The Top 5 Pitfalls of Selling Your Own Home

While it is certainly understandable why some people would like to avoid paying a real estate agent’s commission—especially in today’s economy—homeowners need to be aware of the serious pitfalls that can occur before they embark on the process of selling their own home.

As a member of the Top 5 in Real Estate Network®, I have had many clients enlist my services after losing valuable time and money attempting to sell their own home. What seems like a relatively easy undertaking at first, can become a time-consuming and overwhelming process. I’d like to share with you some of the most significant snags that often occur when selling one’s own home:

1.  Ineffective marketing. Most homeowners simply lack the resources necessary to effectively market their own home. Working with a professional real estate agent, such as a member of the Top 5 in Real Estate Network®, however, usually means your home will be marketed to the widest group of potential buyers possible, both through digital and print advertising, virtual tours, and online listing portals.

2.  Mispricing your home. In order to sell your home quickly for the best possible price, pricing your home correctly is critical. This very nuanced process of choosing the right listing price, however, is always best left to a real estate professional. Most who sell their own homes price too high, resulting in their home sitting on the market for an extended period of time. And, unfortunately, the longer a home remains on the market, the less desirable it becomes for buyers.

3.  Missing documentation. These days, a real estate transaction requires more documentation than ever before. It’s virtually impossible for the average homeowner to be aware of all the forms necessary to complete a real estate deal, and missing paperwork will bring any transaction to a grinding halt.

4.  Overlooking legalities. The risk of overlooking important legalities, such as disclosure and compliance regulations that vary from state to state, is high for most homeowners. The average person is, understandably, not well versed in the many laws that govern the sale and purchase of a property.

5.  Dealing with unqualified buyers. If you accept an offer from an unqualified buyer, you can delay the sale of your home indefinitely. A professional real estate agent will take the necessary steps to work with a lender to ensure a buyer is qualified before accepting their offer.

In most cases, owners end up exhausting more dollars than they would have paid in commission when attempting to sell their own home. If you would like more information on selling your home, please e-mail me. I also encourage you to forward this email to anyone you know who might be considering taking on the monumental task of selling their own home.

Sincerely,

John Bendall
RE/MAX Classic Group
Office: (908) 231-0700 650
Mobile: 908-578-1485
john@bendallgroup.com
http://www.centralnewjerseyhomes.com

NAROFF ECONOMIC ADVISORS, Inc.

Joel L. Naroff

President and Chief Economist

KEY DATA: Sales: +7.6%; Single-Family: +7.4%; Condos: +9.1%

WHAT IT MEANS:   Existing home sales surged in April as the federal incentives to buy came to an end.  This, of course was expected.

We saw a similar pattern last fall when the first iteration of the home buyers’ incentive neared an end.  This time, even though long-time owners were added to the mix, the run-up in sales was not nearly as dramatic.  Indeed, the peak was about ten percent lower.

That said, there was a really nice pick-up in demand.   Sales of both single-family and condos were solid.  Geographically, the increases were not that well distributed.  Purchases were up over 20% in the Northeast, nearly 10% in the South and West but down over 6% in the West.  I honestly cannot explain the situation in the West, but it is what the National Association of Realtors says it is.

Prices continue to rise, mostly for single-family homes.  As for supply, it increased.  As I have said on many occasions, I expected that to happen and I looked forward to it as a sign that homeowners have rising confidence in the market and they finally think they can unload their albatrosses. 

MARKETS AND FED POLICY IMPLICATIONS:  This was a very solid report but it doesn’t really tell us what condition the housing market is in.  That is because the government has interfered with the market.

We should expect that sales will fall fairly sharply over the next couple of months and only after that adjustment will we get any decent picture of the market.  The terrible mortgage applications numbers clearly point to slowing sales but that was one week of numbers.  It will take a while before the craziness created by the federal policy is washed out of the data.

I believe the housing market will slowly and steadily improve over the second half of the year as extremely low mortgage rates, modestly improving credit availability and job gains convince people to buy.  Rising prices cannot hurt either.  The markets will not probably do much with this number as Europe still seems to be the issue du jour.

There is also a lot of other data coming out this week including consumer confidence.  So caution will likely be the watch word.  This also doesn’t put a whole lot of pressure on the Fed to do anything, not with a possible European slowdown adding another headwind to the recovery.

Fact: All Real Estate Headlines Are Not Local

None of us are immune to the constant stream of negative news about the real estate market. There’s no denying the fact that the market has suffered, along with our country’s economy, over the past couple of years.

Unfortunately, this has created a serious dilemma as many consumers unwittingly base their real estate decisions on national media reports. Those of us in the industry live by the term “all real estate is local,” and as a consumer, so should you—otherwise, you run the risk of making an irreversible real estate mistake.

The truth, which you won’t find in the national media, is that real estate markets not only vary from region to region but from county to county, neighborhood to neighborhood…even street to street. I know from my national network of leading real estate professionals, The Top 5 in Real Estate Network®, that there is tremendous variation in home sales prices from locality to locality, and that buyers and sellers are often heading into—or worse, avoiding all together—a real estate investment based on misinformation from national media reporting.

Therefore, if you are thinking about buying or selling a home, it’s essential that you talk to a seasoned real estate professional in the areas you’re considering. Keep the following tips in mind when considering a real estate sale or purchase:

1.  Consult with a local real estate professional—like a Member of Top 5—for the most up-to-date information on the local market.
2.  Ask for statistical reports and trend graphs—the hard facts. Real estate professionals have access to actual data that can be broken down into extremely finite components, such as a particular street or neighborhood.
3.  Ask for comparative reports for the last 3-4 months of the current year, versus the previous year. This will reveal the latest market trend and provide you with concrete facts.
4.  Media reports can vary widely based on state, city, and neighborhood – read, listen, learn, but always revert to the facts for the specific area in which you are looking, especially if you are relocating to a different state or region.
5.  Also take seasonal considerations into account. In vacation-destination areas, the numbers will vary greatly from national and state data.

For many real estate consumers, today’s market is an unbelievable opportunity to buy or move up to a different home. Don’t let the national headlines scare you away. Consult with a local real estate professional to get only the facts that matter to your specific situation and location. Please e-mail me for more information and pass this article along to others who might benefit from the real facts.

SCARPA NAMED AS NEW MANAGER AT RE/MAX CLASSIC BASKING RIDGE

(January 28, 2010) – John Bendall, broker/owner of RE/MAX Classic Group Realtors, announces that Anthony Scarpa has been named Manager of the RE/MAX Classic office in Basking Ridge, NJ.

“We are thrilled to welcome Tony to our RE/MAX Classic team and to have him in charge of our Basking Ridge operation,” Bendall said. “Not only does he bring 30 years of experience to the job, but he also has an extensive background in several key real estate market segments.

“This move clearly demonstrates our ongoing commitment at RE/MAX Classic to give our Realtors the best support possible in the industry to help them capture more market share,” Bendall continued.

During his career, Scarpa has served as a vice president of three different REO divisions, as a branch office manager and as a broker/associate. He is a certified specialist in such areas as relocation and luxury home marketing as well as in land and new construction, the segment in which he got his start in 1980.

Scarpa, who also a New Jersey registered builder, has amassed a total sales volume of more than a quarter-billion dollars over the past three decades and has won numerous state and national awards as a top-producing real estate professional. In addition, he has wide-ranging knowledge in both the foreclosure market and in lender relations.

The RE/MAX Classic Group Realtors office in Basking Ridge is located at 47 South Finley Avenue (ZIP 07920) and can be reached at (908) 766-9300.

In addition to its Somerset County-based offices in Basking Ridge and nearby Branchburg, RE/MAX Classic Group Realtors has operations in Berkeley Heights, Union County, and in West Milford, Passaic County. You can learn more about RE/MAX Classic by visiting their Web site at www.classicgroup.remax-nj.com.

Welcome to this edition of The Monday Morning Message…..I hope you all had a fantastic weekend filled with fun and enjoyment. I know many of you spent some time doing last minute shopping and final preparations for the upcoming holiday, and I hope you made the most of it. You have worked extremely hard this year and you truly deserve to enjoy this season. I have seen many of you succeed and some of you struggle over the year and I want each one of you to know that I hope you are as proud of yourself as I am of you. Your character, passion, determination, and will to succeed was on display in 2009. Watching great agents like you this past year has reminded me that enormous accomplishments may be had regardless of current circumstances. It was not always easy, but great successes never are. We do not ask for the easy road. We do not pick the short term gain. We do not rise while holding everyone else down. Success has been achieved by all of you. Think about your accomplishments, large or small. Be thankful for them. Be proud of them. Be prepared for more. Thank you for all that you have done and continue to do.

Wishing you all and your families a very Merry Christmas and a Happy Holiday.

ENCOURAGEMENT CORNER…

I wanted to share a word with you that I think is very fitting at this time of year – BELIEVE. I hope that all of you still do, in many things large and small. I hope that all of you share this wonderful concept with all the people you care about. I hope you all never loose this magical idea – Believe.

I Believe we have not come this far to fail or give up now.

I Believe we are meant to go through storms before we see the beautiful sun.

I Believe the kingdom we live in is unshakable.

I Believe family become friends and friends become family.

I Believe all my hard work will pay off.

I Believe 2010 will be the best year of my life so far.

I Believe I have the power to change anything I do not like.

I Believe collectively we are stronger than we are apart.

I Believe love is the solution to all problems.

I Believe time brings about opportunity and thought.

I Believe I have been put on this earth and in this position for a purpose.

I Believe I am capable of anything as long as I have the desire to do it.

I Believe the choices I make are my responsibility alone.

I Believe I am who I am because of all the people in my life.

What do you Believe?

WORDS TO LIVE BY…

I believe that every human mind feels pleasure in doing good to another. Thomas Jefferson

You’ll see it when you believe it. Wayne Dyer

I firmly believe that any man’s finest hour, the greatest fulfillment of all that he holds dear, is that moment when he has worked his heart out in a good cause and lies exhausted on the field of battle – victorious. Vince Lombardi

I believe that unarmed truth and unconditional love will have the final word in reality. This is why right, temporarily defeated, is stronger than evil triumphant. Martin Luther King, Jr.

I can’t believe that God put us on this earth to be ordinary. Lou Holtz

I do not believe a man can ever leave his business. He ought to think of it by day and dream of it by night. Henry Ford

I believe that every right implies a responsibility; every opportunity, an obligation; every possession, a duty. John D Rockefeller

If you believe in what you are doing, then let nothing hold you up in your work. Much of the best work of the world has been done against seeming impossibilities. The thing is to get the work done. Dale Carnegie

LET’S MAKE THIS THE BEST WEEK OF THE YEAR!!!

Top Five Ways to Market Your Home in Winter

When it comes to selling real estate, we always hear about getting your home ready for the spring season. As a member of the Top 5 in Real Estate Network®, however, my experience tells me that, when marketed effectively, homes can sell in any season…even the cold, winter months.

Savvy buyers looking to take advantage of the newly expanded and extended home buyer’s tax credit are looking right now and are anxious to make a purchase. So, here are some great tips for effectively marketing your home right through to the spring thaw!

1. Winter curb appeal. A winter landscape can be just as attractive as a leafy, floral one and can often offer a neater appearance for your yard. Bare spots can be more obvious in winter, though, so camouflage them by laying mulch down around shrubbery and in flower beds. Keep the yard raked and grass mowed, and keep gutters clear of leaves and debris. Make sure pathways and driveways are clear of snow and ice at all times. And, as always, check for peeling paint or rotting window frames…even more obvious without the cover of summer foliage.

2. Tone down but take advantage of holiday décor. Now is not the time for a Griswold-style holiday! Don’t inundate your home with blinking lights, inflatable snowmen or a giant Santa on the roof. That said, a few tasteful, non-denominational decorations could boost your home’s appeal. Try some small, white lights in a tree or framing your front door, or some nice evergreen touches. You might even consider leaving this subtle décor in place through the winter season.

3. Stage outdoor areas. While you might normally bring in the patio furniture when colder weather arrives, leave it out to give buyers a sense of your home’s outdoor gathering spots in warmer weather. A chimenea or any portable outdoor fire pit is a nice touch for an outdoor patio or deck.

4. Play up the cozy factor. Set the heat high enough to make the house as warm as possible, without overheating it, which could make it seem stuffy. Fireplaces are always a big draw, but even more so in winter; make sure it is clean and arrange the room to highlight this feature. Add some cozy touches by draping a warm throw over a big arm chair and ask your agent to light some candles if the situation permits.

5. Make light a focus. Buyers will be paying special attention to how much light fills your home, especially during the cold, short days of winter. Open all drapes, curtains and blinds to let as much light in as possible. On drearier days, turn on all the lights in the home. Well-maintained houseplants and floral arrangements are also more important for brightening your home during winter.

Don’t miss this key opportunity for marketing your home. If you would like more information on preparing your home for market this winter, please e-mail me, and please pass this email on to anyone else who might find it helpful.

The definition of family has expanded far beyond the traditional image of a married couple and 2.2 children, and daily lives are busier than ever. Understanding a family’s unique needs and lifestyle is important in helping them find a house that really feels like home.

Flexibility may be the buzzword of the millennia. Flexible schedules, flexible work hours, flexible space—Americans are regaining control by rearranging the flow of their day-to-day lives. Very few of us lead cookie-cutter lives, so cookie-cutter home solutions don’t always work. If every family has a unique configuration and life pattern—consider single moms, empty nesters with visiting kids and grandkids, families with young children, multigenerational families—shouldn’t the architecture that surrounds them be flexible enough to accommodate their needs? The opportunity is to identify houses that offer “adaptable possibilities” and develop talking points aligned with your client’s situational needs.

Buying a home today is an emotional, economic and deeply considered purchase. That home will be a base station for family, friends, neighbors, school, work and play and its layout and traffic pattern will need to accommodate the “busy-ness” of life. As buyers imagine themselves in a potential home, adaptable space may be a selling point over and above simple staging. Here are a few spaces to consider:

-Kitchen: We cook, we do homework, we entertain, we do crafts there. Open or co-located areas for simultaneous activities and multiple people usually top the wish list. If space is limited, suggest a corner of the kitchen or an adjoining dining room as a homework/conversation area.

-Open, accessible plans: If your client is single, an open plan delivers a great space for entertaining. An older or multi-generational family may view it in terms of accessibility. Either will have visiting family members, so having a “visitable” home offers the opportunity to welcome anyone regardless of age or ability. One zero-threshold entry, wide doorways and a main floor bathroom offer ease of use and accessibility whether you’re unloading groceries or have a temporary or permanent physical impairment.

-Home office/library/reading space: Part of a dining room, den, extra bedroom or even an extra closet can be furnished to create a small space for quiet activities. Bookcases lining a wall speak volumes regarding functionality far beyond the original intention of the room.

-Basement: This extra square footage offers many options so even if the space is un- or partially-finished, paint the vision for tomorrow’s media room, game room, exercise or craft area.

-Outdoor living spaces: Whether it’s a tiny lot or large open space, suggesting ideas that go “beyond the deck” with landscaping, pathways and sitting areas brings even the mundane to life.

Seeing a home through a different lens may help your clients imagine the space as they would actually use it and gain a new perspective on possibilities. Going beyond the basics of BR/BA-speak to engage your clients in lifestyle discussions will not only help you find solutions that are right for each family; it will help them find the perfect fit for the architecture of their lives.

Melissa Birdsong is vice president for Trend, Design & Brand, Lowe’s Companies, Inc.

An $8,000 federal tax credit for first-time homebuyers that is set to expire at the end of the month inched another step closer to getting extended until April. The Senate voted 85-2 yesterday to move the bill to a final vote, and senior members of Congress said that they expected the bill to pass next week.

In what officials say is a move to stimulate the economy, the measure might even be expanded to give a $6,500 tax credit to homebuyers who have lived in their previous home for at least 5 years.

Home sales contracts rise for 8th straight month
Real estate rally attributed to first-time homebuyer tax credit that expires at the end of November.

By Les Christie, CNNMoney.com staff writer

Last Updated: November 2, 2009: 10:41 AM ET

NEW YORK (CNNMoney.com) — The number of signed sales contracts to buy homes rose in September for the eighth straight month, according to a real estate industry report released Monday.

The September Pending Home Sales Index from the National Association of Realtors (NAR) spiked 6.1% to 110.1, consolidating a 6.4% gain in August. It was the index’s highest level since December 2006, when it stood at 112.8.

The leap was far better than expected. A panel of analysts surveyed by Briefing.com had forecast a 1.2% rise.

Analysts, including Lawrence Yun, NAR’s chief economist, have traced much of the improvement to the government’s first-time homebuyer tax credit program, which gives an up to $8,000 tax break to new homebuyers. It’s estimated that between 200,000 and 400,000 additional sales will have been made because of the credit.

“What we’re witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month,” said Yun.

The credit lapses after Nov. 30, and the housing industry is bracing for a major turndown in sales if Congress fails to pass some kind of extension.

“Clearly, buyers were eager to get business done before the credit’s November expiration,” said Mike Larson, a real estate analyst for Weiss Research. “So I wouldn’t be surprised to see some give back in pending sales over the next month or two.”

Favorable long-term prospects

Any fall-off should only be temporary, however, according to Yun. Market conditions are just so favorable for buyers right now that sales should rebound quickly should they suffer through a hangover following the tax credit demise.

With home prices well off their highs and mortgage rates still extremely low, the cost of homeownership is well within the range for many Americans who are not homeowners today. There are, Yun estimates, about 3 million renters who are now financially well-qualified to buy a median-priced home.

“As long as buyers do not overstretch and stay well within their budget, a sizable pent-up demand can be tapped among financially qualified potential buyers,” he said.

That will not translate into a new boom, however, according to Larson. “No explosion of pent-up demand will send markets to new heights,” he said. “The economy is still not in fantastic shape.”

Housing markets certainly do not seem to be out of the woods, but this latest release added to a modest winning streak of positive recent reports. Prices appear to have stabilized, with the S&P/Case-Shiller Home Price index up four months in a row and completed sales of existing homes at their highest level in two years.

Foreclosures, however, continue to plague many markets, adding to supplies on homes for sale, according to Yun.

“An excess of homes remains on the market despite recent improvements,” he said. “Although current inventory is getting closer to price equilibrium, foreclosures will continue to enter the pipeline.”

Increased pending sales are a forward-looking indicator since contract signings precede actual closings; they typically take place two to three months later. Although some contract signings fall through, a jump in signings in September usually means NAR statistics on December existing home sales will improve.

First Published: November 2, 2009: 10:04 AM ET

How to Expedite the Loan Modification Process

As a Member of the Top 5 in Real Estate Network®, I am frequently asked these days for my advice on loan modification…specifically, how quickly new loan terms can be arranged. Waiting to find out if your application for loan modification has been accepted can be a nerve-wracking and frustrating experience—especially if you’re still receiving late payment notices and creditor calls. Here are some important insights into the loan modification process from consumer advocate and author Ralph R. Roberts.

1. The loan modification process typically takes 30 to 90 days, depending mostly on your lender. The loan modification timeline, however, is not set in stone. The more complex your situation, the longer the process takes. Borrowers with a lot of collateral issues can see their loans take longer than what has become the typical 30- to 90-day timeframe.

2. A professional can often reduce the amount of time required by processing your paperwork efficiently, presenting your application exactly the way the lender wants it, and knowing from past experience what the lender is able and typically willing to agree to. Find out how long the process is likely to take and mark the dates on your calendar.

3. Refer all matters to the professional who is representing your loan modification. Anything you say to the lender could confuse things or compromise your representative’s ability to negotiate the best deal on your behalf.

4. Log all phone calls and correspondence between you and your lender or representative. Keep track of important dates. Consistent follow up is paramount to a successful modification.

5. Explore other options. If the lender denies your request for a loan modification or presents an offer that you cannot accept, you will need a plan B. Consult a real estate agent about listing your home for sale. Talk to a mortgage broker or loan officer about refinancing. Speak with a bankruptcy attorney to find out whether filing bankruptcy would be a better choice.

6. You might continue to receive delinquency notices or late payment phone calls. Push to have all default and foreclosure actions put on hold while your workout attempts are underway.

The loan modification process can be long and trying, but doing your part to keep the process on track by remaining informed can increase your chances of a positive outcome and reduce stress. For more advice on loan modification, please e-mail me—I can point you in the right direction. Please also forward this important information to your social network; it just might help someone you know.