99 Single Family Homes For Sale in Annapolis Under $500,000!!!

You want to live in Annapolis but think it’s too expensive? Think again! There are 99 single family homes for sale in Annapolis under $500,000 right now waiting for you to visit!

Are you looking to live in Annapolis because of the great restaurants? Is it because of the serenity found on the water? The cobblestone streets you find downtown? Whatever the reason, you can live here!

There are so many things to do in Annapolis, you need to find the time to kick back and enjoy all it has to offer!

Check out the 99 Single Family Homes For Sale in Annapolis Under$500,000

There are currently 167 homes on the market in the 21012 and 21409 zip codes versus 173 during the same time last year.

What dictates whether prices go up, go down or stay flat? Supply and demand.

When there are more buyers in the market than homes on the market, prices go up. When there are more homes on the market than buyers to buy them, prices go down.

Comparable Data

One of the things that confuse the buyers and sellers in our local market is when they listen to the global news and try to apply it to our local market.

I try to explain it this way…. when you are planning a trip to Florida, you don’t watch the weather forecast for the west coast. You have to narrow your search by going to weather.com and putting in the zipcode for Tampa, Florida. This search is now a relevant search and can be used to start packing your bags.

Just like the weather forecast, real estate is the same way. You have to disregard what the real estate market is doing in Phoenix, AZ and do your research using a real estate site and your local zipcode. The easiest way to determine what is going on in the Broadneck real estate market, is to contact a local Realtor and ask him to pull comparables of your home and give you a competitive market analysis.

If you are thinking about selling your home in the Broadneck Peninsula, please give us a call or drop us an email and we would be happy to review the local market conditions with you and determine the value of your home.

Live well my friends!

Stop Foreclosure

How Does a Short Sale Work?

You’ve probably heard of them, you probably know someone who is going through one, but you may not understand exactly what one is.

A short sale occurs when a mortgage company agrees to accept less than what is owed for the sale of a home.

Let me give you an example to demonstrate the point.

Mr. and Mrs. Smith (sellers) are no longer able to make their mortgage payments and have let the bank know they will be engaging the help of a real estate agent to market the sale of the home.  The agent provided Mr. and Mrs. Smith a comparable market analysis (CMA), and said the value of the home was approximately $300,000 – $325,000.  Unfortunately, Mr. and Mrs. Smith bought when the market was at it’s peak 5 years ago and they owe $380,000.  The deficit is $55,000-$80,000 and if the sellers sell their house for market value, they will short the bank this amount.

How does it work?

Here are the steps:

1.  The sellers have hardship (divorce, loss of job, illness, etc.) and can no longer meet their mortgage obligation

2.  The sellers should talk with the mortgage company to see if they would do a loan modification (make a change to the terms of the current mortgage in an effort to reduce the current payment) or if the bank has any other alternative to help them stay in the home

3.  Once it is determined that the bank can’t help the seller stay in the home, the seller should interview local short sale experts.  This is a very important step because the skills needed to navigate a short sale are very different than a home sale with equity

4.  Put the home on the market.  One of the differences in marketing a short sale than a home with equity is that while preparing a home for a short sale, no money or very little money should be spent in making improvements to the home

5.  Once an offer comes in, the agent will review the price and terms with the sellers.  If the sellers accept the offer, they send the contract to the bank or banks for their approval.  This is where the fun begins.  The process for getting the banks approval (also called third party approval) can take time.  I have seen them approved in 3 weeks (rare) and up to over a year

6.  The buyer can still do their property inspections but are likely to meet resistance if they ask for any repairs as the sellers may not have the ability to pay for any repairs and the banks are not likely to make any repairs either

7.  The bank/s will make their decision and will send the approval back in writing.  If the sellers agree to the terms, it’s time to prepare for closing

8.  The buyer will now submit all final loan paperwork, the appraisal will be ordered and closing will be scheduled (typically within 30 days)

No two short sales are alike.  All of them will try your patience and proper expectations should be set for the buyer and seller of a short sale.

There are currently 13 active short sales in Arnold and 15 in the 21409 zip code.  It’s important to know there are plenty of options to explore to avoid foreclosure.  If you know someone who is struggling, please share this blog with them and help them take their first step to freedom.

Live well.

The Sales Contract KILLER – The Home Inspection

The dreaded words…. HOME INSPECTION!  Officially it is called a Property Inspection and can be a number of different types of inspections such as:  Structural and mechanical, mold, environmental, radon, chimney, etc.

For the sake of this writing, we will be talking about the structural and mechanical inspection.  You know, the one where a home inspector does a visual inspection of the structure and components of a home to find items that are not performing correctly or items that are unsafe.

For some, home inspections kill deals.

Here’s how it works in Anne Arundel County, Maryland (if you are in a different location, please check with your local Realtor).

1.  A property inspection contingency is included in the offer to purchase and stipulates how many days the buyer has to do the structural and mechanical inspection.  

2.  The home inspection is done within said number of days.  DEPENDING ON HOW THE CONTRACT WAS WRITTEN AND AGREED TO, The buyer has the right to:

• Cancel the contract 

• Ask for one or more items to be repaired or replaced

3.  The contract also stipulates how many days the buyer has to deliver request for repairs AND THE HOME INSPECTION REPORT back to the seller if there are any repairs requested.

4.  The seller has 3 choices:

• Fix all of the items requested – the buyer would be required to move forward with the contract
• Fix some of the items requested – the buyer has the right to terminate the contract
• Not agree to fix any of the items requested – the buyer has the right to terminate the contract.

5.  The contract will stipulate how many days the seller has to respond to the requested repairs.

What can go wrong with home inspections?

1. Unrealistic expectations of the buyer.  He wants to have a home with zero defects.  (PS. Good luck, there aren’t any that I know of).
2. Unrealistic expectations of the seller.  He thinks his home is perfect and if the report comes back with a defect, the home inspector must be crazy.
3. The buyer uses the home inspection as a punch list…. clean the gutters, spackle the nail pops, trim the bushes back, etc.
4. The seller doesn’t want to fix items that the contract requires them to fix (there is a paragraph in the contract (in Anne Arundel County specifically) that requires the mechanicals to be in working order) so by contract, it would need to be fixed.
5. The loan that the buyer has chosen may require certain things on the home inspection to be fixed.
6. Depending on the lender and the loan type, appraisals may require certain defects to be remedied

So what is the best way to handle home inspections? Set proper expectations with the buyer and the seller of what a home inspection is, what it isn’t and what some possible outcomes could be.  I’ve been a part of many, many very successful home inspections.  They don’t have to be the sales contract killer.

Live well and take home inspections in stride.

Do NOT Hire A Realtor Unless She Has THIS ONE Characteristic

I asked this question, “If your listing Agent had only one skill, what would you want it to be?”

Here are some of the answers:

• Must have g0od negotiation skills
• Must know the area
• Must have good marketing skills
• Must be experienced
• Must have sold homes in the area
• Must use print media
• Must know real estate stats

All of these answers are great answers, but none of them are correct.  Well let’s put it this way…. If I were listing my home, all of those would be important but one and only one would be a show stopper and it’s not on the list above.

The ONE skill that my Realtor would need to possess would be….. (drum roll please…..) she must be a GREAT problem solver.

Here are some of the CHALLENGES I personally faced this year:

• Appraisal coming in lower than the sales price
• Buyer didn’t have enough money to close two days before closing
• HOA wouldn’t reduce a short sale seller’s delinquent fees in order to close the sale
• Seller didn’t have enough money to close the sale
• The short sale bank wouldn’t make repairs that the buyer requested
• Buyer and seller were going head to head and the Agents were in the middle of a battle
• Buyer’s loan was denied days before closing

I could go on and on because there are situations and challenges every day in real estate.  Your Realtor must bring you solutions with every problem.  If he isn’t, he is remiss.

How do you know if the Realtor you are interviewing are problem solvers? Ask her what her biggest challenge was this year and how did she solve it?

Live well and seek solutions not problems!

 Silence is golden when selling your house.

God gave us two ears and one mouth for a reason.  When we are selling a house, we must talk less, and listen more.

Negotiating is an art and to succeed, you must not only hear what is said, you must listen with the intent to understand and then create a WINNING strategy.  (Seek first to understand)…..

Let me give you an example of the difference between hearing and listening.

The Agent representing the buyer calls the Listing Agent (or the agent representing the seller) and during the conversation mentions that the buyers would like to move in 30 days because their lease is up and they don’t have anywhere else to go.  If the Listing Agent was simply hearing the conversation, she will shrug it off as a detail of the offer.  However, if the Listing Agent was hearing the conversation, she might say to the seller, “We’ve got a good chance of asking for more money, the buyer has no where to go in 30 days”.

This is a VERY big difference and the very reason you must hire a talented, successful Realtor when representing you.  Ask great questions when you are interviewing a potential Realtor.

If you find this post helpful, please share it.  Thanks!

Live well and listen with intent!

You have less than five seconds to sell your house.  I bet that got your attention.  By the time you read the title, that is how fast you have to sell your home.

Yup, less than five seconds.  Why? Because if a buyer is looking for a home on the internet and your pictures don’t excite him, he moves on without even reading about the wonderful details of the house.  Worse yet, if there are no pictures, pictures of only the exterior or only the community it translates to the buyers that the house is UGLY!

Knowing that, it amazes me when I look through the multiple listing service to see some of the big no-no’s of picture taking 101.

Here are some of the top (and sometimes common) offenders:

• Front lawn not mowed and hunks of junk cars in the driveway (lots of people have them, but hide ‘em on picture day)
• Storm door opened half way
• No lights on and blinds closed
• Dirty dishes in the sink
• There are 17 loaves of bread, the crock pot, the coffee pot, the espresso machine, the wok, the toaster, the blender, the juicer and a case of beer on the countertop
• The fridge has everyone of the kids colored pictures since they were three years old (they are 27 now)
• Beds not made (that’s my favorite)
• Toilet seats up
• Undies on the floor – yup… seen it!
• Make up, shaving cream, gel, finishing mudd, oil treatment, mousse, hair fattener, curl cream, pomade and hairy brush on the bathroom sink.

You get the idea.  Your home should be in absolute show condition when you are putting it on the market to sell.  When you decide to sell your home, like most of us, there will be some de-cluttering and staging to do before photo day.

When you decide to sell your home, make sure your agent is either a photographer or she hires a professional one.  The pictures will help you sell your house or if not done well, will help your competition sell theirs.

Live well and get great photos!

If you found this post valuable, please share it! Thanks so much!

Diane

Price your home to create a FRENZY!

Years ago, it wasn’t uncommon to hear about a bidding war on a house that was put on the market in the morning and had 10 offers before the seller got home from work.

Although it isn’t as common in this market, it does happen.  In fact, I had a bidding war on a house this weekend that I put on the market right here in Edgewater, Anne Arundel County after only a few showings.

Sellers have to change their thinking.  Most  think they should establish the likely price for the sale of their home, then price it 10% higher to compensate for the negotiation that is sure to ensue.

What if….. What if you priced it AT market value or even below market value and all of your competition priced their home 10% above the market? What do you think the real buyers would think? The same thing you and I would think if we were in the market to buy a home….I better jump on this or someone else will.

A bidding war does not occur on homes that are priced above market, especially in this market.

So let’s get talk about buyer psychology.  Are there more buyers standing in line to purchase during huge sales? Think Black Friday.  What about if someone knows the price will only be good for 3 days? Does the urgency that is created by initiating a deadline help increase business? Think Auction momentum.  What if you priced your house below market for the “opening weekend” and included the new increased sales price if the home doesn’t sell that weekend? Buyer’s want what they think other buyer’s want.  Does that make sense?

Create a FRENZY – price below the market and you may even create enough activity that the price you end up with is higher than what you were anticipating to begin with.

Live well and get the buzz on!

For other ideas on what to do to create energy to sell your home, write me… happy to help.

Don’t ignore the acre of diamonds in your own backyard.   When marketing your home for sale it is critical that you emphasize the best parts of your home, homesite, and community and de-emphasize the less attractive features.

In marketing terms, you need to find your Unique Selling Proposition (USP).  What is it that sets your home apart from any other home on the market? This is a simple concept but there is nothing simple about actually identifying it.

Here are some ideas to get your started on your journey to find your USP…..

• You have the largest homesite of anyone else on the market
• You sit atop a bluff and overlook the city and no one else sits as high making your view the best
• Because of your location in the community and sitting higher than anyone else, you have a basement and no one else does
• You have more bedrooms than anyone else in your community
• You have a higher square footage than anyone in your community
• You have more usable yard space than anyone else in the community
• Your home was the builder’s model home
• You have the lowest priced home for the square footage in Anne Arundel county
• You have the best view for the sun setting over the Magothy River than any other house in the community

You get the idea.  You need to market the uniqueness of your situation and sell it.  Put it on all of your marketing.   Your Realtor should review this with you before your house goes live.  It can take some time to figure it out, but without having a USP, you are just one of the fish in the pond.

Live well and set yourself apart!

I am thinking about selling my home, now what?

1.  Call two or three TOP Realtors in your area and interview them.  Here are some great interview questions to ask a Realtor who applies for the job.

2.  Listen to each of the agents as you glean some insight into what to do to prepare your home for sale, what to do while it is on the market, and how to transition to your next home.  Each agent brings with him individual experiences and a  knowledge base from which to learn from.

3.  Evaluate your why.  Selling a home is not always easy.  In fact, sometimes it is really difficult.  You need to be sure your reason for moving is big enough to go through some of the hassles and hurdles to selling your home.  Some of these hurdles include keeping your home pristine while it is on the market, leaving the house when there is going to be a showing, scoffing down your food because you got a last minute showing as you were sitting down for a romantic dinner with your spouse, changing the sleeping patterns of your newborn to accommodate the showing… you get the point.  It’s not always a picnic so remember the big picture.  Remember your reason why.

4.  Prepare the home to go on the market! Do NOT make the mistake a lot of sellers make…. do not put the home on the market until it is “Show Ready”.

• Is the curb appeal desirable? The lawn must be cut, doggie doo-doo picked up, bushes and trees trimmed, fresh flowers and mulch, etc.
• Have you gotten rid of EVERYTHING that you won’t need between now and moving day? Rent a storage unit, borrow the corner of your best friends basement, give to charity, but get rid of it.  Your house has to look LARGE and decluttered.  Remember, when your prospects come in the house they will be trying to evaluate if their stuff will fit in the house and if it’s big enough.  If you closets are stuffed to the gills and every inch of your home has something in it…. it sends a message.  The wrong message.
• Vanilla.  Put a vanilla plug in on each floor.  Fido might stink and you don’t know it.  If you are a smoker, your house does stink. If you cook ethic food, or seafood, or spicy food, it will leave an odor.
• Neutralize.  The bedrooms should be as non-gender specific as possible.
• Define your space.  Every room should be able to be called something.  In other words, your prospect should be able to communicate what room she is talking about by saying, the office or the hobby room, or the workout room.  If you have a room that is currently being used as a workout room, your office and your hobby room, it is confusing.  Decide what type of room you need and what your buyer profile would want and get rid of the other stuff.
• Create the image you want to convey to the buyer.  The photographer is going to come soon.  Make sure you have the rooms clean, dishes put away, beds made, lights on, drapes open, atmosphere a 10…. then get ready for the pics!

5.  Determine which Realtor to hire.  I always tell people to hire on two things…. Results and Connection.  If the agent can’t produce results, pass.  They can’t produce them for a reason.  If you don’t seem to connect with the agent, pass.  The process can be several months.  A connection is important.  You don’t need to be best friends, but you need to connect, trust and like her.

6.  Go LIVE! It’s the big day! You are well prepared.  You did your homework.  You hired the right agent.  Your home looks great.  Your home smells great.  The pictures are awesome.  Get going! But be sure you priced it right to begin with!!! (That’s a different chapter)!

Live well my friends!