June « 2010 « Smith and Associates Blog

Urban Living Made Easier June 11, 2010
By Stephanie Streeter

Living in multi-family buildings can be tough, especially in places where sound sometimes carries between units as if the walls between them don’t exist. If you love your Tampa condo or St Petersburg townhome, or are thinking about purchasing one, but don’t like noise there are solutions for you. No longer are we just limited to noise reducing products that are more practically suited for remodels or new construction.

United Plastics Corporation has created a noise-reducing product that’s specifically designed for installation in existing homes, offices, condos and apartments. The product, called dB2-4, is advertised as capable of reducing noise by as much as 75 percent. Since it’s made from recycled plastic, it’s also green friendly – and can be recycled once again if it is ever removed. Best of all, once the lightweight product is installed it call be painted over, so there’s no need to sacrifice your decor.

So whether you’re currently living in a Tampa or St Petersburg multi-family environment, or thinking about purchasing a home in one, there’s no longer a need to worry about sacrificing your silence in order to gain the urban lifestyle.

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Myths About Buying Foreclosures June 10, 2010
By David B Moyer

Foreclosures Need A Lot Of Work. This can be true, but more often than not homes are only in need of cosmetic repair. There are of course, nightmare Tampa real estate stories where the whole house needs to be renovated, the electricity is inoperable, or the plumbing does not work properly. In such cases, the home can become a money pit. In most cases however, the house may need paint, flooring, or appliances, which are items that a lot of new homeowners would possibly change anyway.

Foreclosures Are BARGIN CHEAP. Foreclosures are generally cheaper than standard sales, but they are not quite the savings that most Tampa real estate discount hunters are looking for. Typically bank owned properties require appraisals. Also, banks will have Realtors give a an opinion of value equivalent to a quick sale in the market. The price may be significantly cheaper than what the original owner paid, but not too drastic from what the current market is. Be realistic with the prices; they may be at maximum 15-25% off the market price, not 50%.

Foreclosures Are RISKY. Buying a foreclosure at an auction on the court house steps can be very risky. The chance that the home carries liens and other loans do exist. Though, typically buyers are looking for bank-owned foreclosures which are treated more like regular home sales. Plus, the owner is the bank which means it will most likely result in a cleaner transaction.

Foreclosures Do Not Allow Inspections. Again, when you purchase a foreclosure from the court then there is a very small chance for an inspection of the home. When you purchase from the bank, they will allow inspections which enables you to determine prior to closing any major issues the property may have. Though in almost all cases the home will be sold “as-is”, meaning the bank will not complete and/or pay for repairs prior to closing, the inspection process allows you to add repair costs into the price of the home to get a clearer picture of actual cost.

Make Low-Ball Offers. The banks are NOT that desperate to give the homes away. In fact, more often than not, the homes sell for more than the list price. A foreclosure listing is handled just like regular a Tampa real estate sale, meaning the bank will consider lowering the price after a few weeks if they feel that the price is too high for the market.

You Have To Buy Foreclosures With CASH. This would most likely be the case with a property being sold at a courthouse auction, but not with a bank owned foreclosure. The property is treated like a regular sale, and conventional loans can be obtained. Only if the foreclosure is in really bad physical shape is it possible that it may only be purchased with cash. The reason for such a situation would be that the property does not meet the standards for loan.

It’s Easier To Buy The Foreclosure With The Bank That Owns It. If you have difficulty getting a loan from other banks because of poor credit and you think working with the existing bank is a viable option, that’s just not the case. The bank just had a bad loan and had to foreclose, and they are hardly likely to provide a low credit buyer with another risky loan. The bank would be happy to provide a new loan to a buyer, but only if they qualified like any other person would.

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Sweeten The Deal For A Quicker Sale June 9, 2010
By Stephanie Streeter

We all like deals. A freebie when we buy a product. A sale. We also all like guarantees and warranties. Something that makes us feel like there’s something backing up our purchase – if something goes wrong, there’s someone to help.

If you’ve been unsuccessfully attempting to get a contract on your Tampa home for sale, maybe it’s time to apply the same concept to your home. Sweetening the deal for a potential buyer could possibly mean the difference between making a sale or not. How about offering a home warranty with the deal?

If the property you’re selling isn’t brand new or recently completely redone, a potential buyer who tours the home may look at some of the older features a little warily. An older dishwasher, water heater, A/C unit, or other item that’s older may make a buyer feel uncomfortable with the home. By offering a home warranty a seller can counteract that problem, because if under warranty a older feature of the Tampa home for sale can be repaired or replaced if necessary.

If this sounds like an option for you, consider speaking to your Realtor® about offering a warranty with the sale of your home. Unfortunately, all home warranties are not equal, and there are plenty of options available right now. In order to make sure you end up with the right choice, doing research is always the best option. Warranties vary greatly in cost as well as reliability and coverage. So what do you need to know before choosing?

First, don’t get a home warranty confused with insurance – they’re two very different things. While a home owner’s policy covers damage and loss due to accidents and other situations, a home warranty covers mechanical failures for appliances and other household systems. The typical warranty gives coverage for up to one year. Again, each warranty will differ in regards to what they cover – some will cover A/C, others will not.

If you’re having trouble finalizing a contract on your Tampa home for sale that may not be as updated as those for sale down the block, adding a buyer incentive like a home warranty may be worth a try. But remember, whether purchasing a home warranty for a potential buyer or yourself always make sure you comparison shop to find the correct choice.

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5 Reasons Why You Still Need a Realtor June 8, 2010
By David B Moyer

Face it, everyone is looking to save money. Maybe your way to do it is driving less to save gas, buying generic brand food, or limiting the designer clothes. Whatever your cost saving techniques might be, they should stop when it comes to buying or selling a house. Buying or selling real estate is a major financial and emotional undertaking, and a transaction that should not be made when flying solo.

1. Access & Convenience to More Homes

Licensed Realtors (Real Estate Agents) act as a liaison between buyers and sellers full-time. They have easy communication lines between other agents, and all Tampa homes for sale. If you are a buyer they will find properties that meet your criteria and schedule appointments. For home sellers, you have to solicit and market your own home, field phone calls, and get back to prospective buyers quickly. You may make an appointment during your work hours and rush home, just to have the person not show up.

2. Negotiating

Have you ever purchased something that someone else owns when they are emotionally and financially attached to the object? It usually does not work out easily for both parties. Sometimes the seller resists selling, or the buyer is not willing enough to pay for it. An agent serves as a referee between parties and can help to prevent bad blood between parties and negotiate with other agents to get the deal done. The seller’s agent can explain why the owner of the Tampa home for sale is asking for a certain price and research comparative sales, and the buyer’s agent can defend and make strong points about a lower offer.

3. Contracts

The offer/purchase contract has language that can protect both a buyer and a seller. A skilled professional can easily navigate contracts and ensure the right language is there to protect you from any issues that may occur during a transaction. Whether this is a financing contingency, inspection clause, or other language that can be an “out” for a buyer or seller, a licensed professional is always available to assist if a situation does come up.

4. Professional Obligations

Realtors work under various organizations. These can include an MLS Board, their Broker, the National Association of Realtors, and so on. Realtors are held to a code of ethics, laws, and practices. This means if something does go sour with a transaction based on Realtor negligence, there is accountability. Without a Realtor, you are unprotected against a seller/buyer who may just lie in order to get what they want in a transaction.

5. Skipping A Realtor Won’t Necessarily Save You Money

For a Buyer, it usually costs $0 to work with an agent. The commission is typically paid by the Seller. On the Seller side, the exposure and market knowledge gained by working with a Realtor makes a transaction very efficient. Most buyers in the market work with an agent, and an easy way for your home to be missed among all the Tampa homes for sale is to not have it listed with an agent. The extra time the home sits on the market delays the ability to move to your next home, while you continue to pay your existing fees. The effort of fielding phone calls, meeting appointments, and trying to market the home are all time spent – and we all know time is money. In this declining price market, the longer the home does not sell the more the home price may fall.

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Get The Price Right June 7, 2010
By Stephanie Streeter

One of the biggest problems sellers in today’s Tampa real estate market face is pricing. Many sellers don’t see any harm in asking a higher price when first listing their home. “I can always reduce it later” seems to be the most common response. The problem is that such a price is based on what that individuals desires to get for the home, rather than what the market has determined the actual price should be. The end result will be price reduction after price reduction, and a waste of valuable time on the market.

Today’s buyers are well educated about the market. The state of real estate is constantly in the news, and it’s impossible to avoid. Buyers out in the market are justifiably nervous, very cost-conscious, and do much more research on a potential purchase than they would have a few years ago. High prices are often a signal for unrealistic or unmotivated sellers, and buyers in today’s market don’t want to waste their time on such a situation. There is no longer the urgency to buy Tampa real estate that there was a few years ago, which means that potential home owners will not overpay.

“The savvy buyer has done research is very aware and cautious when they see a property on the market for an extended period of time,” says Dave Traynor of Smith & Associates Real Estate. “They will also know that the extended time on the market is a result of the home being over priced.”

If you’re going to be listing your home for sale, make the most of the market from the beginning. Price competitively. The old strategy of padding the list price of a home to leave room for negotiating no longer works. The home should look its best, and be priced competitively in order to catch a buyer’s eye and entice them enough to make an offer. “Many agents have a list of buyers anxiously waiting for new homes to hit the market,” says Traynor. “When they are priced right initially, those homes have been seen to go under contract within the first week.” So, take the best advantage of the Tampa real estate market possible, and get your home priced right from the start.

Want a professional analysis of what the right price is for your home? We would be happy to provide a free market analysis for you. Please request one here.

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First Friday In Downtown St. Petersburg June 4, 2010
By David B Moyer

Finish of the work week in style every first Friday of the month in Downtown St. Petersburg! The main event can be found on Central Avenue between 2nd and 3rd streets. You can find music, drinks, and a great crowd of people ready to relax and have a good time. It’s a great opportunity to check out the amazing restaurants, great local art scene, and hip clubs and bars amidst 3,000 of your Tampa Bay neighbors. Each event runs fron 5:30 – 10 pm and features a different band, frequently jazz. June’s event features music by The Venturas.

The monthly block party is organized by the Breakfast Optimist Club of St. Petersburg, which uses the event to raise funds for important projects. For eight years in a row, First Friday has been the club’s most successful fundraiser.

If you’re in the mood for more, Jannus Landing offers further music, or you could just go straight to nearby Tropicana Field and check out the 1st place Rays. For more information on the event, please visit their website.

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Things To Know Before You Hire A Stager June 3, 2010
By Stephanie Streeter

When owners list their Tampa homes for sale, they become a commodity – merchandise for someone to purchase. Like any retailer, making sure that your home is displayed in the best manner will assist you in getting that product sold. Think of the products displayed in your favorite store or boutique. Most likely things are displayed in an organized, uncluttered fashion and they’re placed in a way to make them look like their best. The same rules should be applied when selling your home, and staging is a definite way to accomplish it.

A stager’s job involves rearranging, or possibly adding or removing, furniture and decor in your home in order to play up its best features and get it sold. They can be an absolute asset in the process of marketing Tampa homes for sale, but there are things you should know before hiring one to stage your home. Staging is at this point an unregulated profession, which means that what you get when you hire one can very greatly from the next. It does not require a degree or any specific training, which means that individuals can come from any variety of backgrounds, training, and experience. Similarly, what you get for the fees you pay will very greatly too.

Although professional training is not required to become a stager, most in the field have a background in design, decorating, real estate, or a related field. Some who are very successful in the field have work experience in merchandising. Not all those working as stagers are without training in the field, it’s just not required. Courses are offered across the country in both online and in-person formats, and typically last a few days in duration. Most of the courses however, focus more on the aspects of running a business successfully than they do on the aesthetics and principles of what will help a home sell. When hiring a home stager, make sure to investigate their qualifications and experience before making a final decision. Ask to see samples of their work to make sure you feel comfortable that they are the right fit for you.

When it comes to charging for services, some will complete work on an hourly basis while others charge by the job. In most cases, a stager will offer a free consultation which allows them to get a look at the home and formulate a bid. How much such a project will cost will vary greatly depending on the state of the home. For instance, if a vacant home is being staged there will be a cost involved for rental furniture. Another project may involve a fully furnished two story home that more than anything else is in need of a reduction in furnishings and ‘stuff’. Since each of the Tampa homes for sale are unique, every home will need to be seen before a price can be agreed upon.

The best way to track down a great stager is by asking friends and professionals you know. Referrals are often the best source of business for those in the field, and we all feel more comfortable going with someone who’s been recommended by another. So, ask around! Also, interview at least three to get a good picture of what’s available in regards to services and then make the choice that’s right for you.

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Renting Your Home June 1, 2010
By David B Moyer

“I can’t afford to sell in today’s market. I bought the home a few years ago, and I own the property for more than I can sell it for.” This is a real situation for many people in today’s world, and the situation represents 40% of the properties listed today. Many owners attempting to sell property in the Tampa real estate market are affected. People who can’t afford the mortgage payments fall into short sales and foreclosures when they list the home.

The other 60% of the current market are regular real estate sales. So how do they manage to sell their home? They can sell quickly at today’s market price, and move on to the next property at a great value. In most cases the properties do not have giant loans or the owners have had the property for many years (over 5). They can afford to sell their Tampa real estate and are flexible enough to get it done.

If you fall into a situation where you need to move, but can’t sell (either because you’re not willing to take a loss or do not want to harm your credit), then leasing your home to a renter is a very viable option.

In an article provided by MSN, June Walbert of USAA explains some things homeowners should be aware of when renting a property. This is great advice for any owner considering renting out their Tampa real estate. “First replace your homeowners insurance policy with rental-home insurance. It covers the building and provides liability protection but doesn’t cover possessions, so it tends to cost about 20% less than a regular homeowners policy.” She also recommends including “a section in the lease requiring your tenants to buy renters insurance, which will cover their liability and belongings.” In addition, she recommends that homeowners be aware of how reting will affect them at tax time. “When you file your tax return, you’ll generally report rental income and expenses on Schedule E. You’ll be able to deduct your mortgage interest on the rental property, as well as insurance premiums, real estate taxes, advertising costs to rent the house, rental management fees, utilities you pay, travel to and from the property and legal and accounting costs.”

Smith & Associates Real Estate can assist with listing your Tampa real estate for rent and finding a tenant. We specialize in quickly locating qualified rental clients. Our experts will provide you with rental services that will allow for maximum exposure of your property. The steps would include having a property orientation, preparing the property offering, meeting and evaluating prospective tenants, preparing lease agreements prepared by a Florida eviction attorney ($50.00 fee), advertising, and processing of applications and credit checks. Please inquire with us about our fees. Smith & Associates Real Estate complies with all fair housing laws with applicants.