David Toothaker is the Client Care specialist at Linda Craft & Team, REALTORS®. He grew up in Western Maine, and his family still lives there. When he heard about his family’s 175 year old Congregational Church in Phillips being one of the last remaining churches in town, and that it needed to finish significant repairs to the building and re-paint the entire church, he wanted to get involved.

 “I thought we could host a yard sale here at Linda Craft and Team, Realtors® and have 100% of the proceeds benefit the church,” Toothaker said. “They need about $15,000 to finish the repairs and I hope we can help them finish strong.”

 “Community service is central to our mission,” said Linda Craft. “We believe in supporting our community, and that includes members of our Team and their charitable interests, wherever they might be!”

 The yard sale is scheduled for Saturday, July 17^th from 8:00 AM to 12:00 PM at the Linda Craft and Team, Realtors®Raleigh Real Estate office, 7300 Six Forks Rd in Raleigh, North Carolina.

If you have any real estate questions please do not hesitate to contact me.

I hope that you have a great weekend,

Linda

If you have any further questions or would like schedule a private consultation about what is best for you and your property feel free to contact us at 919-235-0007.

Have a great Thursday!

Linda

Mistakes Home Sellers Make

1. Delusional Thinking

“My home is special, I WANT to sell,  I need to net, It’s sold as is! “  When these words come out of a sellers mouth I know they have delusional thinking are headed towards bitter disappointment. My job is to first save them from themselves by educating them to the differences of a home sale instead of a home listing. Many REALTORS will list homes for sale following the requests of the seller instead of educating them to how to be in the market and sold instead of just listed.  There is a huge difference between being “in” the market or “on” the market. Delusional sellers look for magic pills and hope time will be their cure all. 6 months later their house isn’t sold and the search begins for another REALTOR to work magic. Sellers with delusional thinking place houses on the market instead of in the market.  

For Success Change Your Thinking.

Your house will only sell if buyers think it’s special. Wanting to sell instead of needing to sell usually means Disney Land pricing- be careful with that thinking. Pricing you home with what you want to net instead of  market value is like buying your house back every day it’s on the market. It will never sell if your net doesn’t match market value. Sold “as is” happens all the time with distressed properties at very discounted prices. “As is’ guarantees one of two things either a low price or no sale at all. Is that what you want?

2. Pricing With The End In Mind

I can’t tell you how many times I have heard “I need to net X to have enough money to buy the type of house I want”.  The market is, what the market is. I do not know any REALTOR who can make a buyer give a seller what they need in order to buy their next house. Frankly, the buyer doesn’t care what you need and is not going to help you buy your new house. They are trying to buy their own house. Hopefully yours. If you need to net X and it is higher than market value forget selling. Stay put and enjoy the home you have or alter your desires on what you purchase with your net dollars.

3. Hiring The Wrong REALTOR

A REALTOR’S  job is to educate sellers, market their home and negotiate contracts. Therefore it would make sense for sellers to focus on how much experience and exposure the REALTOR they hire can bring to them. Instead many sellers hire family friends or REALTORS who have no market reach other than a sign and MLS listing and lack experience in negotiations. Ask how many homes they closed last year, this month and how many they have under contract now. Then ask how many of them were listings and how many were buyers. Do you want to be the very first house they have ever listed for sale? Or the second, third or fourth? NO you need experience if you want success. Working with sellers  is very different than working with buyers. Seller’s agents need marketing dollars, contract negotiation skills and problem solving abilites. Does your agent qualify for the job?

4. Keeping up with the Joneses

One of the biggest mistakes I see most sellers make is pricing their home by comparing it to other houses for sale now. They say “My neighbors house is priced at X and I have better landscaping and a fence so I think my property is worth XX”.   Hello…..what if your neighbor is wrong?! Didn’t your mother tell you two wrongs do not make a right? The fact is, most of your neighbors are wrong because they have all followed this delusional thinking trap. In every market there is data to prove what percentage of neighbors are wrong. It’s called number of price reductions and expired listings. I am certain many of your neighbors are wrong.  Please, Mr. and Ms. Seller, I beg you to look at sold and under contract properties. Not what’s for sale now.

5. Eliminating The Appraiser From The Equation

This may be the most overlooked, under estimated, dangerous mistake a seller makes. It doesn’t matter what you want for your home, or what a REALTOR thinks it is worth, or even what a buyer is willing to pay….if there are no recent comps to support the agreed price it is not going to appraise and you will lose your sale 99.9% of the time. Appraisal guidelines have really changed. They look for comps that have sold and closed in the past 90 days. If there are good comps they use them. If there are no comps they may go back 6 months. However, the times of them going back a year or two and justifying a sales price is over. Appraisers are chosen by lottery, comps have to be the most recent, they also have to include under contract, short sales and foreclosures sales in their report. All appraisals go under a second review by the mortgage companies underwriter before acceptance. No appraiser is sticking their neck out. If the comps say X and your contract is at XX your appraisal comes in low which reduces the amount your buyer can finance and the deal goes south. When you list you home for sale begin by looking at closed properties within the past 90 days just the way an appraiser will. If concessions were paid you must reduce that amount from the sales price too. Adjustments are made for differences such as no garage verses 2 car garage. Your REALTOR can help you understand the adjustments in the comparable properties. Age, square feet and location are the big 3 factors. Upgrades help a house to sell when competing in the beauty contest against other home choices but, do not necessarily help appraised value when it comes to mortgage companies lending money.

If you are considering selling your home in the Greater Raleigh Area please know that the days of inviting a REALTOR to sit at your kitchen table telling you what you want to hear so they get you to list with them is over. A successful sale today begins with a listing consultation in the REALTORS office where you can see the most recent sales in detail the way an appraiser does, study other sellers who failed to sell and why.   Do not make the same mistake as others, look at your competition through buyers eyes, see first hand the marketing you are paying for and make a good business decision about selling your home in the current market. If this consultation shows sales in a range that will give you the net you want your odds of selling are very high and you should jump into the market. If the numbers do not make sense for you to sell now, wait. Real Estate always goes up in value over time.

For a free seller consultation contact me through my Raleigh homes website or call 919.235.0007.

Hope you have a great Monday!

Linda

Join Linda Craft & Team, REALTORS and other sponsors for the 21st annual Bark Around the Park – Event for the Whole Family!

You and your dog will enjoy:
*    Dog Bone Hunts
*    Doggie Olympics    
*    Dog Show
*    Agility and Obedience Demonstrations
*    Numerous booths showcasing the latest in pet care and products

Saturday, April 17, 2010
12:00 p.m. – 4:00 p.m.
Millbrook Exchange Park
1905 Spring Forest Road
Raleigh, 27615

Overflow parking is available next door at Millbrook High School.

Be sure to stop by the Linda Craft & Team, REALTORS booth – our favorite part of the day is catching up with friends like you!

First Let Me Explain The TWO Types Of USDA Approvals:

 Approval with “GUARANTEE OF FUNDS” 

1. This approval type states that funds are available and have been guaranteed for a specific loan.
2. The loan can close.

Approval With “CONDITIONAL COMMITMENT – SUBJECT TO RECIEPT OF APPROPRIATED FUNDS”

1. This OCCURS WHEN USDA RUNS OUT OF FUNDS
2. It is an approved loan.
3. It states that “WHEN FUNDS ARE AVAILABLE (appropriated from Congress) IT WILL AUTOMATICALLY RECEIVE A GUARANTEEE”
4. The loan can close however it is up to the lender.
5. Funds are NOT available to be guaranteed – Increased risk to the lender.

 With regard to Approval #2 above:  Some lenders WILL go ahead and close the loan with a conditional commitment from USDA while others choose NOT to.  It is typical that USDA runs out of funds in September/October time frame as October is their fiscal year end.  We have all experienced in the past!

 What Is Different RIGHT NOW? 

 It is March and USDA is expected to run out of funds by the end of April…..  Obviously USDA has become a very popular loan program due to market conditions but more importantly the lack of other 100% financing programs.

1. MOST IMPORTANTLY:  As of now USDA is stating the following:  “ONCE FUNDING IS EXHAUSTED (estimated at the end of April), THE AGENCY WILL NOT ISSUE CONDITIONAL COMMITMENTS “SUBJECT TO RECIEPT OF APPROPRIATED FUNDS”.  THIS IS BECAUSE IT IS NOT CERTAIN WHEN ADDITIONAL FUNDING WILL BE AVAILABLE”.

 How Is This Different Than In The Past And What Does It Mean?

It is different because unlike Approval type #2 above they are NOT going to issue a “Conditional Commitment” and therefore when money is appropriated, if appropriated, there is NO Guarantee of Funds.  Confusing no doubt, so what does it mean?

It means that even the lenders who would typically “Fund” with a “Conditional Commitment” may NOT be so inclined to do so and therefore may NOT close the loan.  I would strongly recommend asking your lender how they will handle this and be cautious of USDA loans in months to come.

If you have any questions please feel free to contact me at or seek out a knowledgable mortgage lender here in the Greater Raleigh Area. 

Happy Saint Patrick’s Day!

Linda

Raleigh Rankings Include:

Raleigh Housing Ranks First

Raleigh Ranks in Best Colleges List

Raleigh’s Charter Schools

Raleigh Ranks Tops Jobs Growth

If you are interested in hearing more about relocating to the Greater Raleigh Area, including Cary, Apex, Holly Springs, Wake Forest, Garner and Clayton, please feel free to call me at (919) 235.007.  My Raleigh Real Estate Team is here to help you.

Linda

Linda,

The location of the houses you sent and used in my weekly home competition report concerns me. I am actually familiar with this subdivision off of Rock Quarry Road. Yes, the houses are similar, but the area is not.

Bob

Hi Bob,

I understand your analysis of different locations as well as your concern. However, please note that my search comes direct from MLS and it pulls only your MLS area which is about a 5 mile radius. It also pulls your price bracket. The way this search was created for you is exactly the way a buyer and a REALTOR searches for homes to consider viewing in person. Someone relocating or not familiar with the area is not going to judge this search as you have. To them all these houses for sale will appear equal until they schedule an appointment to see them in person.

If A Home Is Not Competitive Online Then No One Will Come To See It In Person

The challenge I have in marketing your home and getting them through your front door is; if your house is not competitive on a computer screen they may not select your house to see at all. This is why it is important to look at everything in your area the way a buyer searches for home and be competitive with all. If they select your home to view in person and the other home in the neighborhood you feel is inferior they may draw the same conclusion you have and your house wins the sale. However, if they do not choose your house because it doesn’t “appear” to be a good value you have no chance of winning the sale.

My Job As Your Real Estate Marketing Agent Is To Get You “In The Market” And Not Just On The Market.

Other sellers always affect your ability to sell because home buying decisions begin online and not in person. Hope this helps to clarify the search data that was sent to you.

Linda

Dear Linda,

I’m not ready to move anytime soon but when I do, you will be the listing agent so I figure I better ask your opinion now. We are remodeling our master bath. We’ve put down tile floors, a marble shower, new vanities, new mirrors, new light fixtures…..but we took out the garden tub we never use and don’t want to replace it. We were thinking a window bench that lifted up for storage or something like that. Is that going to kill our resale? Do you have any ideas for the space that the tub used to be in? We paid $232,000 for our house almost 4 years ago. We have done too many upgrades (just like in our last house!!!). Granite in the kitchen, new windows, new hot water heater, tile floors in all the bathrooms. We have so many nice upgrades but are we making a big mistake not having a tub in the master bath?

Thanks!
Ava

My Response Drawn From 25 Years of Working as A Real Estate Agent in Raleigh

Hi Ava,

I am sure your house is beautiful just like the last one I sold for you. The bathroom remodel sounds very nice but, you really, really need at least a garden tub. I have seen many people chose to not buy a house because it didn’t have a bath tub in the master. I know we never have time to use them but, people want them just in case.

Please let me know if you have anymore questions as it is always my pleasure to help you.

Linda

How Will A Raleigh Homeowner Benefit?

The $6,500 tax credit will really help many sellers offset any depreciation they may have experienced in the Raleigh Real Estate market and will give them the extra funds they need to buy a new home. When selling a home you have to deduct the mortgage pay off, property taxes, real estate commissions, revenue stamps and other miscellaneous charges for selling a home. The remainder after everything is paid is the net proceeds. Or better described the check the seller gets at closing to spend on their new house. The Government is giving them an additional $6,500 tax credit to help home sellers in Raleigh buy new homes. This is pretty exciting especially when you consider mortgage interest rates are still around 5% for a 30 years fixed rate mortgage. The low interest rates and the tax credit will help many homeowners get into better houses than they ever dreamed.

Raleigh Mortgage Lending Guidelines Have Changed

Today in order to buy a home most lenders require a minimum of 5% down. We can usually negotiated to get the mortgage closing cost paid by the seller but, when the Raleigh housing market hasn’t appreciated over the past several years it makes it really hard to sell and be able to net enough money from the sale for the down payment on a new home. The $6,500 tax credit will put many home buyers in the market now that could only sit and wait before. Here are some details:

Who is Eligible  

• Existing home owners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit.
• All U.S. citizens who file taxes are eligible to participate in the program.

Income Limits

• Home buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.
• For married couples filing a joint return, the combined income limit is $225,000.
• Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
• The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000.

Effective Dates

• The eligibility period for the tax credit is for homes purchased after Nov. 6, 2010, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.

Types of Homes that Qualify

• All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.  

Tax Credit is Refundable

• A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.
• For example:
  • A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit).
• All qualified home buyers can take the tax credit on their 2009 or 2010 income tax return.

Payback Provisions

• The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

The www.federalhousingtaxcredit.com site is being updated and you can find alot of useful information there.

Please remember to talk with your CPA or tax advisor to verify how the tax credit can help you and your family.  I am not a tax advisor but have given you the information above as I understand it.

Hope you stay warm today!

Linda