Q & A
"I’m having trouble finding tenants. I’ve lost three and can’t find anybody else! Real estate agents have listed my property, we’re on Craigslist, in The Washington Post and registered with Section 8 in my area. I did the right thing by having a good reserve to begin with, but I’m sinking fast with having to supplement the rent. Am I missing anywhere to advertise?"
Doesn’t sound like it’s an advertising issue, you need to focus on the property. Tenants want clean, freshly painted apartments in good condition with new fixtures and appliances – you may need to upgrade a few items. And rent prices have fallen, so consider offering concessions like a half or full month’s free rent to entice potential renters. When you make an apartment more appealing than all the rest, you’ll more than make up these investments with a group of happy, stable tenants over the long haul.
"If a home in Indiana is listed for $169,900, is there a percentage you can take off the price or is it just based on the other, similar houses in the area? I watch you on the TODAY Show and thought I remembered you saying there is a percentage that homeowners mark up their property. We don’t want to offer too much, so started our bid at $155,500. The appraised value in ‘08 was $149,900, so how could it have gone up $20,000?!"
There are no rules, and that’s a good opening offer the sellers would be nuts not to counter. It’s unlikely the home’s value has gone up 13% since last year, so the owners have priced their house so they could negotiate with a buyer like you. Don’t forget that you and the seller set the value when you agree on a price. If you’re less than $15,000 apart, just stick to your guns and you should be able to buy it for somewhere between the asking price and your bid.
"I have a two-bedroom condo in Palm Coast, Florida, that I acquired through an inheritance. I put it up for sale last August and it has not sold yet. The condo is on the lower level and has a lot of amenities like a community room, pool and tennis area. Can you please help me get the condo sold?"
To make your property stand out in a tough market, the right pricing is the key – under price it and you’ll get the most attention. Condos in the Palm Coast area are selling for about $200 per square foot since the year began, so consider pricing it 10-20% below that if your condo needs work or doesn’t show well. Work with a Realtor who specializes in condos and make sure she’s marketing it both locally and nationally, on the web and in print ads, to reach both snowbirds and investors. And don’t get discouraged! We’ve been in one of the worst real estate markets in this country’s history for the past two years, and Florida was especially hard hit.
"Is it a good time to refinance?"
Rates are cheap now and it’s a great time to refinance. But whether it’s a good time for you to refinance depends on several things, including how long you plan to stay in your home, how much is still left on your mortgage and what the closing costs would be on your new loan. If you have an ARM, it’s a great time to refinance into a fixed rate mortgage while rates are low, and you’ll sleep better at night knowing your rate is set for the long haul. If you do refinance, start by shopping with your own lender first and try to negotiate the closing costs. Most lenders will do so to keep the loan.
