HOME SELLERS: THE CURSE OF THE FIRST OFFER

Adrienne Daugherty

ADRIENNE DAUGHERTY, Cincinnati’s Real Estate Consultant

Websitehttp://www.ToughMarketTV.com   |   EmailAdrienneDaugherty1@gmail.com  | Office: 513.554.4800
Park Realtors, LLC 11427 Reed Hartman Hwy #405 Cincinnati, OH 45241

Star of “Tough Market!” TV Show (now filming)

Radio Talk Show Host “Real Estate Radio Hour” on WKRC  iHeartMedia Sundays at 4 pm Eastern Time (55KRC THE Talk Station!)

 

Sometimes when everything goes right we have trouble accepting that fact. Perhaps nowhere is this phenomenon more clearly illustrated than in the case where a seller receives a good offer right away.

The annals of real estate are well stocked with stories of sellers who refused to take a good, but not perfect, first offer, and who then waited a long, long time before finally accepting something else at a considerably lower price. And most agents who have been around for a while know to shudder when a good strong offer is made almost at the outset of a listing; for the seller’s reservations are almost inevitable. “Did we list it too low?” “If someone will offer this much so soon, maybe we should wait a while and see if we can get more.” Etc.

When we read of Silicon Valley listings routinely selling at 15% above list price, and when we’ve just recently come through a period when multiple-offer situations were commonplace, it is understandable that such thoughts come to mind. Nonetheless, they are generally unfounded, especially if the market is anywhere near “normal”, as ours is today.

As an antidote to the ill effects of the “curse of the first offer”, a couple of observations might be kept in mind.

First, the fact that an offer is received early in the listing period — even in the first few days — doesn’t mean that the property has been listed too low.

It is easy to overlook how very efficient the residential real estate marketplace has become. Modern multiple listing systems (MLS) provide agents, and thus their buyer clients, with virtually instant access to information about existing inventory and about what has newly come on the market. In the old, old days a buyer’s agent did not become aware of new listings until “the book” (i.e. the compilation of MLS listings) was published. There might have been a lag time of ten days or more from the time the listing was taken.

Today, a good buyer’s agent will have electronically entered a “profile” of his client’s needs and price range into the system. Then, whenever he logs on to the MLS, he will be notified if a listing has been entered that matches that profile. In a low-inventory market such as we have had recently, buyers’ agents will log on a half-dozen times a day, or more, to see if an appropriate new listing has been entered. Moreover, in most systems the buyer’s agent is able to place the buyer himself on a similar notification.

 

The point is that potential buyers learn quickly of the existence of an appropriate new listing. Thus a flurry of activity at the outset of the listing does not necessarily imply a too-low price; rather, it reflects the efficiency of the system.

Secondly, an early first offer does not imply that the seller should hold out for full price.

We all know that there is typically a bit of a dance in the pricing and negotiating for a property. Sellers, with the concurrence of their agents, will usually list their property for an amount that is both higher than what they believe its value to be and higher than what they would be satisfied to receive. Why? Because they know that buyers almost always want and expect to pay less than the listed price

However, when an otherwise acceptable offer comes in near the outset of a listing period, sellers are frequently tempted to hold out for full price, or much closer to it than would normally be expected. Caution should be exercised in this regard.

For one thing, as we have noted, exposure of the property to buyers occurs pretty quickly nowadays, and sellers shouldn’t assume that there are going to be more, much less higher, offers as the listing period progresses.

Secondly, there often can be a transactional benefit to “leaving something on the table.” A real estate transaction is a process. These days, with inspections and disclosures, there are almost always “second negotiations” during the course of escrow. A buyer who feels ground down in the purchase negotiation may well be more difficult to deal with as other issues arise. ~end~

 

 

Contributor: Bob Hunt

HOW TO MAKE A SMART INVESTMENT IN YOUR KITCHEN CABINETRY

Adrienne Daugherty

ADRIENNE DAUGHERTY, Cincinnati’s Real Estate Consultant

Websitehttp://www.ToughMarketTV.com   |   EmailAdrienneDaugherty1@gmail.com  | Office: 513.554.4800 Park Realtors, LLC 11427 Reed Hartman Hwy #405

Cincinnati, OH 45241

Star of “Tough Market!” TV Show (now filming)

Radio Talk Show Host “Real Estate Radio Hour” on WKRC iHeartMedia Sundays at 4 pm Eastern Time (55KRC THE Talk Station!)

 

 

At an average of $50,000, a kitchen remodel is a major undertaking. A good return on that investment means different things to different people. You may be considering resale value, your bank balance at the moment, the elements of your dream kitchen-or all of the above. Whatever the case, kitchen cabinets are a key component of every remodel.

In order to make the best choices for your particular needs and desires, and to make an investment of time and money that really pays off, a little homework is in order. Let’s get you started with a little background on the basics that will have you making decisions with confidence and cooking in style.

Talk to the Pros

When it comes to considering the return on investment for remodels, you’re really talking about what your home will sell for after that remodel is complete. No one will be able to answer that question better than real estate professionals and professional interior designers who work in your neighborhood. Consult with at least one of each to find out what finishes and extras other clients in your area are looking for, and what they’re willing to pay for those amenities.

Start With a Great Floor Plan

So much happens in the kitchen-a good floor plan can really help you direct activity flow in that high-traffic space. Buyers are looking for their dream kitchen, and they are surprisingly informed about what makes a good floor plan. Make sure your cabinets are conveniently placed for maximum accessibility. Whether that’s surrounding the refrigerator with floor-to-ceiling pantry cabinets, or giving up some cabinet space in order to mount the oven on the wall, think carefully about how you operate in the space. Where are the prep, cooking and cleaning zones in your kitchen, and how will cabinetry best serve them?

 

Keep It Simple

Any real estate agent will tell you that, if resale value is a consideration in your remodel, you should avoid ornate or trendy styles and finishes. Go with light colors and finishes and simple, timeless hardware and fixtures. While some ultra modern designs are also super simple, remember that “ultra modern” is, by definition, a trend that will change over time. Shaker style cabinets are a good example of modern, timeless and simple design. They look great in kitchens from American traditional to contemporary European. The important advantage of simple is that it tends to be more affordable, which means it’s much easier to recoup that investment.

Make a Good Match

Of course, open floor plans are very desirable right now, so that’s definitely a consideration to make if your remodel budget will allow it. If you’re already working with an open floor plan, be sure that your new cabinets are faced with doors that complement the design style and finishes in the areas of the house that are open to the kitchen. Here again, simple, light finishes really pay off. If you’ve got contemporary built-ins in the family room off the kitchen, or a traditional media center that takes up some major real estate, make sure the kitchen cabinets fit the style.

It’s All in the Details

With kitchen remodels, it really is all in the details. One thing buyers today are willing to pay for are those little extras that make cooking and cleaning a much more pleasant affair. Roll-out drawers are definitely worth consideration and are really not the budget buster most of our clients expect them to be. A vertical, pull-out pantry near the fridge or cook top is another favorite, as are quiet-close drawers. We love the look and warmth of under-cabinet lighting, which also makes for great task lighting. And while glass front cabinets are not for everyone, if you do make that choice, be sure to go the extra mile with interior lighting-it makes the kitchen a show stopper.

The Nitty Gritty

Now you’ve got a sense of the choices and amenities available and those that buyers are currently looking for. But when it comes to a return on your remodel investment, what should you look for in the cabinets themselves-high-end for the high rollers or down-and-dirty to make that sale? It’s true that you can see the difference in upscale cabinetry created from specialty woods, but most buyers aren’t expecting that extra. On the other hand, you don’t have to be a real estate agent or designer to spot cheap cabinetry, and buyers definitely don’t want to walk into a kitchen they know they’ll have to remodel themselves.

In our experience, there are lots of quality, mid-range cabinets out there that give you the best chance of making your money back. You need cabinets with the design and craftsmanship that allow you to offer those quiet-close drawers and sliding shelves in the cabinets, and finishes that work with all kinds of design styles.

What are you looking for in your next set of kitchen cabinets?

 

Contributor: Kerrie Kelly

BUYER’S ADVICE: WHO’S GOT YOUR BACK?

Adrienne Daugherty

ADRIENNE DAUGHERTY, Cincinnati’s Real Estate Consultant

Websitehttp://www.ToughMarketTV.com   |   EmailAdrienneDaugherty1@gmail.com  | Office: 513.554.4800 Park Realtors, LLC  

11427 Reed Hartman Hwy #405

Cincinnati, OH 45241

Star of “Tough Market!” TV Show (now filming)

Radio Talk Show Host “Real Estate Radio Hour” on WKRC iHeartMedia Sundays at 4 pm Eastern Time (55KRC THE Talk Station!)

 

 

If you’re like some buyers, you may be shopping for a home to buy without using a real estate agent of your own. You don’t trust agents, and you want to shop on your own time at your own pace without some agent pressuring you to buy something you don’t want. They’re just salespeople, right?

Wrong. A salesperson owes you service, but not loyalty, while a real estate agent owes loyalty to whomever they’re contracted to serve. In most cases that’s the seller.

If you call the listing agent on a property, go to see the property, and decide to buy it, don’t expect the agent to represent your best interests.

Here’s how it ‘really‘ works. The listing agent represents the seller in a transaction, and always has the seller’s best interest in mind. Anything you say to the listing agent is not protected and can be used against you in a negotiation.

For example, you might inadvertently tell the agent that you’re relocating and have to find a home to buy in the next week. So when you make an offer, the seller’s agent may tell the seller that you’re motivated to buy quickly, making the seller less likely to lower the price.

If you didn’t know that, you may also not know that you can hire your own agent. who will have your best interest at heart and at no additional cost to you. Like the seller’s agent, the buyer’s agent is paid out of the transaction proceeds.

Your agent can serve you as a buyer’s agent, but in order to do that, you need to sign a representation contract to that effect. Otherwise, she may represent other buyers and sellers, which doesn’t guarantee that you’ll get preferential treatment. This could be crucial in a busy seller’s market when home supplies are short.

In some states, a real estate broker can represent the seller, then appoint one of her agents as a buyer’s representative with no expectation of fiduciary service. Not all agents are comfortable doing that, so they may avoid the issue by only representing buyers and not taking listings, but that’s not practical for most professionals.

Another alternative form of representation is facilitation, where the broker agrees to help move the transaction along for both parties without owing fiduciary responsibilities to either the seller or the buyer.

When you hire an agent, he or she will provide a disclosure that explains the types of representation available in your state, and which types of representation the agent offers.

What you should get from any agent is help finding the right house, first and foremost. Next you want help determining the right price and terms to offer based on current market conditions. You want guidance and support throughout negotiations, the inspection and appraisal, the lending process, and escrow and closing.

Contributor: Blanche Evans

14 SNEAKY WAYS TO GET YOUR HOUSE SOLD!

Adrienne Daugherty

ADRIENNE DAUGHERTY, Cincinnati’s Real Estate Consultant

Websitehttp://www.ToughMarketTV.com   |   EmailAdrienne@reodivision.com  | Office: 513.554.4800 Park Realtors, LLC  

11427 Reed Hartman Hwy #405

Cincinnati, OH 45241

Star of “Tough Market!” TV Show (now filming)

Radio Talk Show Host “Real Estate Radio Hour” on WKRC iHeartMedia Sundays at 4 pm Eastern Time (55KRC THE Talk Station!)

 

Let’s face it: Selling a home is stressful. The longer it’s on the market, the more stress it brings and the more it typically costs sellers. Having to lower the sales price, sometimes multiple times, carry two mortgages, or delay the purchase of a new home if an existing home won’t sell – stinks. You need every advantage you can find to get your home sold. Try a few of these and you’ll be packing in no time. (View the video clip at the end. Hilarious!)

1. Get your neighbors involved.

Neighbors who like you will be happy to help you get your home sold. Same for those who don’t like you. 🙂  Everyone else might need convincing to lift a finger.

2. Crowdsource it.

Accessing the power of social media will naturally increase the number of people who see your home for sale. Up the ante by offering the same incentive to the person responsible for bringing in the buyer.

3. Throw in the kitchen sink.

Incentives can create additional interest in your home and maybe even convert a “maybe” to a “yes.”

“Individual sellers should consider price and other incentives that could entice a buyer to take a look. You have to attract their attention somehow,” said Bankrate. “You want to create a buzz.”

Everything from gas cards to movie tickets to the furniture you were getting rid of anyway, to a year of homeowners’ fees can do the trick.

4. Entice with cookies.

You know how they say the way to a man’s heart is his stomach? Chocolate chip cookies are an equal opportunity seduction tool. Have a couple of packages of Nestle Tollhouse cookies on hand to throw in the oven before home viewings and you just might convert a prospect into a surefire buyer not to mention, if there’s an odor, it’ll help mask/distract the nose of any potential buyer.

5. Toy story

Is there a family touring your home? Set out a few key toys in the play room or put some crayons and a few coloring pages on the kitchen table to occupy the little ones.

6. Research your buyers

Don’t become a stalker…but uncovering a few facts you can use to your advantage could help make that connection with a buyer. Are they golfers? Conveniently leave out your clubs. Wine enthusiasts? Borrow a few bottles from your best friend’s wine collection and arrange on the countertop.

7. Write it out.

Leave a personal note for the potential buyers touring your house telling them how much you have enjoyed living there and offering a few tips about the neighborhood (the best place for ice cream, where to find a good babysitter). The personal touch will endear you to buyers and help make your home memorable.

8. Create a list.

Another way to make your home memorable is to create a “Top 10 reasons to love our house” list. Have it printed and/or laminated and leave it for potential buyers.

9. Another kind of “leave behind.”

Use the best picture of your home to create a magnet or key chain for buyers to take with them.

10. Stage it.

“Sellers need to understand that the way we live in our home is not the way we sell our home,” said Front Door.

Homes that are staged “spend 73 percent less time on the market; typically sell for more money; end up on buyers’ “must see” lists; are viewed as “well-maintained;” and have fewer concessions requested of the seller,” according to the Real Estate Staging Association, said the Daily News.

Staging can cost up to $2,500, but by using tactics used in model homes, sellers might be able to do it themselves. The first step “is a thorough de-cluttering. Sellers should purge the house of all personal belongings, family photos and countertop appliances,” said Front Door. “Furniture should be rearranged so as to make the room appear larger. Space sells.

11. Underprice it.

This is no new tactic, but it is one that can result in a bidding war and a higher sales price that wouldn’t have been achieved otherwise.

12. Forget the open house.

Ditch the typical open house and throw a wine tasting party instead. Feature a few local wines, pull together a couple of appetizers and voila. Not only is this a different approach that will make your listing stand out, it will also showcase the home’s entertainment potential.

13. No bones about it.

If there’s a loud barker in your neighborhood, offering to pay for a day of doggie daycare during an open house may be warranted. Handing out special dog bones packaged as “Open House Bites” will help occupy dogs on your street and help keep them quiet while potential buyers are touring your home.

14. Borrow some bikes.

If you live in a family neighborhood, make sure it looks like you live in a family neighborhood. Enlisting some neighbor kids to leave their bikes outside—and maybe parents of babies can leave out a stroller or two—during an open house will warm up the street and illustrate who lives there. – think  “Funny Farm” (Here’s a clip!) http://youtu.be/aV1wFtRi4m0

…Enjoy your day!

Contributor:  Jaymi Naciri

DECORATING YOUR HOUSE TO SELL?

Adrienne Daugherty

ADRIENNE DAUGHERTY, Cincinnati’s Real Estate Consultant

Websitehttp://www.ToughMarketTV.com   |   EmailAdrienne@reodivision.com  | Office: 513.554.4800 Park Realtors, LLC 

11427 Reed Hartman Hwy #405

Cincinnati, OH 45241

Star of “Tough Market!” TV Show (now filming)

Radio Talk Show Host “Real Estate Radio Hour” on WKRC iHeartMedia Sundays at 4 pm Eastern Time (55KRC THE Talk Station!)

 

From the outside, your home is that perfect mix of classic and modern, with a nice wide lawn, mature trees, and the perfect smattering of flowers. It’s in a desirable neighborhood with good schools, and it’s even priced competitively. So why isn’t it selling?

Perhaps it has something to do with the inside. Yes, you’ve got an open floorplan and four spacious bedrooms and granite countertops and nice hardwood floors. But the rest of it…well, it leaves a lot to be desired. And by “the rest of it,” we mean your décor.

Face it. Your style is outdated.

As long as you don’t mind what people say about you, it’s perfectly OK to have bad style – except when you’re trying to sell your home. This is the time when you have to appeal to the masses, or at least create a foundation of attractive style that others will notice, or that is neutral enough to disappear and allow the home’s great features to shine. If it’s too bold, too bright, too tacky, too out there, too out of style or just plain U-G-L-Y, your house might just linger on the market, turning off all who tour it.

Here’s how you can avoid having the unsellable pad: decorate your house to sell.

What does it mean?

Decorating to sell means highlighting your home’s strengths, downplaying its weaknesses, and appealing to the greatest possible pool of prospective buyers. A few easy tips can help you to do this on your own but if it’s a larger undertaking or if you simply don’t trust your taste (and good for you for admitting it!), staging companies can help.

How do you do it?

Decorating to sell concentrates on three main areas: making the home look bigger, making it look updated, and showing off its best features.

Make it look bigger

Too much furniture in a space can make it feel small. Pare down where you can, taking extra tables and large knickknacks out of living rooms and any extra furniture out of bedrooms. If the bedrooms are small, consider taking out large nightstands that make it feel tight and replacing with small tray tables covered in a simple tablecloth.

A space can also look smaller because of how the furniture is set up or if it’s crammed full of accessories.

“Shoving furniture against the wall doesn’t guarantee a larger room. Try angling your bed or our favorite trick of floating the sofa in the living room with a skinny console behind it. Breathing room around your furniture lends the appearance of more space,” said The Nest.

You probably cleared off your table surfaces to move the furniture around. Don’t put it all back. Instead, put back a few key pieces to keep it airy, and pack the rest away. You’ll need to pack up for your move soon anyway!

Now that you’re an expert at decluttering, apply your skills to the rest of your home. In the kitchen and bathrooms, sweep almost everything off of the countertops so buyers can get a true look at the space. Make sure fireplace mantels are highlighting a few pretty items (think candles!) and pack up the rest. See HGTV for more tips on decluttering and get some more ideas about how to make your home look larger here.

Make it look updated

You don’t have to redo your whole kitchen to make your house look new. Small changes can make a big difference. Old cabinets can be made to look new with a few coats of paint and some new hardware. Replacing your appliances won’t be cheap, but you just might make up the difference in your sales price. And, you can probably take the new fridge with you.

When your place is old or just looks that way, a new coat of paint on the walls is an easy and impactful way to freshen up your space. But, make sure it’s neutral.

“Paint interior walls with neutral colors, like beige, cream or light pastels,” said FrontDoor. “Pale blues and greens are good for bathrooms.”

If your furniture and/or furnishings are old or old-fashioned, it might just be time to swap out. If you’re not looking to spend money on new stuff now, remove the biggest offenders and do what you can to update others. Often, all you need is a can of paint. Get some ideas on Pinterest.

Show off your best features

When you’re selling your home, you want to strut your stuff by showing off its sexiest features. Scan your house room by room. Are you hiding its best assets, like a fireplace that’s obscured behind furniture or big, bright windows that are shrouded behind dark drapes? Might as well just go chuck your wallet down the hill.

Clear out, open up, move away anything that is taking away from the great stuff your house has to offer. If you don’t let buyers see what makes your home special, they won’t see it as special. And it might just sit there, getting older. And sadder. Just like you.

You can get more ideas for decorating your home to sell on Front Door.

SELLING YOUR HOME IN A COLD MARKET

Adrienne Daugherty

ADRIENNE DAUGHERTY, Cincinnati’s Real Estate Consultant

Websitehttp://www.ToughMarketTV.com   |   EmailAdrienne@reodivision.com  | Office: 513.554.4800

Park Realtors, LLC 

11427 Reed Hartman Hwy #405

Cincinnati, OH 45241

Star of “Tough Market!” TV Show (now filming)

Radio Talk Show Host “Real Estate Radio Hour” on WKRC iHeartMedia Sundays at 4 pm Eastern Time (55KRC TheTalk Station!)

Housing markets go which way the wind blows. When the weather’s cold, home sales tend to freeze. Prices fall and supplies of homes for sale increase. Buyers become more demanding.

It’s a buyer’s market, but that doesn’t mean you can’t sell your home for a fair price. You just have to work harder to make it happen.

Turn the weather to your advantage.

There’s a lot about winter that’s fun. Let’s face it; it snows in Cincinnati! Why not turn it into an attraction? Light the fireplace for showings, and throw a cozy cashmere or granny-square afghan over the chair, whichever suits your décor best. Make your home smell inviting.

It’s harder to keep floors clean when the family tracks in mud and snow, so create your own mudroom or mud nook by the front or back door. Stage your mud area with boot racks filled with all sizes of cute Uggs and Wellies. Hang a sled or snowboard on the wall decorated with sprigs of holly. Next to it, hang a red and black buffalo plaid jacket for that Ralph Lauren meets Paul Bunyan appeal.

Keep snow shoveled on the drive and walkways. Put lights in the trees and bushes that make the snow twinkle. You want to make having a home in the winter appear easy to maintain.

Hire a real estate professional.

A buyer’s market is not the time to represent yourself. It may be tempting to recoup some equity by not paying a real estate agent, but you’ll lose more than you’ll gain. A real estate professional can give you an accurate overview of the market, help you with sales and staging strategies, and bring offers from qualified buyers.

Make your home pristine.

In a buyer’s market, only location and condition can move buyers to pay more for any home. You can’t do anything about location, but you can certainly improve the condition of your home. There’s a huge difference between a home that “doesn’t need a thing” and a home that “needs work.”

If there are other homes around yours that are “distressed” with homeowners who have lost jobs, or some other hardship, they won’t be in top condition.

Show pride of ownership by putting your home in top move-in condition so that your home is more appealing to buyers than any other home in your area and price range.

Price it right.

You can expect lowball offers in a buyer’s market, but homes that are priced fairly and in pristine condition will be treated with more respect by buyers.

If prices are falling in your area, ask your real estate professional for help. Pricing according to recent sold comparables might not be as smart as pricing to pending sales — those yet to close.

You have to know what your bottom line is, but pricing your home should have nothing to do with how much you owe creditors, how much cash you need to buy your next home or how much you need for your retirement. Buyers will only pay current or pending market value as determined by the most recent market sales.

Keep negotiations pleasant.

Negotiation is a fine art, and typically works best when both parties get what they want. For example, you may be willing to take less money in exchange for a cash offer or a quicker closing. Your buyer may be willing to pay your asking price, but they may ask you to pay their closing costs.

You’ll quickly realize if you’re dealing with a sincere buyer. Respond to the buyer’s negotiations with documentation, receipts and other information in a timely manner. If you feel the buyer isn’t negotiating in good faith, simply stop responding. You’re under no obligation to respond to an unreasonable offer. The buyer will get the message and either go away or get real.

It may surprise you to learn that buyer’s markets work for sellers, too. In a perfect world, you’ll get top dollar for your home and buy your next home at a bargain basement price, but that’s rare. Instead focus on the big picture — selling and then buying at a reasonable price. Don’t worry about what you didn’t get or what you wanted for your home. When you buy your next home, you’ll be able to take advantage of falling prices, too. It all evens out. The goal is to get the home you want.

OKAY PROCRASTINATORS, YOU HAVE ONE MORE CHANCE TO REFINANCE

Adrienne Daugherty

ADRIENNE DAUGHERTY,

Cincinnati’s Real Estate Consultant


Website: http://www.ToughMarketTV.com   |   Email: Adrienne@reodivision.com

Office: 513.554.4800

Park Realtors, LLC 

11427 Reed Hartman Hwy #405

Cincinnati, OH 45241

Star of “Tough Market!” TV Show (now filming)

Radio Talk Show Host “Real Estate Radio Hour” on WKRC iHeartMedia Sundays at 4 pm Eastern Time (55KRC TheTalk Station!)

Stop me if you’ve heard this before. Is it time to refinance your mortgage? Okay, just kidding. Don’t stop me. Keep reading. Mortgage rates have been so low for so long that borrowers who could have refinanced likely already have. Still others couldn’t refinance because there wasn’t enough equity in their homes. Or, some were just waiting for rates to move down just a little. bit. more.

For those perennial procrastinators, it just might be that time.

According to Freddie Mac’s weekly mortgage survey, the 30 year fixed rate dipped below 4.00% for the first time since the summer of 2013. Not by much, as the average fell to 3.92% as of the October 23 report and has since popped up to 4.01%. Understand, that’s a national average, and you can likely find slightly better rates with a few phone calls, but that’s still very low. And for those who are waiting to squeeze out another .25%, it’s best to be prudent and lock instead of playing the waiting game. Again.

Who should refinance right now? If you have a loan that’s about five years old, your 30 year rate is somewhere in the low 5.00% range. If your loan was funded in 2008, a scant six years ago, rates then were mostly above 6.00%. In either case, exploring a refinance is a good idea. But don’t just look at the rate, there’s more to it.

Payback Time

The interest rate is just one component when considering a refinance. If refinancing because you can lower your monthly payment, think of the closing costs involved before you get too far into the process. Let’s say you got a 30 year fixed rate mortgage back in June of 2009 at 5.25% on a loan of $250,000. The principal and interest payment is $1,380. After about five and half years, the loan has amortized down to $228,113 after having paid a tad over $70,000 in tax deductible interest.

Now say closing costs amount to $5,000 and you rolled those costs into your loan. The new loan might then be $233,113 and with a 4.00% rate, the principal and interest payment is $1,112 for a monthly savings of $230. Not bad. By dividing $5,000 in closing costs with the $244 reduction, in just over 20 months, the lower payments add up to more than the closing costs associated with the loan.

Your loan officer can offer various rate and fee combinations to offset some or all of the closing costs associated when refinancing, but the “payback time” analysis works the same.

So, this is a good deal, right? Lowering a monthly payment by $230?

Losing Interest?

This may not be your best move. Yes, increasing cash flow is a positive but you’re forgetting something. To the tune of $70,000. Refinancing from a 30 year loan to another 30 year after having paid into a mortgage for five+ years? You’ve just extended the loan you already had for another 30. In effect, you now have a 35 year loan.

That’s a tradeoff and something loan officers may not always express. Lowering your monthly payment always sounds good but reamortizing the loan over 30 years might not be your best financial decision. However, trade the 30 year note with a 25 year loan. The rate is typically the same as a 30 year term but you’re not extending the loan. With a 4.00% rate, a 25 year note on $233,113 the principal and interest payment is $1,230. That still saves $112 per month and you’re still saving more interest over the long haul.

Shorter loan terms have higher monthly payments but the amount of interest paid is lower and equity is gained at a quicker pace. That means it can make sense to refinance today for the sole reason to shorten the loan term and spend less on interest.

Lower rates are a key factor when refinancing but don’t get too caught up in the weeds. There’s more to it than lowering the monthly payment. Carefully consider the term of the loan just as much as the rate. A refinance isn’t something you should be talked into. The math itself should be your impartial guide.

“REAL ESTATE-REALITY TV, MAKES ITS WAY TO CINCINNATI, OHIO!”

ADRIENNE DAUGHERTY, Cincinnati’s Real Estate Consultant


Website: http://www.ToughMarketTV.com   |   Email: Adrienne@reodivision.com

Office: 513.554.4800  |

Park Realtors, LLC
11427 Reed Hartman Hwy #405

Cincinnati, OH 45241

Cincinnati’s Real Estate Consultant

ADRIENNE DAUGHERTY IN THE NEWS

Adrienne Daugherty, Real Estate Consultant with Park Realtors, LLC is the Star of the new, Real Estate Reality TV Show “Tough Market!” in Cincinnati, Ohio (now filming)

Adrienne is also a Radio Talk Show Host of the “Tough Market-Real Estate Radio Hour” and can be heard every Sunday at 4 pm EST on iHeartMedia Cincinnati, WKRC (55KRC) THE Talk Station.

Adrienne’s tenacity, straight-forward business model with no sugar-coating is exactly why Adrienne has been so successful in her career which has ultimately landed her on a TV Show pilot that’s now in production as well as a Radio Talk Show host.

Adrienne feels that Customers deserve to hear the truth when it comes to their most valued assets (their homes), and not just get ‘yes-man’ responses just to get signatures on a business contract.

“If you just want to LIST your home, you can do that with anyone. However, if you want your home to SELL, that’s a whole other ballgame” says Adrienne.

Marketing your home for sale with Adrienne Daugherty can cost you LESS. LESS days on market, LESS Months on your current Mortgage Payment & utility bills and LESS amount of time you have to ‘clean up’ for a showing!

Why? Because Adrienne is actually qualified to ‘market’ your home and her average DOM (Days on Market) time for homes she markets for sale are below the area’s averages.

Adrienne says “don’t hire a Realtor to ‘sell’ your home, hire a Realtor to ‘market’ your home so that it sells! If more consumers would adopt this mindset when hiring a Realtor, it would increase the home sellers chances of choosing the right Realtor for the job!”

It’s a “Tough Market” out there and the marketing of your home deserves to be front and center of all the other homes around it, especially in this Market! There are currently more listings than there are buyers so your home needs to stand out.

If you need to sell your home, it’s going to require more than just some fliers, being put in the MLS and lots of prayers that it sells soon. After-all, you want to ‘move’ on with your life!

With today’s technology, buyers are more savvy than ever and if your home isn’t coming up in their search, your home ends up becoming market-stale and then what? You keep dropping the price? That’s not fair to you or your home!

Listing your home with Adrienne for Maximum Market Exposure can give your home the attention it deserves!

Adrienne Daugherty has the credentials and proven sales history as a 25 year Veteran in the Real Estate industry to handle your Real Estate transaction whether it be marketing your home for sale or helping you buy your next home.

Adrienne was the only Realtor from Ohio, out of hundreds-if not thousands of hopeful Agents, who was hand picked by Mr. Josh Flagg, Star of Bravo’s ‘Million Dollar Listing L.A.’ TV show to be trained in the exclusive marketing techniques for upper priced as well as Luxury Homes and has recently returned from Los Angeles from making an appearance on the hit show “Million Dollar Listing Los Angeles” as one of Josh’s Mastermind Students from his ‘Real Agent Academy’.

“It was awesome!” Says Adrienne, “I trained for weeks! I got to fly to LA, was treated like royalty at The Beverly Hills Hotel, got to meet with Josh Flagg, Bravo network people, other outstanding Agents from around the world who were also chosen and it was an amazing learning experience!”

Adrienne has received numerous awards over the past 25 years recognizing her as a Top Performer in Real Estate including Cincinnati Area Board of Realtors (CABR) Circle of Excellence (formerly Million Dollar Club 1996 to 2003) Ohio Association of Realtors (OAR) Awards of Distinction as well as Ohio Association of Realtors (OAR) Awards of Achievement.

Additional Awards include numerous Executive Awards, 100% Club Awards, MEGA Club Awards as well as Home-Gain’s Top Producing Agent Awards!

Adrienne is more than just qualified to assist you in your Real Estate needs, she also enjoys it.

“I would say the best quality I bring to the table for my clients is the art of negotiation” says Adrienne.

If you are in the Cincinnati, Ohio or surrounding area, and need to market your home for sale, or looking a buy a home in the near future, call Adrienne today at 513 554-4800 and who knows? You might just end up on a TV show!

You can catch a “Behind the Scenes” sneak peak of the filming at www.ToughMarketTV.com.

Congratulations Adrienne!

HOW TO ELIMINATE AIR LEAKS IN DRAFTY DOORS THIS WINTER

BROUGHT TO YOU BY

Adrienne Daugherty

Park Realtors, LLC
Branch Manager

Star of “Tough Market!”
Radio Talk Show Host of
Tough Market-Real Estate Radio Hour Sundays at 4pm on
55KRC THE Talk Station!

The only thing worse than cold drafts coming into your home and warm air escaping during the blustery winter season is seeing the proof on your heating bill. Whether your home is heated via gas or electric, those tiny cracks that seem so insignificant can actually have a huge impact on your wallet.

During the daytime, look for any light coming through the space between your exterior doors and their thresholds, jambs and casings. You can pretty much guarantee that where there’s light coming through, there’s air as well. If you don’t see light but can feel the cold, you can double check for drafts by holding a lit candle or lighter near the cracks and watching to see if the flame flickers.

When I moved into my new home a month ago, a quick survey of the back door told me that I was in need of some serious weatherstripping and caulking: there were massive gaps of light all around the door. Unfortunately, this job kept getting pushed to the bottom of the to-do list, but one cold snap with only small electric baseboard heaters to keep me warm was all it took to get me in motion. I purchased several rolls of self-adhesive all-climate rubber weatherstripping, a tube of all-purpose caulk to seal small problem areas, and a sweep for the front door.

Weatherstripping

This first step in weatherproofing my doors was simple as pie. In my previous residence, I had tried to cut corners and use the cheaper foam weatherstripping, which was not nearly as effective as the rubber option I chose this second time around.

After giving the door threshold and casing a thorough cleaning to ensure maximum adhesion, I unrolled the weatherstripping, held it in place to measure exactly how much I’d need, and then I cut the proper length. From there, all it took was unpeeling the covers of both adhesive strips and carefully pressing it into place on the door casing.

My first reaction was to sit back and bask in the glow of my handiwork, but when I closed the door, I could still see some gaps where light and air were coming through… On to step two.

Caulking

Just like every home improvement job, caulking is an easy task if you have the right tools. It may seem blatantly obvious, but this definitely deserves a mention: when selecting your tube of caulk in the paint section, be sure to also grab a caulk gun if you don’t already own one.

After applying your weatherstripping, it’s time to get in there and fill the leftover gaps. Caulk is perfect for this step. Place the tube in your caulk gun, cut a 45 degree angle in the tip, make sure you have plenty of dampened rags handy to wipe away and smooth the excess (I prefer the blue Shop Towels) and get to work! Applying the caulk slowly and methodically, run along the seam and smooth with your rag or towel. Be sure to follow the guidelines on drying times on your tube of caulk before shutting the door.

Once the caulk is dry, shut your door and do your final checks for gaps and cracks. You may need another application of caulk, or you may need to apply another section of weatherstripping to make the final seal.

Door Sweeps

You can weatherstrip and caulk all day long, but some doors will require the installation of a sweep at the threshold to keep drafts from entering at the bottom. Fortunately, these are self-contained and fairly explanatory. Some sweeps attach at the inside of the door, the outside, or directly to the bottom, just be sure to read and follow the instructions.

My sweep was fairly simple to install and fortunately allowed me to keep the door on the hinges. I simply positioned it at the bottom of the door, marked and pre-drilled the holes that would receive the screws, then lined it up and screwed it in place.

These are just a few simple ways to keep your house warm and your heating bills low this winter. What are some smart ways you weatherproof your home?

Reprinted with permission by Sarah Kellner on Tuesday, 02 December 2014 12:18 pm

If You Were Selling Today, Would You Have the Home That Buyers Want?

Knowing what appeals to today’s home buyers, and considering those trends when you remodel, can pay off years from now when you sell your home.

Two new surveys about what home buyers want have me feeling pretty smug about my own home choices. Maybe you’ll feel the same.

Privacy from neighbors remains at the top of the most-wanted list (important to 86% of buyers), according to the NATIONAL ASSOCIATION OF REALTORS’ “2013 Community Preference Survey.” Privacy is no doubt the best feature of my mid-century ranch home, since I can only see one neighbor’s house and it’s a couple hundred feet down my driveway.

It may not be practical to move your neighbors farther away (although I’m sure many people wish they had that superpower), but you can increase your home’s privacy (and therefore its resale value) by planting a living privacy screen (http://www.houselogic.com/home-advice/plants-trees/home-privacy-screens/) of trees and shrubs or by physically screening off your patio (http://www.houselogic.com/blog/patios/screens-protect-your-patios-right-privacy/).

Related: Trees Contribute to Property Value, Energy Savings, and More (http://www.houselogic.com/home-advice/landscaping-gardening/landscaping-home-value/)

 3 More Takeaways for the Next Time You Remodel

1. More and more generations are living together. Another NAR survey, the “2013 Profile of Home Buyers and Sellers,” found 14% of buyers purchased a home suited to a multigenerational household due to children over the age of 18 moving back into the house, cost savings, and the health and caretaking of aging parents.

I did that back when my parents were still alive, and it worked out great for everyone. I didn’t have time to let my infant daughter nap on my shoulder all afternoon, but my mom did. She couldn’t drive to church meetings at night, but I could take her. And neither of us liked cleaning the gutters, but my husband didn’t mind that chore.

Even if you’d rather live in a cardboard box than with your mother, you might want to consider the multigenerational living trend when you’re remodeling. For instance, opting for a full bath when finishing the basement could offer more convenience for you now and boost your home’s resale value by making it more appealing to a multigenerational family.

2. On average, homeowners live in their home for nine years. That’s up from six years in 2007. Since you’ll be in your home for a long time, it makes sense to remodel to suit your taste but also with long-lasting marketability in mind. After all, you don’t want to have to redo stuff. For instance, you can go for trend-defying kitchen features (http://www.houselogic.com/home-advice/kitchens/classic-kitchen-remodeling/), like white overtones and Shaker-style cabinets, which work with a variety of styles.

I feel compelled to caution against going so far out of the norm for your neighborhood that it’ll turn off potential buyers even nine years from now. (It never hurts to get your REALTOR’s opinion on your remodeling plans.)

Related: Home Upgrades with the Lowest ROI (http://www.houselogic.com/home-advice/home-improvement/home-upgrades-you-shouldnt-do/)

 3. Homebuyers love energy efficiency. Heating and cooling costs were “somewhat” or “very important” to a whopping 85% of buyers. If your home could use an energy-efficiency upgrade, go with projects that have a solid return on investment, like sealing your air leaks (http://www.houselogic.com/home-advice/insulation/home-air-leak-seal-tips/) and adding attic insulation (http://www.houselogic.com/home-advice/insulation/attic-insulation-savings/). You’ll save money on your utility bills now and when you’re ready to sell, your home will appeal to buyers looking for efficiency.

By the way, to take back your energy bills, you need to do at least four things. One to two fixes won’t cut it, thanks to rising energy costs.

About two-thirds of survey respondents also thought energy-efficient appliances and energy-efficient lighting were important. Tuck away your manuals and energy-efficiency information when you buy new appliances and lighting. When you’re ready to sell (in nine years) you can pull those out and display them where buyers will see them.

Article From HouseLogic.com

By: Dona DeZube

Published: November 08, 2013