Realty 33, Inc
REAL ESTATE BLOG
TIPS FOF BUYING & SELLING REAL ESTATE IN UNION & ESSEX COUNTY NJ
So I've been getting a lot of questions about "as-is" sales lately, so I want to clarify exactly what it means:
An "as-is" sale in real estate basically happens when the seller doesn’t want to make any repairs or give the buyer any credits or concessions.
It acts as a shield for sellers to protect them against giving up any money later on during the inspection period.
It also relieves them of the responsibility to make repairs, should something serious come up on the home inspection. Seems pretty straight forward right? But it’s actually much more difficult to put in practice.
5 TRUTHS ABOUT AS-IS SALES:
#1. Nobody Cares. "As-is" is usually meaningless to the buyer, because regardless if the property is "as-is" or not, the buyer can still cancel the contract if the condition of the home is not satisfactory. Plus, agents and attorneys know that once they get you deeper into the transaction, you’re more likely to give a concession for fear of losing the deal and having to start all over.
#2 It's Overused. Almost 50% of listings have some sort of “as-is” language. That’s because in a strong market, sellers will use any advantage they can to get the most favorable terms. The problem is with so many “as-is” properties on the market though, is that “as-is” winds up not meaning anything!
#3. Not Compatible with FHA. If the buyer is using a mortgage, the chances of an “as-is” transaction are slim. If it’s FHA, then it’s even more difficult. That’s because the buyer’s lender may also request repairs as a condition for the loan, and most buyers are advised against spending money on repairing a home prior to taking ownership of it.
#4. Lowers Market Value. When buyers or agents see “as-is” sale, they instantly think the home need repairs. This perception can effect the market value of the home. It will also increase the probability of getting low ball offers. You can’t sell “as-is” for top dollar, it just doesn’t work.
#5. Net More with Concessions. If your home is in good to great condition, and you list it at market value, then you will likely net more money in the sale if you make small concessions during the inspection period, rather than list “as-is” for a lower price.Yes, it can be annoying when the buyer asks for a $15,000 credit for chipped paint and a leaky faucet. But if the requests are reasonable then throwing the buyer a "bone” can get you to the closing table faster, which will also save you more money in the end.
There are many smart ways to maneuver through the inspection period, and I’ll share with you some of my favorite tricks in another article.
Till next time!
#1 WAY TO AVOID OVERPAYING FOR REPAIRS & RENOVATIONS
When I'm renovating a home, no matter how hard I try to control costs, I always end up paying more than what was on the contractors' original estimates.
I realized that it's because contractors love to use this sneaky technique of adding extra to the job. This is how it goes:
Contractor gives quote based on minimal amount of work required for job.
In fine print it will say that the price can be adjusted if the work turns out to be more involved than originally estimated.
Well, guess what, the work ALWAY turns out to be more than originally excepted.
So, how do we avoid paying extras?
1. Make sure you go over all the details of the job up front. If you forget something, it will become an extra
2. Make sure contractor gives your a best case, and worst case scenario of the scope of work.
3. Make sure you are clear with the contractor that you will not pay ANY extras unless they are discussed
and approved in writing FIRST, because the work is completed.
Use these 3 tips to make sure your next home improvement project doesn't cost you an arm AND a leg!
RE Questions? Text me: 973.506.9866
5 things to do today to protect your home
Is your home ready for Winter?
It’s almost end of November so you know winter is coming soon. It starts to get cold early around here, and before you know it you got freezing temperatures.
When I first bought my house I didn’t take very good care of it, and I had no idea what to do maintenance-wise, especially for winter.
So I did some research and I started doing these 4 basic things every year around this time to help keep my home in top shape for the brutal months ahead.
#1. I winterize all the exterior faucets and hoses. I’ve had to replace a few of these over the years because I would forget to drain the water from the lines. Once it freezes it could burst
#2. I get my gutters cleaned. I’ve been guilty of not doing this in the past but now it is mandatory due to the amount of foliage in this area.
#3. I get my boiler serviced: If you have radiator steam or baseboard heat, get your boiler serviced once a year. You don’t need to get it drained and refilled, just have the plumber clean up the parts that usually get clogged up.
#4. I check for drafts. Check for drafts throughout your home. This is where you get to see how good your windows are. Calk around window or door frames where necessary.
#5. I cover and tie up all the furniture. True story - powerful winds have sent my stuff flying into my neighbor’s yard, destroying her furniture. Now everything is covered and tied down.
I know this might all seem like common sense
but for me it took years to figure out!
So if you haven’t done these 5 things already this year, it’s probably a good time to start!
The NJ real estate market has been hot in 2018, and some home sellers are getting between 5-10 offers for their homes!
When selling a home in this market, it's important to choose the right offer. How do you know which offer is best in a multiple offer situation?
Hint: It's not just about price!
In this video I give a few tips for home sellers on how to evaluate and pick the best offer in a multiple offer situation:
1. Ask for highest & best
2. Write down and organize all offers
3. Evaluate & calculate bottom line for each offer
4. Vet each potential buyer to see who's most qualified to buy your home*
*This is the step that most realtors and "for sale by owners" miss!
I also give some advice for home buyers on how to make their offer stand out from the crowd and lock down that dream house.
1. Bring your highest and best offer
2. Use conventional financing instead of FHA loan
3. Don't ask for any seller's concessions or credits
4. Make sure your realtor follows up and gets your offer to the top of the pile
It's a great market right now but even a great market has it's challenges. Use these tips to help make the best decision when buying or selling real estate.
Questions? Text me: 973.506.9866
Do You Use Zillow, Or is Zillow Using You?
I Call it the Zillow monster. Why? Because It swallows up all the usable real estate data and makes us pay to get any of it out. We all pay Zillow in one form or another. Real estate professionals pay by having to buy into the paid advertisements to make themselves visible to potential prospects. Users pay by having to give up their email and phone number to get more information about a property.
Do you use Zillow for home searching? If so, this may be useful to you. I recently made a short video talking about the pros and cons of using Zillow, as well as some simple strategies for getting great information from your search without being bombarded by email and phone calls from random real estate agents.
So here's the truth Zillow doesn't want you to know: Zillow is not a Real Estate Company. Zillow is an internet company. Zillow sells Ads, not homes.
It's important to remember that Zillow is like the wild west for real estate listings. Anyone can post a listing about any property, and Zillow has little to no control over the accuracy of the information. Many times property data is inaccurate, and the status of a property for sale is almost never updated. To get the most out of Zillow, try these simple strategies:
1. ZESTIMATE is Zillow automated home value estimator but it is not a reliable source for your home's value. Do not rely on the Zestimate to determine what your home is worth. Instead, use recent sales data from your neighborhood to get an idea of what your home might sell for. Search for nearby comparable home sales by selecting "recently sold" under listing type and zooming in on the map to find comparable in your area. If you make a specific inquiry about your home's value, expect to be contacted by a local agent that has paid Zillow for their advertising platform. Remember, Zillow sells ads not houses. Zillow connects agents to buyers and sellers, and that's how they make their money.
2. When you're searching for homes for sale, or recently sold, sort by newest first. Zillow doesn't update the status of it's listings. If you are shopping for a home and looking at listings over 30 days old, chances are they are already under contract or sold. If you are really interested in a property, contact a local real estate agent to verify the information you are looking at is accurate before you get your hopes up.
Zillow can be a very useful tool for home buying and selling, but remember that they want to collect your contact information to resell and make money. Avoid this by performing your own manual searches and contact agents directly if you have questions about a particular property or you home value.
The Closing date is the most important date of the entire real estate transaction. It is the day in which title is finally conveyed between the previous owner and the new one. After weeks of negotiations and hard work, the last thing anyone wants is for a deal to fall apart at the closing table. That's why we've outlined a few key steps every buyer and seller should take before signing on the dotted line. Following each one of the tips below will help to ensure you have a smooth and successful closing:
1. Take 1 last walk through the home. Ask your realtor to walk the property with you. Bring the repair list with you and make sure all items were addressed. Make sure items that were to be removed were indeed taken out and anything that was supposed to remain behind is still there. Don't wait until the last minute to do the walkthrough, do it the day before closing so you have time to address any issues that might arise.
2. Read paperwork BEFORE the closing. There should be no surprises when you sit down to close the deal. Depending on the type of transaction there may be a lot of paperwork to sift through. There is no need to feel overwhelmed. Request that the attorney, mortgage company, etc send you the preliminary drafts of the closing documents 2 days prior to closing. calmly go through the documents and jot down notes on anything that isn't clear to you, Then consult with your attorney or mortgage rep to get a better understanding on those items.
3. Make sure checks are prepared in advance. Buyers should make sure they know in advance the exact amount needed to bring to closing. Decide ahead of time which form of payment (check, credit card, wire) is best. Sellers should decide ahead of time how they want to receive the proceeds. The bottom line is you want to make sure your money goes where you want it to go at closing.
4. Make sure all contingencies are satisfied. Were all repairs completed? Did someone obtained the municipal fire and certificates of occupancy? Were all of the buyer's mortgage contingencies met? Are there any outstanding judgements, liens, or bills that need to be paid at or before closing? Buyers should consult with their mortgage rep and attorney to tie up any loose ends. Sellers should stay in contact with their attorney and title company to make sure there are no outstanding issues that could delay the sale.
5. Make sure your moving arrangements are flexible. Too many people make the mistake of thinking the closing date is set in stone. Trust me when I say that it is not! Though there are exceptions, in most cases the closing date is a "floating" deadline. The date and time can usually only be confirmed 2-3 days in advance, at best. That's why it's important to have a flexible moving schedule, and to have temporary living arrangements set up if needed. If you are selling, don't wait until the day of closing to move out. Give yourself time to move your personal belongings without the pressure and stress of looming deadlines. Lastly, don't rent a moving van or hire a moving company until the exact date and time has been confirmed by all parties involved.
The closing is the most critical and emotionally charged moment of the real estate transaction. That doesn't mean it has to feel stressful and chaotic. Keep a cool head and these 5 tips in mind to help make sure your next closing is a smooth and successful one!
We wanted to share with you this is promotional video with some amazing drone footage put together by our new digital media specialist.
Realty 33 is committed to being on the cutting edge of technology when it comes to marketing homes for sale. We will include a 1 minute video just like this, (along with a full album of hi-res photos and drone shots) in our marketing package for all future listings. What do you think? Would this be valuable to you if you were selling your home?
You have finally decided it's time to sell your home. After meeting with a realtor and determining a list price, your house is ready for the market. But wait! Before you list the property for sale consider making a few improvements that'll help you sell it faster and for more money! Here are 8 tips on things to do before selling your home:
1. Remove all Major Clutter. Take a look at the house and determine how much clutter you need to remove. It’s important to keep in mind that prospective buyers will want to see what the house looks like behind all your stuff. This sometimes means going room to room and clearing everything out so that the whole house appears clean and organized.
2. Neutralize the Home. You may love the native tapestry on your living room wall or your grandmother’s old spoon in the kitchen but most of the time these personalized decorations will not help sell your home. Many home staging companies recommend removing personal photographs and knick knacks and replacing them with neutral items like picture frames or a vase with a simple arrangement.
3. Minor cosmetic work. Once you remove the clutter you will probably notice that some parts of the house are in need of repairs. it’s a good idea to paint where necessary, clean the carpets, repair moldings and trims, and replace cracked or damaged drywall. When making these improvements think neutral colors for any finishings be it paint or carpets. If you have hardwood floors have them sanded and finished. Area rugs can look amazing. Whatever you do, don’t over do it. Keep it simple and clean.
4. Hire a professional cleaner. Once you have the house cleared you should hire a professional cleaning crew to wash the walls, windows, work over the kitchen and bathrooms, clean the floors and shampoo all carpets that don’t need to be replaced. Your house should be spotless and kept this way for the duration.
5. Staging each room. If your rooms are smaller rearrange the furniture to make the room look bigger. For example removing some furniture is better than having too much cramped in. Set your furniture up in a conversation pit style. Make it cozy. Pull couches away from walls to give the appearance of depth.
6. Kitchen and bathrooms. To a buyer, these are often the most important rooms in a home. Make sure yours show really well. Plumbing fixtures should be working properly and look like new. Use a good cleaner or even a metal polish to make them shine. Showers and tubs should to be spotless. Sinks and vanities should to be clean and uncluttered. Kitchen cabinets should be in good working order with all doors opening and closing properly.
7. Doors and windows. It’s all about first impressions. In the case of selling your home, The first thing prospective buyers see when they walk in your home is a door. Make sure its painted or cleaned up and that it will open and close properly. This goes for screen doors as well. Windows should all be cleaned and be sure if someone wants to open them that they work properly. If they have been painted closed, as is the case with some older homes, now is the time to get them opened!
8. Odors and pets. if you’ve ever walked into a house with dogs or cats you know that it’s possible to immediately smell them as soon as you open the door. Therefore it’s important to take extra steps to remove all animal odors from a home you’re preparing to sell. Keep litter boxes fresh and clean daily. If possible, restrict your animals to certain areas of the home until after the sale. If you have more than one cat or dog remember to vacuum often and use carpet cleaners.
I know this sounds like quite a bit of work, and it is! But by following these tips you could easily be adding five to ten thousand dollars to the sale price of your home, not to mention that it will very likely sell faster! When it comes to selling a home, a little elbow grease now could turn out to be a solid investment.
Social media has taken the modern world by storm. People today are more connected than ever before thanks to platforms like Facebook, Twitter, and Instagram. In terms of real estate, this means that many potential homebuyers are starting their home search online. If you are planning on selling your house, you will want to make sure that Internet advertising is part of your marketing plan. Here are just a few examples of how to market on social media.
1. Zillow Listing- Posting on Zillow is an easy way to put your property in front of thousands of potential homebuyers. To do this, just type in the address of your home and click on "owner" tab. Then you can fill in the details about your property such as the price and number of beds and baths. Make sure to write up a nice concise description and use high quality pictures. When you are finished, publish the listing and share it on your favorite social media platforms.
2. Facebook Groups- If you live in a town that has a Facebook group, this can be a great way to reach potential buyers that work or live in the area. Share your Zillow listing or create a post from scratch with a short description and nice pictures of the property. Remember to tell people how to get in contact with you.
3. Facebook Ads- This is a little more advanced and requires some basic understanding of "pay-per-click" advertising works, What you want to do is create an ad that targets potential home buyers that live or work near your home. For the ad you'll want to include a nice picture and a short description with a "call to action". Tell buyers where to go or who to call for more information. Finally, set your daily budget and how often you want the ad delivered. Once the ad is live you can monitor the traffic and feedback using Facebook’s ad management tool.
4. Video- Take a short (less than 5 minute) video of your home and post it online. The video should either be a virtual tour or a slideshow. Make sure to use a good quality camera and keep the video professional. Edit the video to include your name and contact information at the bottom. Then, post it to YouTube with the property address as the title. Once your video is live, link to it on your social media.
5. Hire a Realtor- The tips listed above are just a couple of examples of how you can use social media to market your home for sale. There are many more. Creating and monitoring all of this content can be time consuming. That's why sometimes it's better to leave it to the professionals to do it for you! By now, all good realtors should have added social media to his/her marketing tool belt and know how to use the power of the internet to get more people interested in your property. Look for a realtor that is tech savvy, can adapt, and has a good online presence.
In Northern New Jersey it is common for a home to have an underground storage tank or (UST). A UST is a large tank that holds oil used for heating the home. Some oil tanks are active in homes that use oil as the primary heat source, while others are abandoned or decommissioned in homes that have been converted to gas heat. When an abandoned UST appears on a home inspection, it can be a complicated matter. That’s because there’s always a possibility that the soil underneath and around the tank could be contaminated with oil products. Here are 4 tips to help deal with an oil tank.
1. Tank Sweep - The first step to confirming the presence of a UST is to hire a company that will perform a “sweep “ of the property to detect the tank. If a tank is discovered, they will produce a report describing the approximate size of the tank and it’s location. A tank sweep typically costs $250-$350.
2. Get Permits & Certificates – If an oil tank had been previously decommissioned or removed, there should be a permit or certificate with the town. Buyers should be wary of a seller that mentions the removal of a tank but doesn’t have any permits or town certs to back it up.
3. Soil Test – In instances where a UST is discovered it’s critical to know 2 things: Is there is any oil product still in it and is it leaking? Remember that some UST’s can be 30 or 40 years old. The tanks decay and corrode over time and eventually can leak. If a leak is suspected then environmental company should be hired to take a soil sample and analyze it for possible soil contamination.
4. Sell it As-Is -If a UST is discovered during a real estate transaction in most cases the buyers will ask that the sellers remove the tank. However, sometimes a home can be sold with the UST still in the ground. For example, investors and house flippers often buy properties with abandoned USTs. Foreclosures, estates, and vacant homes are often sold as-is and some investors take the risk. If a seller has a UST, selling to a cash buyer may be the best option.
At Realty 33, We tap into 25+ years of experience and market know-how to help our clients make streetwise real estate decisions.