Reasons Why Your Home Won’t Sell

Posted on January 31, 2011. Filed under: home selling, Tips | Tags: , , , , , , , |

Has your lawn grown up around that “For Sale” sign? Have the wasps moved into the lock box on your front door? Did you just receive an invitation to your real estate agent’s retirement party?

Say you’ve had your home for sale for months and not a single home buyer has decided to make an offer to you. You’ve spent a lot of money on home advertising, made a number of price reductions and nobody calls you. Maybe your agent now has an expired listing. It’s possible that you’ve even buried a St. Joseph’s statue in your yard, and that didn’t bring any offers, either. What can you do when it’s plain that your home isn’t selling?

If so, chances are your home sale fizzled. Here are the six most-common reasons why homes don’t sell and what you can do about it.

Your home is overpriced

Overpricing is the most common reason homes don’t sell. When you ask an unrealistic price, it sets in motion a process that often works against you. If your home remains on the market for too long, agents and buyers may begin to wonder if there are other, perhaps, more serious reasons why it isn’t selling.

Your home doesn’t ‘show’ well

Your home is competing against shiny new houses in those pristine subdivisions out in the suburbs with their attractive prices, incentives and community amenities.  Face it: Even the best old house needs a little makeover if it hopes to attract a qualified buyer. The good news is most of the work will be cosmetic and relatively inexpensive: a new coat of paint, a few attractive window boxes, a thorough cleaning of floors and carpets. Voila! The place may look good enough to reconsider

You’re in a bad location

Nothing has a greater effect on your home’s value than its location. If your home’s location is less than desirable, your options are somewhat limited. A good real estate agent will do his best to help you accentuate the positive and eliminate the negative of your circumstances, say by using foliage to screen off offensive adjoining properties or dampen traffic noise. The best way to compensate for a poor location is to reduce your asking price or offer attractive incentives such as seller financing or a lease option with rent credit.

You have a lousy listing agent

What’s more, if your agent is abrasive, arrogant or otherwise difficult to work with, other agents may not want the hassle of showing any of their listings to prospective buyers.

You are battling competition or market conditions

In real estate, market conditions are affected by any number of external forces, some of them predictable (the weather, sort of), some of them unpredictable (the local economy, interest rates, public optimism or pessimism). While in a “hot” or seller’s market, homes go fast. Inventory (homes on the market) may be low, meaning less competition for you. Chances are better that you will get your asking price in a hot market; in fact, it is not uncommon to even be offered more than your listing price. But in a “flat,” “cold” or buyer’s market, sales slow to a trickle, inventories grow and buyers can find bargains, especially when they know the seller is motivated (i.e., paying on two mortgages).

You have ineffective marketing

Gone are the days when an agent could simply place your listing with the local multiple listing services, hold a halfhearted open house and wait for another agent to bring forth a buyer. Today’s top performers launch a multilevel marketing plan that includes listing tours for area agents, newspaper and even TV ads, weekend open houses, listing fliers and placements in local real estate publications. Also, the Internet also had changed the face of real estate. According to the National Association of Realtors, today more than one-third of all home buyers use the Internet for house hunting. The best real estate agents are computer-savvy. They have your listing in color on their laptops to show clients and communicate frequently via e-mail, a particular boon when working with out-of-town buyers.

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Avoid Foreclosure Tips

Posted on February 24, 2010. Filed under: Tips | Tags: , , , , , , , |

Avoid Foreclosure Tip #4: Minimize spending. Eliminate optional expenses such as cable TV & internet, club memberships, etc.

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Avoid Foreclosure Tips

Posted on February 23, 2010. Filed under: Tips | Tags: , , , , , , , |

Avoid Foreclosure Tip #3: If getting further behind your payments, contact your lender for options to help you.

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Avoid Foreclosure Tips

Posted on February 22, 2010. Filed under: Tips | Tags: , , , , , , , |

Avoid Foreclosure Tip#2: Avail forbearance agreement. You pay portion of your regular payment or no payment at all for a period of time.

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Government Announces $1.5 billion Housing Fund to Five States

Posted on February 22, 2010. Filed under: Homeowners, Real Estate News & Updates, US Housing News | Tags: , , , , , , , , , , , , , , , |

President Barack Obama announced a new housing fund that would be given to five states hit by the housing crisis. The total corpus involved is $1.5 billion which would be spilt amongst these states based on their demands and requirements. The five states are Michigan, Arizona, California, Florida and Nevada.

They are the ones that have been the hardest hit by the recent foreclosures during the financial recession. They have seen the house prices fall by as much as 20 per cent. Out of the 5 states, Michigan is the least hurt.

The money is allotted to stop the number of foreclosures being filed on those states. The money will be given to the unemployed homeowners, who would then be able to pay to the banks. It would also help the struggling borrowers.

A year ago, president Obama declared a $75 billion Home Affordable Modification Program, to solve the same problem. A research shows that it has helped only 116,000 homeowners across US. Another 830,000 are still under trial.

The move is the administration’s latest attempt to fix its signature foreclosure-prevention effort, the Home Affordable Modification Program, which has been widely panned for not doing enough. A senior Obama official cautioned that the new program is just another tool in the White House arsenal, not a full solution to the housing woes facing the unemployed and borrowers.  “As important as $1.5 billion will be to these five states, it’s not going to solve what is a catastrophically large problem,” said the senior official, speaking to reporters on a conference call. “It’s going to help as many of the other programs do.”  The senior administration official was vague about how the money would help the target audiences, saying mainly that these groups are intimately involved in their local housing markets.

The current amount will come from the $700 billion Troubled Assets Relief Program (TARP), which too has faced its share of critics.

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Make money in 2010: Your home

Posted on February 22, 2010. Filed under: Homebuyers, Homeowners, Ideas & Information, Real Estate News & Updates, Tips, US Housing News | Tags: , , , , , , , , , , , , , |

After three years of slumping house prices, the end of the real estate bust may finally be in sight. Home sales are rising, inventories are shrinking, and most economists believe values nationwide will hit bottom in the second half of the year — but not before falling another 5% to 10% first.

Prices after that should stay mostly flat until 2012. “Next year will clearly be better than this year,” says Mike Larson, a real estate analyst at Weiss Research. “Prices may drop a little more, but the lion’s share of the damage is behind us.”

One positive byproduct of the 30% plunge in prices since the 2006 peak: Houses are now more affordable than at any time in the past two decades, according to the National Association of Home Builders — good news for anyone looking to buy.

Then too, mortgage rates, now at 5.15%, should stay low for the first few months, thanks in part to the Federal Reserve’s ongoing purchase of mortgage-backed securities. But if the economy really picks up steam and inflation fears resurface in the second half of the year, rates could rise as high as 5.25% to 6.5%.

If you hope to sell your home or rebuild lost equity, there’s new hope. One plus is that Congress has recently extended the first-time homebuyer credit, and even expanded it to include those with higher incomes and current homeowners.

But with layoffs high, defaults should remain problematic, hitting wealthy areas even harder next year, says Joshua Shapiro, chief U.S. economist at MFR, a consulting firm. In fact, 30% of recent foreclosures were on higher-priced homes — nearly double the 2006 rate.

Wild card: If the Fed stops buying mortgage securities in March as planned and private investors don’t step up, rates could spike to 6% or higher sooner and faster than expected, slowing demand and pushing prices down.

Signs to watch: Steady growth in single-family housing permits (track it at indicates that builders believe buyers are returning to the market.
The action plan

Buyers: Make your move now. Have you been on the sidelines waiting for prices to go lower before house shopping and bidding in earnest? Don’t hold off much longer.

“The market will remain tilted in favor of the buyer over the next year, but that power will gradually be reduced as conditions in the housing market improve,” says Larson at Weiss Research. You’ll have plenty of homes to choose from as foreclosures continue to pile up and more homeowners list their houses in an improving market. Be sure to keep a close eye on mortgage rates. If they rise sharply as the Fed’s mortgage buyback program draws to a close, act quickly to lock in a low fixed rate.

Anyone looking to buy or invest in a lower-priced, entry-level home should expect competition. Put down as much cash as possible (many investors are offering to make all-cash deals); come in below the listing price and there’s a good chance you’ll lose to another bidder.

But demand is much softer for middle- to top-tier homes, particularly those priced above $500,000. The supply is greater too, so you’ll be in a stronger bargaining position. Offer at least 10% below what comparable homes have sold for lately (your realtor can supply this info). That way you won’t take a hit if prices of higher-end homes fall another 10% or more, which is very likely, Shapiro says.

Sellers: Postpone listing your home, if possible. Sellers next year will be unloading property at what’s likely to be the very bottom. Ouch. Hold out for a few more years, so you’ll compete against fewer foreclosures, increasing the chances your home will fetch a higher price.

Delaying your sale isn’t an option? Act fast before prices drop further. To expedite a sale, don’t try to compete on price with foreclosures and short sales (when the bank allows owners to sell for less than they owe on their mortgage); most of the time, you can’t win. Instead play up your home’s strengths. Foreclosures typically need a lot of work, and short sales can take months. So make necessary repairs, throw in a paint job and new carpeting since buyers may be short on cash after the down payment, and offer a fast and flexible closing date. That will attract people willing to pay more for a home that’s in move-in condition and a deal they can close quickly.

Owners: Look into refinancing, and rein in spending on home improvements. You’re a prime candidate for refinancing if you have an adjustable-rate mortgage and will be in your home for at least five years. There’s no reason to wait; you won’t get a better deal than you will now.

As for fixing up the place, now’s not the time to spend serious money; since prices aren’t likely to snap back soon, you won’t see much of a return on your investment. Focus on lower-cost cosmetic fixes, like painting and landscaping, and basic projects that improve functionality and design, such as adding molding or doing a basic bathroom remodel.

Source article: Amanda Gengler, Money magazine writer

This is brought to you by Janard Capital LLC

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