If you are thinking about listing your house or buying a house in the spring, there are some things you can do now to prepare for that time when you are ready to commit to the sale of or purchase of a new house.  Here are some helpful hints to prepare sellers and buyers.

Sellers

  1. What could you do to your house between now and spring time to make it "Sold Ready" and to impress buyers who could just as easily go down the street to your neighbors house that is in A+ condition and buy their home.  A major remodel of a kitchen or bath might be out of the question.  Besides, it will only return you about 75% of the cost you put into it, so only remodel if absolutely necessary or if you are planning on living in your house to enjoy it for some time.  Painting, new flooring or carpeting, new doorknobs on kitchen cabinets are things that stand out immediately to buyers and will prepare your house to show impressively to your future buyers.
  2. Where is your abstract/title/deed?  Usually a title search is done when a seller transfers property to a buyer so know where your abstract is.  Some people keep this document at home, while others have it on file at places like Iowa Title.  A title will have to be "cleared" before transferring to another owner.  So, if you haven't paid the roofer his $3000 yet for a roof that was replaced two months ago, you must pay this off before moving, or else the contractor can place a lien on your property.
  3. What if the front of your house had absolutely no "curb appeal" and was a detriment to "drive by" buyers.  For around $200.00, you could buy shrubs, flowers, pots, hanging plants, mulch, and pavestones for your beds.  This will put the wow factor back into the outside appearance of your home, and lure buyers into the front door, where the real wow factor will take place, right?

Buyers:

  1. If you are thinking about buying that new car, or living room or bedroom suite and putting it on the charge card, think again.  Your debt to income ratio is a primary factor in determing just how much you qualify for in a mortgage loan.  Put off the impulse to do these thing and rather save this money to put down more for closing costs.  Even if you initially qualify for a home and you are thirty days out from taking ownership of the property, do not break out the plastic!  A week or so before closing, your lender will run another credit check on you to determine if you still qualify and have a sufficient debt to income ratio to be able to afford your monthly mortgage.
  2. Pay down your credit cards under $2500.00 if you can.  Anything more than $2500.00 appears as a monthly recurring debt when a lender runs a credit report, which means it goes against you when determing your FICO score and ultimate ability to support a monthly mortgage.  I know it' difficult with the holidays approaching but try to limit credit card spending and pay cash if at all possible.  You will thank yourself with the January credit card statement arrives in the mail, believe me!
  3. Start a relationship with a Realtor now!  No, you don't have to give up your class ring just yet, but a relationship with a Realtor is kind of like going steady.  You trust that this person is going to be around for you, and the Realtor in turn trusts that you are going to use his services in the future.  A Realtor can clear many hurdles for you before you start your search for the perfect home.  If you are renting, can you get out of your lease, or will it expire so you can go month to month, not being bound by contractual obligations?  If you currently own,  you will need to sell your current home to use the net proceeds to get into your next home.  A Realtor can plan this strategy seamlessly to that your sale and move happen at the time you want it to happen.  If credit/debt is an issue call your Realtor. They work with several lenders that specialize in different situations like yours.  If you need to be placed on a "financial diet" to lose those unwanted "debt pounds" your Realtor and fellow lender can work with you on this.  Don't delay, start your relationship with a Realtor today!

If you are thinking about selling or buying in the spring of 2007, I would be honored to represent you as a client.  Please know that your needs will always be placed above mine, and I will work tirelessly to provide you with world class service.  Please call me, Christopher Smith at 319-329-5988 or visit my highly ranked website at www.christophersmithrealtor.com .

I look forward to "going steady" with you in the very near future!