Paint is cheap

Sprucing up the paint in your house with a nurtral color can help it to sell faster and for more money. 

Owner occupant buyers looking for homes generally fall into two catagories–those wanting a a deal and are willing to paint, carpet, and make some repairs and those wanting a move in ready home.  Most sellers want the maximum value for their home but also want to outlay the minimum cost, which is understandable. Generally, the buyers looking for a move in ready home are willing to pay a little more than those willing to do some repairs and updating.

In order to get the maximum value for the house, it should be clean and decluttered. Freshly painted homes look cleaner and fresher. In addition, sellers will want to take personal pictures off their walls and minimize the number of art work on the wall. In doing so, sellers need to pull nails and picture hangers, putty the holes, and touch up the paint as needed. If it has been awhile since the walls were painted the touch up paint will most likely not match. You don’t want the wall to look spotchy. So go ahead and paint the wall.

Wild colors of paint can make buyers cringe thinking of the number of coats of paint it is going to take to cover the purple or red rooms. In addition, white walls show all types of dirt and imperfections that otherwise might not be seen. White walls are also cold and feel like you are in a rent house.  I suggest that sellers paint a taupe or beige color. This way it is nuetral for the next buyer and yet makes the room warm and inviting.

A gallon of paint is about $25 and is well worth buying if you are trying to sell your house.  For other tips and questions, please feel free to contact me at 405-213-229 or visit my websit www.sandiwalker.net.

 

 

So you want to make money in Real Estate

Sometimes I get calls from people wanting to buy a house cheap, fix it up and then put it back on the market for a big profit. This is often called flipping.  My guess is that they have been watching HGTV and believe it is easy money. While it is true that you can make money flipping a house, you need to make sure you have all the facts up front before investing your money.

If you are going to buy and sell houses in this manner for profit, you need to consider the following.

1. Make sure you have enough capital to see the profit through. If you are getting a loan for the property, do you have the renovation money in cash? Or will you be paying cash for the purchase and the renovations.
2. Work with a trusted and knowledgeable Realtor who will give you an accurate value of the property when it is repaired at the time of purchase. I like to give my investors a range and it is usually on the low side. Nobody is upset when they make more money is my thoughts. And use that Realtor to resell the property.
3. Utilize reputable contractors and get permits for the work performed.
4. Time is money so you need to get the house back on the market as soon as possible, but understand the rules of lending.  Certain loans that the new buyer may obtain can require that the seller (you) hold the property for 90 days minimum.  In addition, check to see if the neighborhood sells quickly or not. The days on market will affect your profit.
5. If the seller (you) purchased the property and are selling it for twice the value—this is not hard to do, because they do not take into consideration the money spent on the property to bring it back up to condition—a second appraisal may be required. This is a seller’s expense.
6.  Beauty sells but the mechanics of the house are important. The buyer will most likely get a home inspection. Generally the buyer is going to want the house to have the repairs made that the home inspector finds. Make sure you address the issues an inspector may want repaired.

When I work with investors who want to flip a house, we always ask how much will the house sell for when it is finished, deduct the cost to sell the property—relator fees, closing costs, etc, deduct holding costs. Next what do we think it will cost to repair; deduct that from the sales price and the difference from the purchase price is the profit. You will need to determine if your time is worth that amount of money or not. If it is then you have a good candidate for a flip.

I am an investor and have worked with several investors over the years. I feel the knowledge I bring to the transaction has value and gets the properties sold fast. If you are looking to buy and sell, please feel free to contact me at 405-213-2992 or visit my website http://www.sandiwalker.net

Are you a first time home buyer?

Buying a home is a large purchase and can be a little scary for most buyers starting out. Let’s face it this is the largest item that you have ever thought to purchase and if you buy it (close on the house) and decide you really don’t like it a week later, you can’t take it back. So here are some things to think about before you commit to buying a home.

1. Get preapproved to see what you can afford. If the lender tells you that you can afford a certain amount and you have not been paying any where near that in rent or do not feel comfortable paying that amount in a house payment, discuss that with your lender. The lender should be able to tell you what price range to look at based upon the amount you want to spend each month including taxes and insurance.

2. Find a realtor that you feel comfortable with. I think it is best to find a full time realtor, one that does not have another job. Someone who knows the area of town you want to buy in. Ask questions of the realtor you are thinking of hiring. What is your average price range that you sell? How many homes did you sell last year? Do you work with down payment assistance programs and what is available for me, if any? What hours do you work? Do you take a certain day off each week? Remember, any realtor can assist you in buying any house on the market regardless of whose sign is in the front yard, so find a realtor to help you personally.

3. Determine the location you want to live in. Is it close to family, friends, or work? What is the crime rate? Is the area improving or deteriorating?

4. Realistically decide on the number of bedrooms and bathrooms as well as other amenities. Remember everything is priced for a reason-location and or condition. Determine if you are willing to fix or can some things that may be required. Verify if your loan will allow you to buy certain properties that may require improvements.

5. Have your realtor set you up a search based upon your criteria. Review the search results, drive pass the properties to determine if you are still interested. Remember you can change what is on the inside of the house, you can’t change your neighbors house. So stand on the front porch and look out.

6. Call your realtor with the properties you wish to view and take a tour. And ask questions. You haven’t done this before, but your realtor has and should be able to answer your questions, or get the answers for you.

I love helping first time home buyers. If I can be of assistance, please feel free to call me at 405-213-2992 or visit my website at http://www.sandiwalker.com
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Should I call the Realtor on the sign???

Buyer representation is very important in real estate.
Sometimes buyers just want to call sign to sign looking at homes. They think that using the realtor representing the property will net them the best deal, because that realtor will work hard to make the deal work and get the full commission rather than share it with another agent.
But the truth of the matter is a realtor cannot disclose confidential information given to them by either party. The seller is paying the commission and therefore the loyalties of the realtor representing the property most likely side somewhat with the seller.
A realtor can show any actively marketed home that is listed in the multi-listing service and can also represent a buyer in a for sale by owner transaction in the state they are licensed. A buyer’s realtor is can advocate for the buyer and can help them throughout the sale. They can pull comps and discuss whether or not the value of the property is in line with what the seller has it listed at. They can give the buyer advice on what to offer the seller, unlike the realtor representing the property.
I often tell people; using the same realtor as the seller is like using the same attorney as your ex in a divorce case. It may work out fine if everyone agrees but who is advocating for you. The realtor in that case would just be there to do the paperwork and not give advice. I guess if you have bought multiply properties, and just needed someone to write the paperwork and deliver it, this would be fine. But I find in a large transaction like this, most people want the advice of a professional. So do yourself a favor and hire a realtor to represent you and allow them to show you any and all properties that you have an interest.
If you have questions about real estate, please feel free to call me at 405-213-2992 or visit my website at http://www.sandiwalker.com

How do I buy a short sale

Patience, Patience, and lots of patience.
Short sales should be called long sales as in time requirements. It often takes many months to get a short sale accepted at the bank. However if you are not in a big hurry, you may be able to get a good deal.
The seller’s lender will need to sign off on the contract in addition to the seller. The majority of the time the lender will want to see an offer on the property before starting the short sale procedures. Local lender’s may want to determine value sooner than a larger national bank. Either way, the seller’s lender will do the following in order to complete a short sale.
1. Current owner will fill out a financial package to determine if they qualify for the short sale, including a hardship letter detailing why they need the short sale.
2. The lender will review the short sale packet. This takes time.
3. If the owner qualifies for a short sale, they will send out an appraiser to quantify the value of the property. They may also request a BPO (broker’s price opinion)
4. The current lender will use the appraisal price to determine the amount they are willing to accept on a short sale. Most of the time, the realtor will reduce or increase the list price at this time to match the appraisal price.
5. The lender will accept a net amount based on the appraisal price. (In my experience, this number has been 86-88% of appraisal price)—remember this the net to the seller’s lender after all expenses, realtor fees, etc. So there is not a lot of room off the appraisal price. Hopefully the appraiser has not over valued the property.
6. Several people at the bank will need to review the short sale offer and sign off on it before turning it over to a closer to set the closing up.
7. The new buyer will need to make sure their lending requirements are met. I do not advise buyers spending money to do inspections or appraisals prior to the current bank’s approval to sell. Once that approval is given, the rest of the sale works mostly like a regular sale.
Just remember that these homes are sold as is and where is and may have some repair requirements.
If you have real estate questions please feel free to call me at 405-213-2992 or visit my website http://www.sandiwalker.net

You want to buy a house, but where do you start?

I believe that by following certain steps in order you will have a better experience purchasing you new home. These include having a minimum amount of money on hand, getting preapproved, and working with a full time realtor.

When writing an offer, you will need earnest money also know as deposit money. The standard in Oklahoma is $500-$1000, may be more or less. You will also be asked to pay for the appraisal, typically $450 in Oklahoma, and the home inspection fees are approximately $300 for home and termite. While the lender and inspectors may be willing to wait to closing to be paid, they will probably want a credit card or check to hold incase the file does not close. Even if the house does not close, if these services have been rendered you will be required to pay for them. The earnest money may or may not be refundable depending on contract terms and reasons for fall through.

Preapproval is essential. By getting preapproved you will learn the following:

Is your credit and income where it needs to be to qualify for a loan.

Do you need a down payment and how much?

Can you qualify for down payment assistance?

What type of loan can you obtain?

Are you eligible for an American Native loan, VA loan, or rural development loan?

What are the costs associated with the loan?

How much do you want to spend a month?

Without getting preapproved you are simply window shopping and you may not know the exact fees that are associated with the cost of purchasing. You could also possibly spend money attempting to get a house that you don’t qualify to purchase as well as wasting time and gas.

Working with a full time Realtor who knows the area that you want to purchase a home in is critical. If you are calling sign to sign, you have no representation. The realtor on the sign is being paid a commission by the seller. If you hire a realtor of your own, then that Realtor can represent you the buyer. The buyer does not pay the commission for this service. The seller contracts with the listing agent to sell their house. The listing agent offers a portion of the full commission to a buyer’s realtor to bring them a buyer. This way your best interest is represented during the transaction.

If you are looking for a full time Realtor in Moore, Midwest City, Del City, Mustang, Yukon, or Oklahoma City to represent you, please feel free to call me at 405-213-2992 or visit my website http://www.sandiwalker.com