Most experts would advise that the best way to increase your
odds of a successful sale is to price your home at fair market
value. But, as logical as this advice sounds, for many sellers it is
still tempting to tack a few percentage points onto the price to
"leave room to negotiate". To avoid this temptation, let's take a
look at the seven deadly sins of overpricing:
1. Appraisal Problems
Even if you do find a buyer willing to pay an inflated price, the fact
is over 90% of buyers use some kind of financing to pay for their
home purchase. If your home won't appraise for the purchase
price the sale will likely fail.
7 Deadly Sins of Overpricing
2. No Showings
Today's sophisticated home buyers are well educated about the real estate market. If your home is overpriced they
won't bother looking at it, let alone make you an offer.
3. Branding Problems
When a new listing hits the market, every agent quickly checks the property out to see if it's a good fit for their
clients. If your home is branded as "overpriced", reigniting interest may take drastic measures.
4. Selling the Competition
Overpricing helps your competition. How? You make their lower prices seem like bargains. Nothing is worse than
watching your neighbors put up a sold sign.
5. Stagnation
The longer your home sits on the market, the more likely it is to become stigmatized or stale. Have you ever seen a
property that seems to be perpetually for sale? Do you ever wonder - What's wrong with that house?
6. Tougher Negotiations
Buyers who do view your home may negotiate harder because the home has been on the market for a longer
period of time and because it is overpriced compared to the competition.
7. Lost Opportunities
You will lose a percentage of buyers who are outside of your price point. These are buyers who are looking in the
price range that the home will eventually sell for but don't see the home because the price is above their pre-set
budget.
Most buyers look at 10-15 homes before making a buying decision. Because of this, setting a competitive price
relative to the competition is an essential component to a successful marketing strategy.

Take Charge When Buying a Home

If you approach the home buying process intelligently and with confidence, you are much more likely to buy a house you'll be proud to call home.

Approaching the task of buying a home can be overwhelming; there's so much to consider:

• How much house can I afford?
• How can I find the best loan?
• Where will I come up with a down payment, and how much will I need?
• Should I buy a new or resale home, and which will go up in value?
• Should I work with an agent or look at homes on my own?

And these questions are just the beginning. Buying a home is one of the largest financial transactions in your lifetime - do your research so you know what you’re doing.

Here are the two most important things to remember no matter where you are on the road to home ownership:

1. You can and should understand everything that is happening in the home buying process.

There is nothing that is so complex that it can't be easily explained to anyone with average intelligence. Just because you don't apply for a thirty year mortgage once a week doesn't mean you have to take the first one that comes along. You'll need to learn some new terms, apply some new concepts and take the time to understand what you're getting into.

If, at any point, something happens that doesn't make sense to you, simply demand a full and complete explanation. If it still doesn't make sense, seek help from someone you trust like your CPA, your banker or maybe an online real estate columnist.

2. In the world of real estate sales, YOU are the most important person in the entire process.

It's easy to think that everyone else carries more weight than you. The agent talks fast and has an answer for everything. The lender may decline your loan application, and on and on.

But the truth is that you, the buyer, are the one person in the transaction that makes it all happen. If you decide to not buy, the entire process comes to a grinding halt.

So flex your consumer muscle and take command of this process. Surround yourself with a team of professionals that you have confidence in and make them work for you.

Approach home buying with intelligence and confidence, and by doing your homework, and you are more likely to buy a house you’re happy with and to know that you made the right decision.

The pest inspection must also be done by a "certified" pest inspector. You can have it done by the company that does the structural or anybody really, but if they are not certified, you have no legal recourse based on the contract terms.

Septic inspection is probably only done 50% of the time based on my experience because people just assume that if the waste and water "go away" when you flush that everything is fine.

So, back to our story from last week. My buyer took my advice and had all three plus a radon test done.

After the structural, it was clear that the roof had some major issues that were hinted at by our initial walk around. Turns out that there were rafters that were fractured as well as mildew and rotten roof sheeting on 6-8 sheets of plywood. These were areas that may not have been known without the inspector crawling in the hot, fiberglass ridden attic. So that was money well spent.

The following day, the septic inspection was due to be done. The seller had told us that it was pointless and a waste of money because it had been pumped 3 years prior and was fine. The buyer actually considered cancelling the inspection. I strongly advised against it. The septic inspector came and dug up the caps, pumped the tank and ran some water into the leach field. Guess what? The tank was fine, but the leach field was totally plugged and collapsed and was showing water coming up out of the soil.

The lesson is simple, all in all, these inspections cost the buyer close to $900, but saved, as we're finding out, close to $10,000 in repairs that if they were not found prior to closing, you'd have a slim to none chance of recouping any cost unless you could prove that they didn't disclose those items. Bottom line is that it "pays" to have inspections done, they don't "cost" anything. All found items over $1,500 can hopefully be negotiated successfully and it's in the seller's best interest to do so because they then have to disclose those problems, by law. Learn from my experience...use an experienced agent that has your best interest in mind.

When pricing a home to sell, accurate comparables are always the best way. As agents and brokers, we do our best to "adjust" those numbers based on current sale trends. It is not a science, but the best way to predict sales price. As a seller, also have realistic goals when pricing and understand that today's market time is about 6 months, so pricing aggressively, don't read "give it away", will ensure lots of interest and hopefully a quicker than normal sale.

OK, ok.....it's not that bad! Interest rates are still at historic lows but the trend is that they will continue to rise. This has to happen to help get us back to a stable market, (no, we're not there yet!) It's also imperative, if you're a buyer, that you get pretty aggressive looking at homes. Some first time buyers will be "out of the market" if the rates rise even 1/4 %.

Now is the time to get out there and find the houses you DON'T like. Sounds backwards, but that's really what it's about, figuring out what you don't like to help narrow your search to the "perfect" home. There is a lot of inventory out there right now, so start looking! If you need any help at all, I'm here when you need me. Happy hunting!

I've worked with many buyers and sellers throughout my career. One of the most important aspect to professionally working with both revolves around the issue of financing. When it comes to buyers, it is our job to make sure that they have spoken to lenders to find out how much money they are qualified to borrow. This doesn't mean that we try to find them a house that "maxes" out their finances. To me, this means finding them a home they can comfortably afford. Although it's a slow market, the attraction of well priced homes has many homes disappearing quickly to the buyers that are ready. It is crucial that buyers contact a lender and find out what priced home they can comfortably afford BEFORE they look at homes.

Concerning sellers, it is my job to make sure that the interested buyers have also been to a lender and have been pre-qualified for the sellers home at the price they are asking for. Lazy agents don't go the extra mile to find these things out and it's a disservice to their clients, whether it's the buyer or the seller. Banks are being very conservative with who they lend money to, so make sure no matter what side you're on that you do your homework and choose a real estate agent that works for their clients effectively.

If you're a buyer and you'd like a list of lenders to speak with, please feel free to contact me at realtormcgrath@gmail.com

There is a lot of preparation involved with moving. One of those things is contacting your professional movers. You need to call around to see which professional movers have the best rates and which professional movers can move your items to your new location area. Professional movers also have varying options regarding whether they will allow you to pack up your own home, or rent out their trucks, etc.

There are other details involved with moving, the biggest one being finding a new place to live. Getting a new home is a huge undertaking. It is important to know details regarding your new home before you move.

For example, if you move in to a new home that is part of a Homeowner Association it is important to know the rules before your move. HOA has a lot of rules that will be implemented in your neighborhood. Here are some common things to know about HOA.

HOA is all encompassing. What do I mean by that? I mean that there are standardized policies that involve everyone in the neighborhood. No one receives special treatment.

HOA rules are also usually strict. Every neighborhood is different. Rules are made regarding things that you can do on your property, and there are mandatory fees involved.

HOA rules usually make it hard for homeowners to make changes on their home or property. There are limits put in place about what you can and cannot do. HOA rules can be pretty nit-picky too, such as not allowing you to add a basketball hoop in your front driveway.

Fees that are involved with HOA are mandatory. The fee goes towards the HOA fund, which keeps up with neighborhood maintenance and community projects around your neighborhood. If any rules are broken there are going to be subsequent fees, that will increase with every new rule that is broken.

There are also rules regarding the types of pets you can bring in to your establishment. Some rules even are as strict as to say what breed and size of dog you can have. Learn the policies of your specific neighborhood's HOA so you will know these rules before you move in.

Are you planning to put your home on the market?

If so, you may be excited about the possibility of getting your home sold as quickly as possible and moving on with your life in a whole new location. For many sellers, however, it is easy to get so caught up in the excitement of selling the home that you forget to take the necessary measures to keep your privacy protected. After all, several people are likely going to spend a significant amount of time walking through your home. If you are planning to continue living in the home while it is on the market, these means your personal items will be on display and that the potential buyer may look through some of the drawers and other items that are in your house. Therefore, in order to protect your privacy, there are a few steps that you should take before putting your home on the market.

Protect Your Documents

The first thing you need to do to protect your privacy is to protect your personal documents. Remember, if you have items stored in drawers or cabinets that are built into the home, they are fair game for a buyer to open and to search through. This doesn't mean that buyers are purposely trying to snoop. Rather, they simply want to check out the quality of the construction as well as the condition of the item. If you have personal documents stored inside these drawers, however, it is quite easy for a potential buyer to run across them and to read them without you ever knowing.

Many sellers also make the mistake of leaving their mail out in piles on the counter or elsewhere in the home. Not only does this detract from the attractiveness of your home, it also leaves you susceptible to a buyer with less than honest intentions. By leaving your mail out on the table, a potential buyer can learn about your credit card debt, whether or not you have filed for bankruptcy and other personal information that you probably don't want the seller to know. Not only is this an invasion of your privacy, it can also affect the offers that you receive from buyers. After all, if have a pile of mail from a collections agency, the buyer will know you are desperate to make a sale and will likely offer far below the list price.

Remove Personal Items from Your Home

Removing personal items such as diplomas and wedding photos is another important part of protecting your privacy. Seeing these types of personal items can give the buyer a look into your personal life that can affect the amount that he or she is willing to offer on your home. In addition, it gives the buyer a glimpse into your personal life that you might not want to share. Of course, having personal items like this on display can also make it harder to sell your home because it makes it harder for the buyer to see him or herself living in your home.

• Owner occupied
• Single family residence
• 30 year fixed only
• Escrow required
• Debt ratio at or below 29/41%(some exceptions)
• Minimum 620 credit score
• 2% one time guarantee fee paid to the USDA
• No monthly private mortgage insurance
• Rural properties only, see website.
• No cap on seller’s concession
• No down payment
• FHA appraiser required, inspections can be waived
• Full documented income within adjusted income limits
• No documentation needed for past credit issues except defaults on federal debt

Land cannot be valued at over 30% of total value

It really does go without saying that you need to prepare your home when it comes to selling it. Think about it this way; if you have two identical homes when it comes to the structure, design and amount of rooms, these houses may sell for two completely different prices; it really does depend on what you do to your property in order to make it sell.

Selling your home is a huge step and a massive decision, just like purchasing a home is. It is the type of decision that you will make after you have given it a lot of thought. The one thing that homeowners do not do is wake up in the morning and decide to put their property on the market without having given it a lot of thought. You need to look at how it will affect your future as well as your family's future. So make sure that you put a lot of thought into it before making your final decision.

One thing that every seller has in common is that they want to make some top dollar on the sale of their property and they want to do it fast! This is perfectly possible as long as you apply the right careful planning and enlist the right help so that you can achieve this. There are two main ways you can do this; the first being through the presentation and preparation of your property and your first step to achieving this is by disassociating yourself with your home.

You need to focus on the fact that the property will soon not be yours anymore so you need to make sure that you are not still treating it as though it is. The reason that this is so important is you will be able to look at your property with a clear mind and view meaning you will be able to prepare the property a lot more easily. Once you have achieved this you can go onto presenting your property for sale.

It is highly important that you de-personalize your property as buyers can not see past personal artifacts and the last thing you want is for them to be distracted from imagining themselves, their family and their possessions in your property. The next step is one of the biggest and one that will take the most time; getting rid of clutter. We all collect junk, fact, but you should look at the items and think about it this way, if you have not used it in over a year you probably do not need it so pack everything that you do not need away.

When many people are selling their home they often find that when they have packed all of the items away that they do not need on show that they are left without any room for their items, this is where the rental of a self storage unit will come in handy. So if need be rent out a room and pack it with everything and anything that needs to be taken out of your home whilst you are in the process of selling it.

As well as the above you also need to make sure that you carry out any minor repairs that need to be carried out on your property such as replacing cracked tiles, fixing leaky faucets and re-paint walls so that they are a more neutral color.

Once you have finished making the minor changes to your property it is important that you enlist the help of a Michael McGrath who will be able to help you sell your property in the quickest way and for the most valuable.

All of the above will help you guarantee the sale of your property, so what are you waiting for? Grab your paint brush and cleaning products and get going!

What's the advantages and disadvantages of owning a condominium?

Cheaper - Condos are usually cheaper then a comparable stand alone single family property. If you wanted a 2,000 square foot home, you would most likely pay 20-30% less if you bought a condo.

Disadvantage? Well, your neighbors are usually really close, like as in, a walls thickness away. Depending on how well built the condo is, this may or may not effect you. Some condos you may hear your neighbors, others are built sound proof, and having close neighbors won't effect your noise level at all.

Less Maintenance - The best advantage of owning a condo is having a almost maintenance free property. Most condos are maintained on the outside, which means no more shoveling snow, mowing the lawns, and repairing things like siding or shingles.

Disadvantage? There is usually a Homeowners Association fee (HOA) that you are required to pay. Most HOA fees are reasonable, and are there to keep your property managers paid to keep the maintenance activities well maintained. These fees can be anywhere from $50 to a couple hundred dollars a month. It all depends on what has to be maintained.

Common Areas - Most condominiums come with the added benefit of swimming pools, tennis courts, a small park, kids playground, workout centers, or many other amenities. The cost to maintain these amenities yourself could be enormous, but they are usually included in your HOA fees.

Disadvantage? I can't think of many, other then the HOA fee, who doesn't like a pool? This is probably one of the major benefits of living in a condominium, the cost of owning one of these amenities in a stand alone environment can be costly to say the least.

Safer - There are a lot of condo complexes that have gated communities, or other security measures to keep you safe. In larger cities, you may have to push a button to be let into the complex, this is a great way to be safe. You also have a lot more neighbors that are closer, and will be more adept to watching the premise, which is good if you are going on vacation.

Disadvantages There are disadvantages to owning a condo, one of which is the proximity of your neighbors. Most condos are built with a common wall, which means you will be sharing at least one wall with a neighbor, if not more, and this could prove to a be a noisy environment. Another disadvantage would be parking, most condos come with limited parking as you have to share the space with your neighbors. You may also not be able to park close to roads, or on roads, which increases the limits involved with parking.

There are many advantages and disadvantage to owning owning a condominium, and only you can decide if buying a condo is right for you. After reading this article, you should have a better understanding of both sides, and I hope you can make a more informed decision as to what is going to work for you.

"Many people have heard of flipping. There are television shows dedicated to the art of flipping real estate and many news shows regularly feature real estate experts who discuss flipping a house live on air.

Flipping a house is simply the process of buying a distressed property for less than it is worth and then reselling that home at a higher price. Usually, investors who flip houses do some minor repairs or cleanups around a foreclosure home before they resell. This helps ensure that the property sells for more money. More experienced investors may work with contractors to complete major renovations so that they can resell the property at a greater profit.

Flipping a home begins with finding the right property to invest in. Foreclosures are an ideal choice, because they are often under-priced and offer instant equity and therefore a good chance at profits. Foreclosed homes are also attractive because they often need some cleaning and work, which is a perfect way to build some sweat equity.

When looking for homes to flip, look for homes that need some minor repairs. Look for properties in desirable neighborhoods, because you will want to be able to sell the home once you have fixed it up. Find a home that requires a good cleaning and repairs you can mostly do yourself. This will ensure that you can get the repairs done on time and on budget, since you are relying only on yourself to complete the work.

Once you have found some foreclosed properties you think might be a good invest, determine whether these homes are a good option. Always determine on paper how much repairs will cost and add this to the price of the home. After you have completed the renovations, you should still be able to ask for more for the house than you paid for it in total. For example, if you buy a $100 000 home for $80 000 and only need to put in $5000 in repairs to sell the home at the full $100 000 market value, you stand to make a profit of $15 000 for the home.

Once you actually buy a foreclosure property, you will need to repair and clean up the home so that it is ready for resale. Time is of the essence during this process, since you want to sell the home before you have to invest in management costs (such as insurance or taxes). Therefore, put aside enough time to really get the property looking its best. Once the home looks great, you can put it up for sale. Do all you can to make the home attractive to potential buyers, since you do want to sell the property in a timely manner.

Keep in mind, too, that you don't have to buy a home outright to make money flipping the property. You can also sign a purchase contract to take control of a foreclosure property and sell the property quickly to an investor. In this type of flip, the financial investment and risk are minimal. If you clean up the property a little bit before reselling to an investor you can make even more money."

Staging a home's exterior is probably the most important thing you can do to sell your home during a buyer's market. That's because during a buyers market there are too many houses available and just getting someone in to look at your house can be quite a challenge. This is where attention to exterior and curb appeal will help maximize your chances of selling your home. Exterior home staging is important not only for attracting potential home buyers and investors but also for hyping them up before they even step foot inside the house.

Interior home staging is important for decluttering a home and allowing the potential home buyer to imagine their own belongings in it. Exterior home staging is completely different, however. Your goal is to represent a near final product. Most home buyers are hoping that the houses lawn, landscaping, and curb appeal are near complete if not a finished product already. Having a plain lawn can mean a lot of extra work and hassle for the new home buyer. Here's a few sizzle items and tips to help get you started on maximizing your curb appeal to sell your house:

Tip 1: Declutter your lawn. Make sure to rake up any leaves, prune the bushes, pull existing weeds, and remove branches, trash, and any other items that can make your lawn look bad. It's a good idea to mow the lawn too. Nothing is a bigger turnoff than an unkept lawn. This makes the home buyer wonder what else was not maintained very well in the house.

Tip 2: Removing or replacing any exterior rot is crucial to staging a home's exterior. Exterior trim and windows are most susceptible to rot and are a huge turnoff for potential home buyers. Some trim and windows can simply be repainted and revitalized and may not need to be replaced yet.

Tip 3: Use hardscaping to create more than just a lawn full of grass in your front yard. Mulch around your trees to create garden beds and create a boundary around them with rocks or other natural looking stone. Create flower beds near the driveway entrance and in front of the homes entrance to offer a welcoming touch.

Tip 4: Add some color to your home if it doesn't already have it. This can be done by purchasing vinyl shutters if the house doesn't already have them. Another idea is to add a window box to a window and create a dramatic focal point on the house. These are great for blending the landscaping with the home or for splashing some color or character on the house that will keep it generalized and not too personal. Consider painting your door or other architectural accents a contrasting color that will compliment the home and energize it.

Tip 5: Add a nitrogen fertilizer to your lawn that can turn it greener in 2-3 days and give it a healthier look. This one-time, short term solution will help a neglected lawn get a kickstart on life again and rapidly improve the looks and curb appeal of your lawn.

Information about first time home buyer tax credits as amended by the American Recovery and Reinvestment Act of 2009 (HR 1).

Please consult your tax advisor / accountant to determine whether you are eligible for this tax credit before making any decisions or changes to your tax status.  This website is for information only and should be verified by a tax professional.

The 3 changes to the first-time home buyers tax credit program include: 

1.       The Tax Credit is for home buyers (either spouse if filing jointly) who have NOT owned a principle residence during the three-year period prior to the purchase.  Ownership of vacation property or rental property does not disqualify home buyers from this program.

2.       The maximum credit is $8,000 or 10% of the home purchase, whichever is less.

3.       The credit is available for homes purchased on or after January 1, 2009 and before December 31, 2009. 

4.       To qualify for the full tax credit, married couples' modified adjusted gross income (MAGI) should be under $150,000 and single filers' MAGI should be less than $75,000. Partial tax credits may be available for married couples with MAGI incomes of over $150,000 but under $170,000 and single filers with incomes over $75,000 but under $95,000.  If married couples who qualify for the first-time tax credit file separately, they would both claim 5% of the home purchase or $4,000 each (whichever is less) on their tax returns.

5.       Home buyers who qualify for this program, but who do not intend to purchase a home till the end of 2009, may elect to alter their tax withholdings (up to the amount of the of the tax credit) in order to save up money for a down payment.  However, if the purchase of the home does not occur, the taxes must be repaid to the IRS.

6.       There is no recapture or repayment clause IF the home is owned for at least 36 months.

7.       The effective date of purchase for new construction (even if buyer owns title to the lot) is the date the owner first occupies the house.  So even if construction began in 2008, as long as the home and buyers qualify for the tax credit, they will be eligible if they take possession any time during 2009.   However, new construction bought from the builder is only eligible if the settlement date (closing) takes place between January 1, 2009 and December 31, 2009.

8.       The law allows taxpayers to elect to treat qualified 2009 purchases as a 2008 purchase so that they can receive the tax credit on their 2008 tax returns.

9.       The full amount of the eligible tax credit is refunded to the buyer, regardless of whether the buyer has paid an equivalent amount in taxes. 

The American Recovery and Reinvestment Act of 2009

Based on "Sold" comparables and the active "competition" is the only way a house should be priced to sell. Our numbers show that the market is warming up a bit after the holidays and shows some very good promise for a great year. We'll have to wait and see where the rates take us. The fat lady hasn't sung just yet!

Although, these properties may seem like great deals, the help of a real estate agent that knows property values will greatly reduce the risk of making a financial mistake. Foreclosure prices are based upon what is owed on the property. With some homes only being owned for a couple years before going into foreclosure, there is still a large amount owed on the property, therefore possibly not the best deal in town. One of the other large down sides, in my opinion, is not having the opportunity to view the property prior to purchasing. Owners that are foreclosed on are normally very upset and it is not unheard of to get into a property after purchase and find no appliances, major damage, pipes broken, property damaged and other major repairs.

I would suggest that the novice look more into REO (Real Estate Owned) or "Bank Owned" properties. This is what happens after the home does not meet the bid minimum and the bank buys it back. These properties offer the opportunity to look at them, have inspections done in most cases and are more like a standard real estate deal.

For more information or advice, give me a call and I'd be happy to talk with you more.

Glens Falls was recently ranked in the top 10 areas of the country where the real estate market is still doing well. I can't say that Glens Falls homes are "flying off the shelves" more than other areas around, but I can say that it offers a variety of home choices and a long list of restaurants, activites and culture that many areas do not.

It will be interesting to see what happens as winter approaches. Stay tuned......

The Agent, unless specifically disclosed otherwise, represents the seller in any transaction for the sale of a home. It is that Agent's fiduciary duty (where their loyalty lies) to protect the seller's position at all times.

Buyer's Agency, however, may be an option available to you. Simply put, it allows the Agent with whom you are working to be your representative and to put your interests above all others.

Example 1: You see a house advertised in the newspaper, a home magazine, or the Internet. You contact the Listing Agent (this is who will be advertising the home) and make an appointment to see the house. The Agent is friendly, informative, and tells you what you believe to be everything about the house. The Agent represents the seller, not you.

Example 2: You are working with an Agent, who shows you 25 different homes over 3 weekends. The Agent buys you lunch twice, knows all 4 of your children by name as well as all of your personal likes and dislikes, but does not offer Buyer Agency. You feel comfortable with the Agent, revealing important personal information. Without Buyer Agency, "your" Agent represents, and owes loyalty to, each and every one of those 25 sellers--not you. Any information you reveal to the Agent must be relayed to the sellers.

"Okay," many buyers say, "so the Agent represents the seller and not me. Is that a big deal?" Maybe not, but it is important to understand that if the Agent represents the seller, they cannot reveal certain things to you, as the buyer:

• The reason for selling (unless the seller specifically authorizes it)
• Any concessions, in price or otherwise, that the seller may be willing to give up.
• Any conversations that the seller and the Agent may have had.
• Any information that could be detrimental to the seller, or give you, the buyer, an advantage. This would include a CMA (Comparable Market Analysis) that could put the seller at a disadvantage.

Buyer Agency turns the tables. If a Buyer's Agency agreement is struck between you and the Agent, it is you, rather than the seller, who has the representation from the Agent with whom you are working. If you are represented by a Buyer's Agent, some of the potential benefits include:

• The Agent can develop a CMA (Comparable Market Analysis), revealing at what price similar properties in the area have been listed for and sold for.
• The Agent can reveal to you any information about the seller that the Agent has been able to ascertain. This may include reasons for selling, potential concessions, or other information that may be to your advantage.
• Information about property value trends that may influence your decision about a certain area can be relayed to you.

Summary. Is it necessary to have a Buyer's Agent? No. Thousands of home buyer's have been well served dealing with the seller's Agent. (For years, it was the only way it was done). The important thing is to understand your options, so that you don't unintentionally accept less representation than you want.