Should I Sell My Home Now or Wait Until the Spring?

There are many questions homeowners ask themselves during the selling process. "How much will my home sell for?"  "How much should I list my home for?"  "Who should I select as a real estate agent to sell my home?"  "What if the real estate agent overprices my home?"  Last but not least, "Is this a good time to be selling a home?" is also a very common question that real estate agents are asked.

As with every decision in life, there are pros and cons, and choosing when to sell a home is no different. There are many factors that need to be taken into consideration before deciding when to sell a home. Many homeowners believe selling a home during the fall or winter months is not a good idea and that the spring is the only time a house should be sold. This is the furthest from the truth. Certainly most real estate markets across the United States experience a "spring market rush" every year. There is no doubt that the "spring market" is a great time to be selling and buying real estate, however, the fall and winter seasons may be the best fit for you for many reasons.

Here are several reasons why choosing to sell your home now may be a better decision than waiting until the spring:

Less Competition
One way that you can tell the spring real estate market has arrived is by driving down a street in your local community. In all likelihood there will be For Sale signs up all over the neighborhood! One great reason to sell your home now and not wait until the spring market is there is sure to be less competition.  The fewer number of comparable homes for sale, the greater the probability that a buyer will look at your home.

Simply put, it’s the supply and demand theory. If there are less homes for sale, there are less homes that a potential buyer can choose from, therefore increasing the demand for your home. Not only will less competition increase the probability for showings, but it will also increase the probability that an offer will be received and you will get the maximum amount of money for your home.

Serious Buyers Are Out There
Homes are sold and bought 365 days a year, period!  Many homeowners believe that buyers aren't out there during the fall and winter months. This simply is not the case. Serious buyers are always out there!  Some buyers may stop their home search because it is the fall or winter, but serious buyers will continue to look at homes, no matter what time of year it is.

The fall and winter months are also a great time for a potential buyer to see what a specific neighborhood is like.  Do your neighbors have pumpkins on their front step?  Are there lots of Trick-or-Treaters wandering the neighborhood on Halloween?  Do any of your neighbors have any light displays for the holidays?  There are buyers out there who will look at these types of things when determining whether your home is in the right neighborhood for them or not.

The Best Agents Are Always Up To The Challenge
Any real estate agent who tells you that the fall or winter months are a bad time to sell is not someone you want selling your home! A great real estate agent will know how to adapt to the current season and market their listings to reflect that.  A great real estate agent can make suggestions and give some of their tips on how to sell a home during the fall or winter seasons. If a real estate agent doesn't have any suggestions on making your home more desirable for the current season, you should be concerned about the creativity they are going to use when marketing your home.

Staging For The Holiday Season
Many sellers believe staging a home is the main reason a home sells.  While staging certainly helps sell homes, some buyers have a difficult time envisioning themselves in a home no matter what you do. However, there are some buyers who can easily be "sold" on a home because it is staged.  Simple “seasonal” staging such as adjusting the color of the decor or having an aroma in the air that is relative to the time of year can go a long way with some potential buyers and possibly be the difference between a home selling or not.

Quicker Transactions
Right now, there are fewer real estate transactions than there will be in the spring.  The fewer number of transactions means the mortgage lenders have less loans to process, attorneys have less closings to do, and home inspectors have fewer inspections to do.  All of these factors should lead to a quicker transaction and closing for all the parties involved.  One of the most frustrating things for a seller to deal with while selling their home is not getting answers in a reasonable amount of time. A quicker transaction is going to be less stress for you.

By considering all of the reasons above, you will be able to determine whether now is a good time to sell or if you should wait until the spring.

Bob Abner is a highly respected, top-producing, full time, Realtor for over 30 years and is an expert in the Northern Kentucky real estate market. Give Bob a call at 859-760-1660 Email Bob at BAbner@huff.com Visit Bob's Website: http://www.bobabner.com

Top 6 Home Selling Tips In The Winter

#1 Keep the house warm.

While you don't have to keep the heat on all the time, keep the house warm during showings. You don't want people shivering while they look through the house. Set the thermostat to at least 70 degrees -- whether you'll be in the house or not.

#2 Trim the outdoor foliage.

Remove snow from shrubs and trees so that potential buyers don't get wet as they walk up the sidewalk to your home. Brush off snow, prune the tree limbs and trim the hedges as needed. You can even hire a tree service to do this for you if you're strapped for time.

While your lawn is dormant this time of year, you can at the very least make it look well maintained to give buyers a sense of what it looks like during the spring and summer. You can also display photos in your entryway of how your home looks outside during the greener months.

#3 Handle winter conditions.

If you have ice and snow on your driveway and sidewalk, you need to take care of it way in advance of showings. Clear ice and snow with shovels and salt, so that your exterior looks nice and safe to buyers. It will also increase the aesthetic quality of your home to buyers and keep you from getting sued by a buyer who falls or slips. If you have particular trouble with ice and snow, you can call a snow removal service to do it for you.

#4 Show off the fireplace.

If you have a fireplace, you should showcase it as part of your home's aesthetic appeal. A gas fireplace is easy to turn on before a showing, and it adds natural beauty to your home -- not to mention warmth. A wood-burning fireplace is a bit harder to maintain because you can run out of firewood. So you need to time the lighting just right before the showing. You also need to make sure the chimney is in good condition, so have it cleaned and checked by a fireplace professional ahead of a showing to avoid any problems.

#5 Add comfort to your home.

There are other steps you can take to make your home more comfortable and inviting during the winter months. Focus on small improvements to your home like:

• Adding blankets to your couch
• Turning back the comforter on the bed
• Baking a pie or cookies for the smell
• Lighting some candles
• Turning on some relaxing music

#6 Make sure your home is well lit.

Since winter takes away a lot of sunshine, you need to utilize light bulbs and other forms of lighting. Outside lights, security lights, candles, LED lighting -- every bit of lighting is crucial in the interior and exterior. You want all lights on when buyers are walking through your home -- don't focus on your electricity bill right now. You also want to make as much use of natural lighting as possible. Open your window treatments during the day showings.

Bob Abner is a highly respected, top-producing, full time, Realtor for over 30 years and is an expert in the Northern Kentucky real estate market. Give Bob a call at 859-760-1660 Email Bob at BAbner@huff.com Visit Bob's Website: http://www.bobabner.com

What Are the Differences in Mortgage Pre-Qualification and Pre-Approval?

When you’re considering buying a home, there are two terms you’ll hear, both of which are related to getting a mortgage loan. There’s mortgage pre-qualification and pre-approval. Sometimes people use these terms interchangeably, but they’re different from one another.

Understanding these terms is critical because they’re going to help you know what you can afford as you search for a home, and they’re also how you’re going to demonstrate you’re a serious buyer to a seller.

Both are similar in that they are steps along the way to get a mortgage, but if you have a preapproval, you don’t necessarily need a prequalification.

What is Prequalification?

A mortgage prequalification means that you provide a lender with some general financial information. The goal is to help provide you an estimate of how much you can afford when you’re buying a home.

The information you provide for prequalification is usually self-reported. Most of the time, it doesn’t include verification of your credit report. You can get a prequalification without dinging your credit report with a hard pull.

When you’re prequalified, you receive a letter that will show you can afford to buy. You can show it to your agent and sellers, and it may be helpful in the process, but not as much as a preapproval.

What is Preapproval?

A preapproval carries a lot more weight in the buying process. When you’re preapproved, you’ve submitted your financial history and the lender has verified the information you provide by checking your credit report, your employment and income, and your assets and debts.

For a preapproval, you’ll have to submit information like your total monthly expenses, W2s, pay stubs, and if you already own property, your mortgage statement.

Once you submit all the necessary documents, you receive a preapproval letter. This letter will outline the amount you’re approved for, and the type of mortgage a lender will give you as well as the terms.

A preapproval serves as an offer by the lender to you, and there is usually an expiration of the offer. For example, you might have 90 days to buy a home based on your preapproval.

How Do You Get a Mortgage Preapproval?

The following are steps to follow to get a mortgage preapproval:

• Get your own credit score. The higher your score, not only the more likely you are to be approved but the better the terms you’re likely to be offered. With most lenders, if you have at least a 740 credit score, you’re likely to qualify for the most favorable terms.
• When you check your credit score, go over your report and make sure there aren’t errors that need to be addressed.
• Calculate your debt-to-income ratio. To buy a home, you should aim to have a ratio of 36% or less. Your DTI is a ratio of your gross monthly income that goes toward paying debt.
• Gather the documents you’re likely to need to submit, such as your tax forms, employment details, and banking and account information. If you’re self-employed anticipate showing at least two years of income tax returns.

Finally, when you’re applying for preapprovals, shop around and talk to multiple lenders. This will help you find the lender that’s right for you so you increase your chances of getting approved, but also so that you can save money on interest with better terms. 

Bob Abner is a highly respected, top-producing, full time, Realtor for over 30 years and is an expert in the Northern Kentucky real estate market. Give Bob a call at 859-760-1660 Email Bob at BAbner@huff.com Visit Bob's Website: http://www.bobabner.com

How to Prepare Your Roof For Winter

As cold winter months approach for many places in the United States, many homeowners are thinking about all the projects they need to do to prepare their homes. Your roof takes the brunt of the winter ice and snow, and you’ll want to make sure that it is in good condition and free from leaks before the cold wet months approach. We are going to cover a few easy things you can do to make sure your roof is prepared for winter.

Remove Debris From Roof & Gutters

According to Redwood Roofing Repair, one easy thing homeowners can do is to remove debris from their roof. When branches or leaves from trees fall on your roof it can cause water to pool as leaves will often clog drains for flat roofs and prevent your gutters from draining. As water sits on your roof surface it increases the chances of a leak occurring. Also, on membrane roofs sharp branches can even puncture the material. If you have a flat membrane roof you might want to check and make sure fallen branches haven’t made any holes in the roof.

Check the Flashing Around The Chimney

One major issues seen by Pioneer Roofing is leaks occurring around chimneys. Your chimney can act like a dam that traps snow and ice and causes it to build up rather than slide off the roof. If the flashing around the chimney isn’t secured and sealed properly this snow and ice can run down the side of the chimney into your home. If necessary you might want to reseal around chimney flashing with silicone caulking. If the flashing isn’t laying flat against the chimney you might need to drill into the chimney and secure the flashing with fasteners.

Inspect Vents & Pipe Flashings

On older roofs vents might be made of plastic which can crack or break over time. It’s a good time to check your vents to make sure they aren’t cracked or damaged. If you do see any breaks you should remove the vent and replace it with a new aluminum vent. These can be bought at any roofing supply store or Home Depot and Lowes.

For pipe flashings, make sure the flashing fits snugly around the pipe. If you see any kind of gap or break you can probably fill it with silicone caulking. If the break is big enough, you might need to remove the flashing and replace it. Again, these can be purchased at any home repair store.

Add Heat Cables to Problem Areas

We mentioned how snow and ice build-up can cause roofs to leak. A roof is meant to direct water off of your home but it isn’t meant to be 100% waterproof. Ice and snow build-up can cause water to flow underneath shingles and other roofing material causing leaks. If you have an area of your roof that has a problem with ice building, you might want to add heat cables.

Heat cables are thin cables that you can run along the eaves and valleys of your roof, along with anywhere else that ice builds. These cables keep the temperature warm enough to prevent ice from building up on top of your roof. Installation is fairly simple, but you may want to hire a roofing contractor to install them.

These are a few easy things you can do to make sure your home is protected this winter. If you have already had leaks you might want to call a roofing professional to fix leaks before cold wet months cause further damage to your home.

Bob Abner is a highly respected, top-producing, full time, Realtor for over 30 years and is an expert in the Northern Kentucky real estate market. Give Bob a call at 859-760-1660 Email Bob at BAbner@huff.com Visit Bob's Website: http://www.bobabner.com

Using Income from Tips to Help Qualify

For those in the service industry, getting additional income from tips for many accounts for quite a bit of an employee’s take-home pay. In fact, it’s not unusual for someone working in a restaurant to get the majority of the income from tips as the employer pays a minimum wage. Tip income is a big deal. But when it comes to getting approved for a home loan, while tip income can be rather significant, borrowers need to be aware of how that tip income can be used to help qualify.

First, there needs to be a history of receiving it. Borrowers must be able to show receiving income over the previous two years. In addition, this income must also be consistent. Providing a two-year history helps lenders make the determination the income will continue into the future. But how the borrower treats the income is significant. Tips can come in the form of a few dollars left at the table or nightstand or included on the credit card slip. What the employee does next is critical.

Tip income must be logged. When an employer sends out W2 forms, the wages shown will typically be the minimum wage paid. Employers don’t keep track of an employee’s tips, it’s up to the borrower to track it. There can be a manual log kept that keeps track of how much tip income was received and when. In addition, the tip income deposits must be verified. 

This is accomplished by reviewing past bank statements. For instance, an employee can collect tips on a daily basis but deposit the tip income weekly. These deposits must show up on these past bank accounts.

Further, the tip income must be reported to the IRS for the past two years. The income reported is the income lenders will use when qualifying, regardless of how much tip income has actually been received. For some, all the tip income might not make it to any bank account at all but instead spent on everyday expenses. Here again, while the tip income is in fact received, there is no third-party record of having received it. Unless the income is deposited on a regular, consistent basis, it might not matter how much tip income is being received if there is no third-party verification.

In general, lenders treat tip income just like any other in the way it can be verified and used for qualification. Lenders want to see a two-year history of employment while showing the income is likely to continue. The income needs to come from a qualified source. The income must be received at relatively regular intervals.

If this sounds like you or someone you know and buying a home is definitely on the radar screen, it’s important to know ahead of time how to use this additional income. Lenders, employers, and employees all know it’s there and available, but how it’s documented is important. If you don’t really need tip income to help qualify, then there’s no issue. But if tip income must be used, it’s crucial to properly document the receipt and keep an eye on reporting requirements.

Bob Abner is a highly respected, top-producing, full time, Realtor for over 30 years and is an expert in the Northern Kentucky real estate market. Give Bob a call at 859-760-1660 Email Bob at BAbner@huff.com Visit Bob's Website: http://www.bobabner.com

Should You Fix Up Your House Before Listing Or Sell It As A Fixer Upper?

If you're thinking of selling your home, this is probably a question you've been asking yourself - and your real estate agent. There is no hard and fast answer; the route you go will depend on numerous factors, the most important of which are: the condition of your home, the strength of the market in your area, and the potential profit to be made both with and without updates. These tips will help you decide whether to sell now or later.

Consider your buyer

The words "fixer-upper" might actually be a selling point for some buyers who perceive they're getting a deal, who are specifically looking for something they can put their stamp on, or who just can't afford to buy something turnkey. The marketing your agent does is key here so you don't end up with nothing but unacceptable offers.

"In any marketing communications surrounding a fixer-upper, it's important to remain focused on value," said ExtraSpace. "Prospective homebuyers know that a fixer-upper will sell at a lower price point than newer or more modern homes on the market. But that doesn't mean you need to accept a lowball offer. Instead, emphasize the home's investment potential by reminding buyers of the future sale opportunities after the home has been remodeled."

If your home needs A LOT of work and you can't, or don't want to, put the time, money, and effort into getting it in top condition, targeting investors could get it sold quickly. "A few years ago, a past client called to say her next-door neighbors needed to immediately sell their home. To say it needed work was an understatement," said Sacramento-based real estate broker Elizabeth Weintraub on The Balance. "The home appeared inhabitable. It had holes in the walls all the way to the exterior and urine-soaked wood floors; most of the electrical didn't work and the bathroom tub had fallen through the joists. All the faucets leaked and, in one bedroom, I found a pile of dead rats swept into a pile in the center of the floor. This was not a home that could be easily fixed up. Not even a coat of paint would have helped sell this place. We priced it low enough that it attracted multiple offers and sold with zero days on market. Only contractors and flippers made offers on this home."

Since flipping is more popular than ever, a home that needs work - especially certain kinds of work - may be attractive enough to investors that you don't have to do any work at all. "A good rule of thumb: If your home needs kitchen or bath remodels, a new roof, or foundation repairs, there's an 80%-plus chance your buyer is going to be an investor," Bruce Ailion, a broker and REALTOR® in Atlanta, said on Realtor.com.

Get an honest assessment - and be able to hear it

If you've lived in your home for quite some time and/or haven't kept up with updates and repairs, your real estate agent's assessment of its condition and the recommendations he or she makes to get it market-ready may be eye-opening. They may also make you angry. Try to listen and keep an open mind, even if you feel offended. In the end, you share the same goal, which is to get your home sold for the best possible price.

Be realistic on pricing

"Finding out your home's value isn't as simple as subtracting the cost of repairs from your home. You also need to factor in ‘aggravation costs,' said Ailion. "In other words, turnkey homes often sell at a premium to traditional buyers because they don't have to do any work. If your home needs some sprucing up, you're likely going to have to incentivize buyers to dig in and get their hands dirty."

It may be that fixing your home up makes the most sense because of the financial upside. In presenting you with comparables, your real estate agent should be able to show you other properties in your area in varying conditions (depending on the number of active listings or recently sold homes near you). This will help inform the pricing for your home and also give you some idea of how much you'd have to put into it to get top dollar. Now all you have to do is come up with the money!

Choose your updates wisely

A $30,000 kitchen renovation may not be in the budget and may not give you the return on investment you're looking for, but there are smaller updates you can do to your kitchen to make it look fresh (and, you can use the same principles in other important areas, like bathrooms). Better Homes and Gardens has a great list of updates you can make for under $2,000, including hanging a pendant that "illuminates the sink area" and swapping out a tired sink for a "farmhouse sink (that) adds character to the space." Also, think about painting cabinets and installing new hardware, and, if you're up to the task, adding an eye-catching backsplash.

Make necessary repairs

Investors aren't expecting perfection, and their offers will be based on the condition of your home and the potential profit they can make once it's fixed up. Non-investor types looking for a deal may not necessarily be scared off by a few cosmetic issues, but major repairs that are needed are another story. If you're looking for the smartest place to put your pre-sale renovation dollars, this may be it.

"It might not be glamorous, but buyers are looking at big-ticket items like the age and condition of the roof, air conditioning and heating systems, water heater, electrical panel and pipes," said Inman. "If any of these components are on their last leg, you might seriously need to consider replacing them as these items could factor into the kind of financing the buyer is able to obtain as well as insurability of the property."

Bob Abner is a highly respected, top-producing, full time, Realtor for over 30 years and is an expert in the Northern Kentucky real estate market. Give Bob a call at 859-760-1660 Email Bob at BAbner@huff.com Visit Bob's Website: http://www.bobabner.com

Buyers: Reset Your “Must-Haves”

Homebuyers who had their real estate plans interrupted by the pandemic may benefit from a reset before they plunge into the current real estate market.

• Buyers whose real-estate buying efforts stalled in March 2020 may benefit from reviewing their must-have list and how they created it.

• Buyers whose pandemic experience triggered a work-from-home must-have list may benefit from adopting a long-term view of how they need a home to function for themselves and their family.

How much have your experiences during the pandemic changed your lists of real estate must-haves, don’t-wants, and ready-to-splurge-ons?

Real estate buyers want a new home—an invigorating space to spread out in, an affordable celebration of what they’ve achieved, a comfortable shelter to share, somewhere to play, a place to belong.

Over the last few months, a lot has changed. The old “normal” has been replaced in ways that are only now becoming apparent.

Pre-covid, “open concept”—which is commonly created by tearing down interior walls—was a sought-after lifestyle design for move-in-ready buyers and a must-have end result for fixer-upper purchasers.

Opening lines of sight and combining three, four, or more functional rooms—kitchen, dining room, living room, rec room, hobby room, study…—creates an enviable “airy” living environment. Parents can see what children are up to; the family cook is part of the action instead of being shackled to the stove; entertaining is enhanced for guests who can scatter across welcoming spaces without missing out on anything.

After more than nine months of families isolating together in open-concept spaces 24-7, this unstructured environment hasn’t provided the perfect lifestyle bonus that all homeowners expected. While facilitating childcare, partying, family interaction, and making cooking a participation sport, the open concept means less privacy, more noise, more distraction, more visible mess, more heating/cooling cost, and more cleaning. There’s no right or wrong here, just personal preference. What’s yours?

• What makes looking after pre-school and small children easier may not work as well when your children are a few years older or in high school. For instance, teens value personal space and privacy so you may be sitting in the open space alone.

• Working and schooling from home requires privacy and quiet for concentration. High ceilings, hardwood floors, and hard tile surfaces can become noisy nightmares. Balancing hard and soft surfaces with acoustical panels is an often-overlooked solution.

• Cost can also be a factor. When you are only using one corner of your high-ceiling, open space, you will still have to heat or cool the entire volume 24-7.

Buyers, stop and think why you want what you want and what you’ll need over the next two or three years—that is, during and after the pandemic:

1. Where did your “wants” come from?

Do many of your must-haves reflect pre-covid working-away-from-home lifestyles or are they pandemic reactions to being in the same space with your family almost 24/7? What about your post-pandemic needs? Do you aim to continue working from home and/or home-schooling your children?

2. What’s typical?

Talk to your real estate professional about the age, construction quality, common defects, and dated-design features of homes in your preferred area and price range. What will you get—features and building quality—for your money and what might be beyond your price range or not readily available in those neighborhoods?

Know in advance what to expect, so you recognize realistic compromises and a deal you can enjoy living with.

3. How can you stretch buying dollars?

In view of your must-haves, where does the value lie and how can you stretch your buying dollars? Will you buy a move-in-ready home, pay for extensive renovations, or tackle do-it-yourself make-overs of specific areas? Covid-related shortages of construction materials and workers in your area may make renovation an expensive, frustrating, and time-consuming option.

If renovation is part of your plan, don’t jump into a home purchase without researching costs, wait-times for professional contractors, and completion times. Understand what you’re getting into.

4. What does “feels like home” mean to you?

“I’ll know it when I see it” and “it must feel like home” are common buyer strategies that don’t always serve buyers well. Change paint color and furnishings and any room takes on a completely different feel. There may be more value in a house that is poorly decorated but that has “good bones” than a house cleverly staged to camouflage flaws and shortcomings, if not outright problems.

• Invest time looking in magazines, at TV series, and online at before and after room make-overs to learn what it is about a room that designers see before they set to work transforming.

• Measure your current rooms and larger furniture pieces to establish an understanding of how much space you really need to live comfortably.

5. Do you understand that What You Don’t Know About Real Estate Could Cost You?

It’s what you don’t know about real estate that could cost you when buying or selling. What you don’t know about real estate, real estate professionals do. Learn about significant knowledge gaps for buyers and sellers, and how professionals fill those gaps—when asked…Read on

As always, a prepared buyer/seller is a confident buyer/seller!

Bob Abner is a highly respected, top-producing, full time, Realtor for over 30 years and is an expert in the Northern Kentucky real estate market. Give Bob a call at 859-760-1660 Email Bob at BAbner@huff.com Visit Bob's Website: http://www.bobabner.com