Photos of your home in MLS are often your first and only chance to make a good impression and to pique a buyer’s interest enough for them to request a showing of your home. After price and location, the average buyer will select homes for viewing based on presentation and image in MLS photos.
Even today, I routinely see the poorest of poor photos of homes in MLS. I shake my head at the laughable, embarrassingly bad photos of homes and wonder why any homeowner would accept this. Are they aware what a poor first impression their home is giving out? Are they wondering why they’ve received so few showings? Are they questioning why their home has been on the market for eight months?
Every quick, top dollar home sale starts with strong, effective MLS photos. You’ve heard “image is everything” and in real estate, it is. Poor, unflattering or non-existent photos are a sure path to minimal showings, lengthy time on market and a drawn out sale.
Quality Every one of your MLS photos must showcase your home to its fullest and provide strong visual appeal to a buyer. Strong photos cut through the avalanche of available homes to connect with a buyer in capturing their attention and interest. This is your first tool you have against your competition. This could make the difference in a buyer viewing your home this weekend versus the 13 other homes on the market in your neighborhood.
The time of year, the time of the day and the weather all affect the image of your home in MLS photos. Photos taken during a summer dry spell show your home with brown, crispy grass and landscaping. Photos taken at the height of daylight (12pm) cast a severe, dark shadow over your home. Photos taken on an overcast day show your home as lifeless and dull. Ask your agent to take updated or improved photos if need be.
Quantity Orlando MLS allows a maximum of ten photos. Even today, I routinely see homes with just a couple photos - and far too many homes with only one photo. This is doing a disservice to the homeowner and a potential buyer. Insist that your agent post the maximum number of MLS photos allowed.
Nov 28, 2008
Nov 25, 2008
What Are Doc Stamps?
Doc stamps are excise taxes imposed by Florida law on the transfer of ownership or interest in a real estate transaction. Doc stamps are one of the most expensive closing cost items for both a buyer and a seller. Doc stamps are paid one time at the time of closing and can be seen on lines 1200 to 1206 of the closing statement (also known as “the HUD”).
The rates for doc stamps are as follows:
- Deed $0.70 per $100 of purchase price; customarily paid by seller
- Mortgage $0.35 per $100 of mortgage; customarily paid by buyer
- Intangible Tax $0.002 per $1 of mortgage; customarily paid by buyer
Example: $400,000 purchase price; $300,000 mortgage
- Deed $400,000 / $100 = 4,000 taxable increments x $0.70 = $2,800 customarily paid by seller
- Mortgage $300,000 / $100 = 3,000 taxable increments x $.035 = $1,050 customarily paid by buyer
- Intangible Tax $300,000 x $0.002 = $600 customarily paid by buyer
The rates for doc stamps are as follows:
- Deed $0.70 per $100 of purchase price; customarily paid by seller
- Mortgage $0.35 per $100 of mortgage; customarily paid by buyer
- Intangible Tax $0.002 per $1 of mortgage; customarily paid by buyer
Example: $400,000 purchase price; $300,000 mortgage
- Deed $400,000 / $100 = 4,000 taxable increments x $0.70 = $2,800 customarily paid by seller
- Mortgage $300,000 / $100 = 3,000 taxable increments x $.035 = $1,050 customarily paid by buyer
- Intangible Tax $300,000 x $0.002 = $600 customarily paid by buyer
Nov 21, 2008
They Want Our Chandelier, Too?
A showing wrapped up at your home today at noon. By early evening, you hear word from your agent that the buyer is very interested in your home and is planning a second showing with their agent for this weekend.
As the seller, you have informed your agent that your $6,000 chandelier in the foyer “does not convey” (is not included in the sale of the home). This is disclosed in the home’s MLS listing for any potential buyer and their agent to see.
The second showing is a hit and by late Mon morning, you have an offer in hand. The terms of the offer are right in line with your expectations and you intend to accept as is – but wait, the buyer wants your $6,000 chandelier in the foyer - the chandelier you planned to move to your new home. Now what?
Sellers, be prepared. In the buyer’s market we have today in east metro Orlando, buyers are commonly asking for – and getting - anything they desire from furniture and fixtures to closing costs and HOA dues.
Sellers, keep in mind the definition of a fixture versus personal property when it comes to the sale of your home:
Fixture A fixture is an object that is permanently attached to a home. Some examples include a bathtub, fence, fireplace and French doors – these items cannot be easily removed from a home without causing damage.
Personal Property Personal property is an object that is not permanently attached to a home. Some examples include a chandelier, artwork, furniture and window coverings – these items can be easily removed from a home and packed away.
In the case of the $6,000 chandelier that the seller intended to move to their new home, the best practice would have been to remove it and replace it with a nice, but not expensive alternative before putting the home on the market. That way, no buyer would have ever laid eyes on the $6,000 chandelier and therefore, would never have the opportunity to stake a claim for it…in other words, don’t let a buyer fall in love with something they can’t have.
As the seller, you have informed your agent that your $6,000 chandelier in the foyer “does not convey” (is not included in the sale of the home). This is disclosed in the home’s MLS listing for any potential buyer and their agent to see.
The second showing is a hit and by late Mon morning, you have an offer in hand. The terms of the offer are right in line with your expectations and you intend to accept as is – but wait, the buyer wants your $6,000 chandelier in the foyer - the chandelier you planned to move to your new home. Now what?
Sellers, be prepared. In the buyer’s market we have today in east metro Orlando, buyers are commonly asking for – and getting - anything they desire from furniture and fixtures to closing costs and HOA dues.
Sellers, keep in mind the definition of a fixture versus personal property when it comes to the sale of your home:
Fixture A fixture is an object that is permanently attached to a home. Some examples include a bathtub, fence, fireplace and French doors – these items cannot be easily removed from a home without causing damage.
Personal Property Personal property is an object that is not permanently attached to a home. Some examples include a chandelier, artwork, furniture and window coverings – these items can be easily removed from a home and packed away.
In the case of the $6,000 chandelier that the seller intended to move to their new home, the best practice would have been to remove it and replace it with a nice, but not expensive alternative before putting the home on the market. That way, no buyer would have ever laid eyes on the $6,000 chandelier and therefore, would never have the opportunity to stake a claim for it…in other words, don’t let a buyer fall in love with something they can’t have.
Nov 18, 2008
Have You Overimproved Your Home?
Just a few years ago, home improvements were considered strong, sound investments. A $50,000 kitchen remodel could easily add $75,000 to the value of a home. However, in the challenging real estate market we are experiencing today, this is no longer the case.
For a homeowner who needs or wants to sell in the near-term with recent major home improvements in place, it is possible for them to find that they have actually overimproved their home and may be unable to recoup their costs in the sale of their home.
Materials & Finishes Luxury, top-of-the-line materials and finishes used in home improvement projects during the past few years were in high demand by buyers who were willing and able to pay the price. This is no longer the case as more buyers select homes with quality, but not over-the-top materials and finishes.
Additions Home improvements that are inconsistent with other homes in the neighborhood are considered an overimprovement. For example, the addition of a $50,000 swimming pool to a $300,000 home in a neighborhood of $300,000 homes would be considered an overimprovement.
Home improvements that are relative to other homes in the neighborhood are still considered safe, but be watchful of overimproving your home beyond the general value of your neighborhood such as adding a third bath if all other homes have two baths.
Appreciation Being the most expensive house on the block is considered an overimprovement. For example, the owner of a $400,000 home in a neighborhood of $250,000 homes will see the value of their home hindered by the more affordable homes. The $400,000 home in the $250,000 neighborhood will appreciate at the same 5% per year like every other home in the neighborhood though a nearby $400,000 neighborhood may be appreciating at 8% per year.
For a homeowner who needs or wants to sell in the near-term with recent major home improvements in place, it is possible for them to find that they have actually overimproved their home and may be unable to recoup their costs in the sale of their home.
Materials & Finishes Luxury, top-of-the-line materials and finishes used in home improvement projects during the past few years were in high demand by buyers who were willing and able to pay the price. This is no longer the case as more buyers select homes with quality, but not over-the-top materials and finishes.
Additions Home improvements that are inconsistent with other homes in the neighborhood are considered an overimprovement. For example, the addition of a $50,000 swimming pool to a $300,000 home in a neighborhood of $300,000 homes would be considered an overimprovement.
Home improvements that are relative to other homes in the neighborhood are still considered safe, but be watchful of overimproving your home beyond the general value of your neighborhood such as adding a third bath if all other homes have two baths.
Appreciation Being the most expensive house on the block is considered an overimprovement. For example, the owner of a $400,000 home in a neighborhood of $250,000 homes will see the value of their home hindered by the more affordable homes. The $400,000 home in the $250,000 neighborhood will appreciate at the same 5% per year like every other home in the neighborhood though a nearby $400,000 neighborhood may be appreciating at 8% per year.
Nov 11, 2008
All About Deeds
With a sharp increase in short sale, foreclosure and bank-owned property sales today, the transfer of title (ownership) in real estate from seller to buyer is less likely to be conveyed through the traditional Warranty deed and more likely to be conveyed through one of three other types of statutory deeds.
In the transfer of ownership from seller to buyer, there are varying levels of protection among the four types of statutory deeds. Starting with the deed that offers the most covenants and warranties and ending with the deed that offers the fewest covenants and warranties, the four types of statutory deeds are:
Warranty The seller forever covenants and warrants the title and provides every possible future guarantee to protect the buyer’s title. With a warranty deed, the seller is the rightful owner and has the right to transfer title; there are no outstanding claims on the property from lenders or other creditors using the property as collateral; and the property cannot be claimed by another party. This type of deed is commonly used in a traditional arms-length transaction between Joe Seller and Joe Buyer.
Bargain & Sale The seller does not covenant or warrant to defend the title against any future claim or attack. This type of deed is sufficient to convey all the title the seller has, but does little to protect the buyer from clouds or claims on the title. This type of deed is commonly used by court officials for property that has been seized from the property owner and held by force of law by the authorities.
Special Warranty The seller does not covenant or warrant the title in any manner except against acts by the seller or the seller’s rep. The seller guarantees that nothing has been done to encumber or cloud the title during their ownership. This type of deed is commonly used by major corporations in the sale of property.
Quitclaim The seller makes no covenants or warranties about the quality or extent of the title being conveyed. The seller does not warrant to defend the title or to transfer a valid interest. The buyer has no legal recourse if title problems surface at a later date or if a forgotten lien holder emerges from the woodwork. This type of deed is commonly used when a property owner dies and bequeaths their property to someone; when a property owner gets married/divorced and adds/removes the spouse's name to/from the title; or when property is transferred to a living trust.
In the transfer of ownership from seller to buyer, there are varying levels of protection among the four types of statutory deeds. Starting with the deed that offers the most covenants and warranties and ending with the deed that offers the fewest covenants and warranties, the four types of statutory deeds are:
Warranty The seller forever covenants and warrants the title and provides every possible future guarantee to protect the buyer’s title. With a warranty deed, the seller is the rightful owner and has the right to transfer title; there are no outstanding claims on the property from lenders or other creditors using the property as collateral; and the property cannot be claimed by another party. This type of deed is commonly used in a traditional arms-length transaction between Joe Seller and Joe Buyer.
Bargain & Sale The seller does not covenant or warrant to defend the title against any future claim or attack. This type of deed is sufficient to convey all the title the seller has, but does little to protect the buyer from clouds or claims on the title. This type of deed is commonly used by court officials for property that has been seized from the property owner and held by force of law by the authorities.
Special Warranty The seller does not covenant or warrant the title in any manner except against acts by the seller or the seller’s rep. The seller guarantees that nothing has been done to encumber or cloud the title during their ownership. This type of deed is commonly used by major corporations in the sale of property.
Quitclaim The seller makes no covenants or warranties about the quality or extent of the title being conveyed. The seller does not warrant to defend the title or to transfer a valid interest. The buyer has no legal recourse if title problems surface at a later date or if a forgotten lien holder emerges from the woodwork. This type of deed is commonly used when a property owner dies and bequeaths their property to someone; when a property owner gets married/divorced and adds/removes the spouse's name to/from the title; or when property is transferred to a living trust.
Nov 7, 2008
Get Organized For Your Next Move
Your next move is an opportunity to purge and clean house of clutter and unwanted belongings - you don’t have to take everything with you in your next move! As a first step to planning a smooth move, here are some ideas to help you make your move much more efficient and a little less overwhelming.
Recycle Newspaper, magazines, catalogs, junk mail, plastic containers, glass containers and aluminum cans can be recycled through weekly curbside pick up at your home by Orange or Seminole county services.
Donate Goodwill and Salvation Army are not your only options for your donations. Consider donating to your local pet shelter, school, church or veteran’s group.
Give Away Give away your goods to family, friends, co-workers and neighbors; you never know what they may need or have an interest in. Just ask that they pick up the goods immediately.
Sell For unwanted belongings that have still have value, consider selling them. You get rid of an item you don’t want anymore and recoup a little cash along the way.
Craigslist is ideal for selling large, unshippable items such as furniture, cars and yard/garden tools. Amazon is ideal for shippable media items such as books, CDs, DVDs and video games. Ebay is ideal for smaller, shippable items such as clothing, shoes, handbags, jewelry, art, antiques and home décor. A garage sale is ideal for a quick, one day liquidation of your unwanted (but not junk) belongings.
Throw Away If you’re unable to recycle, donate, give away or sell your unwanted belongings, do yourself a favor – throw them away immediately. Don’t think twice about it, just let it go.
Recycle Newspaper, magazines, catalogs, junk mail, plastic containers, glass containers and aluminum cans can be recycled through weekly curbside pick up at your home by Orange or Seminole county services.
Donate Goodwill and Salvation Army are not your only options for your donations. Consider donating to your local pet shelter, school, church or veteran’s group.
Give Away Give away your goods to family, friends, co-workers and neighbors; you never know what they may need or have an interest in. Just ask that they pick up the goods immediately.
Sell For unwanted belongings that have still have value, consider selling them. You get rid of an item you don’t want anymore and recoup a little cash along the way.
Craigslist is ideal for selling large, unshippable items such as furniture, cars and yard/garden tools. Amazon is ideal for shippable media items such as books, CDs, DVDs and video games. Ebay is ideal for smaller, shippable items such as clothing, shoes, handbags, jewelry, art, antiques and home décor. A garage sale is ideal for a quick, one day liquidation of your unwanted (but not junk) belongings.
Throw Away If you’re unable to recycle, donate, give away or sell your unwanted belongings, do yourself a favor – throw them away immediately. Don’t think twice about it, just let it go.
Nov 5, 2008
The Realtor Difference: Experience With Buyers
A realtor has skill and hands-on experience working with qualified buyers. A realtor has the most experience in objectively conversing with buyers to address their questions, objections, needs, wants and desires. A realtor can guide a “maybe” buyer to a “yes” buyer by guiding them through the purchase decision process. This may include educating the buyer on the home buying process from A to Z; providing the buyer a Comparative Market Analysis of similar homes; advising the buyer on price and terms to create their strongest and most competitive offer; and referrals to quality lenders and home inspection/repair professionals.
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