Monthly Archives: April 2006

Six Simple Steps to a Great Home Staging

Posted on April 27, 2006 | 2 Comments

Here are some techniques we can use to improve the marketability of your home by having every buyer get that “I want it now!” feeling.

1. Know that our physical senses respond to a home’s design. What we feel relates to our senses: sight, smell, touch, hearing, and even taste. What we want to do is adjust certain aspects of your home to make it more appealing to these senses. The more senses you can activate in a positive way, the more in love the buyer becomes with your home.

2. Know that psychologically, a buyer wants a home that fills their needs. People buy homes that they feel happy in. People want to feel proud of their home, to the point of showing it off to their friends and family. Choosing the right colors, patterns, furnishings, and taking care of the little details will greatly influence the prospective buyer’s feelings.

3. Don’t fall into the “white wall trap”. The advantages of white is that is a “safe” color, it looks clean, and is generally preferable to a very extreme color. However, it doesn’t create any sort of cheerful feeling and it doesn’t make people feel good. In short, it doesn’t give that “I want it now!” feeling we want in buyers. Studies have been done on color and mood and they have shown that:

  • Homes in a high price range: Use complex muted colors.
  • Homes in a low price range: Use pure primary or pastel colors.
  • Selling in the fall or winter: Use warm color accents.
  • Selling in the spring or summer: Use cool color accents.

4. Furnishings are very different depending on climate. For those of us in the South Florida area, fewer furnishings is generally more desirable due to our hot and steamy days. If in cooler weather, having many “cozy” furnishings is desirable.

5. Some important details to add are extras such as:

  • Paintings – They add depth and give a feeling that the room is bigger.
  • Flowers/Plants – Always use the right colors for the season.
  • Mirrors – They add depth and most importantly, the buyer literally “sees themselves in the home”. This is a very important tip because it makes the buyer feel like the home is part of their lives already. Buyers will become emotionally ready to live in the home.

6. Know that the cost of a few minor touch-ups is usually relatively small. A great place to find building supplies is ReStore, which is part of Habitat for Humanity. ReStore sells donated building materials, tools, and appliances to the public at discounted prices. These profits then help finance Habitat for Humanity’s housing building efforts. These are the South Florida ReStore locations (open Tuesday to Saturday):

HFH ReStore of South Miami
19100 Sw 106th Ave, #18
Miami, FL 33157
(305) 259-2891

HFH ReStore of North Miami
3800 Nw 22nd Ave
Miami, FL 33142
(305) 637-4913

Fort Lauderdale – Habitat ReStore of Broward County
513 W Broward Blvd
Fort Lauderdale, FL 33312-1743
(954) 763-7771

I encourage you to give these techniques a try. There’s no reason why a buyer shouldn’t fall head-over-heels over your home. As long as you take the time beforehand to make your home as inviting as possible your home will be in very high demand.

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Posted in Home Improvement, Home Staging, Seller Tips

Getting Prequalified For Your Home Loan

Posted on April 15, 2006 | Leave a comment

Getting prequalified for a mortage determines how much you can afford to pay for your home. It allows you to act as quickly as possible when you find the right home, especially when there are other interested buyers. Very importantly, it also shows the seller that you are serious about purchasing the property and that you are able to afford it.

Here are the steps to become prequalified for a mortgage:

1. Ask around and get a referral for a mortage broker. Getting a referral from your Realtor is a great place to start.

2. There are two pieces of financial information that you should have on hand. These are your gross monthly income and the total payments that you make per month (these monthly payments include car payments, credit card minimum payments, etc).

3. Finding your debt-to-income ratio is usually done along with your lender but you may wish to do this on your own also. Add your monthly debts together and compare that number with your income to find your total debt-to-income ratio. If your percentage is under 36 you’re in great shape. If not, don’t worry, there are ways to overcome this.

4. Your lender will take a look at your credit report with your authorization. This includes your FICO (Fair, Isaac and Company) score. This score is a system used by lenders to calculate how good your credit is.

5. Final step, have your lender write up a prequalification letter. This letter will state that your financial information is satisfactory. You are now officially prequalified and it’s now time to find your dream home!

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Posted in Buyer Tips

How To Find the Best Mortgage For Your Home

Posted on April 2, 2006 | 2 Comments

1. Prequalification is definitely the first step when you decide you want to buy a home. Getting prequalified is an easy process and gives you peace of mind when shopping for your home. Prequalification begins the process of formally applying for a mortgage, and gives everyone a clear roadmap of the financial direction they are headed. Your mortgage broker (ask your Realtor for a recommendation) will give you a written prequalification done easily for you at no cost and no obligation, even over the phone!

2. You must know what is the monthly amount that you feel committing to. Talk to your mortgage broker not only about what level you qualify for but also about what you want to pay out each month and be clear on this. Find what this monthly dollar amount translates into in terms of value of home. This ensures that you won’t be wasting time looking at homes not in your price range.

3. Think about your long term goals. How long do you feel you will be owning this home? Is your income going to be changing (up or down) in the near future? In what direction are interest rates moving? These questions help determine the right mortgage amount for you.

4. Find out what prepayment privileges are available and the payment frequency options. Making frequent payments (weekly or even biweekly) can literally take years off the length of your mortgage. This will also lessen the amount of interest you pay over the term of the mortgage.

5. Two very favorable options in a mortgage are portable mortgages and assumable mortgages. Portable mortgages are permitted to be taken with you when you buy your next home. This is great because unless you’re buying a home that is much more expensive you won’t have to go through the entire mortgage process again. Assumable mortgages are great because the buyer of your home can take over your mortgage when you move to your new home. This is a powerful tool at the negotiating table which makes your home very desirable.

6. Just as you shouldn’t buy a home without a Realtor, you should also work with a mortgage broker. Mortgage brokers make an immense difference in the cost of your mortgage. What’s even better? Just like a Realtor when buying a home, you receive the services of a mortgage broker with no cost or obligation.

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Posted in Buyer Tips