Painting with A Purpose

When it comes time to sell your home, painting is among the first tasks your Summit NJ real estate agent will ask you to take on.  A fresh coat of paint can make a home look new and clean and much more attractive to buyers.  But not every kind of paint will be up to the task of helping you sell your home.

Decorating vs. Staging

When your home is listed for sale, it’s time to arrange it to appeal to the widest pool of buyers that you possibly can.  That’s called staging.  It’s different from decorating and many sellers fail to see the distinction.

Decorating makes your home reflect yourself, your family, your tastes.  It’s about highlighting all the people and things you love the most.  This is where you use your favorite colors and textures to express your personality.

Staging is very different.  Staging seeks to remove the personal touches and presence of the home owners in order for the buyer to imagine himself in the space.  You may have to relinquish your favorite colors and go with subtle neutrals when selling your home.

Color Theory

Your choice of colors will influence how buyers feel in your home.  You want them to feel at home and at ease.  Neutrals are the best choice for staging but you need not limit your palette to shades of beige.  A little bit of color theory can help you choose paints to accomplish this goal.

Soft blues are soothing and cool, great for bedrooms.  Warm colors like tan are friendly and homey.  They work well in public areas like the living and family rooms.  Light greens are fresh and reflect lots of light.  The can brighten a dark room and make it seem larger, which is ideal for a small bathroom.  A light yellow, the color of fresh butter, can have the same effect.  Ask your Summit NJ real estate agent what colors resonate with buyers in your area.

Finishing Touches

Once you picked paints and applied them to your walls with care, don’t forget to finish the job well.  Baseboards and trim, crown molding and doors must all get a fresh coat as well.  A crisp white or soft cream sets off most neutrals well and won’t be distracting to buyers.  Use blue painter’s tape to achieve a clean line if you don’t have a steady brush hand.

It may be hard to cover your favorite colors with less distinctive shade, but it’s all for a good purpose.  The more appealing the home, the faster it will sell.

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Newlyweds

Many couples think that getting married and starting a new life together must be accomplished in a new home.  Other would say that the changes wrought by a new marriage are tumultuous enough.  Why add the strain of first house hunting and then a mortgage payment to the mix?  But the dream of home ownership does not die easily.  It sends many engaged couples and newlyweds to the office of their Summit NJ real estate agent every month.  Here is some advice and encouragement for prospective buyers embarking on their new life together.

Save Up

In simplest terms, the more you can pay up front for a home the lower your fixed monthly payments will be.  If you’ve saved up a hefty down payment, you‘ll have a lower monthly mortgage payment.  A large enough down payment, 20% or more of the purchase price, might even save you cost of mortgage insurance.

You’ll need to save for other reasons, too.  You’re not only saving for the down payment, you’re saving for your own protection.  If one of you loses your job, become sick or injured or the house needs a sudden repair you’ll need solvent funds to take care of the bills.  About 3 months of expenses in an accessible account is the amount advised by most financial counselors.  That’s what your need to have after you’ve paid the down payment.

Budget

Saving like that requires some solid budgeting.  Ask your Summit NJ real estate agent what you can expect to pay in insurance, utilities, taxes and the other assorted costs of home ownership.  You’ll have to decide for yourselves if buying a house is within your budget, but your realtor can give you some realistic ideas about the costs.

Be sure to resist the urge to overspend if you do choose to buy.  House-love can strike without warning so be careful what properties you choose to visit.  Being “house-poor” is a hard way to start a marriage.  You’ll want enough wiggle room in your budget for some fun, not just the house payment.

Homework

Buying a house is not as simple as most purchases.  It takes some work and some planning; you don’t just jump in if you’re wise.  You’ll want to do a good bit of research on mortgages, first-time homeowner programs and other issues before you start the house hunt.  Steer clear of dangerous loans, like interest-only and adjustable rates, which sound good on the surface but can get you into big financial trouble.  The buyer must truly beware when shopping for loans.

Your Summit NJ real estate agent is a great source of information.  Ask lots of questions and then decide if you want to start your new life together in a new home.

Buying a Foreclosure

Buying a foreclosed home is not the easiest real estate purchase you can make.  That said, the rewards for enduring the process might be worth the effort required.  There are certainly deals to be found when looking at foreclosure listings.  Most buyers will have lots of questions for their Summit NJ real estate agent when they are considering buying a foreclosed home.

What is a foreclosure?

Foreclosure occurs when a home owner is unable to pay his mortgage.  The lender takes possession of the home and attempts to recoup as much of its losses as possible.  The selling price may be significantly lower than the actual value of the home.

What help will I need?

A Summit NJ real estate agent who is experienced in dealing with foreclosures will be a huge help to you in this process.  You may also need the assistance of a real estate attorney.  This is not a process to take on alone unless you have a great deal of experience in these matters.

Where do I find one?

There are websites and magazines dedicated to foreclosure listings.  Government agencies like Fannie Mae and HUD advertise foreclosure listings on their websites.  An industrious buyer can also look through public records for the notice of default that a lender must file at the county clerk’s office.

What should I do?

Do the leg work on the property.  Tour it yourself and get an inspection.  Don’t rely on old data.  Foreclosures are sold “as is” so be sure you know what you’re buying.  Take the initiative and pay for your own inspection.  Check everything, especially if the property has been unoccupied.  Test the pipes for leaks from freezing, all the electrical outlets and switches and every other little detail.  Make no assumption of good condition.  Have your agent check the comps to see if the property really is the deal you think it is.  Check for liens and taxes against the home and find out what your liability will be for those costs.  Don’t go into this purchase without knowing every detail.

What should I expect?

Expect paperwork, lots of paperwork.  Buying a foreclosed home may take more time than a typical home purchase.  Be prepared for a no-negotiation situation.  The lender is trying to minimize their losses so there will be no concessions and no bargaining.  Be prepared to pay for any and all repairs needed on the property. 

Buying a foreclosure isn’t easy; it takes work.  But if you can find a great deal in a down economy, it will be worth your time and effort.

The Best Laid Plans

Even the best laid plan can go awry.  This homily holds true for real estate transactions and every Summit NJ real estate agent has a few horror stories they could tell.  Truthfully, every once in a while a transaction can encounter serious problems.  More often, though, it’s the avoidable things that plague us.

Inspection Failures

On the selling side, bad inspections are usually the deal-breakers.  A bad report from a home inspector can sour a deal in a heartbeat.  Unless a buyer is specifically looking for a “fixer-upper”, they will want to see a nearly perfect report. 

Big issues like plumbing or structural problems will scare off potential buyers.  Major repairs can be expensive and might mark your home as a fix-up project.  If your home gets tagged with the “fixer” label, you will be hard pressed to get a full-price offer.  Buyers’ agents will advise their clients to make low offers and you will have little room for negotiation. 

If an offer is already on the table, more problems can arise.  The buyer can opt to reopen negotiations or ask for big concessions.  This will probably delay your closing date.  Some buyers may withdraw their offer entirely, leaving you to start the process over again saddled with a blemished report.

As a seller, you can have an inspection done before you list your home in the MLS database and avoid a nasty surprise.  Ask your Summit NJ real estate agent for a referral to an inspector, especially if your home is older.  Find out what needs to be done and invest in the fixes you can afford.  It may delay selling a bit, but it’s better to start with a top quality product.

Approval Failures

If an issue occurs on the buyer’s side of the table, it is usually stems from a mortgage approval issue.  For one reason or another, the buyer doesn’t get approved or doesn’t get the rate that he needed.  This can cripple a purchase.

If financing falls through or never materializes, the seller is not obligated to wait on you.  If you are lucky, the buyer may wait for you.  He may demand more earnest money to secure the promise of purchase.  However, he can also accept another offer and leave you to find another house once you do have your loans in order.

The best way to avoid this disaster is to get preapproved, not prequalified, by your mortgage lender prior to house hunting.   As a seller, you can require proof of preapproval before accepting an offer. 

These are both avoidable issues.  With a little proactive effort, you can help smooth the way to an easy closing.