Friday, October 28, 2011
SW Florida Homes: The 5 Home Buying Myths
SW Florida Homes: The 5 Home Buying Myths: Survey Reveals 5 Home Buying Myths This new survey was released today by Zillow. Overall, today’s home buyers tend to be fairly ...
The 5 Home Buying Myths
Survey Reveals 5 Home Buying Myths
Overall, today’s home buyers tend to be fairly knowledgeable about the real estate market, but there are still a few points of confusion in the process, a new survey by Zillow of 1,000 potential home buyers finds.
Here are the five main areas of confusion the survey revealed:
- Appreciation: About 42 percent of home buyers believe home values will appreciate by 7 percent a year. Reality: Historically, home values in a normal market appreciate by 2 to 5 percent in a year.
- Mortgage insurance: 41 percent of buyers think they will have to purchase private mortgage insurance, regardless of the amount of their downpayment. Reality: Buyers only need to purchase PMI if their downpayment is less than 20 percent of the home’s purchase price.
- Appraisals: 56 percent of the buyers said the purpose of the appraisal was to determine if a home was in good condition. Reality: That’s the purpose of a home inspection; an appraisal estimates fair market value.
- Home owner’s insurance: 37 percent of home buyers said that buying home owner’s insurance is optional. Reality: Lenders require homebuyers to purchase homeowner’s insurance.
- Ownership: 47 percent of home buyers said a prospective buyer owns a home after the purchase contract is signed. Reality: The purchase and sales agreement is the beginning of the closing phase, but it can be a long process until they finally take ownership
Tuesday, October 25, 2011
Thinking of Selling?
Thinking of Selling?..... Looks are everything.
Sure, some buyers are sophisticated enough to be look for solid wood cabinet doors and dovetail joints in drawers, and may even be able to tell the different quality grades of granite countertops. But most buyers don't look past the surface—so if a kitchen seems fresh, polished and modern, they're impressed.
For the most impact, I suggest that you take these steps:
Buy a new countertop. A few years back, you may have been able to get away with a laminate countertop in an older or entry-level home, but I don't think that's true any longer. Sellers have realized that nothing matches the eye appeal of glossy granite in online photos, where most buyers begin to winnow their choices. Fortunately, the price for granite has dropped a great deal in recent years, especially for the cheaper grades of stone--which look just fine, in my opinion. In Southwest Florida you will find many granite shops that have very inexpensive remnants. But if granite is beyond your budget, consider Silestone or Corian. Look for deals where the installer throws in a free stainless steel sink and pull-out faucet.
Paint the walls and ceiling in a neutral color that picks up one of the tones in the countertop.
Change out any old appliances in dated colors like almond. Only buy white replacements if they match your cabinets; if you have natural wood, go for black or stainless. You needn't buy top-of-the-line, but shouldn't get the lowest end either. To make your kitchen stand out, consider adding one or two special appliances, such as a countertop microwave/convection oven or a wine chiller. If most of your appliances are relatively new and work well, paint any chips or dings with appliance touch up paint and polish them with liquid automotive wax.
Update the lighting, since few items show a kitchen's age more quickly. Swap out any fluorescent fixtures for more fashionable pendant, track, spot or can lights.
Buy new cabinet hardware in brushed nickel or bronze.
Beyond that, you can make a big impact without spending much money. If your cabinets are wood, refinish them; if they are painted, give them another coat (but don't paint over wood cabinets, as most buyers prefer natural wood to painted).
Otherwise, clean, organize and edit. Since buyers will open cabinets, throw out or store all mismatched dishes, cracked cups and ancient small appliances. Replace the shelf paper and invest in drawer organizers. Face the labels of pantry items forward and put like items together, as in a grocery store.
When you have your first open house, make sure that your floors glow and your appliances sparkle inside and out. Grind a lemon peel in the garbage disposal to kill any odors. Then, put out a plate of warm cookies. Your visitors will feel a welcome vibe.
Sure, some buyers are sophisticated enough to be look for solid wood cabinet doors and dovetail joints in drawers, and may even be able to tell the different quality grades of granite countertops. But most buyers don't look past the surface—so if a kitchen seems fresh, polished and modern, they're impressed.
For the most impact, I suggest that you take these steps:
Buy a new countertop. A few years back, you may have been able to get away with a laminate countertop in an older or entry-level home, but I don't think that's true any longer. Sellers have realized that nothing matches the eye appeal of glossy granite in online photos, where most buyers begin to winnow their choices. Fortunately, the price for granite has dropped a great deal in recent years, especially for the cheaper grades of stone--which look just fine, in my opinion. In Southwest Florida you will find many granite shops that have very inexpensive remnants. But if granite is beyond your budget, consider Silestone or Corian. Look for deals where the installer throws in a free stainless steel sink and pull-out faucet.
Paint the walls and ceiling in a neutral color that picks up one of the tones in the countertop.
Change out any old appliances in dated colors like almond. Only buy white replacements if they match your cabinets; if you have natural wood, go for black or stainless. You needn't buy top-of-the-line, but shouldn't get the lowest end either. To make your kitchen stand out, consider adding one or two special appliances, such as a countertop microwave/convection oven or a wine chiller. If most of your appliances are relatively new and work well, paint any chips or dings with appliance touch up paint and polish them with liquid automotive wax.
Update the lighting, since few items show a kitchen's age more quickly. Swap out any fluorescent fixtures for more fashionable pendant, track, spot or can lights.
Buy new cabinet hardware in brushed nickel or bronze.
Beyond that, you can make a big impact without spending much money. If your cabinets are wood, refinish them; if they are painted, give them another coat (but don't paint over wood cabinets, as most buyers prefer natural wood to painted).
Otherwise, clean, organize and edit. Since buyers will open cabinets, throw out or store all mismatched dishes, cracked cups and ancient small appliances. Replace the shelf paper and invest in drawer organizers. Face the labels of pantry items forward and put like items together, as in a grocery store.
When you have your first open house, make sure that your floors glow and your appliances sparkle inside and out. Grind a lemon peel in the garbage disposal to kill any odors. Then, put out a plate of warm cookies. Your visitors will feel a welcome vibe.
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