Lynn Dasteel

Sell Faster When You Understand The Buyers Mindset

2008-07-22T16:28:00Z

When most sellers list their home for sale the first thing they think about is how much will I get and that is usually followed by how soon will I get the money. It's certainly understandable that those two concerns are, most often, top of mind. After all, you're likely selling your home to buy another one or invest the money in something else.

But, if as a seller, you can get into the buyer's mindset, the sale of your home can come faster and for more money.

Understanding the way buyers think involves seeing things not from your perspective but from your potential buyer's mindset. It can sound easy but actually it's often harder to do than most sellers think. The psychology of buying is driven by emotional experiences, money, and timing. With that in mind, sellers can help create optimal circumstances that literally help walk the buyer through the process and completion of the sale of your home.

It starts with a feeling. When you meet someone for the first time, you form a first impression based on a feeling. That's exactly what happens when buyers set foot into your home. Work with an experienced agent to learn exactly what kind of impression your home is giving off. If it's a small home, make sure it's not overfilled and cluttered.

Pick up all the loose clutter that's floating around. Throw out old magazines. People like to see things that are streamlined or clean or fresh looking. There's nothing worse than walking into a place and seeing a stack of magazines all over the place or an unmade bed.

Go the extra step and take care of items that might have been overlooked for quite some time. Steam clean the carpets, the upholstery, the furniture, if that's what's needed. Have the windows cleaned, light fixtures cleaned. Make it feel clean when you walk in.

Go back to basics. You may love your turquoise carpet but do you really think buyers will? Getting inside the buyers mind will help you answer these questions. You can also pick up home décor magazines and see what appeals to the masses. You don't have to change everything in your home, but going back to basics in a few areas will help buyers see how your home can become their home.

As soon as buyers see a really loud red, orange or lemon-green color they automatically think about re-doing. That, of course, means the buyers are already beginning to calculate the amount of money they need to take off of the sale price in order to get the home in the condition they would like it.

If instead you stick with neutral colors such as painting the walls off-white, light beige or Navajo white, you have a better chance in preserving the sale price.

Repair anything that looks torn, worn or broken If you walked into a retail store and saw a garment that you liked but it was torn or missing buttons, chances are you'd search for another one or ask for a discount if that were the only one of its kind.

That's what buyers will do with your home when they spot torn screens, garage doors that don't open, or broken light fixtures that are hanging out of the wall. Buyers, if at first they don't get completely turned off and walk away from the sale, will first begin to think that there is more damage to the home than what they're able to see and then they start to calculate the cost of repairing those damages. But buyers often exaggerate the amount of money needed to fix the repairs.

In today's market people are looking desperately to find out what's wrong with a home so that they can lower the price.

In the buyers' minds, they come up with some kind of incredible price to fix repairs. In their mind, they go way overboard and eventually it affects the bottom line price for the seller.

Don't miss an opportunity to get the word out about your home being listed for sale. It only makes sense to let your neighbors know. By doing this your neighbors can sometimes become great facilitators and supporters of the sale.

Most people are visual buyers. If the home doesn't look clean, spotless, and repaired then the buyer thinks what's behind the walls, how much more money do I have to put into this home.

Remember understanding the psychology of the buyer's mindset can help you sell faster and for the price you really want.

Written by Phoebe Chongchua

Life Expectancy of Home Components

2008-07-20T19:02:00Z

One way to prepare for the costs of owning a home beyond the mortgage payment, insurance and taxes, is to know the expected life expectancy of your home's components.

Such knowledge doesn't supersede the use of a home inspector when buying a home, new or old, but it can help you develop a savings plan so you are prepared for the inevitable.

Sooner or later you'll have to repair or replace many of your home's parts -- inside and out.

Knowledge of components' life expectancies is what homeowner associations use, in part, to build a reserve fund designed to spread, over time, the cost of the inevitable.

When the roof goes, the appliances conk out, or the paint begins to fade, it's a lot easier to come up with the cash if you've already got some socked away for just this kind of rainy day.

Last year, the National Association of Home Builders, along with the Bank of America developed the "NAHB/BoA Home Equity Study of Life Expectancy of Home Components" to help you take the guess work out of preparing for the worst.

The report suggests you use the timelines as a general guideline. Local weather conditions, use habits, regular maintenance -- or the lack of it -- can all affect the life expectancy of many components.

Personal tastes for contemporary upgrades, remodeling needs and other factors may also dictate replacing parts before their useful life time is up.

In any event based on a comprehensive telephone survey of manufacturers, trade associations and researchers NAHB developed information about the longevity of housing components.

From the foundation to the rooftop, here's a quick look at how long, on a national average, some of the most common home components are expected to last.

Foundations. Poured concrete block footings and slab foundations should last a lifetime, 80 to 100 years or more provided they were quality built. The foundation termite proofing, 12 years, provided the chemical barriers remain intact.

Properly installed waterproofing with bituminous coating should last 10 years.

Flooring. Natural wood flooring has a life expectancy of 100 years or more with proper care. Marble, slate, and granite, likewise, but again, only with proper maintenance. Vinyl floors wear out in 50 years, linoleum about 25 years, and carpet between 8 and 10 years, tops.

Electrical system. In the electrical system, copper plated wiring, copper clad aluminum, and bare copper wiring are expected to last a lifetime, whereas electrical accessories and lighting controls are expected to fail not much longer than 10 years.

Outside materials. Outside materials typically last a lifetime. Brick, vinyl, engineered wood, stone (both natural and manufactured), and fiber cement typically last as long the house exists. Exterior wood shutters get 20 years, well maintained gutters, 50 if they are copper, 20 years if they are aluminum. Copper downspouts last longest, 100 years or more, while aluminum ones give out after 30 years.

Doors. Exterior fiberglass, steel and wood doors will last as long as the house exists, while vinyl and screen doors have a life expectancy of 20 and 40 years, respectively. Closet doors are expected to last a lifetime, and French doors have an average life of 30 to 50 years.

Windows. Wooden windows last longer than aluminum ones -- 30 years compared to only 15 or 20.

HVAC systems. Heating, ventilation, and air conditioning systems require a religious regimen of maintenance. Still, most components give up within 25 years. Furnaces break down in 15 to 20 years, heat pumps 16 years, and air conditioning units 10 to 15 years. Tankless water heaters can go for 20 years or more, but electric or gas water heaters only 10 years. Thermostats have a 35-year lifespan but are often replaced for more efficient models.

Appliances. Appliances' life expectancies depend largely on how much they are used, but they are typically replaced long before they are done. One must keep up with the Joneses. Among major appliances, gas ranges live15 years, dryers and refrigerators die at 13, compactors, dishwashers and microwave ovens might last until they are 9 years.

Roofing. The life of a roof is largely dependant upon local weather conditions, proper building and design, material quality, and adequate maintenance. Slate, copper, and clay/concrete roofs have the longest life expectancy, 50 years or more. Wood shake roofs, go for 30 years, fiber cement shingles last 25 years, asphalt shingles give up at 20.

Written by Broderick Perkins

Open House in Del Cerro on Sunday

2008-07-19T17:29:00Z

Del Cerro, San Diego - We invite everyone to visit our open house at 5956 Adobe Falls Road on July 20 from 1:00 PM to 4:00 PM.

Property information

Provide and Honest, Complete Mortgage Application

2008-07-18T02:45:00Z

Mortgage fraud is forcing lenders to scrutinize the paperwork and today's home loan applicant must be better prepared to run the mortgage application gauntlet.

30 to 70 percent of early mortgage payment defaults are likely linked to borrower misrepresentations on the mortgage loan application, according to the Federal Bureau of Investigation's"2006 Mortgage Fraud Report" released last year.

Lenders already tightening underwriting standards by demanding higher credit scores and fewer credit report blemishes, are also going over statements on applications with a fine tooth comb.

"While it would be naïve to assume that we could narrow the cause of every foreclosure down to one single factor, this FBI information clearly indicates that borrower fraud plays a significant role in the record number of defaults and foreclosures we've been seeing over the past couple of years," says Jay Meadows, chief executive officer for Fort Worth, TX-based Rapid Reporting, a fraud prevention company serving the mortgage industry.

Lying on a mortgage application is against the law and today, given the greater level of scrutiny, the practice will get your home loan request rejected.

Getting past the eagle eyes of mortgage underwriters means being prepared, complete and forthright. A well-prepared application also speeds the approval process.

Get your credit report. Examine your credit report for black marks that could stall your application or get it rejected. Use it to determine if you've been the victim of identity theft, a condition that could really stymie the application process.

The only federally-regulated provision for your free credit report is available from AnnualCreditReport.com. You are entitled to one free credit report each year from each of the three major credit reporting agencies -- Experian, Equifax and TransUnion -- which means you can get three different credit reports each year at no cost.

Know the true cost of housing. Learn what you can afford by asking lenders and mortgage brokers how they determine your affordability based on a ratio between your income and your expenses. However, you, not the lender, must decide how much you can truly afford. Shop around for loan programs tailored to your needs. Remember, the cost of housing goes beyond the principal and interest of your mortgage payment and includes homeowners insurance, homeowner association dues, property taxes, maintenance, repairs and other costs.

Sock away cash. Savings are crucial, especially in an emergency, and lenders also want to see that you haven't emptied your piggy bank to buy a home. You need to show your ability to pay your property taxes and homeowners insurance premiums for several months after your purchase.

Put all your docs in a row. When it's time to complete your mortgage application, have verifying documents ready to back up your answers. The mortgage application will ask for information about your job position, job tenure, employment stability, income, your assets and your liabilities. Have pay stubs, tax returns, rental agreements, divorce decrees, proof of insurance and any other documentation necessary to back up claims. The sooner documents are available, the faster your application process.

Get help. Schlep all those documents down to the mortgage broker's or lender's office and let the broker or loan officer assist you with completing the application, correctly, the first time. Also seek help from a housing agency, mortgage counselor, financial planner, social service agency or other knowledgeable person.

Be thorough. Assistance will help assure that you fully complete the application, leaving no blank spaces to question. If a question doesn't apply put "Not Applicable" or "N/A" in the space instead of leaving it blank.

Focus. Don't "double dip." Online applications make it easy to fire off several quick applications, but each one could trigger a credit check. It may not harm your credit, but it could send the wrong signal to a wary lender.

Stay available. Don't complete your mortgage application and then leave town. Remain available to address any questions.

Be committed. Don't behave like a retail shopper who fills out a credit application in the checkout line. Seek a loan commitment before you go house shopping. Once you've found the home of your dreams, you'll be ready to sign on the dotted line for the mortgage.

Written by Broderick Perkins

What You Should Know About A Buyer's Market

2008-07-16T21:00:00Z

More home buyers have a better chance now than at any other time in nearly a half decade to negotiate a home-buying deal that costs less and comes with some concessions thrown in.

In many locations, buyers will find a glut of new homes, more motivated sellers, foreclosures, auctions, short sales and other market conditions that can make it a really good time to buy.

That doesn't mean throw caution to the wind.

Here's how to begin to navigate today's housing market, step-by-step, and make a good deal without getting taken.

Begin with making a personal "right-time-to-buy" decision. If you stretch financially beyond your means to go after lower-priced homes, foreclosures or short sales, you could be setting yourself up for failure. Today's housing market is littered with home owners who borrowed more than they could afford.

On the other hand, if you wait for prices to fall further you could miss out on a good deal. No one knows when the market hits bottom until it begins a sustained upward turn and you can look back and actually see bottom.

Buy now because it's the right thing to do for you, because you need a roof over your head, because it's more affordable than renting and because you plan on sticking with the home long enough to make the deal pay off. Buy because homeownership is integral to your budget, your lifestyle and your goals.

Get to know the many facets of home buying.

You've got a lot to learn, but obtaining a broad base of knowledge about the home-buying process is a relatively easy task, requiring only your time and attention. You should sit down with your REALTOR® for the most effective guidance.

Next, get to know your local market or the market where you plan to buy, because that's where your action is.

Accept national news for what it is, a broad brush stroke of current events. You want housing news and information that really hits home. Get your housing market information from credible publications and broadcasts covering your local market.

Part of your homework should include learning the boundaries of your buyer's market. Your market can be designated by a ZIP code, a small neighborhood, a greater community or some larger region.

Whether it's a new home, resale property, foreclosure or short sale, learn the true value of any property you are considering. Uneducated buyers tend to low-ball sellers and ask for too many concessions. That can alienate the seller, especially those less motivated with top-value homes. Likewise, knowledge helps prevent you from spending too much.

Your Realtor is schooled in the history of local market trends and statistics. See comparables, track sale prices in your shopping area, use the local newspaper, online listing and for sale sites and other sources, to keep tabs on asking prices. Also visit open houses.

Check your credit. Your credit report is free from AnnualCreditReport.com, the only federally regulated source. You may have to pay a nominal fee for your credit score (a numerical scoring of your creditworthiness) depending upon your state law and other factors. But see both your score and your report. You may need to request corrections or adjust your credit habits to generate the best report and score -- before you start home loan shopping.

Get your cash in the pipeline. Get approved -- in writing -- for a mortgage. Use your newly gained knowledge to shop around -- a lot -- for a home loan. Shop online and off. Shop mortgage brokers, loan officers, credit unions and other lenders. Shop where you bank, shop where you don't. The key is exhaustive comparison shopping to get the most money at the cheapest rate.

Written by Broderick Perkins

Home Selling Tips for a Springs Buyer's Market

2008-07-14T21:28:00Z

If you're planning to put your home on the market in time for spring, now's the time to get it ready to show.

But wait, it's still a buyer's market. What can you do to catch the buyer's eye and get them to make an offer?

It's going to take more than a fresh coat of paint and a new welcome mat. A buyer's market raises the stakes, and you'll find you need to do a lot more work on your home than you think, if you want to get the highest price possible.

You've heard that you should clean, paint and repair, but that may not be enough. If your home is cluttered and in disrepair, buyers won't pay top dollar.

Knowing how buyers reason should help you pick which updates are most likely to help you sell your home.

Let's take the most basic selling suggestions and explore why these are such important mantras.

Boost your curb appeal. A clean house with cosmetic upgrades like painting and planting flowers can help form a fantastic first impression of your home.

Why? Eighty-four percent of homebuyers use the Internet to search for homes. One-third of homebuyers use the Internet first, before any other source. That means that people are making decisions whether or not to even drive by your home based on how it looks in video, virtual tours and photographs.

Make big fixes where you can. If your budget allows, invest in bigger improvements. Focus on "make or break" rooms like bathrooms and kitchens, because nothing says "uninviting" like an unattractive cooking space.

Why? The National Association of Realtors found in 2007 that a whopping 59 percent of homebuyers remodeled or made improvements to their homes within three months of purchase. Forty-seven percent made improvements to the kitchen, another 45 percent remodeled or improved a bathroom, and 43 percent remodeled a bedroom.

Keep in mind that the rate of new home building accelerated during the housing boom, and buyers are used to seeing as much as 25 percent of available inventory as new. That's your competition, and the closer you can get the buyer to new, the likelier you are to sell your home.

Be upfront with disclosures. Don't wait for the buyer to get a home inspection, or the buyer could find a reason to wiggle out of the deal. Get a preliminary inspection yourself, so you can improve the condition of your home before a buyer sees it. Keep receipts of recent improvements and provide estimates on optional upgrades. These actions will reinforce your trustworthiness as a seller and help overcome objections from the buyer.

With new homes, buyers have some guarantees that systems will be fixed by the builder if they fail, but they have no such guaranteed with an existing home. Providing a home warranty will go a long way in assuring the buyer.

Be realistic. Your price should be competitive with nearby comparable homes with similar features and approximate condition that have sold or are on the market within the last three months. You may find that homes are taking longer to sell and that buyers are more selective. Your buyer may be using the Internet to find home valuation sites, so search those sites yourself and be ready to defend your price with proper comparables from your Realtor.

Remember, your home is competing with new construction and with the buyer's idea of what a home should look like. Over 33 percent of home buyers prefer a home less than 10 years old, yet the typical home purchased by all buyers was 12 years of age. That suggests that condition is very important. If you can ease your buyer's fears about the condition of your home, you're much more likely to strike a deal.

Written by Blanche Evans

Investor Report: Section 1031

2008-07-08T14:51:00Z

Here's some great news for the thousands of real estate investors and brokers who use "Section 1031" (ten thirty-one) tax-deferred real exchanges every year: Congress has backed off its latest plan to narrow the definition of "like kind" for real estate swaps.

That's important because under current tax law, real estate investors have broad flexibility in choosing properties and structuring exchanges. For example, they can exchange a rental house for farmland, an apartment building for a commercial shopping strip. They can even exchange office buildings for mineral rights.

Given the tight statutory timetables to choose qualified properties for exchanges, that flexibility can be crucial.

Other types of investment assets, by contrast, get much stricter treatment under the tax code -- and that difference in treatment opens the door to periodic attempts by green-eyeshade tax reformers on Capitol Hill to raise federal revenues by cutting down the number of eligible real estate exchanges.

If you could only swap a rental condo for another rental condo, cornfields for cornfields or commercial buildings for commercial buildings, there'd be a lot fewer exchanges every year -- and probably a lot more IRS audits of taxpayers to make sure the properties swapped met all the "like kind" requirements.

So when tax reformers tucked away a tiny, technical amendment deep inside the massive federal farm bill pending in Congress, they apparently hoped they could sneak it through with nobody looking. But instead, alarm bells went off among real estate lobbyists who get paid to read through thousand-page bills like the farm legislation to make sure there are no unpleasant surprises lurking for real estate.

That's precisely what they found. The tax reformers had inserted a provision that would have only affected only certain agricultural property exchanges by narrowing the window for what constitutes "like kind."

But any restriction on "like kind" for real estate would be the proverbial "camel's nose in the tent." It would open the door to still further revenue-driven restrictions that could seriously limit the utility of tax-deferred exchanges for all real estate owners.

Linda Goold, chief tax lobbyist for the National Association of Realtors and a leader in the effort to get the 1031 amendment dropped from the final legislation approved by Congress, confirmed the successful deletion. In comments to Realty Times earlier this week, she said:

"Yes, we killed that obnoxious farm bill 1031 provision. (And) it felt good, I might add."

Real estate investors nationwide should share that sentiment.

Written by Kenneth R. Harney

Open House in Del Cerro on Sunday

2008-07-05T22:21:00Z

Del Cerro, San Diego - We invite everyone to visit our open house at 5956 Adobe Falls Road on July 6 from 1:00 PM to 4:00 PM.

Property information

Open House in Del Cerro on Sunday

2008-06-29T05:04:00Z

Del Cerro, San Diego - We invite everyone to visit our open house at 5956 Adobe Falls Road on June 29 from 1:00 PM to 4:00 PM.

Property information

How to sell your House for Top Dollar

2008-06-25T21:44:00Z

If you’re going to sell your house in the next six months, what you do right now could mean a difference of thousands of dollars – especially if you’re buying another home.

I can help you sell your house for top dollar in less than 60 days guaranteed, and we’d like to send you a free copy of our book for home sellers, How to Sell Your House for Top Dollar – FAST! This book will tell you everything you need to know to do this.

If you email me your name and address I will send this booklet right out to you!

Just tell us a little about the kind of homes you’re most interested in, the price range and the areas you’re considering, and we’ll get you all the information you need.

If you’d like to contact us directly, you can call Lynn Dasteel at 619-287-7777 or visit my website at: www.lynndasteel.com

Open House in Del Cerro on Saturday

2008-06-20T04:06:00Z

Del Cerro, San Diego - We invite everyone to visit our open house at 5956 Adobe Falls Road on June 21 from 1:00 PM to 4:00 PM.

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What is Lease to Own?

2008-06-16T04:04:00Z

Lease-to-own contracts are generally offered on homes that are difficult to sell or to buyers who cannot obtain financing. Although the term "lease-to-own" sounds self-explanatory, it can actually be a complex legal process. For that reason, general guidelines are given here but it's always best to discuss a lease-to-own contract with a real estate professional to determine if this is the right option for you.

When a buyer and seller decide on a lease-to-own purchase, a contract is drawn up between the two parties. In this contract, the buyer agrees to pay a certain price for the property, usually market value, and the buyer agrees to purchase the property within a certain amount of time. Lease-to-own contracts are commonly from six months to three years in length.

Once the selling price and the length of the lease-to-own contract are decided, other factors are negotiated. A rental amount is determined, and some portion of that rental amount will go toward the purchase price. Unlike a standard rental or lease agreement, though, a lease-to-own buyer is generally responsible for everything an owner would be responsible for. This includes taxes and maintenance on the property.

The lease-to-own buyer also pays the seller an amount of money up front; the exact amount is negotiated between the two parties. This is often called "option money" and it is usually non-refundable if the buyer for some reason doesn't fulfill the lease-to-own contract.

Open House in Del Cerro on Sunday

2008-05-29T21:46:00Z

Del Cerro, San Diego - We invite everyone to visit our open house at 5956 Adobe Falls Road on June 1 from 1:00 AM to 4:00 PM.

Property information

Sale Pending for 4356 Revillo Dr

2008-05-26T17:12:00Z

This absolutely charming Cape Cod home in the much sought after community of Rolando is bright and cheerful! Right out of one of Norman Rockwell's paintings of simpler times, this home has been well-maintained and updated. Sellers will entertain offers between $437,000-$479,000.

Rolando Village is a gem of a community and this adorable and beautifully maintained home bears a striking resemblence to vacation homes along the eastern seaboard! This very special home features an open floorplan with plenty of room to socialize, hardwood floors and fine berber carpet, centrally located kitchen that is open to a formal dining room area, and features a large dramatic skylight and breakfast bar, private master bedroom with its own free-standing fireplace, completely updated large master bath, an optional fourth bedroom/den, french doors leading to a private brick patio, plus a huge family room, and so much more! The front yard is completely fenced with a traditional white picket fence. The brick entry and shutters welcome you to this very warm and inviting home. The front yard features a gorgeous birch tree, mature avocado tree producing delicious avocados, and fruit bearing citrus trees. The lush backyard is equally well landscaped where you have a sense of being in a private park! The attractive, handcrafted play equipment adds a very special touch. The home also has a large dog run, newer central air and heat system, and RV parking with its own extra wide gate!

Benefits of a Great Real Estate Agent

2008-05-13T16:20:00Z

If you are buying or selling a home, seeking the professional assistance of a knowledgeable real estate agent will save you a lot of time and money.

Prepare Your Home to Sell - If you are ready to sell your home, your real estate agent can help you decide on the price and terms you should ask so that your home sells quickly and with the least amount of hassle. Your agent may also recommend repairs or aesthetic work that will improve the appeal of your property.

Find a Buyer - A great real estate agent knows how to advertise your home and find buyers.

Complete the Sale - Once you start receiving offers, your real estate agent will help you evaluate each proposal. Many homeowners can fall into the trap of allowing buyers to dictate the negotiation process, but a good real estate agent knows how to set you up for success by negotiating agreements that meet your predetermined needs. Finally, your real estate agent will walk you through the closing process and complete all of the required paperwork in a timely manner.

Find a Home - When you are ready to buy, a real estate agent can assess your financial situation, find the best lender for you and help you to locate homes that are within your price range, including some that may not be openly advertised. Your agent can also give you specific information about a community, such as the schools that are available and home resale value.

Close the Deal - When you are ready to make an offer on a home, your real estate agent will help you negotiate by giving you advice on what factors you should consider, including terms, inclusion or exclusion of repairs, and purchasing agreements. After this is complete, your agent will lead you through the closing process.

To schedule and interview to review the services that I provide as a Real Estate Agent please visit my website at: www.lynndasteel.com or give me a call at 619-287-7777 -Warm Regards: Lynn