Selling Your Beloved Home

by Laura Jacobus

We've heard that old saying," There's a bottom for every seat." Why is nobody interested in my house?

Many will blame it on the market, the realtor or the neighbor who keeps everything on his lawn. The fact is, yes, every house has a buyer. But whether every house has a motivated seller is another question.

Self examination in selling your house is as difficult as a self therapy session. Sometimes we need to step back from being the "owner" and look at the situation as if we are not holding possession. The act of 'possession' will actually prevent the sale. Are you really WILLING to let go of ownership? What is your motivation? Most times it is taking a "loss" on the sale that prevents the owner from seeing the reality of the market situation. Yes, we all hate to admit truth of a poor investment and are embarrassed to feel defeat. But, lets see if we can use our observation and math skills to become the victor instead of the loser.

Some factors to consider are obvious, but lets look at all of the possible reasons that your home has had no interest to buyers.

Condition of property and nearby properties.
Has your neighbor taken a down turn or has a proposed change in the neighborhood given it a reputation? Is there power lines or RR tracks nearby? Be sure to look at your property map on theses sites:

Google Maps » ( use Terrain view)
www.stopthelines.com
Check out your agents online photos and write up as well!


History of Bad Press
Has there been a flood in your area, high crime, low school score report? Have you checked the state sex offender registry lately? Have you taken any negative insurance claims on your property? Any good buyers agent knows to look for these red flags before showing a property.

Check out these sites:
www.greatschools.net
New Jersey Sex Offender Internet Registry
www.isopropertyresources.com


Overpriced
This is most likely the number one reason your property is not selling. Every above negative brings down the value of your home a few thousand dollars. You obviously saw value in your home when you bought it. That value is still there. It may need to be priced adjusted to compensate for other factors that are negatively affecting your sale. Did you buy at a high time in the market? Or maybe you have overextended your credit and need the money to get out of debt? Is this really the new buyers responsibility? Would you overpay for a home to cover the past owners debt? Buyers are quite savvy on market value. They get keyed in quickly to the trend and the value. Some preview online for up to a year before they actually go into a home with an agent. You are not fooling anyone but yourself by expecting that the right buyer will come along and pick up your tab.

Lets consider the following scenario. You bought for your home in a high market and paid $400,000 with taxes of $7000 at an interest rate of 6.5 with 5% down. So your payment is now roughly $3000 per month. If it takes you 1 year to sell your home, you will carry this payment, or $36,000. Do the math and follow that number for 2 or 3 more years. It becomes staggering.

Your listing agent is telling you to drop the asking price on your home down to market value of $359,000 , by accepting an offer of $345,000. Your closing costs and inspection repairs will be about 7% of profits or $24,000.

Bottom line $400,000-$345,000=$55,000 loss add your fees of $24,000 and you are down $79,000. Let's look at the flip side, if you held onto your home at the high asking price for 2 years you are down $72,000. If no repairs are needed, you may be only slightly ahead. If you wait 3 years you'll be out $108,000.

But you have lost sight of the reason you want to move. What is more important to you. Moving on and accepting the loss of a few thousand dollars, or fighting the losing tide of recouping your bad investment. If you are unable to let go of this ownership, then do yourself a favor and take your home off the market until you are ready to compete and win freedom from your past mistake. Owing a bank a difference of $79,000 is a lot easier to live with, than the full hand.

Remember that the home you buy will also be at today's market. So you may get a good deal yourself!

Self examination is hard. But, letting go of old habits is freedom!

Small and Perfect: When too big is too much

by Kathryn Godby Oram

In the US housing market, having the best has always meant having the biggest. The recent market correction has lead many to doubt that adage.

Perhaps the best is; what you can afford, fits your stuff, and keeps out the rain, snow and wind. Luxury does not have to mean large. A well designed smaller home can be more enjoyable and more cost effective at the same time. Think about how you live your life in and out of your home. Take stocks of your needs and list them against your desires. Decide what you can do without. Why is the smaller house trend growing in popularity and what does it mean for you as a buyer?

According to the AHBA 59 % of Baby Boomers say that they want to move to a smaller, one level, more convenient home. With boomers driving the market and young families taking a back seat, the demand for smaller, reasonably priced homes is climbing. Many boomers would like to remain in their current homes but cannot due to finances, inefficient layout or maintenance worries. This trend, pushed by the market’s biggest buyers, is affecting how and where builders build. If small, perfect and efficient is the new “must have” then perhaps the era of the McMansion with a too big kitchen and no money left for furniture is over.

The recent downturn in the economy has every American, young and old, re-thinking their finances. For most of us, our home is our biggest expense. Disposing of old norms and re-envisioning homes that are better suited to efficient living can allow all consumers to enjoy beautiful surroundings at a fraction of the cost.

Young families have not left the market entirely. With prices down and interest rates still very low, many younger buyers do not want to miss the opportunity to get into a new home. In the past, the majority of buyers bought as big and as expensive a house as they could afford; that is no longer the case. Savvy buyers are taking stock of their finances and looking more closely at the way they want to spend as well as save their money.

Buyers from all age groups are buying smaller homes. What this means for the consumer is that buying a smaller home will not only save you money it may actually make you some. The “it” factor is what sells a house. Intimate family spaces, gorgeous kitchens, organized storage and great baths are the ingredients for a successful sale. Keep in mind that those renovations are more easily paid for in a smaller home. If those improvements are appealing to you when you look at a home for sale then they will be equally appealing to a potential buyer if and when you decide to sell your own home. By creating a home that is easy and affordable to manage you’ll be creating a home that is easy to sell. In this market, that’s piece of mind.

Should you decide to downsize follow a few simple rules: Buy a home with a layout that works well for your life. Focus your time and money on the parts of the home where you spend the most time. Do not neglect outdoor spaces. A smaller home can feel expansive with a three-season patio that hosts warm fires and pleasant conversation year round. When doing improvements consider energy efficient alternatives to old favorites and see if the costs are in line with energy savings. Use quality materials that make a statement and that will last. Just because your home is not a mansion does not mean that it cannot be a showplace. Hopefully, when you’re finished you’ll have the home you’ve always longed for and you may even have money left over to decorate it.