Tricks of the Trade Demystified
Real estate is not a technical profession; it is a service profession which means not everyone can do it well. Invest 5 minutes in reading this article and regardless of whether you try to sell on your own or you work with a real estate professional you will sell your home for more money and in less time. More importantly you will have a clear understanding of the service you should expect from your REALTOR.

Let’s start out with some statistics…84% of all real estate transactions in 2006 were completed with the assistance of a real estate professional. 12% were done without a REALTOR but only 7% of those transactions were made with an unknown buyer – about 5% of For Sale By Owner sales are done between family members. (4% of transactions were unaccounted for.)

Is Your House Saleable? Location, condition and price are the three characteristics that determine the saleability of your home. You can’t change location. If you don’t have at least 6 showings in the first two weeks, you have to consider improving the condition or reducing your price.

Make Your Home An Open House. 47% of buyers use Open Houses to find their home. You never get a second chance to make a first impression. It sounds cliché but it is true and in the world of real estate the duration of your first impression is 15 seconds. Make it count by properly preparing your home for sale.

Indecent Disclosures. It is required by Connecticut State Law to provide buyer’s with a Property Condition Report or to give them a $300 credit at closing. It is also required to provide a Lead Disclosure Report or to offer for the assessment of such. ALWAYS be honest on these forms. You are legally bound to what they say once you have signed them.

Inspectors Aren’t Just For Buyers Anymore. In this market you want to know as much about your home as possible. Invest in a seller’s inspection – it could save you thousands during negotiations. If you are working with a REALTOR ask if he/she will pay for a portion of it – we do.

Show Me The Money. You want to know how much you will make and the buyer wants to know how much they are going to spend. Meet their needs (and yours) by having your real estate professional create a seller’s estimated closing analysis and a buyer’s cost calculator. It is also helpful to have a buy vs. rent analysis. (Contact us at TeamDHA@DHomeA.com if you are FSBO and want to provide this to potential buyers.)

Out Of The Box Marketing. With a large inventory of homes you need to be thinking out of the box in terms of marketing. Placement on the MLS and traditional newspaper ads won’t sell your home. Don’t let your real estate professional convince you they will. Marketing is expensive (the average CT Post ad costs $85+ and a mailing to 1000 or more prospects costs a minimum of $300) so be imaginative and use your dollars wisely. If you are working with a REALTOR it is important to understand that there is no “big budget”. As independent contractors most marketing expenses are paid for by the agent. Everybody loses if you don’t sell.

Quality NOT Quantity. Although buyers can be more selective about the homes they preview sellers should be equally selective about those who preview their home (especially if you try to sell “For Sale By Owner”). Be sure buyers are pre-qualified to pay your list price. Also learn the difference between a pre-approval and a pre-qualification. (Contact us TeamDHA@DHomeA.com if you want this and a quick reference guide to different mortgage types – both will assist you when you are considering an offer).

The reality is that homes are not “flying off the market” like they were two years ago. Regardless of whether you hire a REALTOR or you go it alone, you need to know what it takes to get a home sold in this market. Please consider us your resource for selling a home. Information is free and only an email away.


Sizing Up The Neighborhood
2006 year end statistics are in and the forecast for 2007 is coming to fruition. While the glass was half empty in 2006, look to the glass to be half full in 2007. With the area averaging nearly 10 homes a day going under deposit in the shortest month of the year, spring market is off to a prosperous start.

Here’s DHA’s Area Market Survey of February’s local real estate activity.
Easton: 90 Active Listings, 2 Sold–MT 51 days, 4 Pending and3 Expired–MT 202
Monroe: 124 Active Listings, 4 Sold-MT 110 days, 12 Pending and11 Expired–MT 147
Fairfield: 477 Active Listings, 9 Sold–MT 69 days, 45 Pending and36 Expired–MT 124
Shelton: 211 Active Listings, 7 Sold–MT 60 days, 15 Pendingand 15 Expired–MT 143
Trumbull: 200 Active Listings, 9 Sold-MT 98 days, 20 Pendingand 14 Expired–MT 128

What's Hot, What's Not
What’s Hot
1. Thanks to the Taxpayer Relief Act many home sellers no longer suffer a taxable gain. Married taxpayers who file jointly now get to keep, tax free, up to $500,000 in profit on the sale of a home used as a principal residence for two of the prior five years. Singles and married taxpayers who file separately can keep up to $250,000 apiece tax-free.
2. Low-income first time homebuyers can benefit from a mortgage tax credit of up to 20 percent of the mortgage interest payments made on a home. This credit is available each year you keep the loan and live in the house purchased with the certificate.
3. If you take out a loan to make substantial home improvements, you can deduct the interest on the loan. There is no dollar limit on this deduction, but the work must be a capital improvement. Capital improvements increase your home’s value, prolong its life, or adapt it to new uses – like adding a fence, driveway, swimming pool, porch or deck, built-in appliances, etc.

What’s Not
1. You can’t paint your family room and deduct the expense if you’re not selling your home, but if you decide to sell your home you’ll be able to reduce your taxable capital gain by the amount of your selling costs. Along with real estate broker’s fees and inspection fees, the IRS recognizes such costs as painting, planting flowers, maintenance, etc. are also selling costs if you complete them within 90 days of your sale and with the intention of making the home more saleable.
2. Moving across town doesn’t qualify for a tax deduction but if you move because you got a new job, you may be able to deduct some of your moving costs if you meet all of the requirements which include moving within one year of starting the new job, the new job is at least 50 miles farther from home and you work full-time at the new job for at least 39 of the 52 weeks following the move. Deductions include travel or transportation costs and expenses for lodging and storing your household goods.
3. If your home equity loan when combined with your first mortgage amount, increases the debt on your home to an amount more than the property's actual value, there may be deductibility limits. But if that’s not the case, you can deduct the smaller of interest on a $100,000 loan or your home's value less the amount of your existing mortgage.

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