My New Blog

The Kitchen

Many experts recommend that you focus on the kitchen first when preparing your home for sale. For many potential buyers, the kitchen is the most important room in the house. Since the kitchen has the power to make or break an offer, you should do everything you can to enhance it before showing your home to buyers. And, most experts agree that next to painting, improvements in the kitchen are the most profitable. Remember though, money you spend here is a cost of selling, you don't want to do a full remodel, but rather take some affordable steps to show what you have in the best possible light.

Start by creating space. You want the kitchen to look large, light and roomy. Clear the counters of all clutter. Take everything you can out of drawers and shelves and move it to storage. You can almost count on buyers opening your drawers and shelves when they come to see your home. What you want them to see is space, and plenty of it, not your old pots and pans.

Consider paint. Paint is always the most profitable improvement. A fresh coat of light, neutral color paint on your kitchen walls will make them look spotless and new. Exactly the look you want.

Pay particular attention to the sink. It should be absolutely free of stains and of course there should be no leaks or drips! If your faucet looks old and dated, consider replacing it with a new one, it will go a long way towards improving the look of the whole kitchen, for very little money.

Counter tops. If your counter tops are looking old and tired, you should consider new ones. Remember to stick with neutral colors though.

Freshen up the cabinets. Replacing the cabinets is expensive and probably doesn't make sense. But you can paint them, or put new, modern looking pulls on them for very little money and give them a fresh look.

In short, buyers will be quick to notice any shortcomings in your kitchen. So you want to do everything you reasonably can to freshen up your kitchen and give it a new open large look.

Happy Reading,

Melissa Johnson

ABACUS REALTY

The Last Minute Credit Check

Your actions after receiving lender approval for a mortgage loan can disqualify you for the loan. A mortgage loan is conditionally approved, with the lender reserving the right to re-verify credit, income, assets and employment at anytime. The lender may cancel the loan if there are any adverse changes to your qualification status.

Debt-to-Income Ratio

Your debt-to-income ratio is your gross monthly income divided by the amount you spend on debt. Debt items include mortgage payments (including principal, interest, insurance, tax), car payments, credit card payments, student loans, child support payments, etc.

The lender considers debt-to-income ratio when approving you for a mortgage loan. Only 28 percent of your income can be used for your mortgage payment, which includes taxes and insurance; and 36 percent for the mortgage payment plus the rest of your debt. Anything you do to negatively affect your debt-to-income ratio may change an "approval" to a "disqualification."

Avoid Red Flags

A red flag is any inquiry made regarding your credit worthiness. If you decide to purchase a big ticket item - like a car, boat or furniture - prior to closing, you're at risk of having a red flag show up on your credit report.

Keep Your Money Where It Is

The balances of your liquid assets are considered when approving you for a mortgage loan. These liquid assets may include checking accounts, savings accounts, certificates of deposit, money market accounts, retirement accounts, stock and mutual funds.

Avoid changes to the balances of these accounts. Do not close accounts. Do not change banks. A large withdrawal or deposit to any of these accounts will trigger a red flag for your mortgage lender. If a red flag is triggered, you may be asked to produce a paper trail tracking large withdrawals and/or deposits.

Employment Status

For most employees a change of jobs to one of equal or higher pay will not trigger a red flag. However, sales people should not change jobs prior to closing on their mortgage loan.

Salaried Employees
If your income is strictly salary than you should not have a problem changing to another job of equal or greater income. If, however, your income includes salary and bonuses, commissions and/or overtime, you should not change jobs prior to closing.

Hourly Employees
If your income is based solely on a 40-hour work week without overtime, than changing to a job with equal or greater hourly pay should not be a problem. However, if your income is dependent upon overtime pay, do not change jobs prior to closing.

Commissioned Employees
If your income is from commission or a substantial portion of your income is from commission, then you should not change jobs prior to closing. Typically, mortgage lenders average your commissions over the last two year period to determine income. Changing employers eliminates the two-year commission history and places uncertainty on your income status.

Talk to Your Loan Originator

Do not make any changes to your financial and employment status without first talking to your loan originator.

Ready to buy a short sale?

	A short sale happens when the homeowner's lender consents to receive a reduced payoff to release a mortgage.

Can I get a bargain on a short sale?

From time to time, yes. Often times people hear the words "short sale" and instinctively think of a seller that is in trouble and must sell their home fast to prevent further financial problems. This is at times the case and can be an opportunity for a buyer to cash in on another's misfortune. In contrast, a lender may consider a short sale even if the seller is current with their mortgage, but property values have depreciated. In cases such as these the reduced price may in fact be consistent with actual market values, not below.

How do I buy a short sale?

• Prior to making any purchase offers, do your research. Using a qualified real estate professional from Abacus Realty to support your research of a property will help you make educated decisions. We can help discover to whom the property is titled, the balance still owed to the lender, and whether or not a foreclosure notice has been filed. Having this data can help you decide how much to offer.

• Hire a REALTOR^® with short sale experience. The real estate agents at Abacus Realty can help expedite the transaction and make certain you're protected. Don't permit inexperience to hinder the closing process. Put our knowledge and experience to work for you.

• Even with an experienced real estate agent and under the best of situations, buying a short sale property will generally take longer than a typical real estate transaction. Be aware that most short sales will not close in the customary 30 days or less. Remember that you're not only getting approval from the seller, but the lender must also agree to the sale terms. A lot of the time your offer will be sent to a committee to approve which will add time - sometimes even 2 to 3 months.
• Home protection warranties, buyer credits and allowances, and closing cost concessions are usually not up for negotiation when dealing with a short sale. The lender will be selling the property just the way it is which means the lender isn't going to pay for repairs. Be sure to reserve the right to have inspections for pests, HVAC, electrical, and other critical areas. At Abacus Realty, when we write an offer, we will be looking out for your interests first and will always advise you to make your offer contingent upon the inspection results.

When it is time to buy, whether it be a short sale or a typical home sale, Abacus Realty can help you. Utilize our experience and knowledge of real estate to make sure you are getting a fair deal and protect yourself during the complete process.

Just thought I'd share some valuable insight on the "short sale" process. The housing market is what we make it!  Do your homework and get the facts before tackling a short sale situation.  We are in this for the long haul and we are in this together!

Happy Buying and Selling!

Melissa

We love our Pets!  I know do!  I have a 17 year old Chow Corgi mix named Chow who has been an added joy to my life.  She's seen me through two state moves and several homes, sometimes I wonder if I added stress to her life and caused her gray hairs. 

The problem I have as a Realtor® is relaying the message to clients that their pet is causing their home NOT to sell.  They feel like I do and have a sincere belief that their pet is part of their family. 

Recently, I had an open house at a client's home and when I walked in, it was very apparent by the smell that a pet lived in the home.  Of course we burned candles but the smell was still there.  It was in the furniture and the carpet.  The beautiful rug on the floor was shredded on every end leaving me to believe that the pet did it or there was also a rat present somewhere.  When I asked the seller to replace the rug, she said it wasn't in her budget.  I said nothing about the smell because sometimes, this information has to come from someone outside of the Realtor®.

After the open house, I had the big job of getting this huge dog back in the house.  As I got closer to the dog, he snarled at me, because I am to him a stranger, and wouldn't allow me to put him back in the home.  When I told my clients, the response was, "if you didn't put the chain on him, he won't let you take it off".  Well, don't you think this was information I needed up front before I tried to unleash this animal??  This could have been a tragedy.

So, here are some tips for the seller that have pets in the home, whether it's a bird or a bird dog...

1) Do not assume that everyone like or are comfortable with pets.

2) Do not ask your Realtor® to be responsible for your pets. 

3) If your pet is an escape artist, please let the Realtor® know this, their time is valuable and can't spend hours searching for your loved one.

4) If you don't really know how your pet will act around strangers, remove him from the home during showings for everyone's safety.

5) Before your open house, please clean the carpet and put down a pet deodorizer on the carpet.  Pet smells are very apparent, especially to people that do not have pets in the home.

As you see, these are small things that could make a big impact on showing and selling your home!  Please pass these tips on to your clients or your friends who have pets that are considering placing their home on the market.  Remember, after the house is sold, you can go back to letting your pets roam free!

Melissa