December 30, 2008

Cost vs. Value of Remodeling Projects

Posted to Brad & Liz Sears

In today’s housing market there’s a lot of inventory and buyers are pickier than ever. Your home has to make a good first impression and doing the basics might not cut it. So, How do you know which projects will give you the best return for your dollar while attracting buyers?

National surveys show that replacing windows and siding for efficiency and curb appeal rank among the top remodel projects for costs recouped. The survey also shows that they rank among the least expensive projects. Check out this web site to see where other remodel jobs rank for costs recouped: www.costvsvalue.com.

Conforming Fixed 30 year rate: 4.875%
Conforming Fixed 15 year rate: 4.625%
Conforming 5 year ARM: 6.375%
FHA Fixed 30 year rate: 5%
FHA Fixed 15 year rate: 5%
FHA 5 year ARM: 5.625%

Posted By: Brad & Liz Sears





December 18, 2008

Sell now, hire a REALTOR!

Posted to Brad & Liz Sears

If you are considering selling your home in this market, there are several factors that will help you determine a competitive and viable sales price. Is your home in a good location? What is the quality of your home (poor condition, good condition, excellent condition)? What type of market are we in (sellers or buyers)? How is the curb appeal? Does your home smell pleasant (see my blog about staging)? Your answers to these questions will affect your final sales price. You want your home priced in a way that will have buyers wanting your home most in that particular price range. If your home is the least attractive home in a price range, you won’t have as many showings and fewer, if any, offers. However, your home will always sell as long as it is priced right! If it’s in a poor location or in poor condition, it will need to be priced lower to sell. Remember that, you, Realtors or appraisers don’t determine the price your home will sell for. The only one who determines this price is the person who is willing to pay for your home. I have seen homes that have appraised for $250,000 that sat on the market for months and couldn’t sell until the price was lowered $20,000. You must be willing to lower your price if you aren’t showing it or getting any offers. It is better to start your home lower and receive many offers than it is to list it high and not receive any.

Surveys show that 90% of buyers now use the internet to find their homes. Marketing your home and getting your property seen can be very time consuming, expensive and is extremely important these days. You can’t just put a “For Sale” sign in your front yard and expect it to sell. Make sure to answer phone calls and be available for showings. There is a lot of inventory on the market and buyers will pass you up if you aren’t available.

Although selling a home on your own is very attractive to some sellers, there are great benefits from hiring an experienced real estate agent such as: Pre-qualifying buyers, marketing your home, providing an electronic lock box, taking all calls, scheduling appointments, coaching you on staging your home, negotiating on your behalf, providing legal contracts and paperwork, meeting contract deadlines, and more. Hiring an experienced real estate agent will help your home sell faster, save you money and protect you in the long run.

Posted By: Brad & Liz Sears





December 09, 2008

Investment Properties: How much is too much when it comes to fix-ups?

Posted to Brad & Liz Sears

Eight years ago my wife and I bought our first investment property with the plans of fixing it up and selling it for a profit. It seemed like a perfect scenario because we were able to buy the home for only $104,000 and it already appraised in its current condition for $135,000. The only problem was that it needed some cosmetic work to get it to sell for what it was worth, things like new carpet (and pad -to get rid of the smell), new paint, a bit of yard work and other similar things. However, we also knew that if we did a little more, it was worth between $160,000 and $165,000. The yard really needed sod, not just weeded beds and the windows could definitely be replaced. The basement was unfinished and it would only cost about $5,000 in materials to finish it and since we planned on doing all the work, it would be pure profit. But before we knew it, we had spent 6 months working on the home while paying the mortgage and materials. And then we spent another 3 months lowering the price to get it to sell. We finally sold it for $154,000 and when all the closing costs were paid and we subtracted the materials, the mortgage payments and other expenses from the profit, we were left with $3,000 which ironically was exactly enough to cover the cost of the tools we “had” to buy to do the work ourselves.

It was a bit discouraging to see that we didn’t make money on that insane amount of work, but I had two choices. I could either look at it as a huge waste of my time, or I could consider it great and free education. Honestly, how many people work just as hard at college and they graduate with a large student loan debt? At least mine was only the hard work. But I started thinking, had I just gone in and done the basics and left the basement unfinished, I could have listed it below all the other homes in that neighborhood (for 130K) and had it sold quickly AND made a profit of around $15,000! Instead I priced it high and spent a lot of time, an incredible amount of effort and too much money only to keep lowering the price to get someone to buy.

Posted By: Brad & Liz Sears





December 03, 2008

The True Meaning of Christmas

Posted to Brad & Liz Sears

While listening to the radio last week, someone called in to share a family tradition that they had started a few years ago. She said that all year long they collect their loose change in a jar and with it they buy toys, clothes, food or blankets and take them to the hospital for kids and families who need help for Christmas.

I thought this would be a great tradition to start with my family so I asked them if they would like to do something similar to help others this Christmas. I was overwhelmed by my kids reaction. They wanted to start right away! Immediately they started thinking of ways to come up with money. Their ideas ranged from raking leaves and shoveling driveways to selling the cookies my wife bakes. My little 8 year old took it upon himself to make the money container out of an empty 2 liter bottle and decorate it. Since we got a late start this year we decided that our goal would be $100. Working together with my wife and kids to bless the lives of others has really helped us feel the truest meaning of Christmas. And we are not only helping others in need, we are also growing closer as a family and sharing in the joy of giving service.

This will be a Christmas that I will never forget.

Posted By: Brad & Liz Sears