Seller Safety Plan

September is REALTOR® Safety month when special attention is focused on the security of having a home on the market and the concerns for the well-being of owners is a day-to-day effort.  The following list may help sellers secure their home and minimize risk.

• Locks – doors and windows should be locked at all times.  Additional locks like deadbolts or safety locks can provide a higher level of security.
• Home lighting - turn on the lights prior to purchasers arriving to improve the showing.  Not only will they be able to see things better, it could prevent them hurting themselves unnecessarily. Outdoor motion-sensor lights provide additional security.
• Eliminate the possible hazards – try to identify anything that might cause a person to trip and fall such as loose objects on the floor or floor coverings that aren’t properly secured.
• Security system – If you have a security system, it should be monitored and armed, especially when you’re away from home.  Most systems will allow you to program a temporary code that agents will be able to use based on your instructions. 
• Prescription medications – remove or secure the drugs before showing the home.   
• Secure valuables – jewelry, artwork, gaming systems;  mail containing personal information like bank and credit card statements, investment reports;  wine and liquor can also be a security issue.
• Remove family photos –pictures can be distracting to prospective purchasers but the concern at hand is to eliminate photos of a wife, teenage daughter or children that might provide information to a possible pedophile or stalker who could be posing as a buyer.
• Remove weapons – the reason to remove guns should be obvious to everyone but a knife block on the kitchen counter can become an opportunity of convenience.
• Unexpected callers - when some people see a for sale sign in the yard, they think that it’s an invitation to look at the home immediately. Keep your doors locked so that people can’t let themselves in. If they ring the doorbell and want to see the home but aren’t accompanied by an agent, ask them to call your listing agent.

These precautions should be taken before the photos or virtual tours are made.  Having these items in plain sight in the pictures posted on the Internet can unwillingly provide prospective criminals with a menu of what is available.

Agents cannot protect a seller’s valuables other than to inform the owner of potential threats to their security.  In most cases, the seller’s agent will not be present at home showings and even if they were, it is not always practical nor desirable to follow the buyers and their agent through the home.

Annual Maintenance

A common expectation of homeowners is to want the components and systems in their home to work when they need them. Periodic maintenance is just as important as having a trusted service provider to make necessary repairs.

Victims of Murphy’s Law can attest that their air conditioner goes out on the hottest day of the year or the water heater fails when you have out of town visitors.

If the convenience of having things work doesn’t justify maintaining your home’s systems, consider that it can be less expensive than the results of neglect causing repairs or replacement.

• Replace burned-out, dim or missing bulbs in light fixtures and lamps. Consider switching to LED bulbs.
• Dryer exhaust vents build up lint even though you may be cleaning the filter regularly.
• Fire extinguishers need to be recharged or replaced after expiration date.
• Establish a recurring appointment on your calendar to change filters in your HVAC.
• Replace missing or damaged caulk around sinks, bathtubs, showers, windows and other areas.
• Clean gutters.
• Schedule an inspection with a pest control a minimum of once a year unless you have a service contract.
• Schedule a chimney cleaning prior to using the fireplace for the first time in the season.
• Keep all tree branches and shrubs trimmed away from the home.
• Pressure wash exterior, deck, patio, sidewalks and driveway.
• Keep levels of insulation in the attic above your ceiling joists.
• Check appliances with water lines for leaks or worn hoses.
  • ice maker  • washing machine   • dishwasher   • others
• Test all GFI breakers and reset.
• Inspect all electrical outlets for broken receptacles, fire hazards or loose fitting plugs.
• Have furnace and air conditioner serviced annually.
• Test smoke and carbon monoxide detectors and change batteries.

The early fall is a great time to take care of these items before the weather becomes harsh.

Money Down the Drain

Private mortgage insurance is necessary for buyers who don’t have or choose not to put 20% or more down payment when they purchase a home.  It is required for high loan-to-value mortgages and it provides an opportunity for many people to get into a home who otherwise would not be able.

The problem is that it is expensive and a homeowner’s goal should be to eliminate it as soon as possible to lower their monthly payment and avoid putting good money down the drain.

FHA loans made after 6/1/13 that have 90% or higher loan-to-value at time of purchase have mortgage insurance premium for the life of the loan.   FHA loans made prior to 6/1/13, can have the MIP removed after five years and if the unpaid balance is 78% or less than the original loan-to-value.

VA loans do not require mortgage insurance.

Conventional loans, in most cases, with higher than 80% loan-to-value require mortgage insurance.  The cost of that insurance varies but with a $250,000 mortgage, it could easily be between $100 and $200 a month.

Your monthly mortgage statement should itemize what your monthly fee is for the mortgage insurance.   Unlike interest that is deductible, most homeowners are not able to deduct mortgage insurance premiums.

If you plan to remain in the home or to stay there for a considerable number of years, the solution may be to refinance the home.   If the home has increased since it was purchased, the loan-to-value at its new appraised value may not require PMI.  You might even be fortunate enough to obtain a lower rate than you currently have.

How's Your Memory?

How old is your bedroom furniture and what did you pay for it?  Don’t know?  That’s okay, let’s try an easier question.  When did you buy the TV in your family room and is it a plasma, LCD or a LED?

Whether you are the victim of a burglary, a fire or a tornado, most people are comforted they have insurance to cover the losses.  However, unless you’ve filed a claim, you may not be familiar with the procedures.

The adjustor will want to know the date and how the loss occurred.  Assuming you have contents coverage, the claim for personal belongings is separate from damage to the home.

You’ll be asked to provide proof of purchase, like receipts or cancelled checks, or a current inventory.  If they’re not available, you can reconstruct an inventory from memory.  The challenge is trying to remember things you may not have used for years and may not miss for years more.

Relying on memory can be a very expensive alternative.  A prudent homeowner will create a home inventory with pictures or videos while all of their belongings are in the home and they can see them.

Download a home inventory to make your project a little easier.

Selling Luxury Homes Today

If You’re In The Market To Sell Your Saint Louis Luxury Home , You Probably Feel You Can’t Catch A Break.
Nearly Five Years Into The Housing Bust, When Many Experts Thought The Real Estate Market Would At Least Have Stabilized, Sales And Prices Are Still Dropping In Most Of The Country. You Can’t Count On Things Turning Around Soon, Either. It Would Take 8.6 Months To Clear Out The 3.5 Million Existing Homes Listed Today.

Put Part Of The Blame On Stiff Competition: Foreclosures And Short Sales, “It’s Dreadful Out There For Sellers,” Says Patrick Newport, A U.S. Economist At Forecasting Firm IHS Global Insight. It’s Not Enough To Show Buyers Your House Is A Deal: You Have To Convince Them It’s A Total Steal. That Means Slashing Your Price, Bringing In A Pro To Pretty It Up, And Creating A Killer Website For Your Home.

Here’s How To Do It Right. Slash Your Price, Big Time
 Sellers Are Still Loath To Accept The Extent Of The Toll The Bust Took On Their Homes’ Value, Says Tara-Nicholle Nelson, Consumer Educator For The Housing Website Trulia.Com. Many Also Give In To The Temptation To List The Property Above Fair Market Value To See What Happens. Big Mistake. About A Quarter Of Sellers In The Past Year Initially Listed Too High And Were Forced To Knock The Price Lower, According To Trulia.Com. Even In Cities That Have Held Up Well, Such As Charlotte, 25% Of Sellers Resort To At Least One Price Cut, And Often Two. Think You Can Always Drop The Price If Your Home Doesn’t Sell? Bigger Mistake.

The First 30 Days On The Market Are The Most Important. 
That’s When Your Place Attracts The Most Attention And Gets The Most Showings. The Result: You Often End Up With Less Than You Would Have If You Priced It Right To Begin With, So Get Aggressive Right Out Of The Gate.

Undercut Your Competition.
In Normal Times Listings Of Similar Properties In Your Area Would Give You A Good Sense Of What Your Home Might Sell For. Today There’s A Big Gap Between What Sellers Want And What Buyers Are Willing To Pay. Instead, Figure Out What You Can Realistically Expect To Get By Asking Your Realtor To Show You What Houses Similar To Yours Have Sold For In The Past Three To Six Months. If More Than A Couple Of The Comparable Properties Were Foreclosures Or Short Sales, Look Closely At The Photos And Descriptions Of Those Former Listings. Distressed Homes Should Be Included In Your Comps If They Are In Move-In Condition, Once You Have A Handle On Your Likely Sale Price, List Your Home A Bit Beneath That. You Don’t Have To Undercut By Much To Attract Attention, Because That Price Will Probably Still Be About 10% Or 15% Below What Other Homes Are Listed For. Even If You’re Competing With Lots Of Foreclosures And Short Sales, Your Price Should Generate Enough Interest To Attract More Than One Bidder, Pushing Up The Final Price To Where It Should Be. Take Out The Ax. No Bites Within 30 Days? Make A Big Move.

When A Property Sits, People Start Thinking It Must Be Listed Too High.
To Stimulate Interest, Make A Giant Cut — As Much As 10% Of The Asking Price, And Even More In An Area Where Prices Are Still Falling. That Should Be Enough To Warrant A Second Look From Buyers Who Passed The First Time, And To Bring In A New Pool Of Potentials Who Are Hunting For The Right Home. Play Hardball. It’s Okay To Reject Low-Ball Offers If A Buyer Won’t Budge. But If A Buyer Is Willing To Negotiate, Push Aside Feelings Of Anger Or Insult And Start Counter Offering Ideally You’ll Be Able To Negotiate Within $10,000 To A Couple Hundred Thousand And Even A Million Of An Acceptable Offer. Then,

Using Incentives Can Make It Easier To Reach An Agreement
For Example, If Your Buyer Refuses To Dicker, You Might Offer To Leave The Furniture, Tv‘s, Appliances, Even A Car Behind. Or Maybe You’d Rather Take The Reduced Price But Have The Buyer Agree That You Take 60 Days, Not 30, To Move Out. Remember This Is Something That Should Be Negotiated Once The Initial Offer Is On The Table Not Before. Always Be Open To Negotiation And Counters Because Without A Counter The Deal Will Never Get Done. Also When Someone Makes An Offer They Want The Home And Are Already Emotionally Attached To The Property – Make It Happen. Hire A Stager, Hire A Cleanup Crew, Trim The Hedges, Cut The Grass There Are People Who Want To Sell, And There Are People Who Have To Sell.

Veteran Real Estate Brokers Interviewed Say That Proper Staging Can Speed The Sale And Often Increase The Price Too. The Key Is To Get It Done Right.
Start With An Open Mind. Staging Demands A Psychological Shift That Many Homeowners Find Challenging: Thinking Of Your House Not As Your Home But As A Set. That Means Scrubbing Away Evidence That You Actually Live There. Your Goal: The Homey Yet Impersonal Look Of A Pottery Barn Catalogue. Find The Right Stager. Get Names From Realtors Or At Realestatestagingassociation.Com, And Then Review The Stager’s Online Portfolio Of Before-And-After Photos. Next, Call Homeowner References And Ask How Fast Their Homes Sold After Staging And Whether They Think The Work Helped. Establish A Budget And Ask The Stager To Work Within It. Stagers Typically Charge $150 To $400 To Walk Through Your Home And Give Recommendations For Each Room. You Can Then Execute The Plan Yourself Or Hire The Stager To Do It For An Hourly Fee, Usually $100 Or So, Plus The Cost Of Any New Paint Or Furnishings. If You Make Big Changes, Costs Can Add Up — But Can Often Make A Huge Difference Using What Homeowners Already Have These Days It’s Going To Take Far More Than A FOR SALE Sign In The Front Yard And A Spot On The Multiple-Listing Service To Get Potential Buyers In The Door. That Means Getting The Word Out In A Creative Fashion — And Finding A Realtor  Who Is Willing To Do The Same.

 “The More Eyeballs That Get On The Listing, The Better,” Says Katie Curnutte Of The Real Estate Information Website Zillow.Com. To Do That, You Need A Multipronged Marketing Plan Of Attack. Create A Great Site . About 90% Of Buyers Begin Their Search On The Internet, According To The National Association Of Realtors. Make Sure Your Home’s Online Presence Has A Dozen Or Two Photos: Having 20 Instead Of Five PhotosWill Almost Double The Number Of Hits You’ll Get, According To Zillow.Com. And Have Professional Pictures And Virtual Tours On Every Site. Pictures Will Get The Buyers Through The Door. Throw Money At Them. Incentives Can Perk Buyers’ Interest Just As Much As Price Cuts, Says Matt Brown, Director Of Business Development At ForSaleByOwner.Com. In Fact, Many Buyers Will Agree To A Higher Price If Their Upfront Costs Are Lowered, Since They Often Run Short On Cash. If You Can Afford It, Offer To Cover The Buyer’s Closing Costs Or Pay The First Year’s Property Taxes Or Condo Or Homeowner Association Dues. However, Those Freebies May Be Practically Standard, Particularly In Areas Rife With Distressed Properties. Be Aware, Though, That You Must Disclose Any Such Gifts Or Payments When The Offer Is Agreed On, And Some Lenders Will Not Approve Them. If So, You Might Have To Find Another Incentive That The Bank Doesn’t Object To. Showcase Super Condition. Yes, Some Buyers Are Hunting For Foreclosures In Rough Shape That They Can Nab For A Song. Yet Just As Many Shoppers Don’t Want — Or Don’t Know How — To Put In That Sweat Equity.

So Hire An Inspector To Identify Every Problem With The Home, Even Seemingly Minor Issues Such As Dripping Faucets, And Fix Them. “If An Outlet Doesn’t Work, Why Get The Buyer Wondering What Else Is Broken. Tell Your Realtor To Give Anyone Who Tours Your Home A Copy Of The Inspection Report And Your List Of Fixes. Spread The Word Online. Having Your Home Listed On A Major Website Like Realtor.Com Isn’t Enough. Ask Your Realtor If You’ll Get An “Enhanced” Listing On The Site, Where Your Home Gets Top Promotional Billing. Many Realtors Will Create A Website Just For Your Home. You Also Want To Get Your Listing On Alternative Sites Like Craigslist, Facebook, Backpage, Trulia, Postlets, LuxuryHomes.Com, And Any And Every Site Offering Real Estate.  Print ads such as Ladue News, Town & Style, STL Today will reach more buyers.

Stay Away — Far Away
In Better Times You May Not Feel Obliged To Drop Everything To Accommodate Prospective Buyers’ Schedules. Today, If Buyers Can’t Get In On Their Time, They’ll Skip It. So Be Prepared To Show A Perfectly Clean Home At A Moment’s Notice. And Disappear (Along With Your Dog, If Possible) For All Showings And Open Houses So That Prospects Can Imagine Themselves In Your House — An Impossible Task When Your Family Is Vegging On The Couch.

Keep A List Of Must-Do Chores
Including Emptying Wastebaskets, Filling The Dishwasher, And Making The Bed And Walked Out Every Morning With The Place Spotless. On The Weekend She Holed Up At A Local Mall. “Every Time I Thought I Could Go Home, A New Person Wanted To See The House,” Recalls McCoy. But A Few Extra Hours At The Mall Paid Off In Spades. In Just A Few Days McCoy Had An Offer For Her Home — For The Full Listing Price.