Home warranties are like health insurance for your home. Like health insurance, you hope you don’t have to use it. But when you do, you’re glad you have it. There are many good companies that offer home warranties, typically for a cost of a few hundred dollars a year.

Does that sound expensive? How about the cost of a new hot water heater AND the removal of the old one? How about a new air conditioning system that has to be replaced and energy standards that now require it be upgraded as well? A good home warranty will cover those things and many more.

As with any “health insurance” policy, don’t assume they are all alike. See what is covered and what is not. See if there is a co-payment or service call charge. See if there are any options to add other coverages in addition to the basic plan. Check out the financial stability and reputation of the company offering the plan. Talk to other warranty owners or real estate professionals for advice.

There are plans that cover new construction as well, after the builder warranty runs out. Again, check out your choices. Don’t assume that you don’t need a plan because the home is new and don’t assume a warranty will cover every single thing that could ever go wrong. Just don’t assume – anything.

More times than not, a home warranty is a good idea. Don’t let your home be caught without “health insurance” when it gets “sick”.

Why are model homes decorated so beautifully? Why do builders spend so much effort on seemingly minor details? It’s because they know that those details make homes sell. Homeowners can do the same things to make their homes sell faster.

The first thing to think is “clean”. Every surface should be cleaned and stay that way. Grout may have to be professionally steam-cleaned if it is discolored. Walls may have to be repainted if scuff marks and hand prints won’t come off with soap and water. Kitchens and baths should be cleaned to the point they gleam.

The second thing to think is “cleaned out”. Clutter is taboo. Clean it off. Clean it out. If need be, have a garage sale or donate excess items to charity. Kitchen cabinets, vanities, closets, should appear spacious, not crammed full. Box up out of season clothing or seldom used belongings and store them in an attic, with a friend, or in a rented storage unit. Counters and furniture should have a minimum of personal possessions on display. Rule of thumb – most people should pack away 75% of personal items and wall hangings (some people are exceptions) before putting a home on the market. Garages should hold vehicles, maybe bicycles, and not much else. Too many people use the garage as a staging area or storage room and this does NOT help sell a home.

The next thing is “fixed”. If there is something not working or not working properly, fix it. It’s a good idea to pay for a professional home inspection BEFORE putting the home on the market. A home inspection may uncover problems that can be addressed in advance that may make a prospective buyer shy away from making an offer if left undiscovered until later. Minor wood rot, small leaks, torn screens, etc. are easy to repair.

Then think “maintain”. If the air conditioning system hasn’t been serviced recently it may be time to have that done. And always remember to clean filters regularly. Touch up paint as needed. Make sure doors and windows open and close smoothly and without squeaks or groans.

Finally, think “first impressions”. How does the home appear from the outside? If the home or roof needs pressure washing, do it. Maybe the home doesn’t need a full repainting but perhaps the trim and door could look better. Old rusty or pitted doorknobs or door knockers should be replaced. Mailboxes and house numbers should look fresh and shiny.

Lawns should be fertilized and treated for pests. Regular yard maintenance should include trimming plants, edging, mowing and weeding. Plants should not block windows or doors. Flowering annuals can make a huge difference in curb appeal for very little money. And mulch defines areas and adds color.

Of the five senses, everything so far has related to sight. Don’t forget the importance of smell in selling a home. Moldy, stale odors should be addressed at the source. Clean is good but the smell of cleaning products should not dominate. It might be a good idea to hold off on frying fish or other smelly foods for awhile, but there is nothing that beats the smell of fresh-baked cookies.

All these suggestions can make a difference, but if you want an objective opinion on your home, your Realtor can offer good advice. And everyone has a friend who has opinions about everything. This is one time it will come in handy! Prepared properly a resale home can show just as well as a model and be just as appealing.

Can this blow up a sale?

Have you ever gotten into a battle over a $3 soap dish? If you have, then you’ve been involved in a contract that did not spell out in writing what personal property was included.

While everyone knows that they should never assume anything, those same people buy and sell homes all the time without putting in writing what personal property conveys and what does not. “Fully furnished” or “turn-key furnished” are descriptions, but are NOT substitutes for a full inventory that is a part of the contract.

Just listing what is NOT included may help to clarify the issue but the contract must still contain a written inventory to be clear in legal terms. Many sellers think that buyers assume that personal items are not included but what is considered “personal” is subject to interpretation.

Personal items are not the only source of misunderstandings. That chandelier that has been in the family for generations is considered included as a light fixture unless it is written into the contract as an “exclusion” and agreed upon by both parties. That goes for appliances, ceiling fans, child-proof pool fences, and the fancy shower head in the master bath. Even Aunt Betsy’s prize rose bush can become an issue.

Property is typically conveyed in the manner it appeared on the day of the contract. Substitutions are not allowed unless both parties agree in writing.

The phrase “in writing” is the operative one. Clear, written agreements leave no room for interpretation. If an inventory is not available on the day the contract is written, language can be added to state that a written inventory must be submitted and agreed to by both parties within a certain number of days or the contract is voidable.

EVERYTHING to be included must appear on the inventory. A ”turn-key furnished” home inventory will list everything down to the last teaspoon and soap dish. Do that and no one will be shouting for a lawyer because a $3 soap dish went missing at closing.

Is it time for YOU?

Now is the time to sell. Now is the time to buy. That may sound confusing, but it’s true. Everyone in the media says prices are down. And they are correct. That is exactly why buying or selling makes sense.

Here are 10 reasons you should buy or sell NOW:

1) Look at it this way. If the home you are selling will net you less, the home you are buying will also cost you less. If you wait till prices go up on your home, prices will have risen on the home you want to buy.

2) Another reason to go forward is that interest rates have stayed low. Once the economy bounces back, there is no guarantee that interest rates will remain at these rates. That not only means buyers can afford less home, but sellers will find buyers may be priced out of their home’s range.

3) If you need another reason to buy now, think about the homestead exemption. Buying now, while prices are low, locks your value in for homestead exemption. Your rates can never exceed the yearly cap percentage, calculated on the value of the home at its assessed value when you purchased it. So buying now, when prices are lower, will save you money year after year on taxes.

4) If you’re a buyer, you may be reluctant to buy now when everyone says that prices may go even lower. But if you look at the statistics in the areas you are considering you may find that prices have gone as low as they probably will, and may even be inching back up already.

5) Waiting longer to buy will not get you a “bargain”. True bargains don’t exist for the average home buyer. The so-called “bargains” to be had in the market will probably be in areas that were investor-driven, with highly leveraged owners who may have to sell short. But that doesn’t matter to the average buyer who is buying a HOME, not an investment.

6) Another reason it’s a great time to buy is that the selection has never been better. There is a greater inventory of available homes out there than in years past. That laundry list of “must-haves” is easier to find when there are more homes to choose from.

7) If you’re a seller it’s hard to make a move when everyone says “wait.” Yes, prices will go up later on. They always do. So get your calculator out again. Figure out how much it’s costing you to own and support the home each month. Don’t forget the taxes, the insurance, association fees and the maintenance costs. Add that to the mortgage payment and you’ll see how another six months or more will affect your wallet.

Ironically, it’s the best time to use a Realtor. With the slow-down in the market, agents aren’t running around with frenzied buyers constantly. They have more time to offer buyers and sellers. They also have access to current market data that can help a seller price and market a home effectively and can guide a buyer through the thousands of homes available to the ones that best meet the buyer’s needs.

9) Lenders are more eager than ever to help buyers and sellers. Sellers who find the next home they desire can sometimes get a bridge loan that enables them to buy the next home while waiting for the first one to sell – without a second mortgage payment. Buyers can find programs to meet almost any situation that will enable them to afford a home with a mortgage payment that fits their needs.

10) Finally, the market offers both buyers and sellers more choices than we have had for awhile. Waiting will likely only offer fewer choices and less appealing options.

So whether you are buying or selling, NOW is the time!

It’s easy to fall in love with a home that is decorated exactly to your taste. It’s easy to fall in love with a view or amenities or location as well. But you don’t live in a view. You don’t live in amenities. You live in a layout and a design that suits how you spend your time and your priorities.

That beautiful view may be great but if the amount of windows and doors leaves you with no space to put your furniture, you may ONLY be able to enjoy the view!

So what is important when it comes to a floor plan?

* Start with the number and type of rooms.

* How many bedrooms do you really need? Don’t plan for all the eventual family members you MIGHT add or all the company you MIGHT have. Plan for what is real and reasonable.

* Are there enough bathrooms so that everyone in the home can get ready at the same time or do you need to shower in shifts?

* Do you really need both a family room and living room? Many people feel they need both and then find that the only time the living room gets used is at major holidays.

* Do you entertain frequently? Then a large kitchen that is open to the rest of the home might be important so that you are not isolated from your guests.

* Closets. Is there such a thing as too many or too big? Sometimes an extra closet or an over-sized one can replace the need for a room by allowing the storage to replace additional furniture.

* Then look at details. Are there enough cabinets? Are there enough windows to give you the amount of light you desire without taking up valuable wall space? Is the shower big enough? Are linen closets located in convenient areas in the home and are there enough of them? Do you need room in the laundry area for messy things or storage? Is the garage big enough for your current and PROSPECTIVE vehicles and still leave room for bicycles, tool boxes, yard equipment, etc.?

* Finally, is there wasted space? Halls and foyers are generally not usable space. You may find a smaller overall home actually gives you more USABLE space once you look at room sizes and eliminate halls.

So when looking for a home, you need to look beyond décor and location and amenities and see what is important. Find the right floor plan and it will serve your needs well for years to come.

It doesn’t matter whether you are the buyer or seller, when it comes to contracts. No one wants to pay too much or accept too little. No one wants to be taken advantage of. Everyone wants to win.

A good contract is a balancing act between price and terms. Written well, there are things in the contract to benefit both sides. So why would someone write a contract that appears lopsided?

Let’s start with terms. One of the most common terms is the financing contingency. Unless the buyer is offering all cash, there is usually a financing contingency. But unless the terms of the contingency are spelled out, the seller is left wondering just what kind of loan the buyer is going for and if they have a snowball’s chance of getting it.

So a good financing contingency will spell out the details of what the buyer is attempting to do: amount of the mortgage, type of financing, down payment, etc. If a buyer fails to be approved for the financing spelled out, he has the ability to “walk” from the contract and all deposits are returned to him. Being pre-approved for a mortgage gives the buyer the ability to have a shorter mortgage approval date and therefore provide more security for the seller.

But that binder deposit is the only assurance that the seller has of the buyer’s good faith. So the larger the deposit, the more assurance the seller has of the buyer’s intent.

How soon is the closing date? A typical closing might be 30-45 days from the date of acceptance of the contract. However, this is negotiable. A faster closing might make the seller happy to have cash in hand. Longer closings will usually require some concession or a larger down payment to assure the seller that the property will close as scheduled.

Inspection clauses are built into the typical contract and are written to be fair to both sides. Changing those terms or timelines can tilt the favor to one side and make the contract less likely to be accepted.

In most states, written verbiage in a contract supersedes the typewritten. So be careful not to negate a portion of the typed contract by writing in unnecessary notes.

Finally, we get to price. If you are the buyer, how much to you offer? If you are working with a Realtor, that person should provide you with information regarding recent sales and market trends.

For example, if most homes in an area are priced very similarly for quality and other factors, then they should have similar market values. If those homes have sold for approximately 5% off list price and this home is listed realistically, then the seller will have the expectation of something around the same number.

A buyer who wants to test the seller may come in a bit lower, but too much lower and the result is an insulted seller who won’t take the contract seriously.

The reverse is true as well. The seller who refuses to budge on anything runs the risk of offending the buyer, who probably has a second choice lined up and may just move on.

No one intentionally writes a “bad” contract. Mis-information or advice is more common. But in real estate contracts are about “homes”. The seller is emotionally attached and the buyer is becoming attached as well. So both parties need to recognize that there is more going on than just business. A well-written contract with reasonable price and terms is likely to be negotiated and accepted. When that happens, both buyer and seller win.

The first step in finding a “deal” is to define what a “deal” is. Is a “deal” getting the biggest price reduction off the list price? Is a “deal” the property that will appreciate the most over the next five or ten years?

Very often the best way to decide if a property is a deal is to look at supply and demand. If the supply exceeds the demand, as it does in most of today’s market, then there is a better chance of getting a price reduction off the list price. However, if the demand is not there, will the property appreciate over the next few years at an acceptable rate?

If the demand is high, then it’s unlikely that a seller will reduce the price very much, if at all. Yet if that demand continues in the future then the value of the property will generally appreciate at or above market rates, making today’s full price a “deal” in the future.

So how can you determine “supply” on a property? One way is to look at its “duplicatability”. If this home or neighborhood can be duplicated right down the road at the same price or close to it, then the supply may always be adequate to meet the demand. If the home or neighborhood is located in a unique area or has features that cannot be duplicated, then the supply is limited.

To determine “demand” look at features that will always hold appeal, such as location.

For example, navigable water is generally a sound buy – they aren’t making any more. But not all navigable water is created equal. Historic data on sales in one area can be compared to another to see what demand has been like over time. Other neighborhoods that have locations on or near the beach, or downtown, or historic properties also can not be recreated.

Within a neighborhood, properties also have locations that make them unique. A water, preserve, or golf course view may make them special. Lot size, mature landscaping, privacy, or reduced traffic can be important features. Getting a “steal” on a property with an inferior location may look great today but down the road the next buyer will expect to “steal” it as well because other locations will have greater appeal.

The next step is to look at the past sales. Look both at the recent and the long term sales history. Look at the list vs. the sales prices, the number of days on the market, and the price increases over time. Look at the overall number of sales in an area or among comparable homes. Uniqueness does not in and of itself mean there is a high demand. Again, the only home with that feature may mean there was no demand to build more and demand will probably be low in the future.

Remember the old rule of the three most important things in real estate: location, location, location. Great locations hold their value in “down” markets.

Of course practical considerations have to play a part. Even if you have champagne taste and a beer budget you can still find the best property within your price range that fits your criteria.

Do not forget to do your homework. Check with the county to find out what is going on in the area over the next few years. Additional developments, road expansions and extensions are all a part of the public record. All those factors will affect future supply and demand so don’t overlook them. Do not rely on a seller or realtor to supply you with information that they may assume you already have.

The next thing to do when the property has been identified you want is to write a “clean” contract. That means a contract without a lot of contingencies and concessions. Writing a good contract is a balancing act between price and terms. Sellers look at the contract and must see something that is of benefit to each side. So a contract that makes a lot of demands on the seller and asks for a really low price runs the risk of rejection without a counter.

Having the financing worked out in advance so that the seller has confidence in the buyer’s ability to close is a major term that a buyer can address prior to writing the contract. Understanding the clauses in the contract that pertain to inspections and such can prevent extraneous clauses from being added that only complicate the contract negotiations.

Finally, remember this. Unless you are an investor, you are buying a “home”. Certainly you want to know that the home is worth what you are paying and that it will hold its value. But it is a home – the play you and your family and friends will enjoy for years. Sometimes, the best “deal” is to pay retail for the best property you can afford and then sit back while it appreciates in value. In a few years your friends may call you a genius for that “deal” you got!

Marketing a home properly

When you hire a real estate professional you make that decision in part on the marketing plan the agent has for your home. The agent has two groups to market to: (1) - potential buyers and (2) - other agents (who are working with potential buyers).

It’s All Visual

Both agents and buyers will be exposed to your home through a variety of sources, in print and online. Television is another medium used more and more. All of these are VISUAL mediums. And with digital photography there are more opportunities than ever to expose the features that make a home desirable and unique.

At a minimum, an agent should take a photo of the home for the multiple listing service. The service itself can send a photographer but the listing agent is a better judge of what shot best serves the home.

In addition, the multiple listing service allows additional photos that both agents and potential buyers have access to. At a minimum, the agent should take a number of shots to highlight the features that are most appealing to a prospective buyer.

More is NOT better

The home is not being documented in order to rebuild it. The purpose of the photo is to entice someone to inquire about the home. Photos of guest bathrooms, laundry rooms, and empty spare bedrooms are unnecessary unless they are so stunning they will inspire someone to call. Too many boring photos only frustrate the viewer, who may move on to another property.

Nowadays agents have access to virtual tours as well. Sometimes these include still shots but they also allow panoramic shots that can show off a view, the layout of important rooms, etc. Every agent has access to this important tool and every listing deserves one. There is a cost to the agent, but the value to the seller’s home is huge.

It has been proven that buyers who are using the internet to look for a home (and over 80% begin their search that way) ignore most listings that don’t provide multiple photos and virtual tours. Many websites that provide those searches favor properties with virtual tours and multiple photos and give them priority in their display sequence. The home with no photos is likely to end up last in the search list.

Check It Out

All sellers should ask their agent for a copy of the listing as it appears in the multiple listing service (and most provide it without being asked). But they should also look at it online themselves to see how the photos appear and how many there are. More can always be added if an important feature of the home was overlooked or a shot didn’t turn out just right.

Sellers should also view the virtual tour online to see how easy it is to view and if the captions with the photos give added information to the viewer. (Some agents overlook this opportunity to point out highlights in the shots.)

Sellers should also look at both the agent’s website and the company’s website to see how homes are searchable. Can a potential buyer define the search criteria or do they just get a list of homes and one photo? Are there links to the visual tours and multiple photos? Is there a mapping feature? (These are good things to check out BEFORE hiring the agent.)

Some agents take the visual marketing of the home extremely seriously and may create CDs of the virtual tour to have at the property for a prospective buyer to take with them. Ask your agent how they plan to expose the property to the market. If their plans are aggressive and take advantage of the technology available, chances are your home will be found by the right potential buyer. If not, maybe this is the wrong agent or company to do the job.

Hiring an agent to list your home is a complex issue and marketing should be a part of the consideration. After all, your home deserves it.

You walk into a sales office for a builder or developer and there is already a salesperson there to help you – wrong! Legally, that salesperson represents the builder/developer and has a “No Brokerage Relationship” with you.

That means that, as helpful as they are, they always have the builder’s interests at heart. That’s where having a Realtor® working with you makes sense.

First of all, Realtors® know where to take you. Part of their job is to research builders and developers. They know which builders build which type of product and where. They know pricing, construction standards, design types, etc. They also know the reputation the builder has for delivering the home they promise and how they back it up with service.

Not all builders are created equally. Some builders have more construction quality or service issues after the sale than others. Some offer better warranties than others. Some are more financially sound and better able to ride out the peaks and valleys of this business.

Second, a Realtor® knows what you want. They will help keep you focused on achieving your goals and won’t let you get swept away by beautifully decorated models or a smooth sales pitch.

In addition, a Realtor® will make sure you make an informed decision regarding available upgrades. While you might be thinking a particular upgrade would be nice, the Realtor® may be ready to advise you that an alternative would be more desirable when the time comes to resell.

Your Realtor® can also be an asset during construction. There may be periodic inspections or walk-throughs and your Realtor® can be another pair of eyes. While you are mentally arranging the furniture the Realtor® is making sure the outlets are in the right places.

Realtors® stay on top of market conditions. They know which builders are “hungrier” and willing to offer incentives to buyers. They may even know upcoming incentives that could be made available to you earlier.

Because most builders have a strong relationship with the real estate community they appreciate and welcome Realtors®. Real estate commissions are budgeted into their cost of doing business.

That means that using a Realtor® to buy new construction won’t cost you a penny extra (and not using one won’t save you a dime). So take advantage of the expertise and advice a Realtor® has to offer the next time you are considering buying new construction.

Hire a full time Realtor

What’s the worst that can happen if you use a part-time hairdresser? Maybe you wear a hat for a month but then it’s over and you can fix the problem. What’s the worst that can happen if you use a part-time brain surgeon? Let’s not go there.

Obviously when it comes to your health or other important matters you want the skills and advice of a full-time professional. Why should real estate be any different? After all, your home is your largest single asset.

At any given time, there are thousands of homes on the market in dozens or even hundreds of neighborhoods. No real estate agent will know everything about every one, but a full-time agent will be able to understand the trends that are taking place because they are out there every day.

Full-time agents spend time studying market information, attending seminars, pre-viewing homes, visiting builders, etc. All the things that take time. They spend time with home inspectors, lenders, and other related professionals. Not only do they take the required continuing education that the state demands, they earn designations that demonstrate additional skills and education.

Laws and regulations are constantly evolving. Required disclosures change, as well as contract language. A full-time agent will be better prepared to discuss those changes and their impact.

Technology has also demanded more skills of an agent. With over 80% of home buyers beginning their search on the internet, today’s agent must understand websites, virtual tours, digital photography, and search engine visibility. Most full-time real estate agents are willing and able to invest the time and money it takes to use technology in ways that benefit their customers.

Finally, you want a skilled negotiator in your corner, whether you are buying or selling. Negotiating isn’t a skill easily acquired or maintained if it’s only used occasionally.

That brain surgeon isn’t paid for the time spent that day on that operation. He is paid for the time spent becoming the skilled professional that will ensure a successful outcome. Whether you are choosing a brain surgeon or a real estate agent, you deserve someone whose primary focus is you!