Tim McLaughlin, a senior vice president for Weichert Financial Services, offers these tips:

Amount of Cash On Hand and In Reserve. Standard mortgages require at least a 20 percent down payment, while with an FHA loan you can put down as little as 3.5 percent of the purchase price. If you go with a low down payment loan, you don’t have to invest as much of your money and can keep money in reserve to invest or to use for home improvements.

Private Mortgage Insurance. One of the drawbacks of a low down payment loan is that you will be required to obtain private mortgage insurance. This is a type of insurance that protects the lender against the possibility of you defaulting on the mortgage. It will add money to your monthly payment, but can be removed once the balance on your mortgage is less than 80 percent of the home’s purchase price.

Interest Rate. Many times, lenders offer a lower interest rate to borrowers who make larger down payments. Homebuyers need to weigh the cost of putting a small amount of money down, since monthly payments can be more if interest rates are higher.

Call me on my cell anytime at 609-462-3737 for more information or if you have any other real estate related need!

Navigating Choppy Real Estate Waters

Over the past couple of years, you may have heard of homeowners being “underwater” or “upside down” in their mortgages.  These terms refer to negative equity, when borrowers owe more on their mortgages than they are worth.

The Epicurean Center

What’s the recipe for a fabulous, functional kitchen?  This question is key whether you’re buying a new home, renovating your current one to make it more apealing to potential buyers, or enhancing it for your own enjoyment.

Avoiding Rejection

Few things are more heartbreaking than finding the perfect home for you, but then getting turned down for a mortgage.  By knowing some of the common reasons lenders reject otherwise qualified applicants, you can be proactive in avoiding them.

Buying or “Just Looking”?

Is your home on the market?  If so, it is important you know with whom you’re dealing as far as potential buyers are concerned.  Some types of buyers are less desirable than others….

Planting Perks

While the finished product is something to admire, the actual process of gardening offers may benefits to those willing to take the time to get down and dirty.

Read this month’s newsletter here

Deal or No Deal?

The number of vacant properties in the US rose to 18.8 million last year.  With the range of properties available for immediate occupancy, many at reduced prices, good reason suggests that the purchase of a vacant property should be a ”good deal”.  But is it?

Clearing the Air

Your home is supposed to be a respite from the outside world.  But, surprisingly, when it comes to air quality, you’re often bettter off outside your home than in it.  To improve your home’s air quality, consider these tips.

Avoid Overpaying

Anyone who’s in the market for a new home is prepared to spend a lot of money.  But, of course, nobody wants to spend too much.  For tips to help you avoid overpaying for your next home, keep reading.

Your “Not To Do” List

Sometimes it’s a home’s condition or location that turns buyers away.  But, on occasion, it’s the very sellers themselves who put buyers off.  Don’t sabotage your own home sale:  Here’s a list of things NOT to do!

Top Priority

Spring is a popular time for making home improvements.  If you’re like many homeowners, you probably have a list of projects you need done.  But, with which do you start?

Read May’s Newsletter here

Home Sweet…Investment Property?

The U.S. real estate market is changing faster than ever before.  Depending on your state, city and individual neighborhood, real estate prices may have dropped, increased or remained stable over the past few months.

Household Hazards

As we grow more conscientious about our health, our impact on the environment and how we spend our money, we become more choosy about the products we will — and will not — allow in our homes.  Here are five chemicals commonly found in household cleaning products that you are urged to avoid.

The Eyes Have It

Of all our five senses, sight has the greatest influence over a buyer’s decision to buy — or not to buy.  To make your home the apple of buyers’ eyes, appeal to their senses of sight.

Onward & Upward

Homeowners who are looking to move up have new considerations to make now, ones that they didn’t have as first-time buyers.  So for all move-up buyers, here’s some advice.

Read February’s newsletter here

What is a Short Sale, And is it Right For Me?

Now that the holidays are over, your thoughts may be shifting back to your housing situation, including a 2010 move.  The real estate market is still front-page news in many cities, with mentions of  “short sales”.  What are short sales and how might they apply to you?

Stay In, Work Out

With a new year come New Year’s resolution.  Many will resolve to make physical fitness a priority in the coming year, a goal more easily achieved at the gym or when you have a home gym–which you can have, no matter where you live or how little space is available.

Relocating Responsibly

Whether you’re relocating across town, across the country or across the world, you can make your move a little easier on the planet.  Follow these tips to make your next move a more environmentally friendly one.

Read January’s newsletter here

Packing Tips – General Suggestions
• Don’t underestimate how much you own – start packing several weeks before your move.
• Pack belongings that you don’t often use first.
• As you pack, number each box and label where it belongs in your new home.
• Keep a master list of boxes by number, so you’ll know right away if any boxes are missing.
• Use professional packing tape. Masking tape isn’t sturdy enough.
• Cushion top and bottom of cartons with generous amounts of paper.
• Use clean crumpled packing paper when needed. Old newspapers are fine for some items, but could rub off on others.
• Print the word “fragile” on cartons with breakable items.
• Label cartons of essential items, like toiletries and cooking utensils, with “open first.”
• Pack cartons tightly. If a carton rattles or makes noise, the contents could be damaged in transit. Blankets and other soft goods can fill the extra space in not-quite-full cartons.
• Never pack flammable items, such as fuels or aerosols
Moving Reminders

6 Weeks Before “Move-Out Day”
• Start getting the details of your move organized as soon as you can.
• Create a “move information” file. Using a brightly colored organizer folder with interior pockets makes it easy to store important information and collect receipts for moving-related expenses.
• Ask the Internal Revenue Service for information about tax deductions on moving expenses and what receipts you’ll need to keep.
• Contact your insurance agent to transfer property, fire, auto and medical insurance.
• When organizing dental and medical records, be sure to include prescriptions, eyeglass specifications and vaccination records.
• Contact any clubs or associations you are affiliated with for information on transferring, selling or ending your memberships.
• Wills, stock certificates and other one-of-a-kind items (jewelry, photos, home videos) are difficult or impossible to replace. Plan to carry them with you instead of packing them.
• Start becoming acclimated to your new community. Contact the Chamber of Commerce or Visitor’s Bureau to request information on schools, parks and recreation, community calendars and maps.

5 Weeks Before “Move-Out Day”
• Take an objective look at what you own, and decide what must go and what can be left behind. Books you’ve read and will never read again? The pan with the broken handle or the children’s long-neglected games?
• Sit down and start organizing your move. Make a list with two columns: items to leave behind and items to move.
• For each item you aren’t going to take with you, decide whether you’ll sell it, give it away to charity, or otherwise dispose of it before your move.
• Fill out a change-of-address card at your local Post Office
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4 Weeks Before “Move-Out Day”
• Start including your children in the move planning. Make it exciting and fun by having your kids do some of their own packing, and let them suggest layouts for their new room.
• Start collecting suitable containers and packing materials. You can obtain these materials for a reasonable fee from your moving company.

3 Weeks Before “Move-Out Day”
• Make sure to notify your mover if you add items to, or subtract items from, your planned household goods shipment or if there are any changes in the dates of your move.
• If you have young children, arrange for a baby-sitter to watch them on moving day. Since you’ll be concentrating your efforts on the move, a sitter can keep your children occupied and make sure they remain safe during the busy loading process.
• You will want to carry valuable jewelry, cash and important documents with you instead of loading them on the trailer. If you’ve hidden any valuables around the house, be sure to collect them before leaving.
• Some state laws prohibit the moving of house plants. Consider giving your plants to a friend or local charity.
• While you are sorting through your belongings, remember to return library books and anything else you have borrowed. Also remember to collect all items that are being cleaned, stored or repaired (clothing, shoes, furs, watches, etc.).
• Since you will want to have your utilities (electric, gas, phone, etc.) still connected on moving day, arrange to have them disconnected from your present home after your scheduled move-out.
• Call ahead to have utilities connected at your new home the day before or the day of your scheduled move-in.

2 Weeks Before “Move-Out Day”
• Clean and clear your home including closets, basements and attics.
• Dispose of flammables such as fireworks, cleaning fluids, matches, acids, chemistry sets, aerosol cans, paint, ammunition and poisons such as weed killer.
• Plan meals that will use up the food in your freezer.
• Have your automobile serviced if you’re traveling by car.
• Transfer all current prescriptions to a drugstore in your new town.
• Thousands of people leave town without clearing their safety deposit boxes. Don’t be one of them. Call your bank to find out how to transfer your bank accounts, as well.
• Drain all the oil and gasoline from your lawn mower and power tools to ensure safe transportation. Refer to your owner’s manual for specific instructions.

1 Weeks Before “Move-Out Day”
• Make sure your mover knows the address and phone number where you can be reached until you get into your new home.
• Empty, defrost, and clean your refrigerator and freezer, and clean your stove, all at least 24 hours before moving to let them air out. Try using baking soda to get rid of any odors.
• Prepare a “Trip Kit” for moving day. This kit should contain the things you’ll need while your belongings are in transit.

Inspect the surrounding grounds.
• Have you removed any debris, construction materials, old household items, etc.?
• Have you removed any toys, bicycles, and scooters from the front of the house?
• Have you stored garbage cans out of sight or in the garage?

Inspect the roof, gutters, and windows.
• Is the roof free and clear from obstructions?
• Are the gutters clear of debris and neatly hung?
• Are the windows sparkling clean and free from obstructions (such as overgrown bushes and trees)?
• Are there any loose shingles in need of repair?

Inspect the condition of the paint or stucco.
• Is it time to power wash the stucco?
• Is any touch-up painting needed?
• Look at your house from across the street. Does it look tired or faded? If so, a paint job may be in order.

Keep the lawn neatly groomed.
• Is the lawn free from weeds and brown spots?
• Is the lawn free from leaves and grass clippings?
• Is the lawn neatly edged?

Is your landscaping at least average for the neighborhood?
• If not, buy some bushes and plant them.
• Are existing bushes, trees, and shrubs neatly pruned?
• If you have a flower bed, buy a few mature flowers and plant them.

Make your entryway inviting.
• Is the front door in good shape?
• Could your front door use a fresh coat of paint?
• Place a new, colorful welcome mat at the front door.
• Place a nice big potted plant in the entryway, next to the door.
• Polish your knob, lock, and knocker or purchase a new set.
• Make sure your street numerals are polished and in place.
• Make sure the porch and steps are swept.
• Make sure your front door lock and key work easily and fit properly.

Keep your back yard tidy.
• If you have a pool or spa, keep it freshly maintained and constantly cleaned.
• If you have dogs, be sure to constantly keep the back yard free of “debris”.

Check the bathrooms.
• Are all surfaces clean and free of clutter?
• Are shower curtains or doors hung properly?
• Is the floor clean and fresh?
• Are towels clean and neatly hung?
• Are the plumbing fixtures drip-free?

Check the garage.
• Try your best to keep it organized and free of clutter.
• Leave the cars out of the garage when the house is to be shown.

Check the closets.
• Clean out the closets, removing as much clutter as possible, so the closets look roomy and spacious (the same applies to cabinets)

Check the walls.
• Is the paint and wallpaper fresh and clean?
• Are the walls free from holes?
• Are there any colors or objects on the walls that need to be removed?
• Have you removed family photos from hallway and living room walls? (These are ok on dressers or entertainment centers, but it’s better to let the buyers imagine their own pictures on the walls).

Check the floors.
• Are the carpets and hard floors clean and free from stains?
Check windows and window coverings.
• Are all the windows clean?
• Are draperies and blinds clean?

Check the appliances.
• Thoroughly clean all appliances inside and out, even if they are not included with the house.

Check for odors.
• Have you removed any strong or unpleasant odors?
• Try to air out the home prior to showings.
• Don’t use any strong air fresheners or potpourri, as some buyers may be allergic.

Check the lighting.
• Make sure all bulbs are working and in place.
• Before the house is to be shown, turn on all the lights.

Remove pet clutter and debris.
• Is the litter box clean, and has any stray kitty litter been removed?
• Are the pet toys put away?
• Is the pet bedding clean?
• Have you removed pet hair from furniture?

Check the fireplace.
• Clean out the fireplace and surrounding area.
• If it’s a cold or gloomy day, have a fire lit.

Set the mood prior to showings.
• Open all window coverings.
• Flowers placed throughout the home can do wonders, and help buyers remember your house.
• Let the radio play a classical music station at a low volume.
• If you know the day your house will be shown and have time, buy a loaf of frozen bread or a batch of cookies and bake them before the showing (for the aroma). If you don’t bake, a cookie sheet sprinkled with cinnamon in a warm oven for a while does the trick.
• The master bath should also have a pleasing aroma. Some cheap scented bubble bath, and half a tub full of water leaves a pleasing atmosphere (be sure to drain the water before the showing).

Remove controversial items.
• Animal heads on the wall, any books or magazines the may be provocative or controversial could turn buyers off. It’s best to play it safe.
If possible, you should leave the premises when the house is to be shown to potential buyers. Your presence makes the buyers uncomfortable and the may not linger long enough, or be honest with their agent if they think you can overhear their conversation.

1. Distress Selling: At times, selling quickly is unavoidable. That’s when knowing the right techniques to sell your home without looking desperate and making yourself a target for low bidders really pays off. Know all there is to know about the market before listing and work hand in hand with the right real estate professional. Ensure that you are not settling for the first offer through the door.

2. Best Home in the Neighborhood: Your home is one of your most personal possessions. Don’t be blind to flaws and needed cosmetic improvements. This will cause overvaluing of the home, hurting it’s chances to be sold. Listing with the right agent gives you a well informed third eye that will help you price your home at a fair market price.

3. Limited Home Viewing: Buyers want to view a home on their own time schedule. Unfortunately their time schedule does not always coincide with your time schedule. Leave a lockbox or key with your agent so your home can be shown when you are not around. You never know if the one who got away was your buyer.

4. Restrain Emotional Decisions: Don’t allow a few hundred dollarsto ruin a sale. That money will mean very little to you in the long run. Take a look at the big picture and react rationally. Use sound business judgment!

5. Make Cosmetic Improvements: Prospects make up their minds within the first twenty minutes. First impressions can make all the difference in selling your home. Spending $1,200 on new carpet might add another $4,000 to the price of your home. Get an objective point of view from your real estate professional. They can provide you with a list of items that will maximize the profit of your home sale.

6. Disclose Property Flaws: Property disclosure laws require sellers to list any flaws required by your state. If you are unaware of flaws or attempt to cover them up, you risk losing the sale and finding yourself in court. Get professional assistance from your agent who can introduce you to qualified inspectors and ensure the smooth sale of your home.

7. For Sale By Owner: Most homeowners who decide to sell their own home do so because they believe they can save the commission paid to the real estate agent. Everything has a price and selling a home carries a high one. The enormous amount of time and effort required to sell a home often surprises the “For Sale By Owner.” Furthermore, many costly mistakes can be avoided with the right guidance.

8. Refusing to Trust Your Agent: Would you tell a physician that you’ve decided to run your own tests and come to your own diagnosis? By choosing the right Realtor, you can relax and trust their judgment. The right agent is a valuable team member who will protect your best interests and make your sale as profitable as possible.

9. Know Your Market: Most homes that do not sell in their first listing period are priced too high. Conversely, most homes that sell quickly are priced too low and cheat the homeowner out of profits. You need to understand the market and evaluate the value of your home based on fact, not gut instinct or conventional wisdom. A professional agent knows the market, just as you know the market for your business.

10. Choosing a Realtor Based on Personal Relationships: Home sellers often pick a friend or family member as their agent. Choose an agent with a strong track record and aggressive Marketing Plan. A top producer knows the market well and can generate many buyers. Selling your home is one of the most important decisions you’ll ever make! Base it on good, sound business sense and the rewards will add up.

Before you make one of your most important decisions regarding your home sale shouldn’t you become as informed as possible? By aligning yourself with a top agent you ensure that all the important issues and seemingly insignificant but… very important… details are handled professionally. Your home sale should not be a grueling ordeal. The more informed you are, the better chance you have of making a sound business decision.

We sincerely hope these tips and ideas are of value to you. If there is any way we can be of service, please contact our office. We would consider it a privilege to be of service to you!

There are three ways you can choose to respond to each offer. Your first option is to accept one offer in its entirety, basically agreeing to all terms and conditions set forth in that offer, and continue through the rest of the sale process with this buyer. The second option you have is to submit a counter offer, or multiple counter offers, if you are not agreeable to all parts of an offer, but are willing to proceed if the buyer will change those parts to suit you. Your last option is total rejection of an offer, or multiple offers. You would exercise this option if you already have an offer that is acceptable to you, or you have gone through the counter offer process with this buyer, but are unable to come to an agreement. It is unadvisable to reject an offer outright simply because the price is too low or they are asking for too many allowances. In these situations, it is wise to send a counter offer with terms that you find acceptable. Many times buyers are willing to pay more than what was stated in their initial offer, they are just trying to negotiate the best deal for themselves. You shouldn’t be insulted by a lowball offer; just see it as a starting point for the negotiations.

Most likely, the part of an offer that will get your attention first is the price. This aspect certainly deserves a lot of attention, perhaps more than any other element of the purchase agreement. However, this is not the only figure that will affect your bottom line, which is why all the other components must be examined as well. As we mentioned before, a low-priced offer shouldn’t automatically be dismissed; it might be a cash offer with a short escrow and very stable buyer. In this case, the buyer’s financial circumstances are important. A buyer may need to acquire new financing, a part of their down payment might be coming from the sale of another property, or they might be requesting seller financing. All of these can have a large impact on the quality of an offer. In the purchase agreement, the buyer can set a close of escrow date, determine who will pay for certain fees, request various inspections, set a limit for the cost of repairs, decide how much earnest money they are willing to deposit into escrow, set just about any contingency they choose, and list which personal property items they want to be included. Every aspect here is important, and must be carefully considered before making a decision. Unfortunately, these are only a few of the items from the purchase agreement that need your attention. Every item in the agreement is negotiable, so you have to take everything in, and look at each offer completely in order to make the best decision for you.

As for the negotiating process, you want to maintain an air of cooperation, keeping everything professional and courteous. Never be too rigid or demanding; something may be discovered in one of the inspections that will require further negotiation later, and you will want the buyer’s cooperation then. When you want something during negotiations, it is good practice to give the other party something they want in return, an exchange of negotiating chips. This can go a long way to getting you what you’re after, and the buyer sees that you are willing to cooperate.

With all the different parts of a purchase agreement that can impact your sale, the negotiating process can be overwhelming, especially if you aren’t familiar with every clause of the agreement. While an attorney would be best qualified to explain any of the language in the contract, and explain the legal repercussions, a professional real estate practitioner can walk you through this process and offer their expertise and experience in negotiating the sale of a home. If you would like our assistance with the sale of your home, or have questions about the negotiating process, please contact us.