Seller FAQs

2 things I hate about being a Realtor

July 30, 2011 by Michael Dunn

There are only 2 things I really don’t like about being a Realtor.

1. Fumbling around with all the keys! Does anyone else get annoyed when there are numerous keys, darn things don’t work correctly and who knows what works what. Then to top it off you have your own keys in your hand, your lock box key, probably a cell phone and the mls sheets fumbling around. Maybe I just need a purse.

I was showing homes yesterday and ran across this house that had the keys color coded. That made my day!

2. Can anyone guess what the 2nd thing is I don’t like about being a realtor? 🙂

Is this odd??

July 3, 2011 by Michael Dunn

Today I was out showing homes to a first time home buyer and ran across this booklet at a home for sale. Normally booklets and flyers point out the good features of a home?? Does anyone else think it’s odd that this pointed out that there is a warranty on the roof that is going to expire in 2005? Wait a second, that was 6 years ago? At what point is a “new furnace” bullet point no longer a good thing? This was installed 14 years ago which is still better than an original furnace (this home happens to be 40-50 years old) but……

Thoughts??

Do Open Houses Sell Houses?

July 1, 2011 by Michael Dunn

The most recent statistics show that the odds of selling your home directly from an open house are 1 in 250! That means if I do 1 open house per week it would take almost 5 years to get your house sold via an open house!!

Open houses are typically a lead generating tool for the Realtor holding the open house. Typical visitors to open houses have no information about your home regarding the price, size or condition as most of the foot traffic stems from people driving and seeing the open house signs.

Is a 2/1 Buy Down Your Solution to Your Next Mortgage?

June 16, 2011 by Michael Dunn

Make your home ownership experience more comfortable with a 2-1 Buy Down from Legacy Mortgage. The loan is a FIXED 30 year loan with a reduced interest rate for the first 2 years. This program allows you a lower payment those first years leaving more cash each month for the little extras.

How the loan works. The first year rate is 2% points below the market rate, the 2^nd year rate is 1% point below, and years 3 – 30 are at the market rate from when you closed.

This loan starts with a lower interest rate for the first 2 years and is FIXED for the next 27 years.
An example is, year 1 rate would be 3.0%
Year 2 would be 4.0%
Years 3 – 30 would be 5.0%
The cost is 2.5% of your mortgage amount. A $100,000.00 mortgage would cost $2500.00.
Buyer or seller can pay this.
The principle and interest payment on a $100,000 30 year fixed at 5% is $536.82.
The principle and interest payment on the 2-1 Buy down $100,000 loan first year at 3% is $421.60 a difference of $115.22 per month.
The principle and interest payment for the 2^nd year at 4% is $477.42 a difference of $59.40 per month.
The principle and interest payment for years 3-30 is $536.82.

This loan allows you to have a reduced payment during those first few years of homeownership making the transition much more comfortable for buyers.

Call Legacy Mortgage and Rachel Donovan to get all the details on this loan as well as all other mortgage loan options.

Rachel Donovan
Legacy Mortgage
505-328-4792
rdonovan@legacymortgagenm.com
http://legacymortgagenm.com/RDonovan/

New Mexico Real Estate Contracts (Owner Financing)

June 14, 2011 by Michael Dunn

They myth that NM Real Estate contracts are illegal or the devil is just that, a myth. They are definitely not illegal and are used quite often in New Mexico. A New Mexico Real Estate contract is a legally enforceable agreement where the seller agrees to sell and the buyer agrees to buy real property in New Mexico on a deferred payment arrangement. Once the buyer performs all of the obligations per the contract he/she is entitle the the deed. The Real Estate contract does not convey Legal title but does convey equitable title. Simply put it obligates the seller to convey legal title once the buyer has fulfilled the terms outlined in the Real Estate contract.

There are no requirements on how the contract terms should be wrote. Its all up to the buyer and seller. Typically amortized over 15 or even 30 years just as would be outlined in a regular mortgage. I have seen the interest rates pretty close to the going rate for a standard mortgage on up to a few points higher than that of a regular mortgage. So, if the going interest rate for a normal mortgage is 5% you might see an owner financing rate 6-8%. Once again, this is all negotiable and up to the buyer and seller to agree upon.

The obvious reason for doing a NM Real Estate Contract is that the parties don’t want to or can’t obtain a normal mortgage. This could be for numerous different reason:

-Maybe the buyer owns too many properties, makes enough money to support another payment but does not fit the guidelines of obtaining another mortgage thru a lender?? In the investment world this happens a lot with lenders getting tighter and tigher on the criteria

-Maybe the house does not qualify for a mortgage?? Normal mortgages require an appraisal to be completed and depending on the condition of the house it may not be a home that would fit the criteria that the bank is willing to lend on. Tyically seen in home that need renovating. There are no requirements as to the appraised value or condition of the property in owner financing unless the buyer requests it.

-Maybe, just maybe, the buyer is an independent contractor or a small business owner that has a great credit score and has plenty of money for a down payment but still does not meet the quidelines to obtain a mortgage thru a lender??

Point I am trying to make here is that these are not just used because the buyer has terrible credit, no money down and probably wont make the payments. (And yes, I have heard of them referred to that way). These can be used to achieve a common goal….. to buy and sell a home

Staging Tips to Getting Your Home Sold

June 14, 2011 by Michael Dunn

Do you want to show your home or sell your home? Winning the beauty contest and the pricing war are 2 key elements in getting your home sold. You only get one chance to “WOW” the buyer so why not make it count? Here are a few tips to winning the beauty contest

1. Unclutter –If a house is cluttered, it feels smaller. Give the visual of more space by organizing and removing half the contents of closets and cabinets. This action creates a spacious, organized feel. When in doubt, throw it out! Other options are to give it away, store it or sell it. ***Follow the rule of 3’s (Any flat surface should only have 3 items on it. eg. blender, toaster and knife block…. nothing else!)

2. Clean – Show potential buyers that the home has been well cared for and has pride of ownership. Scrub walls, counters, floors and appliances. Bring the outdoors in with sparkling, clean windows. A scratch cover, wax, or stain/sealer will return the warmth and glow of natural wood. Be sure every room smells as clean as it looks. Use an odor neutralizer to clean away pet and cooking odors. You might jump start this process by initially hiring a professional cleaning service.

3. Repair – Making repairs before the home goes on the market can actually save the seller money, stress and negotiation. Consider a home inspection to eliminate buyers’ objections before they arise. Professionals can handle the complicated repairs while the seller can handle the others. A potential buyer who loves the home but thinks a lot of money will be needed to make repairs may make a low offer.

4. Neutralize – Create a home for many lifestyles and tastes. Neutral paint, décor and carpeting help buyers mentally and emotionally move in. Unusual colors or outdated decorating may make it difficult for buyers to imagine their furnishings in the house. Choose neutral, warm colors. Replace family photos with a few carefully chosen accessories. Some people are allergic to or afraid of animals; the seller should kennel the pets or take the pets out of the house during showings.

5. Dynamize – If buyers can imagine daily life in the house, the seller will build an essential emotional connection with them. Have the seller pretend to be a buyer and take a complete tour of the house from its curb appeal through the entire house. Evaluate the subtle message that each part of the home should convey. Then decide how to add elegance, style and grace. The seller wants to show the buyer how relaxing the home feels, the privacy it offers and the comforts of home that it portrays.