Preparing to Sell Your Home: How do I Clear the Clutter When Staging my Home?

When it comes to home staging, less is more, and that includes clutter. Clutter is not only visually unappealing, but it makes the house feel smaller and less spacious. Additionally, clutter makes it difficult for prospective buyers to visualize their own furniture and belonging in the home -- a critical step to making a sale.

Follow these tips to make sure your home is completely free from clutter:

• Make sure the lawn, driveway and sidewalk are free of toys and other obstacles.
• Trim the hedges and keep the yard ornaments to a minimum.
• Trim low hanging branches or unruly hedges and make sure the area surrounding the house is easy to navigate and free of clutter.
• Inside, make sure toys, pet objects, dishes and other common eyesores are stored in their proper places.
• Organize closets, pantry and the laundry room. Many home sellers pick up the clutter around the house only to try to hide it away in closets. Yet prospective buyers almost always look inside the closet, pantry or other storage areas to determine if there is enough space for their own belongings.
• Clean out the shed, garage or other utility buildings. If your shed or garage is packed full, have a yard sale or rent storage space until the house is sold. Allow people to visualize a space for their own belongings.
• Don't forget small spaces like medicine cabinets, under the bathroom sink and in the refrigerator. These are common areas of clutter that should be clean and appealing.
• If you have outgrown your home, put some of your furniture and belongings in storage when showing the home.

If you need help organizing or staging your home, I can provide you with qualified resources. Call me at 317.777.1805 or email me at Scott@LacySells.com.

Preparing to Buy a Home: What Should I Expect at Closing?

Together we have found your house, made the offer and signed a contract. After months of real estate negotiations, inspections and anticipation, the closing is scheduled. But what exactly happens at a closing?

Usually, a title company, attorney or independent settlement agent hosts the closing. The agent ensures that there are no existing claims on the home during the transfer, and facilitates document signing and payments.

Keep in mind the following tips:

• Request an estimate of closing costs before you even apply for a loan. Shop around and obtain multiple estimates of closing costs from the lenders you are considering, just as you would shop interest rates.
• Make sure there is no significant increase in closing costs from the good faith estimate (GFE) to the HUD-1 settlement statement. Ask the lender to explain and justify any fee with which you disagree or do not understand.
• Understand that closing costs are negotiable, that you may be able to get them lowered. However, you should also understand that when a lender is willing to give you a break on closing costs, they will often simply bump up the interest rate incrementally so that you end up paying about the same amount for the loan over time.
• Ascertain if your seller is willing to pay some or all of the closing costs.

The property officially changes ownership at the closing. Buyers agree in writing to the terms of the mortgage, acknowledge that they accept the home in its current condition, and pay the remaining funds owed to the seller. Sellers who offer monetary credit settle up at the closing and pay the listing and sales agents from those funds.

When the signing and payments are complete, you'll receive the keys to the front door. Welcome to homeownership!

As your real estate agent, I will be there from listing to closing. Call me at 317.777.1805 or email me at Scott@LacySells.com.

Should I Tap Into My Home’s Equity?

Before obtaining a home equity loan or applying for a line of credit (HELOC), first determine if you have enough equity, then consider the pros and cons before making your final decision.

Estimating Home Equity

• Begin by finding comparable homes in your area – those that are roughly the same age, square footage, amenities and construction type.
• Examine recent sales data, which is typically available via the local clerk of the court, property appraiser or real estate agent.
• Have your home appraised. An appraiser will take into consideration the land, location and surrounding area in addition to the overall appearance of the home.
• You may also use an online home equity loan calculator.

Benefits of a HELOC

You may benefit from a home equity loan or HELOC is you can say “yes” to the following items:

• My credit is good and I qualify for favorable rates.
• I have equity in my home to draw upon in a time of need.
• I carry a very low deductible on my homeowners insurance and my rates have increased. Some homeowners find it beneficial to increase the deductible on their insurance policy and keep a HELOC available in the event of emergencies.
• I sporadically need large sums of money for short periods of time. For example, to fix up a project and then resell it.
• I currently rely upon high interest credit cards or other loans for short-term or revolving loans.

 

Questions to Ask Before Obtaining a HELOC

Use this checklist to make sure you have asked the pertinent questions when shopping for a HELOC:

• Is there a pre-payment penalty? If yes, what are the terms?
• What is the draw period and is an initial draw required?
• Is there a monthly or annual limit on the number of draws?
• What is the minimum draw amount?
• What methods are acceptable for accessing funds (debit card, checkbook etc.).
• What are the total fees and costs?
• How frequently can the rate adjust?
• What is the interest rate cap?
• What triggers a demand for payment in full?
• Are there transaction fees and if so, how much?

 

When Not to Tap Home Equity

Properly used, home equity loans or a home equity line of credit can be powerful tools. But there are times when it makes more sense to resist the urge to tap into home equity. Before making a final decision, be an informed consumer and understand the consequences to your financial planning. If you answer “No” to any of these items, now might not be the right time to tap into your equity.

• You live in an area with stagnating or depreciating home values.
• You intend to sell your home.
• You intend to buy another home or obtain financing in the near future.
• Your personal or financial situation is not stable.

If you have any questions about accessing your home’s equity, call me at 317.777.1805 or email me at Scott@LacySells.com.