It's Showtime....Selling a Home is Theater

Deciding to put your house on the market? Recruiting an experienced Realtor will give you a leg up on the competition.  He or she will know where you need to spend money, and where you don’t. 

A good example is dealing with staging – the ‘show biz’ of the real estate world.  Complete staging is expensive and sometimes just is not practical.  A great listing agent will help you decide whether staging is imperative for your home – and if it is not, will offer some basic fixes to help you work with what you have. 

1. The first stage to set? The front yard. If the street view is untidy or the yard overgrown, you can lose your audience before the performance even begins. Of course, you will keep the lawn cut and fix the fences and gates – but also think creatively. People’s eyes are drawn to color, so adding a few cheerful annuals in pots and hanging baskets and placing them strategically can do wonders. If the front or garage doors are even a little bit chipped or flaking, sand and paint them. If trees or bushes are blocking sunlight from the front windows, take the trimming shears to them. All of this should take no longer than a weekend (and cost less than $150).

2. Buyers are not really just an audience: you want them to be participants. You want them to be able to visualize their furnishings in your space. Professional stagers have a simple arithmetic rule: 

Subtracting Furniture = Adding Space 

You add space by removing bulky, old or mismatched furniture. As your listing agent, I can help you walk through the house and decide what should stay and what should go into storage. Moving them can take about a weekend; cost will be the price of storage (or half of your garage – the next best option). Did I mention I do own a Mini Storage and if you list with me I will give you a deal on a unit.

3. Have you ever walked into an expertly staged home and seen dirty socks hanging out in the bedroom?  Didn’t think so.  Nothing is quite as off-putting as evidence of personal hygiene.  Kitchens, bedrooms and bathrooms need special hospital-clean sparkle. Do laundry frequently, and why not use a stagers’ extra? Light candles, set air fresheners -- and open windows wherever you can. But do avoid conflicting scents and products that add to much scent to a room. Buyers may wonder what you are covering.

The market is improving, but even so, similar homes are still competing for the same group of buyers. That’s why it is vital that you present your home as favorably as possible.  Staging decisions are a good example of how I, as a listing agent with comprehensive knowledge of our market, help you maximize your home's potential. It is one of the ways I work hard for you - - just part of the complete service I am proud to offer. If you are considering listing, call me anytime for a consultation!

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Tax Season is Over...or is it?

This is usually the time of year when home owners have gotten through tax season, heaved a sign of relief, and gone back to working on more important matters – like earning enough to make reducing taxes a goal worth pursuing. 

This year, the latter part of April may be a little different. Because this is an election year, tax matters are already being widely debated, and changes that could affect everyone are more possible than usual. I am bringing these topics up for discussion with the firm caveat that your own planning (including home buying decisions) should always be made after consultation with the financial experts you trust. Currently, federal and NC rules carry tax benefits that can greatly reduce a homeowner’s tax liability. They are very unlikely to be eliminated, but you may want to keep your ear tuned whenever you hear these topics under discussion, because seemingly minor changes can have major impacts.

Mortgage Interest and Points

Many renters found that they were able to use the standard deduction tables to simplify their federal filings.  Homeowners, on the other hand, were usually better off using itemized deductions because of the welcome mortgage interest deduction. Qualifying points paid to obtain a mortgage can also generally be deducted in the year they are paid.

IRA Penalties

Everyone with a standard Individual Retirement Account has heard about the penalties for withdrawing funds before retirement age. But currently there is an exception in some home buying situations. Generally, some IRA funds can be applied to home buying (or building) a first home without those tax penalties. The catch is that you can only withdraw up to $10,000 over your entire lifetime (not annually). Those with Roth IRAs may find additional tax advantages, too.

Real Estate Taxes

Qualifying property taxes can amount to sizeable deductions. If, in the home buying process, you reimbursed a seller for prepaid property taxes, that amount can qualify, too.

As in all financial planning, you should consult your accountant or other tax professional before making any important decisions.  And whenever buying or selling a property makes sense for your family, I’m standing by to answer all of your real estate questions.

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What Mortgage Applicants Needed to Know

For credit-worthy home buyers, getting a mortgage can be a walk in the park…or a nerve-wracking nightmare. The difference usually has to do with those ubiquitous Credit Reports – the ones TV commercials want to send you for free (at which point they will try to sell you not-so-free monthly services).

Anyone who has ever been stalled just as they reached the final stages of getting a mortgage or refinancing knows that getting mad doesn’t solve anything. But avoiding a last-minute problem is easy to do if you plan ahead. At least six months ahead. We like to assume that outfits as important as the reporting agencies know what they are doing, and in fact, they do. But they must start with the right information, which is where we come in. Nobody ever told us this in school, but it’s ultimately our responsibility to see that our credit reports are accurate.

 Whether or not you think you will getting a mortgage or refi soon, here are some plan-ahead, proactive steps everyone can and should take. Monitor for these common stumbling blocks:

1. Inaccurate information on the credit report. The first step is to read your reports. It is very important that you request those free copies of your credit reports and dispute any negative items that seem to have appeared for no reason. All three credit bureaus are required to remove inaccurate information, and they will do so, but only after you tell them to. My experience is that the agencies can be quick to respond…or as slow as molasses in January. In Antarctica. The only sure way to set things right is to allow them time to correct or to ask for more information.

2. Carrying too much revolving debt adds an unnecessary obstacle for getting a mortgage. A large part of a credit score is based on your revolving debt ratios. Revolving debt should be kept at or under 20%. If you are carrying more revolving debt than that, take this lead-time to whittle it down to a more loan-attracting ratio.

3. Taking on new debt less than six months before getting a mortgage: bad idea. If you are planning on getting a mortgage or refinance, avoid taking on other new debt in the six months leading up to your application. This solves any question over whether you will be able to pay the new debt as well as the mortgage amount. 

Time spent planning ahead and getting your financing in order will be well worth it once you find the home of your dreams and are ready to write an offer. Questions?  Contact me anytime you wish to discuss pre-qualifying for a home.

Surprise and Delight - Psychology of Selling

When you choose a Realtor who will be your home-marketing partner, you are choosing someone who will need to fill many roles: marketer, stager, tour guide, negotiator.  And don’t leave out another role -- psychology major!   

To build our kind of successful track record, a real estate agent needs to study and understand the way prospective buyers think about their search for a future home, how they are likely to react to different forms of presentation, and what builds or detracts from the value they assign to your property. It’s psychology, all right -- and it’s usually an integral part of any sales or marketing success.

A good example of how psychology can affect a real estate transaction comes from a study done at the University of Texas. There they have a Real Estate Finance and Development Program. A couple of years back, they began conducting some psychological studies, and one of them used sophisticated statistical tools and a huge sample of real estate transactions.

What’s fascinating is what they discovered about using the word “new.” Real estate agents who marketed homes with phrases like “new paint,” “new carpets,” and “new roof” wound up selling them for slightly less than those who did not!  

The study’s explanation is that, for homes that are not brand new, touting “all new” features seems to call attention to the fact that the items mentioned needed to be replaced. It unnecessarily opened the door to suspicions about what went wrong that made replacement necessary.

A more effective strategy is one that I frequently favor: under-promise and overdeliver. Rather than trying to convince buyers how “new” an older home is, do the renewal work, but don’t brag about it.  Then when potential buyers walk into the home, they will be impressed by the new carpets and fresh paint.  It’s the approach that uber-successful Zappos company founder Tony Hsieh calls “surprise and delight.” What is effective for leading a company and retaining customers can also be psychologically effective for selling a local home.

Sometimes when I show one of my listings that has a flaw, I will exaggerate its seriousness on the ride over to the home. Invariably the potential buyer will say its not that bad. Then they are very receptive to the remedy. Of course it is always better if the seller completes all repairs. Some sellers just don't have the necessary resources. 

As a Realtor in our community, I am constantly reminded of how important it is to never stop learning. If you are considering selling your home and are looking for cutting-edge marketing and advice, I hope you’ll contact me for a complimentary consultation.

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Its a Man's World (Great Waterfront Home)

Gary Barker Real Estate currently has listed the home that men have have always wanted. It has a beautiful concrete pier on the mighty Neuse River. The fishing is great, check out one days catch in the picture below.The river at this location is brackish. You can catch fresh and salt water species.  You get to experience serene sunsets to wind down from a busy day. The sun sets behind the Historic District of the City of New Bern across a mile wide river.

Have you ever wanted a place where you could launch your own small craft and jet skis? This home has its own boat launching ramp. Take your boat over to the city for dinner. There are several restaurants that have piers where you can dock. Fourth of July fire works are magnificent from this home.

Do you have a need for lots of storage, place to park boats or jet skis? This home has 1800 square of shop/garage space. Plenty of room for all of your hobbies and stuff. 

One thing a man needs to have a happy life is to have a happy wife. This home will definitively keep her content. It was built by the home owner. His day job is the manufacture of custom cabinets and  furniture. The quality of the home is outstanding. The great room area of the home is Timber Framed. The views from the loft overlooking the great room are wonderful.

Many of the rooms have custom built cabinets and furniture that will stay with the home. Almost every room in this home has a view of the river. Enjoy the river from a deck and a screened porch. If you what to see more of this home check out the Virtual Tour.

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Five Year High in Pending Home Sales

With more than 1,000,000 members the National Association of Realtors^® is the nation’s largest trade association. It’s no wonder that what it says carries a lot of weight. When a gargantuan outfit like NAR makes a prediction, its words may not always make headlines, but they do influence everyone whose job it is to forecast the future of the nation’s economic activity.

That’s why their most recent report dealing with pending home sales put smiles on many of those one million members’ faces.

“The spring home buying season looks bright,” according to Chief Economist Lawrence Yun. “If activity is sustained near present levels, existing-home sales will see their best performance in five years.”

Like all statistics, those he was describing can be looked at in more than one way. We know that some numbers are more reliable than others. This particular index is based on an unusually large sample: about 20% of all transactions for existing home sales. It’s a forward-looking indicator: in the past, it has signaled coming trends before they materialize. This index seldom produces a straight line of activity because of seasonal and monthly ups and downs, but this time a trend is evident that is “notably above the pattern from a year ago.”

 Our local home sales patterns are not invariably tied to national trends -- but they aren’t impervious to them, either.  So we are pleased when our own impression that the spring market is looking up is borne out by the experts who deal in the broader picture. “Based on all of the factors in the current market,” Yun went on, he expects to see “sales rising 7 to 10 percent in 2012.” 

Real estate is a famously local phenomenon, and although we keep an eye on the national and state markets, our real attention is always centered right here in town. If you have questions about your own real estate outlook, call me anytime for a consultation focused on your neighborhood. 

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Being Smart About Maxing A Home’s Value

When it comes time to put their home on the market, the Number One topic area sellers focus on is local home prices:  home prices historically, home prices this year, projected home prices in the future. What many sellers don’t truly realize is that they have more control over the price their home fetches than they may think. 

Smart application of remodeling dollars to maximize a property’s salability is the earliest and most important action a homeowner can take. If you plan to remain in your home for the foreseeable future, lifestyle and personal preference issues will rightly get your attention. But if a move is on your planning horizon, remodeling decisions should be hard-eyed business decisions. In my experience, there are three rooms that buyers are particularly interested in – and homeowners bent on raising their own local home prices should share that interest!

Kitchens can drastically raise or lower home prices.  Since kitchens have evolved into the major social hubs of American homes, increasing its size can be superbly cost-effective. If there is a possibility of and opening it up to living space by knocking down a non load-bearing wall, it is well worth considering. Upgrading appliances to stainless steel, replacing countertops with granite or other stone, and refinishing kitchen cabinets can absolutely give some much-needed appeal to an outdated kitchen. Just switching out old hardware for contemporary substitutes can add appreciably to a kitchen’s appeal.

Families spend much of their time in their living rooms – and even if they don’t, psychologically, it can seem the center of family activity. A cramped, cluttered and dark space will detract from other more attractive features of a home. A living room can be made into a bright and welcoming space by making inexpensive changes, such as removing all but essential furniture, painting walls a neutral color, and removing drab window coverings to let in as much light as possible. Replacing worn carpet with a wood laminate -- or refinishing long-covered wooden floors -- can take a bit more elbow grease and budget, but can be worth the cost.

In the master bedroom, homebuyers want to visualize a sanctuary where they can escape from the trials of their busy lives. Simple but effective changes can make all the difference. Remove large pieces of furniture (particularly desks and computers)…in other words, aggressively de-clutter.  Find pale, tranquil and soothing colors for the walls, and choose simple bed linens in complimentary colors (think “hotel luxury”). Make sure that clothes are not on show and that closet spaces are tidy, even if it means putting some of your apparel into storage.

The goal is always to make changes that allow buyers to see the potential in a home; it’s how individual local home prices can rise above general market trends.  If you’re considering selling a property and would like to discuss home prices in our area and ways to maximize values, give me a call today so we can schedule a free consultation!  

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Renting or Owning .....that is the question

Tenant or Owner? With rental rates rising, a lot more tenants in our area are likely to be wondering whether they should be taking a new look at their residence situation.

Conceptually, paying your own mortgage has always seemed more appealing than paying a landlord’s mortgage every month.   Especially this time of year, when tax time puts the whole year’s finances out there on one piece of paper, seeing how thousands of dollars have slipped away for another year can be a little frustrating.  Not surprisingly, then, this is a time of year when, as a buyer’s agent, I begin hear the phone ring a little more often!

Seen from the long term perspective, dollars put toward a home you are buying go toward building a future -- something rent dollars cannot do. But there are more intangible benefits to owning versus renting: control over the title being potentially the most valuable.  Any tenant who has been forced to move because the homeowner needed to sell, or was foreclosed upon, or decided to move back in himself, is someone who has learned the value of controlling when their next family move should happen.

For tenants newly considering becoming a first-time homeowner, consulting a reputable local buyer’s agent is the place to start. As an experienced buyer’s agent I help you determine a practical budget, and then guide the pre-qualifying process to make it happen. 

The next step will be to identify properties that fall within your budget.  Are there neighborhoods you have always wanted to live in, but thought you couldn’t afford?  In today’s market, just about every neighborhood – even the most experienced ones – have experienced some foreclosures.  I can help you identify potential homes at bargain prices.  Some might need a little work, but the long-range payoff can be worth it. 

The bottom line? Everyone has to pay to live somewhere, and in today’s market, owning a home in our area is more attainable than ever.  With mortgage rates still at near-historic lows, if you are on the verge of becoming a former renter, now is the time to consult a reputable local buyer’s agent.  I am always available for questions -- and would be happy to schedule a pre-qualification consultation anytime you decide it is worth exploring.

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Prep Your Property: Pre-Sale Checklist

All of life’s major projects take preparation, and selling a home in our area requires just that.  Contacting me is a pretty good place to begin, because selling a home efficiently and within a reasonable amount of time most often takes extensive knowledge of the local market. A checklist is a good way to introduce the steps you can take to prepare for selling a home. Here’s a quick overview of five of the items I include in that checklist:

1. The obvious first step is identifying any major problems and determining what should be done about them. Decide whether you are going to fix items like roof leaks, rewiring, insect infestations or the presence of asbestos -- or whether you are going to reduce your asking price to reflect any unremediated issues.  I can provide input to help you establish where possible value may be added or lost, and what is worth your time and investment to fix.

2. Whenever you return home, take a moment to pause and visualize what someone driving by for the first time will see. Make a solid first impression by tidying the front yard and keeping the lawn neatly cut and edged. Strategically place colorful flowers in planters where that is appropriate. Repair fences and gates, and be certain that they look freshly painted. And if Fido has the run of the place, be sure that his (ahem!) evidence is nowhere to be seen.

3. Stage your home to maximize its appeal – and keep in mind that staging needs to be fresh for every prospect. Remove any unnecessary furniture. That may well mean renting a storage unit (call me I own Bradford Storage Center) to place it and all other clutter into (it’s bound to be a better solution than trying to jam everything into closets or the garage!). Paint walls in light, neutral colors. Remove heavy window treatments to let in as much light as you can (the ‘cheeriness factor’). Keep the kitchen and bathroom as spotless as possible. Make sure that your home smells fresh by opening windows and using flowers, candles or air fresheners; but be careful not to overdo it.   I can be especially helpful at this stage, and if it’s indicated, we can discuss whether it makes sense to hire a professional stager.

4. Have the property's value appraised, and educate yourself about the competition. For a bank to issue a loan, your home must compare favorably with similar properties on the market. When we sit down to establish a list price, I will have completed a Comparable Market Analysis for your home.

5. This is my favorite to-do item: Be prepared to go!  If a move is going to be in your future, you should begin the hunt for a new home, and be prepared to move quickly once you have an executed offer!

These are just a few of the steps I help my clients take before listing to get top dollar for their properties.  If you are considering selling a home in town, call 252 635 1100 today to see how I can put my marketing experience to work for you.

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Rental Construction Rise Could Signal More

Buying homes and renting them are such distinctly separate aspects of our town’s real estate scene that we tend to pay attention only to the sector we are most involved with.  We pretty much ignore the other. Renters and real estate investors watch trends in residential rentals, while homeowners and soon-to-be homeowners check on prices and activity in the local home market.

All of which means that it’s easy to overlook how trends in one sector have major impacts on the other. And any sort of residential construction activity – new building or remodeling – has a direct and positive impact on our economy as a whole. 

So here’s some good news: this year, rental construction is expected to reach its highest level since 2005. Somehow that may not seem like such a big deal, but despite the way it looks, 2005 is SEVEN years ago (time flies, doesn’t it?)! Those have been seven painful years for most of the construction folks we know, so the change comes as welcome news. It’s also possible that a turnaround could mean that other turnarounds in different areas of the economy may be in the wind.

The apartment experts at NMHC just published something that most of us already suspected. They found that nationally, apartment vacancy rates fell to a decade low of 4.9%. We have already written about how asking rents continue to rise (in March, up .5% from the previous month). The same experts noted that some empty-nesters seem to be increasingly likely to opt for the convenience of apartment living -- even those who could easily afford to buy.

It explains why more investors are stepping up to order the building of new rental homes even as many older apartments and rental homes are being renovated.  Add to that recent government moves to encourage lenders to become at least temporary landlords, and the result is real activity. Budgets have been tight for families in recent years, which may have caused them to decide to choose rental homes that were older, hence less expensive. If the economy continues to strengthen, these same families may later be able to afford to look at one of the new rental homes now under construction. It’s likely that many tenants would choose to live in a place that is a product of new construction, or in a complex that has been recently renovated.

All that increased building activity is another sign that the housing market as a whole is waking up. In the longer range, since newer rentals generally cost more money, more would-be tenants will ultimately reconsider the prospect of owning a home – in turn increasing demand for first-time or entry level homes.

Wherever your family falls in the local real estate mix, don’t hesitate to call our office when you have a question about the market and what is available for you. We’re standing by!

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