“Am I going to deal with Realtors or Not?”

Because it is almost guaranteed that as soon as you put your “For Sale by Owner” sign, the first calls about your home are going to be from Realtors.

The reason Realtors are calling is simple, they want to list your house and get paid a commission. They may disguise their call but when the smoke screen fades, it’s still the original reason they wan to list your house.

The most common line a realtor will give you is “I have a buyer for your home”. And some actually might but for many realtors, it’s just a line. They are trained to get their foot in the door. Their intent is to create an opportunity to give you their sales pitch about “Why you should list with them”. Those realtors with this intent can be easily picked out especially when they show up without a buyer. Also, a famous line is: “I need to preview the home first”.

However, it’s not all bad, there are some excellent Realtors out there who do actually have buyers and may be worth dealing with. Realtors have sold many “For Sale by Owner” homes, but keep in mind that if you allow a realtor to show your home to buyers they will expect to be paid some form of commission.

The Canadian HomeFind.com Sellers Guide explains several options available to you when dealing with realtors as well as how to negotiate realistic commissions.

Remember “You” are selling your home. A listing contract is not necessary under any conditions so don’t sign one!

1. Saturday or Sunday afternoons seem to be the most popular days.

2. 2-4 hours is the average time your home should be open to the public.

3. Avoid booking your open house during any community events or major  sporting event playoffs.

4. Avoid holidays.

5. Check the weather forecast (cold rainy days…less people out and about).

6. Prepare and groom the yard, including sidewalks and lawns.

7. Eliminate all valuables that can easily be picked up and pocketed (rings,  watches, camera’s etc.).

8. De-clutter the house as much as possible.

9. Remove or depersonalize the home if possible (family pictures etc.)

10. Pack any and all unused items and place them in a storage area.

11. Avoid cooking any foods that have strong odors (such as fish, broccoli,  cabbage etc.).

Find out what questions to ask before buying property insurance. The homeowners insurance quote provides coverage for a home or business and the items inside the home.

People buy property insurance to cover their home or place of business and the items inside. Property and home insurance policy coverage includes coverage for a number of covered perils, including fire, hurricane, theft, windstorm and hail. Prospective customers can purchase additional coverages before agreeing to a homeowners insurance quote including Vandalism and Malicious Mischief as needed to increase the property insurance policy protection.

Property and Homeowners Insurance Policy Exclusions

There are a number of property and For Sale by Owner homeowners insurance policy exclusions. Earthquake, Backed-up Sewers, Military Action and Wear and Tear are always excluded from the Business Owners’ Insurance Policy (BOP), but sometimes additional premiums will un-exclude Excluded Items. If purchasing a Business Owners’ Policy (BOP), property insurance will be included in the insurance policy.

Likewise, property insurance coverage is included in the standard homeowner’s insurance quote. Research different insurance companies before deciding where to buy a property or home insurance policy. Coverages vary widely according to area where the home or business is located and by company coverage offerings. Before finding a property or homeowners insurance quote, check with an insurance agent to determine:

• How far the property insurance coverage extends;
• Verify what perils are covered by the property or homeowners insurance quote;
• Determine if additional coverages are needed to protect the property.

Lender’s Flood Insurance Policy Coverages

Don’t be fooled- when buying a flood insurance policy provided by a lender, also known as a lender’s insurance policy or force-placed insurance, it most likely doesn’t cover personal property or the items inside of a home or business. The lender’s flood insurance policy is designed to cover a loss to the home or business structure only.

This article was first published on Suite101.com.

Many buyers that are new to the home buying process are unaware of the additional costs that are incurred when closing a real estate transaction. Many believe the 5% down payment is the only funds they require to purchase a home. And more often than not, they are scrambling at the end of the transaction to find enough money to cover the unexpected and often unexplained closing costs.

Buyer Closing Costs

When a buyer applies for a loan, lenders are required to provide them with a good estimate of how much their closing costs are going to amount to. The problem is if the buyer has not been in to see a lender, they will have no idea that there are closing costs at all. Not to mention the estimated amount of extra funds they will require.

This is just one of many good reasons why many buyers should be pre-approved prior to house hunting.

Some typical buyer closing costs include:

• The down payment (usually 5% of the purchase price)

• Loan fees (points, application fee, credit repayment, etc.)

• Prepaid Interest

• Inspection fees

• Appraisal fees

• Mortgage insurance

• Title insurance

• Legal fees

• Provincial Land Tax (if applicable)

• Home Insurance

Keep in mind moving costs, household appliances, and window coverings may need to be addressed as well.

Seller’s closing costs:

•    Any and all outstanding mortgage fees and penalties

•    Transfer taxes (if applicable)

•    Legal fees

•    Title insurance

•    Property Taxes

•    Any and all loans or charges against the property

Your bank or lawyer should be able to help you determine what amount you personally need to cover closing cost on the sale or purchase of your home.

What does acceleration clause mean?

The acceleration clause in a mortgage contract states that the entire balance of the debt is due and payable in full should the mortgagee default on the mortgage.

What does acquisition cost mean?

The acquisition cost combines the purchase price with the estimated closing costs of the home.

What is an adjustable rate mortgage?

An adjustable rate mortgage is also referred to as an ARM. This type of mortgage includes a lower initial rate of interest that changes after a predetermined time has passed and it is adjusted periodically. At that point, the interest rate increases according to predetermined conditions that were selected at the origination of the mortgage. This type of mortgage is also referred to as a variable mortgage.

What does amortization mean?

Amortization is the scheduled payment of a loan or debt through systematic monthly payments that are equal in value and continue on a scheduled basis (monthly) until the entire mortgage is repaid in full.  The details for each payment over the course of the mortgage are listed in an amortization schedule. Additionally, the payments are separated into the portions allotted for the principal balance and the interest charged.

What does annual percentage rate mean?

The annual percentage rate is also referred to as the APR. As required by the Federal Truth in Lending Law, lenders must present potential borrowers with the APR or annual cost of the mortgage. The annual percentage rate should accurately reflect the cost of obtaining and holding a mortgage for an entire year. The APR is designed as a comparison tool so that potential borrowers can select the mortgage that provides the lowest annual cost, provided that they qualify for it.

By Susan M. Keenan  ©2008

6.    Proper attic ventilation.
Attic ventilation is the key to extended shingle wear. Heat build up in the attic literally cooks the shingles from the underside causing blistering and cracking of the shingles. An inspector should check to make sure there is proper cross ventilation and that electric or wind driven vents are working properly. They should also make sure ridge vents are properly installed and adequate sheeting was removed for proper ventilation.

7.    Plumbing leaks.
The plumbing system should be checked for leaks at every appliance, sink, toilet, and tub. It should be noted if signs of previous leaks are detected as well as signs of mildew damage. The crawl-space piping should also be checked as well.

8.    Electrical service.
The electrical system should be checked to ensure proper building code was followed. The inspector should check each circuit fault interrupter manually as well as each fuse or breaker switch. He should be sure there are no bare wires and that each appliance has its own breaker or fuse and that it is the proper size for the appliance.

9.    Foundation settling.
Foundation settling is a big problem in many parts of the country. While it’s true that every house settles, too much settling can be dangerous as well as expensive. The inspector should look for signs of cracking on the foundation from the inside as well as the outside. He should also look for signs of chimneys that are detaching from the house. A thorough inspection of the inside of the house for signs should also be done. Cracks in sheetrock or plaster above doorways and doors that don’t close properly are sign that the house is or has settled.

10.    Caulking.
Proper caulking on the outside of the house as well as the inside around tubs and sinks is essential to ensure water does not cause damage. An inspector should check the outside of the home to make sure caulking is properly applied and not cracking. The same holds true for the inside as well.

By Jay Watkins

Here is a list of things an inspector should look for when performing an inspection.Home inspections are a vital and necessary part of the home buying process.

A good inspector will know exactly what to look for as well as what should and should not be noted. Most inspectors will use a checklist and only note damages greater than $500.

1.    Moisture in the crawl-space or basement.

is the most detrimental element to your home. The slightest leak cause major problems. The home inspector should spend a great deal of time in the crawl-space or basement checking for moisture problems. Moisture in a crawl-space or basement is usually caused by high humidity, improper drainage from down-spouts, or plumbing leaks. Some visible signs to look for are standing water, damp crawl-space floor, water stains on masonry, or sagging or wet insulation.

2.    Proper drainage.

Proper drainage from down-spouts and runoff from the yard are crucial in combating water problems in a crawl-space or basement. Thousands of dollars may be saved in waterproofing costs by simply making a few adjustments. The home inspector will check to be sure each down-spout from the gutter system actually drains rainwater away from the foundation. They should also check to be sure the gutters are not clogged. The area around the foundation of the home should also be checked for signs of improper water runoff. Some signs to look for include piles of leaves and debris and wet or dry puddles near the foundation.

3.    Signs of pest damage.

Pests such as termites and wood-boring beetles can wreak havoc on your home. An inspector will look for visible signs of damage as well as active colonies of termites. Termite treatments are very expensive and some wood-boring beetle’s infestations require fumigation to get rid of them. The inspector should note inactive or old colony signs as well as signs of previous treatments.

4.    Properly flashed chimneys and valleys.

Properly functioning flashing is required to ensure water isn’t allowed to enter your home and that the water is directed off the roof and into the gutter system. Every valley and chimney should be properly sealed with a flashing system. The inspector will inspect the flashing to make sure it is sound, rust free, properly fastened, and sealed.

5.    Properly working gutters and downspouts.

Gutters should be checked to make sure they are not clogged and that they are angled so that water flows freely to the down-spout openings. They should be securely fastened to the fascia without holes and rust. An inspector should also make sure down-spouts are properly secured to the house and that runoff is directed away from the foundation.

More useful tips on Home inspection to be posted shortly.

By Jay Watkins

do-it-yourselfer have been known to make mistakes from time to time (more often than not) and these mistakes always wind up making your home improvement project more expensive and time-consuming than you ever wanted it to be.

Home improvement experts from around the country were asked for the most common mistakes do-it-yourselfer make.

Here’s the list:

1.    Not taking out the required permits
2.    Starting a job without the necessary tools and supplies
3.    Inadequate preparation of the job site
4.    Skimping on the materials
5.    Using the wrong paint
6.    Improper preparation of walls for painting
7.    Inaccuracy
8.    Unsafe job conditions
9.    Working beyond your limits
10.  Not planning for the unexpected

Strange Odor

Mold has a foul and musty smell. If you detect this odor in any area of your home, check for a moisture problem.

Discolored Patches

Mold can come in black, brown, orange, pink or green patches. If you notice these colored specks in your home, check for water in and around the area.

Health Issues

Allergy-like symptoms are an indication that mold might be present in your home. These symptoms include sneezing, congestion, watery eyes, breathing difficulties, headaches, and skin irritation. You may experience one or multiple symptoms.

Defective Wood or Vinyl Siding

If you have cracked wood or deficient siding outside of your home, it is probably allowing water to leak in. Mold can grow on wood and spread easily.

Flooding

If you recently had a flood in your home, mold is likely to occur. This is due to the enormous amount of moisture and humidity from standing water.

Poor Drainage

Inadequate drainage around your home can contribute to a level of humidity that leads to the growth of mold. Make sure drainage pipes are properly installed.

Peeling Paint

Moisture will cause paint to peel. If you notice your walls are stripping, there is a possible mold problem.

Water Stains

Water leaking into the home will cause a stain to form in areas such as ceilings and floors. If you’ve had a spot for a long period of time, it is an indicator that mold is growing.

What Should You Do If You Find Mold in Your Home?

You must find the cause of the moisture in your home. Once the problem is located, have it corrected immediately and the mold removed. Depending on the amount of mold, you may get rid of it yourself or hire a professional.

To avoid a mold problem in the future, perform regular check-ups throughout your home where moisture is most likely to be. These places include water heaters, appliance hoses, drain lines, showers, tubs, toilets, sinks, pipes, windows, doors, an attic, and roofs. Also make sure your home is properly ventilated.

These 10 low cost tips will get you started on turning your house into a “show home”. This is critical because if you want to get the most money for your home and sell more quickly, you need potential buyers (and their agents) to feel it’s a “hot property”.
Even if you’re not moving, you will find these tips also make your home more relaxing and enjoyable to live in.

1. Consider the curb appeal.

Landscaping is nice, but not in everyone’s budget. At minimum, lawns should be freshly mowed, leaves raked, or snow shoveled. Consider a hanging or potted plant for the entrance. Sweep the porch, deck and all walk ways and ensure garbage and recycling are tucked neatly away from the front of the house.

Scrub your front door, porch, outside railings and steps. This is cheaper than repainting and makes a world of difference. Once the outside entrance is clean, decide if the paint really needs a touch up.

2. Get rid of clutter!

Pick one closet or area at a time so the task isn’t as daunting. Look at every item with a very critical eye and ask yourself why you’re keeping it.

Forget about hanging onto items for a garage sale. Pick your favorite charity and donate it. You paid for these things long ago, why not just give them away to others who REALLY need them?

You’ll probably have to edit the same closets a number of times to really whittle them down to the “essentials”. If rooms and closets still look cramped, rent a storage locker. A Staging Diva Graduate Home Stager can recommend a location for you.

3. Turn excess inventory into cash.

If you have a collection of items for projects you never got around to, return them. This also applies to the two-year supply of light bulbs, canned goods or paper products sitting in your basement.

Without a receipt you won’t get cash, but you will have a store credit that you can use once you move. Less clutter and less stuff to pack, move and unpack again!

4. Watch where the eye goes.

There are speedy and low cost solutions to many of the little problems that together make a home seem shabbier than it needs to.

Walk along each corridor and into every room and check where your eye is drawn (better yet, ask a critical friend or family member). If the eye is drawn to the chipped white paint on the door frame, take some “white out” and fill it in. If it’s those old nail holes in the wall, see if you can hang a picture to cover them.

Glue any peeling wallpaper. If it’s really horrible and you can’t afford the time or money to fix it properly, hang pictures and strategically place baskets. You won’t cover the problem entirely (which would be wrong anyway), but you will draw your audience’s attention away from the problem and onto something more visually pleasing to focus on.

5. Find a fix-it person.

Ensure cupboards open and shut and that no taps are dripping. Look in all rooms for things you never got around to fixing and decide which ones might be distracting to potential buyers. No, it’s not OK for door handles to fall off, even if you have learned to ignore it!

A Staging Diva Professional identifies which problems should be fixed and can recommend someone to do the work.

6. Clean, clean and clean again.

Most mortals can’t live in a spotless environment all the time. This can be one of the more stressful aspects of having your home on the market— but it’s worth the effort to sell your home for top dollar. You can hire a professional service to come in and deep clean everything; then take 20-30 minutes each day to maintain it.

Appliances should sparkle even if you’re not including them with the house. After all, you might throw them in later as a negotiating tool. Counter tops, taps, sinks and bathtubs should be shiny and free of water spots.

If you have a pedestal sink, don’t forget the dust that collects on top of the plumbing where it attaches to the wall. If the whole sink is spotless and the taps aren’t dripping, it will look new!

Dust shelves and vacuum or “Swiffer” the floors. Naturally, all beds should be made. At a recent open house for a home listed over $500,000 (and over 60 days on the market), they hadn’t even bothered with these two simple steps! It made you wonder what bigger things had been neglected.

Remember clean windows let in more light and look newer. Hire a service if you have to— it’s worth the investment.

Staging Diva Professionals know who to call to get your home in sparkling shape. It’s all part of the home staging process.

If all this attention to detail seems over the top, remember that a very clean home leaves the impression that the house is well cared for. This helps put buyers at ease— especially a first time buyer who may be worried about the responsibilities of owning a house.

7. Let in some air.

Open some windows for at least 10 minutes. There is nothing worse than walking into a stuffy house or one that smells of smoke and pet odors.

8. Let in some light.

It might be mood lighting to you, but if you’re trying to sell your home, keep it bright! Dimly lit rooms tend to look small and dingy— especially during the day.
If you have a particularly dark room, consider investing in a floor lamp that will bounce light off the ceiling.

If your walls are so dark that they’re sucking up all the light, consider repainting. You can even buy a small can of a lighter shade of your wall color, mix it with glaze and rub it onto the wall. It will reflect light and give the room a more open feeling. This approach saves much of the preparation and clean up involved in repainting.

9. Don’t forget fresh flowers.

You don’t need to spend a fortune to have fresh flowers throughout your home. Even a daisy in a bud vase brightens a bathroom counter. Ask your florist which blooms last a week. You can also use potted flowering plants that are in season for a low-cost solution.
Don’t use plastic or obviously fake flowers, especially in an expensive home!

You don’t need to spend a fortune to have fresh flowers throughout your home. Even a daisy in a bud vase brightens a bathroom counter. Ask your florist which blooms last a week. You can also use potted flowering plants that are in season for a low-cost solution.
Don’t use plastic or obviously fake flowers, especially in an expensive home!

For more information visit:

http://www.stagingdiva.com/freehomestagingtips.html