THE STRESS OF BUYING AND SELLING A HOME
By Stanley Popovich

Many people deal with the anxiety when buying or selling a home. This process can be a bit overwhelming and even confusing to many people. In this article you will find some ideas for ways to manage the anxiety of purchasing or selling a home.

The first step is to determine your goals. Whether you are selling or buying a home, determine exactly what you want to accomplish.  It will save you a lot of time and money in the long run if you know your desired outcome. Sit down and think about the overall goal of what you are looking for and convey this to your real estate agent. Some people like to write down their goals on a piece of paper so they have something to go back to when stress makes things unclear.

The 2nd step is to educate yourself on the steps of purchasing or selling a home. Go to your local bookstore and find some books that will explain the process of buying a home. Research on the internet regarding the steps involved in selling a home. There are many resources available that can educate you on the processes you need to go through. Confidence in knowing what you are doing will help reduce the anxiety of the situation.

The 3rd step is to find a reputable real estate agent that can help you accomplish your goals. Ask some of your friends on who they recommend  Referrals from people you know are a great way in finding a good real estate agent. If that is not possible, go online and read reviews on your local real estate companies.

Besides a good agent, an experienced friend my be able to aid you in your goals. Chances are that you know someone who has purchased or sold a home. Having a friend who can assist you along the way can really help reduce the anxiety of the process.

Fourth, get your finances organized. Make sure you have an idea on what you can afford and check to be sure that your credit is good. The financial aspect of buying or selling a home does not have to be scary if you have a sound business plan and a realistic budget. Buying a home you can’t afford will only cause worse problems down the road. Determine what you can afford and develop a budget where you will be able to keep up with your bills.

Fifth, read the fine print on everything before you sign any papers. Do not assume anything. Ask questions if you are uncertain on some aspects of buying or selling a home. A good real estate agent will not mind if you ask questions, however you should do your part and try to educate yourself on the entire process.

There may be times when everything seems to be happening all at once. If this happens to you, get away from the situation for a little while and do something else. If nothing else occurs to you take a walk, listen to some music, read the newspaper, go shopping, go fishing or whatever it takes to refresh and get a fresh perspective on things.

Purchasing or selling a home does not have to be as stressful as it sounds if you make the proper preparation.  There is help available if you get stuck or confused. The most important thing is to do your homework.  Determine your goals, educate yourself on the steps to reach your goals, ask questions, and take it one step at a time. If you follow these guidelines it will enable you to reduce the stresses of purchasing or selling your home.

BIOGRAPHY:

Stan Popovich is the author of “A Layman’s Guide to Managing Fear Using Psychology, Christianity and Non Resistant Methods” – an easy to read book that presents a general overview of techniques that are effective in managing persistent fears and anxieties. For additional information go to: www.managingfear.com.  

Do you really need this e-course?  Let me ask you some questions.  Do you know:

• How to avoid buying an “unbuildable” lot (and 3 ways many people get burned)?
• The 7 factors that drive Smith Mountain Lake property value?
• How to avoid expensive flood insurance at your waterfront property?
• How the lake authorities can remove your dock priviledges (and how to prevent them)?
• How an unethical seller or real estate agent can cost you $$$?

These questions, topics and much much more are answered in detail in The Definitive Guide to Smith Mountain Lake Real Estate e-course. 

I understand how critical this information is for you. 

That’s why I’m giving you a special opportunity – the chance to get this e-course for FREE! Simply click here, if you would like to sign up!

How is the Seller’s Credit Effected By a Shortsale?

Sellers will take as big a hit on their credit by going through foreclosure as giving the lender a deed-in-lieu of foreclosure. Points lost on a FICO score are as follows:

Foreclosure or Deed-in-Lieu of Foreclosure
Both of these solutions affect credit the same. Sellers will take a hit of 200 to 300 points, depending on overall condition of credit. This means if a seller’s FICO score before foreclosure was 680, it could dip as low as 380.

Short Sale
The effect of a short sale on a seller’s credit report is identical to that of a foreclosure. The ding on credit will show up as a pre-foreclosure in redemption status. Which will result in a loss of 200 to 300 points. This means a short sale with a previous FICO of 720 will see it fall from 520 to 420.

The effect on a consumer’s credit report—foreclosure vs. short sale—is the difference between being hit by a train or a bus.

Here’s why:

Waiting Period Before Buying Another Home

Foreclosure or Deed-in-Lieu of Foreclosure
A seller who wants to buy another home after foreclosure will end up waiting about 36 months before a lender will offer any kind of interest rate that makes sense.

Short sale
A notation on a consumer’s credit profile of ‘settled for less than owed’ (short sale) precludes the consumer from obtaining an institutional loan for 24 months, depending on the lender’s program and regardless of FICO score. Fannie Mae guidelines require 24 months seasoning, and there’s no way to get around this.

Short Sale/Foreclosure Deficiency Judgments

The bad news is a seller could be subject to a deficiency judgment for the difference between the loan amount and the amount paid. In California, purchase money loans are not subject to deficiency judgments; however, hard money loans, equity loans and refinances are. Some other states have laws regarding personal guarantees, which could also result in a deficiency judgment, if the home owner is held personally liable for loan repayment.

The lender has sole discretion whether to pursue a deficiency judgment in those instances when the judgment is permitted. To determine whether a pending foreclosure or short sale is subject to a deficiency judgment, talk to a real estate lawyer.

By: Tim and Julie Harris. Tim Harris and Julie Harris are the founders of Harris Real Estate University.  The nations largest online University for Realtors and real estate investors. Named NAR”s Agents of the Year their first year in the business, Tim and Julie run the #1 Short Sale training program for Agents. To get your complimentary copy of their 7 Part “Short Sale Secrets” Crash Course, visit Harris Real Estate University at: http://g.adspeed.net/ad.php?do=clk&aid=53983&auth=367BF6370F&r=

If you need more info. about real estate at Smith Mountain Lake you can contact Paul Moore of Smith Mountain Homes Toll Free at (877) SML-HOME, or visit the website at http://www.smithmountainhomes.com/.

On the back of the cover, “The Definitive Guide to Smith Mountain Lake Real Estate”, reads: Smith Mountain Lake has quickly become one of the East’s most popular destinations for vacationers, second-homeowners, retirees and telecommuters. The lake is a natural draw for water and mountain lovers of all sorts. Yet this rush to buy lots and homes here has meant problems for some…….Fortunately, each of these issues can be navigated successfully with good counsel and careful investigation. That is the purpose of this book….

Other local real estate agents are giving the book good reviews for it’s relevance and helpful information. The book is broken down into chapters under 8 practical headings and is very readable. For your copy of Paul’s book visit www.SmithMountainHomes.com or www.SMLLots.com.

There may actually be good reasons for both of those types of situations. The value of a piece of property is often based on the price that a willing buyer will pay and a willing seller will accept, which may be somewhat different from an appraiser’s opinion. There are several factors that combine to produce the marketable value of waterfront property here. These factors can for the most part be summed up in seven points: The View, The Slope, The Waterfront, The Home, The Location, Cove Versus Main Channel, and The Lot Size.

These seven issues are covered in great detail on our blog, with the intention of helping to prevent both buyers and sellers of Smith Mountain Lake Real Estate from making costly mistakes. Simply click on this link to read more about the seven factors: http://www.smithmountainhomes.com/blog/.

It is a blog on everything a buyer (or owner or seller) would want to know about property at Smith Mountain Lake. Paul Moore, the author of a book called ‘The Definitive Guide To Smith Mountain Lake Real Estate’, puts up regular posts on the subject of real estate from a practical perspective.

Did you need to know about the lay-out of the lake itself? Or maybe you need to know what specific characteristics make Smith Mountain Lake property valuable. Whether it’s general facts or very specific details about buying and selling, you will find those issues addressed on this website. The posts are very readable, interesting and are updated often, so if you have interest in SML real estate for any reason go to http://www.smithmountainhomes.com/blog/ and leave us a comment to tell us what you think.

Homeowners are always looking to fine-tune the look of their homes before they put their house on the market. But all too often an area that gets forgotten is the closet.

Everyone seems to have more stuff than ever before and a lot of that stuff gets crammed into the closets. Then when you list the home on the market, and Mr. and Mrs. Buyer come to have a look, they reach for a closet door and are greeted with an overstuffed, unorganized mess. The prospective buyers don’t see your valuables as prized possessions; instead what they see is too much stuff and too little space. Often buyers can’t picture their belongings in a home that’s filled with clutter. That’s why a lot of agents will recommend organizing, not just the space you see immediately upon entering the home, but also the closets.

“I think that instead of being kind of a luxury, now it’s something that everybody thinks they need,” says Paula Gallegos, co-owner of Conejo Closet Designs in Thousand Oaks, California. Gallegos says an organized, well-planned closet can be a huge attraction. “Who wants just a regular shelf and pole when you have all these capabilities of the hangers and the drawers and the belt racks, shoe shelves — everybody needs storage” she says.

The requests for closet organizers are growing in an interesting way. Closets are turning into spaces where people don’t just store their clothes. They’re also considered an important upgrade for many buyers. Just as a large renovated kitchen and bathroom area are typically more appealing to buyers, so too are organized closets.

“They’re getting bigger. They want more bells and whistles. They want more accessory items. There is one home we’re bidding (on the project) right now that has an upstairs bedroom and they’re putting a refrigerator in the closet,” says Gallegos.

At the top of every homeowner’s list is how to maximize space. “Sometimes that might be extending your organizers higher than what you have, maximizing the overhead space and sometimes it’s a matter of using the extra space you have below with baskets and shoe shelves and things like that,” says Gallegos.

One of the newest trends for closets is being borrowed from the dry cleaning industry. It’s a rotary closet device called Rotabob and it literally brings the clothes that are stuck in hard-to-reach places right to you.

“For instance, you probably see a lot of closets that are not too deep — you know a reach-in closet and they’ve got a real long return where you look down the side of it and it’s two or three feet of really hard-to-get-at space. So, with the Rotabob you can install one of those and just basically bring your clothes to you instead of having to reach in for them,” explains Gallegos.

They carry a price tag of about $900 to $1,200 for a unit with installation but after it’s put in there’s nothing else to do. “They are stainless steel units with ball bearings so there’s no maintenance and no electricity and they work for just about any closet,” says Gallegos.

These units are becoming popular not just for closets but also laundry rooms, storage spaces, and garages. “Someone actually put it in a utility closet and loaded it up with baskets and hung their mops and rags on the handles and put their cleaning supplies in the basket,” says Gallegos.

Being organized on the outside of your home creates curb appeal that gets prospective buyers in the door. Then keeping them there long enough to decide they can’t live without your home requires careful, well-thought-out organization inside your home including those areas that you don’t notice right away but your prospective buyers most certainly will.

Written by Phoebe Chongchua at Kirk Greer’s Real Estate Update.

Recouping Your Investment

After you’ve answered the above questions (Profit By Improving Your Home Part 1), the next two items that you’ll need to address is how much satisfaction you’ll get from the improvements and how will they add to the value of your lake home. Here are some considerations on how specific improvements will add to the house’s value:

• • Some changes are required. For example, a leaky roof needs to be fixed before any further water damage is incurred.
  • Make sure the changes will not put the home’s value out-of-the-market for its area
  • Just like your home in the city, bathroom additions have the highest payback for recouping your investment.
  • Additional investments that have a high payback are; kitchen remodeling, adding a master suite, two-story addition, basement remodeling and window replacements.
  • Seasonal improvements work well in certain areas of the country. My favorite is adding or improving a deck (since that’s where you’ll spend a great deal of time).

Be careful making changes outside your lake home. Most prospective buyers will not put a high value on landscaping. However, you can make significant improvements by cleaning up the grounds and adding improvements like walkways that help accessibility.

Regardless of what improvements you decide to make, good planning is crucial. You should prioritize your remodeling efforts depending on how you answered the above questions and how you think they will impact your lake home’s value.

About the Author:
Kenyon Blunt is the publisher of “Lake Home Tips.” To learn more, click on www.lakehometips.com.

Once you’ve found your ideal lake home, it probably isn’t ideal in every sense of the word. It might just need a fresh coat of paint or it could need some substantial remodeling. Regardless of the extent of the improvements needed, it’s wise to know which ones offer the best likelihood of improving the value of your lake home.

Lake homes are unique compared to other real estate purchases because they often come furnished. It’s been my experience that what’s included with the sale is hardly worthy of a good garage sale. So, when you buy your lake house, you should plan on spending at least $1000-$2000 upgrading the furnishings. This doesn’t do anything to improve the long term value but it does make it more pleasing while you own the property.

A second thing that you’ll probably need to do right away is to give your lake home a new coat of paint. Depending on how long you intend to own the property, this may not add any long term value either. Again, it’s one of those quick fixes that will make your lake home more enjoyable.

After you change the things that will make your lake home more livable, it’s time to think about how you can improve its value. Before you lift a hammer, you’ll want to plan your improvements and focus on the ones that have the best chance for increasing your home’s value.

Planning Your Improvements

There are four questions that you’ll need to answer before you begin any improvements to your lake home:

• • How long will you own your lake home? The longer you own the property, the less annual return you’ll receive from the improvements
  • Will you do the work yourself or hire it out? You can make more money by doing some of the job yourself but you do need to have the time and skills to do it (otherwise it could cost more)
  • Are you planning on financing the improvements? If so, you’ll have to factor in the costs of borrowing money into the projected payback of the project
  • Do you have dependable contractors? This is perhaps the hardest question based on my own personal experience. Contractors at the lake are on “lake time” which means they may or may not show up when you need them.

About the Author:
Kenyon Blunt is the publisher of “Lake Home Tips.” To learn more, click on www.lakehometips.com.

Even as the rest of the residential market is cooling, second-home
sales in many parts of the country — especially near the water —
continue to thrive, real estate specialists say. The reasons, they say,
include still-low mortgage rates and continued demand from
recreation-minded baby boomers, who are flush with cash or equity in
their primary residences.

As we are aware just by browsing our local real estate publications here at Smith Mountain Lake, these real estate realizations are seen by any water-based community.

From tropical oceanfront listings all the way to our “Gem of the Blue
Ridge” inland lake community and everywhere in-between. But in the
same turn, we also need to be aware that the actual climb of value is
slowing… while waterfront homes certainly are maintaining their
value, according to financial analysts, we can also count on the demise
of 20% – 30% annual value property rises, which can actually be good
for any waterfront community’s financial stability.

So, in summary, look forward to seeing our investment in this community prosper as we continue to enjoy one of Virginia’s true great natural resources… Smith Mountain Lake.