Pricing A Home To Sell

Psychologically which price looks and feels better to you - $299 or $300? People generally feel like it’s more of a bargain with $299, although the difference is a mere dollar.

There’s a fair amount of psychology and strategy that goes into determining a home’s asking price and while you may have a price in mind, that doesn’t mean your home is priced to sell. It’s all about tapping into the mind of potential buyers and how they identify with your price.

The biggest hurdle is to determine a fair price for your home, sans any emotions. Ask any homeowner what their home is worth and the price will include all the memories that have gone into making a piece of property a home. Emotions have no place in this business practice.

It’s understood that sellers don’t want to simply give their homes away and everyone wants to sell for the maximum price, but buyers are seeking bargains and with an abundant inventory, sellers must be flexible.

The real estate agent will identify the approximate value of a property based on comparisons of similar properties sold in a neighborhood, the market conditions, competing surrounding properties, and the time of year. Once all of these elements are considered, the real estate agent will have a price range in mind.

Here are a few strategies for the seller to consider;

• Listen carefully to your agent’s pricing strategy – they are the experts. It’s their job to know what works and what doesn’t. And as with any strategy, be prepared to have an ongoing discussion about pricing with your real estate agent. If potential buyers are not biting, it may be time to re-think the asking price.

• By pricing your property on the average to the lower end of the price range, you will stimulate more interest among more than one buyer. Also, for those homeowners in a position to sell quickly, this would be a good option to get more offers. Sellers who list their homes too high miss out on a segment of buyers.

• Forget the creative pricing strategy - $488,888? Odd priced homes call attention to the price for no good reason. The goal is to showcase the property, and to appeal to as wide an audience as possible. Getting eccentric with your asking price counteracts the tried-and-true strategy of psychological pricing. Well thought out rounded figures work best - $299,000

A lot of factors can come into play when selling or buying a home, and not all of them can be anticipated. If you can be flexible and react quickly to changing market conditions you’re more likely to get the best price with the least aggravation.

South Bay Home Sales Rise

The local housing market enjoyed an increase in single-family home sales for October, even as prices fell.

South Bay cities - excluding the Palos Verdes Peninsula and Inglewood - saw 183 sales of single-family homes, up 8 percent from the same month a year ago.

In a statement released Wednesday, the South Bay Association of Realtors reported that the median price of those sold homes was $400,000, down 26 percent from a year earlier.

The median price is the middle figure where half of homes sold for more and half for less.

The improved sales with lower values represent real estate's uncertain future as monthly data give mixed signals about the industry's direction.

"Increased single-family sales suggest that buyers and sellers are coming together more effectively and new families can get into homes for which they are qualified to buy," association President Caren Greenwood said in a statement. "If this trend continues in the coming months and going into 2012, and appropriate financing is available to qualified buyers, then we hope that it signals the economic recovery gaining strength."

Sales of local condominiums and town homes were less promising, with 6 percent fewer transactions in October compare with a year earlier.

The median price in this segment was flat at $409,000.

Warren Snyder, co-owner of a mortgage brokerage and real estate company, said he has been an uptick in business in part because of low interest rates.

"We're doing a lot of refinances, and we're also doing a lot of sales right now through short sales," said Snyder, of Carriage Realty & American Broker Loans in Rolling Hills Estates.

While the housing market continues to look shaky, Snyder said that lower home values mean he has been able to help his clients lower their assessed property taxes.

Statewide, home sales also rose last month, according to the California Association of Realtors.

Resales of single-family homes across the Golden State reached 493,240 in October, up 8.5 percent from a year earlier, and a 0.9 percent rise from September of this year.

The statewide median price was $278,060, down 8.9 percent from a year earlier and 3.3 percent decline from a month earlier.

Note: Article written by Muhammed El-Hasan of the Daily Breeze.

Does Your House for Sale Advertisement Say "Buy Me Or Boring"?

It's no secret that human beings react to words, and any edge that a seller can gain - starting with the house ad - is vital.

While advertising your home is not an exact science, some words seem to give a listing more power than others. "Beautiful" rather than "move-in condition" translated on the average to three percent or more on the sale price - that works out to $9,000 on a $300,000 house.

Words that denoted "curb appeal" or general attractiveness - such as good neighborhood or excellent upkeep, for instance - helped property sell faster than those that described "value" and "price."

There is always something that can be said in an enticing influential way, which will force a buyer reading the ad to see opportunities. It is always important to help elaborate on the home's assets by providing descriptive details and giving the buyer a visual.

Placing a spin on the advertisement is the best opportunity to getting people in the door. You may chose to say, 'professionally designed,' 'Laura Ashley-inspired,' 'designer decor' or 'gourmet kitchen,' ".

It is also important to use proper terminology to enhance a feature. For example, heated floors in a master bathroom should be referred to as 'radiant heating' or a 'spa-like master bathroom.' If an owner claims there's nothing new, it can be referred to as, 'lovingly maintained’.

Many times sellers can make overstatements about the home. Your realtor will perform a walk-thru and ensure all the characteristics of the home have been considered; real estate agents create that visual romance that potential home buyers are looking for.

Is it Help or Hype?

Everything these days is about price and timing; potential buyers know a good deal is possible. Combine that with a properly worded advertisement, and you have the better chance than the next seller.

Buyers are attracted to verifiable amenities – the new roof, new carpeting, updated kitchen, beautiful landscaping, finished basement, golf course community, lakefront, or a gated community. If a property has a finished basement, it should be fully finished – not just one room in the basement.

Constructing your Ad

1.Start with a strong opening statement about the home

2.Mention the one or two key benefits that will attract buyers' attention and spark their interest

3.Include the significant facts about the property, such as the number of bedrooms and bathrooms

4.Use words that appeal to the emotions and senses

5.Be accurate. Prospective buyers are bound to feel disappointed or manipulated if the home doesn't match your description.

Lastly, always close with a statement that encourages prospective buyers’ – don’t leave a blank slate. "Call today" is a call-to-action statement that translates into ‘catch me now while the getting is good’.

Buying A home May Now Be Cheaper Than Renting That Apartment

In an ironic turn of events, many people are finding they cannot afford to pay rent and are turning to buying a new home.

Falling house prices and increasing rental demand have made it cheaper to buy a property than to rent. Individuals are quick to assume a rental would be much more peaceful on the pockets, but it turns out most rentals are priced, on average, approximately 25 percent higher than a monthly mortgage.

With home prices way down, low interest rates and sky high demand in the private rental sector, buying has never been a better option for those able to secure a mortgage. And with home owners reducing prices even further, in preparation for a quick sale during the holiday season, this has become one of the best times in history to purchase a home.

The statistics in every state show that the average rent is more than a monthly mortgage payment. When you add on the incentives to owning a home, it’s a strong argument to contact a real estate agent quickly.

Take a look at average rental prices in a few states;

Alabama $ 724

Arizona $ 815

California $ 1455

Colorado $ 1032

Florida $ 982

Georgia $ 819

Illinois $ 1098

Maryland $ 1283

Nevada $ 811

New Jersey $ 1468

New York $ 1672

Pennsylvania $ 1009

South Carolina $ 753

Tennessee $ 794

Texas $ 946

Virginia $ 1149

Average rates, based on 2 bedroom

Renters have failed to realize what an opportunity they have right now. There is an abundance of homes to choose from; and a larger selection of available homes versus rental units. Imagine shaving off $300 from your monthly rental payment? What about purchasing a new home, with all your required amenities, in the vicinity that’s central to everything, all at a lower monthly cost?

But the million-dollar question is whether prospective homeowners can get a loan.

After the mortgage meltdown, banks tightened credit standards including increasing down payments which shut out many potential homebuyers; however, there are many programs available to help get those homebuyers into a new home.

Many factors have created great deals in the housing market, but those same factors also might be too daunting for many individuals to overcome right now.

Everyone should know where they stand. At a minimum, meet with a mortgage broker and real estate agent to ascertain what home loan programs you may qualify for. This could very well be the best time in U.S. history to purchase property.

A Better Advantage With Credit Union Mortgage Loans

Amidst the topsy-turvy spiral of mortgage lending, most borrowers feel as though they need to hire a team of expert finance and legal consultants before pursuing a mortgage loan. Who can blame them? From the unintelligible disclosures to the twists, turns and requirements presented during processing, borrowers must approach the loan process with an eagle eye on the bottom line. Getting the most bang for the bucks.

After the wave of borrowers lost their homes in the fiery ashes of mortgage-gate, many prospective homeowners are hesitant about mortgage loans in general. Adding fuel to this fire are unattainable rates, poor servicing and being subjected to polices that serve the lender, but not the borrower's needs.

Credit unions are showing that there’s a better way to bank with several distinct mortgage loan advantages;

• More flexibility when locking in rates. Published mortgage rates can be locked for 45 to 60 days without a fee, when most banks quote 15 or 30 day rates.

• Credit union mortgage rates are better than those of other lenders because the company does not build a profit margin into its loans.

• Most credit unions do not have prepayment penalties on mortgage loans and do not charge origination points, unlike commercial lenders.

• Credit unions have more flexibility of approving loan applications.

• Credit unions can charge lower rates than conventional lenders because they are nonprofit institutions.

• Credit unions can save hundreds in closing costs by eliminating or decreasing many of the usual fees.

Service, low closing costs and mortgage rates are the differentiating factor among lenders, not to mention trust. Credit unions have a stable, reputable status and are not marred by the economic mess created by commercial lenders. A strong point when deciding whom you should submit an application.

These loans, which are available to anyone who meets a credit union’s membership terms, are not typically marketed, yet they have grown increasingly attractive during the last year.

Time to Compare Lenders

Many people will tell you they’re too busy to switch banks or comparison shop. Well, start with a quick call to your current financial institution and check to see if they are willing to decrease some fees and sweeten the deal for you. We are dealing in tough times and with the current economic demise, banks should be on the lookout to keeping customers happy. If they are unwilling to budge, it’s clearly time to shop around.

You can search for credit unions in your region at asmarterchoice.org, the website run by the industry’s trade association.

5 Reasons To Buy A Home Now

With prices declining in many markets, it now makes the cost of buying a home a better financial deal than renting. However, many potential homebuyers are transfixed on the market, wanting to believe prices will drop lower. The question is how low do you expect home prices to fall?

Now is the right time to buy and here are some great reasons to rush to your realtor now;

• Renting isn’t such a great deal. This is all about Economics 101: Demand for rentals the past few years has increased — a consequence of foreclosures and fewer existing renters making the decision to buy – and supply hasn’t kept up as there has been little new construction since the financial crisis hit. That’s pushing up rental prices.

• Mortgage rates are at historic lows. Right now the average mortgage rate hovers around 4.6 percent on a 30-year fixed rate mortgage which is beyond dirt cheap. While many mortgage lenders advertise fire-sale cheap rates that are lower than four percent, the fees almost double to that of the averaged rate loans.

• There is far less competition for buyers. There may be plenty of potential homebuyers at open houses these days, but the anemic sales pace is proof that there are fewer serious buyers looking to make a deal. That makes it less likely you’ll find yourself in a bidding war today. It also means you can negotiate more effectively with eager sellers. Wait to dive in and you could find yourself in a more crowded pool of buyers.

• Qualifying for a mortgage is likely to get harder, not easier. The goal of Washington in the coming years is to shift more of the mortgage market out of the hands of Fannie Mae and Freddie Mac and into the hands of the private market. It is admittedly too early to know when and what that transition might look like. But whether the government backing is scaled down or disappears all together, that means higher borrowing costs. Moreover, there’s already a new federal regulation being considered that would require banks that want to keep selling 100 percent of their mortgages to Fannie and Freddie to hold borrowers to tougher lending standards.

Its common sense that potential homebuyers want the best price possible but the market is at the lowest it’s been in over 30 years. Wait much longer and you may be spending hundreds more on a monthly mortgage loan.