Sellers Must Fix Problems that Turn Buyers Off

Listing a home with obvious, even if small, problems are one of the biggest mistakes sellers make. Buyers prefer problem-free houses and as a seller, your top priority must be to overcome any obstacles between you and the sale.

Fixing stuff that's broken and selling a home that appears to have been well maintained will often overcome any real or imagined problems a buyer will have. Conversely, not fixing problems sends a loud message that you don't care enough about your home. And, don't forget, the home inspector will not miss problems, even if the buyer didn't see them.

Fix anything that a home buyer will think should be working on the day of the sale, including:

1. Odors and Smells: Obviously, a big turn off and often poses health concerns. Stinky houses don't sell. Find the source of the stink and remove it.

2. Appliances: Everything should be clean and in working order.

3. Plumbing: If it leaks, drips or runs, fix it or replace it.

4. Windows/Doors: Repair or replace cracked panes or fogging windows. If windows are painted shut, fix them. Put WD 40 on any squeaks and creaks. Replace torn or missing screens.

5. Cabinets: Doors should open smoothly and quietly. Knobs or pulls should be tightened. Buyers will be opening every drawer, make sure they glide smoothly. Wipe everything done and replace old, dirty shelf paper and liners.

6. Paint: Is the biggest improvement you can make for the money. If paint is chipped or cracked, repaint. If rooms look dark or uninviting, repaint in white or off white.

7. Wallpaper: If it's peeling, use wallpaper glue and press it to the wall. Be sure to remove all bubbles. If it's old, dated or unappealing, remove it and paint the walls white or off white.

8. Carpet: If the carpet is in good condition, clean it. If it is pulled up in places, tack it back down. If it is old, dated, or worse, it stinks, replace it with a nice neutral color. If replacing the carpet, also replace the padding. Use a thick padding to make the carpet feel more luxurious. If pet smells or odors are on the tack strips, replace those at the same time.

9. Lighting: Replace all burned-out light bulbs with the brightest wattage the fixture allows. If your fixtures are dated or don't work properly, replace them.

10. Exterior: Clean and touch up the front entry and sidewalk. Add a splash of color with some inexpensive plants. Remove or trim over grown tree's and shrubs, especially those that block the front of the house or sidewalk. Weed landscape beds, mow and edge the lawn. Repair missing or damaged fencing. Replace missing shingles. Clean out gutters and downspouts. If puddles or a wet basement is a problem, correct the drainage.

As you walk around your home, remember that buyers check every nook and cranny. How well things work and look says a lot about how you've taken care of the property. Make a good impression and it will go a long way toward getting your home sold quickly ---and for more money.

Lease - Purchase. Good Deal or Bad?

With the slowing housing market, some sellers are leasing their homes with the option to purchase the home at a future date. So we ask, are Lease Options a good arrangement for sellers and buyers? It seems the answer is... it depends.

In a Lease Purchase Option, the seller leases their home to a tenant and gives the tenant the right to purchase the home at an agreed price, as long as the purchase is completed before the option expiration date. Typically, the tenant/future buyer will pay the seller an option to purchase fee, ranging from $1000-$10,000, when the contract is signed. The seller also credits a portion of the monthly rent, usually $100-$200/month, toward the future purchase.

The Sellers Side: The monthly rent pays down the mortgage. The upfront option fee is the sellers to keep. The tenant usually takes better care of a property they intend to buy versus one they are just renting. The monthly rental amount is higher than what the present market rental would be. The future selling price and the date the sale must be completed by is fixed at the time the contract is drawn. If house values decrease over the option period, the seller wins, if the purchase is finalized. If house prices increase during the option period, the buyer wins, if they buy. The seller can use the property as a rental, for tax purposes.

The Buyers Side: In a housing market that is appreciating, the buyer can lock in today's price for the property without actually buying it today. Buyers build equity because a portion of the monthly rent is credited against the purchase price. If the buyer does not purchase by the strike date, the seller keeps the rental credit and option fee. The buyer is able to live in the home before they buy it. The seller is responsible for repairs for as long as they own the home. The buyer has a period of time to put their finances in order so they can qualify for a loan. If home prices increase during the option period, the buyer has built in equity and may have an easier time obtaining financing.

Whether a lease purchase is a good deal depends on the circumstances and the future of the housing market. The reality for buyers and sellers is that 95% of the time, the buyer does not exercise their option to purchase. Usually, it's because they still can't qualify for a loan by the strike date. Unless the buyer is confident that their financial situation will improve in the next year or two, the option fee and excess rent are simply wasted money. Secondly, keep in mind that if home prices drop during the option period, the home may not appraise for the sales price, making borrowing more expensive, if not impossible.

Buyers, before entering into a lease option agreement, be realistic about the reason you can't buy now, and why that won't matter in the future. Don't option to buy a house you don't like. Negotiate for the longest option time period the seller will agree to. Have a home inspection before signing an option contract. Keep in mind that some sellers are scammers. They are betting on the fact that you will not qualify for a loan by the expiration and that they will keep your money and their property.

Sellers, be aware that most option buyers lack credit worthiness or they would buy instead of rent. In 95% of Lease Option contracts, the buyer will not complete the purchase. If home prices are declining in your area, you may be forced to sell for a lower price than you could sell for now. In addition, you may get the property returned to you in poor condition. Negotiate for the shortest option term the buyer will accept to lessen your risk. Keep an eye on your property and remember it's your house until the buyer closes.

What you Must Know about your New Home Builder

Are you in the market for a brand new home? With demand high and supply low, shoddy workmanship is a recurring nightmare for many future home owners. Do yourself a favor and check out "Home Owners for Better Building" at www.hobb.org before you sign a contract to purchase.

With home sales slowing, home builders are offering very lucritive incentives to get you to buy. Before you accept that free "gift", ask yourself, what do you need to know before you buy? What problems have other home buyers had with the builder? What is your recourse if you have a problem with your new home? What contract terms should you avoid?

The Home Owners for Better Building website is a great information resource for anyone in the market for new construction. Topics on www.hobb.org include contract clauses to add or avoid; Lemon Laws about new home construction per state; common new home defects listed by topic; lawsuits and legal action against home builders in your area; a listing of all major home builders with compliants; links to submit compliants to a variety of sources and authorities; negotiation advice; warranty issues and much more.

Check out this website before signing legally binding documents with a home builder. Even if they give you a free appliance package, swimming pool or cash back if you buy today, please don't without checking the facts and their reputation!!

Photo's Sell Real Estate - The More the Better

How would you describe, in words, the features of the living room pictured on the left? No words I can think of would do the unique architecture justice. Luckily, a picture paints a thousand words and a Photo tells a better story than we could write.

If you are like every home buyer that I've worked with, you love to look at photo's of homes you're interested in. For home sellers, clearly, it is easier to sell a home to people who have seen at least the key areas of the home.

If you doubt the power pictures have in marketing your home, ask yourself, why should an agent or home buyer drive to a property to see things they should have been able to see online? As the number of homes on the market increases, the market shifts to favor buyers, selling your home is often a matter of accessibility, be it off or online.

Home ads with pictures are viewed three times as often as those without. Homes with multiple photographs sell more quickly than homes with only one or two. The more photo's the better is the mantra in marketing property today. The good news is digital cameras mean that using photographs in your marketing has never been easier.

Do yourself and prospective homebuyers a huge favor, take a lot of photo's and post them on your webpage. For today's home buyers, nothing beats the simple snap shot. Grab your camera and let the picture tell the story. Serious inquiries will follow.