June 2009

Planning Your Move

Planning your move

As you put your home on the market, the next step is planning the logistics of your move. There are many things to consider, but the item to tackle right away is choosing a reputable moving company. You can ask friends, relatives, and your Texas REALTOR® about their experiences with and recommendations for moving companies.

Keep in mind that many people move between May and September when they’re children are out from school. If you can’t avoid this peak moving time, be sure to call to schedule your move far in advance.

Moving day can be stressful, but thinking ahead and being prepared can make the process run more smoothly. Make sure you’re on hand to answer questions the day the movers are packing your belongings into the moving truck. As a driver does an inventory of the home, walk through with him to verify that he is accounting for everything. It’s also imperative to sign the bill of lading, which is the contract between you and the mover, which will allow for claims to be made and will legally ensure that everything is accounted for when the truck reaches its destination.

A few other helpful tips include not packing your jewelry and other valuables like family heirlooms, antiques, and silverware. It’s better to take these items with you than place them on the moving truck. Also make sure you keep important papers with you like school records, birth certificates, passports, closing papers, and mover estimates. These documents are very hard to replace if lost in your move.

Finally, consider using different colors to designate which boxes go to which room. You can use a red sticker for the living room, green for the kitchen, etc. When the moving truck gets to your home, you can have these colors on the doors of the respective rooms so that the boxes can quickly and efficiently be unpacked.

Texas Association of Realtors®

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Making a Good Offer

When you’ve finally found your dream home, making an offer is the next step. Make sure you’re working with a buyer’s agent, so you know you have someone looking out for your best interests. A buyer’s agent will help get the best deal possible, assisting you with negotiations, paperwork, and the myriad other details involved buying your dream home.

When coming up with an offer amount, keep in mind that some sellers may get offended with an offer significantly lower than their asking price. Though their selling agent should counsel them not to let emotions get in the way, some people will see your low offer as a personal insult. That doesn’t mean you shouldn’t make an offer substantially lower than the asking price. Perhaps you think that’s the fair value of the property. Just know that you may not hear back from the seller.

Many times a seller receives more than one offer at a time, and it’s up to you and your buyer’s agent to make your offer look as attractive as possible. After coming up with your offer price, you must also determine how much earnest money will accompany your offer. This money is used to show the seller that you are serious about purchasing the home and acts as a “good faith” deposit.

There are other ways to make your offer attractive. Talk with your Texas REALTOR® about the best game plan for making your offer look at appealing as possible.

Texas Association of Realtors®

Understanding the Lingo – Comps

So, you’re selling your home and every single Texas REALTOR® you interviewed to list your home has mentioned “pulling comps”.  Not wanting to appear uniformed, you just nodded your head and played along.

So what is a comp? Simply put, a comp, short for comparable, is the primary set of data used in determining the value of your home.  Comps give you data from all the recently sold property in your neighborhood.  Some of the different data you see might be the age of the house, the square footage, and most importantly, price. Your Texas REALTOR® may use these data to create a Comparative Market Analysis for you.

In any real estate market, the more recent a comp, the more accurate it is. Obviously, the availability of recent comps depends on how active the market has been in your area.

Generally speaking, the most significant comps are those that are closest to your address. This does not account for differences such as one house having a view of the lake, which will add value, or a home backing up to a railroad track, which will detract from the value.

Price per square foot is a significant and well-tested method of comparison, although straight comparison can be deceiving. You can see a big discrepancy if, for instance one property has been neglected and another of exactly the same size, just two doors down, has been well cared for.

Lot size is a factor as well. A 2,400 square foot house on a four-acre lot may sell for quite a bit more than an identical house on a .33-acre lot.

Other factors may include nearby amenities, traffic concerns or access to a main road, landscaping and curb appeal, and the general condition of the exterior of the house—such as the driveway, roof, chimney, or fence.

In the end, it comes down to what the buyer’s bank’s appraiser says the property is worth. That appraiser may use comps to generate his appraisal, but banks or lenders do not take comps into account when considering the amount to loan the buyer; they will only consider the appraisal.

The point is this—there are many factors to sift through when evaluating comps. If you have questions, your REALTOR® should be able to decipher these data and explain the methods she used in pricing your home.

Texas Association of Realtors®

To Honor our Service Men and Women

In honor of our upcoming Independence Day celebration, I am posting a video of the Vocal Majority Chorus (the greatest men’s chorus in the WORLD) singing The Armed Services Medley. This was filmed when the VM performed at the ACDA convention in Oklahoma City in March 2009.

Seller Information Request

Buyer Tip – Closing Costs

Everyone knows that in most cases you’ll need at least a small down payment to purchase a home … but that’s not all. You’ll also need to come to the transaction with money for closing costs, which can be sizeable.

Your lender is required by the Real Estate Settlement Procedures Act (RESPA) to provide a good faith estimate of your closing costs. This estimate is an itemized list of fees you’ll pay to get a loan.

Mortgage closing costs cover things like appraisals, attorney fees, title insurance, taxes, and other expenses associated with getting a loan.

A property appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property. An appraiser is needed to make this determination.

A survey of the property is usually required to verify that boundary lines for your property, easements, and fences are where they’re supposed to be.

You’re about to buy the home … after that, you’ll own it, right? Well, in some cases, there may be a lien on the property, or some historical dispute to your right of possession. A title search fee is paid to the title company for doing detailed research on the property records for your home. The title company will look at prior deeds, court records, property and name indexes, and many other documents. This is to ensure that there are no liens or problems associated with your ownership of the property.

You’ll need homeowner’s insurance, which covers the costs of rebuilding should an insured event occur. In some cases, your first year’s insurance may be paid at closing.

Other fees that you may see include attorney fees, courier fees, pest inspection, plat drawing, underwriting, flood-zone certification, document preparation, and others.

It’s important to check your lender fees and closing costs carefully, and don’t be afraid to ask for advice … the only bad question is one that you don’t ask. This is where your Texas REALTOR® can really help.

Texas Association of Realtors®

Design Trends

“Design can have such a positive impact on the way people live and on their relationships and moods.” – Genevieve Gorder

Not all remodels are created equal. You may already be familiar with Remodeling magazine’s popular Cost vs. Value report, which documents the average return on investment expected for specific improvement projects. But have you taken into account the latest design trends that will make your home more desirable and thus more valuable?

For example, many buyers are seeking homes with hardwood, composite or travertine tile
flooring because they require less maintenance than carpet and give a home a beautiful and natural feel. Replacing carpeted areas with these contemporary flooring options can give your home a worthwhile face-lift.

This month’s Item of Value is dedicated to new design trends around the home. You will
find innovative and affordable tips that can dramatically improve your home’s look and value, such as adding accent lighting and replacing outdated plumbing fixtures.

Specific ways you can stage your home successfully for an open house or merely to entertain friends and family are also included.

My hope is to keep you informed of the latest trends in home improvement and design.

Sincerely,

Alan Hopper

Oh, by the way®…if you know of someone who would appreciate the level of service I provide, please call me with their name and business number, and I’ll be happy to follow up and take great care of them.

 

4 Year Old Hunter Hayes Sings Jambalaya

Home Buying Process Chart

I came across this handy chart that lays out different steps that need to take place in the home buying process.  The only thing I would change is perhaps spreading everything out to 45 days instead of 30 days.  Loan underwriting is quite a challenge, even for buyers with good credit and lots of money to put down.  So, 30 days is very aggresive.  But, I think this chart is right on track with the steps involved in finding your new home.

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