Indy Home Marketing - February 2009 Newsletter

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February 2009 Newsletter

Volume 3, Number 2

	STAGING YOUR HOME TO SELL Want to sell your home quickly and for top dollar? Staging can help. "Staging" is showcasing your home in its best and most appealing light to the majority of home-buyers. In theory, staging isn't hard or costly,
	but in reality, many homeowners find it difficult because it is often hard to see something objectively when we love it. An easy way to see effectively staged homes is to visit decorated models. Decorating a model is expensive, but builders are willing to invest the cost because they understand just how well a staged home sells. You too can profit from this knowledge. Continued

Less-Stringent Standards Spur Popularity

FHA LOANS BECOME TOP HOMEBUYER CHOICE

The use of mortgages insured by the Federal Housing Administra-
tion (FHA) is soaring in Indiana, growth that comes as many home
buyers are struggling to qualify for more traditional loans. Many
lenders, skittish as foreclosure and default rates rise, have dis-
continued mortgages for borrowers with less-than-perfect credit
or little saved for a downpayment.

Credit standards for FHA loans, by contrast are more relaxed. Fur-
ther, while many loans now require that borrowers put 20% down,
FHA loans mandate just 3.5%. Continued


		RECIPE OF THE MONTH Vegetarian Ribolita Soup February is normally one of the coldest months of the year in Indiana... and this vegetarian soup is a great way to warn-up when the weather is cold and

dreary. The recipe serves 6 and can be prepared in about
50 minutes or less. Recipe courtesy: The Food Network

INGREDIENTS:

•	1 rib celery, sliced (3/4 cups)	•	Kosher salt
•	8 cups vegetable broth	•	1 sprig fresh rosemary
•	3 cups baby spinach leaves	•	3 cloves garlic, chopped
•	1/2 cup shaved Pecorino-Romano	•	Freshly ground black pepper
•	1 (15-ounce) can cannellini beans	•	1 teaspoon dried marjoram
•	1 medium onion, diced (2 1/2 cups)
•	1/4 cup extra-virgin olive oil, plus more for drizzling
•	1 medium zucchini, diced (1 1/4 cups or 5 1/4 ounces)
•	1 (15-ounce) can diced tomatoes, in juice
•	2 carrots, peeled and diced (1/3 cup)
•	1/2 cup chopped fresh basil leaves
•	4 cups cubed sourdough bread (about 1/2 loaf)
•	1 head Savoy cabbage, cleaned and coarsely chopped or
	shredded (7 1/2 cups)

DIRECTIONS:

In a soup pot or Dutch oven heat the 1/4 cup olive oil over
medium heat. Add the onions, celery, zucchini, carrots, garlic,
and rosemary; season with salt and pepper. Cook until the
vegetables are soft and juicy, about 10 minutes. Add the
cabbage, tomatoes, basil, and marjoram and season again
with salt and pepper. Cook until cabbage is just tender, about
10 minutes. Stir in the beans and vegetable broth, and ad-
just the heat to simmer gently for 20 minutes.

Remove the rosemary sprig. Stir in the bread and spinach,
increase the heat to medium and cook until the soup thick-
ens, about 10 minutes more. Season with salt and pepper.
Ladle soup into warm bowls. Top with cheese and a little
drizzle extra-virgin olive oil.

RISE IN PENDING HOME
SALES REPORTED

Enticed by tumbling housing prices,
more Americans signed contracts
to buy homes in December despite
widespread concerns about the
economy, an industry group re-
ported on Tuesday.

The National Association of Realtors
said that pending home sales rose

6.3 percent in December from a month earlier, with the South
and Midwest showing strong gains. The number of pending home
sales — those in which a buyer has signed a contract but not
closed — were up 2.1 percent from December 2007.

“The monthly gain in pending home sales, spurred by buyers re-
sponding to lower home prices and mortgage interest rates, more
than offset an index decline in the previous month,” Lawrence Yun,
chief economist of the Realtors’ group, said in a statement. “The
biggest gains were in areas with the biggest improvements
in affordability.”

Still, the number of pending sales for 2008 was down 9.5 percent
from 2007 — a sign of the toll that the tight credit markets had
inflicted on the flagging housing market.

Home values dropped throughout 2008 as foreclosures soared,
buyers fled the market and banks battened down their lending
standards. In November, the Standard & Poor’s Case-Shiller
20-city price index, a closely watched barometer of the market,
fell at its fastest rate on record. The index of home values in
20 metropolitan areas receded to its lowest point since
early 2004.

The median home price (nationally) in December was $175,400,
down more than 15 percent from $207,000 in December 2007,
the National Association of Realtors reported. Those lower prices
contributed to a 6.5 percent increase in existing home sales in
December.

Across the country, pending home sales rose 12.8 percent in the
Midwest and 13 percent in the South. But they fell slightly in the
Northeast and slid 3.7 percent in the West despite a small buying
boom that had emerged as buyers snapped up cheap foreclosed
and distressed homes.

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FHA Loans Become Top Homebuyer Choice (Continued)

Area mortgage lenders acknowledge that almost all programs
offering minimal down payments have gone away, and that FHA
has become one of the few, or only, loan choices for home buyers
who can't make a substantial downpayment to buy a home. Be-
cause of this, many lenders have seen 40%, or higher, increases
in the use of FHA backed loans over the last year.

Experts also note, FHA loans have largely shed the stigma they
once had as a loan of last resort for those with lower incomes
or shaky credit. Further, they point out that today's FHA pro-
gram is far less cumbersome than it was in past years.

In a sense, the rising popularity of FHA loans during a widespread
economic crisis is apt, because the program began during the
Great Depression in an attempt to boost stagnant real estate
markets.

Today, the loans are available for as much as $292,100 in most
areas, and $373,950 for a two-unit property. Borrowers must
also take out mortgage insurance-money that helps fund the
program.

The FHA does not originate the loans. Instead, it insures them
against default, making them a safer bet for lenders.

The loans, which are also available for refinancing, are widely
used by first-time borrowers, including many who are now
eager to take advantage of the drop in real estate prices in
recent months.

FHA loans do have minor drawbacks, including the mortgage
insurance requirement and interest rates that are generally
higher than those available for other loans. However, while
FHA loans may not be the cheapest product in the mortgage
marketplace, if you’re not qualifying for other loans, It’s a
great avenue to make your dream of home ownership
a reality!

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STAGING YOUR HOME TO SELL (Continued)

Basic Staging Rules

• Clean. Your home must sparkle! To achieve this level is usually
only feasible by hiring a cleaning crew. In fact, having a cleaning
service return weekly while your house is for sale is probably a
pretty good investment. Get your windows professionally
cleaned inside and out too.

• Fix. Got a dripping faucet or a cracked tile? These will send the
wrong message to potential buyers. Getting them fixed before
you put your house on the market is a smart idea.

• Eliminate Clutter. The "50% Rule" requires that you eliminate
the clutter in your home by at least half. This may be the hard-
est rule of all! We love our clutter... it reflects our memories,
hobbies, and values. But it doesn't sell homes! Clutter makes
homes seem smaller and disorganized. (Have you ever noticed
that the really expensive stores seem to have an expansive,
clutter-free layout, while "cheap" stores are often a jumble of
merchandise?) Even the ancient practice of Feng Shui has as
a central focus the elimination of clutter.

• Executive Neutral. Neutral colors sell. It's a fact. Try to convey
an image of quality and neutrality. Potential buyers walking
through your home want to imagine themselves as the owners.
If you use styles or colors they would never select, you've just
turned them off. Staying high-quality, but neutral is safest.

• De-personalize. Remove objects that your potential buyers
won't be able to identify with. For example, political and re-
ligious items may turn off whole groups of buyers, because
they cannot "imagine" your home as their home. Buying a
home is an emotional decision, and you want potential buy-
ers to make an emotional connection with your home by
being able to "see" themselves in it.

The Test

Wondering if something is acceptable "staging"? Visit a model
home to see if they do it. For example, can you leave your
high-end, designer toaster out on your kitchen counter? Nope!
You won't find a single toaster in the kitchens of model homes.
Can you display an artsy topiary tree on your kitchen counter?
Yes. Model homes do!

Some Specifics

"Curb appeal." They say you can only make one "first impression,"
and people usually form their first impression within 30 seconds.
What potential buyers see when they drive up to your house will
be their first impression. This is a good place to spend a little
extra time and money. Plant flowers, trim bushes, weed, pick
up leaves, repaint your front door, replace tarnished house num-
bers or a dented mailbox, get a brand-new neutral doormat,
park your old car somewhere else.

Have a light and bright foyer entrance. The first glimpse inside
your home should give potential buyers positive, uplifting feel-
ings. Make your entryway as light and bright as possible. Leave
all the lights in the house on. (Have you noticed that model
homes do this?) Get rid of all area rugs. (Even authentic, high-
quality carpets should normally be removed since they break up
the expanse of floor space, making rooms look smaller.) Limit
your cooking to very plain foods so odors don't linger. (No
cabbage, garlic, or onions!) On the other hand, freshly baked
chocolate chip cookie smells are just fine! (They evoke a
homey feeling for almost everyone.)

Kitchens

Kitchens sell homes, so the importance of making your kitchen
appealing can't be underestimated. Clean and de-clutter! Any-
thing taking up counter or floor space must go (the only ex-
ception would be the types of designer touches seen in model
homes). Anything displayed on the refrigerator must go. If
your cabinets are old, consider resurfacing them. If your
cabinet knobs are old or out-of-date, replacing them can
be a relatively inexpensive "facelift." Get a woodtone touchup
stick from your home supply store and fill in any nicks and
scratches. Shelves and pantries must appear orderly and
very spacious. Put those extra items in your newly rented
storage unit or give them away!

Bathrooms

Again, clean and de-clutter! You absolutely must get rid of any
mildew/mold. If you have a glass shower door, squeegee it
after every shower. A mold-and-mildew remover and a soap
scum remover can work wonders. Glass cleaning products do
a good job of cleaning windows and mirrors (but be careful if
you have brass fixtures since ammonia will cause these to pit).
Do not display any personal toiletry items! Remove all de-
odorant, mouthwash, electric toothbrushes, etc. and put them
in your cabinet. (Model homes never, ever display such items!)
Pick up all bath mats/rugs. Keep your soap dishes pristine. If
you have bars of hand soap, they should look new. Get a new
set of high-quality, neutral, fluffy towels and display them.
(Model homes always do this!)

Rest of the House. Clean, repair, de-clutter, and de-personalize!
You're going for that Executive but neutral look, since almost
everyone can "see themselves" in a home like that.

• Remove those knickknacks!
• Remove enough items from your closet so you can hang a
garment without touching the garment next to it -- this could
be difficult. (Extra and out-of-season clothes go to your newly
rented storage unit.)
• Remove area rugs
• Remove throw blankets
• Remove throw pillows (or replace with "designer" pillows)
• If your houseplants are anemic, remove them. Replace with
high-quality silk plants or healthy houseplants in brass, wicker,
or plain ceramic containers.
• Take a hard look at your carpets. Are they stained or worn?
Replacing carpets is often an excellent investment because it
gives your home that "new" look that everyone wants. (Buyers
have notoriously poor imaginations, so replacing existing carpet
with neutral carpet is usually a much better idea than offering
a "carpet allowance.")
• Leave all the lights on (No burned-out lightbulbs!)
• Keep wastebaskets empty
• If possible, send your pets to stay with family or friends.
As much as we love our pets, they can be a major negative
distraction to potential buyers.
• Leave your home before potential buyers arrive

Summary

Once you accept the challenge that you're turning your home
into a "model home" to sell at top dollar and in record time,
you've won half the battle. You'll be well rewarded for your
efforts!

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