Our lead story in this month’s Home Matters, brought to you through our company's membership in RISMedia’s Real Estate Information Network® (RREIN), examines how your presence at a showing can actually work against you when trying to sell your home. Other topics covered this month include the debate between renting vs. buying and what you need to know about testing your home for radon. We hope you enjoy this month’s edition of Home Matters and as always, we welcome your feedback. Email us anytime!
If your home is on the market, you know just how important it is to keep it clean and tidy in case your agent calls with a last-minute showing. While piling in the car each time a showing rolls around can feel like a chore, real estate professionals across the board agree that it’s best to be out of sight when a potential buyer comes to view your home.
When buyers walk into a home and see the owners present, they become uncomfortable and feel as if they’re intruding, which may cause them to race through the home without getting a real feel as to whether or not they like it.
One rationale for staying behind is that the sellers often think those looking at the home won’t be able to find everything and they must be there to point out the important features. Another reason homeowners think it’s necessary to be present during a showing is because they feel they can better “sell” the property by talking about the positives.
Truth be told, that’s rarely the case. Your real estate agent is trained in providing all the details related to the home, the property and its surroundings, and they also know how to read prospective buyers so they can relay the information at an appropriate time. In fact, if you bombard a seller with too much information all at once, you’re going to leave a less-than-favorable impression.
Let the buyer discover the wonderful things about your home on their own. If you have a nice home with all of the features they’re looking for, they don’t need you pointing things out. You may even hurt your chances of getting the home sold by calling attention to something they aren’t looking for.
When prospective buyers know you’re there —or following them around room to room—they are less likely to open closets or doors because they feel as though they’re intruding. This keeps them from viewing everything the home has to offer, making it less likely that they’ll be interested in putting an offer on the home.
While some sellers choose to wait outside in their car or on the patio during a showing, a better alternative than taking the tour with a prospective buyer, it’s still not ideal. Again, if prospective buyers feel like they’re being rushed, they aren’t going to spend an adequate amount of time viewing your home. Instead, they’ll rush through the home and move on to the next property on their list.
It’s understandable that sellers don’t always want to leave—especially when several showings are scheduled for one day. Plus, with little ones, dinners to cook and work to be done, it’s not always feasible to get up at a moment’s notice to leave. This is especially true during the cold winter months, when you can’t simply take a walk around the block or head to the park and read for an hour.
Remember, you want buyers to spend as much time as they want in your home, envisioning the possibility of living there. While getting out of the house may not always be convenient, it’ll be worth it in the long run.
For more home selling tips, contact our office today.
In today’s volatile market, getting the financing you need to purchase a home is often a confusing and time-consuming process, however, it’s crucial that prospective buyers do their homework before picking the loan that’s right for them. VA loans, which are often overlooked, are a great option for past and current military personnel looking for financing in today’s more stringent mortgage environment.
Established in 1944 as part of the Servicemen’s Readjustment Act, VA loans are available for any individual who has served in active duty in any branch of the U.S. military for a minimum of 90 days.
“The beauty of this loan is that it allows financing without requiring a down payment,” said Eric Kandell, founder of lowvarates.com. “It also doesn’t allow the mortgage lender to charge the veteran private mortgage insurance.”
A VA loan does require the borrower to pay a one-time funding fee on their purchase, however, which can be paid up front or financed into the total cost of the loan. The funding fee for regular military members is 2.15 percent of the loan while Reservists pay a fee of 2.40 percent.
In addition to servicemen and servicewoman, non-active duty personnel, such as individuals in the Army Reserves or National Guard, may apply for a VA-backed mortgage provided they have completed six years of service. The spouses of deceased or missing military members are also eligible if they have not remarried.
“I’ve closed more VA loans in the past two years than in the past decade,” said Steve Thorne, area manager for First Financial Services, Inc. in Raleigh, N.C. “It really is a great benefit to the veteran in the ‘New Mortgage World.’ The key to getting more veterans to take advantage of this benefit is simply an awareness of the benefit.”
Statistics provided by the Department of Veteran’s Affairs show that there are approximately 25 million homeowners currently eligible for a VA loan. However, only 10-15 percent of those who are eligible have taken advantage of the VA loan program when buying or refinancing.
One reason for the low numbers is that for many years leading up to the mortgage crisis, there were numerous conventional mortgage products that were easier or more economical to the veteran than the VA loan.
“In the wild, wild west of mortgage lending from the early 2000s to 2008, 100 percent financing was commonplace,” Thorne said. “So why pay the VA funding fee just to have 100 percent financing? Not to mention the VA control of the appraisal process, understanding residual income and all the additional disclosures. It was a more cumbersome process than the ‘come on down, everybody gets a loan’ of the conventional arena.”
Many veterans, especially those not so recently discharged, don’t fully understand the benefits of a VA loan, and many aren’t even aware that they’re entitled to one. With a VA loan, veterans can literally buy a home with little to no money out of pocket.
“In the past, veterans were told about other financing on the market and people were more inclined out of ignorance to use non-VA loan financing,” Kandell said. “It’s a great loan and you are going to see a massive shift in numbers going forward, as these same real estate agents will be begging you to go VA now.”
Those interested in learning more about VA loans should talk with a mortgage representative to discover their options for getting the best use of these funds.
Borrowers who received a dishonorable discharge from any military branch are not eligible.
For more information about VA loans, contact our office today.
According to the Environmental Protection Agency, nearly 1 out of every 15 homes in the U.S. is estimated to have elevated levels of radon. The colorless, odorless and tasteless gas is estimated to cause thousands of deaths each year, making it crucial that you take the time to get your dream home tested for radon before you sign on the dotted line.
While you can’t see, smell or taste radon, exposure to the gas can cause lung cancer. In fact, the Surgeon General has warned that radon is the second leading cause of lung cancer in the United States today after smoking.
Radon comes from the natural (radioactive) breakdown of uranium in soil, rock and water and can sneak into the air you breathe by penetrating the structure through cracks in the foundation. The gas can be discovered in all parts of the country and can cause a dangerously high indoor radon level in any home.
While it’s not a requirement that you test for radon when you make an offer to buy a home in many places, it’s probably a good idea to ask for a Radon Inspection Contingency.
A Radon Inspection Contingency can put some structure into getting a “short-term” radon test done on any home to make sure the levels of radon on the lowest level of the home are below the 4.0 pCi/L level.
This target level was set by the U.S. Congress for indoor air quality, and the U.S. EPA enforces that mandate.
Buyers interested in purchasing a home shouldn’t be the only ones concerned with radon testing. In fact, if you’re getting ready to sell your home, you should test for radon before you put the home on the market. This can save valuable time during a real estate transaction, as long as you have all the paperwork and testing data to show the prospective buyer.
The quickest way to test for radon is with short-term tests, which remain in your home for two to 90 days, depending on the device. The most common detectors are charcoal canisters, alpha track, electret ion chamber, continuous monitors and charcoal liquid scintillation.
When performing a radon test, be sure to test the lowest level of the home that you currently live in, or a lower level not currently used, but which a buyer could use for living space without making renovations. The result of the radon test will provide important information about your home’s radon level that potential buyers may want to know.
If you find that your home has high levels of radon, reducing the radon level is an easy process. Adding a radon reduction system can reduce radon levels in your home by up to 99 percent, and the system costs less than $1,000 to buy and install.
Another option is to install a Soil Suction Radon Reduction System in the basement near a sump pump system so that it can be vented outside where a pressure fan is installed.
New homes can be built with radon resistant features that minimize radon entry and allow for easier radon reduction if high levels should be determined to exist. These features cost much less to install during the construction process rather than waiting to add to an existing home later. Some municipalities and states are even considering adopting radon resistant construction features as a part of their building codes.
Buyers and sellers should both be smart about radon. Every new home should be tested after occupancy, even if it was built with radon-resistant features or has a radon reducing system installed.
To learn more about radon testing, contact our office today.
Today’s real estate market pluses include low mortgage rates and attractive prices, but purchasing a home is still difficult for many Americans. Renting and buying both have their benefits and challenges depending on each person's circumstances. It's important to weigh the pros and cons.
According to a 2010 study of the Joint Center for Housing Studies of Harvard University, over the last five years, the number of renter households rose nearly 10 percent (3.4 million).
A good rule of thumb when considering whether to rent or buy is to predict how long you will stay in the home. If you plan on moving and selling in less than five years, renting is probably a better option right now.
One of the main factors keeping people from buying is the difficulty in obtaining the mortgage they want to afford the property they desire, causing them to either shop for something smaller and less expensive, or rent for a while until they can improve their financial situation.
The main problem most people have with renting is that you won’t be gaining equity and it feels like you’re throwing your money away. Plus, there’s no tax advantage to renting and you are limited with what changes you can make to the home.
Still, there are many benefits to renting. For one, you don’t need to make a long-term commitment, and it gives a future homebuyer the flexibility and time to figure out the best course of action both personally and economically. Other positives include being able to move when the lease expires, there’s less maintenance work required, and you don’t need to have a large sum of money available up-front to live in a nice home.
For those that choose to buy, over time the mortgage balance decreases and equity builds. You also have the freedom to make any decisions you want—including tearing down walls, building decks and remodeling any room the way you have always dreamed.
While every situation is unique, there are a plethora of rent vs. buy calculators available on the Web that can also help make your decision easier.
To discuss whether renting or buying is right for you, contact our office today.
