Breathe Easy - Clean Your Ducts

Here, in Wisconsin, summer is all too fleeting. October is just around the corner, and the cool, crisp air of autumn is soon to follow. It won’t be long before we seal up our homes and settle in for the long winter ahead.

Since many of us will soon forego fresh air for forced air, it’s important for those of us living with air ducts in our homes to have them inspected and cleaned. Improving your indoor air quality can go a long way toward improving your overall health. If you’re not breathing well, you’re not living well.

It’s recommended that air duct systems be cleaned no less than once every two years. If you smoke, suffer from allergies, have pets that shed hair or dander, or live in a high-traffic, high-pollution, or high-dust area, it’s recommended that you have your HVAC (heating ventilation air condition) system cleaned annually.

It’s also a good idea to have your system inspected and cleaned if you’ve just purchased a previously-occupied home, or your home is newly constructed or recently remodeled. Construction creates a great deal of dust, and it’s a bit unseemly to think of the dust, hair, & dander from previous owners being blown throughout your home and becoming the air you breathe.

When researching air duct cleaning companies, be sure to compare their scope of services. Some companies only clean the ductwork, which is only part of the system.

Pay attention to certifications, accreditations, and affiliations. You should be able to learn a great deal from their websites, regarding experience, training, services, processes, and answers to frequently asked questions (FAQs).

Many companies provide you with the opportunity to see what your ducts look like before and after cleaning, which may be an alarming, but helpful, visual. Service quotes should be free, and are typically available via phone or email.

Be sure to shop around, and ask friends, family, or co-workers for possible referrals. Here are a few links to various area service providers, to help get you started:

DUCTZ
Dirty Ducts Cleaning
SERVPRO
Stanley Steemer

Poor Choices Can Blow a Deal

Buying a home is a personal choice, but it’s also a significant business decision - and buyers are wise to remember this. That is why it is critical to make good choices when selecting the key service providers involved in the transaction – the lender/mortgage loan officer, real estate agent, and home inspector. A poor choice in any of these three service areas can actually blow a deal for the buyer.

Timeliness, organization, effective communication, knowledge, and accessibility are key traits to seek in each of these professionals. If you were responsible for the hiring decisions at your company, which candidates would you bring back for a second interview? Consider the fact that you are actually the CEO of your own life, and your hiring decisions could impact the quality of your life for many years to come.

No purchase can hope to take place without the necessary funds. Make sure you have chosen a reputable lender, and not some institution that no one has ever heard of. Sellers are very wary these days when it comes to lenders, and rightly so. There are simply too many devastating stories of buyers and sellers sitting across the closing table from one another for hours, waiting for the funds to arrive via wire. Countless transactions have been delayed by days or weeks when one lender cannot close the deal and a new lender must be found to eventually save the day. Imagine that scenario as a first-time buyer when your apartment has new tenants arriving, and you’re now without a place to live - with all of your belongings loaded on a rental truck.

In addition to selecting a credible lender, it’s vital to receive a pre-approval letter. A pre-qualification letter is meaningless to sellers. They want to know that a lender has actually pre-approved you for financing. Offers with pre-approvals will likely be given much stronger consideration, and some sellers won’t even look at an offer without a pre-approval letter.

Be sure to receive a GFE (Good Faith Estimate) from your lender for all fees associated with the lender, loan program, and closing costs. You will want to have this information handy as you negotiate an Offer to Purchase. You must be aware of the money you will need to bring with you to closing, in the event that a seller does not agree to pay your closing costs, and you still want to proceed with the offer.

Dates and deadlines in an Offer to Purchase are critical, where time is often of the essence. The professionals you choose must be accessible, organized, and timely in the delivery of their services. Missing deadlines or waiting until the last minute to satisfy contingencies can have dire consequences. Remember that an Offer to Purchase is a legally binding document, and not to be taken lightly.

It is not your job to know the ins and outs of loan programs and financing options. It is not your job to know the laws that govern real estate transactions in your state. Nor is it your job to know if the property you wish to purchase is safe, structurally sound, or worth its listing price. It is your job to select the professionals who do carry those responsibilities and the proper credentials. Take time to research your options. Ask friends, family members, and trusted colleagues for referrals. Attend open houses or research real estate companies and agents online (see my post, “All Agents are NOT Created Equal.”)

Do your best to make wise decisions, but don’t beat yourself up if you wind up making a poor choice. A worse choice is to sit back and do nothing once you recognize the problem. Always remember that if you made the hiring decision, then you can also make the firing decision. You can choose a different lender or loan officer. Due to complexities associated with real estate law, you may need to take an extra step with switching agents if:
1. You signed a Buyer Agency Agreement,
2. You’re in the middle of a transaction, or
3. You plan to write an offer on a property that was shown to you by that agent.
If any of these situations apply to you, contact the agent’s broker, who will reassign and oversee another agent who will better meet your needs.

Relocating? Pack it Up!

With the economy being what it is today, competition for employment is fierce. More people are determining they’re willing to move wherever they can find a decent job and attempt to regain some stability.

If the new employer offers a relocation package, it’s typical that moving expenses are paid, but the movers only insure what they themselves pack. For homeowners who now need to sell their homes to relocate, they may be hesitant to box up anything themselves. This may be fine for décor and wardrobe minimalists, but few homeowners fall into that category.

So, if this scenario applies to you, congratulations on your new opportunity! Now go get some boxes.

It’s wonderful that someone else is going to do all of the packing and moving for you, but you likely still have some work to do to get your home photo-perfect and show-ready. If you don’t take the time to prepare your home for public viewing, you could be cheating yourself out of thousands of dollars of sale proceeds. It’s also unfair to expect your real estate agent to put all sorts of time and money into marketing efforts when you haven’t done your job as homeowner first.

Take a good look around your home, paying particular attention to areas that attract clutter – and that could be anywhere. Begin to edit furnishings, décor, collections, pantry items, and overstuffed cabinets and closets. Be careful not to over-edit – you don’t want to pack up items you’ll need to have accessible until you move, and you don’t want your home to seem cold or completely devoid of personality. You just want buyers to see the great space they’ll be buying, and that’s easier to see with fewer items to distract them.

Now, there’s no need to pay for boxes, since the movers will surely come with their own packing materials. Think back to your years of apartment dwelling – and moving. Call grocery stores and office supply stores to find out when they receive their shipments, and tell them you’d like to take some boxes off their hands. You just need to be timely in your pick-up, or else they’ll have broken down the boxes already.

Since the movers will need to properly pack the items you’re temporarily placing in mismatched boxes, you don’t need to be overly careful with your packing techniques. Begin with items that aren’t fragile – clothing, seasonal shoes/boots/coats, towels, blankets, linens, metal baking pans and cookware that aren’t often used, games, books, DVDs, CDs, toys, etc. Extra furniture might be shuffled to a less furnished room or storage space.

When it comes to breakables, consider moving them to another space that you’ve managed to empty of non-breakables – like a cabinet, closet, or even inside a piece of furniture that buyers won’t look in because it’s your personal property. You get the idea.

In this housing market, you can’t leave success to chance – and you can’t place all of the responsibility on the shoulders of your real estate agent. So, get crackin’ and get packin’!

The Selling Point of Seasonal Photos

Spring has finally sprung in southern Wisconsin. Ask any allergy sufferer, and they’ll tell you it’s officially spring.

Now that the grass is actually green, the trees are budding, and tulips and other such perennials are in bloom, homeowners should be sure to take photos of their landscaping, as well as nice shots of the front and back of their home (be sure to get plenty of yard in the picture). This should be done in spring, summer, and fall – even winter, if your property looks particularly lovely covered in snow and ice.

Keep digital files of these photos, updating them every couple of years or when you’ve done something new to the landscaping or exterior of the property – whichever comes first. This will allow you to be prepared with excellent outside photos, no matter what time of year you eventually list your house for sale.

Those who have had to list their homes in winter can attest to the need for such photos. It’s no accident that most homes are listed for sale during the spring and summer months – at least in colder climates. Properties simply look more attractive when the landscaping is leafy, colorful and vibrant, and the home itself isn’t surrounded by several feet of snow.

But if you’re ever in the position of having to sell your home during the winter months, include spring and summer photos in your online listing. Also display these photos in your home for buyers to take a look at during a showing. Place them in a special photo album or spread them out on the kitchen counter or dining room table – a place where they can’t be missed.

Buyers can’t visualize how beautiful a property is when it’s covered in snow - unless they're buying a ski chalet. Give them every opportunity to view your property in its best light – or season.

Negotiating the Deal

In southern Wisconsin, as in much of the country, we are experiencing a buyer’s market. We simply have far more homes for sale than we have buyers buying.

We’ve seen housing prices fall, inventories remain high, interest rates drop to historic lows, and incentives offered to first-time home buyers to encourage them to buy.

Naturally, buyers are feeling confident when they enter into negotiations on a property. They’ve all heard stories from friends or family members that they can get properties for a steal. Play hardball, and the seller will break under the pressure. What else is he to do if he needs to sell his home?

Many buyers believe they can and should submit a lowball offer in order to secure the best deal from a seller. Here are some reasons why that’s not the best strategy:

1. Current home prices already reflect the drop in housing values. Buyers should ask their agents for a brief market analysis, showing sales and active listings for comparable properties in the area. They should also seek the sales history on the property they wish to purchase. This preparation will help them determine the appropriate price to offer for the property.

2. When presented with a lowball offer, sellers will often counter back higher than they would have if the offer was more reasonable. In a proper negotiation, both parties benefit. Anger is never good for a negotiation, so buyers are wise to remember that they are actually dealing with human beings on the other end of the transaction.

3. Price is not the only factor to consider when writing an offer. What else is the buyer asking for? Closing costs? Appliances? A home warranty? An allowance for new paint or carpeting? Is the buyer hoping to ask the seller to leave behind some of the personal property, such as the pool table, riding lawn mower, or outdoor furniture? Buyers are more likely to succeed in securing a lower price if they are not asking for more than that from the seller, AND if they bring something of value to the table: a quick closing date, pre-approved financing with a reputable lender, an amount of earnest money appropriate for the value of the property, and so forth.

4. REALLY IMPORTANT: Negotiations do not simply end with an accepted offer. Suppose the property inspections reveal that some major repairs are needed. Going back to the seller who was lowballed, to ask that he foot the bill for the repairs, may result in a lost deal. Yes, the seller will need to disclose any “defects” to future buyers that were found during the initial inspection. But that may not deter a seller from walking away from a deal that left him unhappy from the start. He may opt to make the necessary repairs and hold out for a better offer from a more reasonable buyer.

5. It often pays to be nice. Sellers are usually kind enough to provide buyers with information about the community, neighborhood, and unique workings of the property. This can be very valuable information to have – and is easy to obtain if the seller feels favorably toward the buyer. Another challenge that occurs more often than one might think: the closing gets postponed at the last minute, and now the buyers are homeless, with a truck full of belongings, and new appliances to be delivered that are already enroute. There are remedies to such situations, for which the seller may play a significant role. Power can shift in a transaction at any time.

It’s important to keep in mind that home sellers are neighbors. They are members of a community to which buyers hope to belong. Great deals can and should be negotiated where both parties walk away winners.

Should you "Pool" your Resources?

For many southern communities throughout the country, a swimming pool in the backyard makes sense. The pool and all its trimmings can be enjoyed year-round. And, in some neighborhoods, it can be difficult to sell a home without one. But travel further north and people begin to ponder the wisdom of adding swimming pools or spas/hot tubs to their properties. Are they a wise investment in colder climates? Well, ask yourself a few questions – and be honest:

1. How many days per week will your pool or spa actually be used?
2. How many months of the year will your pool or spa be eligible for use?
3. Will the benefits of the pool or spa outweigh the time and financial cost of maintenance, added insurance, and safety measures that may be required, such as a gated fence?
4. How much of your yard will be consumed by the pool or spa?
5. How long do you plan to live in your home?
6. How important will it be for you to sell your home quickly when the time comes?

A swimming pool on a property can be a strong deterrent for buyers in Wisconsin, as most do not want to deal with the time and costs associated with maintenance. This is because we have too few months when we can actually enjoy it. And if we get a cold or rainy summer, that narrows the enjoyment window even further, but does not diminish the maintenance window.

Still, if you know you’re going to be in your home for at least 7-10 years, and/or swimming is an important part of your life, then go for it. Be aware of the challenges you might face when you wish to sell, but you should feel comfortable making your home what you want and need it to be.

If much of your yard would be consumed by a pool, then consider installing an above-ground pool, as opposed to an in-ground pool. That way, when you prepare to sell your property, you can even offer buyers the option of removing the pool, if they wish.

Spas are far less of a deterrent for buyers in Wisconsin for this very reason – they can be removed fairly easily. They can also be used throughout much of the year – whether kept inside or out. Safety is of little concern, since many come complete with a cover to keep curious little children out. Plus, they serve the added purpose of easing the ache of sore muscles – which can certainly occur year-round.

If you decide to take the plunge, do plenty of research online first. There is such a variety of styles and amenities available when it comes to pools and spas. Set your budget and stick to it, and, as always, have a plan. Now is the time to dive in if you hope to be splashing around your own backyard this summer. Enjoy!

Backyard Bliss

Here, in Wisconsin, we’ve got colder temperatures for at least 6 months of the year – and I do mean cold. So, when the weather finally warms up, we like to spend as much time outdoors as possible – working, relaxing, entertaining, playing. And that’s why outdoor living space is just as important in colder climates as it is in warmer climates. We pack a whole year’s worth of enjoyment into a handful of fleeting months. And with the current state of our economy, it makes good fiscal sense to invest some vacation money quite literally in our own backyards.

So what does that mean – “outdoor living space?” Well, what began as a simple deck or patio, is taken a bit further. Main living areas that you find inside your home – such as a kitchen, dining area, and living room - are given their own distinct spaces outside. Just as you use design and décor to create a certain ambiance in your home, extend that sense of comfort, beauty, and utility, to your backyard. You’re not just a home owner, you’re a property owner – and that includes your backyard. It, too, is part of your investment, and becomes all the more valuable when you add value to it.

Outdoor living spaces can be simple or elaborate, small or grand, sophisticated or casual. One thing they should never be is boring. With so many options for decks, patios, plants, fencing, privacy screens, pergolas, arbors, gazebos, furnishings, lighting, and more, your backyard can be transformed from boring to blissful.

Now, whenever you consider a home improvement project, keep in mind the range of property values within your neighborhood. You may have elaborate plans, but a modest neighborhood may not allow you to see big returns on your investment when you eventually prepare to sell. If you have questions or concerns about over-improving your property, consult with an experienced real estate agent. We can give you an idea of your property’s current market value, both with and without your planned improvements.

And remember, you don’t have to complete every project for your backyard dreamscape this year. Create your overall plan and take steps to achieve it, one mini-project at a time.

Curb Appeal is Real

You know them when you see them. Driving around any neighborhood, there’s always at least one property that stands out from the others. Perfect lawn, great landscaping, fantastic looking home… You wonder if the inside looks as amazing as the outside. Well, sometimes it does and sometimes it doesn’t, but the point is that you’re curious about the inside because of the outside. And that could help you attract buyers, when it comes time to sell your home.

So, it’s not just a gimmick. Curb appeal is real. HGTV introduced us to the concept years ago, but people seem slow to catch on. Perhaps we’re too busy to achieve all of our property enhancement goals. Or perhaps we’re intimidated by trying to wrestle Mother Nature in full view of our neighbors. Money is often a factor, but it needn’t be. Much improvement can be made with little financial investment.

As with any home improvement project, it’s best to have a plan. But first, begin by writing down general ideas about how you want your property to appear from the outside.

Would you like to see more lighting?
More flowers, but fewer bushes?
Or different bushes – fewer evergreens?
Do you envision trees in your yard?
Does the exterior of your home need painting?
Perhaps some shutters or flower boxes to add some charm?
What about the front entrance? How can it be more inviting?
New door, new hardware, new lighting, mailbox, or address numbers?
How could you liven up the front walkway?
How does the garage door look?
Could your driveway use some work?

Sure, your list could grow to be very long, but that’s okay. Just pace yourself. You don’t have to do everything at once, and not all of your projects will cost you money.

Pruning trees, trimming bushes, pulling weeds, edging lawns, cleaning up plant beds, raking up remaining leaves – yard clean-up can be a workout, but it’s free and it makes a big difference. If you’re looking to create new plant beds or enhance the ones you have, most communities offer free mulch/wood chips to anyone willing to haul them away. Check with your community’s Public Works Department to see if and when this is available where you live. And check with your community’s sanitation department to see when they will haul away yard waste in your neighborhood. Communities typically offer this service twice a year – in spring and fall.

I always say it’s best to know your limitations. Don’t take on major projects without seeking advice or help from an experienced friend or professional. And don’t start many projects at once, or you could quickly become overwhelmed and lose your enthusiasm. If you don’t have a green thumb, ask your local greenhouse about plants, flowers, and bushes that would be best for your skill set, as well as your yard’s conditions. Is yours a sunny yard, or is there lots of shade? Sandy soil, or is it more like clay?

Also, seek out landscaping elements other than plants, such as wood, brick, stone, or decorative concrete. Pergolas, arbors, gates, and fencing can be beautiful additions to your yard. Landscaping is not just about plants.

If instant gratification is what you need to keep you motivated, you’re in good company. Here are many improvements you can complete in just one day.

So go ahead, get started, and give everyone something to slow down and admire as they drive past your home.

Don’t Ignore Décor

Make no mistake - what makes a house a home is its décor. The paint colors, flooring, lighting, window treatments, and furnishings – collectively, they transform a space, giving it character and life. A house is practical. A home is emotional. That’s why selling a home can be so challenging for a homeowner, and it’s typically how buyers decide to write an offer on a property.

So, buyers – do not spend all of your money on your mortgage. Too often, I’ve seen nice properties overshadowed by their shabby furnishings. Décor is part of the investment you make in buying property – and most of it you get to take with you. Do not underestimate what good décor will do for you when you eventually seek to sell your home.

First-time home buyers, you have a great opportunity to invest in good décor, with the help of the $8000.00 tax credit you may enjoy this year. For a great way to stretch your dollar and purchase some fantastic furniture, seek out consignment shops in your area. The furniture is gently used – often looking brand new – and is substantially less expensive than what you’ll find at new furniture stores. Also check out garage sales, flea markets, and thrift stores for unique pieces that might simply need a little clean-up, a small repair, or a fresh coat of paint to bring them back to life. You could literally save yourself thousands of dollars, while infusing your home with great character.

Current homeowners, I know times are tough and money is tight, but there’s much you can do to improve your property – for little to no cost. Decluttering every space in your home will cost you nothing – and now is the best time to tackle that. Clothes, books, movies, games, lamps, furniture, artwork, knick knacks – if you no longer use it, need it, like it, or have space for it, get rid of it. Hold a garage sale to get money for what you can, and then give away the rest. Use the money from your sale to make additional improvements to your property.

Paint is one of the most inexpensive ways to make an enormous impact on your home – whether inside or out. And the beauty of paint is that you can always redo it if you have a change of heart about the color – and you won’t break the bank. Many paint manufacturers offer tools on their websites that allow you to experiment with color, so you have an idea of how various colors will look in your own home. Click here and here for examples.

A note of caution: the color you see on your computer monitor/screen may be different from the actual paint swatch at the store. Before making the leap to purchase, collect a variety of paint swatches at the store, and then return to the website on your computer for comparison. (Make sure it’s the same computer, as computer monitors vary too.)

If you’re planning to sell your home soon, complete as many "necessary" projects as you can before listing your property for sale. Take care of any peeling paint, loose stair railings, and any other repairs. Declutter the garage, closets, and rooms; pack up family photos and collectibles so they don’t distract buyers; give walls a fresh coat of paint if you haven’t painted for many years (use neutral tones – preferably warmer tones); thoroughly clean your home, inside and out; and tend to any yard work that could add to your home’s curb appeal. Furniture a little outdated? Consider slipcovers. They’re an inexpensive way to give old furniture a new look – and you can take them with you to your new home.

The more you do to prepare your home for sale, the greater your opportunity to sell sooner than someone who didn’t.

Homeowners, if you’re waiting for inspiration to strike before choosing a project, pick up a few magazines related to home décor, organization, and landscaping. You’ll find an abundance of ideas that will help spur you into action. It’s never too late to improve your home’s décor, and it’s never too soon to get started.

To Buy or Not to Buy

It’s not complicated. If you have employment, good credit, money saved, and a desire to own a home, the stars have aligned to make this the best moment to buy – particularly if you’re a first-time home buyer. Interest rates are at historic lows, home prices have fallen – so you’ll get more for your money, and there continue to be a wide variety of homes for sale.

Plus, the new stimulus plan provides a tax credit of up to $8000.00 for first-time home buyers - or those who haven’t owned a home in the last 3 years. Yes, you’re actually being offered money to buy a home NOW. This tax credit is only good for purchases of primary residences made between January 1, 2009, and December 1, 2009. So, the clock is ticking.

For a quick breakdown of the tax credit, click here. For more thorough information, click here.

Now then, if all you have is the desire to own a home, but you don’t have any money saved for a down payment, and you’re not sure what your credit looks like – or even if you know it’s poor – desire is still a very valid place to start.

Seek mortgage loan officer recommendations from people you trust, and then give them a call. See if they take the time to answer your initial questions, or if they just try to hurry you along. Of course, if you leave a message, and your call is not returned in a timely fashion, move on to someone else. The last thing you want is someone who is unavailable when you’re in the process of buying a home.

Once you decide on a loan officer, set up a time to meet in person, if possible. At that time, have a detailed conversation about what you need to do, financially, to meet your goal of home ownership. Leave the meeting with a clear plan of action.

It is more difficult to buy a home now than it was just a few years ago. Borrowers have to jump through higher hoops – but that’s a good thing. The improved measures for lending money are actually there to protect you, as well as the lender, investors, and the general public. After all, we’re still trying to swallow the multi-dimensional pill that caused the current housing crisis.

You may miss the boat for the tax credit, interest rates may increase, and fewer homes may be on the market when you’re ready to buy, but such is life. Buy when you’re ready to buy – when the stars align in your life, and it makes good sense to do so. Forget the Joneses. They’re presently facing foreclosure.

Open Houses - Still Worth Consideration

Open houses are not appropriate for all properties. They’re best used for homes that will attract a broader number of buyers in a given market. Today, they are increasingly being debated for their current value and relevance. As technology offers more online photos, virtual tours, and videos to millions of buyers at any hour, actual open houses are losing their original appeal.

Many real estate agents have lost their enthusiasm for them – especially if they’re standing around in homes for two hours, without any foot traffic.

A growing number of sellers are opting out of open houses. They’re aware that home sales rarely result from open houses in most areas, and are more of an opportunity for agents to meet prospective clients – be they buyers or future sellers.

Open houses also attract curious neighbors and looky-loos, who simply want to see inside the home or collect decorating ideas.

Open houses may soon follow print advertising as a largely extinct form of effectively marketing properties. Until then, here are some reasons to continue to hold them:

For sellers: Having agents host open houses gives them the opportunity to point out features and answer questions about the property. The more people who see your property, the better – be they actual buyers, neighbors, looky-loos, or other agents. You never know when even a looky-loo encounters someone for whom they realize your home may be perfect.

For buyers: If you haven’t selected an agent to represent you yet, open houses are a great way to observe and meet a variety of agents in what should be a low-pressure environment. Open houses allow you to quickly move through many properties of different price ranges to learn what you really get for the money. Photos, virtual tours, and video can only do so much. There is no substitute for seeing a property, a neighborhood, and an entire community with your own eyes.

For agents: Depending on the location, open houses continue to be an opportunity for you to get in front of buyers in a more relaxed setting. They allow you to answer questions buyers may have about the property, or about home buying, in general. You also have the chance to ask questions – to stay on top of what buyers are seeking. Meeting neighbors and looky-loos may provide you with some unique information about the area that would be helpful in your marketing efforts. The more we can interact with the public, the better our odds for achieving success in our business.

Questions Every Home Seller Should Ask

Now that you have done your homework (see my post, “All Agents are NOT Created Equal”), and you’re ready to schedule interviews with each of the agents you’d like to consider, what should you ask?

Agents who have been in the business for many years may suggest that you ask the following:

1. How long have you been an agent?
2. How many listings do you have?
3. How many sales did you close last year?
4. What’s your average sale time, from listing to close?
5. For what percentage of the list price did your listings sell?

On the surface, these seem like great questions – and the answers are not completely without merit, but they could be very misleading. Let’s review them for a moment:

1. Longevity in this business can be helpful if the agent has been very active AND has embraced the numerous changes that have taken place in the industry. Many seasoned agents are uncomfortable with technology and new forms of research and communication. This discomfort can be an enormous disadvantage for today’s buyers and sellers, where time is of the essence and online marketing is a must. Newer agents are entering the industry with an understanding of what is required to compete in today’s market. They are also fresh from other industries, coming into real estate with a variety of skills – and new energy – that may be just what your listing needs.

2. The number of listings an agent has may not indicate how well the agent performs. The current market and other factors determine how many buyers and sellers an agent is working with. Agents with fewer listings may be be working with more buyers, which could be an advantage for sellers seeking an agent. Those with fewer listings may also dedicate more time to marketing them. That's by no means a hard and fast rule. There are agents with many listings who do an excellent job of serving their clients because they have perfected their service and communication. Then there are others with many listings who may simply show up to list the properties and then collect the commissions, with little contact in between. Some clients are comfortable with this type of service - others are not.

3. The number of sales closed by an agent in a given year does not offer great insight either. In 2008, many agents had numerous deals fall through because buyers could not obtain financing – even when they had good credit. Our current housing climate is throwing seasoned agents for a loop, as much as the rookies.

4. Again, average sale time does not necessarily reflect the efforts and abilities of the agent. It does reflect the nature of the market, but it may also be impacted by the seller. If sellers are unrealistic about how their home should be priced, their home may sit on the market even longer. With all of the options buyers have today, they certainly don’t need to settle for an overpriced home. Moreover, lenders won’t lend a buyer more than the property is actually worth, in current market conditions.

5. The ratio of sales price to list price may or may not be helpful information. If you’re a buyer, you want the sale price to be as low as possible, and as a seller, you want that figure to be high. Also, is the agent figuring the ratio from the original list price, or the most recently reduced list price? Again, this figure is going to reflect what’s happening in the market. And while that is vital information, it’s not going to tell you if the agent is right for you.

So, what questions should you ask? What questions will help you compare the abilities and resources of the agents you wish to consider? Here’s a list that may offer you insight:

* Based on current market stats for your area, how long is it typically taking to sell homes like yours?
* How do they plan to attract buyers to your home? What marketing methods will they use?
* Where will your listing be presented online, for buyers to find it?
* Aside from the yard sign and placing the listing online, what other marketing do they do?
* Do they have any suggestions for how to make your home more salable?
* What do they expect from you, as a client?
* How will they communicate with you, and how often? (Will they use your preferred method of communication?)
* How will you be contacted about showings?
* How will you receive feedback about showings?
* What price do they recommend for your home? How have they arrived at that price? What research did they do?
* What is their commission for the services they (and their company) provide?
* Do they offer a written performance agreement? (This is VERY important.)

And consider these basics:
Do you like the agent’s presentation, communication skills, energy, and personality? Can you see yourself working with this person for at least the next 6 months or more?

If you first take the time to prepare – as I suggested in my last post, “All Agents are NOT Created Equal” – and then pause to interview your top choices, you can then feel comfortable leaving the final decision to your instincts. Information always leads to sharper instincts, which are needed now more than ever.

All Agents are NOT Created Equal

It’s a common misconception that all real estate agents are the same. People assume that since we all carry the same basic licensing credentials, that we all practice real estate the same way. Of course, that’s as silly as suggesting that everyone with a driver’s license practices the same driving habits. So, how might you go about choosing a real estate agent to help you with the all-important business decision of buying or selling a home?

Here are some tips on how to find the agent who’s right for you.

1. Spend at least one day attending open houses – not necessarily to see the houses, but to meet the agents hosting the open houses. This will give you a feel for the variety of agents out there, and how they present themselves. Get a business card from agents you wish to research further online.

2. Ask friends or colleagues for the names of agents they would recommend, and research them further online.

3. Select several real estate companies located where you’re looking to buy or sell, and review the company, as well as the agents on their websites.

Typically, agents share information about themselves and/or their expertise in the “About Me” section of their website. If they haven’t written anything about themselves, or it’s riddled with misspellings and grammatical errors – move on. You want an agent who makes use of all available resources, and cares enough to pay attention to detail. Legally binding contracts and the processes of buying or selling a home are all about the details.

If an agent passes the “About Me” test, take a look at the agent’s listings next. They should also appear on the agent's website. Pay particular attention to the photos and worded description of the properties. As a consumer, you know what marketing grabs you. Photos rank #1 in importance for marketing a property. How does the agent measure up?

As you narrow down the list of agents who peak your interest, be sure to look at their company’s website. This may tell you a lot about the resources the company offers its agents, as well as its customers.

Finally, select at least three agents to interview. Before contacting them to set up appointments to meet, make a list of everything that’s important to you in an agent. This will help keep you focused as you make your final decision. Also, write up a list of questions in advance, so you’re sure to have all of your questions answered.

It may seem like a lot of preparation, but keep in mind the financial significance of what you’re looking to buy or sell.

Should you Try to Sell your Home NOW?

You’re familiar with lagging markets and excessive inventory. You’re aware that many lenders aren’t lending, and buyers aren’t buying – either because they can’t get a loan, or because they’re sitting on the fence, waiting for the market to completely bottom out. And you also know that home prices have fallen substantially. Still, you wonder, is now a good time to sell your house?

On the surface, one would have to say no. And that would be true if you can afford your home and you do not need to move for any reason.

But there are reasons to sell a home, no matter the market conditions:

* You can no longer afford it.
* You are relocating for business or personal reasons
* You’re getting a divorce, and selling your primary residence is part of the settlement agreement.
* Death
* You’ve completely outgrown your home, and you’re bursting at the seams
* You’re combining households, and you need to find a new home that meets everyone’s needs

And you can’t underestimate the power of “want to.” It’s not always need that drives us. Want is also a good motivator. It can signify a decisive change of course, and we’re often willing to make the necessary sacrifices for it.

So, if you can stay put, then do so for the time being. Just ride out this wave, and the market will eventually turn around. It may not return to what it was in its heyday, but that may be best. We cannot forget the reckless complacency that led us to this moment. A balanced market, as opposed to one that heavily favors buyers or favors sellers, is a healthy market.

But, if you need or want to move, be realistic about your home’s location, condition, and features, which all play a factor in the listing price. Consider your competition, because you likely have plenty of it. Anticipate that your home’s actual market value will be less than what you think it should be. And be prepared to both wait and move quickly, when the time comes. But above all else, remain focused on your goal. Do not lose sight of the reason why you’re seeking to sell at this challenging time. Allow that reason to guide your efforts toward a successful sale.

Home Inspection: A Guide for Active Homeowners

So, you want to prioritize home repairs this year, but don’t know where to begin. If you’ve recently purchased your home, chances are good that you had a professional home inspection completed prior to purchase. You should have received a written inspection report at that time, which would specifically note the repair recommendations for your home. If you cannot locate the report, contact either the home inspector or your real estate agent for a copy.

Many buyers simply file away the inspection report after receiving it, but it is meant to be an active resource for homeowners. If you don’t take action and repair certain items mentioned in the report, those same items could become obstacles for you when you later try to sell your home. If neglected, some smaller repairs could also become bigger fixes. And bigger fixes often come with bigger price tags. So, it’s best to keep your home inspection report handy as a reference guide for repairs.

If you’ve owned your home for many years, you may never have had a professional home inspection completed. Only in more recent years have home inspections become a standard practice for buyers, prior to purchase. Whether preparing to sell, or just trying to keep up with maintenance needs, it’s worthwhile for current homeowners to consider a professional inspection of their property.

In south central Wisconsin, home inspections typically run between $250-300.00 and are 2 to 3 hours long. Properties with greater square footage may run higher and longer. Seek service quotes ahead of time, so you’ll know what you will be charged. Payment is generally due immediately, once the inspection is completed.

For reputable home inspectors in your area, seek a variety of referrals from friends/family/colleagues, mortgage lenders, and/or real estate agents. Home inspector associations can also be a good source, but they may not always have members in your specific area.

Home Improvement Starts Now

It is now February, and perhaps some of your resolutions for the new year have already begun to wane. I think it’s tougher for those of us who live in colder climates, where winter blues can really take hold, and spring seems to ignore our daily invitations. But it will eventually arrive, as it does each year, and the question is, will you be prepared?

Now is the perfect time to dream, prepare, and plan. Make a list of ALL of the projects you'd like to complete while you own your home. Then, select a few that are reasonable to finish this year. That way, you'll have a list of both long and short-term goals.

Too often I meet homeowners who tell me about the great plans they had for their home when they bought it. Unfortunately, they never got around to them – so, now they’re just going to sell their home as it is, complete with orange laminate countertops and wall-to-wall carpeting in the kitchen. I also meet homeowners who finally decide to complete their list of projects just as they plan to sell their home. They always kick themselves for not tackling the projects sooner, so they could have enjoyed what the next owner surely will. If you simply take the time to plan, you will avoid these homeowner missteps.

When prioritizing projects, be sure to consider the following:

Financial budget
Repairs needed
Degree of difficulty
Time commitment
Resalability

Your financial budget will always dictate what you can ultimately accomplish. When reviewing your project list, take time to research the costs involved with each one. It always pays to shop around and price compare – much of which can be done online. If you think a project will require professional help, now is the time to get competing quotes from a variety of professionals, as this is the slow season for many of them. Work quotes are often only good for 30 days - but you’re just looking to gather ballpark estimates, so you can plan your projects appropriately.

Home repairs generally aren’t glamorous, but they are necessary. If your home is not structurally or mechanically sound, there is little point in making cosmetic changes, as it will be money down the drain. Many repairs are simple fixes. If you’re not handy – and it’s best to admit if you’re not – you likely have a handy friend or family member who would be happy to show you how to make the repairs. If you’re new in town, and friends and family are far away, contact your real estate agent. Your agent will usually be able to refer you to reputable area professionals, from whom you can obtain competing quotes for service.

Determine the degree of difficulty involved in a project. If you’re planning an entire kitchen remodel while you’re living in the home, your plans may also need to include a mock kitchen setup elsewhere in the house or garage. You’re also likely to spend more money on restaurants and take-out during the remodel period, so you’ll want to budget that in as well. Again, decide what elements of a project you may tackle yourself, and at what point you’ll bring in a professional, if need be. Know your limitations. It's always good to learn new skills, but seek advice from professionals when tackling something new. We all like to save money, but certain mistakes could cost you dearly. Also, a more complex project is more likely to unearth the unexpected. So, pad your budget and the timeframe accordingly.

Try to assess the time commitment involved with each project. It’s amazing what can be accomplished in just one afternoon. When scheduling your projects, start by tackling something that can be completed in one day, or one weekend, that will also have great impact. Do not dismiss the motivating reward of instant gratification. Decluttering your home or garage, or adding landscaping to enhance your home's curb appeal, will inspire you to keep going.

It's also important to consider how projects will add value to your home, increasing its resalability. Your home must absolutely work for you, since you own it. But someday you will want to sell it, and it would be nice to see at least a reasonable return on your investment. If your home has characteristics that will appeal to a broader base of buyers, you may be more likely to move on when you want or need to – instead of waiting and waiting for your house to finally sell.

Once you've selected your projects for the year, write them on a calendar that is always visible in your home. If certain projects require several steps, schedule each step on a specific date, so you stay on track. Also, post your list of home improvement goals in a prominent place as a constant reminder. But now is the time to start. Dream, prepare, plan…achieve.