For Sale By Owner--Why it is not the BEST idea

Many people put their homes for sale by owner thinking they are going to save themselves money.  Unfortunately, a lot of times the owner is only delaying selling his or her home.

The best and most beneficial way to sell a home is through a real estate agent for a number of reasons..

-A real estate agent is trained to know the real estate market, meaning the agent has a general idea of what a house will sell for based on facts, not emotion.

 -A real estate agent knows the little things that an owner can do to add value to his or home that can make a monetary difference in the end.


-A real estate agent can get people to the house, through open houses, multiple listing service, and by his or her knowing buyers looking to buy!

It is important for sellers to consider the above when deciding to put their home for sale.  Much as you hire a lawyer for legal matters, and an accountant for taxes, a real estate agent should be hired to sell your home. 

If you have questions with selling your home, or real estate questions in general, please do not hesitate to give me a call!

Mike McDonald, Real Estate Agent
Keller Williams Elite
732-429-8707

Great Article: The 12 Home Improvements That are NOT Worth Investing In

The 12 Home Improvements That are NOT Worth Investing In
by www.SixWise.com

Homeowners are typically driven to make home improvements for two major reasons. One, they want to change something to make their own quality of life better (such as adding another bathroom or expanding the kitchen), or, two, they are thinking of selling the home and want to fix things up to stay competitive and get their asking price.

The worst home improvement project in 2006? Remodeling your home office, which returns just 63.4 percent of your investment.

In the former case, just about any home improvement is worth investing in, assuming it will make YOU happy and you have the money for it. Just keep this tip in mind: If it will cost more than 10 percent of your home's value to fix it up to your heart's content, you're better of moving.

This is because it costs about 10 percent of your home's value to move, according to the American Homeowner Foundation, so if you have extensive home improvements in mind (and you can bear the thought of parting with your home), it makes more sense financially just to find a new one with the features you want.

However, remodeling with the second scenario in mind -- for the purpose of reselling your home or at least one day having the hope of capturing a good return on your investment -- the rules are quite different.

"A common misconception among homeowners when it comes to home remodeling and renovation," according to the Appraisal Institute, "is that cost equals value. However, not every renovation or remodeling effort will pay off at closing."

So before you start tearing down walls or cabinetry, read through the following home improvements, which are among the WORST investments you could make in your home.

The best home improvement project in 2006? Improving your home's curb appeal by replacing vinyl siding, a renovation that returned 87.2 percent of the investment.

(Note: Improvements are ranked according to Remodeling Magazine's 2006 Cost vs. Value Report. National averages for mid-range improvements are cited. For comparison, the average home improvement returned 75 percent to 80 percent of its cost in 2006.)

1. Remodeling your home office. The average cost recouped by remodeling your home office is just 63.4 percent, according to Remodeling Magazine's 2006 Cost vs. Value Report.
2. Sunroom addition. Average cost recouped 66.3 percent.
3. Family room addition: Average cost recouped 71.5 percent.
4. Master suite addition: Average cost recouped 72.6 percent.
5. Roofing replacement: Average cost recouped 73.9 percent.
6. Bathroom addition: Average cost recouped 74.9 percent.
7. Deck addition: Average cost recouped 76.8 percent.
8. Basement remodel: Average cost recouped 78.8 percent.
9. Attic bedroom remodel: Average cost recouped 79.9 percent.
10. Major kitchen remodel: Average cost recouped 80.4 percent.
11. Two-Story addition: Average cost recouped 83.2 percent.
12. Window replacement (vinyl): Average cost recouped 83.7 percent.

Surprised by the Results?

Some of the results may be a bit surprising, namely the bathroom addition and kitchen remodel, which are normally thought of as good home investments.

"Kitchens and baths tend to pay back almost what you pay for them," says Robert Wieboldt, executive vice president of the Long Island Builders Institute. "It also makes the house very much more sellable."

However, beware of going overboard. A minor kitchen remodel was a better bet than a major one, returning over 85 percent of the investment in 2006. Meanwhile, a bathroom remodel was also worthwhile with 84.9 percent of costs recouped. While adding a bathroom is often beneficial, you'll lose out if you add more bathrooms than bedrooms (such as three bathrooms in a two-bedroom house).

Other notoriously bad renovations not mentioned in the report include:

• Pools and hot tubs (cost recouped around 30 percent)
• Gazebos
• Installing unique-shaped windows
• Installing new carpet (unless it's very worn)

What Can You do to Add Marketability to Your Home?

If you're thinking of selling your home, there are a number of ways (ranging from simple to more complex) to increase its marketability, according to the Appraisal Institute, including:

• Sticking to what's standard in the neighborhood (and in the home's style)
• Considering projects that add square footage to the home (but not beyond what's normal in the community)
• Basic upgrades, such as new paint in neutral colors and new fixtures
• Cleaning your house, including baseboards, light fixtures, ceiling fans and carpeting
• Improving curb appeal by cleaning gutters, removing dead plants and touching up paint chips
• Removing clutter
  
  
  See: http://www.sixwise.com/newsletters/07/02/21/the-12-home-improvements-that-are-not-worth-investing-in.htm
  
  

Yesterday's Open House seems to have been a Success and why having a Buyer's Agent is Important and Beneficial

Yesterday, I met several people in the market for buying a home. Hopefully I was able to drive home the importance of how having a buyer's agent can be beneficial. There is a misconception that Real Estate Agents only help with the listing of a property, or in other words, are there really only to help sellers. This is not true. Having a good agent when you are buying a home does not affect the buyer monetarily and actually has a huge chance of reducing the purchase price. The buyer pays the same real estate commission on the total sale even if they do not have their own agent working on their side. Either way the 5% or 6& commission is to be paid, so why not have someone on YOUR side to protect YOUR interests? Something to keep in mind if you are looking to buy a home! Mike McDonald, Real Estate Agent Keller Williams Elite 732-429-8707 Cell #

Hire a GOOD real estate agent

I am learning that there are many real eatate agents that are not that good /lazy.  Do not fall into the trap of hiring a not-so-good real estate agent!

Whether you are buying or selling a home, having a knowledgeable, persistent, and efficient real estate agent on your side is crucial.  As a real estate agent working for Keller Williams Elite Realtors in Metuchen, I encompass all three of these important and necessary traits needed to be a great agent.   

For the reasons stated above, if you are looking to list your home, call me FIRST.  After meeting with you and seeing your house, I can give you a quick opinion on what price to list your house that reflects the current market.  I believe in giving each of my prospective clients my undivided attention from the time I first meet them, until a deal is complete.  I am easily accessible and believe in prompt responses and providing thorough, straight-forward answers to all questions.

          

If you are also thinking of buying a new home, I can help with the pre-qualification process, and locating homes that meet the exact criteria you are looking for.  I believe everyone has their own individual wants and needs in selecting a home, and he or she should not be forced or persuaded into purchasing anything they are not comfortable with.  

         

Whatever your real estate need, even if it is a simple question, I am always available to help.  Please do not hesitate to call or email me and you can expect a quick reply.