Monday, September 29, 2014

Crafting an Accecptable Offer

Table-250.jpg
An agent was presenting a contract to a single, senior woman who was moving into a retirement home.  It was a full price offer with reasonable terms and timelines but the seller wouldn’t accept it.  When the agent probed deeper, she discovered that the seller was concerned with her dining room table.
It had been the first piece of nice furniture that she and her husband had purchased and they had literally spent a lifetime celebrating and making decisions at that table.  It troubled the owner to think that the table would go to strangers who might not appreciate it as much as her family had.
The agent told the elderly seller that she knew of a church nearby that had a community room filled with lovely tables like hers.  If she liked the idea, the agent would call the church to see if they’d like to have it.  Once a new home for the table was found, the sale of the home went smoothly.
Lower inventory and increased demand in certain price ranges have increased the frequency of multiple offers on the same home.  Sellers are frequently faced with a decision dilemma on which offer to accept and the price may not be the most important factor.
Sellers generally need the equity from the sale of their home to purchase another one but they also don’t want to have to temporarily move if they’re not able to get into the home they’re purchasing.  Flexible buyers have discovered the value in coordinating the sale and possession of the homes.
Sellers want to know when they make a decision on an offer, that the buyers will be able to perform as the contract is written.  The more contingencies that can be eliminated or minimized, the more comfortable a seller will feel about the certainty that it will close according to schedule.
The buyer should be pre-approved with all verifications and credit reports having been done.  Simply having a loan officer’s opinion is definitely not the same thing as a pre-approval.
There is a unique dynamic to every transaction because the parties are individuals with infinite priorities and values.  The art of the deal takes place when these unique variables are considered to define a mutually acceptable offer involving price, terms and conditions. The role and experience of the agents contribute to the successful outcome.

Linda Smalley, Chinowth & Cohen Realtors   918.630.8431
When it's time to think BIG.....think SMALLEY!


Monday, September 22, 2014

Seller Safety Plan

43997828_250pixel.jpgSeptember is REALTOR® Safety month when special attention is focused on the security of having a home on the market and the concerns for the well-being of owners is a day-to-day effort.  The following list may help sellers secure their home and minimize risk.
  • Locks – doors and windows should be locked at all times.  Additional locks like deadbolts or safety locks can provide a higher level of security.
  • Home lighting - turn on the lights prior to purchasers arriving to improve the showing.  Not only will they be able to see things better, it could prevent them hurting themselves unnecessarily. Outdoor motion-sensor lights provide additional security.
  • Eliminate the possible hazards – try to identify anything that might cause a person to trip and fall such as loose objects on the floor or floor coverings that aren’t properly secured.
  • Security system – If you have a security system, it should be monitored and armed, especially when you’re away from home.  Most systems will allow you to program a temporary code that agents will be able to use based on your instructions. 
  • Prescription medications – remove or secure the drugs before showing the home.   
  • Secure valuables – jewelry, artwork, gaming systems;  mail containing personal information like bank and credit card statements, investment reports;  wine and liquor can also be a security issue.
  • Remove family photos –pictures can be distracting to prospective purchasers but the concern at hand is to eliminate photos of a wife, teenage daughter or children that might provide information to a possible pedophile or stalker who could be posing as a buyer.
  • Remove weapons – the reason to remove guns should be obvious to everyone but a knife block on the kitchen counter can become an opportunity of convenience.
  • Unexpected callers - when some people see a for sale sign in the yard, they think that it’s an invitation to look at the home immediately. Keep your doors locked so that people can’t let themselves in. If they ring the doorbell and want to see the home but aren’t accompanied by an agent, ask them to call your listing agent.
These precautions should be taken before the photos or virtual tours are made.  Having these items in plain sight in the pictures posted on the Internet can unwillingly provide prospective criminals with a menu of what is available.
Agents cannot protect a seller’s valuables other than to inform the owner of potential threats to their security.  In most cases, the seller’s agent will not be present at home showings and even if they were, it is not always practical nor desirable to follow the buyers and their agent through the home.

Linda Smalley, Chinowth & Cohen Realtors  918.630.8431
When it's time to think BIG.....think SMALLEY!

Sunday, September 21, 2014

September is Realtor Appreciation Month




September is REALTOR® Safety Month when special attention is focused on the security of having a home on the market and the concerns for the well-being of owners is a day-to-day effort.  The following list may help sellers secure their home and minimize risk.
  • Locks – doors and windows should be locked at all times.  Additional locks like deadbolts or safety locks can provide a higher level of security.
  • Home lighting - turn on the lights prior to prior to purchasers arriving to improve the showing.  Not only will they be able to see things better, it could prevent them hurting themselves unnecessarily. Outdoor motion-sensor lights provide additional security.
  • Eliminate the possible hazards – try to identify anything that might cause a person to trip and fall such as loose objects on the floor or floor coverings that aren’t properly secured.
  • Security system – If you have a security system, it should be monitored and armed, especially when you’re away from home.  Most systems will allow you to program a temporary code that agents will be able to use based on your instructions. 
  • Prescription medications – remove or secure the drugs before showing the home.   
  • Secure valuables – jewelry, artwork, gaming systems;  mail containing personal information like bank and credit card statements, investment reports;  wine and liquor can also be a security issue.
  • Remove family photos –pictures can be distracting to prospective purchasers but the concern at hand is to eliminate photos of a wife, teenage daughter or children that might provide information to a possible pedophile or stalker who could be posing as a buyer.
  • Remove weapons – the reason to remove guns should be obvious to everyone but a knife block on the kitchen counter can become an opportunity of convenience.
  • Unexpected callers - when some people see a for sale sign in the yard, they think that it’s an invitation to look at the home immediately. Keep your doors locked so that people can’t let themselves in. If they ring the doorbell and want to see the home but aren’t accompanied by an agent, ask them to call your listing agent.
These precautions should be taken before the photos or virtual tours are made.  Having these items in plain sight in the pictures posted on the Internet can unwillingly provide prospective criminals with a menu of what is available.
Agents cannot protect a seller’s valuables other than to inform the owner of potential threats to their security.  In most cases, the seller’s agent will not be present at home showings and even if they were, it is not always practical nor desirable to follow the buyers and their agent through the home.

Find Your Home at TulseyTownHomes.com

Monday, September 15, 2014

Annual Maintenance

home maintenance 250.jpgA common expectation of homeowners is to want the components and systems in their home to work when they need them. Periodic maintenance is just as important as having a trusted service provider to make necessary repairs.

Victims of Murphy’s Law can attest that their air conditioner goes out on the hottest day of the year or the water heater fails when you have out of town visitors.

If the convenience of having things work doesn’t justify maintaining your home’s systems, consider that it can be less expensive than the results of neglect causing repairs or replacement.

  • Replace burned-out, dim or missing bulbs in light fixtures and lamps. Consider switching to LED bulbs.
  • Dryer exhaust vents build up lint even though you may be cleaning the filter regularly.
  • Fire extinguishers need to be recharged or replaced after expiration date.
  • Establish a recurring appointment on your calendar to change filters in your HVAC.
  • Replace missing or damaged caulk around sinks, bathtubs, showers, windows and other areas.
  • Clean gutters.
  • Schedule an inspection with a pest control a minimum of once a year unless you have a service contract.
  • Schedule a chimney cleaning prior to using the fireplace for the first time in the season.
  • Keep all tree branches and shrubs trimmed away from the home.
  • Pressure wash exterior, deck, patio, sidewalks and driveway.
  • Keep levels of insulation in the attic above your ceiling joists.
  • Check appliances with water lines for leaks or worn hoses.
    • ice maker  • washing machine   • dishwasher   • others
  • Test all GFI breakers and reset.
  • Inspect all electrical outlets for broken receptacles, fire hazards or loose fitting plugs.
  • Have furnace and air conditioner serviced annually.
  • Test smoke and carbon monoxide detectors and change batteries.

The early fall is a great time to take care of these items before the weather becomes harsh.

Sunday, September 14, 2014

 Fall & Winter Lawn Care

Keep your lawn and landscape in tip-top condition throughout
the fall and winter by following the tips listed below.

September and October:
 Re-seed and fertilize cool season grasses, after Labor Day.
 Fertilize Bermuda and Zoysia before October 1st with 16-8-8 or milorganite.
 Replace summer annuals with pansies or chrysanthemums.
 Tulips, Hyacinths, and Daffodils are available late September. Plant after first frost.
 Fertilize trees and shrubs with fertilizer or tree spikes.
 Lightly prune roses and other summer flowering shrubs.

November and December:
 Replace trees and shrubs that did not survive the summer.
 Control existing broadleaf winter weeds with  fertilizer application for season.
 If rainfall has been deficient, water thoroughly (6-8” deep) prior to a freeze.
 Mulch or wrap tender plants to protect from freeze damage.
 Remove any support stakes around trees that have been in place for one growing
 Many perennials can be divided now.
 Plant fall bulbs before the end of December.

January and February:

 If rainfall has been deficient, water lawns, trees and shrubs, especially any
evergreens.
 Many ‘green’ winter weeds can be controlled now with Roundup as it won’t harm

dormant Bermuda or Zoysia. 

A beautiful landscape is inviting and gives your home perceived value. Consider this if you are thinking of selling your home.  Enticing curb appeal is a welcome sign to buyers.  For more information on tips that make your home more "sellable", contact me at 918.630.8431 for a Seller Consultation.

When it's time to think BIG.....think SMALLEY!

Linda Smalley, Chinowth & Cohen Realtors, Tulsa Oklahoma
Lsmalley@cctulsa.com
Phone:  918.630.8431





Monday, September 8, 2014

Money Down the Drain

iStock_000012313013Small200.jpgPrivate mortgage insurance is necessary for buyers who don’t have or choose not to put 20% or more down payment when they purchase a home.  It is required for high loan-to-value mortgages and it provides an opportunity for many people to get into a home who otherwise would not be able.
The problem is that it is expensive and a homeowner’s goal should be to eliminate it as soon as possible to lower their monthly payment and avoid putting good money down the drain.
FHA loans made after 6/1/13 that have 90% or higher loan-to-value at time of purchase have mortgage insurance premium for the life of the loan.   FHA loans made prior to 6/1/13, can have the MIP removed after five years and if the unpaid balance is 78% or less than the original loan-to-value.
VA loans do not require mortgage insurance.
Conventional loans, in most cases, with higher than 80% loan-to-value require mortgage insurance.  The cost of that insurance varies but with a $250,000 mortgage, it could easily be between $100 and $200 a month.
Your monthly mortgage statement should itemize what your monthly fee is for the mortgage insurance.   Unlike interest that is deductible, most homeowners are not able to deduct mortgage insurance premiums.
If you plan to remain in the home or to stay there for a considerable number of years, the solution may be to refinance the home.   If the home has increased since it was purchased, the loan-to-value at its new appraised value may not require PMI.  You might even be fortunate enough to obtain a lower rate than you currently have.

When it's time to think BIG.....think SMALLEY!

Linda Smalley, Chinowth & Cohen Realtors, Tulsa Oklahoma
Lsmalley@cctulsa.com


Phone:  918.630.8431





















Thursday, September 4, 2014

5 Reasons to Sell Before Winter Hits
People across the country are beginning to think about what their life will look like next year. It happens every Fall. We ponder whether we should relocate to a different part of the country to find better year round weather or perhaps move across the state for better job opportunities. Homeowners in this situation must consider whether they should sell their house now or wait. If you are one of these potential sellers, here are five important reasons to do it now versus the dead of winter.
1. Demand is Strong
Foot traffic refers to the number of people out actually physically looking at home right now. The latest foot traffic numbers show that there are more prospective purchasers currently looking at homes than at any other time in the last twelve months which includes the latest spring buyers’ market. These buyers are ready, willing and able to buy…and are in the market right now!
As we get later into the year, many people have other things (weather, holidays, etc.) that distract them from searching for a home. Take advantage of the buyer activity currently in the market.
2. There Is Less Competition Now
Housing supply is still under the historical number of 6 months’ supply. This means that, in many markets, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.
There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market in the near future.
Also, new construction of single-family homes is again beginning to increase. A recent study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).
The choices buyers have will continue to increase over the next few months. Don’t wait until all this other inventory of homes comes to market before you sell.
3. The Process Will Be Quicker
One of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. Any delay in the process is always prolonged during the winter holiday season. Getting your house sold and closed before those delays begin will lend itself to a smoother transaction.
4. There Will Never Be a Better Time to Move-Up
If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate in the low 4’s right now. Rates are projected to be over 5% by this time next year.
5. It’s Time to Move On with Your Life
Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?
Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.   That is what is truly importamt..

Linda Smalley, Chinowth & Cohen, South Tulsa Office
Phone:  918.630.8431   www.LindaSmalleyHomes.com

When it's time to think BIG.....think SMALLEY!



Monday, September 1, 2014

Cash Flow and Equity Build-up

Cash Flow.pngMany years ago, Las Vegas hotels would entice customers with inexpensive rooms, meals and entertainment so they would gamble.  It may have worked initially but if you’ve been to Las Vegas recently, the bargains are gone.  Hotels expect each division to be a profit center on its own.  As a consumer, I might not like the changes but as an investor, I’d have to be pleased with increased profitability.

Years ago, real estate investors used to accept negative cash flow buoyed by tax incentives in hopes of making a big payday due to appreciation when they sold it.   Today’s investors are focusing on tangible, current results like cash flow and equity build-up.

Cash flow is the amount of money you have left over after collecting the rent and paying the expenses.  Since rents have gone up considerably due to supply and demand in the last few years and mortgage rates are at near record lows, income is up and expenses are down, making the cash flows attractive.

If the cash flow is sufficient, you could have a good investment even if the value of the property never increased.  Cash on Cash doesn’t consider appreciation and measures the cash flow before tax advantages by the initial investment.  A rental with $3,170 CFBT divided by an initial investment of $29,000 would generate a 10.93% Cash on Cash rate of return.

Low down payments on investor properties are also a thing of the past.  Non-owner occupied mortgage money is available but the investor should expect to put down 25-30%. An advantage of having a smaller mortgage is a lower payment.

Most mortgages are amortized loans with both principal and interest due with each payment.  The forced savings of the principal contribution builds equity in the property and can be considered a part of the rate of return.

A $100,000 mortgage at 4.5% for 30 years would have $1,613.29 applied to principal in the first year.  Divide that by the same $29,000 initial investment and the amortization would generate another 6%.

Without factoring in appreciation or tax advantages, this rental example generates much more than most alternative investments.  There certainly are many different aspects that affect the risk and return on rental investments.  If you haven’t scrutinized single-family rental opportunities in a while, you should look again.

 

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