With almost any information about homes for sale available online, buyers are able to narrow down their list of most interesting homes without spending an entire day driving from house to house…and most of them are doing this based on the photos of those properties.

The New Orleans MLS (Multiple Listing Service) allows an agent to upload up to 12 photos of each listing.  Is every home a candidate for 12 photos? Probably not.  Tenant occupied properties are notoriously hard to get good photos of – no matter how hard we try.  Homes that have been flooded and gutted usually don’t warrant more than a couple of exterior pictures and maybe one or two interior photos.

However, too many agents are still just using a couple of shots of the front of what might be some great homes and calling it advertisement or marketing.

The result? Houses that are passed over by buyers that assume there is something wrong with them.

I did a quick search of the active listings on the West Bank and of the 1,268 single family homes for sale here is what I found:

• 17% had only 1 photo
• 13% had between 2-5 photos
• 45% had between 6-10 photos
• 25% had the maximum number of photos allowed

These numbers don’t even get into the quality of photos being used.  Here’s what the buyers will see in that 17% that have only 1 picture to draw them in with:

• Photos taken from across the street that give a great view of the trees, but not much of the house
• People peeking out of the front doors (are they included in the sale?)
• Blurry and out of focus pictures (should I check my glasses?)
• Thumbnail photos that are so tiny there is no way a person could decide if it’s a house they might be interested in…combined with a description like “Must see to appreciate”
• Driveways and front yards so full of cars that it looks more like an auto lot than a home
• Pictures filled with garbage cans, overgrown grass and the shadows of the agent taking the photo
• Photos that are so crooked buyers are waiting for the house to slide right off of the screen

So what is my point? Sellers should be reviewing the marketing efforts of their agents.  Ask to see the photos they are using – if you don’t like them, demand additional or replacement photos.  Ask to see the MLS printout that buyers will get.  Don’t be afraid to ask that the descriptions be detailed and accurate…good spelling and grammar are bonuses as well, but that’s a topic for another day.

Marketing and showcasing your home in it’s best light is what your agent is being paid for. Be sure you are getting your money’s worth, because that shouldn’t be optional either.

In keeping with the spirit of the season between Mardi Gras and Easter, here are a few suggestions for what home buyers and sellers on the West Bank of New Orleans might want to give up this year:

Home Seller Suggestions

Give up making your home hard to show.  We’ve talked about this before, but when you are selling your home  it is critical to make it easy for agents to get their buyers in.  Have a plan for what to do with your pets during showings, for keeping the house neat and tidy for those last minute appointments and allow a lockbox to be installed for ease of access.

Give up overpricing. Take a fresh look at the comparable sales in your neighborhood and make adjustments as needed.  I know you love your house…..but buyers are looking at the numbers and if you don’t fit within them, their response will be “Next!”

Give up thinking that you shouldn’t help with buyer closing costs.  A large percentage of the homes sold on the West Bank last year included seller contributions towards closing costs.  It is no longer an anomaly to receive a request for assistance in an offer, and if you are not willing to keep your eye on the bottom line, you may be spending a much longer time on the market.

Home Buyer Suggestions

Give up working with several different real estate agents.  Choose one professional to assist you in finding the right home.  It’s no secret that we all have access to the MLS and the listings that meet your needs.  Truthfully, if most agents find out that you are working with others, you may find yourself without an agent at all.

Give up making extremely low offers.  While the market has changed in the last few years, most home sellers are not desperate and some of them are insulted by offers that are pennies on the dollar.  The exception to this rule is dealing with bank owned properties, because banks don’t get insulted….but they do compare multiple offers and accept or counter the highest and best.  If you are just fishing for a bargain, you might be losing out on some terrific deals because you felt you had to offer far below what might be a realistic asking price.  Ask your agent for comparable sale information before you decide on an offer price.

Give up asking for the sun, the moon and the stars after a home inspection.  No house is perfect.  Louisiana purchase agreements even state that offers are made based on the apparent condition of a property.  A home inspection is to allow you to uncover hidden problems with a home, not to provide a basis for beating up a seller who may just tell you to take a hike.

More home buying tips

More home selling tips

While the old real estate mantra is location, location, location, the primary driver in most home purchases is price, price, price.

Here’s a quick look at the 2009 home sales on the West Bank, broken down by price range:

There are some interesting statistics here when you review 2009 sales, because we are seeing not just a reduction in the overall number of homes sold in the area, but also a shift by buyers into lower price ranges.  Some of this shift may be due to the first time home buyer tax credits that were offered in 2009 and then extended into 2010.  Generally, first time home buyers purchase at or below the average sale price in an area.  In 2009, the West Bank average was a little over $156,000 and homes in the $120,000-$160,000 range made up almost 30% of the annual sales.

The real issue now is inventory.  If you are considering selling your West Bank home in 2010, you may be in for some stiff competition depending on where your home is located and what condition it is in.

Some of these number are just downright disheartening, especially in the over $250,000 range where the number of homes currently for sale exceeds the total number sold in 2009 in that same range. 

What else does this chart tell us?

Buyers have a LOT to choose from in our current market.   If I was in the market for a home priced around $180,000, I would look at homes that were a little above my price range (assuming that the seller is willing to negotiate) and those that cost less than my budget (assuming there might be a bargain to be had). 

With that criteria, there are over 175 homes currently for sale that could potentially be on my list.  Of course, this is before narrowing down to the neighborhoods I like the best, the number of bedrooms I need and the condition of some of the homes.  But, that’s still a big old number and looks like an awful lot of supply when compared to the current demand.

What’s a home seller to do?

Be realistic. Knowing that you are up against a lot of competition means that you must be priced competitively from the moment your house goes on the market.  Do your research and take advantage of all of the information that your agent can provide to help you pin point the right price for your home.

Be flexible.  With the anticipated reduction in the amount of seller assistance allowed by FHA, I expect to see more buyers asking for the maximum amount between now and this summer.  Offset that with the move up tax credit available for homes under contract by April 30th, and you may have a little more wiggle room in your negotiations.  (NOTE: This is not financial advice – check with your tax preparer to determine if you qualify for the move up credit)

For more information about home buying or selling on the West Bank of New Orleans, or relocating to or from NAS JRB New Orleans, please contact the West Bank Living Team.   It would be our pleasure to have the opportunity to assist you with any of your real estate needs and have a little fun while doing it!

The upfront Mortgage Insurance Premium (MIP) will be increased from 1.75% to 2.25% of the loan

This cost is typically rolled into a home buyer’s loan, increasing the monthly payment.  The additional half percent MIP charge will result in negligible changes in payment amounts for most borrowers.  This change is expected to go into effect in the spring.

New borrowers will now be required to have a minimum 580 FICO (credit) score in order to take advantage of the 3.5% down payment program

This is change is unlikely to impact very many buyers simply because the majority of lenders have been requiring a minimum 620 FICO for some time now.  If, however, a lender is making loans to borrowers with credit scores of less than 580, the down payment requirement will be increased to 10%.  These changes are expected to be put into place this summer.

A reduction in the allowable amount of seller assistance to FHA borrowers

Currently, the maximum seller contribution towards closing costs and pre-paids is capped by FHA at 6% of the purchase price.  The new guidelines will reduce this amount to 3% of the purchase price.  This change is also expected to be put into place this summer.

Of the three changes, the reduction in the amount of seller assistance is most likely to impact buyers in the New Orleans area.  FHA loans made up 43% of the single family home sales on the West Bank of New Orleans in 2009.  53% of the FHA borrowers received some type of seller assistance with their purchase.  Of buyers receiving seller contributions in 2009, a whopping 64% received in excess of 3%.

Now, this does not mean that none of the sales would have taken place under the new guidelines.  There were many that were just over the 3% threshold that I’m sure would have still closed if the new rules were in place.  However, there were a substantial number of buyers who appeared to get almost all of the money needed to close (except the down payment) in the form of seller assistance.  These are the buyers that may be pushed out of the market in 2010 as they will be forced to save longer and have more of their own cash invested in their home purchase.  Don’t get me wrong…I don’t think that having more of a financial stake in a home purchase is a bad thing, as it tends to result in buyers who are truly ready to be home owners.

What’s the possible impact on West Bank home sales?

For buyers, this means you will need more cash on hand for your FHA home purchase.  Not only do you need the 3.5% down payment, but the cap on seller contributions towards your closing costs and prepaids (taxes, hazard insurance, flood insurance, lender fees, etc) means that you must have a larger amount of money saved before attempting to purchase a home.  For some people, this will result in a longer waiting time until you can buy.

For sellers, this could possibly mean a decrease in the number of qualified buyers for your home. A smaller pool of buyers equates to a reduction in demand.  A reduction in demand usually equates to lower selling prices.

If you have been waiting to put your home on the market until later in 2010, my recommendation is to do it as soon as possible – before these changes go into effect, since we do not know what the fall out might be.  This advice only applies to those sellers that fall within the current FHA loan limits.

• For more details, read the entire HUD release here

As always, your lender is the best source of detailed mortgage advice for your particular situation.  If you need a referral to a local FHA lender, please contact the West Bank Living Team and we would be happy to help you.

For more information about home buying or selling on the West Bank of New Orleans, or relocating to or from NAS JRB New Orleans, please contact the West Bank Living Team.

It would be our pleasure to have the opportunity to assist you with any of your real estate needs and have a little fun while doing it!

To start the new off on the right foot, our friend, Amie Chaney of Home Staging by Amie, recently provided us with another list of home staging tips designed to address some of the problem areas that exist in almost every home:

Use neutral colors of paint which are not just beige but include taupe, green and gold.

Use the highest possible wattage light bulbs in all fixtures.

Make sure your home has a pleasant smell. If you can’t tell get an objective third party you can trust to answer the question.

Check to make sure the baseboards are clean and free of nicks and dings.

A Mr. Clean Magic Eraser works wonders for removing fingerprints and other discolored areas of woodwork and walls.

Whatever type of flooring you have – make sure it shines.

If you have several layers of window treatments consider removing all but the sheers to create more light and a less heavy feeling in the room.

What about your walls – are there holes that need to be patched and painted?

If you have personal collections pack them away.

Remove all personal photographs.

Do you need a little help getting your home ready to sell? Contact Amie for a professional home staging consultation.  Her advice can help make the difference between listing your home and selling it.

While making my own list of resolutions, I put together some suggestions for home buyers and sellers that might help your real estate goals for 2010 come true.

Home Seller Resolutions

Make your home the best value in the neighborhood

Your home may be the most beautiful, with the most updates, but if it’s not priced to attract the buyers looking in your area, then you’ll be starting the year out disappointed.  Ask your agent to provide a new list of competing listings and recent sales and review them carefully.  Be sure that you know what the successful sellers in your neighborhood did and follow their lead. Did they provide closing cost assistance to the buyer? Did they offer a home warranty? Did they allow the purchaser to assume their flood insurance? These are all incentives for a buyer to choose your home over the one right down the street.  A good place to start your research is with a free online report of listings and sales in your neighborhood.

Be prepared for all showings

Beyond the common sense advice of keeping the beds made, the dishes out of the sink and the toys picked up and put away, there is more to being prepared for buyers.  Have you cleaned out your closets and made them appear as roomy as possible, or will those old tennis rackets fall out and hit someone in the head?  Did you clear out the garage to showcase the storage space or is it jammed to the rafters with 20 years of stuff that you can’t bear to part with?  Do you have seasonal plants in the garden or is it overgrown with the leftovers from summer?  From the moment a buyer pulls up in front of your house, you want them to feel at home.  Read Home Staging Tips for more advice on preparing your home for sale.

Make your house easy to show

When an agent is scheduling appointments to show homes to potential buyers, don’t give them a reason to skip over yours because it’s difficult for them to get in.  With the large number of competing homes in most neighborhoods on the West Bank, it’s important to be flexible and not turn down appointments.  If your showing instructions read something like “All appointments must be scheduled 10 days in advance of the new moon”, you are going to be in for the long haul trying to sell your home.  Have your agent install an electronic lockbox and get those buyers through the door at their convenience.

Home Buyer Resolutions

Save, save and save some more

The guidelines for mortgages are becoming more and more stringent, with higher down payments than we have seen in several years being required.  It’s important to save as much as possible before you starting house hunting.  Not only will you need cash for a down payment and closing costs, but you don’t want to move into a home without the resources to furnish and maintain it properly.  Read Are You Ready to Be a Home Owner?

Don’t buy more house than you can comfortably afford

While lenders are getting stricter, they will still qualify you for the maximum mortgage that fits their lending model.  This may not be the same amount that you are comfortable spending each month.  It’s tempting to want to buy more house than fits your budget’s comfort zone, but don’t do it!  You’ll soon find yourself dipping into your savings for an unexpected home repair only to find that there is no more savings because you are stretched too thin.

Be realistic about your wants and needs based on your budget

When you decide to buy a home, your agent will ask you a lot of questions about your wants and needs.  This is the time to make a list of the things you absolutely cannot live without and those that are just nice-to-haves.  Space for everyone to sleep is a need; a 3 car garage is a want.  A functional kitchen is a need; an in-ground pool is a want.  Bells and whistles are nice to have, but staying within your budget is more important than those granite counter tops that you can always put in later.

Search New Orleans West Bank Homes for Sale

The West Bank Living Team provides professional real estate services to home buyers and sellers on the West Bank of New Orleans.  Contact us for assistance with any of your real estate needs.  It would be our pleasure to help you!

Making your living areas appear inviting and spacious can be an easy task with just a few changes.  Amie’s tips are in green, while our recommendations are in italics.

Tips for Staging Living Rooms and Dens

Make shelving appear larger by packing up 80% of what is currently there.  A good rule of thumb is that if it has eyes, it has to go.  This means packing up the family photos!

Remove anything that might be off putting to potential buyers such as mounted deer heads, skeletal remains of animals or religious items.  Some people have very strong feelings about this.  You don’t want to turn off a buyer who is a member of PETA or who has different religious beliefs than you do.

Add splashes of color by using throw pillows and throws.  Use discretion though…choose one accent color and use it sparingly.

Use only healthy, thriving green plants in your home — remove straggly or overpowering plants.  This is the place where we remind you about getting rid of (or packing away) those dusty, fake house plants.  No one is fooled by them, so out they go.

If you have a fireplace, this is a great selling feature. Make sure it is cleaned and well maintained.  During the winter months, place a few logs in the fireplace.  During the spring and summer, a few large candles can fill the space and make it appear appealing year round.  Also, have the chimney cleaned before you get an offer and it comes up during inspections.

Your fireplace mantle should not be overburdened with items. Less is more when it comes to mantles – a pretty flower arrangement or several candles will do the trick.  Remember, neutral is the key.  No family photos, no knick-knacks, no strings of lights and no collectibles.

To maximize floor space there should be no magazine racks, baskets or piles of books on the floor.  Now is the time to sort through all of your reading material and pack what you want to move and either toss or donate the rest.

The use of current issues of beautiful home magazines such as Veranda, House Beautiful and Traditional Home on the coffee table is acceptable.  Again, everyone has different taste, so those back issues of Hunting Guide will need to be removed.

If you have 8 foot ceilings, do not put anything on the top of bookcases or cabinets. This will make the ceiling seem lower than it actually is.  Making buyers feel a little claustrophobic is not part of the marketing plan.

Group like items in odd numbers such as 3 candle holders or 3 prints.  Don’t overdo it!  Just a couple of groupings is enough for all but the largest of rooms.

Thank you, Amie, for continuing to provide great information to our readers.  If you are looking for professional home staging services in southeast Louisiana, please visit Home Staging by Amie for more information on how Amie can help you prepare your home to appeal to even the most discriminating of buyers.

The West Bank Living Team provides professional real estate services to buyers and sellers on the West Bank of New Orleans.  Making your home selling or buying experience fun is our goal!

Search New Orleans West Bank Homes for Sale

More Home Staging Tips

Why, you ask?  Because while holiday decorating is fun and festive, too much can leave buyers unable to picture themselves at home in your house – not exactly the tone you want to set when selling.  Not everyone has the same beliefs and customs that you do and your job, when selling, is to make your home appeal to as many potential buyers as possible, including the ones that do not observe Christmas.

When I sold my last home, I deliberately waited until after the holidays to put it on the market.  Showing activity slows down dramatically the closer you get to Christmas, and yes, I know that the buyers that are looking at this time of year are motivated.  They are also bargain shopping, assuming that sellers absolutely have to sell if they are on the market at this time of year.

If you must have your home on the market and you insist on decorating for the holidays, here are a some dos and don’ts to keep in mind:

Don’t fill the front yard with inflatable snowmen, 8 mechanical reindeer, Santa’s workshop and a blow up  globe filled with penguins ice skating in the snow.  Remember all of those lectures we’ve given you about the importance of curb appeal?  This is not what we had in mind.

Don’t be sucked into the newest trend of blinking, strobing LED Christmas lights…unless you really want your house to resemble a dance club on techno night.

Don’t put out the musical holiday door mat that yells HO HO HO when anyone steps on it.  It scares the bejesus out of Terri when she’s showing houses.

Don’t buy the biggest tree that you can push, pull and cram into the door…unless you really want your living room to resemble the Grinch’s heart and look two sizes too small.

Don’t cover every inch of every end table, coffee table and bookshelf with your collection of international Santas.  They are almost as creepy as that room full of dolls with eyes that follow us everywhere.

Don’t ring your tree with your heirloom train set  unless you want to get that phone call from your agent asking if you can find replacement parts on eBay.

Do use fresh greenery to decorate.  It’s simple, tasteful and makes the house smell good.

Do set out a plate of cookies for potential buyers to make them feel welcome.  Leave a small card to let them know they can help themselves (don’t forget napkins!).

Do use pretty wrapping paper with matching bows to make your gifts part of your home staging.  Color coordinating your packages and ribbons may seem a little too Martha Stewart for you, but it makes an impression on buyers that carries over to their perception of how you have maintained your home.

Do remember to turn on some quiet background music before leaving for a showing.  Light jazz or classical is perfect, but if you want to play holiday music be sure that it’s instrumental. 

Do consider a smaller tree this year with fewer ornaments.  Remove a piece of furniture to create space for the tree and avoid making the room feel cramped.

Do remember that your knick knacks can be attractive to small children when they are visiting with their parents.  Put away anything that you would be heartbroken to lose.

More staging tips from West Bank Living

• Home Staging Tips Video | Toy Storage
• 10 Easy Ways to Prepare Your Kitchen When Selling Your Home
• Creating Curb Appeal

Home selling tips from West Bank Living

• Why Do An Inspection Before Selling Your Home
• A Home Improvement That Pays for Itself
• Selling Tips for Vacant Homes

If you are in the market to buy or sell a home on the West Bank of New Orleans, please contact the West Bank Living Team.  With dedicated listing and buyer agents who believe that buying and selling a home can be fun, it would be our pleasure to help you with any of your West Bank real estate needs.

Here are details on the new credit, courtesy of the National Association of Realtors:

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer’s Credit Amount Determined?

Each home buyer’s tax credit is determined by two additional factors:

1. The price of the home.
2. The buyer’s income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount of the credit will be recouped on the sale.

More Tax Credit Information from the National Association of REALTORS:

The Basics: Extended Home Buyer Tax Credit

How to Get: Extended Home Buyer Tax Credit

2009 First-Time Home Buyer Tax Credit

How to Get: 2009 First-Time Home Buyer Tax Credit

Timeline

Getting the Credit

How to Get the Extended Home Buyer Tax Credit

Applying the Credit to Your 2009 or 2010 Return

Determining Your Credit Amount: Form 5405

Bridge Loans: How to Get the Credit Upfront

NAR Tax Credit Resources

Tax Credit Comparison Chart (PDF: 455K)

Home Buyer Tax Credit FAQ (PDF: 596K)

President’s Podcast: Tax Credit Expanded and Extended

Please note that I am not a tax professional.  If you need more specific information about how the tax credit can benefit you or how to file for your credit, please contact your personal tax professional or the Internal Revenue Service.

If you are considering buying a home on the West Bank of New Orleans, please contact the West Bank Living Team and let us tell you how we are different by design, with dedicated buyer and seller agents who work for YOU.  It would be our pleasure to assist you with any of your real estate needs.

This video contains some great tips about storage solutions for families with children (or even just someone with a whole lot of “stuff”).

Can’t see the video?  Click here.