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It’s Time to Sell Your Home - Here is Why

by Melissa Thompson

Selling your home is a huge decision and one that should not be made impulsively.  If you are thinking about selling, but you’re not sure if you should, here are some signs to look for that will indicate that now is a good time to sell:

- Space is an issue.  Has your family grown since you bought your current home?  Do you have multiple people sharing bedrooms and bathrooms?  If your house is bursting at the seams, it might be time to let it go and find something a little bigger.  Alternatively, perhaps you have too much space.  If you bought the home when your family was large and now you are an empty nester, you may be ready to downsize.

- Neighbors are selling homes successfully.  If houses are selling like hotcakes in your neighborhood and your neighbors are making tidy profits on their sales, then that’s a cue that you should contact a Realtor to find out what your home is worth on the current market.

- Interest rates are low. When interest rates are low it is an advantage to sellers because a larger pool of eligible buyers can be expected.  Add to that the fact that the current inventory of homes for sale is low, and you have a seller’s market that will make your home even more desirable to prospective buyers.

- Remodeling won’t be worth it.  Maybe you want to stay in your current home and you think that remodeling is the answer.  But will the expense of remodeling to fulfill your wants and needs be worth it in the long run?  Will it add value to your home?  While you might have to do some updates to prepare your home for sale, if the market favors sellers, you might be better of selling and finding a new home to suit your needs.

- You’re confident the market is strong.  It’s important to educate yourself about what’s going on in the real estate market before you decide to put your house on the market.  An experienced Realtor like Melissa Thompson can help you understand the market and determine if now is the time to sell your house.

All signs are currently pointing at this being a good time to sell.  Contact the professionals at Your Key to Memphis and they can help you get your house on the market and sold for the best possible price! Call them today at 901-756-8900.

The Power of Negotiation

by Melissa Thompson

The Lost Art of Negotiation in the world of real estate is unfortunate because the truth of the matter is, if you don’t ask…you don’t get. While sellers want the highest price and buyers want the best deal, they must meet somewhere in the middle for the deal to close. Negotiation is a vital part of selling or buying a home because it is the largest asset people own and there is a lot of money at stake. Here are some guidelines for what sellers and buyers might ask for in real estate negotiations:

Price

Negotiating the best price means different things for sellers and buyers.  The seller wants the highest price and the buyer wants to pay as little as possible.  For a successful transaction, they must compromise and come up with a price that is acceptable to both.

Closing Costs

Prepaid closing costs are paid by buyers for their mortgage.  These are funds that the mortgage lender holds in escrow for expenses like taxes and insurance.  A buyer may ask a seller to cover some or all their closing costs either with a flat dollar amount or up to a percentage of what’s an allowable contribution for a lender.  If a buyer asks the seller to do this, they are likely going to pay a higher asking price.

Closing Date

Sometimes sellers want to get out of a home quickly because they need the capital from the house they are selling to put toward a new real estate purchase.  The closing date will also affect the buyer’s monthly cash-flow because when a buyer closes on a house, they skip the next month’s mortgage payment, therefore they may want to negotiate to close at the beginning of a month.

Financing Contingencies

When there is a financing contingency in place for a real estate transaction, it can tie up a seller’s property for a required 30 to 60 days.  For this reason, many sellers prefer buyers coming to the table with cash offers. If you are competing with cash buyers, you may want to figure out if you can drop the financial contingency, which will shorten the closing time line. You can do this by getting pre-approved for a home loan prior to making an offer.  Mortgage Preapproval shows that your finances are in order and you can afford the home.

Home Warranty

As a buyer, you can request a home warranty. As a seller, you can offer one. This home protection plan covers things like appliances and systems such as the hot water heater or air conditioning, in the event they need repair or replacement.

Leaseback

The moving process is stressful and labor intensive.  Sometimes a seller will need extra time to get into their new home.  When this happens, buyers can offer a zero-cost rent-back for 30 to 90 days to persuade the seller to accept their offer over others. 

Home Repairs

With a home that needs a lot of updating there comes ample opportunity for negotiation. Buyers need to consider the cost of bringing the home up to current standards and use the estimate of that cost to request a lower asking price.  The seller, on the other hand, can specify that the house is being sold “as is” and not offer any repairs.

Appraisal Contingency

A seller can push for a buyer to waive the appraisal contingency, however, if for some reason the appraisal falls short of the expected amount, they need to be prepared for the amount of cash they might have to pay should the bank only be willing to lend them money based on the appraised value.

Furniture

Personal property such as patio furniture, window treatments and chandeliers are all up for grabs. The buyer can ask for these things to be included in the contract. Sellers need to determine what they are willing to leave behind.  And any exclusions need to be specifically listed in the contract as well.

Appliances

Depending on the market, sellers don’t always leave every appliance for the buyer.  They may include the dishwasher, stove and built in microwave in the contract but not the refrigerator, washer, and dryer.  Sometimes they don’t want to give everything away up front so that they can use these as items for negotiation.

Inspection

When sellers waive inspection, they often find themselves with "buyer's remorse", but they can try to shorten the time frame for inspection, from ten days to five.  However, today’s lending practices and the TILA RESPA Integrated Disclosure (TRID) make this hard to do.

Condo/Co-op Assessments

These are fees that are used to maintain common areas in a community. If there is an open assessment, it can become a negotiation between the buyer and seller as to who will pay for it.

If you are looking for a professional Realtor to negotiate the best deal for you, call Melissa Thompson at 901-756-8900 today and let her help you with all your real estate needs!

Photo Credit: slideshare.net

Making House Guests Feel at Home

by Melissa Thompson

Many people travel to visit family and friends during the summer.  If you are expecting house guests, you will want to prepare your home so that is comfortable and welcoming.  Here is a list of things to do before your guests arrive:

  • Buy Fresh Flowers - Even if you don’t keep fresh flowers in your home all the time, it’s nice to splurge a little to have them for your guests. You don’t have to spend a lot of money. You can often find lovely bunches of flowers at your local grocery store.  If you have a green thumb and grow flowers in your yard, that’s even better! Just clip some and place them in pretty vases around the house.
  • Clean Out and Restock the Refrigerator - Get rid of any lurking left-overs as well as any condiments that have passed their expiration.  Plan your meals for the duration of the visit and Stock the Fridge accordingly. Make sure you know your guests’ dietary needs and allergies prior to their arrival.
  • Make a Spare Key - Unless you plan to spend every second of the visit with your guests, you will want to give them a key so that they have the freedom to come and go if you are not home.
  • Have Extra Toothbrushes on Hand - You will be doing your guests a great favor by having extra personal items on hand in case they have forgotten something.  There is nothing worse after arriving from a long trip than having to go back out to purchase forgotten items.  Other items to have on hand: razors, deodorant, feminine hygiene products etc.
  • Clean Out the Guest Room Closet - If you’ve been using your guest room closet for storage, now is the time to clean it out.  Even if you don’t clear it out completely, make sure there is enough space for your guests to store their bags and hang clothes.
  • Clean Up the Clutter -  Having a cluttered home might be ok when it’s just you and your immediate family, but you will want to have a neat and tidy home for your guests.  You don’t have to go overboard.  You can leave out things you use daily, like the bag of dog food or the tv remotes. But put other extraneous items away for the duration of their stay.
  • Wipe the Ceiling Fan Blades - There are some things that often get overlooked in your normal cleaning routine.  Make sure to wipe down the ceiling-fan blades along with other nooks and crannies you might have missed before.  It’s also a good time to change your air filters if they haven’t recently been changed.
  • Replace Shower Curtain Liner - If you haven’t changed your shower curtain liner in the  guest bathroom recently, check it to make sure there is no mildew.  Liners are inexpensive and new one will give the bathroom a fresh feel. 
  • Prepare Guest Bath - Speaking of the Guest Bathroom - make sure it is fully stocked with plenty of toilet paper, facial tissues, shampoo, conditioner and body wash.  Splurge on some fragrant fancy soaps to place on the sink. Provide a stack of freshly laundered towels so that your guests don’t have to go looking for them.

Having guests in your home can be a little stressful sometimes. Preparing for their visit ahead of time will alleviate some of that stress so that you can enjoy their visit to the fullest!

If you are in the market to buy or sell a home in the Memphis area, contact professional Realtor, Melissa Thompson and let her help you with all your real estate needs. Give her a call at 901-729-9526 today!

Photo Credit: littlehouseliving.com

Holding an Open House - Worth it or Not?

by Melissa Thompson

Home owners and Realtors often debate whether having an open house is beneficial or not.  Some sellers will insist that having an open house is the best way to sell their home, while others will want nothing to do with having potential buyers traipse through their home.  Real estate professionals have different views on this topic as well.  Some swear by open houses and feel they are critical to sales, while others never hold them and some just have them occasionally.

So, the question remains…if you are selling your home, should you hold an open house?  Here is a list of pros and cons to help you make that decision:

Pros to holding an open house:

  • Attract buyers who may not know how to start the home buying process. Purchasing a home is a process that many people are not familiar with, especially first-time home buyers. People new to home buying will need a significant amount of guidance and advice.  A positive that may result from having an open house is the possibility of a buyer who doesn’t know where to start coming to see your home.  You may also get the attention of potential buyers who just happen to drive by and see the sign for the open house. 
  • Additional exposure.  One of the most important jobs of a  Realtor representing sellers, is making sure their clients’ home is getting ample exposure.  Open houses can give extra exposure through promotional advertising such as street signs, newspaper ads and internet ads.
  • Allows buyers to look at house without feeling pressured.   With the laid-back atmosphere of an open house, prospective buyers will feel more comfortable looking around with little to no pressure from the Realtor or seller.  An interested buyer might want time to analyze the home in detail without someone looking over their shoulder.  It also provides the buyer time to look at specific details of the home that will help them decide if it is the right house for them.

Cons to holding an open house:

  • Slim chance of a sale.  The truth is that a very small percentage of homes sell as a direct result of an open house.  Honestly, the person that benefits most is the Realtor.  Open houses provide the Realtor with potential clients.  Private showings of your home are much more likely to result in a buyer than open houses.
  • Unqualified buyers.  One of the first steps in the home buying process is obtaining a Mortgage Pre-Approval .  Getting a mortgage pre-approval is essential for knowing what you can afford when buying a home.  At an open house, you may find many people walking through your home who can’t afford it.  It is a waste of time for you and your realtor to have people looking at your home when they cannot afford to possibly purchase it.
  • Nosy neighbors and “Looky Loos”. Open houses often attract inquisitive neighbors who simply want to see your house and compare it to their own.  They also might just want to see how you have your home decorated.  “Looky loos” are people who go to open houses with no intention of buying a home.  They just like to look!

The pros and cons of having an open house should be carefully considered before deciding whether to have one. With today’s technology and social media, there are a lot of other ways for people to see your home, but with the right Realtor holding the open house, it can still be the best way to impress potential buyers.

If you’re thinking about putting your home on the market, contact Melissa Thompson and let her explain how an open house can be beneficial for you.  Call her today at (901) 729-9526 or (901) 756-8900.

Photo Credit:sehatcoy.com

Pool Safety for Summer Fun!

by Melissa Thompson

With summer fast approaching, it’s important to make sure your backyard pool is a safe place for family fun.  Tragically, over 200 children drown in backyard pools each year, so make pool safety a priority by following these guidelines;

- Secure your pool with Appropriate Barriers.  Surround your pool completely with a four feet high fence or barrier that has a self-closing and self-latching gate. Place a safety cover on the pool or hot tub when it is not in use and remove any steps or ladders used for access.  Consider using a pool alarm that sounds if anyone enters the pool area.

- Always actively supervise children in and around the pool.  Stay within arm’s length of young children.  Make sure there is a designated person to watch the water when people are in the pool.  And never let anyone swim alone.  Young or inexperienced swimmers should use U.S. Coast Guard approved life jackets.

- Ensure that everyone in the home knows how to swim well by enrolling them in swimming lessons.

- Keep your pool/hot tub water clean and clear.  Maintain Proper Chemical Levels, filtration and circulation.  Regularly test and adjust chemical levels to minimize the risk of earaches, rashes and other, more serious diseases.

- Establish and enforce Swimming Pool Rules such as “no diving”, “stay away from drain covers”, “swim with a buddy” and “walk please.”

- Make sure that everyone in the home knows how to respond to aquatic emergencies by having appropriate safety equipment and taking water safety, first aid and CPR courses from The Red Cross.

Learn more about swimming pool safety by watching this Home Pool Safety video developed by The Red Cross and the National Swimming Pool Foundation.

If you are considering buying or selling a home this summer, call Melissa Thompson at 901-729-9526 and let her help you with all your real estate needs!

Photo Credit: cheatsheet.com

Selling this Summer? Tips for Success

by Melissa Thompson

Spring is flying by and soon summer will be upon us.  Summer is not the most popular time to sell a house for several reasons: people are going on vacation, kids are out of school, and activities keep you busy.  But sometimes the timing cannot be helped.  Life happens and circumstances may require that you move during the hottest season.  If that is the case, here are some tips for attracting buyers during the summer months:

  • CURB APPEAL

Make a great first impression with curb appeal.Mow your lawn twice a week. Grass grows faster this time of year and needs mowing more often.Try mowing diagonally every other time to add dimension to your lawn.Make sure bushes are trimmed and plant flowers.Keep your porch, sidewalk and driveway swept and create a warm and inviting entryway to your home.

  • DECORATE WITH SUMMER ACCENTS

Utilize calming colors such as blues and greens to decorate the interior of your home.If you have dark-colored accent pillows and throw rugs replace them with brighter summer hues. Keep it simple.You don’t have to spend a lot of money; something as basic as an inexpensive blanket draped over a chair can give a room a soothing vibe.

Top 21 Summer Colors and How to Use Them

  • BRING THE LIGHT INSIDE

If you have heavy drapes, remove them. They make a room look smaller.Pull blinds all the way up.Use tie backs to open lighter curtains.The only time you should leave blinds/curtains closed is if there is an undesirable element on the other side of the window such as your neighbor’s trash can…but even then, keep them slightly open to allow light into the room.

  • HAVE FLEXIBLE SHOWING HOURS

Showing your home while still living there is challenging, but the more flexible you are, the more people will look at your house.

  • SPARKLE AND SHINE

Metals give a “summery” feel.It doesn’t matter which ones; gold or silver, brass or pewter.Mix and match them using vases, picture frames, mirrors, utensils, goblets, hanging planters etc. How to Rock a Mixed Metal Decor Palette

  • OFFER SUMMER BEVERAGES AND SNACKS

Fill your kitchen sink with ice and have chilled drinks available for visitors.Have a few light snacks for them to enjoy.Have bowls filled with citrus fruits to brighten up your kitchen and give it a sunny feel.

  • CREATE GOOD SMELLS NATURALLY

There are a lot of ways to bring summer scents indoors. Pleasant, fresh aromas will make your home feel inviting and comfortable.

  • CONTROL THE INDOOR TEMPERATURE

If you are one to be stingy with the air conditioning, now is the time to stop. It will be worth the tiny increase in your electric bill to have your home be at a comfortable temperature for visitors.There is nothing worse than walking into a stuffy, warm house when it is hot outside.

If you’re thinking about selling your house this summer, let the professionals at Your Key to Memphis help you get your house on the market.  Give Melissa Thompson a call at 901-729-9526 today!

Photo Credit: pinterest.com

Renovating Your Kitchen - Making It Timeless and Functional

by Melissa Thompson

Have you been thinking about remodeling your kitchen, but you’re not sure where to start?  Kitchens are important to resale value, so if you’re going to invest money in a remodel, you want to be sure that you end up with a kitchen that will stand the test of time.  So, instead of following fads that are currently popular, stick with classic features that will not only bring you joy, but will entice buyers should you ever sell your home.  Here are some tips for creating a kitchen that is timeless and functional:

 - Brighten up your kitchen using white as the dominant color. White is the most marketable color and never goes out of style. It is associated with happiness and new beginnings.  It makes small spaces look bigger.  And best of all, it’s easy on the budget due to its availability.

 - Install hardwood flooring. Hardwood floors are popular among buyers of any age; both male and female.  Hardwood adds warmth and coziness to a home.  It’s great for open floor plans because it flows beautifully from one room to another. It’s durable and long-lasting. And if “going green” is important to you, hardwood is echo friendly.  It’s considered a “green” building material when it has been certified by the Forest Stewardship Council and comes from sustainably managed forests.

 - Choose cabinets that have clean lines, like Shaker Kitchen Cabinets.  The clean lines of these cabinets will be in style forever. Their beauty is in their simplicity.  They help limit the “busyness” of the kitchen, creating a soothing, peaceful vibe.  They also transition easily should the next homeowner want a change of style.  Whether you want a traditional or contemporary look, these cabinets will work for both.

 - Go with marble countertops; specifically, Carrara Marble.  Carrara marble has been used in homes for centuries.  It looks fantastic in a white kitchen, but also with other colors. It’s affordable and readily available and will last for generations.  You will find some critics who will tell you that it stains easily, but that can be avoided with proper sealing. If you want a truly timeless look, Carrara marble is the way to go.

 - Include smart storage.  If you currently store many of your kitchen supplies in other areas of the home due to lack of storage space, now is the time to change that!  Cabinets that are being made today feature a plethora of storage options including shelves and compartments that unfold, extend, slide and turn.  Have fun and be creative when designing kitchen storage.

You will love your new kitchen and future potential buyers will find it irresistible!

If you are considering selling your home, let Melissa Thompson and the Your Key to Memphis Team guide you through the process.  Give them a call at 901-756-8900 today!

Photo Credit: cnceptz.com

Selling a Home Due to Divorce

by Melissa Thompson

Moving is one of the top five most stressful life events. Divorce ranks in the top five as well.   Put those two together and you have a meltdown in the making.  If you and your spouse own a home together and you are divorcing, you are going to have to figure out what you’re going to do about the house.  This can be challenging under the most amicable of situations, and can be devastating when there is bitterness and fighting.

Since your home is likely the greatest asset that you share, selling it is often necessary when parting ways.  Sentimental value may entice one or the other of you to want to keep the home, but financial implications may keep you from doing so.  Understanding how divorce affects the sale of a home is crucial.  The emotional aspect of splitting up your family can sometimes impair your judgement, but making a poor decision regarding your home can have lasting ramifications, long after the divorce is finalized. 

Whether one spouse wants to buy out the other and keep the home or both want to sell and split the equity, selling a house while getting divorced is a rocky road that needs to be navigated intelligently.  When two people are willing to deal with each other in a peaceful, respectful way, it certainly makes the whole process easier. But often this is not the case in these situations.  Division of a home is not simple. 

When each spouse contributed to purchase the home - even if one paid more than the other - you are both going to want your fair share out of it.  Ideally, you will be able to work with an attorney or mediator to come to an agreement out of court, but if you can’t, a judge will decide for you.  This can be a very unpleasant experience for all parties involved.  If both your incomes were factored in the purchase of the house, chances are when you split that in half, neither of you can afford it on your own. If that is the case, the best solution is to sell the home and divide the assets.  There are also Tax Implications  that should be considered when you are trying to decide if you should sell before you divorce or after.

Should one of you decide to stay in the home, there are a couple of different ways to make that happen.  First, if you have the financial means to do so, you can take over the mortgage by refinancing.  This means you must qualify for the loan and be able to make the monthly payments on your own.  Your ex-spouse will be completely out of the picture.  Another way is to continue co-owning the property.  Perhaps you have children and want to keep them in their home. While this is the least disruptive option, it is precarious and requires a lot of trust.  It would have to be a very civil and friendly divorce for this to work because both parties will be responsible for the mortgage and upkeep of the house.  The bottom line is that if you plan to stay in the home, you better be sure you can afford it.  It would be prudent to work out a budget before you make the decision.

With all the financial and emotional issues that get wrapped up in the sale of a home during divorce, it’s crucial that you know what you want prior to meeting with your Realtor. It is best for you to meet with your attorneys for them to guide you through the process of deciding how to split the equity. Once you have that done, seek out an experienced Realtor like Melissa Thompson, who will gently guide you through the process with as little stress as possible.

Photo Credit: movingforwardthroughdivorce.com

Budget Friendly Curb Appeal

by Melissa Thompson

Looking to spruce up your curb appeal, but don’t want to spend a fortune?  There are lots of ways to improve the look of your home’s exterior without breaking the bank.  You might be surprised by how much difference small projects can make.

  • Paint the front door, trim or shutters.  With Exterior Paint costing about $30 a gallon, painting is an economical way to brighten up your house.  Choose a color that pops, yet compliments the overall color of the home.  Make sure to properly prep all surfaces before you paint so you’ll get great results that will last for years to come. 
     
  • Upgrade your mailbox. If your current mailbox is looking shabby and old, you can fix it up or replace it at minimal cost.  You can find new mailboxes for as little as $20.  When installing a new mailbox, make sure to follow guidelines set forth by the city you live in. 
     
  • Plant a tree.  This is a common and easy way to beautify your yard.  When choosing the tree, be sure to consider how big it will get to make sure it is a good fit for your space.
     
  • Replace exterior lighting.  This is an easy way to upgrade the style of your home.  Exterior light fixtures can be found anywhere from $20 and up.  You may also be able to find unique, Vintage Lighting at second hand stores and salvage shops.  Make sure that whatever you choose, they adequately illuminate your entryway and make it safer.
     
  • Install flower boxes.  If you want to add color to your exterior, but don’t to paint, this is the way to do it!  They can be installed on front porch railings or below the windows. Window boxes are relatively inexpensive or can be built and installed in no time.  Choose flowers and plants that are easy to maintain and that will keep away pesky insects so that you can enjoy spending time outdoors.

These small, simple improvements can make a huge difference in the curb appeal of your home. Also, if you’re thinking about putting your house on the market, you will make a great first impression on potential buyers! Let Melissa Thompson and her team of professionals help you get your house listed and sold.  Call them today at 901-756-8900.

Photo Credit: lowes.com

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A New Housing Bubble Forming…Not Before 2024!

by Melissa Thompson

A recent report by CoreLogic revealed that U.S. home values appreciated by more than 37% over the last five years. Some are concerned that this is evidence we may be on the verge of another housing “boom & bust” like the one we experienced from 2006-2008.

Recently, several housing experts weighed in on the subject to alleviate these fears.

Sean Becketti, Freddie Mac Chief Economist

 “The evidence indicates there currently is no house price bubble in the U.S., despite the rapid increase of house prices over the last five years.”

Edward Golding, a Senior Fellow at the Urban Institute’s Housing Finance Policy Center

 “There is not likely to be a national bubble in the way that we saw the first decade of the century.”

Christopher Thornberg, Partner at Beacon Economics

 “There is no direct or indirect sign of any kind of bubble.”

Bill McBride, Calculated Risk

 “I wouldn’t call house prices a bubble.”

David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices

 “Housing is not repeating the bubble period of 2000-2006.”

A recent article by Teo Nicolais, a real estate entrepreneur who teaches courses on real estate principles, markets, and finance at Harvard Extension School concluded that the next housing bubble may not occur until 2024.

The articleHow to Use Real Estate Trends to Predict the Next Housing Bubble, looks at previous peaks in real estate values going all the way back to 1818. Nicolais uses the research of several economists. The article details the four phases of a real estate cycle and what defines each phase.

Nicolais concluded his article by saying:

“Those who study the financial crisis of 2008 will (we hope) always be weary of the next major crash. If George, Harrison, and Foldvary are right, however, that won’t happen until after the next peak around 2024. 

Between now and then, aside from the occasional slow down and inevitable market hiccups, the real estate industry is likely to enjoy a long period of expansion.”

Bottom Line

The reason for the price appreciation we are seeing is an imbalance between supply and demand for housing. This has created a natural increase in values, not a bubble in prices.

Let’s the expert’s at The Melissa Thompson Team help you with all your Real Estate needs. 901-729-9526 or Melissa@YourKeyTomemphis.com. 

By: KCM Crew

YOUR HOMESEARCH STARTS HERE            FIND OUT WHAT YOUR HOME IS WORTH  

Displaying blog entries 1-10 of 124

Contact Information

Photo of Melissa Thompson Real Estate
Melissa Thompson
Crye-Leike Realtors
6525 N Quail Hollow Road
Memphis TN 38120
(901) 729-9526
(901) 756-8900
Fax: (901) 435-0620