The Benefits of Listing Your Home with a Professional Realtor

Selling a home can prove a time-intensive and complicated process.  Undertaking a sale alone can put homeowners at a significant disadvantage.  Professional realtors bring knowledge, resources, and expertise that can drastically improve a homeowner’s selling opportunities. 

1. Listing in the MLS: The Multiple Listing System (MLS) is a database that any prospective buyer can access to search for home listings.  An entry in this database makes it easy for both buyers and other realtors to find the listing.
2. Added exposure: A realtor can promote a property to other agents in the office and on his or her website.  Some agents also place listings in magazines or other media, to increase exposure among buyers who are actively searching for a home. They also conduct and promote open houses, to bring agents and buyers to see the home first-hand.
3. Vast experience: A seasoned agent can advise a homeowner on how to truly showcase a home.  From building curb appeal to staging the interior, a realtor knows how to make each home stand out. 
4. Industry connections: Realtors can use their connections to promote a property outside their own firm.  They may know other professionals also specialize in the same area or neighborhood, and can promote the listing among a well-targeted group of colleagues.
5. Vested interest in a seller’s success: Because seller’s agents receive a commission based on the sale price of a home, they are motivated to find qualified buyers. 
6. Accurate pricing information: Realtors can access comparable properties in the community to evaluate a fair, competitive price for each home they list.  This ensures that the seller prices the property appropriately for the market. 
7. Pre-screened buyers: A realtor can show the home only to pre-approved buyers, so that each property is shown only to buyers who are actively searching and able to purchase a home.
8. Extended availability: Most homeowners are available for showings only on evenings or weekends.  Realtors can conduct showings and open houses during the day as well, expanding the opportunities to show the home to prospective buyers and saving time for busy homeowners.
9. Emotional objectivity: Realtors can help homeowners assess offers more objectively, because they are not attached to the home.  They also provide unbiased assessments of the market.
10. Higher sale prices: Seller’s agents consistently negotiate higher sale prices for their clients, not only compensating for their commission, but also helping homeowners to make more profit. 

Ultimately enlisting a seller’s agent to for property sales saves the homeowner both time and money.  The assistance of a professional realtor is indispensable to any homeowner who hopes to maximize the home sale price and sell the home as quickly as possible. 

If you are seeking a seller’s agent in the Naples or Marco Island area, contact Clausen Realty today.  Contact Ian at ian@clausenproperties.com.

The Ins and Outs of USDA Loans

The current economic climate has made getting a home loan more difficult than ever. No longer are good credit and a steady income sufficient for mortgage qualification.  For many families, a USDA loan can make homeownership a reality. 

How a USDA Loan Works

Banks and traditional mortgage lenders often shy away from providing home loans to low- and moderate-income families.  The USDA began the Guaranteed Rural Housing Loan Program to help these families qualify for a traditional home loan, sometimes without even a down payment.

Rather than issuing the loan, the USDA guarantees the bank’s loan.  This measures significantly reduces the financial risk of lending to someone who does not have ideal qualifications for a loan.  Each lender must be approved by USDA Rural Development, to ensure that they are reputable and solvent. 

The USDA charges a one-time fee to guarantee the loan.  For new purchases, the fee is 2% of the loan amount.  For refinancing, the fee is 0.5% of the loan.  Usually the lender builds this amount into the closing costs, which can also be covered by the loan.

Closing costs, title services, legal fees, and escrow expenses can also be covered by the loan. Therefore people can use a USDA loan to purchase a home with virtually no up-front expenses.

Who Qualifies for a USDA Loan

The USDA Rural Development program targets individuals who live in rural areas.  This includes areas with populations of less than 10,000 and some communities that have 10,000 to 25,000 residents.  Other requirements include the following:

• Sufficient reliable income that does not exceed the area limit for moderate income
• The total of principal, interest, taxes and income (PITI) cannot exceed 29% of the gross monthly income
• US citizenship, or status as a qualified alien or permanent resident
• Positive credit history, with total debt not exceeding 41% of gross monthly income
• Intent to use the home as a primary residence

Applicants need not have money for a down payment, as this expense can be included in the loan.

What Homes Can Be Purchased with USDA Loans

Loans can be used to purchase either pre-existing or new homes, so long as the homes are in good repair, structurally sound, and functionally adequate.  Neither the size or design of the home is restricted, but the home cannot be used to generate income. 

The home must be located in an eligible area.  A USDA Rural Development field office can help potential homeowners determine eligibility of a property. 

For more information about USDA loans, visit the USDA website.  To learn more about buying a home, or to find a home in the Naples area, contact us at Clausen Properties.

A Realtor’s Secrets to Creating Curb Appeal

In a strong buyer’s market like we have now, sellers must work harder than ever to make an outstanding impression on agents and buyers alike.  The first step is creating curb appeal, which refers to the attractiveness of a home’s exterior appearance.  Every aspect of the exterior, from landscaping to hardware, factors into a home’s curb appeal.

Landscaping

A well-manicured lawn comprises only one small part of appealing landscaping. Just as critical are fresh, welcoming plants that look healthy and well kept:

• Add a splash of color with seasonal flowers.  Mums or sunflowers complement autumnal shades, and poinsettias bring bold shades in the winter. 
• Choose landscaping that requires minimal maintenance and suits the climate.  In Florida, delicate shade- or water-loving plants often need constant care.
• Trim hedges and remove dead blossoms.   Landscaping should always look like it’s thriving and tidy. 
• Bring interest to the face of a home with window boxes, shutters, or other architectural details. 
• Take care of brown patches in the lawn, either with new sod or reseeding.  Be sure to water regularly to stimulate new growth.

Paint and Hardware

The discerning seller will notice the quality and aesthetic of every detail on a home’s exterior.  A fresh coat of paint and the right hardware give any home an extra touch of polish.

• Choose a somewhat neutral look for the exterior that blends in with the neighborhood.  That allows buyers to envision their own personal touches for the home.
• Select paint and trim colors that match the style of your home.  Colonial homes look best in cool, understated colors, while Key West-style homes stand out with pastels.
• Use classic, coordinating hardware for the mailbox, carriage lights, doorknobs and knocker.  A kick plate will keep the front door looking clean. 
• Consider pressure washing the exterior of the house, to keep paint looking crisp and to prevent the growth of algae or mildew in moist areas.

Finishing Touches

The key to maintaining curb appeal is to evaluate the home’s appearance from the perspective of a potential buyer.  Every detail contributes to the overall perception of the home.

• Keep the garage door closed whenever possible.  Even the most organized garage can look unsightly from the street. 
• Clean windows and sweep the front walkway on a regular basis.  Banish spider webs from around light fixtures. 
• Clear out gutters and rain pipes frequently.  Replace or repair any drooping gutters, especially on the front of the house. 
• Pick up toys and equipment from the front yard, to create a clutter-free first impression. 

Building curb appeal is an excellent way to encourage interest in a property from prospective buyers.  If you are ready to buy or sell a home, contact Clausen Properties for expert assistance.  Reach Ian at ian@clausenproperties.com.

Restaurant Review: The Italian Market and Deli

The Italian Deli and Market

South Seas Plaza

247 N. Collier Blvd.

239-394-9493

Hours:

Open Monday to Saturday

Monday and Tuesday: 9 am-2 pm

Wednesday through Friday: 9 am-2 pm; 4-9pm

Saturday: 4-9pm

One of the challenges of vacation is finding great local places to eat.  The Marco Island area offers many delicious options, including the Italian Deli and Market in South Seas Plaza.  After 13 years, the deli has become a local institution, and neighbors often stop in to say hello to owners Susan and Jimmy Barney. 

The restaurant offers hot and cold food for dine-in, carryout, or custom catering.  The menu includes soups, salads, and hero sandwiches made with fresh meats, cheeses, and vegetables. 

Jimmy recently expanded the menu by adding a pizza oven.  On Fridays, hand-tossed pizzas are available for the lunch crowd.  The rest of the week, pizzas are served after 4 pm.  The deli’s intimate setting allows patrons to get a first-hand view of cook Drew Roach’s pizza tossing skills. 

Packed with deli staples like chips, dry goods, and even wine, the Italian Deli and Market looks and feels truly authentic.  Seating is limited, so arrive before the rush if you want to get a table!

Have you experienced the Italian Deli and Market? Share your opinions with our readers and leave a comment below! For more information about vacation activities in Marco Island or Naples, Florida, contact Ian Clausen, GRI of Clausen Properties, Inc at ian@clausenproperties.com or by dialing 239 394 1870.

The Top Myths about Short Sales

Contrary to popular misconception, a short sale does not refer to any home sale made under the market value of the home.  Nor does a short sale mean that the transaction is completed in a short time period.  In a short sale, someone literally gets “shorted” in the transaction. The true definition of a short sale is an arrangement between the bank and the homeowner to accept an offer for less than the amount owed on the home’s mortgage.

Myth #1: Homeowners who agree to a short sale aren’t responsible for the remainder of their mortgage.  

Truth: Every bank uses unique policies, but most banks will use a promissory note to hold the homeowner responsible for the deficiency, that is, the amount the bank has been shorted in the home sale.  The homeowner then pays off this note just like a regular loan. 

Myth #2: A short sale is the same as a foreclosure.  

Truth: Foreclosure means that the homeowner simply stops making payments on the house and allows the bank to take possession of the property.  Homeowners who foreclose are still responsible for the entire amount they still owe the bank, which is why they usually end up filing for bankruptcy.  In a short sale, the homeowner is responsible only for the difference between the sale price and the amount owed. 

Myth #3: Short sales are completed more quickly than other home sale transactions. Truth: A short sale introduces the bank—and sometimes other lenders–into the sales transaction.  Therefore a short sale often takes longer than a regular home sale, because the bank must approve the every step of the sale.  Sometimes it can take months for a short sale to be approved in the first place, because home mortgages often involve multiple lenders.   

Myth #4: Only people who are behind on their mortgage payments qualify for short sales.  

Truth: To qualify for a short sale, the homeowner must only demonstrate that the amount owed on the loan exceeds the home’s market value.  Many homeowners pursue a short sale if they are forced to move during a down market, due to relocation or other factors. 

Myth #5: Short sale homes must be listed at prices lower than other homes in the area. Truth: Short sale homes should be listed at a comparable price to other homes in the area.  The bank or mortgage lender will conduct its own appraisal of the property, to ensure that any sale is fair.  Just like any other home listing, short sale listing values can fluctuate due to market conditions, the state of the home, and the homeowner’s motivation to sell.

Before moving forward with a short sale, homeowners should consult an accountant and a real estate attorney.  Every case is different, so it is important to get personal advice from a trusted, reputable professional.

If you need an agent for your home’s short sale, contact Ian Clausen, Realtor, GRI at ian@clausenproperties.com or by dialing 239 394 1870.

Home Buyers’ Tax Credits: A Quick Overview

As part of its initiative to stimulate the economy, the federal government enacted the Worker, Homeownership, and Business Assistance Act of 2009.  Perhaps the most popular portion of this Act is the tax credit for qualified homebuyers, but most people still have misconceptions about the applicability of these laws. First-time homeowners are not the only ones eligible for a tax credit; both repeat homeowners and military personnel can qualify.

Requirements for First-time Homebuyers

A first-time homebuyer is defined as someone who has not owned a principal residence within the past three years.  If a married couple buys the house, both spouses must meet this criterion.  Ownership of a rental property or vacation home does not disqualify someone from getting a tax credit as a first-time buyer. 

• The credit amount is based on the price of the home purchased.  The first-time buyer will receive a credit that equals 10% of the home’s purchase price, up to $8,000. 
• Home purchases must be completed between January 1, 2009 and April 30, 2010.  So long as a binding sales contract is signed on or before April 30, 3010 and the sale is complete by June 30, 2010, the sale qualifies the buyer for the tax credit.
• The income requirements were changed when the Act was extended to April 2010.  For homes purchased between January 1 and November 6, 2006, single buyers’ income limit was $75, 000 and joint buyers’ limit was $125,000.  The limits were doubled for homes purchased November 7, 2009 to April 30, 2010. 
• Homes must be priced at $800,000 or less for the buyer(s) to qualify.  If the home is sold in less than three years, or does not serve as the primary residence for at least three years, the tax credit will be “recaptured” by the IRS.

Requirements for Repeat Homebuyers

The Act defines a repeat homebuyer as anyone who has owned and occupied their previous home for five consecutive years out of the last eight.  The provision for repeat homebuyers was added when the Act was extended in November.

• Homes purchased between November 6, 2009 and April 30, 2010 are eligible.  So long as a binding contract is signed by April 30, 2010, the sale can be completed by June 30, 2010.
• The income limit is $125, 000 for single buyers and $250,000 for married couples.
• The amount of the credit is 10% of the home’s sale price, up to $6,500.  Homes must be valued at $800,000 or less to qualify. 
• If the home is sold or no longer serves as the primary residence within three years, the credit will be recaptured.

Special Exemptions for Military Service

Because members of the military and other civil service organizations may be required to move as part of their duty, the federal government has passed special regulations to extend the Act for these families.  Qualified service members include uniformed employees of the armed forces, Foreign Service, or US intelligence community.

• To qualify for these exceptions, the employee must be on official extended duty, at least 50 miles away from home for more than 90 days.
• If the employee’s extended duty requires a move from the primary residence within three years of the home purchase, the IRS will not require the recapture of the tax credit.
• For those on extended duty, the Act has been extended by a year.  A binding sales contract must be signed by April 30, 2011, and the sale must be closed by June 30, 2011. 

If you still have questions about the Act, contact a trusted tax professional or read more here.  For more information, contact Ian  Clausen, Realtor, GRI at ian@clausenproperties.com or by dialing 239 394 1870.