Tips for Pricing a Home For Sale

When we are selling our homes, we want it to get sold in the shortest possible time. A house sitting too long on the market will never do us any good. It will also hinder us from moving on with our lives. Pricing it right attracts people’s attention who are seriously looking to buy a home. Attracting attention moves you one step closer to receiving offers from interested buyers. Here are tips for pricing a home for sale. 

Get your home appraised 

Getting your home appraised is the only way to get an impartial expert opinion. It lets you know the current market value of your home. The appraiser will tell you how he or she came up with the conclusion and the factors that affected your home’s value. You can also ask the appraiser for tips on what you can still do to potentially increase its value. Use the appraisal report to set an attractive asking price for your home. 

Look at comparable listings 

This tip means hiring an agent and asking him or her to pull in listings for similar homes. The two of you should work together to study the figures. Look at asking prices and compare them with the actual selling price. This should give you a clear idea of how much buyers are willing to pay for a similar property. Ask yourself what’s your lowest acceptable price. From there, set your asking price at least 10% to 15% higher to make way for possible negotiations once you receive offers from interested parties. 

Know the current market conditions 

You should know where the housing market is headed. Take a look at the trend for actual selling prices of similar houses. Are they going up or down steadily? Use this information to your advantage and price your home competitively. Knowing the current market conditions also means sizing up your competition. The real estate market is very competitive. How you set your asking price is what will make it stand out and get noticed.   

Put yourself in the buyer’s shoes 

When selling your home, think like a buyer. Put yourself in their shoes. What makes a home attractive price-wise? What would entice you to consider buying a home? Knowing their perspective lets you meet their needs. When you’re able to meet those needs, you increase the likelihood of getting relevant offers and get your home sold quicker than other homes currently on the market. 

Less is more 

Price your home on the lower end of the pricing range. Buyers will first take a look at properties priced the lowest for a particular kind of home. When multiple buyers make an offer at the same time, this creates a bidding war. You will end up closing a deal with the actual selling price higher than your initial asking price.   

What to Expect After Putting Your House on a Market

Selling your house is not as easy as it appears to be. A lot of work needs to be done before you decide to sell your house. The whole process of trying to sell your house is an emotional roller coaster. There are times where you’ll feel good when people are asking or feeling hopeless or desperate when deals fall apart. You must be prepared for the challenges that may come your way. Here’s what to expect after putting your house on the market. 

Putting up the “For Sale” sign 

This is one of the obvious signs that let people know that your house is for sale. Whether you signed up with an agent or selling it yourself, the “For Sale” sign must be placed in front of your house. That sign will let everyone who sees it know the contact details of the owner, agent, or brokerage firm responsible for selling the property. 

Showing your home to strangers 

Interested parties will want to check and see your property before deciding. This means holding an open house or accommodating home viewing visits. The more people who visit your property, the higher your chances of receiving relevant offers. Showing your home is the best way for people to appreciate your property firsthand. The kind of preparations you took will play a major role that will translate to the number of interested parties who will want to buy your property. 

Home Inspections and Appraisals 

Home Inspection visits are to ensure that prospective buyers know the true state of the house. If there are any issues that need costly repairs and the kind of maintenance needed. , on the other hand, lets the respective lenders of the interested parties know if the home value is worth the risk relative to the amount being financed. 

Back and forth negotiations 

It is to be expected that interested parties will try to negotiate with your asking price. They want to save as much money as possible from purchasing your house. On the other end, you’ll also want to get the best deal for your property. As a result, expect to be in constant contact with your interested buyers until an agreement is reached. The thing to consider in negotiations is knowing how low you can agree to sell your house for and still make a sizeable profit. 

Closing   

Once both parties have reached an agreement and the deal is finalized, it’s time for the closing process to take place. This is where both parties assume their new roles. The seller gets paid for the amount of the property. If there are agents, they get paid as well. The successful buyer is handed over the keys and documents as they just became the new and rightful owner of the said property.        

How to Prepare for a Home Inspection When Selling Your House

Passing a home inspection is very important to close a sale on the price that you like. A home inspection is your way of giving an assurance to the buyer that your home is liveable and its value is worth the price that you are asking for. On the buyer’s side, if he is not happy with the result of the inspection, he can withdraw his money deposit, or reopen negotiations and demand for a price negotiation. 

Best realtors in Denver know that passing a home inspection is very important. But what exactly do home inspectors are looking for? Check out these areas that your home inspector will most likely not miss: 

Grounds: A home inspector can check for standing water, the direction of roots from big trees, the condition of trees and shrubs that can affect the ground. 

Structure: Is the foundation still strong? Are there cracks in them? 

Roof: A home inspector will most likely check for defects in gutters and shingles, chimneys and skylights. 

Exterior: Be aware of the cracked paints; molds; cracks in the wall; mold formation; clearance between siding and earth. 

Windows and doors: damaged glass; hard-to-close doors and windows; noisy doors; doors that don’t close or get locked. 

Interior: Insulation; temperature control equipment; lighting. 

Kitchen: Leaks under the sink; faucets are working; cabinets are in good condition; the working table is fine. 

Plumbing: Drains are unclogged; water flows properly under the right temperature. 

Electrical: intact layout; wires are coated; electrical panels are still working; switches and outlets working properly. 

How to prepare for a home inspection: 

Clean and de-clutter your home: Make sure every corner is clean. Keep unnecessary materials inside a storage room. Pack your personal things and remove any furniture or an appliance that no longer serve their purpose. 

Ready important documents:  Inspectors might look for the documentation of all the repairs you’ve done to the house. This might include a contract with the repair company or proof of service payment for the repairman. They can also ask for home insurance if you have so ready it as well. 

Provide complete access to all parts of the house. Make sure that all doors are open. Don’t act as if you are hiding something.  

Get a pre-inspection and check how the actual inspection will be done. If there are negative findings during the pre-inspection, correct them right away before the real home inspector comes in. 

 

When can you say you are ready to buy your home?

Buying a home is a decision that must be thought of carefully. We just cannot decide in an instant that we want to own one because everybody else you know is buying their own homes. There should be a real need that must be met and questions to be answered before we decide to get one. So, When can you say that you are finally ready to buy your home? 

Your finances are in order 

A home is one of the biggest purchases we can ever make and that is one huge criterion you must meet before you can finally say that you are ready. This means that you must have enough money to pay for the down payment and that you can seriously commit to paying for a long-term loan without hurting your chosen lifestyle. Why all the fuss about getting your finances in order? When you can no longer afford to pay for your home loan, your lender will foreclose your property. You will get evicted from your own house and may lose all that money you have already paid. 

You’re ready to settle down and start your own family 

Time will come that we’ll find the person we want to grow old with and start our own family. It’s only natural that you’d want to live on your own. You can’t wait to raise your own kids. This is also the time that you’ve matured emotionally and you now have the financial capability to provide for your own family and invest for the long term. Nothing excites you more than seeing your kids play around the house you can call your own.     

You’re ready to face the challenges of home ownership 

Home ownership also means having to maintain your house from time to time to keep it from falling apart. A leaky roof, the heater or AC breaks down, or peeled wallpapers are all too common. These things will naturally happen as a result of wear and tear. It’s also a sign that the house has people living in it. Home ownership can also mean renovations or remodeling. As time goes by, our needs or preferences will change. We would love the idea of having a backyard pool or a separate garage that can also serve as our workshop or junior’s music room.   

You have decided that renting isn’t your best option  

You know that there’s absolutely no way you can get back the money you pay for rent to your landlord every month unless they’re your parents. You hate the idea that you can see no return on investment for a regular expense. You might as well take the risk, for you love the idea of one day owning a property and seeing a remarkable rise in its value over time. In short, renting isn’t your cup of tea. 

Getting Started in Residential Real Estate Investing

Residential real estate investing is a business activity that has waxed and waned in popularity dramatically over the last few years. Ironically, there always seem to be a lot of people jumping on board with investments like stock, gold, and real estate when the market’s going up, and jumping OFF the wagon and pursuing other activities once the market’s slumping. In a way that’s human nature, but it also means a lot of real estate investors are leaving money on the table.

By understanding the dynamics of your residential real estate investment marketplace, and acting in opposition to the rest of the market, you can often make more money, as long as you also stick to the real estate investing fundamentals. Real estate investing, whether you’re buying residential or commercial property, is not a get-rich-quick scenario. Sure you can make some fast cash flipping houses, if that’s your bag, but that is a full time business activity, not a passive, long term investment. The word “investment” implies that you are committed to the activity for the long haul. Often, that’s just what it takes to make money in real estate.

So, while the pundits are crying about the residential real estate market slump, and the speculators are wondering if this is the bottom, let us return to the fundamentals of residential real estate investing, and learn how to make money investing in real estate for the long term, in good markets, as well as bad.

A Return to the Fundamentals of Residential Real Estate Investing

When real estate is going up, up, up, investing in real estate can seem easy. All ships rise with a rising tide, and even if you’ve bought a deal with no equity and no cash flow, you can still make money if you’re in the right place at the right time.

However, it’s hard to time the market without a lot of research and market knowledge. A better strategy is to make sure you understand the four profit centers for residential real estate investing, and make sure your next residential real estate investment deal takes ALL of these into account.

Cash Flow – How much money does the residential income property bring in every month, after expenses are paid? This seems like it should be easy to calculate if you know how much the rental income is and how much the mortgage payment is. However, once you factor in everything else that goes into taking care of a rental property – things like vacancy, expenses, repairs and maintenance, advertising, bookkeeping, legal fees and the like, it begins to really add up. I like to use a factor of about 40% of the NOI to estimate my property expenses. I use 50% of the NOI as my ballpark goal for debt service. That leaves 10% of the NOI as profit to me. If the deal doesn’t meet those parameters, I am wary.

Appreciation – Having the property go up in value while you own it has historically been the most profitable part about owning real estate. However, as we’ve seen recently, real estate can also go DOWN in value, too. Leverage (your bank loan in this case) is a double-edged sword. It can increase your rate of return if you buy in an appreciating area, but it can also increase your rate of loss when your property goes down in value. For a realistic, low-risk property investment, plan to hold your residential real estate investment property for at least 5 years. This should give you the ability to weather the ups and downs in the market so you can see at a time when it makes sense, from a profit standpoint.

Colorado Springs Real Estate – Black Forest Homes

Find your dream house property in the Colorado Springs real estate area of the Black Forest. This part of the Colorado Springs real estate area is located in northern El Paso County. The Black Forest is a rural area that is situated on approximately 200,000 acres of land. The area is heavily wooded with mostly Ponderosa Pine trees. Black Forest is a mix of older homes and newer homes. The northwestern Black Forest real estate area includes: High Forest Ranch established 2001-2004, Walden established 1965-2002, Hawk Ridge established 1994-2000, Wissler Ranch established 1996-1999, and Elk Creek Ranch established 1980-1993.

Home Prices & Descriptions

Many of the homes for sale in the Black Forest real estate area are 5 acre house properties. There are mostly ranch style homes and 2 story homes. Some of the homes are custom homes and reflect “country style” living and some of the homes resemble houses that blend into “city living”. Many of these Colorado Springs real estate subdivisions include features such as: multiple decks and fireplaces, slate floors, barns and garages, granite counters, and theater rooms.

The minimum sales price for homes in 2008 in the Black Forest is $375,000. The minimum size Black Forest home for sale is 3,408 finished square feet. The minimum home for sale is 3 bedrooms, 3 baths, and a 3 car garage. The average sales price in 2008 is $650,000 and is 4,527 finished square feet. The average size home for sale is 4 bedrooms, 4 baths, and a 4 car garage. The maximum sales price in this Colorado Springs real estate area is $925,000 and is 5,646 finished square feet. The maximum size home for sale is 5 bedrooms, 5 baths, and a 5 car garage.

One of the newer communities in the Black Forest real estate area is the prestigious High Forest Ranch. The Ranch has rustic custom homes for sale. There are close to 20 different custom builders to choose from. Some of the homes in this Colorado Springs real estate area are situated on 2.5-5 acres of land. Residents in the High Forest Ranch area have community lodge at their disposal for those special occasions. The custom homes for sale in this Colorado Springs real estate area range from $499,900-$3.5 million. Amenities for some of the homes include: multiple fireplaces, slab granite counter tops, vaulted ceilings, great rooms, family room, master retreats, theater rooms, billiard rooms, wine rooms, travertine flooring, outdoor covered decks, and wet bars. Many of the Colorado Springs homes for sale in this area have extensive timber and stone features.