Check Out These Nurseries and Kids' Rooms...

HGTV's 10 Favorite Nurseries From Rate My Space

Bringing up baby? Click through pics of chic nursery rooms and get baby room decorating ideas from HGTV.com fans.  Check them out here.

Kids' Rooms on a Budget: HGTV's 10 Favorites From Rate My Space

Ready to transform your kids' rooms, but don't want to spend a fortune? Check out these stylish, yet inexpensive spaces from members of Rate My Space.  Check them out here.

Hope this inspires you!



Move Over Man Cave: Introducing the Mom Cave

New York designer Elaine Griffin embraces the Mom Cave concept and recently partnered with Homegoods in Manhattan to show some decor and space suggestions. She says, "A Mom Cave is where the woman who nurtures everyone goes to nurture herself." It's different from the quintessential "man cave," where men do manly, messy and sporty things, often involving a recliner. Griffin notes, "Mom Caves are fun, frankly feminine spaces and they're personalized." Here's what you need for your Mom Cave: a place to sit, storage space, an area to do what you want to do and room for occasional visitors. "Organizing your stuff makes your space feel bigger. I love bookcases - you can hide in plain sight," says Griffin. Colorful boxes and file folders work well; group an array of favorite photos in fun frames on the shelves.

Click here to find out more about Mom Caves.  After checking it all out, I want a Mom Cave too!

Hope this inspires any woman needing her own space to create her very own Mom Cave.

Inspiring Makeover

If you're a regular reader of my blog, you know how I love "before" and "afters".  Here is a good one done by I.O. Metro, which is one of my favorite places to shop.

This before and after is of an Entry.  "Your Entryway needs to Make A Statement. Don't just leave it bare or clutter it up. Purposefully arrange items so it becomes a preview for the rest of your space. This Entryway was Dull and Choppy." (by I.O. Metro)

See here how I.O. Metro Spruced It Up...

If you would like to share your "before" and "after, please email me.  I would love to see and share them on my blog!

Do's and Don'ts Of Setting Your Sales Price

We've all heard location is everything and I agree, but the single most important factor in selling your property is price. At the right price, almost anything will sell, no matter where it is.  Let's look at how to find the "right price".

Here are three ways NOT to set the price:

1) Predetermined Return on Investment (ROI).

For example, you decide that you must get a 20% ROI -the house you bought for $400,000 must go for $480,000 plus commission and other expenses. However, real estate sales in your neighborhood may not support your price.  If other comparable homes in your area are selling in the $440's, buyers are not going to overpay for your house.  The truth, buyers simply don't care about your investment (initial investment, equity and return strategies).  So real estate sales are not made based upon a Seller's ROI.

2) Return on Improvements.

For example, you put on a new roof ($10,000) and installed a new HVAC unit ($5,000) so you want $15,000 above what other properties have been selling for in your neighborhood. Buyers don't care what you paid for maintenance and improvements, only that they don't have to do it. All that matters to the buyer is that the property is in good shape. Again real estate sales are not made based upon a Seller's Return on Improvements or Maintenance, but will make your home more desirable over the competition.

3) Return plus coverage of your outstanding mortgage and/or the Real Estate fees.

For example, you owe $100,000 on your home and the real estate fees are going to be $12,000. You want your home to sell $120,000 above what you paid.  I hear this a lot!  The truth is, no buyer cares what your mortgage is or how much you are paying in real estate commission. Sorry, they just do not care!  Many are paying off mortgages and most everyone is paying commissions.  If you're not paying a commission and going the FSBO route, typically the buyer will want you to reduce your sales price and carry the savings onto them anyway.  So again, real estate sales are not made on the basis of what a Seller owes or pays in real estate fees.

What determines the market value of a home is not an Appraiser, Realtor or a Seller, but what a willing and able buyer will pay.  The best way to establish your price is by looking at comparisons of what is on the market now and what has sold and at what price.  Any Realtor will gladly provide what is called a Comparative Market Analysis for your property.  Click to request one here. Below is the information a CMA provides.

1)  Solds - Find the best three comparative homes in your neighborhood or area that have sold within the last six months.  The comparable homes should be within 250 sq. ft. +/- of your home, within 5 years of the same age and have similar features and upgrades.  Divide the sales price by the square footage of each home which will provide you a low end and high end.  Inex:  Comp 1 sold for $90. per foot, Comp 2 sold for $92 per foot and Comp 3 sold for $91.50 per foot.  Based upon comps, your home should sell between $90 - $92 a foot.  If your home has 2,000 sq. ft. (living space) multiply 2,000 x $90 and then again by $92.  Your sales price range is $180,000 - $184,000 based upon comparable sales.

2)  Competition - It is also important to see what other homes are offered on the market.  This is your competition.  You do the same steps as above and list your price competitively.  If they're all priced within $92 - $95 a foot, you don't want to price yours at $98.  You'll just help sell your competitors homes.

3)  Pendings - These are homes that are on the market and have a pending contract to close.  Even though you will not know the sales price on the contract, you will know the asking price and how many days on the market.

4)  Expireds - You do not want to be in this catagory.  These are homes that have been placed on the market and did not sell.  Usually there are three reasons a home does not sale; location, condition and price.  Since your home is in the same location, you'll want to pay attention to the condition and the price.  Usually it was over priced or did not adjust down in price for bad condition.

By following the above steps, you should have a good indication of the state of the market and how much your home should sell for in such market.  If you are not willing or unable to sell at the market value maybe you should wait to sell.  Either price to meet the market or wait for the market to come up to you.

In conclusion, listen to the advice of your Realtor. Look at comparisons, what is on the market now and what has sold and at what price. This is an indication of the state of the market.

Hope this helps!

New Amesley Manor Home is Ah-Mazing!

Brittany with Sugg Homes just posted on her blog some photos of her amazing masterpiece she is building in Amesley Manor.  This home is going to be absolutely fabulous!!!

Read Brittany's Blog & See Photos Here

This home is located on 3 acres in Jonesboro's only gated community, Amesley Manor, and is offered at $649,900.  Call me at 870-219-0652 for further information or to schedule a personal tour to see what all this showplace will feature.



To Accept or Not To Accept A Contigency Offer

To accept a "contingency" or not to accept a "contingency"?  That is a question I've had to answer several times lately.  First, what is a "Contingency"?  In regarding contracts, it is a condition in a contract that has to be fulfilled before the contract is binding.  So "contingency" is really just a fancy word for "condition," but in real estate contracts there are plenty of them, and they are the things that let the buyer or seller cancel the deal.

Some contingencies are common, such as, home inspections, appraisals and financing.  While others are complicated, particularly in contracts that are contingent upon the sale of the potential buyer's existing home.  A seller must proceed with caution when dealing with this type of contingency.  Why?  It is not in the best interest of the seller.  I will usually discourage my seller clients from accepting a contingent offer unless I can foresee a closing date for my client.

The reason, even though the seller still has the right to market the house as "Active Contigency-Continue To Show", most Realtors feel there's no point in showing a listing that has a pending sale. That means sellers could lose out on better offers waiting on a contingency to resolve.

But since it's something more sellers might be considering in today's market, I start digging. I will ask for information on the potential buyers house listing, MLS number, and proof of mortgage approval. I like to physcially view the property myself. I'll go out and look at the wanna-be buyer's house to see if it's a viable sale and that the listing price is consistent with market trends.

Meanwhile, if the seller has chosen to accept a contigent offer, I encourage the seller to accept with a "Binding with Escape Clause".  With an Escape Clause, the seller has the right to continue to market the property and accept offers even though the buyer still has a valid contingent contract. If another buyer comes along, wants the house, and makes an offer that is more acceptable to the seller, the seller has to give the original buyer notice to either pony up or walk away.

They (the buyers) don't get to know the details, just that the sellers have another good offer.  If the original buyer can't come up with a way to remove their contingency, usually in 48 to 72 hours, the contract is terminated without any liability to the buyer, and the seller is free to accept the second offer.

In a perfect scenario, the seller accepts a contingent offer, the buyer sells his or her home in the allotted timeframe, and everybody is happy.

If the listing Realtor has done his or her homework, so they know they've got a viable buyer with a viable contract, it usually goes through.

A good Realtor will be able to explain everything in a contingency contract in a way the client understands, no holds barred.

Some Realtors will say any offer is a good offer, but that's simply not true.  Contingent offers are more complicated than they seem.

Ways To Pay Off a 30 Year Mortgage In Less Time and Save Money

I have sold a lot of homes over the years and most have involved a mortgage.  Buyers usually choose a long-term mortgage, such as, a 30 year mortgage, to lower their payments to a level that's more affordable.  The main differences between 15 and 30 year loans are straightforward. Fifteen-year loans have higher monthly payments, but you pay less interest, while 30-year terms have lower monthly payments, but you pay significantly more for the house in the long run.  In some cases, more than double the initial purchase price.  However, long-term mortgages are good, in my opinion, because they allow options.  For example, you can choose to pay-off your mortgage in 15 years, but if you fell on hard times, you wouldn’t be locked into the higher payment of a 15 year mortgage.  There are several ways to pay off a 30 year mortgage in less time to save considerable money.  Below are some good examples.

• 1)  Pay one extra monthly mortgage payment per year towards your principal. In a scenario with a $100,000 mortgage at 6 percent interest for a 30 year term; the principal and interest payment on this loan would be about $600.00 per month. With taxes and insurance the payment would run closer to $800.00 per month. If you pay an extra $800.00 in principal per year on this mortgage, you would have it paid off in just over 22 years, or eight years sooner.
• 2)  Open a separate checking or savings account to hold your mortgage payment. Deposit one half of your mortgage payment into this account every two weeks. At the first of the month make your normal mortgage payment from this account. There are 26 two-week periods in each year, so at the end of the year there will be the equivalent of another mortgage payment in that account. Use this to pay on your mortgage. Don't spend money on a service that will do this for you. You can do this method on your own.
• 3)  Increase your mortgage payment by a fixed percentage each year. ERA realty calls this the "Three Percent Rule." During the first year you make your normal mortgage payment based on the 30-year note. For the second year, you add 3 percent to the payment amount per month. Add three percent of the prior years payment and make that payment for the next year. If you do this each year, you will pay off a 30 year mortgage in about 15 years. The three percent that you are increasing the payment each year is probably less than the amount that the cost of living increases, so it should only have a minor affect on your finances.
• 4)  Budget your money using a deliberate financial plan each month. By using a financial plan, you can probably find money to allocate to your mortgage to pay it off sooner. Every small amount of money that you pay towards your mortgage helps. Set a goal to pay your mortgage off in a certain amount of time and stick to it.

So you can see by the above it is easier than you think to pay off that 30 year mortgage sooner.  However, the drawback is that most people lack the discipline. According to the Federal Deposit Insurance Corporation (FDIC), 97.3 percent of people do not consistently pay extra on their mortgages. Many people lack the discipline to send in the extra money every month when it’s not mandated by the bank. However, what this statistic doesn’t mention is how many of the 97 percent would have fallen behind on their mortgages if they were locked into a 15-year mortgage.

Which is right for you?In the end, your financial situation will determine the right mortgage term. If you can make the higher payment, have a substantial emergency fund, and can meet retirement and other savings goals, a 15-year mortgage is a good way to own the home in half the time and pay substantially less interest. If just one of those conditions is not met, or if you are somewhat comfortable with debt and risk and wish to get a higher rate of return with other investments, the money saved each month with the 30-year mortgage payment may be better used elsewhere. You can always send in extra payments.

A relative of mine bought a new home 5 years ago and has a 30 year mortgage.  He faithfully pays extra every month.  It's really impressive how his principle is going down so fast and if he keeps it up, he'll have his 30 year mortgage paid in just 10 years.  What about you? Do you have a 15-year mortgage or 30-year mortgage? Do you prepay? What are your thoughts on risk versus higher returns?