RED DAY!!

If you remember… last year for our “Red Day Community Outreach Event” we collect over 2,711 pounds of food which provided 1,807 meals to families in need in our community. This year we will be doing another FOOD DRIVE  for less fortunate students in Orange County. On Thursday May 10th we will be driving around collecting brown bags of food around Cypress Springs  that are outside. If you want to help or participate then send us an email to CypressSprings@KGRHomes.com or call us at  407-429-2040 and we will be sure to send you more details.

 

Low-ball offers are not working anymore

What a great article I read today… It is 100% the truth!

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When the number of home sellers grossly outpaces the number of buyers, no offer can be ignored, even if it’s 25 percent or more off the asking price. But in today’s rebounding market, those low-ball offers are not working! Many times, the potential buyer finds that they don’t even get a counter-offer. And, in many cases, another more realistic buyer gets the home.

A low-ball offer – generally 25% or more off the asking price – allows buyers to see if they can land a great deal, even if they’re willing to pay more. In a survey last year conducted by the National Association of Realtors® (NAR), one in 10 respondents cited low-ball offers as a concern. According to real estate columnist Kenneth Harney, a NAR survey conducted in March and not yet released found that almost no one complained about low offers.

When the number of listings outpaced the number of buyers, many potential homeowners submitted a shockingly low offer on the theory that they had nothing to lose. If the seller balked, most would still counter with something below their asking price. Today, however, offers close to the asking price – or even beating it – will probably come in fairly quickly from someone else if a home is priced correctly in the first place.

Even buyers who still want to low-ball an offer on a home many times switch tactics after they lose a property or two to a more aggressive buyer. We are seeing this happen over and over.

A local Florida Realtor said that she told Harney that fewer buyers want to low-ball an offer in her area, but they still come in – mainly from out-of-state or out-of-the-country people who have read about the state’s foreclosures and short sales. That news, however, is old – it has not kept up with reality in many areas.  She continued to say that some people still insist on making a low-ball offer, but that she doesn’t mind. “You can’t blame a buyer for trying to get a good deal,” she says.

In some cases, a seller isn’t offended by a low-ball offer, but their counter-offer shaves only a little bit off their original asking price. An Olympia, Wash., real estate agent had a $150,000 offer for a $250,000 listing, according to Harney. But after the dust settled and the seller shook off his irritation, he and the buyer agreed to $230,000.

Harney closed his column with this advice: “Rolling low-balls at sellers may have been an effective approach between 2008 and early 2011. But in 2012’s environment – at least in rebounding markets – it could be counterproductive if you truly want to buy.”

Source: Ken Harney. Distributed by Washington Post Writers Group.

© 2012 Florida Realtors®

Tony Galarza, Realtor®

Real Estate Professional/Listing Specialist/CEO

KG Realtor® Group of Keller Williams Advantage II Realty

12301 Lake Underhill Road, Suite 111, Orlando, FL 32828

Direct: 407.429.2040

Email: Tony@KGRHomes.com

eFax: 1.877.655.3123

 

Team Executive Assistant – Cristel Anderson

Direct: 407.429.2040

Email: Assistant@KGRHomes.com

 

Immediate Info

Direct: 407.850.8542

Email: Info@KGRHomes.com

Green Up Home Cleanup

When advising sellers on how to prep their home for sale, let the four C’s of staging be your guide. Here’s the green way to make the listing clean, clutter-free, colorful, and creative.

CLEAN. Using natural cleaners to get the house ready is better for people with allergies and creates less harmful chemical waste, says Barb Schwarz, CEO of Stagedhomes.com. Brands such as Mrs. Meyer’s and Seventh Generation provide a wide array of “green” household cleaners. A simple, at-home solution for removing hard water stains and cleaning windows is a 1:1 mixture of vinegar and water.

CLUTTER-FREE. Box up personal items such as photos and collectibles and instead show off the architectural features of the house. Then help sellers find a way to donate items they no longer want rather than consigning them to the Dumpster.

COLORFUL. Freshen up the look of a room with paints with minimal or no volatile organic compounds, such as formaldehyde. These low-VOC paints have little odor when applied and don’t create hazardous waste when disarded.

CREATIVE. Stage using salvaged and repurposed items, such as wine barrels and barrels and old pottery for plants, or light fixtures made from recycled glass.

5 Low-Cost Kitchen Redos Buyers Will Love

Kitchen remodeling sales were up 36% in the third quarter of 2011 compared with the same time a year earlier, according to the National Kitchen & Bath Association. It’s no wonder: The kitchen is the focal point in many homes. And it’s one of the features buyers compare most closely when they’re shopping for a home. Here are cost estimates for some of the low-cost kitchen upgrades that listing agents often recommend to sellers:

1.  Hardware. Replacing cabinet hardware, such as handles, knobs, and hinges is a quick, DIY way to enhance kitchen space. According to HouseLogic.com, an average kitchen is 200 square feet with 30 linear feet of cabinetry, which equates to about 40 handles and knobs. Averaging between $2 and $20 per knob or pull, a home owner can expect to spend between $80 and $800 for this enhancement.
2. Faucet. There are myriad options today in terms of height, spouts, pullout hoses, and folding necks, with quality faucets starting around $200.
3. Lighting. Adding an LED undercabinet light can have a dramatic effect for about $40.
4. Organization. Buyers today choose functionality over elaborate decoration, says Jamie Goldberg, a National Kitchen & Bath Association- certified designer. Practical storage in the kitchen will go a long way. Over-the-door hooks, baskets in the pantry, drawer organizers, wall hooks for pots and pans, and stackable shelves for cabinets will add appeal; typically for less than $100.
5. Countertops. Laminate can mimic that contemporary look of granite at a significant discount. The cost for an average kitchen with 30 linear feet of laminate countertop is roughly $1,575; the same space in granite would be about $2,400.

FHA to cut seller’s closing cost contributions this quarter

The seller contribution cutbacks are coming from FHA.  This will impact us here in Florida where closing costs are relatively high.  FHA has been generous in allowing home sellers, including builders marketing new construction, to pay up to 6% of sales prices towards closing costs and prepaid taxes/insurance for buyers . Fannie Mae and Freddie Mac, by comparison, cap seller contributions at 3% for low down payment loans. VA’s ceiling is 4% for seller contributions. USDA is currently 6% for seller contributions.

Under newly proposed rules, the FHA cap on seller’s paid closing costs would drop to the greater of 3% of the home price or $6,000. In sales involving houses priced at $100,000 or below, this wouldn’t change anything ($6,000 equals 6% of $100,000). But on all sales above this threshold, FHA will cap the contribution at 3% of sales price. On a $175000 home today, the seller may currently pay up to 6% of the sales price or $10,500 towards closing costs and prepaids.  Under the new proposed 3% cap, the seller on a $175,000 house would only be allowed to pay $5250 towards closing costs and prepaids.