Posts Tagged ‘The Lott Team’

Buying a Home in Time to Get Credit

Wednesday, February 24th, 2010

As some of you may or may not know that there are 2 tax credits available for purchasing a home: 1) the 1st Time Home Buyers credit where you get 10% (up to $8,000) as a tax credit if you are under contract by April 30, 2010. 2) the “move up” (or down) tax credit where you get $6,500 as a tax credit if you sell the home you are in (as long has you have owned and lived in the home for the last 5 out of 8 years) and are under contract for a new home by April 30, 2010.

Here are 5 great tips for anyone looking for a home in order to get the tax credit:

1) Don’t Procrastinate - for 1st Time Buyers, start your house search now. Getting an early start will give you a better change of finding the right house before the tax credit deadline. For “move up” or “downsize” buyers put your house on the market NOW! Don’t wait to find that great house before you decided to market yours. That perfect house may not be available by the time yours sells and I assure you there will be other “perfect houses”.

2) Don’t Count on Another Extension - The tax credit won’t be available forever. This is a medication for the housing crisis. Once the patient - which is the housing market - is cured, there will be no medication needed.

3) Be Mindful of Interest Rates - Interest rates are low right now but are going to rise. They have been hovering around 5%, but are expected to rise during the 2nd quarter which is right at the end of the tax credit contract deadline. Higher interest rates means higher monthly mortgage payments so definitely get a move on.

4) Communicate with your Lender - First make sure you talk to a lender before you start house hunting. It is always better to know up front what you the bank says you can afford vs. what you are comfortable paying every month. Those two things can contradict depending on where you are in your life. Second, once you find that lender make sure you communicate with them regualrly to avoid any delays in the underwriting process. The lender will often need additional documents from you as the process goes on, get them to the lender ASAP!

5) Don’t take Shortcuts - Don’t forgo any of the steps you would normally take just to make the tax-credit deadline. That means making sure the house is the right fit, the right location, and never pass on a Home Inspection.

If you are even remotely considering buying a house call a reputable lender now! If you do not know a name or # of someone call a real estate agent who can recommend one. As always The Lott Team would love to be of assistance in anyway!

This information above is based on a Commercial Appeal article, but does contain some opinions and suggestions of The Lott Team. The Commercial Appeal article referenced was written by Amy Hoak.


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Posted in First Time Home Buyer, Memphis Real Estate | No Comments »

Thursday, February 18th, 2010

Here is a GREAT article about How to Prepare Your Home for Sale. It is extremely important that you get your home “show ready” before it goes on the market. Here are some tips to help you start that process, but whatever real estate agent you choose to help you sell your home will also have tips and tricks for you.

By , About.com Guide

  1. Disassociate Yourself With Your Home.
    • Say to yourself, “This is not my home; it is a house — a product to be sold much like a box of cereal on the grocery store shelf.
    • Make the mental decision to “let go” of your emotions and focus on the fact that soon this house will no longer be yours.
    • Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
    • Say goodbye to every room.
    • Don’t look backwards — look toward the future.
  2. De-Personalize.
    Pack up those personal photographs and family heirlooms. Buyers can’t see past personal artifacts, and you don’t want them to be distracted. You want buyers to imagine their own photos on the walls, and they can’t do that if yours are there! You don’t want to make any buyer ask, “I wonder what kind of people live in this home?” You want buyers to say, “I can see myself living here.”
  3. De-Clutter!
    People collect an amazing quantity of junk. Consider this: if you haven’t used it in over a year, you probably don’t need it.

    • If you don’t need it, why not donate it or throw it away?
    • Remove all books from bookcases.
    • Pack up those knickknacks.
    • Clean off everything on kitchen counters.
    • Put essential items used daily in a small box that can be stored in a closet when not in use.
    • Think of this process as a head-start on the packing you will eventually need to do anyway.
  4. Rearrange Bedroom Closets and Kitchen Cabinets.
    Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:

    • Neatly stack dishes.
    • Hang shirts together, buttoned and facing the same direction.
    • Line up shoes.
  5. Rent a Storage Unit.
    Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room’s purpose and plenty of room to move around. You don’t want buyers scratching their heads and saying, “What is this room used for?”
  6. Remove/Replace Favorite Items.
    If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won’t want it. Once you tell a buyer she can’t have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary
  7. Make Minor Repairs
    • Replace cracked floor or counter tiles.
    • Patch holes in walls.
    • Fix leaky faucets.
    • Fix doors that don’t close properly and kitchen drawers that jam.
    • Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls. (Don’t give buyers any reason to remember your home as “the house with the orange bathroom.”)
    • Replace burned-out light bulbs.
    • If you’ve considered replacing a worn bedspread, do so now!
  8. Make the House Sparkle!
    • Wash windows inside and out.
    • Rent a pressure washer and spray down sidewalks and exterior.
    • Clean out cobwebs.
    • Re-caulk tubs, showers and sinks.
    • Polish chrome faucets and mirrors.
    • Clean out the refrigerator.
    • Vacuum daily.
    • Wax floors.
    • Dust furniture, ceiling fan blades and light fixtures.
    • Bleach dingy grout.
    • Replace worn rugs.
    • Hang up fresh towels.
    • Bathroom towels look great fastened with ribbon and bows.
    • Clean and air out any musty smelling areas. Odors are a no-no.
  9. Scrutinize.
    • Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
    • Linger in the doorway of every single room and imagine how your house will look to a buyer.
    • Examine carefully how furniture is arranged and move pieces around until it makes sense.
    • Make sure window coverings hang level.
    • Tune in to the room’s statement and its emotional pull. Does it have impact and pizzazz?
    • Does it look like nobody lives in this house? You’re almost finished.
  10. Check Curb Appeal.
    If a buyer won’t get out of her agent’s car because she doesn’t like the exterior of your home, you’ll never get her inside.

    • Keep the sidewalks cleared.
    • Mow the lawn.
    • Paint faded window trim.
    • Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
    • Trim your bushes.
    • Make sure visitors can clearly read your house number.


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Posted in Memphis Real Estate | No Comments »

Why should you hire a Realtor?

Thursday, March 26th, 2009

10 Reasons to Hire a Realtor

1. Education & Experience

You don’t need to know everything about buying and selling real estate if you hire a real estate professional who does. Henry Ford once said that when you hire people who are smarter than you are, it proves you are smarter than they are. The trick is to find the right person. For the most part, they all cost about the same. Why not hire a person with more education and experience than you? We’re all looking for more precious time in our lives, and hiring pros gives us that time.

2. Agents are Buffers

Agents take the spam out of your property showings and visits. If you’re a buyer of new homes, your agent will whip out her sword and keep the builder’s agents at bay, preventing them from biting or nipping at your heels. If you’re a seller, your agent will filter all those phone calls that lead to nowhere from lookie loos and try to induce serious buyers to immediately write an offer.

3. Neighborhood Knowledge

Agents either possess intimate knowledge or they know where to find the industry buzz about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, crime or demographics. For example, you may know that a home down the street was on the market for $350,000, but an agent will know it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow.

4. Price Guidance

Contrary to what some people believe, agents do not select prices for sellers or buyers. However, an agent will help to guide clients to make the right choices for themselves. If a listing is at 7%, for example, an agent has a 7% vested interest in the sale, but the client has a 93% interest. Selling agents will ask buyers to weigh all the data supplied to them and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy.

5. Market Conditions Information

Real estate agents can disclose market conditions, which will govern your selling or buying process. Many factors determine how you will proceed. Data such as the average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.

6. Professional Networking

Real estate agents network with other professionals, many of whom provide services that you will need to buy or sell. Due to legal liability, many agents will hesitate to recommend a certain individual or company over another, but they do know which vendors have a reputation for efficiency, competency and competitive pricing. Agents can, however, give you a list of references with whom they have worked and provide background information to help you make a wise selection.

7. Negotiation Skills & Confidentiality

Top producing agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It’s part of their job description. Good agents are not messengers, delivering buyer’s offers to sellers and vice versa. They are professionals who are trained to present their client’s case in the best light and agree to hold client information confidential from competing interests.

8. Handling Volumes of Paperwork

One-page deposit receipts were prevalent in the early 1970s. Today’s purchase agreements run 10 pages or more. That does not include the federal- and state-mandated disclosures nor disclosures dictated by local custom. Most real estate files average thicknesses from one to three inches of paper. One tiny mistake or omission could land you in court or cost you thousands. In some states, lawyers handle the disclosures, thank goodness!

9. Answer Questions After Closing

Even the smoothest transactions that close without complications can come back to haunt. For example, taxing authorities that collect property tax assessments, doc stamps or transfer tax can fall months behind and mix up invoices, but one call to your agent can straighten out the confusion. Many questions can pop up that were overlooked in the excitement of closing. Good agents stand by ready to assist. Worthy and honest agents don’t leave you in the dust to fend for yourself.

10. Develop Relationships for Future Business

The basis for an agent’s success and continued career in real estate is referrals. Few agents would survive if their livelihood was dependent on consistently drumming up new business. This emphasis gives agents strong incentives to make certain clients are happy and satisfied. It also means that an agent who stays in the business will be there for you when you need to hire an agent again. Many will periodically mail market updates to you to keep you informed and to stay in touch.

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