Why should you use a realtor to buy a home - By Carrie Colby, Premier Properties

Buying a home for the first time can be overwhelming. While it may be tempting to avoid realtor fees and handle things on your own, having a professional by your side can make the process go more smoothly and provide valuable insight into what’s likely one of the biggest purchases of your life. 
 

There are numerous reasons to use a realtor to buy a home:

1) Access to every home that’s on the market via Multiple Listing Service (MLS) and all other sources, including ones that may not be listed publicly. Some agents have what are called “pocket“ listings that they know are going to come on the market soon or ones where the seller would be willing to sell but aren’t in a rush and don’t want the hassle of listing their home, giving you the inside track to the deals before they event hit the market.

2) The ability to combine your dream house checklist with your price range. A good real estate agent is one who understands your wants and needs without going over your price range. An ethical agent won’t steer you to homes that are out of your reach.

3) Knowledge of recent comps (comparables) — what similar properties have sold recently and for how much, which will help you once you are ready to make an offer. Your realtor has the ability and expertise to negotiate on your behalf.

4) You should hire a realtor that is knowledgeable about the area you are looking in. For instance, they should be knowledgeable about the schools, neighborhood and zoning issues.

5) Your realtor should also have a good working relationship with the other area real estate agents. There have been cases where I have contacted other agents about possible listings they might have coming on the market that might fit the needs of my buyers. Also when it comes the negotiating it is good for your realtor to be on good terms with the listing agent.

6) Your realtor should have the expertise to negotiate and close the deal. They should have a list of referrals for inspectors, mortgage brokers and even tradesman for repairs and renovations you might want to do at a later date. Your realtor must have the muscle to get a deal through the escrow or “under contract” period. They should have a good track record of getting buyers to the closing table and buying their dream home.

Buying a home is one of the most important decisions of your life. Don’t leave it up to someone who is not an expert in their field.

Carrie Colby is a Realtor® the Broker/Owner of Premier Properties in Raymond she can be reached at columnist@TheWindhamEagle.com.

Moving advice - By Lisa DiBiase, Landing Real Estate

If you're moving, you know how daunting it can be. But if you create a blueprint for your move, the transition from house to house will go more smoothly. Here are a few things you can do to prepare for a seamless transition. 

First question is: Can you do it alone or should you hire a licensed moving company for a full-service or partial-service move? This is one of the first and often most difficult questions soon-to-be moving households face. The answer depends on your lifestyle, household size, budget and amount of time you have to get everything accomplished. Get written quotes from at least three licensed moving companies so you know you’re getting the best deal based on your specific moving needs.

Take photos of each room in the new home before you arrive. Room by room write down where each item should go in your next home before packing, and keep piles of boxes together by room. List out the major items that must be assembled first. 

Be strategic about packing. If you have more than a month to ‘pick up and move’, start early. Whether it’s one room, one cabinet or a drawer at a time, weed through what may be years of accumulation. As you’re going through your belongings, divide everything into these helpful categories: Donate to charity, give to a friend, recycle, trash, pack now, or keep handy until moving day. You’ll be surprised at how much you can donate, recycle or give to friends.

Plan ahead. Consider daycare on moving day, or get help from a friend or family member. Provide lunch or some other appropriate thank you gesture if you do call in a favor. If that’s not an option, prioritize setting up safe places for your children to play in the new home on moving day so they’re not underfoot. This will help everyone remain happy and calm on that day.

Don’t forget the pets. Sometimes we forget that all the packing and constant in-and-out of visitors is stressful for animals. Consider checking your pet into a daycare facility, or setting up a time for a friend to take them or check them into pet daycare.

Keep track of small parts. Some items need to be broken down into pieces when moving, but do you know what to do with the small screws and washers that you end up with? Rather than tape them to the furniture, which can result in losing them, put everything in a baggie that is clearly marked and sealed. Keep all of the separate baggies together in one box on moving day and personally take it with you to your new home.

Take pictures of electronic hook-ups. Hooking up TVs, DVRs, home theater systems and computers can be challenging. Before unplugging any wires for the move, take a photo of the connections. This will create fewer headaches when setting up technology in the new home. Keep track of all loose wires using baggies or boxes that are clearly labeled, and personally carry these easy-to-lose items on moving day.

Packing cleaning products and toxins. Products such as detergents, pesticides and paint are heavy and unwieldy to pack. Dispose of as many as possible before the move in an eco-friendly way. Call your city’s waste disposal department for guidance on proper disposal. For items that must be transported, pack them in a small box within a larger box for protection against leaks. Don’t overstuff boxes with these items! 

Consider marking these boxes in a different color, and seal them extra tight. Keep them separate from the rest of the boxes, particularly if you have kids and pets.

Consider getting full value insurance protection. If using a professional mover, it may cost a few dollars extra, but it provides peace of mind and eliminates later annoyances. Investing in full value protection means any lost or damaged articles will be repaired or replaced, or a cash settlement will be made at current market value, regardless of age.

FSBO - Yes, No, Maybe! - Rick Yost, realtor

Few things about selling your home are less attractive than paying a real estate sales commission. Coughing up a percentage of the sales price just isn’t that appealing. The prospect of selling your house yourself isn’t too appealing either though, so what do you do? Should you go the For-Sale-By-Owner (FSBO) route?
 

First and foremost, if you decide to go the FSBO route be prepared to separate yourself emotionally from the transaction. You must be able to put all the memories and emotional baggage that the house holds to the side. This is a business transaction for the buyer and/or his broker. Your emotional ties to the property may make it difficult to negotiate effectively. Make sure you can set your emotional attachment to the house aside before beginning the FSBO process.

The next step is probably the most difficult one, and the one most FSBOs get wrong—pricing your home. Be very careful when pricing your home. Take the time and do the research. How much are houses in your area selling for on a square foot basis? Find similar houses for sale near you and compare your price. Study your market—is inventory tight? How quickly are house selling? Is the market trending up or down? Get as much info as possible before pricing your home.

You will have to now create your marketing plan. I suggest doing a brochure, one page will do, with all the pertinent facts that you think a buyer will need. Run some ads in the local paper, put up a sign, host some open houses are all strategies that you should employ. Most important to marketing your property will be your online presence. At a minimum, place an ad on one or all of the bigger FSBO websites (owners.com, buyowner.com, forsalebyowner.com). You should also consider setting up your own web page on the property and doing a YouTube video.

You should create a pre-screening questionnaire to use on potential buyers. Make sure they are truly willing and capable buyers. Feel free to ask them to prequalify before showing your house. Now interview some real estate attorneys to handle the actual legal aspects of the transaction.

Be dedicated to the process and be prepared to show your home multiple times. Be sure to keep your home in show worthy shape at all times. As you can see by now FSBOs are not for everyone, but they can work if you follow the right steps and are dedicated to the process.

If you are still reading and you are still considering a FSBO, let me share a few facts with you. The Wall Street Journal reported that Colby Sambrotto, founder and CEO of forsalebyowner.com, listed his New York home on forsalebyowner.com for six months before turning to a realtor to sell the home. The realtor not only sold the home, he got more than Mr. Sambrotto had listed the home for on his own FSBO web site. You can’t make this stuff up. 

According to NAR studies, 87 percent of FSBOs turn to a realtor after seven weeks. Realtors get an average of 16 percent more for homes than FSBOs do, only 9 out of 100 FSBOs successfully sell their house, and 40 percent of FSBOs that do sell, sell to a friend or family member. To bring this close to home, three of the most visible FSBOs in Windham (Pope Road, Windham Center Road and Moses Little Farm) all recently turned to a realtor.

A qualified realtor brings a few things to the table for those considering a FSBO. A realtor can market your home on the Multiple Listing Service, the surest way to market your home effectively. A realtor can reduce some of the risk involved with opening your house up to strangers. A realtor can bring knowledge and experience to the process. Most people will sell two houses in their life time, a realtor may do two transactions a day. A realtor understands what is necessary to legally protect a transaction. A realtor brings market knowledge to the pricing process. 

I always recommend using a qualified realtor for your real estate transactions, but FSBOs can and do work under the right circumstances. I know people that can pull it off, but it is not for everyone. Before you become part of that 87 percent that wasted seven weeks on a FSBO, make sure you are up to the task. If I haven’t dissuaded you, do the work, dedicate to the process and market heavily. Good luck.

Rick is a realtor, real estate author, real estate app creator, and long- time Windham resident. You can reach Rick with any of your real estate questions at columnist@TheWindhamEagle.com.

Benefits of owning your own home - by Carrie Colby

Being a homeowner gives you the security of knowing the roof over your head is yours. You get a feeling of contentment, satisfaction and fulfillment. It’s the wish of most, if not all, of us. Homeownership is the American Dream. 
 

Homeownership is the best investment. The value of your home appreciates, which means that if you decide to sell it, its price will be much higher than what you paid for it. Homes appreciate about 5 percent every year (of course some areas appreciate more than others. As we have seen in our area in the last few years, not all homes appreciate annually, but just like most investments if you hold onto them for the long term they will gain value. Try if you can to wait out the market and only sell when you will make a profit. 

In a way, homeownership is a form of forced savings because you’ll have to allot a certain amount of money for monthly payments or risk losing your home. 

You also need to set aside funds for future repairs or improvements. 

Homeownership gives a sense of permanence where your family can live and grow. 

Emotional security goes with this. It gives your family peace of mind knowing that you have a home to call your own. You will develop lifelong friendships and a sense of roots for you and your family. Your family will develop a sense of community. Homeowners become attached to neighbors, become interested and involved in events and work towards the betterment of the community to protect and preserve property. 

Additionally, owning a home eliminates landlord hassles. You will have no more worries with regard to a lease not being renewed and monthly rent being increased. Owning a home gives you the freedom to redecorate, remodel, make improvements, have pets, change the color or the décor of your home as you desire. You also get privacy unlike a rental in which the landlord has access to the place. 

Keeping up on maintenance is crucial to making sure your home does in fact appreciate. Routine upkeep ensures that your family stays safe while living in your house and it eliminates costly big ticket repairs. For an example, having your septic system pumped every couple of years will help you prevent costly back-ups and extends the life of the system. The same goes for your furnace. 

Painting your house every few years keeps your home from needing costly repairs and prevents leaks around windows and doors. 

Finally, you save on taxes. All the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income. 

You can borrow against your equity because the value of your home increases against what you owe on it. You may also have a better credit rating. Paying your mortgage on time contributes to an outstanding credit history. 

Owning a home is the biggest and best investment a person can ever make, so you have to manage that investment to the best of your ability. It requires extraordinary commitment of funds, time and attention. 

Carrie Colby is a broker and the owner of Premier Properties located at 1263 Roosevelt Trail in Raymond. She can be reached at columnist@TheWindhamEagle.com.

Thoughts on home buying - By Rick Yost

Most of us will buy at least one home in our lifetime, and there are a few things that you should consider before buying a home. By taking these thoughts into consideration before buying, you will save yourself the trouble of making the mistakes that many other home buyers have made. So do yourself a favor and remember: 
 

 Consider your exit strategy—I know it is usually the last thing you are thinking of when buying a home, but it shouldn’t be. Someday, you or your heirs are going to sell the home. When you do sell it, you are going to want to get the largest return possible. Remember—location, location, location and think about the next owner when doing any renovations.

 Reality TV isn’t real – It is great how people on television go out for a fun little day trip, look at three houses and find the house of their dreams. Sorry, but it doesn’t really work that way. Those shows edit hundreds of hours of footage to show the half hour that you see. Finding the house that you will call home takes time and work. So prepare for the home buying process, make the time and effort commitment necessary to make your search a success.

 Houses are not perfect—always get a housing inspection—all houses have problems. Many buyers are surprised at the length and detail of a general housing inspection. More importantly, they are floored by the problems that show up in them. It is important to remember, inspectors are professional doomsayers. That is why you want, but most problems they find will be inexpensive and easily fixed. Do not walk away from your dream house because of a leaky faucet. Most repairs can be negotiated into the contract. Just be prepared to find out that the perfect house you found isn’t so perfect.

 You are not just buying a house—you are also buying a mortgage. This is probably the most important thing to keep in mind. Shop just as hard for your mortgage as you do for your house. This is not just a minor detail or expense. It is actually in most cases the most significant part of the purchase. Take advantage of low rates. They add buying power to your home search. Low interest rates are much more important than low housing prices. Most people make their buying decision based on what their monthly payment is going to be (can I afford it, or not) If interest rates go up 1 percent, housing prices need to drop 10 percent to keep your monthly mortgage payment the same. 

 Work with a real estate partner, not a real estate salesperson—your real estate agent shouldn’t try to sell you anything. Your agent should try to find the house of your dreams (in your price range, that is) and help you navigate the buying process. Find an agent that you are comfortable with and can communicate clearly with. A good agent will simplify the process and protect your rights from the start of the process until after the purchase. 

 If you keep these thoughts in mind when buying your home, you will be much happier in the long run. Isn’t it much nicer (and cheaper) to learn from the mistakes of others. 

Rick Yost is a real estate partner with Keller Williams Realty and an author of the book “Help! My house is upside down” a book about short sales.