Home Buying On eBay???

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I was watching a home improvement show on television the other day where a couple was planning to renovate their home with the help of a designer and a carpenter. Although I love watching ‘before-and-after’s of home improvement, the most significant detail that I ended with wasn’t what they did to the home, but HOW the couple acquired the home to begin with. They “saw” and bought their home on eBay! Now I know, this isn’t a new concept, but for the typical home buyer or home seller, a home on eBay seems like a daunting way of going about a real estate transaction.

From a seller’s perspective, I know it opens the doors to a larger crowd of potential buyers, and from a buyer’s perspective, it opens up a new way for negotiating a bargain on their next home, but what is really involved and what are things to keep in mind if you’re planning on buying or selling real estate on eBay?

Just like other auction items available, you might find that some of the homes have a reserve amount so you may not necessarily get the house, even if your bid was the highest. You also have to read the details in the description for other information such as the terms of the transaction, including any fees or deposits that you have to pony up. Pretty basic so far, right? But purchasing a house, in general, is one of the largest purchases you can make, and in fact, when you’re involved in any real estate transaction, you are dealing with major contractual law.

If you’re thinking about buying a home through eBay or other internet venue, take these points into consideration:

  • Who is selling the property? If the property is listed by a local auctioneer, do your due diligence and research the company’s history and transaction processes. If the property is listed by an individual, you might want to establish an escrow account if one hasn’t already been set up.
  • Will you be able to see the house in person? Auctions have time limits, so keep that in mind if you have a time limit to purchasing a house too. Although the house may be listed “as-is”, you may still want to get a good look at what you’re going to be bidding on.
  • Is the bid amount you’re willing to pay comparable to the home prices in the neighborhood? This is where knowing the area, or hiring a real estate agent knowledgeable in the the area, is a good thing. You don’t want to end up finding out that you overpaid for the property.
  • Whose title company will you be using? If it’s theirs, check them out ahead of time with the local business bureau. It’s important to make sure the house has a clean title — you don’t want to end up losing the house due to a bad or false title search.
  • You can still use a real estate agent when purchasing a home through eBay or any other auctioneer, just be sure that everyone is in agreement with the terms when using representation.

Buying a home on eBay is similar to buying any home at auction, and while legally possible, it’s highly advisable to hire a real estate professional to ensure a smooth and less risky transaction.

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Important Showing Tips For FSBO’s

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If you plan to sell your house as a FSBO (FSBO = For Sale By Owner), here are some important safety considerations to follow:

  • For your own safety, never set an appointment with anyone to see your home unless they have given

    you their name and number and you have called back to verify that number. An easy way to do this

    is to say. “Let me check with my husband/wife for the best time and I will call you back.” Use this

    method even if you are not married.

  • Never let potential buyers know your schedule. Don’t ever tell them when you won’t be at home,

    when your spouse won’t be home, when you pick up the kids, when you work, when you will be on

    vacation, etc.

  • Never give a caller information about your home’s security such as deadlock bolts, security systems,

    and so forth.

  • Always have a back-up plan when you allow strangers into your home, especially if you have

    children. Have a neighbor look out for you until the lookers have gone.

  • Never let a stranger into your home without seeing some identification. If the person says he/she is a

    real estate agent, ask for a card, then call his/her office to verify the information if you don’t

    recognize the person.

  • Keep a log of everyone who has looked at your house. Get their name, telephone number, address,

    car description, tag number, and any additional information that could be helpful in the event of a

    future burglary. All of these people would be suspects.

  • If you make a flyer to advertise your home, don’t include any information that might breech security.
  • Remove from sight all valuables, including guns, jewelry, silverware, and collections. Recently,

    there was an incident in South Florida where a couple was going around with a real estate agent and

    stealing things from houses they visited. The couple actually stole over $150,000 worth of valuables.

    If possible, screen all potential buyers via a thorough pre-qualification process before you let anyone

    into your home.

  • Never leave strangers alone, and watch their every move while they’re in your home. One of the

    latest scams, according to Real Estate Today magazine, involves prescription drugs. A nice-looking,

    clean-cut couple will make an appointment to view your house. Once inside, one of them will ask to

    use the bathroom and will search for prescription drugs while inside. There is a huge market for such

    drugs. So make certain your prescription drugs are well-hidden before anyone looks at your home.

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Does Your Home Have Lead?

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Surprisingly, I often come across clients who have heard about lead poisoning, but aren’t really sure how it can affect them or their family, or what they should do if they suspect their home may have lead. The following is an excerpt from a publication provided by the EPA that real estate agents are to provide customers who plan to buy or sell a home built before 1978. Landlords also should know that it is your duty to provide similar information to potential tenants prior to ratifying the lease.

If you would like a copy of the full publication, email me and I’ll send you one.

Many houses and apartments built before 1978 have paint that contains high levels of lead (called leadbased paint). Lead from paint, chips, and dust can pose serious health hazards if not taken care of properly.

It is important to know that even exposure to low levels of lead can severely harm children.

In children, lead can cause:

  • Nervous system and kidney damage.
  • Learning disabilities, attention deficit disorder, and decreased intelligence.
  • Speech, language, and behavior problems.
  • Poor muscle coordination.
  • Decreased muscle and bone growth.
  • Hearing damage.

While low-lead exposure is most common, exposure to high levels of lead can have devastating effects on children, including seizures, unconsciousness, and, in some cases, death. Although children are especially susceptible to lead exposure, lead can be dangerous for adults too.

In adults, lead can cause:

  • Increased chance of illness during pregnancy.
  • Harm to a fetus, including brain damage or death.
  • Fertility problems (in men and women).
  • High blood pressure.
  • Digestive problems.
  • Nerve disorders.
  • Memory and concentration problems.
  • Muscle and joint pain.

You can get your home tested for lead in several different ways:

  • A paint inspection tells you whether your home has lead-based paint and where it is located. It won’t tell you whether or not your home currently has lead hazards.
  • A risk assessment tells you if your home currently has any lead hazards from leadin paint, dust, or soil. It also tells you what actions to take to address any hazards.
  • A combination risk assessment and inspection tells you if your home has any lead hazards and if your home has any lead-based paint, and where the lead-based paint is located.
  • Hire a trained and certified testing professional who will use a range of reliable methods when testing your home.
  • Visual inspection of paint condition and location.
  • A portable x-ray fluorescence (XRF) machine.
  • Lab tests of paint, dust, and soil samples.
  • Home test kits for lead are available, but may not always be accurate. Consumers should not rely on these kits before doing renovations or to assure safety.

There are state and federal programs in place to ensure that testing is done safely, reliably, and effectively. Contact your state or local agency for more information, or call 1-800-424-LEAD (5323) for a list of contacts in your area.

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New Home Construction

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Whether to buy an existing home or have one built is yet another decision to make during the home-buying process. If you decide to go with new construction, a real estate agent can be a powerful advocate in your corner as you negotiate upgrades, a move-in date and other terms with the home builder.

Below are some basic pointers to prepare you for the journey ahead.

Selecting a builder

Shopping for a large production or custom home builder can be a daunting task. Start by defining what architectural styles appeal to you and then seek out the builders in your area who offer those styles. Due diligence is essential. Ask friends for referrals to get firsthand accounts; verify the builder’s state license status, if applicable; and check whether they’re certified by the National Association of Home Builders.

The builder representative and your real estate agent

A builder representative’s ultimate goal is to sell you a home. His or her role is to provide a wide range of information to help you in your decision-making, from building restrictions, roads and easements to inspections, warranties, rebates and upgrades. A real estate agent knowledgeable in new-home construction will be able to help you wade through all the data and point out the downsides and upsides of each line item. Your agent also can look out for your interests in reviewing the builder’s contract, which often contains more legal jargon than consumer-friendly language.

It’s all about timing

Market conditions greatly dictate a builder’s incentive to make a deal you cannot refuse. When a builder has inventory on his hands, his carrying costs start adding up. When this happens, a builder might be more amenable to strike a favorable deal, whether it’s throwing in upgrades or taking a bit off the asking price. A real estate agent can help you know when market conditions are right for these benefits. Also, watch for builder close-out sales. Builders promote these special events when a new subdivision is near completion but empty inventory still remains.

A word about paying up

While there are always exceptions, most builders require a deposit when a purchase agreement is signed. They also require that the buyer pay for any upgrades prior to closing. If you back out prior to closing, unless the agreement states otherwise, you will lose that money. Make sure you understand every detail in the builder’s contract before signing it.

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Steps To Buying A Home

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  1. Define your needs.

    Congratulations on your decision to purchase a new home! Before you go house hunting, it’s a good idea to define what kind of home and neighborhood would best suit your desires and needs and make a wish list. Share this list with your real estate agent. The finer the details, the more effective your home search will be. To further define your needs, you may want to divide your lists into negotiable and non-negotiable items, so your agent can operate with some flexibility when scouting for homes on your behalf.

  2. Get prequalified or preapproved.

    Now that you know what you want in a home and neighborhood, you need to find out what you can afford. There are two ways to go about this: prequalification or preapproval for a home loan. Your real estate agent can refer you to a mortgage broker to begin the process. In most markets, preapproved buyers are preferred by sellers over those who are pre-qualified.

    Your preapproved status lets the seller know:

    * You have gone through an extensive financial background check. * A lender is willing to do business with you. * The likelihood of unexpected obstacles regarding financing is minimal.

  3. Let the house hunting begin!

    Now you are ready to embark on your home search – an endeavor that can prove overwhelming if not approached with some forethought. The most efficient route is to allow your real estate agent do the initial scouting for you. Using your wish list as a guide, he or she will alert you of new and existing listings that have strong potential. If these listings pique your interest, your agent will arrange home tours at your convenience. Many agents send alerts via email – sometimes as often as daily, depending on the available inventory in your market. Let your agent know how you’d like to receive these alerts, whether by phone, email or fax.

    You also can do some research on your own. Read local real estate publications, contact your local neighborhood associations, visit the local chamber of commerce, surf the Internet, or drive around your favorite neighborhoods. While these methods certainly can lead to your dream home, it’s important to note that 82 percent of home sales are the result of agent connections.* That means it’s more likely your agent will find your dream home through being in the real estate business than you driving around on the weekends.

    * National Association of REALTORS(r)

  4. Make an offer.

    When you’re ready to make an offer on a home, your real estate agent will help you determine the offer price by reviewing recent sales of homes similar in size, quality and amenities. With your input, your agent will draft a written contract that outlines what needs to be done by both parties to execute the transaction. If the seller accepts the offer, the document becomes a binding agreement, so it is imperative that you carefully review it with your agent and speak up if anything is not clear to you. It’s important to note that if the seller changes any aspect of the offer, it is not a binding agreement until the buyer agrees to the seller’s changes.

  5. Strike a deal.

    Sometimes, you get lucky and the seller accepts your offer as is. However, in most instances, the seller will make a counteroffer. This is where your real estate agent’s experience in negotiations will be invaluable. Keep in mind almost everything is negotiable when you are buying a house. This can give you a great deal of leverage in the buying process – that is, if you have adequate information and you use it in an appropriate manner. Some items you may negotiate:

    * Price

    * Financing

    * Closing costs

    * Move-in date

    * Repairs

    * Appliances and fixtures

    * Landscaping

    * Painting

    Remain in close contact with your real estate agent so you can quickly review any changes from the seller. Remember: Bargaining is not a winner-take-all deal. It is a business process that involves compromise and mutual respect.

  6. Prepare for the closing.

    When an offer becomes a binding agreement, your real estate agent will help you tackle the checklist of action items that you, as the buyer, have agreed to perform prior to closing. Depending on how the responsibilities are divvied up in the agreement, this is typically when you will:

    * Conduct a home inspection.

    * Get an appraisal and finalize your financing.

    * Secure title insurance.

    * Shop for a home warranty.

    Having these procedures done in a timely and professional manner is a must, as any delays could threaten a successful closing. A first-rate real estate agent should be able to serve as your “one-stop shopping” referral source for service providers. Your agent also should serve as your advocate, helping to coordinate activities and making sure the vendors have access to the property to perform their jobs.

  7. Close the deal.

    Congratulations! The moment you’ve been anticipating has arrived. The closing is where home ownership is legally transferred from the seller to the buyer. It is a formal meeting that most parties involved in the transaction will attend. Closing procedures usually are held at the title company’s or lawyer’s office. The closing officer will coordinate all the document-signing and the collection and disbursement of funds. A few days before your closing date, your lender will send a final closing statement that outlines your closing costs, if applicable. Your real estate agent will review this document with you to ensure its accuracy, as well as help you gather any necessary documentation that you’ll need to bring to closing.

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Home Selling Etiquette

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Let’s face it: When your house goes on the market, you’re not only opening the door to prospective buyers, but also sometimes to unknown vendors and naïve or unqualified buyers. As with any business transaction, there is an expected protocol to how sellers, buyers and their respective agents interact. Should you find yourself in a sticky situation, alert your agent so he or she can address and remedy the problem.

The Aggressive Agent

When your agent puts your house on the market, typically all promotional materials state clearly that your agent is the primary contact for buyers and buyers’ agents. However, sometimes a buyer’s agent will contact a seller directly to try to either win over their business or cut the seller’s agent out of the deal. This is not reputable behavior and you should report it to your agent immediately if it happens to you.

The Unscrupulous Vendor

Have you ever started a business or moved into a new house and suddenly found your mailbox full of junk mail? Unfortunately, this also can happen when you put your house on the market. When you sell your home, it necessitates all kinds of new purchasing decisions and less-than-ethical vendors are keenly aware of this. Though MLS organizations enforce rules on how posted information is used, some companies have found ways to cull information from various sources to produce mass mailing lists. If you find yourself regularly emptying your mailbox of junk, let your agent know. He or she can tap the appropriate sources to prompt an investigation into the matter.

The Naïve Buyer

Yard signs, Internet listings and other advertisements can generate a lot of buzz for your home. Some prospective buyers – particularly first-timers – will be so buzzed to see your home that they’ll simply drop by. If this happens, no matter how nice these unexpected visitors are, it’s best not to humor their enthusiasm by discussing your home or giving an impromptu tour. Instead, politely let them know that your real estate agent is in charge of scheduling tours and provide them with the agent’s contact information. If you attempt to handle these surprise visits on your own, you might inadvertently disclose information that could hurt you during negotiations down the road.

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The 60-Second Rule

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Remember the 60-second rule: That’s all the time you have to create a winning first impression. Here are some simple to significant ways to maximize your home’s appeal:

Exteriors

  • Keep the grass cut and remove all yard clutter.
  • Weed and apply fresh mulch to flower beds.
  • Apply fresh paint to wooden fences.
  • Tighten and clean all door handles.
  • Clean windows inside and out.
  • Powerwash home’s exterior.
  • Ensure all gutters and downspouts are firmly attached and functioning.
  • Paint the front door.
  • Buy a new welcome mat.
  • Place potted flowers near the front door.

Interiors

  • Evaluate the furniture in each room and remove anything that interrupts “the flow” or makes the room appear smaller. Consider renting a storage unit to move items off-site.
  • Clean and organize cabinets, closets and bookshelves.
  • Clean all light fixtures and ceiling fans.
  • Shampoo or steam clean carpets.
  • Remove excessive wall hangings and knick-knacks.
  • Repair all plumbing leaks, including faucets and drain traps.
  • Make minor repairs (torn screens, sticking doors, cracked caulking).
  • Clean or paint walls and ceilings.
  • Replace worn cabinet and door knobs.
  • Fix or replace discolored grout.
  • Replace broken tiles.
  • Replace worn countertops.

Showing Details

  • Turn on all the lights.
  • Open all drapes and shutters in the daytime.
  • Keep pets secured outdoors.
  • Buy new towels for bathrooms.
  • Buy new bedding for bedrooms.
  • Replace old lamps or lampshades.
  • Play quiet background music.
  • Light the fireplace or clean out the ashes and light a candelabrum.
  • Infuse home with a comforting scent, such as apple spice or vanilla.
  • Set the dining room table for a fancy dinner party.
  • Vacate the property while it is being shown.

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How to Price to Sell and Still Make a Profit

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The asking price you set for your home significantly affects whether you will profit in the sale, how much you will profit and how long your home will sit on the market. Your real estate agent’s knowledge of the overall market and what’s selling – or not selling – will be invaluable in helping you determine the price. The objective is to find a price that the market will bear but won’t leave money on the table.

Here are some points to consider: Time. Time is not on your side when it comes to real estate. Although many factors influence the outcome, perhaps time is the biggest determinant in whether or not you see a profit and how much you profit. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. Therefore, if your goal is to make money, think about a price that will encourage buyer activity (read: fair market value).

Value vs. Cost. Pricing your home to sell in a timely fashion requires some objectivity. It’s important that you not confuse value with cost – in other words, how much you value your home versus what buyers are willing to pay for it. Don’t place too much emphasis on home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants hardwood floors or granite countertops.

Keep it simple. Because time is of the essence, make it easy for the buyers. Remain flexible on when your agent can schedule showings. Also, avoid putting contingencies on the sale. Though a desirable move-in date makes for a smoother transition between homes, it could cause you to lose the sale altogether.

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Steps To Selling Your Home

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  1. Define your needs. Write down all the reasons for selling your home. Ask yourself, “Why do I want to sell and what do I expect to accomplish with the sale?” For example, a growing family may prompt your need for a larger home, or a job opportunity in another city may necessitate a move. For your goals, write down if you’d like to sell your house within a certain time frame or make a particular profit margin. Work with your real estate agent to map out the best path to achieve your objectives and set a realistic time frame for the sale.
  2. Name your price. Your next objective should be to determine the best possible selling price for your house. Setting a fair asking price from the outset will generate the most activity from other real estate agents and buyers. You will need to take into account the condition of your home, what comparable homes in your neighborhood are selling for, and state of the overall market in your area. It’s often difficult to remain unbiased when putting a price on your home, so your real estate agent’s expertise is invaluable at this step. Your agent will know what comparable homes are selling for in your neighborhood and the average time those homes are sitting on the market. If you want a truly objective opinion about the price of your home, you could have an appraisal done. This typically costs a few hundred dollars. Remember: You’re always better off setting a fair market value price than setting your price too high. Studies show that homes priced higher than 3 percent of their market value take longer to sell. If your home sits on the market for too long, potential buyers may think there is something wrong with the property. Often, when this happens, the seller has to drop the price below market value to compete with newer, reasonably priced listings.
  3. Prepare your home. Most of us don’t keep our homes in “showroom” condition. We tend to overlook piles of boxes in the garage, broken porch lights, and doors or windows that stick. It’s time to break out of that owner’s mindset and get your house in tip-top shape. The condition of your home will affect how quickly it sells and the price the buyer is willing to offer. First impressions are the most important. Your real estate agent can help you take a fresh look at your home and suggest ways to stage it and make it more appealing to buyers. * A home with too much “personality” is harder to sell. Removing family photos, mementos and personalized décor will help buyers visualize the home as theirs. * Make minor repairs and replacements. Small defects, such as a leaky faucet, a torn screen or a worn doormat, can ruin the buyer’s first impression. * Clutter is a big no-no when showing your home to potential buyers. Make sure you have removed all knick-knacks from your shelves and cleared all your bathroom and kitchen counters to make every area seem as spacious as possible.
  4. Get the word out. Now that you’re ready to sell, your real estate agent will set up a marketing strategy specifically for your home. There are many ways to get the word out, including: * The Internet * Yard signs * Open houses * Media advertising * Agent-to-agent referrals * Direct mail marketing campaigns In addition to listing your home on the MLS, your agent will use a combination of these tactics to bring the most qualified buyers to your home. Your agent should structure the marketing plan so that the first three to six weeks are the busiest.
  5. Receive an offer. When you receive a written offer from a potential buyer, your real estate agent will first find out whether or not the individual is prequalified or preapproved to buy your home. If so, then you and your agent will review the proposed contract, taking care to understand what is required of both parties to execute the transaction. The contract, though not limited to this list, should include the following: * Legal description of the property * Offer price * Down payment * Financing arrangements * List of fees and who will pay them * Deposit amount * Inspection rights and possible repair allowances * Method of conveying the title and who will handle the closing * Appliances and furnishings that will stay with the home * Settlement date * Contingencies At this point, you have three options: accept the contract as is, accept it with changes (a counteroffer), or reject it. Remember: Once both parties have signed a written offer, the document becomes legally binding. If you have any questions or concerns, be certain to address them with your real estate agent right away.
  6. Negotiate to sell. Most offers to purchase your home will require some negotiating to come to a win-win agreement. Your real estate agent is well versed on the intricacies of the contracts used in your area and will protect your best interest throughout the bargaining. Your agent also knows what each contract clause means, what you will net from the sale and what areas are easiest to negotiate. Some negotiable items: * Price * Financing * Closing costs * Repairs * Appliances and fixtures * Landscaping * Painting * Move-in date Once both parties have agreed on the terms of the sale, your agent will prepare a contract.
  7. Prepare to close. Once you accept an offer to sell your house, you will need to make a list of all the things you and your buyer must do before closing. The property may need to be formally appraised, surveyed, inspected or repaired. Your real estate agent can spearhead the effort and serve as your advocate when dealing with the buyer’s agent and service providers. Depending on the written contract, you may pay for all, some or none of these items. If each procedure returns acceptable results as defined by the contract, then the sale may continue. If there are problems with the home, the terms set forth in the contract will dictate your next step. You or the buyer may decide to walk away, open a new round of negotiations or proceed to closing. Important reminder: A few days before the closing, you will want to contact the entity that is closing the transaction and make sure the necessary documents will be ready to sign on the appropriate date. Also, begin to make arrangements for your upcoming move if you have not done so.
  8. Close the deal. “Closing” refers to the meeting where ownership of the property is legally transferred to the buyer. Your agent will be present during the closing to guide you through the process and make sure everything goes as planned. By being present during the closing, he or she can mediate any last-minute issues that may arise. In some states, an attorney is required and you may wish to have one present. After the closing, you should make a “to do” list for turning the property over to the new owners. Here is a checklist to get you started. * Cancel electricity, gas, lawn care, cable and other routine services. * If the new owner is retaining any of the services, change the name on the account. * Gather owner’s manuals and warranties for all conveying appliances.

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The Heart Of The Home Can Make Or Break Your Sale

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What is the heart of a home? Why is it so important? Why does it need to be pampered like princess in a fairy tale?

The heart of any home is… you guessed it… the kitchen! Yes, that’s right. Not only is it the room that feeds you, it’s also been known as a gathering place for family and friends. It’s the room where the highest level of activity takes place, and just like bathrooms, it can’t be avoided and should never be neglected.

It’s no secret, the kitchen is one of the biggest deal makers or deal breakers when it comes to home shopping. Now that you know this, it’s time to put your kitchen in order and make it shine and sparkle like a bald man’s head. So here are some tips to get you started, no matter what your budget is:

  1. Clean, clean, and clean again. Nothing turns off buyers more than a filthy kitchen. Think about it: sitting down at a crumb-infested, sticky table or floor? I don’t think so.
  2. Clear out the clutter. Show off that counter space! Let buyers envision themselves making a meal for an army in your kitchen. Everyone loves space.
  3. Update the major appliances. While your home is on the market, you’ll get the benefit of using the new digs too. Nothing screams “out-dated” like an old refrigerator.
  4. Tend to those cabinets. Clean off the greasy build-up. Give them a fresh coat of polyurethane or other wood polisher or paint them. Better yet, replace them.
  5. Don’t forget the cabinet knobs. It’s the little things that make a difference, so replace those knobs. Prepare for sticker shock when it comes to pricing them out– think of them as the jewels of a kitchen. Don’t worry, you won’t regret it.
  6. Floor duty is calling you. If you can’t repair or replace the flooring, clean it as best as you can– maybe even paint it. It’s another big eye-catcher in a kitchen.
  7. Replace or repair the counter tops and backsplash. Stone counter tops are a huge hit, but these days, you can find really great laminate counter tops.
  8. Dress up those windows and walls. Paint is an inexpensive way to make a huge impact on any room, and most kitchens don’t need glamorous drapes. A simple, yet elegant valance can do the trick.

Remember, you want your kitchen to look and feel like a model, and these tips are just a few things you can do to energize your kitchen’s image. For more kitchen remodeling secrets, click here!

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