www.KarenFeltman.com

Tell Me What YOU Would Like to Know about Real Estate

Karen Feltman — Sat, 14 Aug 2010 22:32:00 GMT

I want to connect with you, my readers. Whether you are a buyer or seller, you do not buy a home every month so there are bound to be questions whether you have never purchased a home, or if you have bought or sold several. The market, the financing guidelines, tax implications.....everything has changed! It is important to have a trusted professional on your side. If I do not know the answer directly, I will seek out a professional to ask your questions. Completely anonymous, please post your questions here and let's start a dialogue! I look forward to assisting you make one of the most important purchases in your life.

Keep smiling,

Karen

Is it a good time to buy right now?

Karen Feltman — Fri, 13 Aug 2010 16:30:00 GMT

Well, I think that you all know that it depends on who you ask! There are some agents that will always tell you that it is a good time to buy a home. I think that it really depends on your long term plans. Let me explain a little.....

For example, I received a call just the other day about this topic. They have lived in their home now for about 4 1/2 years. They are considering moving up to a new home on the outskirts of town. They have met with an agent and the builder and were getting ready to put their home on the market. Now, they have updated the house on the inside with new carpet, appliances and paint, and overall the price that the agent gave them seemed to be fair to the seller. However, the agent told them that they would have to either a) get a bridge loan for their existing home or b) or agree to their "home guarantee" price, which is considerably lower than the market value. One of these two options must be done in order to start the building of their new home.

Now, this is not at all uncommon. Builders want to make sure that the buyers are qualified to be able to buy the new home whether their home sells on time or not. The problem is that most lenders are no longer so willing to qualify buyers for dual mortgages. It has become increasingly difficult to get these type of transactions to happen. Then there is the added pressure coming from the builders' agent, who is also representing the buyer, that is pushing them to take the much lower "guaranteed trade value" for their home. In our current market, most homes in their price range are selling within 2-3 months, but with school starting just around the corner, you just never know. The appraiser for the builder is saying that all of the windows in the house need to be replaced or it is worth much less in a trade value. Unfortunately, that bottom line just will not work for the sellers because it does not give them the down payment that they need in order to secure the new home.

So, in this case, maybe it is not a great time to buy for them. Yes the interest rates are low. And they are in a great area and have made updates to the home. Will the windows cause them to NOT sell? That is unlikely. My suggestion was for them to take a step back and not be pressured into buying a new home RIGHT NOW. They should list their home first, for a couple of months. If their home sells, they can offer on the new home to be built. They may have the inconvenience of moving twice, but that is a small price to pay to know that you won't feel forced to take someone else's price of your home. Call me today for your free home market analysis to determine if it might be a good time for you to buy!

Keep smiling,

Karen

Staging...How it Starts-Part 1

Karen Feltman — Wed, 11 Aug 2010 01:58:00 GMT

If you have ever wondered about staging, here is your chance to ask questions. I have a new listing that I am currently preparing for the market. It was on the market for 2 months with another brokerage and agent with only 8 showings and no offers. The seller came to me for an aggressive marketing plan to get this home sold quickly, with the least amount of effort from him possible. Sound familiar? It should, since that is what sellers want. In an age of convenience, now more than ever before, we are willing to pay a professional to get the job done.

Remember that list of "honey dos", you know that list that you made like 5 years ago when you bought the house? Oh, yeah, that one...now here it is 5 years later and NONE of it is done. Imagine what it would be like to take on that list in 2 weeks or less to put your home on the market. It would give you a heart attack, unless of course you did not have to work or sleep or eat during your waking hours. Now imagine handing over your home, your largest asset, to me. Trusting me to do what is necessary to get your home sold, including that list that you have plus some other things that you maybe did not think of.

That is called Staging. It is one of many pieces of the relocation puzzle. I started by obtaining a key to the home, since the seller is already out of state at this time. I walked through the home with my camera and my notebook and took notes about the items that needed to be repaired, replaced, or just removed. Then, I scheduled an appointment with my handyman. Now, Laura Kay Sheely is a wonderful person that I utilize on all of my staging projects. She and her husband Travis are the owners of "The Small Jobs Guy". They are able to do anything from restaining interior doors, to painting, removing wall paper, hanging light fixtures, powerwashing, lawn mowing and disposing of stuff that you do not want. She walked through the house with me and took the notes of the items that needed to be done. She created a punch list for the seller along with the prices for her company to take care of them so that she could call and discuss this with him before he decided what he wanted to tackle himself. Of course, most sellers agree that the prices are reasonable enough, that they usually ask her to do it all for them.

And that is just the beginning.....I will continue with this series as we follow our 2 week journey to putting this listing back on the market.

In the meantime, please call me if you are overwhelmed and don't know where to start to get your home ready for today's competitive market. We can help and make it as convenient and painless as possible without costing you all of your home's equity!

Keep smiling,

Karen

What Does a Buyer's Agent Do For YOU?

Karen Feltman — Wed, 21 Jul 2010 18:05:00 GMT

You may be wondering why you would want to contact an agent if you are looking to buy a home. While it is true that Realtor.com and many other sites allow you to see the homes that are for sale, there is much information that you as a consumer do NOT have access to. An example would be how long it has been on the market, or whether there are any homes that have sold recently in the area.

A buyer's agent is not just a door opener to prospective buyers. A buyer's agent protects you by advising you of all of the inspections, contingencies, terms and price that you should negotiate. If you just call the listing agent to see a home, you are not solely represented. The listing agent is representing the seller and in order to represent you, you and the seller must agree to sign an agreement explaining dual agency. Dual agency is when the listing agent meets with a buyer that is interested in the home that they have listed. This is legal and done all over the country, with full disclosure of what it means to both sides of the transaction. One person cannot effectively mitigate loss on the seller's side and give full negotiating skills to you as the buyer in these cases. In fact, the listing agent can only disclose what the seller allows in writing so they cannot advise YOU as the buyer on how to negotiate the contract.

I personally am not interested in representing both sides of a transaction. Even if things go smoothly, one side or the other feels like their interests were not represented. Whether the seller thinks that they could have gotten the buyer to pay more or the buyer feels like they could have gotten the home for less, there can be bitter feelings in the end.

It is in your best interests as a buyer to have your own agent to represent you. The seller is paying for you to be represented, you do not pay for that service. The value of having someone that can negotiate the right terms and price for you is priceless. The buyer's agent will write a contract and make suggestions for the timeframes for every step of your contract from escrow to closing. The agent will also provide you with the sold comparables for the property to assist you in getting the best price possible in the current market.

The buyer's agent with work with your lender, your home inspector, your closing company, etc. to assist with the entire process. The buyer's agent will give you a checklist of the items that you need to complete prior to closing. This kind of guidance will prove to be invaluable to you. You will stay on track and there will be no surprises the week before the closing.

So, the next time that you think that you don't need a buyer's agent, think again. I don't think that you can afford to not have one! Call me for your free buyer consultation to see if you are ready to buy your first home or if the market is ready to sell yours at a great price! Interest rates are still low and there are some great values out there in every price range.

Keep smiling,

Karen

How to Buy the Home of your Dreams

Karen Feltman — Mon, 05 Jul 2010 23:13:00 GMT

I counsel buyers that come from all types of strategies in purchasing a home. There are first time home buyers, second home buyers, move up buyers, relocation buyers, investor buyers, and empty nester buyers. All have their own agenda in purchasing a home that is currently on the market.

The best advice to start in the process is to go to your bank and see how much you would like to pay monthly for your new home. I think that it is important for you to be realistic in what you feel comfortable paying each month. Just because the bank says you can afford it, does not mean that you can. You as the buyer know what you spend your money on each month and with utilities and other obligations, you don't want to be one paycheck from disaster. It is so important for you to have a price range in mind when you start looking in your price range. Then there will be no fear in making an offer on your dream home!

The second piece of advice is to make sure that you are honest with your REALTOR® with your expectations about the process. Your selected REALTOR® should give every decision maker a questionnaire where you can give your thoughts about your needs and wants for your new home. It will narrow your search to very specific terms and you will be guaranteed to see only the homes that meet your exact criteria. You can start with these and then you can compromise if you do not find the perfect one.

Don't be afraid to make a decision! Whether you have seen 3 homes, 5 homes, or 20 homes, you will know it when you see it! Just remember that you have seen hundreds of homes that you ruled out online. Don't miss out on a chance to have your perfect home.

Finally, when you make an offer on your dream home, be realistic! Every market is different and although the media might tell you that it is a buyer's market, there are different degrees to it depending on the price range. There are still homes in every price range that sell to the first buyer that sees them, or receive multiple offers. Your REALTOR® should show you the current competition, the absorption rates, the current sold properties, and most importantly, the days on the market for your dream home. Why is this important? Very simple, the sellers' motivation is very important when considering your opening offer.

You should make an offer with the best terms possible so that the sellers will accept your offer with little negotiation. When you make an offer, be patient. The sellers have three options when they receive your offer. They can accept it, reject it, or they can counter offer to you. Most sellers will counter offer to better the price or the terms to meet their specific needs, such as a better closing date based on their time table. The closer that you offer to their asking price, the less negotiating you will need to endure.

A great REALTOR® makes all the difference when you are negotiating on your home! Whether you are purchasing your first home or relocating to the area, all REALTORS® are different. Please do your research to find someone that will represent your best interests! Thanks for stopping by and feel free to ask any questions that you may have about the home buying process.

Keep smiling,

Karen

Your Summer Curb Appeal

Karen Feltman — Mon, 05 Jul 2010 16:19:00 GMT

By now you have probably heard about the importance of curb appeal. The key is to draw the buyers in, make them so impressed with the outside that they cannot wait to see the inside. Here are 9 things that you can do to make your curb appeal pop!

1. Mow and trim the lawn. Spend the extra time using Roundup on the pesky grass in the driveway or in your landscaping that does not belong there.

2. Update your landscaping. Replace mulch if necessary, trim existing greenery and add a few seasonal colorful plants to the mix.

3. Add garden solar lights to your walking path or in the front landscaping to draw attention to the front of the house.

4. Replace rusted or tarnished coach lamps on the garage and at the front door to make the house sparkle.

5. Purchase or repot colorful plants for the front porch, walkway or between the garage stalls for added interest and color.

6. Repaint the front door. Whether it is a neutral color or a brighter vibrant color, a fresh coat of paint does wonders for an older, faded door.

7. While you are at it, if your old hardware is looking tarnished, buy a new one to match the lights or refinish to match.

8. Clean the windows and powerwash the front entryway. The entryway no doubt has dust and spiderwebs that built up in the spring.

9. Purchase a fresh welcome mat for the front door!

Remember that your home from the curb must beckon the potential buyers to come inside. Focus on your front entry. The buyers will be standing there for a few minutes as their agent is opening the lockbox and they will have plenty of time to notice how great it looks or how unkempt it is. As for the inside, that is a whole other story!

Happy selling and please call me if you would like your own staging consultation to get your home on the market this summer!

Karen

Showings, Open Houses and Your Security!

Karen Feltman — Sun, 04 Jul 2010 23:58:00 GMT

The most important reason why you should use a licensed REALTOR® is for your own safety. When you list your home with a REALTOR®, you have a secure lockbox to house your key and all viewings of your home is in the company of an agent to protect your home and its belongings. Unfortunately, there are people that will target you for your prescription drugs and easy to take valuables, such as jewelry. When an agent calls the showing desk to set up a showing of your home, you can assume that the buyer is pre-qualified to purchase your home! What an advantage over letting any random person into your home if you are for sale by owner.

The lockbox works with a satellite, so as soon as an agent gains access to the key, I receive an email immediately alerting me to their entry. This is especially important if you are going to be gone for a few days, or if the home is vacant so that we can keep track of the showings on your home. Also, if lights are left on, we will know who was last in the home. The lockbox is also set for only certain times for the keybox to allow access, such as only between the hours of 7 am and 9 pm.

You set the showing instructions for your home, although I would suggest a maximum of a 4 hour notice. Often agents do not call until the day of a showing or if the buyers are from out of town, they do not have time to schedule 24 hours ahead. You should leave your home every morning expecting it to be shown, then it makes it easy for all buyers to have access easily during the day and early evening hours. This is especially important on the weekends when most buyers are available to view homes. Your flexibiliity is key.

I recently put a home on the market. It was on the MLS, but there was no sign yet since it was a Friday. The next day, the buyer's agent called me while showing other listings in the neighborhood. They would need to be able to see it within 15 minutes. It was an out of town buyer that was only there for the day. I immediately called my sellers and explained the situation. It was a Saturday and fortunately they were home and could turn on all of the lights and leave quickly. That first buyer made an offer on the home before anyone else could even see it! Sometimes it all comes down to access. Had we not allowed the showing, this buyer would have been back in a week, and possibly would not be as interested in seeing the home.

Overall, I think that the security of your home and your valuables is paramount and I make sure that any potential buyers that come into your home during an open house take the time to fill out their name and address. I then also make sure to not leave them unattended so that they know that I am watching where they are at all times.

I hope that if you decide to list your home, you will now understand how important your showing instructions are and that they are ultimately the key to selling your home quickly! Thank you for stopping by and I hope that you had a great holiday weekend!

Karen

Dear Mr. and Mrs. Seller, (the letter that I wish I could send)

Karen Feltman — Tue, 29 Jun 2010 20:21:00 GMT

We have all at one time or another seen a listing online where the photos of the home are terrible and there is no description. Here is the letter that I wish that I could write to those sellers:

Dear Mr. and Mrs. Seller,

I hope that this letter finds you well. I see that your home has been on the market now for 103 days with XXX Realty. You have had three price reductions and I have no doubt that your agent has had many open houses on your home during this time period. I hope that your move is still going as planned and that your family does not have to live apart or pay for two residences during this time. Since the photos of your home are still showing snow on the ground, and it is June, I am not sure if you are still living there or not.

I am sure that when you signed your listing contract, you expected great things from your agent. I am sure that they showed you the available comparable properties that were on the market at the time and also any homes that may have sold 60-90 days prior to your home coming on the market. In addition to the winter photo and very dark photos of your home, there is only a two line description, so between the poor photos and the non descript remarks, my buyer has chosen to not consider your home. Even more frustrating, on Realtor.com there are only 4 photos of your home and all of them are winter photos of the exterior. The agent does not pay extra to have all the interior photos or a custom description on there either. The company website has the same old photos. Since there are no photos to see, the buyers have determined that it must be poorly maintained on the inside and have decided to look at two others in your neighborhood that are lower priced with fabulous photos and lots of descriptions of all of the updates that they have done since they have owned the home.

I can see on the assessor's site that you have been busy. You put on a new roof three years ago, updated the furnace and air 2 years ago, added a deck and fencing, and there is an electrical and plumbing permit too so I can assume that you updated or added a bath or finished space in the lower level. There are no photos of any of that, so I can only guess. Especially since the description does not tell me anything. There is also no property disclosure attached to the MLS, so I cannot see if you had any water problems after all of the rain that we got two years ago around the time of the flood.

I wish that I could convince my buyers to at least take a look, but there are so many properties on the market, that they ruled it out for lack of information. I hope that you are able to sell and get on to your next location with your family. Looks like there are at least 7 homes in your immediate area that have come on the market in the last couple of weeks and there are 3 that are already sale pending after only few days on the market. They were priced less than you and they have 1 more bedroom too! At this point, I am sure that you are starting to feel that you are helping everyone else sell their homes, and you are. By being overpriced and without any sign of the condition of your home, buyers are comparison shopping and they cannot see what you have to offer.

Again, I cannot imagine that you have not looked at the online marketing of your home, but please take a look and decide if you were a buyer, would YOU look at YOUR home given the current competition?

Signed a concerned REALTOR in the neighborhood,

Karen Feltman

But alas, I cannot tell the seller what is going on in front of their nose. There is a Code of Ethics for REALTORS that gives protection to the listing agent during their listing contract. But once that listing has expired, that will be the first thing that they will see when they call to interview the next agent to market their home. You see, there are many different companies and even more REALTORS in the Cedar Rapids area. Sometimes you get what you pay for, such as in a reduced service where you pay for just the MLS and you as a seller hold your own open houses. Then there are the "full service" brokers, they may say that they "do" the same things, but can you see that some do not? Please ask your next agent how your home will be showcased, you cannot waste any more time!

Buyer Beware?

Karen Feltman — Mon, 28 Jun 2010 16:18:00 GMT

Whether you have purchased a home before or not, there is a concern for the disclosure of the property. Whether you are looking at home that is listed by a licensed REALTOR® or a home that is listed for sale by the owner, there is a minimum seller disclosure that is required by state law. The only exception to this law is if the home is owned by the bank through foreclosure or if the home is part of an estate. With this being said, it is now more than ever important to have a home inspection completed on any home that you are thinking about purchasing.

A certified home inspector will cost between $300-500, but the value and peace of mind is worth it! If there are things that the seller neglected to reveal on their home inspection such as a leaking roof or basement, the home inspector will in most cases find it. This can save you lots of money down the road by addressing these issues with the seller prior to closing. If the seller will not take the steps to address and correct the issue, then you have spent your money wisely and you would be walking away from what could have been a devestating money pit!

I also would like you to know, that as a buyer's agent I am allowed to show and represent you in the purchase of any home that is on the market whether it is listed with another company, or it is for sale by owner. The only requirement is that when you find a home that is NOT represented by a broker, you send me the address and seller contact information and I will make the call to arrange for the viewing of the property. You have the right to be represented solely and most sellers do not take issue with buyers that prefer to be represented. They are just choosing to represent themselves in their part of the transaction to save the cost of the commission. So the next time that you see a home that you like, don't be afraid to ask me to see it. It may just be the perfect home for you and your family!

Karen

How Important are Open Houses?

Karen Feltman — Sun, 27 Jun 2010 22:47:00 GMT

I think that open houses are very local and seasonal. As a general rule, I do not believe that open houses sell houses, however, I do believe that a well advertised open house can generate calls and interest in a home. With all of the options available to buyers today, driving around in 90 degree weather looking at houses is just not at the top of anyone's list. Most buyers preview the available homes on the internet, followed by a drive through the neighborhood before they determine if they are going to see it at the open house or call a buyer's agent to make a private appointment.

The activity that can be attributed to open house traffic is not necessarily the physical amount of people that show up during that 2 hour window. The extra notice and advertising that a property receives in the newspaper, online on Realtor.com or the company website, the TV show that showcases open houses and the invitations that are sent to the most likely buyer pool are all going to drive more interest in your home. You should have at minimum one open house each month with the first one being in the first couple of weeks. Done correctly, you should not need to have more than one if the marketing is strong to the agents that represent the buyers.

Open houses and the preparation that goes into an open house, prepares the seller for what is expected whenever there is a potential buyer that might see their home for the first time. First impressions count and I think that the anticipation of the first open house brings out the neighbors too. After all, your neighbors are sometimes your best source of finding a new owner for your home. I take time to invite the neighbors to their own private open house before there is even a sign in the yard. Your friends and neighbors are naturally curious about your home and what you have done with it! If you invite them in, they will then not clog up your first open house for the potential buyers that see the advertising.

Call me for your free home consultation and I will show you my strategic marketing plan to get your home on the market right away and capture those summer buyers before the school year starts again! Tell me that you read this blog, and you will receive a free incentive if you decide to list your home! Call for more details, 319-521-0701!

Keep smiling,

Karen

The Importance of Being Honest

Karen Feltman — Fri, 25 Jun 2010 21:30:00 GMT

I think that it is fair to say that the first thing that sellers want when you come to take a look at their home is to know that you will do your very best for their interests. This includes telling the truth! What do I mean? Sometimes, it is not pleasant to hear that your home is not worth what you are hoping. However, it is better to see it and hear it now rather than being told otherwise and facing heart wrenching price reduction after price reduction and ultimately no sale. Imagine then that another agent comes to interview as the next agent to represent you and they tell you that your home is overpriced for the current market.

If you are told that your home is worth less than you had hoped, it is time to decide if you really need to move or if you would just like to move. Sometimes you do not have a choice such as an employer relocation, but if you can stay there for just another year, it could mean a huge difference.

It is very important that you interview at least 2 agents. In relocation especially, the relocation company requires two different agents to perform a market analysis. If the values are not within 5% of one another, they require a third opinion. Why should you be any different? It is important to have a realistic picture of what the market currently is and what it was in the last 60 days. Many markets are too unpredictable to use any older comparables than that. This market is one of a pricing war and a beauty contest. There are still homes that sell in the first few days to the first buyer that views them for this exact reason. Price and condition are just as important as the location! You need an agent that can not only price you "in" the market, but be realistic with you and get your home sold in YOUR timeframe. Call me for your free home consultation so that we can see what this market holds for you and your home. I would love to help you and your family make a move!

Let the Kids Help SELL the House!

Karen Feltman — Fri, 25 Jun 2010 02:06:00 GMT

I have been on so many listing presentations where there is a family with children, small children, but ones that know enough to know that it is a big deal. It did not take long for me to realize that these children just want to be a part of the process. I have found that the easiest way to get kids to cooperate, i.e. keep their rooms clean, is to have your own listing contract with them too! Getting the kids involved makes it easier and it makes me the bad guy instead of Mom and Dad.

Complete with crayon signatures, children aged 5-12 are some of my best clients! It is set up with a list of 10 things that they will do to make sure that they are doing their part in the sale of their family's home. We document what their room needs to look like, take photos, and then set up the reward for their "good" behavior. Whether it is a gift card or a little shopping trip, I think that $25.00 per child is a huge incentive to their favorite store. I also agree to take them to lunch the day of the closing so that Mom and Dad have a little time to move some things without them underfoot.

It is very important for children to feel like they have a little responsibility and control in their lives once the sign goes in the yard. And as long as they do their part, they retain their entire agreed upon reward. The understanding is that every time that Miss Karen has to come and do their "job" for them before a showing, they lose one of their dollars. No one wants to lose that, so it works quite well.

So if you have children and you are thinking that it will take a lot of effort from you to keep the house "show ready", call me! You won't have to worry about nagging the kids, because they will officially be a part of the process complete with their own "listing contract"! I would love to work with your children, and of course the parents too! Let's get you moving as a family to your next big adventure!

Keep smiling,

Karen

Ranch For Sale in Highland Meadows

Karen Feltman — Sat, 15 May 2010 20:48:00 GMT

• 1,406 sq. ft., 2 bath, 3 bdrm ranch - MLS® $169,000 - Well Maintained Ranch!

Highland Meadows, Marion - This well maintained ranch was built for the current owner right across the street from Butterfield Park in Marion. Located conveniently to shopping, schools, parks and area employers with a level yard, mature landscaping, and a screened porch to enjoy the summer evenings. Features include a main floor laundry room, updated furnace and water heater, newer roof, newer dishwasher and refrigerator, and a finished lower level rec room and 1/2 bath. New paint throughout the main level, freshly cleaned carpets, and plenty of room for everyone. The seller is including an HSA Home Warranty for the buyer for one year after the closing. Quick possession is available!

Property information

For Sellers: What Improvements are Necessary to Sell My Home?

Karen Feltman — Fri, 04 Jan 2008 16:14:00 GMT

This question has always been a concern for a home seller. In this market, it becomes more essential to the selling process. With more properties on the market than ever, buyers have too many choices. Gone are the days that buyers will look past outdated light fixtures and floor coverings. In order to be competitive, sellers need to address these concerns prior to listing their home. Today's buyers want a home that they can just move into. No work needed! Here are a few tips that I give to my sellers: Paint neutral colors on all the walls for a fresh look. Dress up your entryway, inside and out. Curb Appeal! Clean all the clutter and make storage space visible. For each listing presentation, I will create an action plan based on individual seller's needs. It rarely costs any money at all, just your time! It is well worth it to make a great first impression and make your home sparkle against the competition that is unprepared. Call today for your free home consultation!