“In an ideal real estate market, that would add value, but in today’s market, expensive pre-sale renovations, for the most part, aren’t worth it. The numbers bear this out: In general, a home remodel will cost quite a bit more than you’ll get back when you sell; remodels done in 2010 will only recoup 60% of their price when the house is sold, according to Remodeling magazine’s 2010 Remodeling Cost vs. Value survey, done in partnership with the National Association of REALTORS® (NAR).” – RISMedia

Kitchens and bathrooms are still what attract buyers. So yes, that is where you would want to start. Here are some tips on what to do and not do if you are getting your home ready to sell.

In the Kitchen

• Costly professional-grade cook’s appliances should be avoided. If buyer might enjoy the professional grade he might actually prefer a rival brand or maybe the buyer is not a chef.
• Have your appliances serviced so that they are in excellent working order. If your appliances are seriously out dated, you may want to consider replacing them. Buyers do love stainless appliances – a great selling point for sure. Many times you can find new appliances on amazing clearances because it is old stock. One time I found an oven at Sears for 90% off.
• Consider skipping replacing your kitchen cabinets even if slightly outdated. This can be a “taste-specific” issue and very subjective. If you chose light cabinets and they buyer prefers dark wood, then you might loose them over and improvement.
• Think about refacing the cabinets if they are extremely outdated. You could have a company come in for under $2000 and this is a great investment in comparison to at price new kitchen.
• Granite and marble should be avoided as a pre-sale upgrade. It is too costly. With so many different options, it will be tricky to find something that will please a large number of buyers.
• Hiring a professional cleaning company is a wonderful idea. Have you ever had your car detailed. Well detail your kitchen and even the rest house. It will not go unnoticed.
• Do touch up your the paint on the trim and the walls. Hopefully you still have some left over paint or that swatch to get more.

In the Bath

• Don’t invest in big ticket “taste specific” items like the kitchen. Skip expensive tub and shower upgrades as they are a matter of taste.
• Go a ahead and replace dated fixtures in the bath, sink and even lighting. Oh yes, and please get rid of that brown, green or pink toilet. Buyers don’t like to be forced to decorate around the color of the toilet. Another idea is replace your small shower head with a rainwater style to give the shower a spa feel.
• Do try to brighten up the vanity. It is affordable to add a large mirror and lights.

Photo Copyright 2006-2011 – Amy S Myers

The ultimate goal is to have a tranquil – place to unwind and escape from stress. But if you have a cluttered home that may be difficult. Take a look at some easy tips for your home to get started on cutting the clutter:

1) Be realistic by setting goals. If you try to clean up your house in a hour or two that may only cause frustration. Start with one room at a time.

2) Come to terms with possessions that may have an emotional attachment ( a weakness for me ). It could be tough on letting go of some of those family items that have been passed down but other things can be thrown away, donated or sold.

3) Remove the clutter that is out in the open. Try to keep photo displays to a minimum, as well as artwork and knickknacks. If you have heavy curtains, try getting something lighter. Less clutter will make your rooms feel more spacious and open.

4) Alphabetize your DVDs, CDs and video games. You will thank yourself next time you go looking.

5) Store your seasonal clothing elsewhere when not in season.  A good rule of thumb is if you haven’t worn it in 6 months donate it or sell it.

6) Control your mail and newspapers. Throw them away as soon as possible. Keep important items in a place that won’t be bothered. I find that I have to grab the bills from my mail immediately, because on a previous occasion, they have gotten to the middle of a pile that got moved to a closet and was never seen again until the late bill came.

Start with these items and you will be on your way to clutter free living. 

Photo Copyright – Amy S Myers 2007-2011

1. Don’t use bright or dark colors for the color scheme of a room, used white, pastels and neutrals for that larger feel.

2. Use s single color and select different shades and textures to fill the room.

3. Lighting is key in make a space open up.  Try using spot lighting or even a torchiere lamp to bounce some light off the ceiling.  Skylights and solar tubes can be excellent for adding natural light to a room.

4.  Keep a limit on the accessories in the room.  This will make the room feel less cluttered.

5.  Make sure colors on the ceilings and floor are light.  Use light colored wood and carpet for that open feel.

6.  Add wall mirrors to increase the largeness of the room.  This reflects images, light and color.  Double the size of a room by adding mirror tiles on a full wall.

7. Consider using a love seat instead of a full size sofa in a smaller area.  Place furniture closer to the wall when not in use.

8.  A single painting works better than a group buy giving a bigger feeling.

9.  Using glass in any kind of table will give the feeling of more openness.

1)  Compare other homes in the neighborhood by gathering data on recent homes sold generally in the last 90 to 180 days.

2)  Consider Short sales and Foreclosures when pricing.  Sometimes these are sold below market value but can bring comparable prices down.

3)  Negotiate with Decisiveness.  Buyers are not interested in  negotiations where talks go back and forth.    They are more savvy and willing to walk away if things get to picky.

4)  If your house is not selling it could be the price so know when to drop the price.   Buyers will not even look and even loose interest if the price is too high.

Remember your first 30 days on the market are the most critical.  That is when you home gets the “most” attention because it is a new listing.  So if you have it priced very competitively and it is a great house, you may command list price.  I have seen it happen.

Here are some things to assist when the appraiser stops in:

1)  Allow 30 to 60 minutes for the appraiser to go in and inspect the property as well as take photos.  The appraiser will also measure the home, garage and any other outbuildings.

2)  Make a list ahead of time of things that you would like to improve or have ready prior to the appraisal.  This will help you have better results.

3)  If you have a floor plan or blue print of your home, it can come in handy when trying to verify measurements.

4)  Write up a list that includes improvements you have made to the property since you have owned it and how much you spend on those items.

5) Make sure the appraiser has access to all spaces on the property including attic and crawl space areas.

6)  Point out key features of the home that you feel give it some value.  There may be some things the appraiser could miss.

7)  Provide information on last year’s tax assessment.

8)  Be able to tell the appraiser when the house was built and when improvements were done.  Such as what year the roof was put on.

9)  If you know of some recent comparables in your neighborhood, have those available.

Here are some interesting facts.

1. Low-income borrowers are not the only one’s to benefit from FHA Loans.  There is no maximum income restriction.
2. FHA loans can be for more than first-time home buyers.
3. FHA loans are not only for lower priced homes. Loan amounts for FHA can be almost $800K. The loan amount cap was originally around $363,000 and increased to almost $800K to help stabilize the housing market.
4. FHA does not have anything to do with low-income housing. Simply FHA loans are mortgages that are insured by FHA.
5. FHA loans, in many cases, are more affordable conventional loans and allow the borrower to have a smaller down payment.
6. More lenders are willing to loan to to FHA (the federal government) that assures repayment.
7. FHA loans can be assumed. This means a new buyer can take over the payments as long as they bring the seller’s current equity (cash in the home) to the table. This works well when interest rates have risen greatly compared to what the seller’s current mortgage interest rate is.

Read More at RISmedia

Here is what Realtor.org had to say:

“Home sales will increase 15 percent to about 5.7 million units and REALTOR® income will be up 20 percent in 2010, NAR Chief Economist Lawrence Yun told a packed room of REALTORS today in a residential economic update at the 2009 NAR Conference & Expo.

Yun credited the home buyer tax credit with unleashing sales on the lower-end of the housing market this year, bringing up to 400,000 first-time buyers into the market who wouldn’t have bought otherwise. That influx tightened inventories of starter homes, shored up prices, and helped reduce households’ fear over continuing price drops.

This virtuous cycle will continue now that the federal government has extended the credit to mid-2010 and expanded it to make a smaller credit available to repeat buyers and to households with higher incomes. “The key is stabilizing prices and preserving household wealth,” he says.

Yun predicts the supply of homes to stabilize at the historic norm of six to seven months. Homes above $500,000 will remain elevated in the near-term, but that weakness will be offset by a hefty drop in starter-home inventories, which are running at about a five months supply.     . . . ”

Quoted from Realtor.org where you can read more.

Photo Copyright 2007, Amy S Myers

Here is some information from the National Association of Realtors:

“The data on the present home buyer tax credit show that the credit has had its intended impact—sales have jumped in recent months to a projected 5.1 million for the year and housing inventory has been trimmed, thus stabilizing home prices noticeably,” Phipps said.  He also pointed out that each home sale generates approximately $63,000 in additional economic activity, providing a tremendous economic boost to the national economy.”

Read more . . . .

Quoted from Realtor.org

Additional Tax Credit Info

Will The First Time Home Buyer Tax Credit Be Extended?

Times are Historic to Buy a Home

Use Tax Credit Down Payment?

Homebuyer Tax Credit Window is Ticking Away

Record Lows for Mortgage Rates Still Exist

Homes are Being Swept Up Quickly

Home Buyers Don’t Miss the Opportunity For Your $8000

First-Time Home Buyer Tax Credit to Rise?

More Tax Credit Info Surfacing

First Time Home Buyer Tax Credit Question

First Time Home Buyer Tax Credit Loans

Great News! Tax Credit Can Be Used for Down Payment

First-Time Homebuyer Federal Tax Credit Info

So sellers out there, are your walls and carpets dirty?  I had a seller that was not able to see this even after potential buyers made comments.  If you don’t have extra funds for special accents, at minimum make your home squeaky clean and clutter free.  You need to be competitive in this buyers market.

Believe it or not but I have had different buyers bidding and buying properties less than $20K and some that do not need that much work.  It is an  amazing deal and some did not need always need a major overhaul.  As the market begins turn turn around there are going to be less opportunities like this.  The deals that are there will be more competitive.  Some houses such as these can have mulitiple bids on them  (as many as five or ten bidders or more).  If you see a deal move fast and bid competitively whether for investment property or for owner occupied.

It appears that first time home buyers have really taken advantage of the tax credit.    “”First-time homebuyers, most between the ages of 25 and 45, accounted for about 45 percent of home sales from January through July 2009, according to the National Association of REALTORS®”.

“This is a historic time,” says George Jaramillo, a 35-year-old business analyst in Atlanta, who recently bought three homes, two of them foreclosures. “It’s a great opportunity to make some great gains in the future.”  – Realtor.org, Associated Press