Playing Chess, Time Machines, Beauty Contests, and Ugly Children

Harrisonburg Real Estate News and Commentary

HGTV Can’t Sell Your House

Many people these days are wondering why the home they have loved and enjoyed has been on the market for many days and months without a contract….without a sale. One woman said to me, “I have had a professional designer stage my home, and I had a landscaper help to create the curb appeal HGTV said was so important.”  “We listed our home with professionals, and we have done everything you have asked without success.” “What are we doing wrong?”  She was doing a lot, but the most important thing that lures buyers to your home is price. She priced her home too high and then wouldn’t take sound advice to lower it to market price.

It’s a Chess Game and You Are Protecting Your King

Staging, curb appeal, and all of the other HGTV buzzwords are only a small part of what ultimately helps to sell a home. Like a game of chess there are a number of winning strategies you can employ.  But, protecting your king (price) so fiercely that you ultimately fail to achieve the goal of selling your home is ridiculous and a game loser. Your king may have to move to win the game!  Why are you wasting your time, and your Realtor’s time marketing a wonderful property when you really are not ready to sell?  When you have had your property listed for months with no bona fide offers or interest in your home, what makes you think that holding your price steady will sell your home? It has been rejected by the market! Ouch! 

It’s the bigger sucker theory at play, hugh?  You know the one I’m talking about….there must be someone out there so stupid that they won’t know my home is overpriced.  Likewise a strategy of reducing the price over time while following a retracting market is even more fool-hearty. You’re chasing your opponents queen all over the chess board with your pawn….another losing strategy.  If you consider the time value of money you will find that holding out for a price actually costs you money in the long run.  Like the true chess-master you need to see all the angles of the board in order to beat your opponent (that pretty little rancher or cape cod down the street) and secure that elusive buyer in today’s market.

A Time Machine Would be Helpful Right Now

In a buyer’s market where there are many sellers in competition, your best move is to price your home aggressively below the market right from the start.   Also keep in mind that all of the money you think you’ve made as your home appreciated in value over the years fluctuates up and down.  No real gain is recognized until you actually sell!  So if you are agonizing over the fact that your home would have sold for more money 3 or 4 years ago, try building a time machine, go back, and sell. That will be easier than trying to convince a savvy buyer, who has all of the information of the internet at their disposal, to pay you more today.  No one should try to time the market, buying and selling your home in order to make quick money.  This is a strategy best utilized in the stock market and even there should be done over a long term. 

More Than Just a Beauty Contest

Many people make the mistake of believing “..my house is better, bigger, nicer, newer, prettier, etc.. than they guy’s across the street, so I’ll be able to get more than he got.”  We all think our children are more beautiful than anyone else’s children. Is that the truth or are we deluding ourselves?  Where did all of us ugly people come from?  (Come on….my mother used to tie a pork chop around my neck so that the dog would play with me, but she thought I was beautiful.) Just because you added this upgrade or that addition to your home,.. or built and painted that,..your home will not necessarily sell for more. 

Case in point, I sold a house to someone who installed a beautiful pool soon after they purchased.  Years later they asked me to help them sell their home. We eventually sold it to someone who really loved everything about the home, but the pool.  The new purhaser wanted to pay less for the home because they saw a pool as a liability and they subsequently had it filled in. 

So remember, home buying is more about emotion to the buyer and seller than any other purchase in our lives. Which brings me to my final point…….

Hire a Professional to Help You to Win the Contests

Emotions aside, buying and selling a home is often the most significant financial event in our lives.  After you have uttered these words, “I think I would like to sell my home”, or “I think it is time to buy a home”, the next step is to hire a professional who will put emotions aside and guide you through the myriad of complex processes and negotiations with a goal of insuring you get your best deal. It will pay you dividends in the long run.

Barry Suttles - REALTOR

Kline May Realty

540-246-5666 anytime mobile

540-437-3671 office

www.BestValleyHomes.com 

Buying a Home- An Investment or A Place to Live?

Harrisonburg Real Estate Guru - News and Commentary You Can Use

Buying a home?  Well… why are you buying a home?  Are you buying a home to sell at a huge profit in a few years?  Not so fast! 

You should be buying a home to live in and to enjoy with friends and family and hope that one day it will be worth more someday.  A home is a utilitarian product and should not be viewed as a short term investment vehicle.  However, the people of America were deceived into believing that real estate was much like the stock market, or other financial markets, where you could buy and sell, over and over, (churning) and make some good money.  Like the dot-com boom, and other similar financial booms, there is always a bust.  Unfortunately today we are experiencing the bust in real estate.  Easy money and loose credit created an environment where many speculated and some made money but an awful lot of people were left holding nothing but the bag.  Such is nearly always the case in these “gold rushes”. 

Location, location, location it is said, is the most important aspect or attribute of real estate. Well our area has watched much of our market remain nearly unchanged because of our location and because of the conservative nature of its population.  This is not an insignificant thing to be considered if you are thinking of relocating or retiring soon. 

The long and short is that the Harrisonburg-Rockingham County area is a great place to live, and if you are considering a move, I’d love to speak to you.  

Barry Suttles – Realtor 

540-246-5666 mobile anytime 

Kline May Realty

The Best Client is a Happy One

Harrisonburg Real Estate Guru

I really love this business.  The best part for me, is when I get feedback from a satisfied client!  I set my personal standards for quality representation extremely high because I think my clients deserve to have an agent who:

•  returns their calls promptly
•  keeps them in the loop with frequent multiple contact channels
• gives them honest and easily understood feedback about market conditions without a bunch silly charts and graphs
• gets them quick and reliable results

Let’s face it, you have many choices.  You can choose anybody to market and sell your home, or you can choose to hire a proven and reliable professional who will work diligently to further your financial goals.  My business is about long lasting relationships and important connections. If you are buying or selling a house in Harrisonburg, or the surrounding areas, you owe it to yourself to be represented by a proven professional.  Call me!

Barry Suttles – Realtor

540-246-5666 anytime mobile

New Homes Group – Kline May Realty

http:\\www.BestValleyHomes.com

When the Investors Return To The Market.. Is it Safe for the Rest of Us?

Watch The Investors -

A common axiom bandied around the Realtor community is when the investors come back and begin buying, everyone else will follow suit.  Well, if for the sake of argument we assume that axiom to be correct, then it may be time for you to buy.  I am personally working with several residential investors who are looking at properties to buy. They say the market for investment properties continues to get better.  My buyers are not the “buy, fix and flip kind of investors”, but people who know that we have probably reached the bottom of the price erosion cycle and they are looking for opportunities for positive cash-flow and upside return.

If you have been sitting on the sidelines and worrying that you may pay too much for property in Harrisonburg or Rockingham County, you may want to begin the search.

When you do, call a professional real estate agent who will put your interest first.  Call me and let’s get started.

Barry Suttles – Realtor

540-246-5666 anytime mobile

Kline May Realty

Harrisonburg, Virginia 22801

Licensed in the Commonwealth of Virginia

How Do I Choose a Realtor or a Real Estate Company?

All Real Estate Companies are not Created Equal

What is your ultimate goal?

So you have decided to sell your home or property, what is your next step?   Well you first need to make sure to identify your end goal.  You say your goal is to sell your house, right?  Or you say your goal is to sell your house with the best terms, right?  Well maybe….. but not exactly.

Your goals should be:

1.       You want to sell your house quickly so that you have access to the equity.  Study the time value of money. 

2.       You want to sell it for the most money possible.  Think about “what the market will bear” or “wringing every last dollar” out of your transaction.

3.       You want to have your home exposed to as many people or potential buyers as possible.  This will help facilitate the first two goals.  The more people who have access to your home the more likely you will find that perfect buyer and you won’t need to settle for whoever comes along.  

4.       The best deal is a done deal where the drama involved was ZERO.

Choosing a Realtor – An Aggressive Advocate or a Best Friend

When choosing a Realtor, it is important to know what you want.  Is it important to you that you get someone knowledgeable who knows the market and has experience?  If you answered yes, then you want a full-time real estate agent who doesn’t just “dabble” in real estate as a sideline to another career.  You should interview Realtors like you were interviewing prospective employees for a job.  Imagine you are hiring a person to look after several hundred thousand dollars of your money because you are. 

Many people make the mistake of choosing a family friend or a person they know is a Realtor. Personally, if I were looking for an attorney to represent me, I would always choose the best one I could afford and I would hire the best person for the job.  Remember, you are hiring a professional to represent you in a transaction where hundreds of thousands of dollars are changing hands.  A Realtor is your agent, and he or she should be acting in your best interest by the very definition of the Agency relationship. Choosing a family friend may be OK, but sometimes this creates issues. Money, business, and friendship often create tensions for some.  When I am hired to do a job, I aggressively represent my clients and seek their best financial interests at all times.

Choosing a Real Estate Company – Size Matters

There are all types and sizes of real estate companies out there, so how do you choose the best one?  Do you recall the 3 goals?  You should choose a company who can help you reach those goals.  For instance a small “mom and pop” operation may be nice to you, but again we’re talking about a whole lot of money here.  A larger company has advantages.  Marketing is the key to receiving the most money for your property.  Larger companies have more resources and often have an internal marketing advantage within its walls.  With many agents, it is very likely that your home will be sold by one of those agents due to size and an economy of scale advantage.   Also many larger companies have an internal marketing and IT staff and in this technology weighted economy that is very important.

Marketing Tools – Technology is King

Any successful product you can name has a marketing plan behind it.  Putting a sign in your front yard and introducing your home into the local MLS is a poor marketing plan, but that is what you’ll get from many Realtors today.  Recent studies have shown that it takes multiple exposures before a person decides to purchase.  My company uses many innovative ways to get your home exposed to many potential buyers.  See goal 3.   

Wrap Up

I think you’ll agree that if you take the time to choose wisely it can save you a lot of money in the long run.

Barry Suttles – Realtor

New Homes Group Manager

540-246-5666 mobile

540-437-3671 office direct

540-437-3500 Kline May  Realty

Barry@providencevalley.com

$8000 Housing Credit Explained

Taken from a report by the National Association of Realtors.  

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Register for Sept. 3rd  Research First-Time Home Buyer Tax Credit webinar (Aug. 24)

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

If you are ready to buy your first home in Harrisonburg or the surrounduing area, call me at 540-246-5666.  Time is running out on this tax credit and there is some doubt that it will be extended.

Barry Suttles – Realtor

Help for You When You Are Buying a Home in Harrisonburg Virginia

Buying a home is more than finding a house

After you have decided to look for a first home or a replacement home it is important to put a game plan in place.  From the Realtor you choose, to the person who will do a home inspection, to the person who will find you a suitable mortgage, there are many ancillary people and services you will need.  You want to make sure that this most important purchase is indeed a sound one.

Significant People and Services That Can Help

·         Realtor

·         Mortgage

·         CPA or financial advisor – optional

·         Surveyor

·         Title Company or attorney

·         Pest Inspector

·         Structural Engineer

·         Others  when needed

Realtor

When choosing a Realtor, it is important to know what you want.  Is it important to you that you get someone knowledgeable who knows the market and has experience?  If you answered yes, then you want a fulltime real estate agent who doesn’t just “dabble” in real estate or as a sideline to another career.  You should interview Realtors like you were interviewing prospective employees for a job.  Imagine you were hiring a person to look after several hundred thousand dollars of your money… you are. 

Mortgage

Stay away from the mortgage broker, mortgage brokers, work as middlemen with banks/lenders and borrowers on the wholesale end to secure financing for you. They usually will cost you more.  I would always choose local banks or large mortgage companies like Wells Fargo.  Still it always pays to shop around.

Surveyor

You’ll need the services of a surveyor if there has not been a recent survey of the property.

Title Company

The title company is another service that you can shop for best price. The Title company will close the deal for you and they vary greatly in pricing. But always remember, you get what you pay for!

Pest Inspection

In Virginia, it is the law that sellers of improved real estate supply the purchaser with a clean bill of health regarding the presence, past or present, of wood damaging insects.  Many do other services like water and septic inspections.

Structural Engineer

You may need this service if there are foundation problems or other structural problems.

Wrap Up

As always, if you utilize the services of a well qualified Realtor, he or she will be able to guide through this maze.

Barry Suttles – Realtor

540-246-5666 mobile

Barry@providencevalley.com

Recipe For Success When Buying a Home

Assemble all of the ingredients

Whether you are cooking in the kitchen, or preparing to buy a home, you need to assemble the proper ingredients.

• Check your credit – call your bank or a mortgage professional, they can help you
• If your credit is good, set up an appointment to meet and discuss your mortgage needs
• Once you have an idea of the amount of money you can spend on a home, call a reputable Realtor and set an appointment with him/her and let them know what is important to you

Now you have all of the ingredients for a successful home search and a subsequent purchase.

Mix and allow to work

You have now assembled a team of professionals to work for you.  It is now time to allow them to use their tools and expertise to your advantage.  That does not mean that you sit back and wait for a home to fall in you lap. But now that you have these highly motivated individuals in place you can begin the search for that perfect home.

It is important that the Realtor you choose knows exactly what you want in your next home. Set up a folder that you take with you on every trip with your agent.  In the folder you will have a checklist that you will create that will list all of the important factors of your next home.  You’ll need to include items like:

• Neighborhood – (close to parks, close to shopping, close to work, etc.)
• Number of beds and baths
• Number of square feet needed
• Garage, parking, public transit etc.
• other important items

On the checklist keep track of each house you visit and take copious notes. These notes will be helpful if you have several houses that are in the running to be “your house”.  Use them after your visits to refresh your memory of the house later.  A good agent will want you to see as many houses as you need to make an informed decision.  If you get pressure from an agent to make a quick decision, run away as fast as you can.

Best served cool

Markets are different and knowing “the temperature” of your market will help you.  In a market where there is stiff competition between sellers you will have a better chance of getting a great deal.  This is where having a knowlegable and passionate agent working for you will be worth a lot when the negotiation for your new home begins.  Although you may begin to have an emotional attachment to a home you are considering, it is good to know that your agent is experienced with making offers and will assist you in preparing an attractive one.  Always remember, if you have asked an agent to assist you in purchasing a home, the agent works for you. You are her client and you can fire them if they are not working with your best interest in mind.

 Enjoy

Now that you have made a successful offer, closed the deal, and are living in your new home…..it is time to enjoy.

Call Barry Suttles – Realtor

540-437-3671

when you need an experienced real estate agent.

Leverage In Today’s Market

Purchase Your Next Home From A Position of Leverage

If you are thinking about buying a home in today’s market, many would say you’re crazy.  Everywhere you turn you are inundated with negativity about real estate and the problems with buying and selling a home.  I’m here to tell you something very different.  Real Estate purchasers, and investors can really do quite well today if they possess a few key attributes and follow a few steps. 

Great Credit = Strong Purchaser 

Credit worthiness has never been more important when purchasing a new home.  In the past, credit worthiness for a mortgage meant that you had a pulse, and could sign a stack of unintelligible paperwork half the height of Massanutten peak.  Almost anyone could get a mortgage! 

I recall going to a seminar where representatives of Fannie May did a Power-Point presentation quiz asking questions about whether, or not, these fictitious people would qualify for a mortgage.  I missed many of the questions because, like many people of my generation, I was under the mistaken impression that someone who recently filed bankruptcy could never get a mortgage.  However, at that time, low credit scores, legal judgments, and bankruptcy would not necessarily preclude you from getting a mortgage and owning a home.

Today we live in a very different world.  Recently I heard a mortgage professional tell me that a 720 FICO score could have a problem getting a mortgage. A 720 score is pretty good credit.  The same professional told me that my client who was moving to the area and would have 40-50% to put down on a home, but had not yet secured a job in Harrisonburg, would not be able to purchase a home.  WHAT? Are you kidding?  Not without a job, he said. If you have great credit and verifible income, you will be negotiating your next offer from strength.

Contingencies

Strength without the Contingency.  

Buyers who create an offer for the purchase of real estate that is full of contingencies make their offer less attractive to a seller. Contingencies are provisions in a contract stating that some or all of the terms of the contract will be altered or voided by the occurrence of a specific event,   Common contingencies are the financing contingency, the home inspection contingency, and the sale of an existing home, along with others.

A contingency in an offer tells the seller that something might void or alter the contract in hand, so by having a contingency free, or virtually free contract you become a stronger buyer to the seller with more leverage in the buying and negotiating process.  Work with your agent to create an offer with few, or no contingencies and you will be negotiating from a stronger position.

Quick Close

If you have done a lot of the homework in advance and you have put yourself in a position to be able to move quickly, you strengthen your offer even more.  Telling the seller that you can close in 30 days with no contingencies, a letter of qualification from a local lender, is just about the best a seller could ask for in today’s market. Remember, an offer to purchase real estate is not only about the price which the seller is asking, it is more often about terms of the closing.  A savy buyer can purchase at a much lower price if they do some work up front.

Wrap Up 

All of these tips will make your offer even better to the seller.  I recently worked with a client who was able to walk away from the closing table with over $60,000 in equity after closing using these techniques.  He had excellent credit, could close quickly and had a virtually contingency free offer.  The seller was motivated and needed to sell and after some hard negotiation my client came away the with a great new home and a lot of equity. Understanding the market can literally be worth thousands of dollars. 

Barry Suttles

Manager New Homes Group - Kline May Realty http:/www.barrysuttles.com