There’s a good reason about 80 percent of homes are sold with the help of a Real Estate Agent. Below are some of the ways that Real Estate Agents help the buying or selling of a home be a straightforward and manageable process.

Setting the right price. One of the very first things a Real Estate Agent presents to a home seller is a Comparative Market Analysis or CMA. The CMA is a report that analyzes the current market trends and recent sales prices within a given area. This report is an important tool that helps the agent determine a fair and reasonable price. Setting the right price is absolutely crucial in home sales, especially in this market. Sellers who utilize a Real Estate Agent, on average, receive 20 percent more for homes compared to those who sell on their own.

Neighborhood knowledge. A Realtor has a better understanding of what buyers can get for their money in the neighborhood they want to buy in. The agent will have information available about the neighborhood and be able to offer guidance and advice to their clients. Agents have information about the neighborhood including noise levels, schools, shopping, property taxes, local amenities, and demographics. For sellers, these details are equally important as they affect the value and marketability of the home.

Marketing expertise. Along with the CMA, a Real Estate Agent will typically present sellers with a marketing plan that details what they will do to sell the home. This may include open houses, internet exposure via large home search sites, fliers, brochures, placing ads in various media including social media, and showing your house to potential buyers. Agents also have access to two extraordinary resources that are critical to selling a home: other agents, and the Multiple Listing Service (MLS).

The MLS and the other agents. The multiple listing service (MLS), is a database of all the homes for sale by Real Estate Agents in a particular region. Once a home is listed, information about it can be accessed by those Real Estate Agents and matched to buyers. You are engaging the efforts of not just one person, but hundreds to sell your home. According to the National Association of Realtors, 82 percent of homes are sold through an agent’s contacts.

Objectivity. When selling, a Real Estate Agent can provide an unemotional analysis of the home and what needs to be enhanced to make it more appealing to buyers. Buyers who choose to utilize a Real Estate Agent will benefit from the agent’s objectivity. Real Estate Agents can provide an unemotional analysis of a home. They will determine any enhancements, modifications or remedies that might be needed to efficiently buy or sell a home.

Efficiency. With the expertise of Real Estate Agents a transaction will be more efficient. Buyers will be shown homes in relation to their needs and qualified loan amounts. Sellers will be best served by Agents objectivity in preparing their home for the market.

Contracts. Realtors can complete the purchase and sale agreement and are knowledgeable about the correct forms needed to accommodate the transaction.

Negotiation and closing assistance. A Real Estate Agent can provide advice for both buyers and sellers about whether to accept an offer, or counter-offer. Real Estate Agents know what a home is worth and what a fair price to offer or to accept is.

Good photographs of homes are essential in the process of selling a home. Imagine when a buyer goes to their favorite home search engine and starts looking for homes. They will more often then not be taking one look at the first picture of a listing and deciding whether it is worth investigating further. Below are some do’s and don’ts to check that ensure your agent is representing your home the way it should be.

1. Do Not List Without a Photo. – Listing without a photograph is almost suicidal to the listing if at the very least extremely counter productive. If people can’t see what it looks like, it can be swiftly ignored. In a market where there are so many homes available, don’t sell your listing short even before you get started. Remember, people are visual creatures and images invoke the strongest emotion and leave a lasting impression.
2. Have Multiple Photo’s. - Now you have one picture. Great! Now interested buyers will have one image to look at and then they get to imagine what the rest of the home looks like! The saying, “a picture is worth a thousand words” is true especially in this case. Some buyers may think that you’re trying to hide something by not having enough photographs, or that your agent is inexperienced. Multiple photographs allow the potential buyer to have a good idea about what your home has to offer, and you end up generating interest from the buyer to read more, and people’s time isn’t wasted.
3. Ensure Quality. – You have a number of images for buyers to look at. You have to be sure that the photographs taken are good quality. This means the content of the photograph is relevant to what a buyer needs to see or know about a certain room. A picture of a wall is not helpful. Put yourself in the buyers’ shoes. What would you want to see? Aside from the quality of the content ensure that the actual digital quality is good as well. If you’ve re-sized the picture so many times that it resembles a Jackson Pollack painting, go back to the original and take the time to size the image properly.

Always keep in mind that when a buyer is looking for a home, especially in our current market situation, they will be confronted with hundreds of homes to choose from. They will usually only pick a select few of those hundreds. The easiest way to narrow their search is to exclude homes with no pictures, not enough pictures, or with poor quality pictures. Keep your property in the running and take the extra time to have great, quality images that showcase the features of the home.

When buyers look at a home, one of the first questions they ask is how long its been on the market. The thought process is that, if a home has been on the market for long time, there must be something wrong with it, right? Not necessarily. Below are some common reasons a house has been on the market for an extended period of time.

1. Overpriced: When the home was originally listed, it may have been way above what the market would bear, and hence, no interest in it. Overpricing of homes is one of the most common and often one of the main reasons some homes are on the market for so long. The tenet of real estate that we’re so used to hearing is, “location, location, location.” Now it’s more along the lines of “pricing, pricing, pricing.”
2. Difficulty Showing: If a home has occupants living there it may be difficult to coordinate times when people can come and look through the home. In some situations tenants may be unwilling and even Sellers may make it difficult to show a property.
3. Inflexible Sellers: Even if a price may be relatively reasonable, some sellers will not budge from the price they’ve set. This inflexibility can turn a lot of buyers away especially if a reduction in price is to accommodate something that may require repair with the home.
4. Down Real Estate Market: In a buyer’s market, which is our current situation, it can take longer to sell a home just due to the fact that there are so many properties available. It’s supply and demand.
5. Little Exposure: If the home received little to no exposure on the internet or the MLS then that will translate into larger cumulative days on market. This is hard to verify but is still quite common. For example, a listing with one or no pictures is unlikely to generate any interest. No pictures or description equals bad marketing.

What Does This Mean To You?

If you’re a home buyer or an agent representing a buyer, cumulative days on market is important. If you take quick look at how long it’s been on the market and making a decision based on that, you may miss some opportunities. Especially in the current housing market situation, homes being listed for much longer than usual is becoming the norm. As a buyer, consider the above and make sure you are evaluating the home on more than just how long it’s been listed. Sometimes, the longer the home is listed, the more motivated a seller is to sell.

If a home has been sitting vacant for a long period of time, that can also mean that it has gone without maintenance, heat, and general care.

As a seller, if you’re home has been on the market for an extended period of time, it may be time to reevaluate your listing. If it falls under any of the common reasons above, take action to resolve it.

Happy new year! As the new year begins, so do the resolutions for the upcoming year. As an agent, there are some things you can resolve to do that will not only increase your business, but will increase the success rate of your buyers and sellers.

Social Media

Utilizing social media to help advertise and expose your listings will not only help your sellers but it will also attract buyers looking for a home. If you haven’t already started using social media, ie. Facebook, Twitter, and others, you’re missing out on one of the fastest growing, and most useful tools you have available to you.

Newsletters

These may seem old-fashioned and out of date, but the fact is they’re great for staying in the minds of your constituency. People that you’ve done business with before will have you in mind when they recommend an agent to their family and friends or when they themselves are in the market for a new home or need to sell theirs.

Taking Pictures

This seems obvious, but if you’re searching for a home on the MLS or other home search tool, and you come across a listing with absolutely no pictures, or just one, what do you do? You ignore it. Don’t let this be you. It is doing a disservice to your client if you don’t take the time to take photographs. If you’re serious about selling the client’s home, you need to demonstrate the features of the home. And the best way to do that is through photographs.

Tidying The Property

As a agent listing a property, your responsibility is to get the home sold. There are a plethora of things you can do to ensure your listing gets seen. One of the best ways is to communicate with the seller about what the expectations are for the home. This also relates back to taking pictures. Make sure your photos are appealing and demonstrate the special attributes of the home inside as well as outside. Laying bark down in flowerbeds is a great way to add a landscaped and clean look to a property. Make sure that during the picture-taking process that the home is clean and uncluttered and that before potential buyers come to investigate the property, that it gets picked up and tidied.

If you’re already doing the above, these are just a few less resolutions you’ll need to make. For those that aren’t, working on the above will improve your exposure, and will help advertise yourself, and your listings.

Deciding whether or not buying a home is right for you can be a difficult decision. While a home can be a great asset, it can also be a large burden as well. The below list of advantages and disadvantages should help sort out what will be right for you. Consider the following.

Advantages of Buying Your Own Home

1. Tax Deductions: Most of the interest you pay on your home mortgages (a majority of the monthly mortgage payments is interest) is tax deductible.

2. Equity: Over time, and as you continue to make your monthly payments your home’s equity will increase. It will increase as the value of the home increases. You can even borrow against the equity in your home in the form of a home equity loan.

3. Asset: A home is generally an appreciating asset. The home’s value is likely to increase which means if you hold onto it for usually longer than five years, you’ll be able to sell it for a profit.

4. You Own It: The House is yours. You don’t have to ask someones permission on whether you can change the color, remodel, landscape, or have pets.

Disadvantages of Buying Your Own Home

1. Maintenance: All the maintenance required will have to be done by you, or you’ll have to pay someone else to do it.

2. Taxes: You will have to pay property taxes, which will be included in your monthly mortgage payment. These are not tax deductible.

3. Risk: The property value of your home could decline or you may be unable to sell it later, causing you to lose money on your investment.

4. Opportunity Cost: A home is a fairly large investment. If you could put the money down into an investment like stocks or mutual funds, or go back to school to earn a degree, you could be losing an opportunity.

If you’re considering buying a home, the first thing you’ll need to do is determine how much you qualify for. Contact your lender to see how much you can pre-qualify for.

“Get your green on!” The slogan for the Seattle Home Show 2 focuses on living green and natural, and green design.

Beginning Friday, October 8^th through Sunday, October 10^th, 2010, the 12^th annual housing extravaganza, the Seattle Home Show 2, will open at Qwest Field Event Center. The Home Show will have on display hundreds of home and garden products; daily “Meet the Experts” seminars; cooking demos conducted by local chefs and more. The Seattle Home Show 2 will show you ways you can save money in this tough economy. From cutting your painting costs, to saving energy on electricity, there’s so much here you’ll want to see and learn about.

Some Highlights of the Show

• Remodeling tips and information from experts in the industry.
• Home designs focusing on classic and simpler lines.
• How to save on lighting and energy bills through home automation.
• Tips for cleaning the home from the guru of household hints, Joey Green.
• Cost effective tips for green design and green living.
• Things you can do now to be ready for the housing rebound.
• Chef cooking demonstrations.
• Seminars conducted by experts in home improvement, decorating, and landscaping.

Where To Park

Parking for the Seattle Home Show 2 is available in the Quest field Event Center parking garage, Quest Field North Lot, Safeco Field parking garage as well as other lots in the area. If you have four or more occupants in your vehicle, you should take advantage of the “Four or More Park Free” designated parking areas (Quest Field Event Center lots, and Safeco Field).

Show Hours and Information

When: October 8 – 10, 2010

Times: Friday and Saturday, 10AM to 8PM. Sunday, 10AM to 6PM.

Paid attendees can return a second day for free through “Too much to see, come back for free!” by registering with valid ID, parking not included.

Admission: $10.00 for adults, $7.00 for seniors (60+) and $3.00 for juniors (ages 7 -15), under 7 are free. Visa and Mastercard are accepted.

E-Tickets

E-Tickets can be purchased online at SeattleHomeShow.com. E-Tickets include free parking for the show at Quest Field Event Center and Safeco Field.

How important is location?

Location is one of those varying factors that has a huge impact on your buying decision. Ask yourself the following questions.

1. How close do I want to be to work?

2. Do I want to be in the city or in the suburb?

3. How far away from busing and transit do I want to be?

4. How close to shopping centers and grocery stores do I want to be?

5. Do I prefer densely populated or rural areas?

By answering these questions you should have a better understanding of where you want to be.

Price vs Comfort?

When looking for a home you need to consider what it is you’re really looking for. Are you looking for a long term residence? Or are you looking more towards a place that will generate some equity and will be a stepping stone to a future purchase?

If you’re starting out and don’t have a large resources pool of funds, it may be wiser/safer to search for homes that will be easier to afford vs. larger and more difficult to sustain.

Also keep in mind, just because you might qualify for a more expensive home, that doesn’t mean you’ll want to strap yourself for cash for several years afterward. If you’re barely making enough to cover a mortgage payment, car payment, medical insurance, electricity, water, sewer, garbage, and food, you may want to consider what your life will be like financially if you go for something that you can afford but only barely.

Buying a smaller, more affordable home will help you keep your options open and will provide you with an equity stepping stone to purchase something more long term in the future.

Roommates?

Buying a new home as a first time home buyer can be daunting financially. Should it fit within your needs, a roommate can alleviate some of the financial burden. While many first time home buyers prefer to purchase the home for the privacy, some individuals or couples can get help financially with the sacrifice of some privacy.

Why Should I Own?

There are many benefits of owning a home. By buying a home, a portion of your mortgage payment will be going towards the principle of the home, increasing the equity. If for example you’re a first time home buyer, buying a smaller and more affordable home, and later selling it is often a means towards your goal/dream home. Also, instead of paying rent, you’re putting money towards an investment that will also appreciate over time. There are also other benefits like pride of ownership, and tax write-offs.

As with many decisions, what your needs are depends on the individual. As a first time home buyer you’ll need to think about what matters most to you and go from there. By knowing what your needs are it will not only help you get what you want, but it will also help in the search for your home.

Purchasing a home with a partner or significant other can be a challenging process. The following will hopefully help minimize common difficulties and challenges associated with buying a home together.

Communication

Communication is one of, if not the most, important facets of purchasing a home with a partner. By having open lines of communication, and by ensuring that all needs, opinions, and other concerns are heard and listened to, a lot of issues can be avoided.

Define Your Parameters Carefully

How important is location? Multiple stories? Access to bus lines? Close to work? Size of home? Fenced yard? Multiple bathrooms? Price?

By carefully identifying what is important to each partner so much confusion can be avoided. Be as clear as you can with each other in defining what matters most to you has a partnership or couple.

Be Patient

The process for finding a home can be tiring and at times arduous. An experienced agent can help alleviate the decision making process and find the right house for your needs. Communicate with your agent what both of your concerns are and be clear about what matters the most to both of you, and what things you are willing to compromise on.

It will take time and effort, but by communicating openly, defining your home parameters clearly, and being patient with the process, you can reduce the amount of stress and minimize difficulties in your search.

The Obama Administration’s Making Home Affordable Program (HAMP) is a critical piece of the effort to bring relief to distressed homeowners and stabilize the housing market. What the program is attempting to do is to work with loan servicers to reduce a homeowners monthly mortgage payment. Homeowners that are struggling to make their mortgage payments on time, either due to an adjustable interest rate increasing or less income, can apply for HAMP. The program will reduce a homeowner’s monthly mortgage payment to 31 percent of their verified gross (pre-tax) income to make their payments more affordable.

Are You Eligible For HAMP?

You may be eligible for HAMP if you answer YES to all these questions.

Are you the owner-occupant of a one to four-unit home?
Do you have an unpaid principal balance that is equal to or less than:

• 1 Unit: $729,750

• 2 Units: $934,200

• 3 Units: $1,129,250

• 4 Units: $1,403,400

Have a first lien mortgage that was originated on or before January 1, 2009?
Have a monthly mortgage payment (including taxes, insurance, and home owners association dues) greater than 31% of your monthly gross (pre-tax) income?Have a mortgage payment that is not affordable due to a financial hardship that can be documented?

If You Qualify

Homeowners who qualify for HAMP must complete a trial period of three to four months to demonstrate that they will be able to make their reduced payments on time before their mortgage becomes permanently modified.

To create an affordable payment, your mortgage servicer applies a series of modification steps in the following order:

1. Rate reduction to as low as two percent.

2. Term extension up to 40 years.

3. Principal forbearance (or deferral).

A portion of the principal can also be forgiven, although that is optional and is based on the discretion of the servicer.

If you think you qualify for HAMP, contact your servicer.

For more information and frequently asked questions, please see the Making Home Affordable government website.

Technology has evolved to the point where you can edit and modify photographs to such an extent as to adding objects or smoothing a feature of the image. Many people are familiar with what staging a home involves. It requires someone to come in and set up and analyze the space and add furniture and objects to resolve the vacant look that an empty room has. Now, with digital editing software, this can be done on a computer by adding furniture and object directly to the image without ever setting foot in the home. Below will discuss the pros and cons of virtually staging a home.

Pros

• In many cases digitally editing stock images taken of a vacant home is less costly than hiring someone to move furniture and other objects into the home and then taking the picture.

• There will be less potential for damage if people are moving large pieces of furniture around the home.

• Staged homes statistically sell for 17% more than vacant homes. Only 10% of home buyers can visualize the potential of a vacant home.

• Virtual staging is less of a hassle as you can simply send photo’s to the virtual staging designers without moving furniture yourself.

• Requires only a one time design fee and no monthly payment to rent staged furniture.

Cons

• Virtual staging that is poorly done is extremely obvious and can detriment the quality of the photo for home buyers.

• In a bright room it’s difficult to capture lighting and replicate it’s affect on imported image objects.

• Virtual staged rooms can be made to deceive which may not sit well with alert buyers if they notice a discrepancy in the size of how an object looks in the photo vs. physically.

• It’s difficult to produce the same effect that real furniture has on the room.

• Buyers that visit the home may wonder where the furniture is that was furniture is that was in the pictures. Real furniture helps buyers visualize when they are walking through the home.

It will really come down to preference between how much you’re willing to spend between the two staging methods, how competent the stagers for both virtual and actual settings are, and whether or not staging is right for you.

In general, staging will often provide a needed boost to help set your home and property above the competition. For some more information on staging in general, see our other blog post concerning staging.