Everywhere we turn we are told about increases in foreclosures and the devastating carnage left behind in our neighborhoods. Just a few short years ago you probably didn’t even know how to spell foreclosure! Now the word has become an integral part of our lexicon. Let’s take a real look at this phenomenon so we can truly understand where foreclosures fit in our current real estate market place and how it affects all of us as homeowners.

Have you ever physically viewed a home that is in foreclosure? It is not a pretty sight! The majority of these homes are in poor condition both structurally and cosmetically. In most cases it would take several thousand dollars just to start the upgrades these homes generally require. I recently viewed one of these properties with a buyer and what we witnessed was nothing short of sickening. The toilets and vanities were gone; the carpet was torn and destroyed with a pungent odor. The dry wall was shredded and the ceilings were falling. In the basement was standing water and this was just the inside! The outside appearance was shameful. I need not go on. Needless to say, the buyer literally grabbed me and made a gesture to leave at once. This is a very typical reaction from a potential purchaser. The lesson here is that a very small percentage of buyers have the funds or even want to borrow the funds to rehabilitate such a project. This example is extreme, but most foreclosures are variations of the condition described. That is unfortunate and that is shameful. Unfortunately, many of the mortgage holders of these distressed properties do not invest monies to improve these homes, but rather let them fall into total disrepair and then sell them for less than 50 cents on a dollar! That is a real crime and it makes no sense whatsoever. I would hope this practice of neglect would change, but there are so many fingers in the pot in these foreclosures that no one entity takes responsibility in reviving these neglected homes and attracting a decent price.

You do not want your home to be in such a state that your property competes with foreclosures! If you do, you will suffer the same fate of losing more than half of your value when some updating could bring back great returns on your investment. Make a commitment this spring to updating your home both inside and outside. Start with the most important components of your home that can be considered defects if not in proper working order. These would be basement walls and drain tile, roof, furnace, plumbing, and electric. Make sure all of these are in proper working condition. If you do not have the funds to make these repairs, borrow the money in the form of an equity loan. It will be worth the investment and save you from even more damage or repair needed down the road.

Next, look at the cosmetics. Kitchens and baths bring back the biggest bang for the buck. You would be amazed at the major difference you can make to the appearance of your home with a reasonable budget. I work with a company that re-coats tub and tile in your bathroom for a cost of $400-$500 for the tub and can also coat the ceramic tile. You can change that pink or turquoise into a neutral beige in one day for a fraction of the cost of total tear out and replace. Your kitchen cabinets can be re-covered as opposed to new cabinets. Flooring in the kitchen and new carpet can totally transform your home and give it that new home smell. Often I hear, “why should I replace that torn carpet when the buyer will just tear it out and put something else in its place! I’ll just give them a credit!” Wrong, wrong, wrong!!! Imagine looking at a car with torn carpet and the dealer offers a credit to replace that ugly eye sore. You know what your reaction would be and it’s no different with a buyer. Lighter neutral carpet with a new coat of paint on walls and ceiling can totally transform your home and bring great returns especially in this competitive market.

Painting a basement with a neutral color can change it from that dingy depressing lower level to a positive bright and cheery area. It doesn’t cost that much to have a handy many paint the basement walls and floor. This also will bring back great returns. Make sure if you have any suspect cracks or seepage that you have that examined by a basement inspector or contractor before you paint. You don’t want buyers thinking you covered up a potential problem.

By upgrading your home in a frugal and targeted way, you can use foreclosures to your advantage when selling your home. A buyer will walk through those discounted properties and then compare to your home. They will see the incredible difference between that home that is in distress and your home which gives a sense of a property that has been cared for. A buyer will pay a great premium for the luxury of move-in condition verses having to break the bank just to make the home habitable, let alone a home they could be proud of.

A good first step is to have your real estate agent view your home and make recommendations as to what areas to pay attention to. They will also give you referrals of trusted and reliable contractors who can do the job at a fair price. Start these improvements today. Don’t wait as you never know when you may want to move. If your home has been upgraded, you can then put your home on the market when it is the right time for you and the best selling time of the year. In addition, you will be proud to invite your family and friends over. Most importantly, you can enjoy the benefits of your newly updated home!

I joined the Optimist Club about 10 years ago. Although I had many not so positive thoughts prior to joining, I thought it would give me direction and new perspective on my life. As an example of the true optimism of my club, we first met at a hospital every morning at 7:30. Demands for space pressured the hospital to give us notice to find a new location. We then began meeting at our new venue, the nursing home. We met for about a year and they too asked us to find a new location as their demands for space forced their decision. You can guess where we meet now… a funeral home! I’m not kidding. I dread to think where our next location will be. You know we are an optimistic bunch!

At our club we recite a creed about optimism which I thought I would share with you today. This creed has guided me over the years when events and daily trials and tribulations began to wear on me. The creed has healing powers if you truly try your best to understand and live by the 10 statements. Why don’t you read the creed, and see if life can be enjoyed more, and lived fuller if you make an effort to see life as half full.

Promise Yourself:

• To be so strong that nothing can disturb your peace of mind.
• To talk health, happiness and (more…)

As in everything we do, it is important to be at the right place at the right time. In real estate, it is especially true because sales of homes ebb and flow with the changing seasons. Since we are all creatures of habit, we tend to buy and sell as a collective group, even though we feel we are separate from each other’s buying and selling decisions. In my 28 years in the real estate business, it always amazes me how the phones will stop ringing on one day, and ring furiously on another. It is as if there is a meeting of the minds in a huge stadium where we all agree to buy and sell together at the same time!

If one agrees that this phenomenon exists, then it is best to take advantage of these buying habits if possible. We want to sell if possible when there is the greatest number of buyers available, and we want to buy when there is the greatest number of homes for sale. These periods of ups and downs are called a ‘buyer’s market’ and a ’seller’s market’.

If you are planning to sell in 2009 as an example, I would suggest (more…)

You have put much thought into making the decision to move and now is the time. However, every article you read puts doubt and fear in your mind as to the success of obtaining a sale on your home. Most authors portray a bleak real estate market with no mercy on would be sellers. What to do!

In my thirty years in real estate, one fact is clear. Homes will sell in any market! I sold properties in the late seventies and early 80’s when interest rates topped 17%! Can you imagine presenting a potential buyer with that kind of impediment? Yet, we sold almost as many homes as the years prior. The reason is that there will always be purchasers of homes as there is more to owning a home than just the financial implications. Remember when you bought your first home? What were the reasons that lead you to signing that offer to purchase? For most, the reasons for purchasing involve providing a safe environment for the family. A home represents comfort, peace, and independence as well as a feeling of control of one’s future payments and environment.

Interest rates currently are still relatively low. However, the negative press has stirred up the feelings of uncertainty about future values as well as the fears of foreclosure. So many buyers are on hold. This means there are more homes on the market than purchasers. Supply and demand tell us that with over supply come (more…)