The home looks like a tornado just came through and potential buyers are arriving within the hour. Here’s what home owners can do to turn disaster into order,

• Target the bathroom. Wipe down the sink, toilet, mirror and floor with disinfectant wipes. Empty the trash. No toilet bowl cleaner? Drop in denture cleaner, let it fizz for 20 minutes and flush.
• Salvage the kitchen. Clear the countertops. Put dirty dishes in the dishwasher. Spray down the counter with a clean-smelling multipurpose spray.
• Pick up debris. Concentrate on getting rid of clutter in the living room. Put it in a bag and hide it in a bedroom closet.
• Vacuum everywhere.

Excerpt from: The Accidental Housewife: Your Guide to a Clean-Enough House by Julie Edelman

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Alright, if you have been on the search to buy a home, it’s time to buckle down and pull the trigger. You will want to lock in your rate now. The interest rates have spiked in the past 10 days and there is a potential danger that it could get worse. The average interest rate on a 30-year fixed loan has soared to 6.02% from 5.82% in just a week. The cause of this is the rising inflation fears that have sparked a jump on the long-term government bonds.

That means on a $300,000 mortgage, your monthly payments will increase $38 and the total interest on the life of the loan will increase $4,000. You can still get some good deals as there are a few lenders out there offering rates below 6%, but not many.

No one knows what is in store next, but if you find a reasonable deal, don’t think twice about putting a deposit to lock the rate in for a month or two if you are able.

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Knowing when to get out is one of the hardest decisions one has to make in a lifetime. What’s even harder, is knowing when to get in. I would have been rich if I had invested in Google, or if I had sold my home when the market was hot, or had got out when I was up $1000 in Blackjack. These are all situations that we regret and would love to go back in time to correct them. Whether it was greed, listening to one of our friends/family, or just scared to take the risk, we wish we had made the right decision. This leads me to my discussion of the housing market.

Have we hit the bottom of the housing market? I can’t tell you for sure but there are many hints that have me believing that we have. In some areas of Arlington, VA and Washington D.C., housing prices have gone up. This is shocking news to buyers out there. However, this is the truth. Most of the buyer mentalities right now are very relaxed. They believe they can take their time. In reality, they’re going to miss out of the market and catch it on the way up. Interest rates are below 6% and that is phenomenal. One of the biggest things that I see right now is that buyers are holding out for the interest rates to drop. I understand that we all want the lowest rate possible but a rate below 6% is a great rate regardless. It’s like saying I wish I had bought stock when it was $20/share instead you bought it for $25/share. Now the stock is up to $500/share. In the long run you made a great buy and it doesn’t really make that big of a difference.

If you are searching for a home right now, you’re witnessing the bottom of the market. In a few years from now we’ll all look back and see that 2008 was the bottom of the market and those who purchased then will be the wise buyers.

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Everyone’s taste is different when it comes to what they want in a house.  You can’t force someone to like the sponge paint in the bathroom or the colorful wallpaper you have in the kitchen, but you can easily make that fix.  However, switching the position of the staircase or moving the laundry up three floors is a different story.  Here is a list that will turn buyers away immediately:

Small houses
People nowadays want a lot of space.  Expect to get what other people are willing to pay for the space when you’re trying to sell the home.  If you can’t afford to increase the size of the home then you need to do everything you possibly can to make it look bigger.

One bathroom
When people are buying a home, they are usually upgrading from what they are used to.  That means that they don’t want to wait in line anymore for the bathroom.  The only time one bathroom is okay is in a one bedroom condo.

No air conditioning
Probably one of the greatest luxuries when the heat is unbearable is air conditioning.  It’s going to cost you between $10K-$20K to install central air if you don’t have it but it’s a must these days.

Spiral staircases
Of course they look good but let’s be honest with ourselves.  Who wants to carry a bed up a spiral staircase?  A bed isn’t even the hardest piece of furniture. 

Basement laundry rooms
We finally discovered that it would be more convenient to have the washer and dryer on the level with all the rooms.  Who thought it was a good idea to make a hike to the basement to wash your clothes?  People have come to realize that it’s all about convenience nowadays.

Popcorn ceilings
I don’t need to say much more other than no one is a fan of them anymore.  Just make the change.

Small master baths
The majority of the world is materialistic and they expect to have a big bathroom to go along with their big bedroom.  Even though you don’t sleep in your bathroom, it’s a complex buyers have come up with and there’s no prescription.

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You can’t hide it from me, you love the fireplace in the bedroom, hardwoods throughout, and even the kitchen that isn’t totally decked out.  The only question left is how much are you willing to pay for them?One of the biggest obstacles when buying a home is determining what to offer.  This is because many factors come in the picture.  The interest rates, fallen prices, the foreclosure market, and the greedy sellers overpricing their homes all fall on the table.  Your agent can reassure you that you’re not going to overpay for the home.  However, you can step in and do some research of your own.  Search the market and look for recent sales.  You’re going to want to look at similar homes that have sold in the past two to four months.  If you want to get a great feel, I suggest you get in your car and drive around the neighborhood.  This will give you a more precise idea of why homes have sold for more or less than the asking price.

When looking at home data, one thing that doesn’t show up in the numbers is value.  A home’s value can increase significantly over time which makes the previous information irrelevant.  Sometimes looking at the tax records to see what the seller paid for the property can be ridiculous.  A better option would be to hire an appraiser to estimate the property’s value.  This will give you some firing power when you’re making an offer.  The appraisal may cost you $300-$400, but if the appraisal comes in at a lower value you good evidence to back up the offer.

The information on the internet is available to you but I would consult with a real estate agent who deals with these statistics on a daily basis.  Doing your research ahead of time will get you familiar with the market, but don’t count yourself as an expert just from a few web pages.  When submitting an offer, a low ball bid might insult the seller and ruin your chances on that home.  You will need substantial evidence to back up a low ball offer.  Instead of putting in a bid lower than the sales price, you may want to ask for closing cost assistance or an upgrade of hardwood flooring. 

After a home has been on the market and the price has been reduced, the seller is typically becoming more realistic.  A way to help your cause is making the offer contingent upon an appraisal.  If the home appraises for less than the asking price, the lender will refuse the loan.  The only sure way to protect yourself is having a good agent that knows that market and putting the contingencies in place.  No lender is going to give you a loan if it doesn’t appraise.

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So you want to sell your house?  There are about a hundred things that are running through your mind but ultimately it comes down to one decision.  What can I set the price at?  Many of the other factors are out of the seller’s control.  For instance, the number of homes on the market, the motivations of the other sellers, and possibly some foreclosures bringing down the prices in surrounding areas play a role.  Like any type of scouting, you’re going to have to scope out the competition.  This is where you’re going to have to get into research mode.  Check out the homes that are on the market in your neighborhood and comparable homes that have recently sold in the past three months.  This will give you an idea of what you may be able to list your home for.  Now if you want top dollar for your home, you better make sure your home is worth it.  I went into a home the other day that was priced at $849,999 in Fairfax, Virginia and the kitchen was tired.  What I mean by this is, it looked like it belonged in a home built in 1990.  None of the appliances were upgraded, the counters were from when the home was built 30 years ago, and the cabinets were nothing spectacular.  People come through a house and don’t want to have to do any work if they’re paying that much for a house.One thing you have to realize is price vs. value.  If buyers are not making any offers, then the price does not reflect the value.  As a seller, you cannot control the value.  You are not the one buying the home so your opinion does not matter.  However, location is a selling point.  If your home backs to woods or is on an acre of land, you’re going to stand out from the others.

The home that is priced at $849,999 has been on the market for 30 days now.  It’s the highest priced home in the neighborhood’s history.   There have been several offers but nothing has sparked their interest to work with any of them.  Soon the sellers will realize that they’re going to have to drop the price if they want to get it sold.  Don’t be a stubborn person when it comes to selling your home.  Your home is either worth the every penny of the list price or it’s priced too high.  If you’re not going to get the price you want, then don’t sell your home.  It’s that simple. 

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