When Should You Accept A Low Bid?

If you are selling your home and are motivated to get the deal done quickly, you may be tempted to accept a low bid. Whether you need to sell because you are being relocated or need to downsize to save your financial investment, there are several things you should consider before accepting a bid that is below your asking price. Here are a few tips on making that decision a bit easier.

How Motivated Are You?

The decision to accept a low bid should always be influenced by your actual financial position rather than simply wanting a quick sale. If you are in a situation in which you may lose your home due to foreclosure, accepting a low bid may be your only option. If, on the other hand, you are simply tempted to take a low bid because it is more than you originally paid for the home, you may want to reconsider. For most people, the motivation will lie somewhere in the middle, and balancing your motivation to sell and the potential financial loss of accepting a low bid should be carefully evaluated.

Avoid Becoming A Motivated Seller

The best way to sidestep having to take a low bid is by avoiding the position of being a truly motivated seller in the first place. If you are having trouble paying your mortgage, be sure you have exhausted any refinancing options that may exist. Another common reason people feel obligated to accept a low bid is that they have already purchased a new home and do not want to be in the position of paying two mortgages at once. So before purchasing a new home, first sell your existing home.

No matter your reason for considering accepting a low bid for your home, be sure you get the advice of both a REALTOR® and a financial advisor to ensure you are making the right decision. 

Have more tips? As always, I look forward to hearing your thoughts!

Be well,

Rhonda

PS. Thinking of buying a home or selling yours? I'd love to sit down and talk with you about the process and the market. You can reach me anytime at 401-326-2928. 

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What Season Is Best To Sell?

So you are ready to sell your house, but you look out the window and see several feet of snow on the ground. Should you bother putting your house on the market in the winter, or should you wait until spring? Is there a better season in which to sell your home? The answers to these questions depend on a few basic factors.

Where You Live

In a place where the climate is very cold in the winter, it can be wise to wait until spring to sell, because fewer buyers will be venturing out to look at homes. In an area where the sun shines year round, weather is not a concern, and people will have no trouble coming out to see your house. This doesn’t mean, however, that season doesn’t matter in a warm climate! It can still affect how many potential buyers will come out and the odds of selling.

Watch Out For The Holiday Slump

People are usually too busy from Thanksgiving through Christmas to spend much time house hunting, and in January they are often recovering financially from holiday over-spending. Most experts will recommend that you avoid listing your home until after the worst of the holiday slump in the market is over and people are looking to buy again. This is true no matter what the climate!

Particulars Of Your Home

If your home is near a high school, you might want to consider selling in the summer when things nearby are a bit quieter. The noise and traffic of the school year might put some buyers off. If your home is near a lot of fun winter activities, this might actually be a selling point that will be highlighted better in the winter months. Looking for these details of your area and capitalizing on them will help you to get your home sold.

The season does matter when it comes to home buying, and spring is usually a good time to list. Your REALTOR® can help you to determine what season makes the most sense for listing in your particular case, providing you with market information in your area and helping you pinpoint the particulars of your home that make it appealing in a specific season. 

Have more tips? As always, I look forward to hearing your thoughts!

Be well,

Rhonda

PS. Thinking of buying a home or selling yours? I'd love to sit down and talk with you about the process and the market. You can reach me anytime at 401-326-2928. 

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Defining Distinct Spaces In A Large Room

While open-concept homes seem to be the popular trend in the home construction industry, sometimes decorating for large spaces can be a challenge. The flexibility of a large living-dining-kitchen space can allow you to enjoy more time with your family and entertain with ease, but creating a sense of purpose for each space while still maintaining a flow to the room requires a bit of know-how and creativity. You’ve got the space to do it, and here are a few ideas on how! 

Defining Purpose 

The first step in decorating a large open-concept space is to define what you want the space to include. In most homes constructed today this is a large living space with open access to the kitchen, but it can also be a basement or even a single level apartment that will include bedrooms as well. Regardless of the space you’re working with, knowing what kind of living you will be doing in this space is the first step. For most homeowners it will be the challenge of combining a dining room, kitchen, and living room. 

Defining Space 

Once you know the purpose of the space, lay it out. For kitchen-dining spaces, be sure that you keep the dining room space close to the kitchen. It makes serving your guests or family easier, and creates a better sense of flow. The living space should flow with the rest of the room, but making it separate can allow for a cozier feel to the space, and means that you won’t be staring at that pile of unwashed dishes while trying to unwind after dinner. 

Tips For Creating Space 

Now that you know what the space will be, and where each living space should go, here is how to do it! 

Dividers are always a great idea to define space, and are easy to move when entertaining. 

Arrange furniture to define space, such as laying out the living room with the sofa facing away from the dining room or kitchen. 

Create a focal point for each space. It could be a fireplace, painting, or an interesting architectural feature. 

Use the same color scheme, but emphasize different colors in each space. 

These are just a few ways to tackle a large space, but ultimately your home has to work for you. The best tip to keep in mind when defining space in an open-concept home is whether it works for you and your family and, of course, does it reflect your lifestyle! 

Do you have suggestions to add? As always, I'd love to hear your thoughts. 

Be well,

Rhonda

ps. Thinking of buying a home or selling yours? I'd love to sit down and talk with you about the process and the market. You can reach me anytime at 401-326-2928. 

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Garage Sale Tips And Tricks

Getting ready to sell your home? A garage sale is a great way to make a few dollars and get rid of a lot of clutter in your home. With a few simple tips, you can create a garage sale that runs smoothly and makes you more money. 

Getting Ready 

Get all of your things for the garage sale ready to go before the sale begins. Start by organizing everything into categories. Put kitchen items in one section, toys in another, books in another, and clothing in yet another. This will make it easier for people to find your items. Pick up some plastic baskets from the dollar store to fill with small items, and label each basket with a per-item price. This saves a lot of time wasted labeling each and every small item with the same price. 

Wash clothing before you put it up for sale. A clean, nice-smelling piece of clothing is more likely to go for the asking price than a wrinkly one that doesn’t look fresh. If you can, mend any small issues like loose buttons. Give toys a wipe down as well so they look newer and cleaner. 

Start Early 

Garage sale lovers often start out early in the morning, so get up early and get started. You may miss a lot of the bargain hunters if you choose to sleep in, so set the alarm! Have everything ready the night before, set up on tables you can simply push out. Casters are a great way to make this easier. Price things a little higher than you would like to get for them, since all garage sale visitors love to negotiate a better price—this way you can drop prices without losing much. 

Advertise Your Sale 

Advertise your garage sale not just with signs around the neighborhood, but also on the local craigslist page, where many people look for garage sales to visit each weekend. List some of the larger items you have for sale, as some people may be seeking a particular item. 

Consider having a multi-family garage sale with some friends or neighbors. Large sales with a lot to offer will draw in more people, resulting in more sales for you. You can finish off the evening with a barbecue and turn a successful garage sale into a successful weekend event. 

Ready to sell? Call me today for a free market analysis. I'm happy to help in any way I can. Call me anytime at 401-326-2928.

As always, I look forward to your thoughts.

Be well,

Rhonda

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Top Ten Home Showing Tips

For sellers, making your home available for showings is essential to getting it sold. After all, who would purchase a property sight unseen? When a potential buyer stops in, here are ten recommended tips to follow when showing your home:

Tip # 1: Welcome Your Buyers It is a good idea if you leave the home for a short time to allow the buyer to look without feeling restricted by your presence. A potential buyer is less likely to voice any concerns in front of the current owner, which is why it’s better to leave your buyers with the REALTOR®. Typically 30-45 minutes allow plenty of time for your potential buyer to do a thorough tour with feeling rushed. Baking some cookies or bread before you head out will leave your home smelling delicious and inviting.

Tip # 2: Be Flexible Many home buyers are on a tight schedule, whether it be work, school or other commitments. Time is tough to come by, so try to be flexible about allowing potential buyers to tour your home. If you are still living on the premises, it’s especially important that you be ready for last-minute visits.

Tip # 3: Climate Control When a buyer comes into your home, they do not want to feel cold in the winter or overly stuffy in the summer. If you know that your REALTOR® is bringing a potential buyer to tour the home, make sure that the temperature is comfortable. Otherwise, your buyer may not spend as much time in the home as necessary in order to form an accurate opinion. The last thing you want is a buyer who’s in a hurry to leave.

Tip # 4: Quick Cleaning If you have enough time before the buyer shows up, run the vacuum over the floors and make sure that any clutter is cleaned up. A clean home appears larger, while a cluttered one gives the appearance of being too small. If you really want to impress your potential buyers, place that plate of freshly baked cookies on the dining room table.

Tip # 5: Animal Control If you have pets, remove them from the home temporarily or place them in a contained space, such as a kennel, exercise pen or carrier. This will allow buyers to tour the home without being distracted by a nervous animal which could result in a nervous buyer.

Tip # 6: Light The Way Your home should appear open and bright, even if it’s a winter day, so open the curtains and turn on the lights throughout the home. Buyers will not likely be drawn to a dark, dimly-lit house.

Tip # 7: Educate Your Buyers When someone is looking for a home, they are looking for more than the perfect floor plan. If you have recently had the home appraised or inspected, place copies of each report on the dining room table. Purchasing a home is a big step, and buyers will be drawn to a home that has everything out on the table, so to speak.

Tip # 8: Communicate With Your REALTOR® If you want certain aspects to be pointed out during the home tour, tell your REALTOR® what they are. For instance, good neighbors are a big plus to any home, but it’s not something that potential home buyers will see simply by looking at the rooms in your house. If you have wonderful neighbors, ask your REALTOR® to point this out. If you live in a family-oriented neighborhood, let it be known.

Tip # 9: Curb Appeal An important part of showing your home is making sure that the outside looks just as appealing as the inside. When a potential buyer drives up, you want them to be eager to see what else is in store for them. You can do this by paying close attention to your curb appeal. In addition to having a freshly cut lawn and properly maintained flower beds (if applicable), the outside of your home should be free of any clutter and any shrubs should be groomed.

Tip # 10: Be Open To Feedback Once the potential buyer has completed their tour, your REALTOR® will ask them (or their agent for some feedback to share back with you. Though it may be difficult to hear feedback that isn't completely positive, it will help with further showings and keep you on top of buyers' concerns as they compare your home to others. the feedback may pertain to pricing, features, and/or condition.

Your REALTOR® can also offer suggestions on how to put your home in top showing form and find your buyer as quickly as possible!

Have more tips? As always, I look forward to your thoughts!

Be well,
Rhonda

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Give Your Front Porch A Style Makeover!

Whether you are looking to sell your home or just think it’s time for a new look to improve your curb appeal, giving your front porch a makeover is an easy and inexpensive way to give your home’s exterior a fresh look. Here are a few simple ways to spruce up your front porch without taking a bite out of your wallet! 

Dress Up That Concrete Porch 

If your home has a simple concrete porch, there are a number of great ways to give it a more refined appearance that won’t involve replacing it. One option is using concrete paint. Available in many colors and textures, you can create the look of a more expensive stone porch at a fraction of the cost of replacing it. 

Plants And Flowers 

Adding plants and flowers to your front porch is one of the easiest and least expensive ways to add curb appeal to the exterior of your home. Choose plants that are appropriate to the light for your porch, and also choose plants in colors that complement the other colors in the exterior of your home. Select pots that accent the space, and consider quality hanging plants to add interest to windows. 

Final Touches 

One of the easiest ways to dress up your new porch is to choose interesting and complementary final touches. A new mailbox, a handmade or antique-looking street number sign, and a nice welcome mat can all make the space look more homey and finished. If you have the space, also consider adding a few chairs and a small table, or add the nostalgia of a porch swing. 

Creating curb appeal is of vital importance to making your home more appealing to potential buyers, and even if you are not selling your home, it is an easy way to give your home’s exterior a makeover without spending a fortune. And with spring just around the corner, it's the perfect time to spruce up your porch, grab a glass of lemonade, and take a time out from your busy day! 

As always, I welcome your thoughts! 

Be well,

Rhonda

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Decorating With Plants

When choosing a style of furnishing, color scheme, or fabrics for your new home, or when redecorating a room, plants often do not immediately spring to mind when considering what you need to complete your space. Plants can be, however, an inexpensive and beautiful addition to any room, and there are a great number of options that can complement and even inspire any décor. 

Choosing Plants 

Leaf Shape: There is a huge variety of leaf shapes to choose from when considering which plants are right for your room. Broad leaves look great on mantles or as part of larger arrangements, and long leaves can draw the eye up to interesting architectural features. 

Leaf Texture: From spiky to glossy or fuzzy, you can get really creative when selecting a plant that has a texture that matches your space. A prickly cactus would really accent a room that has a southwestern themed décor, or the fuzzy texture of a dusty miller looks great in an entirely white room or as part of a holiday arrangement. 

Color: With plants and flowers available in virtually every color imaginable, this is one area where using plants as inspiration for your wall color or accent colors can truly create a space inspired by nature. 

Matching Plants To Your Space 

What Kind Of Light Does The Room Get? While the size, texture, and color of your selected plant may determine whether it will fit into your décor, taking care that it will get suitable light and is placed in the correct spot will ensure that it will remain a vibrant and lasting part of your space. For those of us who do not have a green thumb (present company included!), silk plants have come a long way and often it's difficult to tell that they are not real.  I've been in quite a few showings where I've had to get close and personal to check whether it was real or artificial. 

Size Of The Space: Whether it is a large open-concept home or a cozy bachelor apartment, choosing plants that fit with the size of the room they will call home can make or break the success of any space. For large rooms consider using an arrangement of plants, or include large indoor trees. In smaller spaces a few well-placed plants with interesting colors or textures can really add interest to your space without overwhelming it.

Pets: Just remember when choosing plants that there are many species that are toxic to pets. Here is a handy guide from the ASPCA to help steer you in the right direction to keep your pets safe from ingesting poisonous plants. 

Plant Care: There are some innovative products available to assist in the care of your houseplants. Check out these 9  handy tools to make caring for you plants super easy! 

Whether you are choosing plants that match your décor or using them as inspiration to reinvent your space, plants can be a beautiful, cheerful, and inexpensive addition to any home. 

So what is your favorite way to use houseplants to embellish your home? 

As always, I welcome your thoughts! 

Be well,

Rhonda

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Unclutter Your Home In Ten Easy Steps!

Clutter, which is defined as things that lie about untidily (I love that definition!), is often linked to creativity. However, Let's face it. Sometimes clutter can easily take over our homes. So, just how much imagination will it take to tidy up your space? To be exact, you can make it happen in ten easy steps.

Step # 1: Set A Schedule 
You are much more likely to stick to a routine, whatever it may be, if you work on a schedule. In addition, this allows you to clean when you can minimize interruptions and maximize your time. Try scheduling one hour a week to tackle on area of your home. You will be amazed how much you can accomplish in that short time frame.

Step # 2: Set A Goal For Each Room 
If you can visualize what you want, you will be better able to achieve it. By setting goals for each room, you can note the things that need changing and work toward that goal one day at a time. It's also a good idea to only tackle on room at a time. If you are working on the clutter in your bedroom today, don't worry about the clutter in the kitchen. Leave that for another day.

Step # 3: Create A Timeline 
When do you hope to have your home completely free of clutter? One week, two weeks or even a month? Depending on your schedule and the amount of clutter that you have, it may take anywhere from a few days to a few weeks before you can kick back and relax again.

Step # 4: Start Small 
The clutter in your home didn’t appear overnight, and it won’t disappear overnight either. If you start small, you will be less likely to get frustrated and give up midway through your cleanup.

Step # 5: Categorize Your Clutter
When cleaning, it’s important to categorize your items into groups. By separating the items that you want to keep, toss and donate, you will be able to move through your clutter quickly and efficiently. 

Step # 6: Letting Go
This is a tough one, I know! A good rule of thumb for uncluttering your home is to get rid of anything that you haven’t used within the past year. If it’s still useful, consider donating it to a good cause. Otherwise, toss it. There, I said it!

Step # 7: Storing Your Seasonal Apparel 
When storing seasonal clothing, purchase a sturdy plastic storage bin with a lid and roll your clothes instead of folding them in an effort to maximize storage capability. When full, snap the lid on and slide the unit into your closet.

Step # 8: Closet Organization 
Did you know that your choice of clothes hangers can greatly impact the storage capacity of your closet? Wire hangers take up less space and can save your shirts from getting that annoying shoulder bump that often arises from the use of plastic hangers. There are many space-saving closet products out there to help if you have minimal closet space to work with.

Step # 9: Shoes Blues 
When it comes to storing shoes, many homeowners are fighting a losing battle with clutter. How many pairs of shoes do you own? How neatly are they stored? If your shoe storage has you down, try purchasing clear lidded shoe boxes. These handy creations can house each pair of shoes and can be stacked neatly in your closet. And best of all, you can see your shoe collection without having to sift through a sea of sandals.

Step # 10: Read The Labels 
If you have medicine, food or anything else with an expiration date in the home, check to make sure that the items are still good. If the expiration date has already come and gone, throw them away.

It may seem like a daunting task, I know.  Even getting through one area of your home will breathe new life into your space and will give you the motivation to tackle the next project. In the end, you will feel lighter, brighter, and more at peace. And I guarantee you will all of sudden look around and remember all the things you love about your home!  What are your favorite de-cluttering ideas?

As always, I look forward to hearing your thoughts!
Be well,
Rhonda

photo credit: www.aadesignbuild.com, A&A Design Build Remodeling, Kitchen Remodeling, Germantown, Potomac, Rockville, Bethesda, Chevy Chase, Washington DC, Interior Design, Aging in Place via photopin (license)

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Calling In A Professional

Renovating your home can be a stressful and expensive endeavor. How much should you spend? Who should you trust? Who’s the best contractor/architect/designer/etc. in town? If you find yourself asking these questions as you consider a renovation, you may want to consider a renovation coach.

Expert opinions Renovation coaches are a recent trend in home remodeling. Think of it as a project manager for your home renovation—someone who is great at working with contractors and vendors, and at keeping things running smoothly and moving forward as your renovation progresses.

Worth the investment? Renovation coaches can handle projects of any size, and can be involved as much or as little as you like. They’re especially useful for managing bigger projects that involve several vendors and contractors, but they can also be helpful in simply recommending the best and most reputable companies for your specific project. If you don’t know who to hire to remodel your kitchen or basement, a renovation coach can be a huge asset.

Finding the right coach There’s currently no national directory or association for renovation coaches, but it’s a fast-growing profession and chances are there’s a great one in your area. Take to the internet to find some coaches in your area—Houzz and Google are a good start. Vet several candidates and reach out to past clients to find the coach that can help you get the most out of your renovation.

Get Started Here! 
Houzz hosts an entire section of their site dedicated to helping you find area professionals to assist with your project. Want to explore working with a Renovation Coach? Or do you simply need an electrical contractor in your immediate area? If you are a home improvement specialist, you can post your profile and credentials on Houzz.com so local consumers can find you.

The Good, Bad, and the Ugly
Sharing your experiences can be very helpful to others.  Do you know a great contractor in the Rhode Island area? I would love to know about them! Email me at rhondam@coldwellbanker.com to share your story!

As always, I look forward to hearing your thoughts!

Be well,
Rhonda

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Understanding Flood Insurance

A flood is a natural disaster that can leave behind a huge amount of damage, facing homeowners with costly repairs. Although homeowners pay an annual premium for their home insurance, many insurance carriers do not include or cover flood damages. 

Is flood insurance required by the government?

Congress mandates that federally insured lenders require flood insurance for properties that are located in a high flood risk area.  Typically, properties located in a moderate or low risk flood area are not mandated to carry flood insurance. However, lenders may require coverage even if the federal government does not. According to the NFIP, in high risk areas, there is at least a 1 in 4 chance of flooding during a 30-year mortgage.  Properties in high risk areas that are not secured by a mortgage are not required to hold a flood insurance policy. In these cases, coverage is completely optional and at the discrection the homeowner.

What are the cost of flood insurance and how it can be determined?

There are many factors that are considered in determining your premium.Tthese factors range from the type and amount of coverage, the age and design of your home structure, and your location in the flood risk zone.  Your local insurance professional is a great source of information and can help you determine your risk and associated costs.

What is the insurance coverage and what are those that are not?

Your policy covers items that are damaged directly by a natural flood. It does not cover damages from other sources of water problems. Although, the flood insurance policy may have great advantages, it is important to understand the limitations and exclusions in these types of policies, such as the exclusion of cars and basement areas.  For a complete list of items covered, check out the NFIP's Summary Of Coverage.

How the claims are being handled?

Should your property get damaged by a flood, contact your flood insurance carrier as soon as possible to begin the claim process. An adjuster will be assigned to you, and they will inform you of the steps and forms needed to file your claim. 

What is an elevation certificate and how to acquire it?

An elevation certificate provides elevation information necessary to ensure that the property is in compliance with the floodplain management ordinances. It is also used to determine your flood insurance premium rate or can be used to request a Letter of Map Amendment (LOMA).  By contacting your local insurance professional, they can give you a list of area engineers that can provide you with an elevation certificate. Costs vary by area.

What is the role of real estate agents in regards to flood insurance?
As a real estate professional, it is important to understand the general principles of flood insurance so you can help inform your clients. If you service an area that is close to the water, check out this handy tool from FEMA. Enter the address, then choose to see the Interactive Map to find out if the home is in a flood risk area. If you are getting ready to list a home, talk with your sellers about obtaining an Elevation Certificate if they do not have one. Having an elevation certificate handy for potential buyers takes the guesswork out of the equation and can alleviate "fear of the unknown".  It's a great idea to get to know your local insurance experts, they can be a great source of knowledge and for you and your clients in helping to navigate through the requirements, risks, and costs. 

As always, I would love to hear your additional thoughts, ideas, and comments. 
Be well,

Rhonda

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The Significance Of A Comparative Market Analysis

Significance of Comparative Marketing Analysis by a Realtor®  

Before listing your property, it is highly important to know the fair market value of your property. As a prospective home seller, you must have heard about comparative marketing analysis or CMA. The tool is widely used by homeowners and Realtors® to evaluate the right price of their property.   

What does the term “CMA” means?  

Comparative marketing analysis or CMA is an evaluation of similar homes sold recently and active listings in a particular region. This analysis allows you to set the right selling price of your home. Generally, people take help from professional realtors to identify the right value of their property. 

Who conducts a CMA? 

Although you, as a homeowner, can conduct a CMA for your property, hiring an expert Realtor® will make the process a lot easier because they are aware of the market conditions and have sufficient data about active listings and recently sold homes. When conducting CMA for comparable homes, a Realtor® takes into account both subjective and objective elements, such as: 

• Square footage
• Number of floors
• Land area
• Number of bedrooms and bathrooms
• Location, easy access to schools, marketplaces, etc.
• Subjective features including design, style, views, etc.

As part of the CMA process, your Realtor® will also look at properties currently on the market in an Active status. This will give you a picture of your “competition” per se. Properties under contract (pending) can also shed some light on what properties buyers are drawn to enough to purchase. 

While properties recently sold are really what matters in helping to determine your market value, active and pending properties can add to the broader picture of your local market activity. 

While we live in a DIY world, some things are truly best left to a professional! If you are thinking of selling your home, or just want some insight on your property’s value, call a local real estate professional to help. And best of all, a CMA is typically a free service. What’s better than that? 

As always, I would love to hear your additional thoughts, ideas, and comments. 
Be well,


Rhonda

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To Buy or To Rent...Yet Another Question!

The beautiful sights, calm and soothing environment of Rhode Island is an attractive tourist destination and experiences a huge footfall every year. Fascinated by the scenic beauty of the area, a number of people plan to shift their base permanently to Rhode Island. 

Buy or rent? Which is the better option? 

This can be a tough decision for Americans to go through when they plan to relocate. Owning a home gives you pride, satisfaction, and some attractive has tax benefits. In some cases, and especially with the current low interest rates, your mortgage payment, including taxes and insurance, can be less than the current rental rates. Buying a home can prove to be a great investment. Depending on your timing, you may see a return on that investment when you decide to sell down the road.   

Renting can also be great option, as it allows you relief from many homeowner expenses, and gives you the flexibility of “trying out” a particular town or area. When you are at a stage of life where your finances, career and living standard may be in flux, then renting a house may be the better choice. Renting allows easy moving and saves a lot of overhead expenses like shoveling snow, lawn mowing etc. However, it's important to keep in mind, you are paying off your landlord’s mortgage and adding equity to his bank account, instead of your own.

A local realtor can talk with you about current rental rates and what is available in the local marketplace. A lender can talk with you about your credit score and finances, determine your spending power, and whether you can currently qualify for a mortgage. If the timing is not right due to credit issues, they can help you formulate a plan to repair your credit so you can purchase a home in the future.

The decision to buy or rent is a personal choice, and dependent on your individual needs and financial situation. By talking with local professionals you can determine the path that makes the most sense for you now, and in the future.  

As always, I would love to hear your additional thoughts, ideas, and comments. 
Be well,

Rhonda

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Bring your “A” Game to your next Open House

An open house is a win win win! It is a great way to bring attention to your seller's home on the market, and gain some feedback about its perceived strengths and weaknesses. For potential buyers, it's a great no-pressure way to get in and see a listing that peaks your interest, especially if you are just casually looking. And for agents, it can be an opportunity to meet potential buyers. If that particular home does not fit their needs, you may be able to find them their perfect match if they are not already working with an agent. If you are a new agent or a buyers' agent who typically does not list properties, consider asking others in your office if you can host an open house for them.

Place Open House signs strategically at the main road, at the street entrance, and in front of the house. Always arrive 20-30 minutes early to your open house. It will be awkward if you are unloading your car as someone arrives, or worse yet, someone is waiting for you. It's nice to be able to take your time getting settled so you appear relaxed. Turn the lights on in every room, including the basement and garage. Turn on overhead lights and any lamps for added ambiance and warmth. Light some candles so a pleasant aroma fills the home. Choose candles with a scent that fits the season, or go for ones that smell like freshly baked cookies. If the weather is nice, or if the home has been vacant and has a musty smell, open some windows to let the fresh air inside, even just for a few minutes to clear the air.

Consider bringing some light refreshments. Individually wrapped chocolates or candies, apples, and cookies are easy and do not require much in the way of clean up. Though I love the idea of coffee, juices, etc., stick with water bottles since there is no harm done if a spill occurs.

Having some light music playing in the background can set a great tone! There are some really cool speakers out there, enabling you to play music right from your handheld device. They are available in many styles and configurations and range in price to fit any budget.

Treat everyone who walks through the door as if they are a guest entering your own home. If you make everyone feel comfortable the moment they walk in the door, they will remember the home fondly afterwards, even if it wasn't right for them. Give them your undivided attention, welcome them with a smile, and thank them for coming. Ask them to sign in. There is a great app for your iPad or Android device called Open Home Pro, that allows guests to sign in right through the application. Besides name and email, they will be asked a few questions (customizable by you). If you rather, use a paper sign in sheet. Consider using a comment card so you can obtain some feedback for your sellers.

Have information packets assembled, and present them in a professional looking folder. Besides the home's information sheet and disclosures, consider adding financing information, and a Homebuyer Guide. Consult with an area mortgage broker; they will be pleased to give you some information on financing options. Other items you may want to add to the folder include a Buyer's Questionnaire, complimentary magazine, other listings in the neighborhood they may like to see with you. Lastly, don't forget to include your business card!

Once the open house concludes, be sure you leave the home as you found it. Turn off lights, blow out the candles, close and lock windows, remove any trash. It's a great idea to leave a small box of cleaning supplies in your car (paper towels, spray cleaner, trash bags) in case the home is currently vacant and there are no supplies readily available. If the sellers do not arrive back home before you leave, you can consider leaving them a quick note to thank them for their hospitality and give them a brief synopsis of the turnout. If it is not your listing, let them know their listing agent with contact them with the specifics. I would not suggest leaving your business card in that case. Compile guests' comments and discuss with your seller. If you are hosting the Open House for another agent in the your office, discuss the comments with them so they can discuss with the sellers.

I would like to end with some thoughts on Realtor Safety. Above all else, and as with any showing you attend, stay alert and be aware of your surroundings. Know where the doors leading outside are located. Leave the driveway open and park your car in the street. Keep your keys in your pocket. Have your phone with you at all times, be sure someone knows where you are and calls to check on you periodically either via text or phone call. Have a system in place that if you don't respond after two tries within a 10-minute span, they will come to the house or call the police to take a ride by and check on you. Turn the auto-lock on your phone off; have it poised to dial 911 so you only have to hit the call button to connect. Just be careful to don't call by mistake! During the Open House, make it a point to walk behind guests as they tour the home. Even if someone suggests you go first or asks you to the lead the way, politely decline. Offer to let them explore and stay sightly behind, so you can answer questions as they arise, keep your eye on them (especially if sellers have valuables in the home), keep an ear tuned to the door if others arrive, and be in a position to have an advantage of escape if needed. I recently attended a self-defense seminar that provided a few basics. We learned a few defense techniques that I hope I'll never need, but will be invaluable if I do. I highly suggest contacting your local martial arts studio, I'm sure they would be happy to put something together for your office.

An Open House is a great marketing tool throughout the year. Get inspired, create a plan, and have fun with them! 

As always, I would love to hear your additional thoughts, ideas, and comments. 
Be well,

Rhonda

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Home Assessments...Do They Reflect Market Value?

As a real estate professional, we often hear sellers and buyers alike refer to a home's asking price in correlation to the the assessment. To begin, it's important to understand the difference. According to the International Association of Assessing Officers, the Assessment is the value used to calculate your property taxes. An assessor will first make a determination of market value, then multiply it times a factor (how the factors differ depend on local laws). The result is the Assessment, or Property Tax Assessment. As a homeowner, it's always extremely important to understand your property tax bill and how it is derived. 

So then how is market value determined? The Fair Market Value of any piece of property is the price at which it will sell in an open market within a reasonable period of time. 

It's the question agents strive to answer when assisting sellers list their home for sale, and when assisting buyers purchase a home. To determine market value, the agent will look at comparable properties in the area that have sold in the past 6-12 months. It is not always an exact science, especially in communities where home styles and amenities can vary greatly even within a neighborhood as opposed to a subdivision where the homes are very similar. It can also be difficult if there is a shortage of homes that have sold during the past year. 

So back to the question at hand...Do home assessments reflect market value? In a nutshell, no. Now, that being said, there is often an interesting trend between assessment and sale price within given areas. I will research and calculate this trend and use it as a guide in determining a property's market value either when helping a seller determine a listing price or a buyer determine how much to offer. It is certainly not exact, but it can be used as another tool in the arsenal of determining value. 

It is important to remember that, at the end of the day, Fair Market Value for any property is what a fair and informed buyer is willing to pay for it. 

As always, I would love to hear your additional thoughts and comments. 

Be well,

Rhonda

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Love Thy Community

All of us are an integral part of the communities where we live, work, and play. From neighbors, to local businesses, to charity organizations, it's a wonderful collective. Introducing yourself to your neighbors creates the opportunity to become friends, giving your business to local shops and restaurants keeps the community thriving, and helping those organizations whose mission it is to serve those of us who are struggling is just the right thing to do!

If you are new to your area and looking for volunteer opportunities, check out VolunteerMatch.com. You can choose your location and search for nearby organizations that are looking for help. You can search by Cause to narrow down to what really speaks to you.  I recently attended a wonderful Ladies Luncheon hosted by the Westerly Pawcatuck Chamber of Commerce. Russ Patridge, Executive Director of the WARM Center in Westerly, was in attendance and talked with us about the organizations mission and services. I learned many things I did not know about the WARM Center and also about the community members it serves. Most importantly, I learned about the many, many ways I (and my friends!) can help.

To get involved in some cool happenings around town, check out the calendar on your local Chamber's web site. Besides networking events, they are in the know about fun things going on in and around your town or city. Also, most businesses and organizations are on Facebook; doing a search for your location will retrieve a list of their pages for your "Liking" and keep you up to date!

Don't forget to take advantage of the complimentary magazines available at many local establishments. In our area, I try to never miss a copy of my favorites: SO Rhode Island, Edible Rhody, South County Style, and Go Westerly. They are chock full of great information, and allow one to discover new local eateries, shops, and other local affairs.

I am proud to be a member of the communities of South County, Rhode Island. I hope you will take the time to explore and become an integral part of yours. Don't hesitate to send me your thoughts on what you love most about your community!

Until next time....

Be well,
Rhonda

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Understanding The Importance Of Title Insurance

I attended an informative seminar on Title Insurance recently at Westerly Community Credit Union. Peter Lewiss, Esq., Lewiss Law Associates, LLP and Linda Rekas Sloan, Esq., Commonwealth Land Title Company presented some invaluable information on this important, but little known topic.  Title insurance can prove to be invaluable to you as a homeowner, and to your lender, if you have a mortgage the property. Without it, you and your lender may face substantial monetary loss.  

In a nutshell, Title Insurance is contract that indemnifies a property owner lender from monetary loss for a hidden defect in the title (unless it is excluded or excepted), that may come as a result of fraud, forgery, or human error. While your title search will uncover most problems, sometimes a defect doesn't rear it's head until after closing, such as, unknown heirs, un-filed liens, unpaid judgements, improperly executed or indexed documents.  

If you are taking out a mortgage, your lender will require you to purchase a Lender's Policy. The Lender's Policy will protect your lender should a defect in title arise, making the lien unenforceable.  A Lender's Policy, however, will not protect you as the owner of the property. This is where an Owner's Policy comes into play. By purchasing your Owner's Policy at the same time as your Lender's Policy, you can be issued a credit, saving money overall on your premiums. 

Premiums are regulated by the state and are based on purchase price or loan amount. It is a one-time payment that protects you for the life of the mortgage or your entire duration of home ownership. As a property owner, additional coverage may also be purchased for even more protection. 

When you are in the process of purchasing a new home, be sure to speak with your attorney about the benefits of a Property Owner's Title Insurance Policy. 

As alway, I welcome your feedback and thoughts.

Be well,
Rhonda

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Decisions, Decisions...a quick guide for first time home buyers

Buying your first home is both exciting and a little intimidating. The thought of your very own place is thrilling. You can already imagine exactly how you will decorate from choosing the perfect paint colors, to selecting the furnishings that truly match your style.

On the other hand, it can be a little scary. Once you've found your dream home, you are faced with trying to understand everything that goes along with the arduous process.  Negotiating a price, getting through inspections, securing financing, working with your attorney regarding title work, closing statements and finally getting to the closing table can be downright exhausting. Luckily, there are professionals that can help you each step of the way. Your real estate agent or broker is a valuable resource and can connect you with reputable professionals for each task at hand. There may certainly be bumps along the road, but that's OK. With a little patience and some good old fashion perserverance, you will be a proud homeowner before you know it!

But of course, before negotiations can get  underway, you have to choose your new dream home.  Currently in this market there is an abundance of inventory. You can spend days, weeks and months looking at properties in just one area alone, never mind if you have two or three other locations that might interest you.  It can become very overwhelming and you could end up in a massive state of confusion. Like Mom always said, a little preparedness will go a long way. Taking some time before you start looking at properties, and putting together a simple plan of attack will save you time and sanity in the long run.

The first crucial step is identifying your price range. Talking with a mortgage professional can help determine what you can comfortably afford. Then, determine a few basic features you might be looking for in a home, such as location, number of bedrooms, baths, and lot size. Now you have something you can build from.

During this process, you are going to learn a lot about yourself. In the beginning, you may feel like you only want to look at a Cape Cod style home, but in the end, find that you like the colonial or ranch style much better. You may start out thinking that you want a move-in ready home, but in he end, realize that you don't mind putting in some work to keep the cost down and being able to choose the color of your counter tops, cabinets and floors.

As you view the interior of various properties, you will quickly realize the things that are must haves, and the things you might be willing to compromise. This will continue to help narrow down the search. One of the most important things to remember is that the perfect house does not exist. You very well may have to forgo the finished basement for now, but be able to have that two-car garage you've been dreaming about. 

And then, one day, it will happen. You will walk into a house, fall in love, make an offer, and enter the ring. We can save the negotiation process for another day, but regardless of whether your offer is accepted or not, you've learned a ton just going through these first steps.  Even if this particular house isn't meant to be, you will be well equipped to continue your journey to find your new home.

As alway, I welcome your feedback and thoughts.

Be well,
Rhonda

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The Importance of RESPA

I attended a continuing education class today on RESPA, the Real Estate Settlement Procedures Act.  Simply stated, RESPA ensures that consumers are given timely information about the cost of borrowing money. Besides requiring that consumers receive disclosures at various times in the transaction, RESPA also outlaws kickbacks between Settlement Service Providers.

RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process. It is enforced by HUD, and as July, 2011, is administered and enforced by the Consumer Financial Protection Bureau (CFPB).  This agency also provides information and helps you explore options if you are having trouble paying your existing mortgage.

After class, I jumped on HUD's web site. It's a great resource for consumers! While your mortgage broker can help you disseminate the information and numbers on your HUD-1 Settlement sheet, it is worthwhile to log on early in the process. 

The HUD web site is also a great resource for agents and brokers, so we can be better advocates on our client's behalf. If you are a broker or agent, it's not a bad idea to do some research and be sure you understand the difference between a legal referral fee and an illegal kickback! Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed.

Though RESPA is not one of the most exciting things to blog about, I feel it is important that both consumers and real estate professionals understand the facts and details about RESPA. And while I hope it never happens to you, if you feel a settlement service provider has violated RESPA in an area in which the Department has enforcement authority, you may file a complaint, or contact the CFPB’s Consumer Response team at 855-411-2372 (855-729-2372 TTY/TDD). If you are a settlement service provider with questions about RESPA, you can email the CFPB at CFPB_RESPAInquiries@cfpb.gov.

As always, I look forward to hearing your additional thoughts.

Be well,
Rhonda

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Functional Obsolesence - what is it and can I do anything about it?

Functional Obsolescence is defined as "loss of value from all causes within the property except those due to physical deterioration".  Huh?!

In understandable terms, Functional Obsolescence is a defect in a property that affects the property's utility. For example, there is only bathroom is located on the second floor of the house. Or perhaps the house has no formal dining room or if it does have one, it's far removed from the kitchen.

Functional Obsolescence can be either curable or incurable.  It is considered curable if the amount of money invested to remedy the issue increases the market value of the property by at least that much. On the other side, it is considered incurable if the cost to remedy the issue is greater than the added value the remedy will bring. 

So, what does this mean for buyers and sellers?

If you are a buyer, be aware of shortfalls in the dwelling's utility and factor in the associated costs to fix those shortfalls when making your offer. Your real estate agent or broker can connect you with the right contractors in the area in order to get an idea as to what it might cost you to address the issues, and can then help determine if your return on investment will be worth it. 

If you are a seller, you need to be aware first, of the objections that may arise from potential buyers.  Also, keep in mind, that you may need to lower your expectations on market price to take into account the costs that potential buyers will face in order to address the issues and alter the property to better suit their needs.

Look forward to hearing your additional thoughts.

Be well,
Rhonda

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Splash on the Color!

You are getting ready to paint the interior of our home this winter. Hours have been spent hours pining over colors, trying to figure out the perfect palette.

Now, let's throw a little twist in the scenario and say, you are putting your home on the market. Should you stick with white? While white might be safe as to not offend anyone.  White absolutely has its place in the world of paint colors, and nowadays there are endless choices of "white". However, instead of playing it too safe, consider the beautiful world of neutrals.  Adding a touch of richness to the walls can make a big difference, and uplift a room's energy.

On a personal note, a couple of years ago, when we put our home on the market, I looked around at our walls. While the main living area was a beautiful khaki color, we had a brick red dining room, dark moss green bathroom and a burgundy office.  And that was just the first floor!  I loved the feeling each of the colors invoked, to me it made the house warm and inviting.  After giving it serious thought about whether to tone down some of the rooms, we decided to keep the colors we loved. Through all the feedback we received by potential buyers and agents, only one person mentioned the wall colors, and it was the actually the agent, not the buyer. When showing properties, I always remind clients that it's only paint and can be easily changed!

So let's get back to the fun part, and choose some colors for those walls! When choosing colors, the big question is "How do you want the room to feel?" Warm and cozy? Cool and airy? "Downtown Chic" or "Provençal Farmhouse" Do you want to feel like you are sitting the beach? In a meadow? There is an abundance of web sites, books and online tools to help you choose.  Check out Sherwin Williams color visualizer where you can upload photos of your rooms play with various color schemes. Also, check out HGTV's Color Guide full of painting tips, tricks and ideas.

What's your favorite color? Would love to hear your additional thoughts.

Best,
Rhonda

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