New Reporting by Landlords

Are you a landlord? Do you own rental property?

Starting with the 2011 tax year, you'll have to issue a 1099 to anyone to whom you paid $600, even a licensed business if it is not incorporated. This would include painters, landscapers, or other contractors. It gets worse in 2012, when corporations will be included, and purchases of materials could be as well.

The most current information has come out this week, as the Small Business Jobs Act of 2010 was signed by the President on September 27, 2010. Some accountants are saying that there may be a delay or a repeal to some provisions, so your best move is to consult your tax pro and watch this going forward.

The first link is a quick overview, and some details are in the second one.

http://taxes.about.com/b/2010/09/27/small-business-jobs-act-of-2010-expanded-1099-reporting-for-rental-property-owners.htm

http://taxes.about.com/od/businesstaxes/qt/1099-Misc-Reporting-for-Miscellaneous-Payments.htm

Short Term Furnished Housing

One of my specialties is providing short-term furnished housing for clients. I met yesterday with a representative of another temporary housing company to find out more about how they operate. First we looked at a duplex in Eastlake, with a two-bedroom unit that currently rents for $1600 and a three-bedroom unit that currently rents for $1995 unfurnished on a one-year lease. Utilities and parking are paid for separately, a la carte.

In temporary, furnished housing, the owner is responsible for completely furnishing the unit, including appliances, blinds, curtains, furniture, rugs, art, pots, pans, linens, bedding, plates and utensils. A complete list of furnishings can be found on sites like CorporateHousingByOwner.com. To furnish the two duplex units, the corporate representative suggested the owner would likely spend $8000 or so in furnishings.

In addition, the owner would be paying for all utilities, all yard maintenance, internet, and cable TV. Parking should be included, especially in high-end properties in dense urban neighborhoods. Maid service may or may not be provided, but the security deposit ($750) will typically include a $250 non-refundable turnover and cleaning fee. A pet fee of $300-600 covers cleaning and replacement costs associated with pet damage, and is non-refundable.

The owner also pays a one-time web development and set-up fee of $1800. This particular company charges a 20% management fee, which includes tenant recruitment, lease up, rent collection, accounting and reporting.

The two-bedroom unit could probably rent for $2400/month; and as there are not a lot of two-bedroom units, would stay rented 90% of the year in this location. The larger unit is trickier, would probably be more challenging to rent because of its size and awkward layout. Maybe $2895? The yards are a plus with this particular property, as it makes it possible to have pets or a play area for children.

We then looked at a couple of one-bedroom units across the street in a six-plex apartment building. These currently rent for $1295-$1395 per month. These would be easier to rent as temporary furnished units, and would stay rented all the time. The one-bedroom unit with a view might rent for $2100; the other for $1800-1900/month.

So on a $1295/mo unit, utilities might run another $150/month; garage or parking rental another $150; cable, internet and utilities maybe another $200. Plus the amortized costs of furnishings and higher management fees of $375 or so. The owners would need to recover about $2175 to make the same profit they make now. In this case, converting to furnished short-term housing would not make sense.

The cost-basis would be $100 more for the one-bedroom unit with a view, again hardly offsetting the costs to change to short-term furnished housing under this scenario.

The utility costs for the three-bedroom duplex unit might be higher, so the owner would need to recover at least $3000 for this model to make sense. Again, the projected rents fall short of the needed income, assuming both furnished and unfurnished units would rent for the same percentage of occupancy.

A lower management fee; furnishing in a frugal but attractive way; and foregoing expensive web advertising would help make this model pencil out. It may well be worth it for the owners to experiment in-house with a staged unit and flexible, all-inclusive leasing terms the next time a unit becomes available.

New Listing in Snoqualmie Pass

Weather forecasters are predicting a great winter for skiers this year, with colder temperatures and greater precipitation in the form of snow! I am making my winter plans already!

I am also working with a new client in Snoqualmie Pass and trying to determine the best time to list his lovely three-bedroom, two-bath home within walking distance of ski resorts, trails and other wilderness amenities.

He suspected that the bulk of house sales would occur in the spring, after winter visitors have had a chance to get their fill of winter fun. But in fact, that turns out not to be the case. Of the seven Snoqualmie Pass properties that sold in the winter last year, one sold in October, one sold in November, two sold in December, one sold in January, and one sold in February.

Four Snoqualmie Pass houses sold during the warm weather months, one in March, one in June, one in July, and one in September. Fairly evenly distributed, with winter being the better time of year for sales.

The housing market doesn't always behave the way we expect. Rely on a real estate professional to give you the facts about your market....

Investment Scams

The Northwest Multiple Listing Service has posted warnings about two recent scams making the rounds in the Puget Sound:

WARNING ~ Lease Purchase Scam
September 17, 2010. NWMLS has received information from multiple brokers about a potential lease purchase scam. The scam artists have contacted property owners and brokers in an effort to view and lease high end property. After a lease purchase agreement has been executed, the scammers ask that you hold their first and last month deposit until after they move in. After the scammers move into the property, their rent check bounces, and the seller is forced to go through the eviction process to remove the scammers from the property. The eviction process is time consuming and expensive. Please be cautious when dealing with similar situations and be wary of suspicious people.

Potential Scam Reported from Fraudulent All Cash Buyers
July 23, 2010. NWMLS has received a number of complaints from Brokers about buyers claiming to have the funds to purchase properties for cash, and at closing there are no funds. Brokers reporting the incidents are not sure what the gain for the potential buyer is, however, Brokers who have gone through the entire inspection and purchase process, have wasted valuable time and resources. Please be sure to use caution and remember to verify funds when completing all cash transactions.

In both cases, requesting to see proof of funds would help alleviate problems such as these perpetrated by scammers. As always, when screening tenants for any kind of lease, the owner should be sure to do a background, criminal, employment and rental history check.

These kinds of scams give legitimate investors a bad name. Be forewarned, and know with whom you are doing business! Trust, but verify all information.

Making Your First Offer

So now you are ready to make your first offer. How do you do it?

Listed Properties:
The easiest way to make an offer to a seller is to use a real estate broker on a listed property found on the Multiple Listing Service (note: in July the terminology for real estate “agent” was replaced with the term “broker.” All real estate agents are now “brokers.” “Managing broker” or “designated broker” are the new terms for the brokerage operator). Typically, the seller is paying his/her listing broker a commission to market the property, and this commission is usually split between the listing broker and the “selling” broker, i.e. the agent who brings a buyer. So the buyer pays nothing out of pocket to hire his “selling” broker. But is this broker the “buyer’s agent?”

Some investors think that it is less expensive to deal directly with the listing broker, or that it makes their offer somehow more attractive. In fact, the broker will be acting as a “dual agent,” with their primary allegiance to the seller and not to the buyer! This is why they must disclose this fact in writing to the buyer. Some brokerages will not even allow their agents to serve in this capacity, as it increases their liability and many see it as a conflict of interest. It leaves the buyer unrepresented, and few buyers are as sophisticated as a licensed real estate professional when it comes to negotiating the best price from a seller.

Investors are often looking for real estate brokers to give them “pocket listings” or the inside scoop on hot new listings. Brokers tend to do this only for clients that have signed a representation agreement with that broker. So best to interview brokers with whom you intend to do business, and hire them to seek out the best deals and to negotiate with a seller on your behalf. If the investor has signed a buyer’s agency agreement with a broker, then that broker represents the buyer’s best interests—rather than the seller’s.

Unlisted Properties:
This may include FSBO’s (for sale by owner properties), auction properties, wholesale deals found by bird dogs, or homesellers you the investor uncovered through your own marketing efforts.

Each of these situations should carry the warning label “Buyer Beware.” Due diligence is especially critical in these instances, particularly if you the investor are working without an agent. Without an agent, you will need to understand real estate contracts, contract terms, financing options, legal requirements and disclosures, defects which have to be disclosed, and those that might be uncovered during an inspection, rehab and fix-up costs, market value, sales and negotiation techniques. It is possible to work with a broker to review your offer and paperwork prior to submitting them to a seller, but keep in mind that brokers typically perform other duties to complete a transaction, such as negotiating price and terms in the best interest of their client, submitting paperwork and funds to escrow, following up with the lender(s), monitoring the closing process, help in identifying contractors, inspectors, appraisers and other real estate professionals. The more knowledgeable you are as an investor, the more comfortable you may become handling these details.

If these are new areas to you, you may consider working with a broker on these unlisted properties as well. Keep in mind as there is no listing agreement with the seller, so your broker will expect to be compensated separately. His/Her fee or commission could be paid directly by the buyer, or negotiated into the offer price by asking the seller to pay that fee out of the sale proceeds.

At a trustee auction, the buyer can bid directly on any auction property without a real estate agent or without paying a real estate commission. Many of the foreclosure auction companies, however, require a 3% commission to be paid to them, in exchange for the work they do prior to the auction in researching the properties and posting information on a website available to the client. It would be foolish for any investor to bid on a property at auction that they have not personally inspected.

Face-to-Face:
The most important task of the investor buyer when negotiating directly with a seller is to understand the seller’s motivation. You are there to solve a problem for them. This sale will allow them to move on with an important phase of their life, and the more you know about their situation, the easier it will be to find a solution that will work for both of you.

Whether working with an agent or not, the trick is to find a solution that works for both parties. For an investor, there may be a bottom line price to make a deal profitable. Typically, investors adopt a fundamental formula such as the Maximum Allowable Price. This formula works something like this:

After-Repair Value minus repair costs minus holding costs (financing, buying and selling costs) minus 30% profit = Maximum Allowable Price

Such a formula is dependent on a firm understanding of what the property could command in today’s market in pristine, fixed-up condition. If the seller cannot agree to price or terms that allow for a reasonable profit in today’s market, then the investor must move on. Keep in mind that “no” today does not necessarily mean “no” tomorrow, the longer a property sits on the market, vacant, deteriorating or unsold.

Remember, that if you are not making offers, you are not in the game. So keep the door open, and start making offers!

King County Housing Trends

It is still solidly a buyer's housing market in King County. Inventory is up and median prices are, well, flat....

Both new and active listings of residential and condominium units are up over the same period last year. There were 14,217 total active residential listings in King County through August 2010, as compared to 13,145 at this same time last year. Sellers are becoming more realistic in their pricing, down to an average list price of $556,076 compared to average asking prices of $652,363 last year. Nevertheless, the average SOLD price in 2010 is $431,678; as compared to the average sold price of $428,354 last year. This means, on average, that list prices are still 29% higher than where they need to be in order to sell.

Median home prices in King County hovered around $350,000 ($349,238 in 2010) for both residential and condominium sales. Not surprisingly, days on market have gone up dramatically throughout Washington state, and King County is no exception. While homes took approximately 81 days on market to sell in 2009, they are now taking an average of 122 days to sell in 2010.

What does all this mean? If you are a buyer, there is plenty of inventory from which to choose, prices are more affordable than they have been in years, and mortgage interest rates are at historical lows.

If you are a seller, be realistic about your list price, make sure your house is in pristine, ready-to-show condition, and be willing to offer creative and attractive terms for your prospective buyers.

For more tips on how to beat buyers to the hottest listings, how to sell your home fast and for top dollar, and how to sign up for my VIP Client programs, visit my website at www.HomeLandSeattle.com .

100% Market Value for Your Home

HOW TO GET 100% FULL MARKET VALUE FOR YOUR HOME - GUARANTEED


Because your home may well be your largest asset, selling it is
probably one of the most important decisions you will make in
your life.

In order to sell your home successfully in today's highly
competitive market, this article explains how you can sell your
home for full market value, providing it is priced correctly and
marketed effectively.


MOST IMPORTANT - MAKE SURE YOUR HOME IS PRICED CORRECTLY

While many agents may promise to sell your home for the money you
want, the reality of the real estate market today is that this
simply doesn't always happen. The fact of the matter is, the
majority of homes sell for a price which falls short of what
sellers may have been lead to believe.

There are two factors at play here. On the one hand, you need to
be beware of agents who set the list price on homes at
unrealistically high levels simply to get listings. This is
really unfair because it can set homeowners up for disappointment
and failure.

On the other hand, you have homes that are priced correctly, but
are marketed ineffectively. Without a proper marketing program
in place to ensure a home is exposed to the highest number of
qualified buyers, many homesellers feel forced to accept a lower
offer.

There's nothing worse to a homeseller than to have their home sit
unsold for many months because of improper pricing and/or
marketing techniques. Needless to say, either of these
situations is highly frustrating to any homeseller. But more
than that, it can be financially crushing if you're counting on
the full proceeds of the sale of your home to fulfill some other
obligation.

To prevent this scenario when selling your home, here are some
points to consider before choosing the agent you want to
represent you.

* Will they market your home effectively?
A good agent knows the market and has information on past sales,
current listings, a marketing plan, and will provide their
background and references. Evaluate each candidate carefully on
the basis of their experience and qualifications.

* Are they pricing your home correctly?
Home prices are determined by the marketplace not by your
emotional attachment or by what you feel your home is worth. You
should work closely with an agent who will suggest establishing a
realistic price for your home. They will help you to objectively
compare the price, features and condition of all similar homes in
both your neighborhood and other similar ones which have sold in
recent months. It is also important to be familiar with the
terms of each potential sale. Terms are often as important as
price in today's market.

* Do they set themselves apart from the others by offering
innovative marketing plans to sell your home fast and for top
dollar? Will they set up an aggressive marketing program to
ensure your home is exposed to hundreds of qualified buyers?
How much money does this agent spend in advertising the homes
s/he lists versus other agents. In what media do they advertise,
(newspaper, magazine, TV. etc.) Do they use a 24 hour hotline,
"For Sale" signs, lock boxes, a Tour of Homes program, and
Talking House signs and transmitters? What does this agent know
about the effectiveness of one medium over the other?

* Are they accountable to you?
In other words when they promise to sell your home for the price
you mutually agree upon, do they offer you a guarantee (in
writing) that you will get this amount of money for your home?


YOUR HOME SOLD FOR 100% FULL MARKET VALUE - GUARANTEED

A new and innovative program that some agents offer actually
guarantees, in writing, that you will receive 100% of the
mutually agreed upon price for your home before you list.

HERE'S HOW IT WORKS:
When you list your home with an agent offering the 100% Full
Market Guarantee program here's what happens:
1. This agent will review the Full Market Value Guarantee program
with you and explain the details. (See below for a sample of
information that may be found in such a certificate.)
2. They will then ensure that an aggressive marketing program is
put in place to ensure your home is exposed to hundreds of
qualified buyers.
3. They will also review what is required on your part to have
your home in "showcase" condition in order to maximize the
showing of your home to prospective buyers.
4. No empty promises. These agents put their money where their
mouths are, they are accountable to you. The guarantee is in
writing. If your home sale does not net you the price promised,
these agents will pay you the difference out of their own
pockets.


A SAMPLE FULL MARKET VALUE GUARANTEE CERTIFICATE

This is to certify that, upon the successful sale of your
property (your address here) by (name of agent) during the
contract period specified below, if this property is not sold for
a minimum price of (your agreed upon price here), (agent's name)
will reduce his/her commission to make up the difference between
a lower sale price and the price noted above up to a maximum of
the agent's portion of the commission due to (agent's name) as a
result of this sale subject to the terms conditions laid out in
the agreement.

Such an agreement could also include the following conditions:
* seller agrees to list property for (X) days with (agent's
name).
* the listed price is set within 2% of a mutually agreed market
value price determined on the basis of market conditions and
comparable homes.
* the property is made available for showings during reasonable
hours and maintained in "showcase" condition during these
times.
* the seller allows (agent's name) to execute a full, approved
marketing strategy.
* a successful sale of the stated property must occur before
expiration of the listing agreement.
* the seller understands that this is not a representation to
purchase the above said property.

At the bottom of the certificate there should be a place for you
and your agent to date and sign the agreement.

For more information, visit my website at HomeLandSeattle.com

For Sale By Owner

If you ask anyone who has ever tried to sell their home themselves they'll tell you that from the moment the "For Sale by Owner" sign goes up, the phone begins to ring. Unfortunately, many of those calls will not be from prospective buyers, but rather from real estate agents looking to obtain your listing. Obviously the idea of not having to pay a commission to a real estate agent is attractive to any homeseller. But because of all the issues involved in the process, selling a home on one's own can be challenging as many homesellers will attest.

The key is to be properly prepared. If you are not, your home could remain on the market longer than you expect because you are not attracting and getting offers from qualified buyers. This can be a point where many homeowners become frustrated and consider giving up their idea of selling their home themselves.

However, there are sellers who accomplish selling their own homes, very well. You can be one of them.

This industry report has been especially prepared to assist homesellers, such as yourself, understand the elements involved so you, on your own, can sell your home quickly and for the most amount of profit. To help you prepare, here are 10 inside tips of which you should be aware before you make the decision whether this is the right approach for you.

TEN TIPS FOR SELLING YOUR HOUSE YOURSELF:

❶ Price it Right...Correctly setting your asking price is critical. Setting your price too high can be as costly as setting it too low. Home prices are determined by fluctuations in the marketplace not by your emotional attachment or by what you feel your home is worth. In order to establish a realistic price for your home, objectively compare the price, features and condition of all similar homes in both your neighborhood and other similar ones which have sold in recent months. It is also important for you to be familiar with the terms of each potential sale. Terms are often as important as price in today’s market.

Carefully budget your selling costs and prepare a net proceeds sheet to calculate your best estimate of what you will take away from your home sale. Prospective buyers may also request this kind of analysis of buying costs.

❷ Prepare Your Home for Sale...First impression is crucial. Make sure your home makes a positive statement by carefully inspecting all details and viewing it through the objective eyes of a buyer. Don’t gloss over needed repairs and fix-ups, as your prospective buyers won’t. Your job is to ensure that your home stands out favorably from the competition.

❸ Prepare Yourself With AllNecessary Legal Documentation...
Not surprisingly, there are many important legal contracts and documents which you
must assemble, complete and understand. A partial checklist of forms that you will require for prospective buyers and for legal documentation is as follows:

Seller Disclosure • Purchase Contract
• Mortgage Payoff • Loan Application
• Deposit Receipt • Property Profile Fact Sheet
• Buyer’s Cost Sheet • Closing & Settlement
• Personal Property • Exclusion List
• Property Survey/Plot Plan • Sellers Statement
of Representation

❹ Market Your Home Effectively...
Beyond the sign you will put on your lawn, you should find effective ways to spread the word about your home. Local buyers can be reached through the newspaper, but this is only a small part of the market you are after. Be sure you include the many buyers who could already be working with a Realtor®. To locate them, target as many top agents as possible in your market to see if the criteria of their buyers matches that of your home's.

Because out-of town buyers are also an important target, you should create a strategy to reach these people as well. Above all, you should be very service minded and make it easy for pre-qualified buyers to view your home. Ensure there is always someone available to answer the phone, pick up messages promptly, and be ready to give qualified prospects a tour of your home as soon as possible.

❺ Remain Objective During aShowing of Your Home...
Keep emotion out of the sale of your home, and the best way to do this during a showing is to remain physically in the background. If a prospective buyer says something negative about your home, it is better to counter-balance this point
of view by illustrating the positives rather than becoming defensive.

❻ Pre-Qualify Your Prospects...
Don’t waste your time entertaining buyers who could never afford your home. Research their financial steadiness with respect to job security, salary, debts, liabilities and credit standing.

❼ Negotiate Effectively & Knowledgeably...
There will be many details to resolve before a sale can be considered final: price, terms, inspections, possession date, buyer concerns and objections.

Make sure you fully understand the contract you have drawn up so you can in turn explain details and ramifications to the buyer and make any amendments to the sale that are necessary. The contract you use should be thoroughly examined by your real estate attorney. Some real estate brokers may be willing to help you do this. While this is going on, manage the buyer’s interest in your home so that it doesn’t wane during negotiations.

❽ Know Your Buyer...
Your objective during negotiations is to control the pace and set the duration. Try to determine what your buyer’s motivation is. Does he or she need to move quickly? Do they have enough money to pay your asking price? Knowing this information will give you the advantage in the negotiation because you will know up front, what you will need to do in order to get what you want.

❾ Don’t Move Out Before You Sell...
Studies have shown that it is more difficult to sell a home that is vacant. It looks forlorn, forgotten, simply not appealing. It could even cost you money. If you move, you’re also telling buyers that you have a new home and are motivated to sell fast which can, of course, give them an advantage at the negotiating table.

❿ Know Why You're Selling and Keep it to
Yourself...
The flip side of “understanding your buyer” is to “understand yourself”. Your
reasons for selling will affect everything from your list price to how much time and money you will invest in getting your home ready for sale. Your motivation will help you determine what is more important to you: the money you walk away with, the length of time your property is on the market, or both. Different goals will dictate different strategies. As someone who wants to sell without a real estate agent in an effort to save the commission, it is likely that money is one of your
primary considerations.

Whatever your reasons, however, it is very important to keep them to yourself so as not to place yourself at a disadvantage at the negotiation table. When asked, simply say your housing needs have changed.

HOW TO ASSESS NET GAIN:

To analyze whether or not you will end up ahead by choosing to sell on your
own, consider the fact that most buyers do use a real estate agent because it
doesn’t cost them anything for this service (i.e. the seller pays the agent’s fee).
Be cautious as buyers, investors and speculators who seek out For Sale by Owners are typically those in search of a bargain. The low-ball offers from these types of buyers will often net you much lower in the long run. What you will have to judge for yourself is the following:

1. Be as prepared as possible with your marketing, negotiations, evaluations, showings and all legalities.

2. Consider what it will cost you to effectively market your home and assemble all necessary materials from the “for sale” sign to any contracts?

3. What price will a buyer offer you as a For Sale by Owner minus the costs identified in point 2 above. Is this net price higher than the price an experienced
agent could net for you minus his/her commission?

and if selling your house yourself is not for you, do keep me in mind to help you!

Your Home Did Not Sell?

If your home has just come off the market and hasn't sold, don't be discouraged. The reason it didn't sell may have nothing to do with your home or the market. In reality, your home may have been one of the more desirable properties for sale. If your listing has expired and you still want results, before you put your home back on the market, take a step back and review your situation.

Q Where should you begin?
A. Start by making a commitment to do what it takes to market your house to get it sold. With the right system, the home sale you want is still well within reach.

Q. Why didn't your home sell?
A. Review your previous selling plan and you'll discover that an expired listing usually reflects a problem in one or more of these four major areas:

1. Teamwork,
2. Pricing,
3. Condition of Your Home, and
4. Marketing.

❶ TEAMWORK
Your home is a major financial investment, and your relationship with your Realtor®
should be a full partnership where your needs and wishes are heard, and you receive
detailed and dependable feedback on the progress of your sale. Your agent has a
responsibility to source this feedback from the agents who have shown your home, and
to communicate this to you so together you can make the right decisions about what to do next. How well did this occur the last time you had your home up for sale?

Every Seller Can Boost a Property's Exposure!

1. Make your house easy to show.
- Consider installing a lock box.
- Allow showing times that are convenient to buyers.

2. Use a "For Sale" sign, where permitted.

3. Create a Good First Impression by:
- depersonalizing furnishings and
decor so prospects can visualize
themselves in your home;
- emphasizing curb appeal;
- keeping large pets at a distance.

REMEMBER - The next prospects who visit your home may be your buyers - be ready for them!

❷ PRICING
Did price work for or against you?

The "right" price depends on market conditions, competition and the condition of your
home. Pricing it too high is as dangerous as pricing it too low. If your home doesn't
compare favorably with others in the price range you've set, you won't be taken seriously by prospects or agents. You'll get the facts when you see the statistics!
To help you to establish a realistic selling price for your home, ask your agent to provide you with an up-to-date competitive market analysis to give you:

- a review of comparable homes recently sold or currently for sale,

- an idea of how long other homes have been listed, in order to calculate an average time in which a home can sell in today's market,

- a review of homes whose listings have expired, to understand what issues were at play.

Note: There is no mention of how much you paid for your home or its improvements. Like any other investment, the market value is determined by what a willing buyer will pay and a willing seller will accept.

❸ CONDITION OF YOUR HOME
Show Case Quality!

Is your house someone else's idea of a dream home? When buyers enter are they inspired? Do they think, "I love this house!" Remember, the decision to buy a home is based on emotion, not logic. A house in move-in condition invites a sale.

You need to consider:
- fixing all the little squeaks and cracks
- keeping it clean for all showings
- making it uncluttered
- brightening it up
- what your home shows like from the street concentrating on outside curb appeal.

Plus - Consider taking care of major items,such having your home painted. Offering an
allowance to your prospective buyers, so they can have painting completed is not the same as having done it for them. Now, as they're trying to imagine what that new paint job will look like, they may also be discounting the price even further because of the less-than- perfect look of those walls.

Remember....
A house that presents well, sells for the best price because it outshines the competition. Ask your agent if they can arrange a no-obligation inspection of your home to help you assess the above.

❹ MARKETING
....Marketing Your Home To Sell!
Some Questions You Should Be Asking!

One of the first steps in your marketing plan involves finding an agent who will best represent you. When interviewing agents, test and compare their knowledge and ask each to demonstrate how they will market your home to buyers. Compare, too, how much money each spends on advertising the homes s/he lists, in what media (newspaper, magazine, etc.) and the effectiveness of one medium over the other. Remember, it's not just how much they spend, but how they spend it.

Say goodbye to any real estate agents using old, traditional methods to sell
your home because they don't work in today's market! To be competitive in today's marketplace, agents who use new and innovative, nontraditional marketing approaches are the ones who are getting more homes sold fast and for top dollar.

Get the Best Results!
To get the best results when selling your home, you need to team up with your agent to develop a powerful marketing plan that exposes your property to the widest possible pool of prospective buyers.

And Remember...
Not all agents are the same. The relationship between you and your agent can make the difference between selling your home fast, or not selling it all.

BUYERS ARE OUT THERE...AND THEY WILL COME!
Before You Put Your Home Back on the Market remember:

1. Effective communication is vital between you and your agent.

2. Price your home according to market conditions, competition and the condition
of your house.

3. Be sure your house is in showcase, buyer ready-condition.

4. Have an innovative marketing plan firmly set in place.

Buyer Beware!

No matter which way you look at it buying a home is a major investment.

But for many homebuyers, it can be an even more expensive process than it needs to be because many fall prey to at least a few of the many common and costly mistakes which trap them into either:

• paying too much for the home they want, or

• losing their dream home to another buyer or,

• (worse) buying the wrong home for their needs.

A systemized approach to the homebuying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that’s best
for you.

Here are the 9 most common and costly of these homebuyer traps, how to identify them, and what you can do to avoid them.

❶ Bidding Blind...What price should you
offer when you bid on a home? Is the seller’s asking price too high, or does it represent a great deal? If you fail to research the market in order to understand what comparable homes are selling for, making your offer would be like bidding blind. Without this knowledge of market value, you could easily bid too much,
or fail to make a competitive offer at all on an excellent value.

❷ Buying the Wrong Home...What are
you looking for in a home? A simple enough question, but the answer can be quite complex. More than one buyer has been swept up in the emotion and excitement of the buying process only to find themselves the owner of a homethat is either too big or too small. Maybe they’re stuck with a longer than desired commute to work, or a dozen more fix-ups than they really want to deal with now that the excitement has died down. Take the time upfront to clearly define your wants and needs. Put it in writing and then use it as a yard stick with which to measure every home you look at.

❸ Unclear Title...Make sure very early on
in the negotiation that you will own your new home free and clear by having a title search completed. The last thing you want to discover when you’re in the back stretch of a transaction is that there are encumbrances on the property such as tax liens, undisclosed owners, easements, leases or the like.

❹ Inaccurate Survey...As part of your offer to purchase, make sure you request an updated property survey which clearly marks
your boundaries. If the survey is not current, you may find that there are structural changes that are not shown (e.g. additions to the house, a new swimming pool, a neighbor’s new fence which is extending a boundary line, etc.). Be very clear on these issues.

❺ Undisclosed Fix-ups...Don’t expect every seller to own up to every physical detail that will need to be attended to. Both you and the seller are out to maximize your investment. Ensure that you conduct a thorough inspection of the home early in the process. Consider hiring an independent inspector to objectively view the home inside and out, and make the final contract contingent upon this inspector’s report. This inspector should be able to give
you a report of any item that needs to be fixed with associated, approximate cost.

❻ Not Getting Mortgage Preapproval...
Preapproval is fast, easy and free. When you have a preapproved mortgage, you can
shop for your home with a greater sense of freedom and security, knowing that the
money will be there when you find the home of your dreams.

❼ Contract Misses...If a seller fails to
comply to the letter of the contract by neglecting to attend to some repair issues, or changing the spirit of the agreement in some way, this could delay the final closing and settlement. Agree ahead of time on a dollar amount for an escrow fund to cover items that the seller fails to follow through on. Prepare a list of agreed issues, walk through them, and check them off one by one.

❽ Hidden Costs...Make sure you identify and uncover all costs - large and small - far enough ahead of time. When a transaction
closes, you will sometimes find fees for this or that sneaking through after the “sub”-total - fees such as loan disbursement charges, underwriting fees etc. Understand these in advance by having your lender project total charges for you in writing.

❾ Rushing the Closing...Take your time
during this critical part of the process, and insist on seeing all paperwork the day before you sign. Make sure this documentation perfectly reflects your understanding of the transaction, and that nothing has been added or subtracted. Is the interest rate right? Is everything covered? If you rush this processon the day of closing, you may run into a last minute snag that you can’t fix without compromising the terms of the deal, the financing, or even the sale itself.

Find out if your agent
offers a Buyer Profile System or “House-hunting Service,” which takes the guesswork out of finding just the right home that matches your needs. This type of program will crossmatch your criteria with ALL available homes on the market and supply you
with printed information on an on-going basis. A program like this can help you to affordably, move into the home of your dreams!

Looking to Buy or Sell Real Estate?

Check out my website www.HomeLandSeattle.com for the best information on Seattle real estate!
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Selling Your Home Yourself

PRIVATE SALE: SELL YOUR OWN HOME


If you ask anyone who has ever tried to sell their home
themselves they'll tell you that from the moment the "For Sale by
Owner" sign goes up, the phone begins to ring. Unfortunately,
many of those calls will not be from prospective buyers, but
rather from real estate agents looking to obtain your listing.
Obviously the idea of not having to pay a commission to a real
estate agent is attractive to any homeseller. But because of all
the issues involved in the process, selling a home on one's own
can be challenging, as many homesellers will attest to.

The key is to be properly prepared. If you are not, your home
could remain on the market longer than you expect because you are
not attracting and getting offers from qualified buyers. This
can be a point where many homeowners become frustrated and
consider giving up their dream of selling their home themselves.
However, there are sellers who accomplish selling their own
homes, very well. You can be one of them.

This article has been specially prepared to help homesellers,
such as yourself, understand the elements involved so you, on
your own, can sell your home quickly and for the most amount of
profit. To help you prepare, here are 10 inside tips that you
should be aware of before you make the decision as to whether or
not this is the right approach for you.


10 INSIDE TIPS FOR SELLING YOUR HOME YOURSELF

1. Price it Right.
Correctly setting your asking price is critical. Setting your
price too high can be as costly as setting it too low. Home
prices are determined by fluctuations in the marketplace, not by
your emotional attachment or by what you feel your home is worth.
In order to establish a realistic price for your home,
objectively compare the price, features and condition of all
similar homes in both your neighborhood and other similar ones
which have sold in recent months.

It is also important for you to be familiar with the terms of each potential sale. Terms are often as important as price in today’s market. Carefully budget
your selling costs and prepare a net proceeds sheet to calculate
your best estimate of what you will take away from your home
sale. Prospective buyers may also request this kind of analysis
of buying costs.

2. Prepare Your Home for Sale.
First impression is crucial. Make sure your home makes a
positive statement by carefully inspecting all details and
viewing it through the objective eyes of a buyer. Don’t gloss
over needed repairs and fix-ups, as your prospective buyers
won’t. Your job is to ensure that your home stands out favorably
from the competition.

3. Prepare Yourself With All Necessary Legal Documentation.
Not surprisingly, there are many important legal contracts and
documents which you must assemble, complete and understand. A
partial checklist of forms that you will require for prospective
buyers and for legal documentation is as follows:
* Seller Disclosure
* Purchase Contract
* Mortgage Payoff
* Loan Application
* Deposit Receipt
* Property Profile Fact Sheet
* Buyer’s Cost Sheet
* Closing & Settlement
* Personal Property Exclusion List
* Property Survey / Plot Plan
* Seller's Statement of Representation

4. Market Your Home Effectively.
Beyond the sign you will put on your lawn, you should find
effective ways to spread the word about your home. Local buyers
can be reached through the newspaper, but this is only a small
part of the market you are after. Be sure you include the many
buyers who could already be working with a Realtor®. To locate
them, target as many top agents as possible in your market to see
if the criteria of their buyers matches that of your home's.
Because out-of town buyers are also an important target, you
should create a strategy to reach these people as well. Above
all, you should be very service-minded and make it easy for
pre-qualified buyers to view your home. Ensure there is always
someone available to answer the phone, pick up messages promptly,
and be ready to give qualified prospects a tour of your home as
soon as possible.

5. Remain Objective During a Showing of Your Home.
Keep emotion out of the sale of your home, and the best way to do
this during a showing is to remain physically in the background.
If a prospective buyer says something negative about your home,
it is better to counter-balance this point of view by
illustrating the positives rather than becoming defensive.

6. Pre-Qualify Your Prospects.
Don’t waste your time entertaining buyers who could never afford
your home. Research their financial steadiness with respect to
job security, salary, debts, liabilities and credit standing.

7. Negotiate Effectively & Knowledgeably.
There will be many details to resolve before a sale can be
considered final: price, terms, inspections, possession date,
buyer concerns and objections. Make sure you fully understand
the contract you have drawn up so you can in turn explain details
and ramifications to the buyer and make any amendments to the
sale that are necessary. The contract you use should be
thoroughly examined by your real estate attorney. Some real
estate brokers may be willing to help you do this. While this is
going on, manage the buyer’s interest in your home so that it
doesn’t wane during negotiations.

8. Know Your Buyer.
Your objective during negotiations is to control the pace and set
the duration. Try to determine what your buyer’s motivation is.
Does he or she need to move quickly? Do they have enough money
to pay your asking price? Knowing this information will give you
the advantage in the negotiation because you will know up front,
what you will need to do in order to get what you want.

9. Don’t Move Out Before You Sell.
Studies have shown that it is more difficult to sell a home that
is vacant. It looks forlorn, forgotten, simply not appealing.
It could even cost you money. If you move, you’re also telling
buyers that you have a new home and are motivated to sell fast
which can, of course, give them an advantage at the negotiating
table.

10. Know Why You're Selling and Keep it to Yourself.
The flip side of "understanding your buyer" is to "understand
yourself". Your reasons for selling will affect everything from
your list price to how much time and money you will invest in
getting your home ready for sale. Your motivation will help you
determine what is more important to you: the money you walk away
with, the length of time your property is on the market, or both.
Different goals will dictate different strategies. As someone
who wants to sell without a real estate agent in an effort to
save the commission, it is likely that money is one of your
primary considerations, (see below). Whatever your reasons,
however, it is very important to keep them to yourself so as not
to place yourself at a disadvantage at the negotiation table.
When asked, simply say your housing needs have changed.


How to Assess Your Net Gain

To analyze whether or not you will end up ahead by choosing to
sell on your own, consider the fact that most buyers do use a
real estate agent because it doesn’t cost them anything for this
service (i.e. the seller pays the agent’s fee). Be cautious as
buyers, investors and speculators who seek out For Sale by Owners
are typically those in search of a bargain. The low-ball offers
from these types of buyers will often net you much lower in the
long run. What you will have to judge for yourself is the
following:

1. Be as prepared as possible with your marketing, negotiations,
evaluations, showings and all legalities.

2. Consider what it will cost you to effectively market your home
and assemble all necessary materials from the "for sale" sign to
any contracts?

3. What price will a buyer offer you as a For Sale by Owner minus
the costs identified in point 2 above. Is this net price higher
than the price an experienced agent could net for you minus
his/her commission?


Consider the fact that home sales handled by licensed real estate agents tend to result in higher sales prices, and weigh your options. Private sale can be a rewarding and cost-effective way to sell your home. Just make sure you've done your homework!

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...but if you decide to leave the details to a professional, please keep me in mind!

6 THINGS YOU MUST KNOW BEFORE OBTAINING A MORTGAGE

6 THINGS YOU MUST KNOW BEFORE OBTAINING A MORTGAGE


Mortgage regulations have changed significantly over the last few
years, making your options wider than ever. Subtle changes in the
way you approach mortgage shopping, and even small differences in
the structure of your mortgage, can cost or save you literally
thousands of dollars and years of expense.

Whether you are about to buy your first home, or are planning to
make a move to your next home, it is critical that you inform
yourself about the factors involved.

Industry research has revealed that there are 6 common mistakes
that most homebuyers make in mortgage shopping that can have a
significant impact on the outcome of this critical negotiation.
If handled correctly, these issues could result in a mortgage
that will cost you less over a shorter period of time.

Before you commit your hard earned dollars to monthly mortgage
payments, consider these 6 issues. Effective consideration of
these important areas can make your payments work much harder for
you.

1. You can, and should, get preapproved for a mortgage before you
go looking for a home.

Preapproval is easy, and can give you complete peace-of-mind when
shopping for your home. Your local lending institution can
provide you with written preapproval for you at no cost and no
obligation, and it can all be done quite easily over-the-phone.
More than just a verbal approval from your lending institution, a
written preapproval is as good as money in the bank. It entails
a completed credit application, and a certificate which
guarantees you a mortgage to the specified level when you find
the home you’re looking for.

2. Know what monthly dollar amount you feel comfortable
committing to.

When you discuss mortgage preapproval with your lending
institution, find out what level you qualify for, but also
pre-assess for yourself what monthly dollar amount you feel
comfortable committing to. Your situation may give you a
preapproval amount that is higher (or lower) than the amount of
money you would want to pay out each month. By working back and
forth with your lending institution to determine what this
monthly amount is, and what value of home this translates into at
today’s rates, you won’t waste time looking at homes that are not
in your price range.

3. You should be thinking about your long term goals, and
expected situation, to determine the type of mortgage that will
best suit your needs.

There are a number of questions you should be asking yourself
before you commit to a certain type of mortgage. How long do you
think you will own this home? What direction are interest rates
going in, and how quickly? Is your income expected to change (up
or down) in the near term, impacting how much money you can
afford to pay to your mortgage? The answers to these and other
questions will help you determine the most appropriate mortgage
you should be seeking.

4. Make sure you understand what prepayment privileges and
payment frequency options are available to you.

More frequent payments (for example weekly or biweekly) can
literally shave years off your mortgage. Simply by structuring
your payments so that they come out more frequently, will
significantly lessen the amount of interest that you will be
charged over the term.

For the same reason, authorized prepayment of a certain
percentage of your mortgage, or an increase in the amount you pay
monthly, will have a major impact on the number of years you will
have to pay and could shorten your payment term considerably.
These two payment options can cut years off your mortgage, and
save you thousands of dollars in interest. However, not every
mortgage has these prepayment privileges built in, so make sure
you ask the proper questions.

5. Ask if your mortgage is both portable and/or assumable.

A portable mortgage, where available, is one that you can carry
with you when you buy your next home and avoid paying any
discharge penalties. This means that you will not have to go
through the entire mortgage process again unless you are making a
move up to a much more expensive home.

An assumable mortgage is one that the buyer for your home can
take over when you move to your next home. This can be a very
powerful tool at the negotiating table making it much easier and
more desirable for a buyer to buy your home, and again saves you
any discharge penalties.

6. You should seriously consider dealing with a Mortgage Expert.

Consider dealing only with a professional who specializes in
mortgages. Enlisting their services can make a significant
difference in the cost and effectiveness of the mortgage you
obtain. For example, they can make the process faster thereby
avoiding costly delays. Typically there is no cost or obligation
to enquire.

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Seattle vs. National Housing Market

17 of the top 20 US metro areas saw increases in housing prices between May and June, but Seattle was not one of them, according to the latest Standard & Poor’s/Case-Shiller Home Price Indices report. Phoenix and Las Vegas were the other metro markets where housing prices dropped from May to June.

Nationally these markets saw an average increase in housing prices of 4.2% over the previous year; while Seattle housing prices dropped 1.8% over the same period.

The National Association of Realtors reported that sales of existing homes dropped 27.4% in July from the previous July; and new homes sales dropped 54.6% in Western states from the previous year, according to a joint report by the US Census Bureau and the US Housing and Urban Development Department.

In King County, the median price of single family homes sold in August was $380,000, an increase of 1.3 percent from the year-ago figure of $375,000. Inventory on the NW Multiple Listing Service has gone up 6.4% since last year, creating a strong buyers market for "value-hunters."

Economists believe the housing sales to be artificially low due to the tax credit program pushing some sales earlier in the year. And concern remains regarding the long-term prospects for the housing market. An expected increase in FHA mortgage rates in October may further delay the housing recovery.

Yet Marcus and Millichap expects to see recovery in the local apartment market, due to anticipated growth in jobs and employment in the Puget Sound. 31,000 jobs are to be added in the Puget Sound region this year. New apartment development in the North Seattle/Northgate area however, is expected to increase vacancy rates there.

Window Types and Maintenance

Here's some very good information on window maintenance from my favorite home inspector Jesse Longman with A-Pro:

There are many styles and types of windows. They may be single hung with one sash that goes up and down or double hung with two movable sashes. If the sash moves sideways it is called a slider. Hinged on the side and opening out is called a casement. Hinged at the top is an awning, and hinged on the bottom is a hopper.

There are a wide variety of glass options available today including:

Single Pane: Used almost exclusively until about 1950. Only one pane of glass is used in this type of window.

Double Pane: Double glazed windows have two panes of glass. The space in between is filled with a dried air or an inert gas such as “Argon”. If the seal in between the glass is lost, condensation may develop between the two panes and make the glass difficult to see through. Defective seals cannot be repaired. Discolored glass must be replaced.

Tempered Glass: Tempered glass is made three to five times stronger than regular glass by heating it and then cooling it very quickly. When the surface layer of tempered glass is broken, the entire pane shatters into small rectangular pieces.

Laminated Glass: A layer of plastic is sandwiched between two layers of glass to prevent broken pieces from being released if a pane is cracked or shattered.

Window Maintenance

Periodically inspect the exterior of the windows for physical damage or signs of water damage.

Check for broken, cracked, loose, or missing glass. Check double paned units for signs of seal failure (fogging between the glass).

Regularly check the windows for drafts and smooth operation. Clean & oil regularly. Check for peeling paint.