1. Appraisal Problems

Even if you do find a buyer willing to pay an inflated price, the fact is over 90% of buyers use some kind of financing to pay for their home purchase. If your home won’t appraise for the purchase price the sale will likely fail.

2. No Showings

Today’s sophisticated home buyers are well educated about the real estate market. If your home is overpriced they won’t bother looking at it, let alone make you an offer.

3. Branding Problems

When a new listing hits the market, every agent quickly checks the property out to see if it’s a good fit for their clients. If your home is branded as “overpriced”, reigniting interest may take drastic measures.

4. Selling the Competition

Overpricing helps your competition. How? You make their lower prices seem like bargains. Nothing is worse than watching your neighbors put up a sold sign.

5. Stagnation

The longer your home sits on the market, the more likely it is to become stigmatized or stale. Have you ever seen a property that seems to be perpetually for sale? Do you ever wonder – What’s wrong with that house?

6. Tougher Negotiations

Buyers who do view your home may negotiate harder because the home has been on the market for a longer period of time and because it is overpriced compared to the competition.

7. Lost Opportunities

You will lose a percentage of buyers who are outside of your price point. These are buyers who are looking in the price range that the home will eventually sell for but don’t see the home because the price is above their pre-set budget.

Most buyers look at 10-15 homes before making a buying decision. Because of this, setting a competitive price relative to the competition is an essential component to a successful marketing strategy.

This year it seems even more important to be prepared- an earthquake, tornado, and now floods are definitely a reminder to be prepared for the unexpected.

1.Add a second layer of insulation to your attic. R-30 insulation is considered the minimum. If your house is relatively new, it probably conforms. If not, consider adding insulation.

2.Caulk around window and door glass and trim, and all exterior trim. Install or replace weather stripping on all doors and windows. Check for cracks around pipes and electrical outlets entering or exiting the walls.

3.Install storm windows and doors if you have them. Consider purchasing storm windows if you have older windows that are not made from modern insulated glass.

4.Have your heating system checked by a licensed heating/air-conditioning professional. Most furnace manufacturers recommend at least annual inspections.

5.Check gutters and clean them if necessary. Clogged gutters can result in basement flooding when the snow melts.

6.Replace any roof shingles that are missing or damaged

7.Have your chimneys inspected by a chimney service and, if necessary, cleaned 8.Check the foundation for areas where water may puddle.

9.Trim trees away from the house. Have dead trees and branches removed by professional tree trimmers, or do it yourself.

10.Drain and shut off outdoor water faucets.

11.Insulate any water pipes that are exposed to freezing cold.

12.Replace the batteries in carbon monoxide and smoke detectors, and check to make sure these are all in working order.

13.Check fire extinguishers and charge and replace as necessary.

14.Make sure you are stocked with rock salt, sand, snow shovels and any other items you will need during the winter.

If you plan to buy in 2011, here are few steps to add to your purchase plan:

1. Find an Agent: Working with the Pattee Mac Group  can save you time, effort and money.  There is no cost to the buyer for working with an agent. It is important that you trust your agent as you will be spending a lot of time together and your agent will be handling very important negotiations on your behalf . This is where the Pattee Mac Group can help you. We have a lot of great tools to help you find your new home.
2. Get Pre-Approved: This is an absolute must and it needs to be your first step. How will you know what to look at if you have no idea what you can afford? Additionally talking to a lender ahead of time can you alert you to any issues that might be on your credit report allowing you time to correct any blemishes prior to submitting an offer. If you do not have a lender we have a list of preferred lenders who we have worked with we would love to send you their information.
3. Think About How You Want to Live in Your House: Do you like to cook? Do you like to entertain? Will you be working from home? Do you need a quiet place to read? Do you need a place for a crafts or woodworking? Do you like to garden? Do you travel a lot and need a carefree oasis with little upkeep? The house you buy will affect the life you live. To make sure you are on the right track, it is a good idea to make a list of what you need in a new home.
4. Look At a Lot of Pictures: Once you understand what you are looking for in a new home, it is important to check out the inventory in your area so you know what to expect. You can start by looking online. Pictures can’t tell you everything about a house, but searching online is a necessary early step and will help you stay on top of the all the inventory coming on the market. There are lots of websites out there that provide free access to listing inventory but real estate agents can give you direct access to the MLS and can set up a search that matches your criteria exactly and notifies you when a listing matching your criteria hits the market.

One way is by reducing energy costs. Begin by looking around your home. You will need to make a small investment in improving the energy-efficiency of your home, but in the long run it will pay dividends. Many local utility companies will do an energy audit on your home for little or no cost. Start by calling them. Or visit www.energysavers.gov and click on Your Home for tips on energy assessments.

Common areas that can be improved to reduce gas and electric bills are sealing window leaks, adding insulation and having your air conditioning unit tuned up. If you need a new air conditioner or hot water heater, tax rebates are available this year. These two units use the most energy in a home so updating them with more efficient technology can pay off the most.

Secondary are your home appliances. Check to make sure refrigerators are not too cold (37 degrees is recommended for refrigerator, 3 degrees for freezer). And only run washing machines and dishwashers with full loads. Outside the home, keep gas prices down by checking GasBuddy.com or GasPriceWatch.com for the best prices in town (or downloading the apps on your smartphone). Fill up your tank on Wednesday or Thursday before 10 a.m., recommends Chris Faulkner, CEO of Breitling Oil & Gas. Gas prices rise on Thursdays in anticipation of weekend travel, he says, and 10 a.m. is when most station owners make their price change for the day. Unless it is an emergency, do not buy gas Friday, Saturday or Sunday.

Whether driving to work or to a vacation, take only what you need. Every 250 extra pounds in a car eats up an extra mile per gallon of gas, Faulkner says.

Making money doesn’t all have to be earned. Adjusting habits is an easier way to get more money for summer fun.

“Your Real Estate Consultant…For Life” Pattee

“Your Real Estate Consultant…For Life” Pattee

Your Real Estate Consultant…For Life Pattee

Did you know?

The national holiday, Presidents’ Day, was originally a commemoration of George Washington’s birthday. America’s first president was born on February 22, 1732. After Washington’s death, our nation began celebrating his birthday as a way to remember his life and how he contributed to establishing America’s independence.

In 1865, the year after Abraham Lincoln was assassinated, America began celebrating Lincoln’s birthday on February 12th. Until 1971, both February 12 and February 22 were observed as federal public holidays. In 1971, President Richard Nixon combined the two holidays into one and ever since we have honored all past presidents on the third Monday of February.

“Your Real Estate Consultant…For Life”  Pattee