7 Home Staging Tips to Nail Your Sale

• Depersonalize
• Declutter
• Optimize lighting
• Choose a scent
• Set the table
• Increase your curb appeal
• Complete renovations

1. Depersonalize

One of the first things you need to do to stage your home is depersonalize. Take all your family pictures off the walls and remove any type of religious, political, or personal odds and ends that make your home feel lived in. Prospective buyers should be able to picture themselves living in your house. Additionally, stick to a neutral color scheme when it comes to the decorative accents you leave out.

Pro Tip: Selling during the holidays? You don’t have to miss out on decking your halls. Try these neutral winter decor ideas.

2. Declutter

Unless you’ve already moved into your next home, you still have to live in your current one while keeping it showing-ready. A deep clean every time your real estate agent brings someone over might not be sustainable, but at the very least you should maintain a decluttered environment. Decluttering can make your home appear bigger than it is, and generally help potential buyers envision how they might use the space. Before you list your home, move extra items to a temporary storage unit (or get rid of them altogether to speed up packing).

3. Optimize lighting

Lighting influences our mood more than we realize. In terms of home staging tips, the amount of light plays a big factor in whether somebody buys a home. A well-lit home can feel larger, cleaner, and more inviting when it’s being shown. To stage your home for sale, replace old light bulbs, clean your windows, open the blinds, and embrace the natural light.

4. Choose a scent

This one’s especially important if you have pets (or kids for that matter). If your home is carpeted, consider getting it replaced or deep cleaned before you list your house. You can sprinkle some baking soda to neutralize carpet odors as well. If you want to add a scented candle or oil diffuser to the mix, just make sure you choose something that’s not too overpowering.

5. Set the table

Don’t worry, there’s no cooking required for this home staging tip. You’re showing your home, not hosting a dinner party. However, setting the table is a welcoming touch that can make your house feel more like home—and help a potential buyer picture their own family living there. You can skip the cutlery, but a seasonal centerpiece on the dining room table is never a bad idea. 

6. Increase your curb appeal

When you’re selling your home, first impressions matter. That’s why curb appeal is important to consider when staging. At the very least, make sure your lawn is manicured and the exterior of your home is clean. If you’re selling during the holiday season, keep your outdoor decor neutral. Some warm-toned white string lights are always a winner. A flashing neon tableau of Santa gracing the nativity scene with his presence, on the other hand? Save it for next year.

7. Complete renovations

You don’t want to invest a large amount of money into a home just to sell it. Still, it’s important to finish up any ongoing projects before listing. Some common repairs include leaky faucets, damaged screens, and clogged drains. Anything that could deter a potential buyer from loving your home should be fixed. If you’re not sure which repairs to prioritize, check out our breakdown of what NOT to fix when selling your home.

Bonus home staging tips

Before you go, we’ve got a few more tips on how to stage your home for sale.

• Mount mirrors on your walls to amplify light and space
• Don’t shove everything in your closets, as buyers will likely be checking these spaces
• Give each room a purpose (that guest bedroom/home gym/office’s days are numbered)
• Incorporate house plants throughout

Your home can’t be everything to everyone, so don’t stress too much about incorporating every single piece of staging advice out there. Remember that these are just ideas, not requirements. The overall goal is simple: Help buyers see the potential in your home.

From interior decor to landscaping, the little details can make a big difference when staging your home for sale.

The post 7 Home Staging Tips to Nail Your Sale appeared first on Cardinal Financial.

what is a foreclosure?

Foreclosure is the process by which a mortgage lender can repossess property in order to repay outstanding debt if the borrower defaults on their mortgage. In the industry, we also use the term “foreclosure” to refer to the home itself, not just the process. Like short sales, foreclosures are often considered “distressed properties” because of the financial situation of the current homeowner and the physical condition of the property. Unlike short sales, foreclosures are riskier and they typically happen after the lender offers the option to short sale.

Here’s how it works: If the homeowner defaults, they’ll receive legal notice that the foreclosure process is about to begin. This gives them a chance to regain good standing and get back on track with their payments. If they can’t, they can either sell the property in order to avoid foreclosure or they’ll be forced to move out and their lender will repossess the property.

It’s not a pretty process, but there are pros to buying a foreclosure.

the pros of buying a foreclosure

It’s not a pretty process, but there are pros to buying a foreclosure. For one thing, foreclosed homes tend to come at a low price. That’s because the lender doesn’t want to hold onto the home and will likely be willing to offer it at a discount to get it off their books. For that reason, if you’re buying a foreclosure, you could get a great deal in a neighborhood that would otherwise be out of your price range. And yes, that means foreclosures are in all kinds of neighborhoods—even luxury homes can be foreclosed. So if every foreclosure you’ve pictured is a run-down shack, that’s not always the case. Some buyers are able to score really nice luxury homes at low prices.

In the best-case scenario, you pay below market rate for the home, the value appreciates, and you sell the property for more than what you bought it. It’s because of this benefit that buying a foreclosure can be a really good return on investment, especially if you’re in the market for flipping homes.

But if you’re not one for flipping homes and you’re just looking to buy a decent home at a super low price, buying a foreclosure could work for you. One advantage to this is that since the home is vacant, you don’t have to wait for the seller to move out. You get to come home faster and you get in at a low purchase price. Could there really be any cons?

If you’re buying a foreclosure, you could get a great deal in a neighborhood that would otherwise be out of your price range.

the cons of buying a foreclosure

For some home buyers, yes, there are cons to purchasing a foreclosed home. It’s a rigorous process that’s not for everybody, and definitely not for the faint of heart. If you choose to buy a foreclosure, buckle up for an impersonal process. The lender will often see it more as just a business deal so don’t be surprised if the involved parties are very forthright throughout the process (more on this later).

Buying foreclosures can also be very competitive. Since there are many buyers looking to snag a deal that they might otherwise not be able to afford, there tends to be higher competition for the property before it’s owned by the bank. Once the bank owns it, however, there’s not much room for negotiation because they set the price after they’ve taken care of things like eviction, tax liens, and repairs—efforts that demonstrate to their shareholders and/or investors that they’re offering the best price possible. If you bid below the bank’s price, chances are, you’ll be met with a counteroffer.

We mentioned the phrase “distressed properties” before—often the property is in poor physical condition because the homeowner encountered financial hardship, meaning not only were they unable to make their mortgage payments, they couldn’t afford to maintain the home either. And yet sometimes the home is in bad repair because the previous homeowner was negligent. Since foreclosure can be an emotional process with conflict between the lender and borrower, there’s a possibility for the homeowner to take out their frustration on the home.

Another con to buying a foreclosure is the delay in making an offer. It can take weeks to get a response from a bank or servicer, and consequently, this can affect financing. Most lenders have time limits on rate locks, so if your offer hasn’t been accepted and interest rates go up, the property becomes more costly.

how does buying a foreclosure work for the buyer?

Despite the cons, people buy foreclosures every year. That means, for some, the pros are greater. If that’s you, start by doing your research. You can start online just like you would for any other home search, but also check out special listings, public records, and the county courthouse.

Early on in the process, you might want to hire a real estate agent who has experience in foreclosures. They’ll have access to private foreclosure listings and a network of professionals they can connect you with. The process of buying a foreclosure is not your conventional process. You’ll want someone on your side who can help you navigate the tricky twists and turns of it. And like searching for homes online, your agent can help you research the recent sales prices of comparable properties (or comps) before you make an offer on a home. Then, based on the comps, you can write a more competitive offer and get closer to the price you want.

Sounds like a lot of research so far, and we all know that research takes time. That said, don’t be hasty about this purchase. Buying a foreclosure can be risky business. So heed the old adages: Take your time. Prepare for the worst. Don’t sweat the small stuff. And take it one step at a time.

how is it different from buying a non-foreclosure?

Remember that your experience buying a home is going to be vastly different from others’. Turnkey homeowners, for example, might have more wiggle room to go over their budget because their purchase is less risky. When you’re buying a foreclosure, you have to make a budget and stick to it. If not, it could be more costly for you in the end.

You should also keep in mind that this will also be a unique lending transaction. Depending on your lender, it’s likely to be a very impersonal process. For the lender, it’s strictly a business decision. They’ll only go through with the foreclosure if the numbers make sense for their bottom line. However, when you buy a foreclosure through Cardinal Financial, you’ll always get a personal lending experience. So get in touch with us and we’ll start by getting you pre-approved. Pre-approval is important to the process of buying a foreclosure. It’ll give you greater bargaining power when the time comes to make an offer.

Like buying a short sale, a foreclosure is an “as-is” purchase, so you can expect not to get anything that resembles a seller’s credit, discount, or the cost of any home repairs “thrown in.” When buying a foreclosure, there’s very little compensation for damages on the home, and consequently, very little room for negotiating post-home inspection repairs.

Three people you should know

And finally, as the buyer, there are three people you should keep handy. In addition to your real estate agent and mortgage lender, get a home inspector, a title company, and a lawyer.

1. Get a reputable home inspector. “Distressed property” and “as-is” should be keywords prompting you to not only get a home inspection but get one from a very reputable inspector. Your agent should be able to help you with this. Then, once you have your vendor, get a home inspection before you make your offer. This could reveal issues you’re not prepared or willing to handle and you may want to walk away. Better to know these things up front.
2. Get a title company that is well versed in foreclosures. The title company’s job in any mortgage process is to run a title search and report. This ensures there are no discrepancies with the title and no liens against the property. In a foreclosure, this will need to be a very comprehensive process. With such a unique transaction, there’s a higher chance your title company will dig up additional liens they’ll need to resolve.
3. You might also want to get a lawyer. While your real estate agent can give you great professional advice, they’re not exactly a legal advocate. When engaging in such a risky transaction, it can’t hurt to have a lawyer on your side.

Are you interested in buying a foreclosure? Call Cardinal Financial today and let’s get started!

The post Pros & Cons of Buying a Foreclosure appeared first on Cardinal Financial.

what is a short sale?

A short sale happens when a homeowner wants to sell their home but owes more on their mortgage than the home is worth. Usually, they opt for a short sale because they’ve fallen into financial hardship. In order to sell, they have to demonstrate their financial situation to the lender and show that they cannot pay off the rest of their mortgage, whether that’s in monthly payments or in a lump sum.

Before a homeowner can put their home up for short sale, their lender has to approve. Since they’re receiving less than the amount the borrower owes, it’s up to the lender to count the cost and determine whether it’s worth it to move forward with the deal. This is why it’s called a short sale, because the mortgage lender is agreeing to a “short” payoff.

If the lender approves, the home will be sold “as is,” meaning the lender will not fix any defects that would potentially cost the buyer substantial amounts. In addition, the lender oftentimes will not report the amount of short sale as a charge-off as they would with a foreclosure. This is a better situation for both the seller and the lender because foreclosure has more of a negative impact on the seller’s credit history and it involves processing fees that can be more expensive for the lender.

Sounds beneficial to the seller and the lender, but what’s in it for the buyer?

Before a homeowner can put their home up for short sale, their lender has to approve.

the pros of buying a short sale

Short sales and foreclosures are sometimes grouped together. That’s because both are usually done at the same time, and it’s in the process of foreclosure that the lender may allow the homeowner to short sale. But despite their similarities, there are some differences between short sales and foreclosures. For one thing, with a short sale, the seller tends to continue living in their home while it’s on the market. But with a foreclosed home, the occupant has to move out, leaving the home vacant and vulnerable to break-ins, vandalism, and neglected maintenance. Thus, buying a short sale is typically not as risky as buying a foreclosed home.

Another pro to buying a short sale is that, as the buyer, you may not have to deal with much competition. Since short sales can take some time to close, most home buyers aren’t willing to wait around long enough for the deal to be finalized. That said, if you want a speedy closing, buying a short sale is probably not the way to go (more on this later).

Finally—and probably the most enticing aspect of buying a short sale—the home will most likely come with a low purchase price. Since both the seller and the lender are motivated to sell the home as quickly as possible, they’ll probably list it for a low price so it sells fast.

the cons of buying a short sale

Like we said, if you want a speedy closing, buying a short sale is probably not the way you want to go. A short sale takes longer (we’re talking months) because of all the paperwork involved and the need for the lender’s approval. So if you’re set on a specific closing date or you have some sort of time constraint, you might not want to buy a short sale.

That’s not the only downside. Since the lender is already trying to mitigate their losses, they’re less likely to pay for any extra costs, which could make it more expensive for you at closing. And don’t expect the seller to cover any costs for repairs or give a seller credit at closing because their financial situation initiated the short sale in the first place.

Speaking of repairs, that’s another con for you to consider. Although you might be getting a good deal on the purchase price, be prepared because you may have to spend a lot of money on fixing up the home. That’s because the seller most likely doesn’t have the financial ability to make repairs or the motivation to do so.

There are good and bad points to buying a short sale, but when it comes down to process, how does a short sale work for the buyer?

Buying a short sale is typically not as risky as buying a foreclosed home.

how does a short sale work for the buyer?

Here’s how it works. First, you’ll want a real estate agent on your side who has experience with short sales. They’ll be able to research the listing before you even start the process and give you their honest opinion on whether this is a good deal. If you decide to move forward, they’ll also be able to communicate with you and the lender to find out exactly where the home is in the process. Since short sales usually take longer to close, you’re going to want an agent who knows what’s going on every step of the process and can communicate expectations with you.

Next, make sure you get a really good home inspector. Like we mentioned, one of the cons to buying a short sale is that there might be a lot of costly repairs you’ll need to make. A top-notch home inspector will be key in this process. And just in case the inspection reveals significant damage you can’t afford to fix, you may want to take preventative measures: partner with your agent to ensure your contract has the right language to give you to ability to back out of the deal.

Lastly, buckle in for a long ride. We can’t say it enough. This isn’t likely to be your quick-and-easy 28-day closing. But if the pros outweigh the cons for you, buying a short sale could be a great investment at a low price tag.

Did this blog post teach you something new about short sales? Give us a shoutout on social media!

The post How Does a Short Sale Work for the Buyer? appeared first on Cardinal Financial.