Your First Offer – Take it Seriously

When thinking of selling your home, remember the old adage, “A Bird in the hand is worth two in the bush”.

This is relevant when talking about offers on your home in a buyer’s market; a stable market and I have even experienced it in a seller’s market that often the first offer turns out to be the best one the seller will get.

Do not discount your first offer because you think a better offer will come along. Always consider your first offer seriously and treat it with respect. An early offer does not necessarily mean there will be more offers; it could just fit the needs of that particular buyer who made the offer. In addition, your home will get the most interest from buyers the first 14 days it is on the market. After that, your home will still have interest but activity often diminishes over time.

As long as the offer comes from a motivated buyer, even a very low and does not mean a mutual agreement cannot be met. It is not uncommon for a buyer to offer a price below what they are truly willing to pay. Remember, if a buyer is going to take the time to go through all the documents and sign a purchase agreement, the offer indicates a serious interest in your home. Over the years I have had initial offers significantly under list price, but with motivated parties on each side and professional real estate agents facilitating the negotiations, deals do come together! Remember, the longer your home is on the market the more it costs in mortgage payments, taxes, insurance, upkeep and inconvenience.

I’m happy to work with you to fine-tune your home’s listing price so it fits our every changing local market. In addition I will also advise you on what will make your home appeal to the broadest audience and work with you through the entire selling process. Feel free to pass along this information to your family and friends too!

Organization: A Fresh Start

Albert Einstein counseled “Out of clutter, find simplicity”.  In other words, “stay organized”.  A few easy ideas can help save you tons of time in the long run.  Five minutes a day wasted searching for misplaced items can add up to a whopping 90 days over your lifetime.  Consider these tips to cut down on wasted time.

1. Stay on top of your mail.  Check over your financial statements for unauthorized charges or mistakes. Pay bills on time, then promptly store them away in a file. If you go digital, use something like Quicken or QuickBooks and all the paperwork goes away.
2. Switch to automatic bill payment.  This system work great for vital service such as water, electricity, phone and even credit cards.
3. Prepare for the unexpected. Carefully catalog all your keepsakes. Photograph and list your household valuables along with estimates of their value.  Keep records of all your accounts – insurance, banking, credit and loans – including the account type, number, expiration date, and customer service numbers for each. Photocopy the important contents of your wallet; driver’s license, medical ID, credit cards, front and back. Once you have documented everything, make three copies.  Keep one at home, one in your emergency kit and another with a family member or trusted friend.

Believe me,  just a few initial extra steps can save you time and make a big difference in the long run!

Real Estate Merchandising

It may be a cliché, but your home has only one chance to make a first impression.

Although sometimes confused with marketing, there is a dramatic difference between real estate merchandising and real estate marketing.  The marketing aspect of real estate represents what a real estate agent does with your property while it is on the market.  The merchandising of your property is the skill required to increase the value of your home even before its put on the market.

A few questions to ask a prospective agent to see if they have expertise in this area might be:

• Explain the difference between marketing and merchandising (if they say they are the same thing, that is a tip-off)
• What staging or merchandising can be done to add value to our home?
• What did you do/recommend for other like properties and how did it influence the results of the sale?
• What areas of concern might potential buyers have with my property? What are your recommendations to address these concerns through effective merchandising?

Remember, skilled agents are committed to property preparation and  can help you coordinate service providers to effectively prepare your home for sale.

Realtor Volunteer Service Program

Every year Realtors throughout Santa Clara, Santa Cruz and San Mateo counties participate in a community outreach project to help seniors.  The program is designed to support home safety for senior home owners and renters who are physically challenged and lack the financial resources to get certain tasks accomplished.  Last year the Mountain View/Los Altos District Council alone had 95 volunteers, and we serviced 45 homes in the Los Altos and Mountain View areas.  This year’s date is Wednesday, May 9th, 2012.  If you know of someone that can use our services email me at sobrien@interorealestate.com  We will make sure they get an application. Applications are due back to Silicon Valley Realtors Association by March 15, 2012.

Hazardous Waste Disposal

Do you have any hazardous waste items that you need to dispose of?  You can schedule a drop-off by calling Santa Clara County Household Hazardous Waste appointment line at 408-299-7300.

Items include: paint, batteries, pesticides, household cleaners, motor oil, anti-freeze, mercury thermometers, fluorescent light bulbs or prescription medications.

You can also schedule your drop-off at a designated site in Sunnyvale on the following dates: February 18th, March 17th and April 21st and a drop-off in Los Altos on April 14th.

Ensure Against Late Payments – Automate Them

It is amazing how many people are broadsided when they have their credit reports pulled for a new loan. Your credit score plays a major role in determining whether you can get the best loan and interest rate when you go to borrow money or apply for credit.  Since 35% of your credit score reflects how well you pay your bills on time, it is worth it to make sure they are paid on time!  Even with the best intentions you might inadvertently miss a payment while on vacation, misplace a bill or simply forget.  One way to ensure against missed payments is to set up automatic bill payments.  Three easy options are to set up your bill pay accounts using direct debit, use online banking to set up a recurring payments or use eBills.

• Direct debit.  Some lenders or creditors offer a service which you can authorize the company to directly debit your bank account every month (quarter, etc) to pay the full balance of your bill. You merely give them your bank account number, routing number and the billed amount is drawn from your account automatically on a specified date.
• Online Recurring payments. Use your online banking system to set up recurring payments to your creditors. Through these systems you provide the name, address and account number of the company to be paid, along with the amount to pay, due date and they will pay automatically.
• eBills.  The eBill system is used by many different types of companies and delivers bills to you online through email.  If your bank participates in eBills, you may set up automatic payments when those eBills arrive.  Otherwise, you can go to the company’s website to make your payment.

If you choose not to set up automatic payments, it is always a good idea to note the bill due dates (put the due date 7 days earlier than the actual date) on both the outside of the bill envelope as well as your electronic or paper calendar. Just do not forget! It will not only cost you in late fees, but interest rates down the road.

Going Green? A Few Tips to Reduce Your Home’s Expenses.

Going green isn’t just for environmentalists anymore.  Homeowners can save thousands of dollars when updating their current residence or building a new home.  There are many ways to make your home more energy efficient; from switching to Compact Fluorescent Light Bulbs (saving about $30+ in electricity costs over each bulb’s lifetime) to installing solar panels (saving up to $2,500 on an average home’s annual utility bill).  And according to the Appraisal Institute, for every dollar saved on a property’s utitlity bill, a home’s appraised value increases about $20.

Here are some suggestions to consider when “going green”:

1.  Lower utility bills.  Insulation, appliances, windows and heating systems all have the ability to be energy efficient. Upgrading everyday appliances to Energy Star will certainly give you savings on electric bills right away.  Tax credits may be available for products such as windows, doors, insulation, roofs, HVAC an water heaters (non-solar).

2. Materials Matter.  Outside the home, recycled plastic lumber and wood composite materials reduce reliance on chemically treated lumber and durable hardwood for decks, porches, trim and fencing.  Inside the home, greener flooring choices include natural wood, low-VOC (volatile organic compounds) carpets for better indoor air quality, laminates that successfully mimic scarce hardwood, and linoleum, a natural product making a design comeback.

3.  Control your environment.  By installing a programmable thermostat to control your heating and cooling equipment, you can create a comfortable and energy-efficient living environment.  These units typically save you 10-15% and cost anywhere from $40-$100.

4.  Think outside the box.  Not all greening is done inside the home.  Thanks to Wind, Solar, Geothermal and Fuel Cell Tax Credit, tax credits are available at 30% of the cost, with no cap through 2016 (for existing homes and new construction) for Geothermal Heat Pumps, Solar Panels, Solar Water Heaters, Small Wind Energy Systems and Fuel Cells.  More detailed information on solar energy can be found at www.ases.org.

5.  Conserve water.  This includes both inside and outside the home.  According to the EPA, 60% of our water usage is from toilets, showers and faucets.  Installing low-flow showerheads, repairing water leaks in tubs, showers and sinks and replacing household appliances like dishwashers with more efficient models can save 11,000 gallons of water per year.

Just a few of these steps can help you “go green” and save money at the same time.