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Home Sales 101: Creating the Right Photos for Your Online Listings
Home Sales 101: Creating the Right Photos for Your Online Listings
Today’s real estate market relies heavily on the use of technology, especially online listing sites. Your real estate agent may have your home listed on several different sites, each of which will feature a description of the home and the asking price. But we all know that a picture is worth 1,000 words and potential buyers will decide whether or not they even want to look at your home in person based on what they see in the images in your listing.
That means they need to be good. Really good.
Who is Taking the Pictures?
First, determine who is going to take the pictures. You might do it yourself, but unless you have some photography experience (at least a little), you may want to let the pros handle the job. Your real estate agent may have a higher-end camera and some training on how to take pictures for real estate listings; knowledge that will help her to highlight your home’s assets. If all else fails, invest the money in hiring a professional photographer. You’ll end up with dozens of photos and can choose that look best.
The Camera
If you are taking your own photos, please – pretty please – put away the cell phone camera and use a real digital camera. The minimum number of megapixels should be five – the more the better. See if you can buy or borrow a tripod, too. This will make it easier for you to get crisp, clear, focused images – especially when you start to photograph some of the more intricate details throughout your home.
Staging Your Home
Staging is almost more important for the photos than it is for showings. People who have the time to sit and look at listings online will tear apart homes that look cluttered or messy. Get rid of anything that would distract a potential buyer from the home itself. Remember, showcase the space – not the stuff you’ve put in it.
Outside Photos
Make sure you go all the way back to the curb and take a shot back into the property. The outside of your home is what will make the first impression, and it matters – both online and in person. Make sure you keep the angle of the photo even so that it does not look like your home is on an angle or hill. Use the roof line of the home against the top of the frame to ensure you’ve got a straight, even image. Make sure you take a focused image of your home’s entry way – the welcoming point in any home and the first place your buyers will really analyze when they arrive.
Indoor Photos
Use as much natural lighting as possible, taking pictures on a sunny day. Natural lighting will create an accurate depiction of the colors in your home and decreases your need for the use of flash. Take multiple pictures of every room, even the ones you don’t think are important – like the bathroom.
Angles, color, lighting, and even distractions in your image all make a difference. Talk to your real estate agent about the things you can do to get the best pictures possible, and use as many as allowable to give your potential buyers something to really consider.
Cedarcrest Realty, INC. Congratulations to Our 2015 First Quarter Top Achievers
How Much is Too Much When Determining Your Maximum Buying Price?
How Much is Too Much When Determining Your Maximum Buying Price?
A lot of thought and planning goes into determining the price range a person should look in when buying a home. A lot of people set a range with a minimum and maximum – the minimum being a base for expectations and the maximum capping him financially. Even still, having a maximum buying price does not mean you have to push it to the limit.
Assessing Your Income
The general rule of thumb is to follow the industry-wide standard for payment-to-income ratio. The amount you spend on your home each month is the total sum of the actual mortgage payment, property taxes, homeowners insurance, and any other applicable fees like mortgage insurance or homeowner’s association fees. That total should not equal more than 25 – 33% of your total household income.
Your income isn’t the only thing you need to take into consideration, too. You need to seriously assess your outstanding debts as well. Outstanding debt will make it more difficult for you to qualify for a mortgage, and that’s even more reason to lean more towards the 25% (or less) than the 33%. You’ll want to make sure you have enough money for your housing and your debts, no matter what emergency situations may arise. A good mortgage lender will apply a debt-to-income ratio and will not allow you to have a housing payment that is higher than your debt obligations.
Assessing Stability
The highest possible limit for a mortgage represents what you can afford in the best of times. Life isn’t perfect, though, and surprises do come along. Think about whether or not you’d be able to make your mortgage payments if you were in an accident or if you lost your job. What if your mortgage and bills had to be paid on one income instead of two (if you’re married and sharing debts with a spouse)?
Use a Mortgage Calculator
There are dozens of great mortgage calculators online. Take advantage of one – or even more than one – to assess your financial situation. Use this information before, during, and after the loan approval process.
At the end of the day, everyone wants to see you in the nicest home you can afford – realistically afford, that is. Take your time, have a real conversation with your real estate agent about your wants and needs, and remain realistic about your ability to pay for your dream home.
That’s Not Fair! How to Determine a Realistic Asking Price for Your Home
That’s Not Fair! How to Determine a Realistic Asking Price for Your Home
Determining the asking price for a home has to be one of the most difficult parts of the selling process. You’ve spent weeks, maybe months, preparing your home for sale – making repairs and upgrades – and you want to get the best price possible. The asking price of any home is influenced by a number of factors, though, and many are completely out of your control.
Do Your Homework
There are a lot of websites you can use to estimate what your home’s sale price may be. Zestimate (from Zillow) and dozens of others will assess the neighborhood, age of the home, size, and other factors to give you a figure to start with. A lot of these tools won’t take upgrades you have made to the home into account, so you may need to make some adjustments.
Make Necessary Adjustments
Don’t get your hopes up if you think the price you’ve come up with is really good compared to the homes that have sold recently in your area. You really want to be within 10% of the most recent sales nearby to be considered in the correct ballpark; and that’s still not necessarily going to be the best price for your home.
A few things you’re going to need to consider include supply and demand, or how many homes are available for sale in your area. The more there is to see, the more competitive your price will need to be. If interest rates are trending high, you may find a smaller pool of potential buyers, so you’ll need to appeal to them. The season even makes a difference. People love to move in the spring, so you may get a higher asking price; but in the winter? Forget it. You’ll either find a buyer who is desperate or wait until spring rolls around again unless you adjust your price.
Talk to Your Real Estate Agent
One of your agent’s primary jobs is to help you set a realistic price point for your home. The financial market, the housing market, and the mindset of the buyer are all things that need to be taken into consideration. Your real estate agent will do her best to help you to set a fair asking price that will move you quickly towards a final sale.
What’s the Difference between a Real Estate Agent and a Real Estate Broker?
What’s the Difference between a Real Estate Agent and a Real Estate Broker?
You’ve probably heard both terms before – real estate agent and real estate broker. Some people use them interchangeably, as if they mean the same thing. There is, however, more than meets the eye in the real estate world and you might be surprised to find that real estate agents and brokers aren’t the same.
Real Estate Professionals
There are actually several different terms that can be used to identify those working in real estate. The most common are real estate agent, REALTOR ®, real estate broker, real estate salesperson, and real estate associate broker.
A real estate agent is someone who has fulfilled the educational requirements set forth by his state in order to become a licensed to work in the business. The educational requirements vary from state to state but most require a minimum number of course hours as well as state-mandated examination. A real estate agent may also be referred to as a real estate salesperson. A real estate agent who has become a professional member of the National Association of REALTORS ® may also call himself a REALTOR ®. Anyone who gives real estate advice must have a real estate license.
A real estate broker always starts out as a real estate agent but then takes additional classes and exams to earn a broker’s license. Each state has additional educational requirements for brokers.
So what’s the difference?
A real estate agent is allowed to give real estate advice and act as a salesperson, but he can’t work alone. He has to be employed by a broker or brokerage, who is then responsible for the agent’s actions and ethical values in sales. Some real estate agents pay a flat rate to the broker while others end up paying a percentage of their commissions or sales to the broker.
A real estate broker can work on his own or may start his own brokerage firm and begin working with other real estate agents.
More Confusing Terms
You’ll probably hear a few more terms while you look for an agent or broker:
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A real estate associate broker is a broker who chooses to work as an agent for another broker.
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Both an agent and a broker can use the REALTOR ® symbol, as it merely represents membership in the aforementioned organization.
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A listing agent represents the seller while a buyer’s agent represents the buyer. Most agents can play both roles (not in the same transaction), but some agents prefer to choose one or the other as their career focus. These roles can be played by agents or brokers.
Confused? Don’t worry – a lot of people are. Make sure you talk to your real estate agent or broker about his role in your selling or buying process and question anything you’re not comfortable or clear about. It’s your right to understand the relationship and transparency is key to a successful sale (or purchase)!
Why You Shouldn’t Try a For-Sale-By-Owner Sale
Why You Shouldn’t Try a For-Sale-By-Owner Sale
On the one hand, selling your home “for sale by owner” can save you a ton of money when it comes to the percentage a real estate agent might take in commission. While you’d still have to pay the buyer’s agent a fee, you stand to walk away a few thousand dollars better off than if you had hired a professional. But is it really worth it?
You Have a Job
A real job. A job other than selling your own home. Selling homes is a full-time job and you may not really have the time in each day to dedicate to showing your home (during hours that work for buyers), marketing your home, or dealing with all of the legalities associated with making a final sale. Unless you are a real estate agent already, selling your own home may end up translating to hours and hours of unpaid work.
A Weak Internet Strategy
People used to be able to put a listing in the paper and a sign on the lawn and people would find and be interested in their homes. It’s not the same anymore. Even if you spend time listing your home on real estate listing services, you won’t have as much luck spreading the word about the house you have for sale. Why? Because real estate agents have a network of contacts – other industry professionals and clients looking for homes. They can email them, direct them to listings, and make more efficient use of every listing put up on the web.
Protecting Your Interests
Most of the people looking at your home will have an agent and that agent only has the buyer’s interests at heart. For-sale-by-owner (FSOB) sellers do have a bit of a negative reputation within the industry, too – as people who are difficult or who will not be realistic when it comes to making a sale. Because of this, some buyer’s agents won’t even attempt to show your home.
Your own agent, on the other hand, is interested in protecting you and selling your home. She’ll make sure you’ve staged properly, set a realistic price point, and don’t seem over-eager in negotiations.
You Probably Won’t Save Money
We started out by saying you might save money on your own, but is that really true? Even if you don’t have to pay commission to a real estate agent, will your home sell for the same amount as it would have if an agent were involved? Will you accept an offer that is too low or end up spending more on other fees? Studies show that FSBO sales typically work out better in markets with lower price points, but you may end up hurting yourself if you live in a more affluent area where competition is hotter.
Selling your own home seems like it makes sense, but there is a lot more to it than many might realize. Hiring a real estate agent may not only net a greater selling price, but will prevent you from legal liability if the process doesn’t go smoothly.
Staging 101: Taking Advantage of Spring
Staging 101: Taking Advantage of Spring
Spring has finally arrived and with it better months for home sales. Realistically speaking, those looking for homes in the winter are usually desperate to make a change for a specific reason – a move for a new job or a lease ending. But those who have been too busy with the holidays or unwilling to come out in the cold will soon resume their serious house hunts and you’ll definitely want to be ready.
Clean the House
Seriously. We shouldn’t have to say it but it’s a given. Scrub the house down, wash the windows, wipe down the walls, have the rugs cleaned, and consider having someone come out to power-wash the outside as well. Melting snow and salt can leave an unsightly layer of grime on your home and you’ll want it to look nice.
Cleaning does not mean shoving stuff under your bed or into a closet, either. People will want to look there – at least in the closets! Declutter and get rid of anything you don’t need. Pro tip: pack away and store your winter clothes so that those who do open your closets don’t see all of the bulky items taking up space.
Evaluate Your Interior Decorations
Warm, dark colors make a home feel cozy in the winter, but they make it feel drab during the warmer months. Swap out some of your darker decorations for lighter, brighter colors. You can do this with a simple throw rug or blanket, some brighter pillows, and some bright flowers. Make sure you’re keeping your windows open so the natural light can shine in, too.
Gardening and Landscaping
Make sure your lawn is kept nice by scheduling regular maintenance – whether that means doing it yourself or hiring professional help. Have your bushes trimmed and proceed with your regular spring planting schedule. Bright flowers, a manicured landscape, and even a decorative flag or welcome sign will give your home an added bit of curb-appeal. Potted plants work great on steps and in garden areas and will detract from the fact that your trees and other plants may not be in full bloom yet. Pro tip: avoid wreaths during the spring months as the design tends to remind people of the holidays.
Not sure where to start? Your real estate agent can and will walk through your home and help you determine what areas need attention. It’s not always easy to have someone else tell you what changes to make or what personal items to put away, but great staging is key to a successful year – no matter the season.
Staying on Top of Home Maintenance: A Spring Checklist
Staying on Top of Home Maintenance: A Spring Checklist
Home maintenance is important whether you plan to sell your home or not, but it becomes critical if you really do want to move. The winter months are notoriously harsh on homes and the spring months are a great time to work down a general maintenance checklist in order to ensure there is no surprise damage later on. So where should you start?
Roofing, Siding, Chimneys, and Gutters
Check them all for damage from ice, storms, and general wear and tear. Look at your roof from afar to see if you can identify any loose or damaged shingles. Check the siding to be sure it isn’t raised or chipped. Make sure your gutters are cleaned out and weren’t damaged by ice or snow. Have a professional come out to perform regular maintenance on your chimney, ensuring there is no masonry damage and that it is clean.
If you do plan on selling your home, you may want to invest in renting a power washer to make the house look a little cleaner and brighter.
Sidewalks and Driveways
The expansion and contraction caused by freezing and melting can really do a number on driveways and sidewalks. Survey your property for cracks that may need to be filled and be especially conscious of any raised areas that could become fall hazards. The property will need to be in great shape for a sale, but this type of repair will also help you to avoid being sued by someone who falls and gets hurt.
Survey the Foundation
Look around your home and make sure there are no low or sunken areas of ground, especially near your foundation. Any areas that look low can be filled in with dirt and compacted. This prevents danger areas from uneven surfaces and, when hear the foundation, prevents water from pooling towards your home instead of away from it. It’s also important for keeping bugs away, as water won’t have a place to stand after storms.
Fire up the A/C
Have a professional come out and service your HVAC unit. There is nothing worse than having a potential buyer walk into a home on a hot spring or summer day only to be greeted by more heat. We guarantee they won’t give your home a second thought once they walk out the door.
Regular home maintenance will make it easier for you to sell your home when you’re ready – even if that time isn’t right now. If you are ready, talk to your real estate agent about special home maintenance items or staging tasks you should be paying attention to. Every little bit counts.
What Type of Insurance DO I Need for an Investment Property
What Type of Insurance DO I Need for an Investment Property?
Congratulations on your decision to expand your portfolio by purchasing an investment property. A true investment property you have opted not to live in may be put up for rent or eventually flipped for a profitable sale. Until then, you’ll need to make sure you have the right type of property insurance.
Looking for a Dwelling Policy
The traditional homeowners insurance policy offers a number of different coverage options. They typically include property coverage for the main building, contents coverage for your personal belongings, coverage for detached structures like sheds or garages, loss of use (in case you have to stay in a hotel during a covered repair), and medical expenses and liability coverage.
As an investment property owner, you may not need all of those coverages – especially personal property. You’ll want to ask your insurance agent for a dwelling policy that covers the buildings and any other structures on the property so that you are covered against your standard risks – fire, theft, burglary, vandalism, and anything else not excluded from the policy. The dwelling policy will also include liability coverage because you are still, as the owner, responsible for personal injury an individual might incur on the property (such a slipping on ice or tripping over cracked sidewalk).
Personal property coverage is not necessary on an investment property that is rented to others. While your dwelling policy would cover the building itself, any tenant you lease to would be responsible for purchasing his own personal property policy.
Landlord Coverage
While a dwelling policy will give you some protection against liability, there are unique risks involved with being a landlord. It’s important to talk to your insurance agent about the availability of landlord insurance for rental properties in your area. This may be a special policy or it may come in the form of an amendment to the dwelling policy you already have.
This type of coverage will offer special protection against loss of rents in the event of a covered loss and some offer limited coverage for items you may keep on the premises. These may include washers, dryers, dishwashers, microwaves, and any other items you leave on the premises for your tenants to use; and it may also extend to items you leave on the premises to make repairs.
In terms of liability, your needs are slightly different. The liability coverage on a landlord policy may also defend you against claims of invasion of privacy, wrongful entry, or wrongful eviction.
The purchase of your first investment property is an exciting event. Make sure you have the insurance you need to make it a viable part of your portfolio for years to come.
Self-employed? You Can Still Get a Mortgage
Self-employed? You Can Still Get a Mortgage
Proving your income when you have a traditional corporate job is relatively simple. You can show years of paystubs to prove you have a stable track record with employment and a consistent weekly, bi-weekly, or monthly pay. Proving stability and income when self-employed is a little more difficult, but it’s not impossible.
Longevity is Key
A major contributing factor to self-employed individuals receiving denial letters is a lack of track record. While most self-employed people know that self-employed does not mean unemployed, but you really have to prove you have a stable income and that you have been self-employed long enough to maintain your income ratio moving forward. The number of tax deductions you take may also make your debt-to-income ratio look higher because your income is based on your net rather than your gross. You need to be prepared to show a high enough income level to prove that you can make a monthly mortgage payment.
Documentation is Critical
The bank will want just as much documentation from you, if not more, than they would ask someone with traditional employment. Documents you’ll need will definitely include bank statements and tax returns (for at least 2-3 years), as you’ll rely more heavily on these to prove your income. Your bank may also ask to see your profit and loss statements, broken down into quarters or some other manner. You may need to work with an accountant to have officially reviewed statements to provide.
Anything you can give your lender to show that your business has grown from year to year will be especially helpful.
Check Your Credit Score
Make sure you do some work to ensure your credit score is up to snuff. We all realize how tough starting a business can be and your credit score may suffer a bit in those formative years. But you need to get things back on track. Repay debts and check your credit score regularly. Do what needs to be done to bring your score back into a favorable range, if it isn’t there already. Try to approach the process without any consumer (credit card) debt.
Deposits Help
Having money on hand for a deposit, or for savings in general, shows you are in a good financial position. You’re going to want to have enough for your down payment, closing costs, and a significant enough amount leftover to show the lenders that you’ll be able to continue mortgage payments if your business hits a rough patch.
Self-employed does not mean unemployed and it certainly does not mean you can’t buy a house. Find a lender who understands the unique struggles of the world of self-employment and you’ll be well on your way to home ownership.
