is king in today's market. Throw your spread sheets away and your dreams of huge circa profits. Look only at sold comparable's from the last six months, that's exactly what the buyer's mortgage lender will use. Price at market, forget wiggle room, you need to sell, act like it. Seven months ago was a different market.

-Wanted top dollar for a "dated property". Serious sellers should take a good honest inventory of their home. If it lacks recent "must-haves" from buyers such as updated baths and kitchens, a home office or nook, ample and organized closets or features dated paint colors, wallpaper or mirrored walls, take the time and if necessary the money to make your home appealing to buyers that no longer have the time or interest to update a home. Don’t wait for feedback from prospective buyers about a lack of must-have features in your home. Deliver from your first day on market what buyers are looking and willing to pay extra for in their next home.

-Endless Open Houses. The open house pendulum has swung from " the house sold in the first day" to "we need to have our house open every Sunday". Desperation is when your home is open every Sunday. Buyers know and track it. Plan on every three weeks to have a public open house.

-Ignored how long it would take to sell an attractive and well-priced home. Figure out the absorption rate for your market. This rate will tell you how many months or years of for-sale inventory there is in your market. Three months is fine, six months is okay, nine months is troublesome and twelve-plus, will not be pretty.

-Refused to accept home-sale contingencies. The contingent-free contract is now just a memory. If you want to sell your home in 2007, keep an open and flexible mind on contingencies. Many buyers want to "move-up" but need to sell their home first, before they can close on yours. Wise sellers realized this early on in the transitional market of 2006.

-Forgot to bury St. Joseph before listing their home. With the slow down in the real estate market even my Jewish home sellers have discovered St. Joseph. A statue of The Holy Family's foster father buried in the yard of home being sold, buried upside down should bring a buyer, or so goes the folklore. Several web sites on the Internet offer a kit that outlines the correct procedure and includes your own St. Joseph.

-Insisted on smoking inside their home while it was being marketed to buyers. Buyers hate second-hand and stale smoke odors. Agents from across the country reported rising in-house smoking among motivated sellers. If you have to smoke go outside.

Buyers

-Low-balled offers to purchase. Potential home buyers wanted deep-discount deals in 2006. Especially with all the media talk of residential real estate markets “correcting” nationwide. Homebuyers need to understand the dynamics of constructing a home purchase contract and how their first price offer can set the stage for price success or failure with a seller. Use sold comparable's from only the last six months, that's what lenders do.

-Thought it was a bubble and not a housing correction. My prediction in the 2006 "What's In, What's Out" I said a soft decline in home prices in most markets. In 2007 I will define soft as 5-8% decline in prices on average between single -family and condominium homes.

-Took as fact online home valuation web sites opinion of value. Technology is great when it works, but tread carefully with online valuation web sites. Ask yourself how long does it take your recorder of deeds and real estate transactions to record them? If up-to-the-minute, okay, otherwise plan the lead time into the online valuation to spew out accurate information.

-Disregarded market timing. Spring is high market, the most demand by the largest number of buyers. Summer is a good market, fall is fair, and winter is the remnant market, the left-over buyers and sellers from the high, good, and fair markets.

-Used Option Adjustable Rate Mortgages. Originally used by the wealthy to finance a home for a short-term, predatory lenders rolled out the Option ARM for credit-challenged and/or highly leveraged buyers. The key feature of this not-so-new-fangled mortgage being negative amortization. Buyers should run not walk from Option Arms.

-Walked from a deal based on the seller couldn't live without them. Bless the patient sellers in 2006 who had to weather uptight, over-cautious buyers who created a surge in contract through's. Many naive buyers wanted everything their way, savvy sellers tried to placate them and but in over ten-percent of transactions sophomoric attitudes and behavior prevailed and the deal didn't go through.

-Bought homes with bedrooms not large enough for a bed. In the boom, rehabbers and developers learned the fastest way to profit was to increase the room count of a home. I saw bedrooms shrink to walk-in closet size when a four-room one-bedroom was gut-rehabbed into a four-room two-bedroom. I kept asking, can you fit a queen-size bed in either room? Boy, the looks I got from gnarly sales representatives.

-Didn't look into reserve funds and special assessments in potential condo purchase. The building or development might look well maintained, but conduct a careful audit of budgets, association meeting minutes and reserve funds balances. Healthy reserves could be your pre-nuptial for a condo building. Reserve funds are set-aside finances for capital improvements such as new windows, roofs and elevators. Substantial reserve funds minimize special assessments levied by ill-managed buildings fro improvements.

© Copyright 2006 Mark Nash
Mark Nash, is a residential real estate author, broker, columnist and writer based in Chicago. His fourth book 1001 Tips for Buying and Selling a Home received eighteen five star reviews on Amazon.com. His latest book; Real Estate A-Z for Buying & Selling a Home will be published in December 2006. Mark publishes a free monthly ezine for real estate professionals. Agent to Agent features ten articles that offer free reprints for agents, home buyers and sellers through EzineArticles.com . Real estate news and book reviews, Celebrity Homestyles, Home selling and buying tips and advice, Joke-of-the-Month, Help this Agent, and agent marketing tips. Over 5000 subscribers in the U.S. & Canada. Subscribe at: http://www.AgenttoAgentEzine.com

1001 Tips for Buying and Selling a Home is a Classic

Nash's fourth real estate book working as a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on ABC-TV, CBS The Early Show, Bloomberg TV, CNN-TV, Chicago Sun Times & Tribune, Fidelity Investor’s Weekly, Dow Jones Market Watch, HGTV.com, MSNBC.com, The New York Times, Realty Times, Universal Press Syndicate and USA Today.

Savvy tips from someone that knows first-hand the questions home buyers and sellers want answered in a just-the-facts-please format for time-starved consumers. No millionaire in this books title which features all the nuts and bolts of residential real estate from surfing Internet home sites to closing or escrow. A handy desk reference for buyers and sellers who need a go-to resource.

The author is a contributing columnist to www.realtytimes.com, www.realtor.org, www.brokeragent.news , and www.principalbroker.com . His to-the-point tips stretch from "What's In, what's out with homebuyers in 2006" to "Foreclosures are not the next generation for property flippers". Not shy to address the changing brokerage world or advise home sellers to have a new attitude concerning pricing their home in 2006, Nash is known as "Hints by Heloise of Real Estate."

A sample of Nash's just-the-facts for home buyers and sellers in 2006.

-Low-ball offers. Offer over 87% of list if you serious, otherwise you will alienate the seller early on in negotiations.

-Homebuyers looking to purchase in over-heated markets should consider how much current prices have risen over the last year, two-years and five years. Contrast those rates with the potential pool of buyers to pay future prices along the same rates in the same markets. Will the local economy and personal income increases support spiraling home prices? Here’s the bottom-line, are you willing to pay your projected appreciated sale price when you go to sell?

-Foreclosed homes are not always bargains. According to industry sources foreclosed properties don't sell for significantly less than other homes in most U.S. markets. If your in a high demand market don't expect steep discounts. Don't forget to factor in major repairs and minor improvements that foreclosed homes need. If owners couldn't pay the mortgage, they couldn't afford the maintenance, and often trash the homes in retaliation.

-Rooms need design basics for functional elegance. Group accessories together. Don't spread like-kind decorative objects around a room. Place collections together to give them more visual power. If you have a chair it needs a table next to it and a lamp, so it is a cozy reading station. Artwork should be streamlined and focused for impact. Hang artwork close together instead of scattering around a room. Keep the range of colors in a room tight. Too many colors is distracting and not inviting, you want buyers to linger.

-Place a classified ad on your local Craig's List. Many first-time buyers search this popular directory of rental and purchase homes. You'll be amazed at how many inquiries you receive from devotees to this list. -Sellers set home prices. Wrong, not in 2006. Sellers and their real estate agents can set value parameters, but sold comparable's are based on what the buyer perceived as a fair market price.

-Off-beat locations such as busy streets, corner lots, noisy trains and jets will be more difficult to sell to choosy buyers. Buyers want quiet, middle of the block locations away from busy intersections and train tracks, both commuter and freight lines. You might get a discount when you buy for a second rate location, but it's one thing you'll never be able to improve.

-The certificate of occupancy. All new construction and any renovation that requires a building permit must have a certificate of occupancy issued before it is habitable. Your mortgage lender will require one from the developer if you are purchasing new construction prior to closing on your loan.

-Cracked heat exchangers on furnaces indicate that it's a health issue and time for a new furnace. Home builders, owners and developers can put in lower-quality and under-sized furnaces that can have prematurely cracked or damaged heat exchangers. If your home inspector finds one, you better plan on replacing the furnace. From a safety standpoint cracked heat exchangers emit dangerous gases into a home.

-Acquire a blank copy of the local real estate contract and review before you sign one. Most local real estate boards have a form contract that has blanks for contract price, terms and conditions. You will feel more confident if you review a real estate contract long before you are asked to sign one. Ask your real estate agent for a blank contract after your first meeting. If you have questions about the contract ask your attorney to review it with you.

-Before your open house ask your agent or visit some other open houses in your community to see how many people attend. It's hard to predict how many will show and what they'll eat or drink. The weather and time of day will surly impact how little or much you need to prepare.

-Don't gossip about the previous homeowners, you might not know if the new owners still talk with them. Or gossip about others in the neighborhood. Let new owners make their own decisions.

-Feel free to open cabinets and closets. Homeowners and realty agents expect open house guests to investigate built-in cabinets and closets, built-in being the key word. If your in doubt remember built-in yes, otherwise no. In doubt ask the host or hostess.

-Existing home cost versus new construction. Research by residential real estate industry sources concur that a newly constructed home can cost up to 20% more than a comparable existing home. The added cost reflects current land, building materials and labor costs versus the cost basis for a home even one year old. Study appreciation and market conditions to determine if you sell your home within two years or less if these factors will cover your sales costs. Buyers looking at your home might consider it over-priced relative to a home built as recently as 3-5 years ago based on square footage comparisons and original cost basis.

-Forget high-heels. Spiked heels on shoes can easily dent bamboo and other softer wood floors. Plus if you got into the yard to take a look at the roof you might end up aerating the lawn.

*Best L..A. Real Estate Blog, Podcast, "Easy Way to Review"-New York Times, Featured on HGTV.com

Mark Nash's fourth real estate book, "1001 Tips for Buying and Selling a Home" (2005), and working as a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on ABC-TV, CBS The Early Show, Bloomberg TV, CNN-TV, Chicago Sun Times & Tribune, Fidelity Investor’s Weekly, Dow Jones Market Watch, MSNBC.com, The New York Times, Realty Times, Universal Press Syndicate and USA Today.

Real Costs Of Selling A Home

Experts estimate that most people who use a Realtor will pay as much as 10% of your selling price in costs associated with selling. The cost of selling a home yourself can range from 4% to 8% of the selling price of your home. When you're estimating your expected gains, remember that the cost of selling a home can be deducted from that figure for tax purposes.

To give you an idea of what the costs of selling a home in the current market are, take a look at the information below. We've included estimated costs based on a $250,000 home sale, as well as some tips for lowering or eliminating them to lower your overall cost of selling your home.

Sales commission

If you list your home with a Realtor, expect to pay 4 to 6% of the sales price, or $8,000 to $12,000 in real estate commission.

Tip: Shop around. Real estate commissions aren't written in stone. A Realtor may be willing to accept less of a commission in a slow market, or you may be able to save money by contracting with a Realtor for specific services only rather than a contracted listing.

250,000
-12,000
238,000

Closing Costs

Taxes, both transfer taxes and property taxes, and legal fees associated with the closing and finalizing of your home sale will be 2% to 4% of your sales price, or $4,000 to $8,000.

Tip: Check the laws in your state. If you've prepaid your property taxes for the year, you may get a credit instead of a bill. There may also be other refunds on prepaid escrow costs for home insurance and other costs of selling a home.

238,000
- 8,000
230,000

Paying Off Your Mortgage

Whatever the remaining principal balance is on your current mortgage will have to be paid off upon the sale of your home. Just to keep things simple, let's say that you still owe $50,000 on your current mortgage. If there's a prepayment penalty, you'll need to deduct that from your eventual sales price as well.

Tip: Ask your lender to prepare a payoff statement for you to check your figures. If there is a fee charged for the service, you can deduct it as one of the costs of selling a home.

230,000


50,000
180,000

Repairs to Your Home

The cost varies widely depending on the age of your home and how well it's been maintained. At the very least, you should get a home inspection to identify any possible problems to avoid being surprised by them at closing. You should plan on paying about $300 for a home inspection.

180,000


300
179,700

Pre-Sale Facelift

Again, the cost varies with the work that's needed to get the house looking its best. Conservative estimate: $300 for new paint, screws and hardware, carpet for living room floor and landscaping service

179,700


400
179,300

Moving costs
The cost of moving from one home to another are included in the cost of selling a home. It may be as little as $1000 to as much as $12,000 for a cross country move. Let's be conservative again - $3,000

179,300


3,000
176,300

Other relocation costs

You may need to replace appliances, pay off school transfer or gym fees, or pay storage for your furniture. There are many unexpected costs of selling a home which may amount to nothing, or add up to a good chunk of change.

Even without adding in other relocation costs, you can see how the cost of selling a home can reduce your final cash gain. The good news is that most of those costs are deductible on your taxes.

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Top Tips for Selling your Home Fast

Selling your home on your own is actually easy contrary to what other people believe. You can save a lot of money and you have the freedom to adjust your home price according to your buyer’s financial capability. With a positive attitude and the right information, you will have a good chance of getting the right buyer for your home.

To speed up the sale of your home, there are some things you need to consider.
Cleaning and organizing your home should be on top of your list. Do some repainting on walls if needed, take away all clutter and create more space to attract potential buyers. Be sure to make your house smell good, too. Providing good lighting is vital especially during showings. It’s best that your buyers see the house very clearly when they come for a visit.

Set a fair and competitive price for your home. Overpricing is one of the major reasons why many homes stay on the market too long. To be able to set a fair price, check out the number of homes similar to your own that were recently sold in your area and the current market condition. Better yet, consult a home appraisal.

Market your home in as many ways as possible – by word of mouth, via the internet (email or through websites that offer free listing), local newspaper and brochures. Be sure to include a photo of your home showing the front yard and the interior. Provide important details including directions. You can also schedule an open house to attract more buyers.

Get a good lawyer. Home selling involves a lot of legal issues. In order to protect your interests in selling your home, it’s best to hire a real estate lawyer. An attorney with extensive experience can do several things for you like help you out in evaluating complicated offers, act as your escrow agent to temporarily keep the down payment, analyze complex mortgages, review sale contracts and supervise the closing process.

Accommodate home inspections. If you have a very interested buyer, he or she may request for repairs on your home before the closing. Normally, a general inspection requires major repairs to appliances as well as plumbing, septic, electrical and heating systems. Not a abiding by this may cause the buyer to cancel the offer.

Pre-qualify buyers. Being in control of the whole selling proces

Real Estate Purchase Agreement

A real estate purchase agreement can vary depending on the type of property being purchased and its location. It can either be made by a real estate lawyer or a reprinted form used by a real estate agent. In order to be legally binding, the document must be in writing and must contain important information about both parties involved. The contract usually states the full names of the buyers and the sellers, identifies the property (legal description) and its location as well as stipulates a purchase price and the terms of the sale if the transaction is not all cash. To be enforceable, both parties must affix their signatures on the contract.

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