Here, There, and Everywhere

My life has finally come full circle. And I thought I was just running around in circles. I keep up to date in my profession by, in part, reading a publication put out by the National Association of Realtors(r), oddly enough entitled Realtor(r). The current issue is dedicated to home design instead of just selling. Of course the emphasis is on how design influences people's buying pyche, both positively and negatively. I have a degree in interior design and now I have permission to use it!.

I have never been fond of the idea of going into someone's personal space and telling them that they have to paint everything white or the house will not sell. Poppycock! I think most people are savy enough to know that the seller actually lives in the house. But that doesn't absolve the seller from taking some action to make their home more broadly attractive and tasteful. I was pleasantly surprised that my professional publication acknowledged that color is good. But there is still no substitute for taste. Everybody's taste can't be the same but I certainly hope that a potential buyer recognizes taste even if it isn't their own. (Well, that might be wishful thinking but I'll give the public the benefit of the doubt for now.)

One school of thought is that the realtor should be aware of design trends in order to help their buyers visualize their new space. The flip side of the coin is that the seller should think in terms of classic. Once again, this doesn't mean that an extreme makeover is in order. But it does mean that the realtor must guide the seller to see their home as others may see it. We all get used to a certain amount of clutter that is the necessity of our lives. But eventually you cease to see it. A well informed and experienced agent can point out simple yet effective ways to spruce up without tearing up (tearing up?)

The bathroom, perhaps one of the most overlooked yet underdecorated room, is the one we spend the most time in. Spice it up! Don't go out and buy a polkadot shower curtain but bring in some contrasting curtains and towels and consider bringing in a small piece of furniture if space allows. This will warm up the space and make it look less utilitarian and more inviting.

Entryways are debris magnets. Come in the door, drop the shoes, the purse, the soccer ball, the mail, and next thing you know you have a mess. Clear up the debris and create a focal point that will literally draw people in. A bright pillow on a chair, a striking vase on a table and a decorative rug goes a long way. And once again, you don't have to spend money, just rearrange what you already have.

The living room can suffer from either over use or under use. It is either a showplace where no one is allowed to enter, or it is so lived in that it looks shabby, not chic. Again, bright accents will liven up the room; flowers, pillows, paintings, especially in red or yellow. Clear out that overflowing bookcase and set those old books packing. But don't make a sterile environment. If a potential buyer doesn't even want to set foot into that room, then it may as well not exist.

Lighting is always important but that doesn't suggest 300 watt bulbs in every fixture. Then you have an operating room, not a home. Warm, ambient lighting sets a comforting mood in living areas. Shine up that chandelier and dust off those lamp shades. Consider going to your local big box store and pick up a couple inexpensive accent lamps for the living room and master bedroom. If the buyer wants more light, let them reach for the wall switch.

The kitchen is perhaps the single most important selling point of a home. Clear away that mouse nest of unpaid bills and replace it with a basket of fresh fruit. Set the table with bright dishes, put a green plant by the sink and hang beautiful dishtowels. A bright enamal teakettle on the stove reeks of "home."

Come on sellers! Give us tired realtors a hand! Spice up, clear up, warm up and shine up. Then the next thing you know, you'll be packing up! That is the point, mmkay?

Help!

Unless you are living in a hole, you are aware that there are a record number of foreclosures across the country. If you are living in a hole, it might be because you have been foreclosed upon. And if your head is stuck in a hole in the sand, you might very well end up in foreclosure.

The state of Ohio has the dubious distinction of being number one in the nation in foreclosures. There are many factors; stating that the housing bubble has burst is putting it much too simply. What caused the bubble to burst.

Banks, realtors, bankers, home buyers, home sellers, bankers, mortgage companies, government regulations, lack of government regulation. Oh, did I mention bankers and mortgage companies?

In other words, we all had a small part in it if you have been involved with buying or selling a home in the last 3 years.

Realtors:
Hindsight is 20/20. If someone walked into our offices and wanted to buy a house, we didn't care how or why the mortgage company lent them money, we just sold them a house. I have been guilty of this and have even gone so far as to tell young couples that money was so easy to come by that their dog could get a loan. Half in jest, full in earnest.

Banks, bankers, mortgage companies:
Come on guys! Did you really think that someone making $40,000 a year could afford a $300,000 house?! During the last 3 years, banks seldom looked at ratios (your income in relation to your debts). All they wanted to see was your credit score also knows as your FICA. [Credit scores are based on your ability to pay back money, ie make monthly payments on time. So theoretically, if you owed a million dollars, the bank didn't care as long as you made your payments on time.]

Also, the banking industry came up with all kinds of "creative financing" designed to get you into just about any house your little heart desired. Interest only, balloon, adjustable rate, no payment for an extended amount of time (then they hit you big). More on all of these terms later......

Buyers and sellers:
Okay, so its natural for everyone to want a place to call their own. It is also natural that if someone is willing to give you money, you will take it. So if a buyer can give a seller money, the seller will stand there with their hand open. And the more money to spend, the more was charged. (Do NOT confuse this with inflation.) This phenomenon caused a little condition known as "getting upside down." Sound uncomfortable? It is, especially if it involves your pants pockets being open whilst you are being hoisted into the air by your ankles. More on this condition later.......

Bank regulators vs de-regulators:
Think about the Savings and Loans scandals of 20 years ago and make up your own mind. If you are less than 2o years old, ask a grown up.

So, if the foreclosure dragon is breathing down your neck, HELP! is on the way.........

I'm Only Sleeping

ZZZZZZZzzzzzzzzzzz!!!!!!!!!!!!!

As the mercury rises outside, people's energy drops. This must be the reason why it has been so quiet today.

I made some follow up phone calls to prospective clients to touch base with them and see what they thought about the last bit of free information I gave them. Sorry, it's amazing how fast you get discouraged after even just one day of "not much happenin'". I spoke to a woman this morning that I have been corresponding with since March; we have never met. I thought I had found her the perfect home; location, price and setting. She was to talk to her banker about taking out a bridge loan since they did not want to put their home on the market until some work was done.

[A bridge loan is a special type of mortgage where your old home and your new home is financed together. Therefore, you do not have 2 mortgage payments. You basically end up with 1 1/2. It is one solution to getting your dream home before it gets away while you sell your current home. Then in the near future after you have sold the old home you can refinance and have just one normal payment. The pitfalls are that you are saddled with a rather large mortgage payment and there is always the chance that the old house will not sell in a comfortable amount of time. Please talk to your banker for specifics.]

Well, she decided that a bridge loan was not for them even though the house was perfect, etc. She was concerned that the amount that they could afford to offer the seller would not be fair to the seller. Boy, you don't meet such nice people too often! Most potential buyers want to get the home for the lowest price possible; that's the name of the game. I will follow up again soon to see if she would want to reconsider since the sellers are very motivated.

I also spoke to a gentleman interested in some new construction he had seen in a new subdivision. Again, the seller who is also the builder is very motivated and is willing to come down quite a bit. Hopefully we can get them together and I can get the buyer pre-qualified quickly. (Yes, I know. I should do this before even getting started, but different situations call for different approaches. As the saying goes, "The definition of insanity is 'doing the same thing over and over again and expecting different results.' ")

The reason I say this is because a young couple came into my office who were looking to buy their first home. I sent them to several banks to get a pre-approval letter and I haven't heard from them in 2 days. First time home buyers can get scared when cold reality sets in. This is a balancing act that takes a bit of discernment and there really are no pat answers as far as I am concerned. You just have to be gentle and understanding and give everyone the amount of space they require. And remember, this is not a contest; so please, no wagering.