Home staging for home selling

Home Staging for Home Selling

Home Staging can help you workout the best deal while selling your home. Home Staging is nothing but a means of packaging your home to impress prospective buyers. All commercial goods undergo extensive packaging phases before they are exposed to the consumers and produced to the end-users. An attractive packaging material can make an impact on consumers easily. Similarly Home Staging can help you create a positive impact on the buyers thus getting maximum return out of it.

At whatever circumstances you decide to sell your home; to consolidate your debts, to relocate to a new place or to shift to a bigger home; you will always want to get a higher amount back than what you invested to this property. With that said, Home Staging can be of great help for you. Everything is subject to ageing on this earth, so your home is. Now, when you go to sell your home, the customer would try to bargain on basis of depreciation. Home Staging plays a vital role here. The companies expert in this field make up the defects, decorate the exterior and interior look and apply certain techniques, so that the customers get attracted to the property and want to possess it at any cost!

There are certain Home Staging techniques that often give profitable output. Some of these are directly associated with renovating the property and some, on the other hand, help you treat the home buyers psychologically. Applying good painting, repairing walls, floors and other structures fall under the first category. Whereas, replacing years old fittings and fixtures, renting attractive furniture that looks good when placed in the newly painted room, placing some other accessories at visible places etc. help to influence the buying decisions of customers.

All these techniques should be applied from buyers’ perspective. Kennewick WA Real Estate may show you the right path of thinking. Home buyers always want spaciousness and light to be there in the new home. So it is important to paint the home with the color that makes the rooms well lit and look bigger. The furniture arrangement should also be done in such a way so that the rooms do not look clumsy and jam-packed. Actually furniture plays an important role to influence home buyers. That is the reason; Home Staging companies arrange some pieces of furniture for the homes that were never occupied even. Furniture helps buyers realize how the home will look like after settling their own pieces in place.

So never hesitate to consult Kennewick WA Real Estate before you decide to advertise for your home in the property column or confirm the appointments with potential buyers. If the consumer likes your home at the first sight, half the battle is won. So the first look matters a lot. Hence, Home Staging should not be viewed as an expense; it is an investment on your part and is likely to yield huge profit in future. Staged home always help you get the desired amount; it really works like the wild card and makes your pocket happy!

Things to consider when buying a home

When buying a home, it is easy to get caught up in emotions such as love at first site. This can lead to disaster. The best way to buy a home is to apply your daily life to it.

What Do You Do Daily?

Ask yourself what a typical day is like. Then, for any home that seems like a real possibility, think about how you’d handle a typical day there. Can family members shower and dress in a timely fashion without getting into each other’s way terribly? Is there a good place to put on make-up? If someone needs something quickly touched up with an iron, can you picture a way to handle that?

Picture the way you and other family members handle breakfast and lunch preparations if they’re made at home. Can you see that flowing well here?

What about evenings? Do you cook dinner at home and dine together as a family regularly? Is there adequate counter space near the sink, refrigerator, and stove? Can you picture preparing a typical meal in comfort in this kitchen?

If you have school age children, what about homework? Do you and they like a homework “station” near where you’re working in the kitchen tidying up after dinner and near where you’re catching up a few chores after that? Or do they do homework in their rooms? Can a computer station, good light, etc. be arranged where it’s needed?

What about exercise? Does one or more family members take a daily run? Use exercise equipment indoors? If so, where would these things take place?

Weekly Chores and Hobbies

Are there grocery stores, dry cleaners, a library, a farmers’ market, or whatever retailers and service providers you and your family use regularly near this home? If not, how would you handle that? Does the home have places suitable for any messy hobbies that matter to you and yours? Does anyone refinish furniture, build models, work with clay, paint pictures? Can you find a reasonable place for those activities?

What about the “enrichment” activities you have your children enrolled in? How would you handle getting them to hockey practice, dance class, and the like? Can they continue in the programs they’ve been in, or will you have to find new ones? Is the answer satisfactory?

Meaningful Infrequent Activities

If you’re changing geographic locations and have a choice of locating within, say, a fifty mile radius of your workplace, you might want to consider the possibility of locating in several different towns. “Trying on” living in each town can hinge on availability of activities you do infrequently, but enjoy greatly. For example, if you and your spouse really enjoy concerts and plays, you can check out what’s available in that realm in each town and then focus your attention on the one you like best.

You might even go to the trouble to write out a little “check list” of things that matter to you and judge each home you’re thinking is a good possibility by how it measures up. You might want to encourage other family members to do the same. This is apt to increase the chance of your finding a new home in which you’re all very pleased with the quality of life you develop after you move in.

Preventing garden invasions

I never really thought of weeds as being evil, but occasionally a plant finds its way into your garden and refuses to leave. It turns into a stubborn house guest, spreading its roots through every available patch of dirt, and paying no heed to existing plants in their quest for dominance. You'll spend an entire season pulling and possibly even spraying, but eventually you'll see them rearing their ugly heads, almost in defiance.

Ridding your garden of these invasive plants is not just a personal peeve; these pests can smother native plants that provide food and habitats for birds and insects. There are approximately 50,000 non-indigenous species in the United States that have created damage and losses totaling about $137 billion per year. This has become a genuine concern in the State of Oregon, so much so that The Oregon Zoo and the Three Rivers Land Conservancy are publicly campaigning to remove certain invasive plants.

The Oregon Zoo has pledged to remove 20 percent of six of the invasive plants on their property, with a goal of removing 90 percent within 10 years. The culprits they are focusing on include English Ivy, Himalayan blackberry, butterfly bush, traveler's clematis, Japanese knotweed and drooping sedge.

The Three Rivers Land Conservancy in conjunction with the West Willamette Restoration Partnership, local businesses, government organizations and 15 neighborhood associations is working to create a Backyard Habitat Certification Program. Their intention is to educate and provide incentives to homeowners to rid their yards of ivy, blackberry, knotweed and traveler's clematis, along with garlic mustard and periwinkle.

Part of their program will involve home visits, handouts, workshops and a three-part certification program that provides signs, gift certificates and event tickets. Incentives are increased based on the percentage of invasive plants removed by homeowners, and the amount of re-planting of native plants. Their goal is to remove ivy from trees in 300 acres and 90 percent of the six plants in 50 acres.

Although a labor intensive solution, the best fight against invasive plants is to pull them out, and keep on pulling until they stop coming up. They need sunlight to survive, the less they get, the harder it is to perpetuate.

What is the definition of cap rate and why does it matter

In commercial real estate, cap rate, or capitalization rate, is used to determine the values of income producing properties such as apartments of five units or more, office buildings, strip malls and other such properties. The cap rate can represent extremely different things to different people in respect to their interests in commercial real estate. Before we investigate why cap rate matters, and what it means to specific people, let's look at the actual equation and see how it works.

Cap rate has two main components which area: net operating income (NOI) and price or estimated value of the property. NOI is found by subtracting all expenses from the gross income of the property. When the NOI is divided by the price or value of a property, you are left with the cap rate.

You can move the components of cap rate around in order to determine each of the variables in the equation. The different equations used to determine any of the three variables are below:

NOI

Cap rate = --------

Price

NOI

Price= ----------

Cap Rate

NOI = Value x Cap Rate

As you can see, depending on the information you have regarding the property, you can determine any of the three variables.

That's great, you say, I can determine these three variables! But how does it affect my commercial real estate endeavors?

To show the main differences between cap rates, I am going to divide investments into three major categories:

Safe investment: Cap rate of 5%

Average investment: Cap rate of 10%

Risky investment: Cap rate of 20%

What the buyer wants out of the property determines what a buyer is looking for.

For example, property being sold at a 5% cap rate is often characterized by low vacancy percentages (less than 5%-10%), beautiful property grounds, good management, up to date amenities, and rents or leases priced at market rate. There is a positive and strong cash flow every month because the property is operating at its full potential.

This property's value is greater when operating at peak performance, so a higher price is asked by the seller, making the cap rate lower. Those who buy at low cap rates are often looking for retail, already performing property that brings in a steady cash flow every month. A buyer such as this is often part of a REIT, or real estate investment trust, or a professional, such as a doctor or lawyer, who wishes only to deal with good properties and watch the cash flow in.

A property being sold at a 10% cap rate is often characterized by higher vacancies (around 10%-20%), average grounds, an average management team and average amenities. There is definitely some room for improvement with these properties. A buyer who picks up a property like this is looking to make those improvements by increasing rates, renovating and fixing up the property, as well as employing a well operating management team.

The sole purpose of this type of buyer is to create value in the property where it is lacking. It does take some work, and is more risky than the 5% cap rate property, so the asking price is less. Hundreds of thousands of dollars can be created in this difference between an average and good operating property.

A property being sold at a 20% cap rate, or more, is usually considered a very distressed property with vacancies of 20% and more, rundown grounds, old buildings that are falling apart, a poor management team and even a problem owner. Because of the risk, low operating income and problems with the property, a person who is willing to undertake such a property must not be afraid of a little (or much) work and the risk involved in attempting to turn a property of this type around.

However, there are hundreds of thousands, sometimes millions of dollars to be made in these properties! It takes a keen eye and some varied and creative scenarios to determine if the property will perform as you expect it will.

As you can see, the cap rate can be great for one person, and horrible for another, depending on the type of investor the buyer is!

As a seller, the seller wants to sell the property at the lowest cap rate possible because that means it is being offered at the highest price possible. It definitely depends on the condition of the property, operating income, expenses, vacancies and management team to determine what the seller can get for the property. The market will dictate what the right price is for a property.

Cap rates are considered the best way to determine the value of a property. Remember that a bank, or other type of lender, will be looking at the NOI of a property compared to the debt in order to determine if it is a safe investment for the lender. To a lender, the debt coverage is more important than the cap rate. However, if you can get the cap rate higher by getting a lower purchase price, then you can get a smaller loan, and possibly be able to cover the loan with the current NOI. It is a matter of working the numbers to see if a deal is feasible.

When you investigate commercial properties, use the cap rate to determine if the subject property fits your specific criteria. Always create future scenarios and manipulate the property's income and expense sheets to determine if you can get the money out of the property that you hope to get.

Gold mines can be found in higher cap properties, so check it out and see what you can discover in your own community.

State real estate auctions - tips for buyers

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State real estate auctions sell off real property that has been seized, abandoned, or forfeited. The Department of Treasury has been designated as the state department to handle such auctions. Typically, they conduct 100 auctions a year.

The funds obtained at state real estate auctions help support local and state police and other areas of the city. The placement of a successful bid at a Department of the Treasury auction establishes a legally binding contract between the successful bidder and the Government.

Here are some basic rules and policies:
To be eligible to bid you must be 18 years of age and not an employee of the state.
You cannot be the contractor, subcontractor or vendor or their agent who has access to information about the property.
A bidder registration form must be submitted for approval. If bidding for someone else, the form must be notarized.
Buyer is to inspect property prior to placing a bid.
Changes may be made on the day of the sale.
The Government reserves the right to withdraw from sale any of the property listed.
The buyer understands the property is sold on the “AS IS” basis.

A lot of rules and regulations govern state real estate auctions, and it is wise if you take the time to research them prior to attempting to attend. Each registered bidder will be issued a bidding number. This is your lifeline to what is important on that day. Don't loose it.

Most importantly enjoy yourself at a state auction. The properties auctioned off are very valuable and should bring you a good return.

Please visit some of my other site at Real Estate Actions and Government Real Estate Auctions

Rent to own homes explained

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If you desire to own your own home but are unable to secure conventional financing today, leasing a home with an option to buy may be your best option. A lease purchase can make your rent money work for you instead of making your landlord rich. Typically rent to own homes offer rent credits that reduce the final purchase price!

Here's how it works:

A home is made available via a standard lease with one important addition. Included is an option to purchase that home at a specified price over a specified time period (usually one or two years). In order to acquire that option, the renter/buyer must pay a one time, NON REFUNDABLE, fee called the option consideration. The exact amount is negotiable, but it is usually ranges from 2.5 to 7% of the purchase price. A fair contract will credit the buyer 100% of that option consideration upon closing of the sale. Furthermore a negotiated percentage of all rent payments should be applied toward the purchase price of the home. Some typical terms and conditions one might expect to find in a contract follows:

1. In order to receive a rent credit of 50%, time is of the essence. You MUST pay your rent on or BEFORE the due date of your lease (typically the 1st of the month). This means it must be received by the lessor (landlord) on or before the due date. Any payment received after the due date will result in a 0% rent credit for that month, a late fee may apply and you will not be building any equity.
   
2. Maintenance is the responsibility of the Tenant Buyer. You are now renting to own and homeownership requires maintenance. This includes things like broken windows from stones or baseballs, clogged drains, peeling paint, broken appliances, burnt out bulbs, lawn work/snow removal, etc. If any major repairs are required to ensure habitability, the owner remains responsible.
   
3. You need to have Option Consideration. Option Consideration is typically 2.5% to 7% of the purchase price of the home. It is a non-refundable payment, of which 100% is credited toward the purchase price, which binds the lease purchase contract.
   

Here's an example transaction:

We have a nice 3 bedroom, 1 bath single family home located in a near west suburb of Chicago in a great neighborhood with good schools and a strong community. It has been freshly painted, cleaned, and is ready to move in. The purchase price will be $215,000. Monthly rent payments will be $1,500 and you will receive a 50% rent credit ($750 per month). You need between 2.5% and 7% in up front Option Consideration. Let's say your budget allows for $6,000 for Option Consideration. This equates to approximately 2.8% ($6,000/215,000). You will also need $1,500 for the first months rent for a total initial payment of $7,500.

Please note: Option consideration is not a security deposit. It is a non refundable payment toward the purchase price and is 100% credited toward reducing the price of the home.
Now suppose you paid all your monthly rent payments on or before the due date and you choose to buy the rent to own home at the end of the 12 month lease purchase contract. You will have $15,000 in equity before you even own the home! Here's the math:

Lease Purchase Price - $215,000

Less: Option Consideration paid at lease signing - $6,000

Less: 50% rent credit of $750/m * 12 months - $9,000

Net Purchase Price after credits - $200,000

You started with $6,000 and by paying your rent on time; your equity position grew 150% (another $9,000) for a total of $15,000 with 12 months. Not a bad deal! Many people find it nearly impossible to save $9,000 in a year with all the costs of living constantly on the rise.

What's the catch?

Now you may be thinking, "OK, what's the catch? This sounds too good to be true."

Answer, there is no catch.

There are many possible reasons a landlord/seller may want to enter into a rent to own agreement. Some reasons may be:

1. Needs to maintain ownership for at least one year for tax purposes.
   
2. Unable to get a fair price due to local conditions.
   
3. Tired of performing minor maintenance.
   

Furthermore, when one sells a home through a realty service, a commission of 5-7% is typically paid. In the example above, this can cost more than the rent credit. Since realtors are usually not involved with this type of transaction, there is no commission and the landlord can afford to pass along the savings to tenant/buyer in the form of rent credits.

Also, when the Tenant becomes the Tenant Buyer (via rent to own), there is an immediate sense of pride in ownership. Tenant Buyers add value to the community. They take care of their future property, make improvements, and feel good knowing their rent money is working for them (reducing the purchase price) rather than just making their Landlord rich.

There are also many advantages for the renter:

1. Build equity toward home ownership.
   
2. No bank or finance company involvement.
   
3. Poor credit history may not be an issue.
   

How can a short sale benefit the seller

How would it feel to lose your dream home for no fault of your own? Financial problems characterize each of our lives and none of us really know what will affect us when. However, we cherish our dreams and make enormous efforts towards realizing them, oh which some of us come true, some do not, while some we lose reaching almost the threshold of acquiring. A breathing reality that is so much common in all of our lives is the threat of facing foreclosure and eventually losing home to some unwanted agency. Mortgages do have their benefits, but the slightest folly on your part can transform mortgages into deadly nightmares.

There are several turns and twist that characterize our career. Moreover, we have regular needs to meet in terms of ourselves as well as our loved ones, which is why the added worry regarding losing your property due to the inability to repay your mortgage is what none of us would want. However, your mortgage company is after all a business entity and would not want to empathize with you at any given instance. And what is the result? Your property, your own dream home, is under threats of property foreclosure or forfeiture by the lender company.

However, things are still not beyond your control only if you know how to take good care of your property. A short sale comes by as an assured relief here, whereby you can sell your home to someone at a price lower than the mortgage balance (or, less than the loan balance). So how do you profit from such a transaction as a seller? You are the one who wins in the run by being able to avoid foreclosure of your property by selling it of before the actual real estate foreclosure auction takes place. However, this possibility would have never existed if you would have lost the home to the mortgage company.

It is immaterial what you owe to the bank or if your property is less than that value. As a homeowner, you can save yourself all the trouble related to foreclosure sale and also save a lot of money on conducting such an event. If you would have tried selling your house following a normal procedure through a realtor, it would also have cost you a lot of bucks. However, by a short sale of your property, you can actually save some thousands of dollars. At times, it is also possible for you as the homeowner to make some money from this deal and keep it for your personal use. Evidently, you are out of money and this cash is going to be of some relief to you and your family.

Your mortgage company will readily accept the cash you provide them because through short sale of a property they can save themselves from a lot of trouble in dealing with the sale of the property under question. They will save a lot of time, labor and some thousands bucks by allowing you to short sale your property and repaying them their balance mortgage amount.

Sell your house at fair price

Nowadays, home buyers are having more choice about the homes they will buy. In the real estate market, competition is tough now to find a buyer that sees the potential in a home that needs a little work, without substantially lowering your asking price.

There is a reason why you cannot get a fair price. In many cases buyers expect your home to be in 'move-in' condition before parting with their money. They see new carpets and freshly painted walls in showrooms and are judging your home with the same measuring stick. It changes what people are willing to pay. You receive offers subject to negotiations - meaning you have more work to do before the sale takes place. Others may simply try to give you a ridiculously low offer if they buy 'as-is'.

If you have pressing circumstances that mean you cannot do the work or cannot afford the time it would take to have the work done you may take one of these offers, losing thousands of dollars of value just because it was the best offer on the table.

Real estate investors know the market you are selling in. They are not put off by stains on the carpets, fading paint or any of the other typical wear and tear that comes with lived-in homes. You can find real estate investors who will take on all of the hassle of cleaning and prepping your home for new buyers - all the while taking over your payments so you don't have to wait for the closing before moving on.

You save yourself the hassle of finding a buyer that's willing to give you a fair price for your home while also being relieved of the work involved to make it look what its worth. This can be very important when a move needs to be made right away but you simply don't have the time or ability to fix things up.

It is better to find a realtor that can sell your home on the date you choose, giving you a fair price and doing the fixing up for you! All they can do is listing your home to the market - the market will decide what they will pay, not the realtor. Instead you may be talked into doing the work yourself or lowering your price - not always an option.

Remember that an investor is a buyer - you will not be paying them to list your property, they will be purchasing it from you or taking over the payments until a buyer is ready to purchase. You will not pay commission fees and other usual closing costs - you just sell your home. Have your home evaluated and find out the process involved - its easier than you think!