10 things that may Negatively affect your Home's Value

This is a great read for both buyers AND sellers. Sellers - this helps you price correctly. Buyers - consider these things when choosing your next home!
See Also 11-Things-That-Negatively-Affect-Your-Home-s-value

1. Bad location. This can come down to freeway noise, power lines, you name it. See: Location Issues That Make it Hard to Sell

2. No garage or small garage. Unless you're living in a condo, retirement community or historical or in-town neighborhood, most buyers will look for at least a two-car garage.

3. Garbled floor plan. Small rooms and bathrooms, an inconvenient floor plan or a layout that requires you to access bedrooms or bathrooms through other rooms will detract value from your home.

4. Outmoded appliances or systems. Who wants an electrical system or plumbing system incapable of handling modern conveniences? Would you buy a home if the appliances were worn or broken?
Phipps remembers walking into one house with clients who casually opened the oven door -- and it fell off.

5. Stale or overly personal decor. Sure, [insert color] is the hot wall color right now, but for how long?  What is more important? Letting the buyer see your home or photos of your kids?

 6. A bad roof. Roofs are expensive to replace and a good roof is considered standard equipment in a house. If your roof has problems, expect to take a hit in the price.

 7. A pool. Forget what you might have heard. An in-ground pool in most parts of the country doesn't automatically raise the value of your home.
Having a swimming pool will automatically limit your market when it comes time to sell, he says. It's constant upkeep, they get cracks, the equipment goes down and it's expensive to replace, and the liability is high.
Consider your home value and location. In a million-dollar house, not having a pool is a detraction but will not necessarily increase your value.

8. Poor maintenance. If you've got an old roof and deteriorating exterior paint/siding/trim, I don't care if the home is immaculate inside, you won't even get the buyer out of the car. If the curb appeal is in disrepair they buyer starts out on a negative note thinking about what else may be poorly maintained.

9. Environmental hazards. Besides being a danger to human health, lead, mold or asbestos can kill home value.

10. A laundry list of needed improvements. A list of must-dos just to conduct everyday life will scare off a lot of potential home buyers. Especially with first-time buyers since most of them are already scraping cash together just to close.

Look for ways to increase your value? Check out these ideas:

Most Important Home Selling Tips

Tips for Building New or Remodeling

What the heck is so great about your house?

Are Online Home Value Estimates Accurate?

How to Correctly Price Your Home 

Selling My Parents House

Is your parents' house an asset or a liability?

Many times as our parents are aging we think about the logistics of who will take care of them, is their will/estate planning in line, etc and of course we go through a series of emotions about the potential of losing them.

Something that is often over looked or pushed aside is their home. We often forget that maintenance gets harder as people age, physically, financially and even mentally (did I change the furnace filter?). Not only do homes that aren't maintained deteriorate faster, the plummet in resale value.

What can you do about it? Make a list and prioritize. Here is a list from Bob Vila to get you started or you may visit my (longer) list by clicking HERE.

So what do you do if your parents have already moved out and you are getting ready to sell their house?
Go through he whole maintenance checklist now or hire an handyman to do so.  You will want to find any problems before a potential buyer does.  What may only cost you $100 to fix will look like $1000 to a potential buyer and hurt you when it comes to negotiating the best price for the house.

Once you have had the home maintenance reviewed and completed, it's time for cosmetics.

The cheapest thing to do is CLEAN.  Cleaning often includes de-cluttering.  Tis best to have have only a few key pieces of furniture in a house.  Buyers often have a hard time seeing past all the "stuff" in a house.  You may want to consult a professional if this is overwhelming to you.

Once you have everything clean, you can evaluate for updates that will provide the best return.

Removing wallpaper and painting a neutral color can make a huge difference in a home that is otherwise out of date. You may need to hire this one out but it's often worth the return on your investment.

Other items you can do to quickly update a home are:

• New cabinet hardware
• New light fixtures
• New appliances
• New Carpet and Linoleum (especially if it is very worn or a color that is 20 years out of date)

Imagine this room minus the curtains and with fresh paint and carpet!

Paint and carpet are two things that you will see a lot of banks doing with foreclosures.  Why would they make this investment on a property they most likely have already lost money on?  Because it has proven to be a good return on their investment in both the price they get for the house and the amount of time it takes to sell.  Often they will also add a low cost set of new kitchen appliances if they were missing or in poor condition.



Are you ready to sell or need referrals to help get these things done?
Let me know!

What the heck is so great about your house?

Have you been thinking about selling your house?

by: +Sarah Marrinan - Keller Williams Premier Realty 

As I'm sure you already know a lot of work we're going to preparing to sell. Just like anything else you want to get top dollar for you need to make it look it's best but aside from all the cleaning decluttering and staging that you're going to do we're going to need to get as much information about your house as possible.
So let's answer the first question that will be on most buyers minds when they come to look at your house.

What's so great about this house and why should I pay this price?

Start thinking about the things that made you fall in love with the house and the things that you've done to improve it and write them out.

It's no secret that everybody wants to find a good value; to be sure that what they're getting is worth the money they're spending; so it only makes sense that you want to provide a list of features and benefits defending top dollar value for your home.

Need help getting going with your list? Please give me a call!

Are you celebrating too soon?

Sellers: Are you celebrating too soon?

by: +Sarah Marrinan - Keller Williams Premier Realty 

The stories of multiple offers and above-asking sales prices happen frequently in today’s market, but some sellers assume their home will be in that number way before they even sign the listing agreement. Sellers who “celebrate too soon,” so to speak, can put themselves at a disadvantage in a number of ways, like:

• Cheaping out on staging, 
• Failing to do all the items on their property prep list,
• Overpricing their homes, assuming the demand-supply imbalance will automatically swing in their favor
• Getting sloppy in how they maintain their homes on a daily basis, while they are still on the market, and
• Making large purchases or spending their house proceeds “in advance,” while the buyer’s loan and inspections are still pending.

First, the homes that have multiple offers and sell quickly were a GOOD VALUE to the buyer. Meaning, the home was appealing in size, condition, location and amenities compared to other homes of similar list price.

Second, even on today’s "hot market", deals sometimes fall out of escrow because a buyer has a change in their life, their job or their family, or because they simply turn out not to qualify for the loan they were pre-approved to receive. Smart sellers stay vigilant and keep their houses meticulous and their finances in good shape throughout the entire time frame from property preparation through close of escrow. It’s also essential to keep your mortgage broker close to help align the timing of the purchase of your next home in a way that makes sense with your current home’s listing and sale.

Call me today to discuss how you can get top dollar for your home in the current market!

Links you may enjoy:
Housing Market Updates  |  Getting the Best Price for your Home  |  Getting pre-approved  |  Homes for Sale  |  What is Your Home Worth  |  Why Call Sarah First

Come find me!

Do Seller's Have Closing Costs?

Do Seller's Have Costs Associated with Selling?

by +Sarah Marrinan - Keller Williams Premier Realty 

YES.

OK, so what are they? Here is a list of home sale related expenses that sellers may incur but don't let this list intimidate you.  Not all items apply to all sellers. You really need to consult an agent to decide what expenses are applicable to you.

Potential Seller Expenses at Closing

Pay-off Present Mortgage

Interest Adjustment

Pay-off 2nd Mortgage

Pay-off Home Equity Line

Mortgage Courier Fee

Seller Paid Buyer Closing Costs

VA Funding Fee

VA Closing Fee

FHA Service Fee

1 Month Association Dues (if HOA)

Association Letter Prep. Fee (if HOA)

Special Assessment Search

Special Assessment Levied or Approved

Future Pending Special Assessments

Brokerage Fee

MLS Buyer Broker Portion

Partners Title Closing Service Fee

Broker Retainer Fee

State Deed Tax

Other Title Charges

Estimated Recording and Transfer Fees

Balance of Real Estate Taxes Due

Homeowner's Warranty

Well Disclosure Filling Fee

MN Conservation Fee

Septic Compliance

Water Test

Some services that may or may not be included in your brokerage fee: Home inspection, Home Repairs/Handyman, Staging, Cleaning, Landscaping, Professional Photos, and Movers.

And we can't forget, some people will have capital gains tax... http://www.irs.gov/taxtopics/tc701.html

Need a list of expenses specific to you?  Call me for a free consultation. (Hint, my contact info is in the side column of this blog.)

See Also:

How To Save Money For Buying a Home | Tips for Selling Your Twin Cities Home | Four Horrible Real Estate Mistakes To Avoid | Housing Market Updates

How to sell your home in under 28 days!

How to sell your home in under 28 days!

by +Sarah Marrinan - Keller Williams Premier Realty 

Dozens of home listings in the twin cities expire every week but you could sell your home in under 28 days if you consider these key factors.

1. Price - If you're asking $250,000 for your home, then it had better be equal to or better than the other homes in the area being offered for $250,000. If not, it won't sell. The longer the house sits on the market, especially in a hot market, the less money you are likely to get for you home.  The best offers are the offers you receive in the first few weeks on the market.

When comparing a home to others, you need to be comparing the apples to apples.
Three primary things determine the value of a home:

• Location - The area, the street and the lot are all factors in location.
• Size/Style/Age - Square footage, number of bedrooms and number of bathrooms. You also should only compare town houses to other town houses and two story homes to other two story homes.
• Amenities/Upgrades - Decks/patios, granite counter tops, etc.

2. Condition - Rundown homes and homes that aren't updated don't sell unless they are priced substantially lower than the competition. Buyers see work and dollar signs when they look at these homes.  Even if it would only cost $10,000 to fix it up, they are likely to expect more than that off the price.

3. Marketing - Your home has to be listed on the local MLS with accurate listing information and professional copy. You have to have signage. Virtual tours, paid enhanced listings on the major real estate websites, individual property websites, and personalized domain names can help sell a home. Active reverse prospecting (an agent contacting their database of buyers and other agents) is often critical to stand out in a crowd. Other marketing could include post cards, classified ads, open houses, broker opens and the list goes on. Without proper marketing, your home won't get seen.

The best way to ensure that your home gets visited by many potential buyers is to price it right!
For a fee, a professional appraiser can provide you with a an accurate estimate of market value called an appraisal.
Real Estate Professionals can prepare a CMA, or Comparative Market Analysis which compares your home to recent sales that are similar in neighborhood and in size to determine a price that will cause your home to sell. Realtors use much of the same data to determine value as an appraiser does but they will also include current homes for sale.  After all, you must know what your are competing against!

If you call me today, we'll provide you with your CMA free of charge and free of obligation. 












HOME SELLING TIPS  |  HOME BUYING TIPS  |  HOME FINANCES



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Three Must-Dos for Selling a House

Three Key Tips for Selling Your Home

Knowing the value of your house and exercising patience and restraint are key. A good real estate agent can help you determine the market value of your home but you may want to go a step further and get your home appraised as well; it’s worth the $250 to $500 price tag. In a good market, the sale price may be above the appraisal with the right buyer. In a weaker market, the sale price may be around or below the appraisal figure. Either way, you can use it to defend your equity.

Remember, patience is key. Yes, it's true there is concern that homes can go “stale” after being on the market for too long, meaning they are no longer attracting interest from buyers. But a stale sale usually results from a seller overvaluing his or her home. The opposite can also occur: in a rush to sell a home, or to sell in time so as to move into a new house, a home can be undervalued.  This is another reason the appraisal and your real estate agent are important.

A home inspection is also important in avoiding complications during your sale. The buyer will get an inspection, but discovering problems during a pre-sale home inspection allows you to have more control over how to handle them. If your home inspection does uncover problems with your home, it’s essential that you familiarize yourself with your state’s disclosure laws to avoid future litigation. Generally, they require you to disclose the presence of any hazardous materials in your home or significant flaws in construction. If you’re unsure of what you have to disclose, consult a real estate agent, attorney or your local housing authority.

Finally, try to put your home on the market before buying a new one unless you are qualified and can afford paying two mortgages or your first home is own free and clear. If you do end up finding a house that you can’t wait to buy before selling your own, you can ask your lender for a bridge loan. A bridge loan is a special type of loan that, if you have enough equity in your current home, allows you to pay the down payment on a new home. You may also be able to get a home equity loan in order to help with the dual mortgage payments. Please consult a lender (or attorney) for further information.

Connect with me and get more great content!

See more topics in this blog:
http://livingtopics.blogspot.com/2011/12/topics-in-this-blog.html

The Home Selling Process

A guide to the home selling process.

By +Sarah Marrinan

1) Choose a Listing Agent

• A listing agent will represent you and have a fiduciary responsibility to look out for your best interests.
• Interview agents and review their experience and marketing plan.
• Negotiate and sign your listing agreement, including term.

2) Get Home Ready for Sale

• Prepare your home for sale by cleaning, decluttering and improving curb appeal.
• Hire a professional stager to stage your home, or ask your real estate agent for help in staging.
• Make repairs before selling. Get a home inspection if you are not sure what the most important repairs will be.
• Hire a handyman for repairs you can't make on your own.
• Protect your privacy while your home is on the market.  Keep all your personal documents locked away. Remove personal photos. Lock up your valuables.
• If you're selling a home where pets live, make alternate plans for your pets.

3) Figure Out How Much Your Home is Worth

• A seller's biggest mistake is to overprice.
• Price your home in line with sold homes identified in a comparative market analysis report.
• Consider your market competition. 
• Consider whether your market is hot, cold or neutral, and price according to the market temperature.

4) Obtain Seller-Required Inspections

• If your contract calls for a Truth-in-Housing inspection, your agent will help arrange it. 

5) Seller Disclosures

• All homes in the US are subject to lead-based paint and Radon disclosures.
• If you are aware of material facts, disclose them. Hiding material defects could result in a lawsuit down the road.
• If you are in an association you will be required to provide copies of the association documents to the buyer.

6) Market Your Home

• You or your agent should identify the selling points and choose advertising words to sell.
• Approve your agent's marketing campaign and advertise your house for sale yourself amongst family and friends.
• Follow the top 10 home marketing tips for selling your home.
• Hire a virtual tour company to take quality photographs and put a 360-degree virtual tour online.
• Tweak marketing to increase traffic and showings while the home is on the market.
• Your agent should saturate the internet with photographs and description of your home.

7) Receive Purchase Offers and Negotiate

• Make certain that buyers use the right form for writing a purchase offer.
• Even if you receive a lowball offer, negotiate by issuing a counter offer. Don't ignore offers.
• Ask for first right of refusal if the buyer's offer is contingent on selling a home.
• Consider making a counter offer contingent on buying a home, if market conditions warrant.
• Don't be afraid to make a full-price counter offer based on your agents suggestion, if you are priced competitively.
• If you are priced right, you may receive multiple offers depending on the level of competition and local market activity.

8) Show Your Home

• Most agents use a lockbox.
• Your home may show better if you are selling in spring-fall than selling in winter.
• Selling during the holidays will likely result in a lower sales price, regardless of what agents tell you.
• Follow the top 10 home showing tips. You've got only one chance -- and sometimes only 3 seconds -- to make a good first impression.
• Prepare for an open house and use the approach sparingly.
• Ask for buyer feedback so you can adjust your price, condition or marketing campaigns accordingly.

9) Cooperate with Home Inspection

• Get ready for the home inspector.
• Ask your agent to provide you with a home inspection checklist so you will know which items an inspector will want to see.
• Expect that the inspector will want access for an attic inspection and will look for a wet basement; prepare those areas for inspection.

10) Negotiate Request for Repair

• Ordinarily, sellers do not need to accept a buyer's request for repair; however, buyers can generally then cancel.
• You are entitled to a copy of the home inspection report, if the buyers request repairs.
• If you do not choose to make repairs, a buyer might instead accept a closing cost credit.

11) Open Escrow / Order Title

• Your agent or transaction coordinator will open escrow and order a title policy.
• Write down the contact information for the closing agent.
• Select a date to close based on when the buyer's loan will fund.
• Ask for a receipt for the buyer's earnest money deposit.

12) Appraiser Appointment

• Clean the house the day before the appraiser arrives.
• If you receive a low appraisal, ask your agent about alternatives.
• You are not entitled to receive a copy of the appraisal because you did not pay for it.
• If the buyer decides to cancel the contract based on an appraisal, ask your agent or lawyer about your rights.
• This is separate from the home inspection but looks at many of the same items to determine a condition level

13) Ask Buyer to Release Contingencies

• If you do not demand a release, buyers are not obligated to provide it.

14) Move Out

• Once all contingencies have been removed and all parties have receive a final closing notice move out.
• Unless otherwise agreed, the house should be completely empty before final walk-through

15) Final Walk-thru

• The buyer is entitled to a final walk-through just before closing to make sure the home is in the same condition and when they agreed to purchase it and all negotiated repairs/updates have been done.

16) Closing

• Bring a valid picture ID.
• Bring keys and garage door openers.
• Be on time.

17) Post Closing

• File for homestead if the property will be your primary residence
• Your property deed, reconveyance and deed of trust will record in the public records.
• Title will notify you when it records.
• Depending on buyer's possession rights specified in the contract, you may be required to move on the day it closes.

Townhouses, Twin Homes and Condos... What's the Difference?

Confused about the difference between townhouse and twin homes? Wondering about condos?  

by +Sarah Marrinan - Keller Williams Premier Realty 

Let's look at the official definitions from the NorthstarMLS.

Townhouses

Quad/4 Corners 
Usually split entry design. Each unit in one corner.
Side x Side 
Commonly has two to six units connected with common walls side by side. Also called rowhouse.
Detached 
Single family stand alone unit with a townhouse-type homeowner association (building exterior maintenance, snow removal, sanitation, etc.).

Twin Home 

Zero lot line ownership, double side by side. May have a homeowner association. Common wall agreement necessary as part of purchase agreement.

Condos and Coops

High Rise (4+ Levels)
Four or more levels. Has common entrance and hallways. Includes converted apartment buildings.
Low Rise (3- Levels)
Three or fewer levels. Common entrance and hallways. Includes converted apartment buildings.
Manor/Village
A manor has one entry hall for four units, two units on first floor and two units on second floor. The village is similar to the manor style plus added units on each end with private entrances. Other village designs have two or three stories with stairways and shared hallways, or two stories with outside entrances for each unit and no shared hallways.
Two Unit 
May be side x side or up and down. Often a duplex converted to a condominium or coop.
Converted Mansion
Converted single-family home with three or more units.

Are you (or someone you know) interested in purchasing one of these style homes? Call me!

Learn more about a Home Layout that fits you!

5 Steps to getting your house ready to sell

The costs of expensive upgrades are rarely recouped at the time of sale and studies show that smaller, simpler actions can yield a bigger return on your investment of time and money.

Here are five inexpensive, yet highly effective, ways to prepare your home for sale.

1) Create curb appeal
The outside of your home is the first thing buyers see. Trim hedges, maintain the lawn, power wash the siding and deck (and clean stains from the shingles if possible) and try to inject some color with potted flowers and plants (you can take them with you!). Make a great first impression on buyers!

2) Just store it (or sell it or throw it...)
Less is more when it comes to showing your home so put your knick-knacks, clear the paperwork off the counters, remove stacks of books and clear your fridge-covering artwork. Be sure to avoid stashing personal items in your closets because empty, clutter free closets are more appealing to buyers.


3) Lighten and brighten
Extra sunlight lends an airy feeling to your home, and interior lights provide warm glow. Wash your windows, keep curtains and blinds open, replace burnt-out bulbs, and add outdoor lighting to your landscaping, if possible. Also, keep your lights on in the evenings in the event that potential buyers drive by after-hours. With the lights on, your home will look inviting instead of dark and gloomy.  You always leave a light on for guests, right?


4) Paint an appealing atmosphere
A new coat of paint will freshen up any "lived-in" room but stick to neutrals such as light grays and tans. Also, consider repainting rooms that are currently bright, fun colors or busy designs - this can divert a buyer’s attention away from the home and toward money-costing “projects” that would come with buying the home.  I am sure you know, the wall paper must go.  A buyer sees pain and expense when they see wall paper - even if it is just a border.

5) Clean floors
New carpet or flooring can be expensive.  But you should spot clean stains and have carpets cleaned to freshen up the appearance (and smell). Using a wood floor or laminate floor cleaner can restore life to tired floors.  Be careful to use the right product for your floor so it doesn't become a slipping hazard!

With the help of your REALTOR® and a little hard work, these tips should help you increase your home’s appeal to more buyers without breaking the bank and even help you sell your home more quickly if you are priced right.

cleaning, creating curb appeal, curb appeal, spring cleaning, spruce up your home, staging, tips for selling your house

Minneapolis Condos and Lofts; The Last 10 Years

Over the last 10 years, Minneapolis has been up and down in the boom of new highrises.  For the last few years it's been down but with the improving economy and housing market, I'd guess we may start getting a few more options again!  Starting with the recent announcement of the pre-sale of Stonebridge Lofts (Formerly planned as Park Vista)!

Let's take a stroll down memory lane and look back over the last 10 years of new urban living spaces that have developed in Downtown Minneapolis.

2002
 700 S 2nd Street (Washburn - 1 exclusive)
 750 S 2nd Street (Humboldt)
 607 Washington Avenue S (New York Style Lofts with exposed, sandblasted timbers and Chicago brick)
 601 Marquette Avenue

2003
 750 S 2nd Street (Humboldt)
 607 Washington Avenue S (New York Style Lofts with exposed, sandblasted timbers and Chicago brick)
 601 Marquette Avenue

2004
 710 N 4th Street
 214 Portland Avenue S
 525 S 9th Street
 541 S 2nd Street
 216 Portland Avenue S
 543 S 2nd Street
 545 S 2nd Street (Metropolitan)
 100 3rd Avenue S (Carlyle)
 210 Portland Avenue
 200 Park Avenue S (Park Avenue Lofts - West)
 250 Park Avenue
 750 S 2nd Street

2005
 250 Park Avenue (American Trio Lofts)
 200 Park Avenue S (Park Avenue Lofts - West)
 401 N 2nd Street
 607 Washington Avenue S
 345 6th Avenue N

2006
 215 10th Avenue S (Bridgewater)
 100 3rd Avenue S (Carlyle)
 150 Portland Avenue S (Whitney)


Building the Carlyle, August 2006

2007
 201 S 11th Street (The Ivy)
 215 10th Avenue S (Bridgewater)
 100 3rd Avenue S (Carlyle)
 150 Portland Avenue S (Whitney)
 901 S 2nd Street S (Zenith)

2008
 201 S 11th Street (The Ivy)
 901 S 2nd Street S (Zenith)

2009
 201 S 11th Street
 215 10th Avenue S (Bridgewater)

2010
 215 10th Avenue S

2011
 215 10th Avenue S

2012
 215 10th Avenue S

Coming in 2013
 1120 2nd Street S (Stonebridge)


Want to buy or sell a Minneapolis condo or loft?  Call me!

 

Luxury Home Sales Increase!

Are you looking to sell a luxury home in MN?  

The time is NOW!  Call Today!