What to Do On the Day of Your Open House

These are some simple tips that will help your open house go smoothly and put your house in the very best light.

1. Start cleaning early. Don't wait until the last minute. Vacuum the night before, have the bathrooms cleaned several days ahead of time, if you are like me, they may need more than a wipe down. Save yourself some time to have the heavy cleaning done early as you just won't have time to do everything the night before or even the day of the open house.

2. The night before the open house stow all items under the sink in the bathroom. The countertops should be totally free of cosmetics, perfume, toothbrushes, leave a decoration or two, but everything else needs to be put out of sight.

3. Vacuum all the floors the night before and get the kids to clean up or put the toys under the beds.

4. The day of the open house, plan to be gone. Go to a movie, go out to lunch, shop at the mall, get out from under the foot of your agent, they have plenty to do at an open house. Besides having owners in the house can make prospective buyers nervous.

5. Before the open house, stow all kitchen items in cabinets. The countertops should be devoid of all but one appliance or so and maybe a toaster. Make sure that all dishes are clean and the kitchen smells nice. Some people will even bake a few chocolate chip cookies (the easy kind from the grocery that you break apart and put on a tray) so that the house smells inviting before their agent arrives. Leave the cookies out for your guests on a nice platter. The hospitality and smell may wow a potential prospect.

6. As you walk out the door, turn on every single light in your home in every room and bathroom. I know, we all try to get our kids to turn off the lights, but in this case totally open windows - blinds pulled up or opened, and every light on is a necessity. I even recommend turning on the stereo to soft jazz to create an ambiance for your visitors.

Oh don't forget to take your jewelry with you or to store your valuables. Your agent will be there to watch your home, but they cannot be in every room with every person every minute. Don't leave out easy temptations for people to pick up and pocket. Take your valuables with you, store them in your other car's trunk in the garage or leave them with a neighbor.

Last of all relax and have fun. You home may not necessarily be sold during an open house, but it just may be. Neighbors may visit and know of someone who is looking to move into your neighborhood. Don't discount the power of people spreading the word when you make a favorable impression during your next open house.

How Do I Sell My Home In This Market?

If you are a seller in this fun real estate market, you must be prepared to work extra hard to get your property sold. The days of old, when an Realtor could drift in, put your house in the Multiple Listing Services and bring you a contract in 20 days is over. Not only do you need to spend extensive time doing market research, you need to GET TO WORK ON YOUR HOUSE! It's your house and your equity, not your agents or the lax US government, or the buyers. In the end, you are the one that gets the check.

I am often asked by sellers, my opinion of the value of their home. They ask me because I have several years of experience selling homes. I spend hours and hours researching detailed information and BAM!, it's not good news. I hear things like, " I have to get xyz, I just have to. Or, "I have an appraisal from last year for X and just tell the buyers about the appraisal." Buyers really don't care. They don't care about your plight, they don't care about the blood and sweat you put into the house, they don't care that you want to pay cash for your retirement dream home in the Rockies. Buyers care about themselves, just like sellers care about themselves. It's hard to have a win-win in this environment, yes or no? Sellers need to WAKE UP! Times have changed and it's fighting in the trenches to get a sale on your property today, if you are still thinking about what the market was like two years ago. You, as a seller, have to get moving or you will "lose" more than a few bucks now, it's not getting better, thankfully, you have choices.

1. Stay where you are until the market catches up to where you think it should be.
2. Rent your house until the market catches up to where you think it should be.
3. Take a home equity loan, try to buy somewhere else and make two payments.
4. Take the necessary time to make your house look better than all the competition.
5. Listen to your chosen, qualified real estate professional regarding the pricing or your home.
6. Give the listing to an agent, at your chosen price, who wants your "listing", so he or she can say, "I have a listing."
7. Take a bit of a mental whipping, move on with your life and get over it.

There are many, many more and the nice thing is you, the seller, get to choose.

If your really want or need to sell, Listen to the people "you" choose to get the job done. It's a terrible thing to overprice a property. Who gets hurt, the seller of course. It will sit and sit, you will whip your agent and in most cases, it's not the agents fault, it's yours. Get competitive, make your house shine and move on. Your best chance of selling is in the first 60 days. An aggressively priced home should sell in 30 days.

Make up your mind Mr. and Mrs. seller. Ask yourself what your goals are and then act!

What to Do In a Very Tough Selling Market

So you've had your home on the market for over three months, you've seen that you're just one of several for sale signs in your neighborhood, your new home is due to close in several weeks, and you are really starting to get anxious. Can it all work out?

You bet it can! Don't loose hope. There are a few things that you really need to take a good hard look at, but you can successfully sell your home in a tough market.

1. Check your price. If you are not priced well, drop your price now! If you are sweating carrying two mortgages, drop your home price below the market price. In a tough market price always will sell a property.
2. If you aren't sure what to price your home at, get an appraisal now. Market your home that you are priced below the appraised price.
3. Check your realtor's agreement. Don't extend your agreement unless you feel that you are getting results. Now's a good time to look for a realtor who takes a more aggressive stance on marketing your home. If you are in an agreement, have a conference with your agent and make sure that you are getting the marketing that was promised.
4. Although not all homes are really sold at open houses, make sure that you have had at least one. See if your agent can arrange an office tour to show other agents in their office your home. Many large firms have monthly tours that are turned into great networking and noshing parties that can help your home get the in-office exposure that it needs.
5. Spruce up and clean up. You're going to be moving anyway, now's the time to start trashing unneeded items, decluttering rooms, and in general getting ready for your move. Put things you don't need in boxes in the basement or closet, open up the space in your rooms so that when you do have a showing you are making absolutely the most of it.

Don't lose hope. You're not ready for a "fire sale", but be smart consider your options. Is it possible that you can offer a rent to buy option, rent instead of sell? Now's the time to think through with the help of your agent what may be your opportunities in the near term.

Selling Your Home With a Contingency Clause

Be careful and don't let your potential buyer let you lose selling momentum! A contingency clause in a selling contract is not uncommon and can be used to your advantage when selling your home in a tough market.

But a contingency clause if not properly crafted can really put you in a bind if the sale falls through and you loose the selling momentum that all "freshly listed" properties will have.

There is no replacement for real experience and guidance from a savvy real estate agent when it comes to wording and approving a contingency clause in your selling contract.

Typically the wording of the clause can be modified to allow you to keep your home on the market and to be able to continue to show your home to prospective buyers.

You may even want to establish that you will even continue to entertain other legitimate offers with the current prospect being forced to make a prompt decision to buy now or match any new offers. When there are many homes on the market and sales are moving slowly, you will definitely want to think twice about adding a clause to your agreement that is open ended and says that the buyer can walk away from the sale without penalty if their home does not sell. You simply will not want your property to be tied up waiting for another party to sell their house when your home may be a "hot ticket" in the market.

I have linked to the blog post title a good article on contingency clauses from About.com that you may want to click in and read. It will provide more information about what they are and how you can use one to your advantage.

The Aggressive Realtor

In today's real estate market many home sellers simply do not know where to turn. The Washington DC region is experiencing the highest level of unsold home ever. So what is a seller to do?

First, you need to look for an aggressive realtor. When times are tough only the very best are able to continue in a very difficult market. I am one of those seasoned professionals who understands the ebb and flow of the marketplace. Yes this market is tough, but not impossible!

There is hope to sell your home and this is where my experience can help to cut through the frustration that you may be feeling with other realtor. Being an aggressive realtor means many things and here are just a few things that I personally do:

1. Aggressively market your home - brochures, web, open houses, advertising
2. Aggressively price your home - to sell in today's market you need to have competent price analysis. Over pricing in this market will kill your chances for a sale. Aggressively pricing does not mean having a "fire sale" at your expense or giving away your home. It means an aggressive understanding of what it takes to sell and helping you to make good choices about your pricing based on your personal needs.
3. Aggressively negotiating a sale when it comes - this doesn't mean scaring off a buyer, but in a tough market you need tough help and a tough negotiator. One that will make every effort to get you top dollar and the best contract yet still move an offer to close.

So when you need an aggressive realtor and real help selling your home after other real estate agents have frustrated your efforts to sell, you need to phone me! Call now at 410-507-2909.

New Parents Design Adult-Friendly Nurseries

Blue for boys, pink for girls, perhaps green or yellow if the baby's sex is unknown; and, of course, the bold childhood primaries: red, blue and yellow. Those are the traditional choices when you're decorating the nursery. New parents are turning tradition upside down, opting to decorate their baby's room in more adult colors and styles that are comforting to the parents and send a special message to their child.

Driving a $7.3 billions industry, new parents typically spend from $5,000 to $15,000 furnishing and decorating their baby's nursery, according to the Juvenile Products Manufacturers Association.

In decorating a nursery, parents should first consider their own comfort, says Missouri designer Elizabeth Maxson. "The first couple of months are so tiring for the parents. When you're sitting in a nursery at 3 in the morning, you want something soothing, so that [you] can soothe the baby."

More adult colors, themes that send a special message, and furnishings that will not lose their usefulness but will grow with the child are making inroads on the usual Disney, Sesame Street, Winnie the Pooh, and Bob the Builder decorating schemes. Here are a few examples from creative new parents:

• Nesting. Emma Hand created a "nesting" theme for her daughter. She used a soft marbled taupe on the walls to evoke the outdoors. Husband Carl cemented a tree limb into a corner from which hang soft, colorful cloth birds. Brightly painted storage units now hold diaper supplies but will hold toys as the baby grows. An antique family dresser adds a sense of heritage to the room. "I like birds ... and the symbolism behind birds," Emma explained; "they're monogamous and family-oriented. And a nest is a place where you feel very comforted, yet you're getting ready to fly."
• Taking wing. Marland Blanchard and his wife went with an aviator theme when they found out they were expecting a boy. "I wanted this room to tell my son that he can reach to the horizon," Marland said. A wall mural of a 1930s field airport adorns one slate-blue wall. A kid-friendly hardwood floor and vintage aviator plaques carry the theme. A chair rail backlit with motion-sensor tube lighting gives the illusion of runway lights. The soft light allows Marland and his wife to easily check on their son and will serve as a nightlight when he's older.
• Up, up and away. A basket chair above which hangs a multi-colored fabric "balloon" is the focal point of a hot-air balloon room. The oversized chair provides a cozy place to cuddle and read. Brightly painted round cubbies hold books and toys. Big puffy clouds seem to drift across the soft blue sky ceiling. The message Sue Frances wanted to give her child: There are no limits to your dreams.

Disasters May Not Be Covered By Your Homeowners' Insurance

It seems prophetic that the movie Evan Almighty opened in theaters this summer. This appears to be the year of the flood. Right now portions of the Midwest would make great location shots for Steve Carell's new movie. This week's severe storms seem to be one in a string of flood-makers that have deluged the nation, including Maryland. And hurricane season is just beginning!

Before disaster strikes, you should inspect your homeowners' insurance policy. After a flood or other disaster, many homeowners are shocked to find out they are not covered. Many homeowners assume that everything is covered by their homeowners' policy when, in fact, quite a number of disastrous events are not covered by standard policies. Often an additional rider or specialized insurance must be purchased. This is true of flood insurance which is available only from FEMA's National Flood Insurance Program, not your local home insurer.

"No policy covers everything," said Joel Brown, a State Auto vice president. Exclusions fall into three categories:

• Catastrophic events that are too big and expensive to insure, such as flood; nuclear, biological or chemical contamination; war or riots.
• Items that should be insured under a more suitable policy, like cars or businesses.
• Custom insurance that not everyone needs but that can be covered by purchasing a rider, such as sewer and drain backup, computer replacement, home-based businesses, antiques or jewelry.

It can be tough on your wallet if you take your insurance policy for granted. In the case of a flood or earthquake, you could "find out after the fact that your entire home has been damaged and you aren't covered," warned Peter McMurtrie, chief claims officer for Grange Insurance.

Your best policy? Review your insurance policies annually and don't forget to scan the fine print. Give your insurance agent a call if there's anything you don't understand.

Questions First-Time Home Buyers Should Ask

Everyone will tell you this is a great time to buy a house. Inventory is up, prices are down and interest rates are low. If you've been thinking about taking that big step, packing up apartment life, and becoming a homeowner, the time is now. Smart buyers will do their homework and ask some important questions before signing on the dotted line.

• Are you the right lender for me? Interview several lenders before you select one. Ask friends, family and your realtor to suggest reliable lenders. Make sure your feel comfortable with your lender. Ask about points, closing costs, pre-payment penalties, escrow requirements, mortgage insurance. Find out how long they've been in business and make sure they are familiar with first-time buyer programs.
• What can I afford? Before you start house hunting, sit down with your lender. Based on a review of your finances and current debt, your lender will prequalify you for a mortgage. This will tell you the price range you can consider while shopping for a home. Think about how much of your monthly income you want to devote to house payments. If you want to decrease your monthly mortgage payment, shop below your prequalified range.
• Will you fill out a seller's questionnaire? When you find a home you like, have your realtor ask the seller's to fill out a questionnaire. This standardized three-page form available from your realtor may uncover possible issues like major repairs or pets that are not required to be disclosed on the disclosure form.
• Are there any liens, covenants or restrictions? Typically your real estate agent will do a preliminary title report, checking for liens. Make sure he also reviews the covenants, conditions and restrictions that may be imposed in neighborhoods with a homeowners' association. Restrictions on pets or bans on parking recreational vehicles in driveways may affect your decision to buy.
• Has a home inspection been performed? Even if the seller has performed a home inspection, you may decide to have one done yourself. The cost is usually $150 to $200 and your realtor should be able to recommend a qualified inspector. A home inspection may turn up problems or leaks of which the seller was unaware. Your purchase should be contingent on the home inspection and successful resolution of any issues.
• Does the home come with a home warranty? Sellers today often offer and pay for a one to two-year home warranty. Annual cost is about $350 to protect you from expensive repairs to major systems like the furnace, roof, etc. Read the fine print to make sure you understand what the warranty covers. There is usually a per-incident deductible.

For more valuable tips for home buyers, click the post title. You'll find valuable information for both buyers and sellers on John Day's Homes Buy Day website.

Banks Tighten Subprime Lending Standards

Responding to Congressional investigations and pressure from the Federal Reserve, the nation's banks are tightening their lending standards for subprime mortgages. In a national survey, half of the country's biggest banks reported implementing more stringent lending rules for home loans to borrowers with weak credit histories. Subprime borrowers typically have credit scores of 620 or lower. The survey polled the nation's 49 largest banks which account for 71% of all residential loans made by commercial banks.

Subprime loans include adjustable rate loans (ARMs) with multiple payment options, interest only mortgages, and Alt-A loans which require limited income verification. Some banks like Chase will no longer issue ARM loans to subprime borrowers unless they demonstrate an ability to continue payments when the interest rate increases.

About 10% of the banks surveyed were also tightening requirements for traditional 30-year mortgages, even to borrowers with strong credit histories. None of the banks had plans to loosen lending rules.

Keep in mind that the majority of subprime mortgages do not come from banks, they come from finance companies. As reported by the Mortgage Bankers Association, the percentage of subprime loans that were 30 or more days past due increased to a record 15.8% in the first quarter of this year and has continued climbing.

For an explanation of the factors that led to the subprime mortgage fiasco that has sent the nation's housing industry into a tailspin, click the post title to read John Day's informative article The Effects of Easy Money in the Homes Buy Day monthly newsletter.

Mini Boom Areas Defy Real Estate Slump

The general consensus is that the housing market is in a slump. But there are many specific areas -- little oases in the real estate market -- that defy that slump. In these micro markets real estate prices are not only holding firm but increasing, and there's no shortage of buyers willing to pay the price.

Especially near large metropolitan areas, there are always particularly desirable neighborhoods or zip codes that continue to attract buyers no matter what the larger housing market is doing. As long as the local economy is strong, generating jobs and rising incomes, the housing market in these small pockets will continue to thrive.

Dubbed oasis micromarkets by Washington Post columnist Kenneth Harney, these mini boom areas share some important characteristics: (Click here to read the entire article.)

• Close to the action. Neighborhoods are well established and a very short commute from urban centers offering employment, entertainment, shopping and services.
• Top of the line. Homeowners have above-average incomes, above-average education levels and are veteran homeowners. Schools systems will rate exceptionally high, crime will be extremely low and city services (library, parks, refuse collection, etc.) will be exemplary.
• Prime mortgage territory. Owners and properties qualify for prime mortgages. You won't find evidence of the subprime mortgage fiasco and its attendant foreclosures in these areas.

There are several oasis micromarkets in and surrounding Washington DC where demand and housing prices remain high and rising. The Bethesda-Chevy Chase, Maryland area (zip code 20815) fits the profile as do portions of northwestern Washington DC (zip code 20015). Both zip code areas have defied the current housing slump with median sales prices rising an average 6%. Some micromarkets may not be easily identified because the number of houses on the market has risen (up 9.7% from last year) and houses are taking a bit longer to sell (an average 47 days compared to last year's 33). But if you compare sales records to that of the regional averages, business is definitely booming in these micromarkets.

Beat the Heat Without Turning Up AC

This summer the U.S. is sweltering as one giant heat wave after another rolls in. Across the country energy bills are skyrocketing and electric companies are warning consumers to expect double and even triple bills. Decreasing your home's humidity can save you money on your utility bill and increase your comfort. Before you dial up that expensive AC dial, here are a few things you can do to beat the heat and save money in the bargain.

• First find out if you have a humidity problem. Check your indoor humidity level. You can purchase an inexpensive humidity dial for under $20 bucks that will do an adequate job. Or check out the indoor weather stations at your local home store or Radio Shack. They may retail for $50 but come with a lot of fun bells and whistles and do provide a more accurate reading. Indoor humidity levels of less than 50% will alleviate allergies, condensation, mildew, mold and insects.
• Try obvious low-cost strategies first. Use less water on muggy days. The more you use; the more you put into the air. Run the washer and dishwasher at night so increased moisture doesn't add to the humidity while you're awake. Put your houseplants on the porch for the summer. The water they take in through their roots is expelled through their leaves into the air. Turn on fans (particularly exhaust fans) to remove humidity in the bathroom, kitchen and laundry rooms
• Buy a dehumidifier. Consumer Reports recommends buying the largest-capacity dehumidifier you can afford. A large model can pull 50 pints of water out of the air in 24 hours; smaller ones remove only half that, so think big. Watch for sales. The rating company didn't find much difference between major brand-name models so shop price. Note that an Energy Star labelled dehumidifier will use about 20% less energy, so factor that into your choice. Remember to empty the collection bucket daily or if you place it in your basement, attach a hose to the bucket so it will self-empty into the floor drain.
• Check for construction issues. Make sure your dryer vents to the outside. Check for leaking pipes. Look for leaks from outdoors. Increase insulation where possible to keep outdoor dampness from coming inside. Correcting any problems will decrease your home's humidity.

Sunrooms Bring the Outdoors Inside

Bringing the outdoors inside is one of this year's biggest housing trends. Outdoor living spaces that connect to and extend an indoor space add depth of use to your home. Glass-walled sunrooms are one of the most popular and delightful examples of this trend.

"Even on overcast days, as long as it's not storming, you do get quite a bit of reflected light coming through the windows," explained architect Richard Taylor. "When there's not as much sun, people try to get as much of it as they can."

An all-season view of the garden or lawn is another bonus in creating a sunroom. The primary reason most homeowners give for adding a sunroom to their home is not added space, but increased quality of life. Many use it as a year-round breakfast or family room. Sunrooms are often constructed to adjoin an outdoor patio or deck so that activities can easily move from one space to the other in good weather.

Of primary concern in construction is energy efficiency. Vast expanses of glass can tax a home's heating and cooling capacity. Quality insulation, energy efficient windows and sometimes a second furnace or air conditioner may be necessary. For heating, ceramic stoves or small fireplaces can solve the problem and provide a warm ambiance in cold weather.

But despite construction concerns, sunrooms are growing in popularity. The warmth and dazzle of the sun warm our psyche as much as our bodies. A sunny room just makes you feel good!

Charming Cape Cod in Annapolis Marina District

Nestled in the delightful Annapolis marina district, this charming cape cod puts you at the center of Annapolis' exciting boating community. Located at 823 Klakring Road in Annapolis, Maryland, this adorable home is conveniently situated between the Annapolis Landing marina and Port Annapolis, the two most well-appointed marinas in this historic harbor town.

This lovely home offers you access to every amenity in the exclusive Bembe Beach area: pool, boat slips, delightful waterfront cafes, a water taxi to Annapolis' historic downtown. Just steps from the Annapolis Sailing School, Chesapeake Bay and the Back Creek Nature Park, this is the perfect home for sailors, boaters and hikers.

You'll fall in love with this adorable cedar-sided home as soon as you walk in the door. Italian tile in the entry complements the rich hardwood floors on the main level. Like most cape cods, this home is larger than it looks with four bedrooms and two full baths.

Click the post title for more information and to take a virtual tour of this lovely home. To schedule your personal tour, contact veteran realtor John Day. If you're buying or selling a home in Maryland or the Washington DC metro area, John Day is your key to success.

Tips on Shopping for a Mortgage

Finding a lender and sorting through the mortgage maze can be confusing. You want someone reliable whom you can trust to help guide you through the many mortgage options available today. Consider the following points in selecting a lender and mortgage product:

• How long do you plan to stay in your home? If you plan to stay in your home more than 5 years, fixed-rate mortgages will generally give you a better rate. Adjustable-rate mortgages (ARMs) give short-term flexibility.
• Carefully compare terms, interest rates, points, private mortgage insurance, closing costs, pre-payment penalties, etc. The mortgage with the lowest interest rate might not actually be the best value once you consider all the associated costs.
• Ask your lender for a good faith estimate that details all the costs associated with your mortgage.
• Ask your lender how long the lock-in period is; that is, how long the quoted rate will be honored. If rates drop while your loan is being processed, will you get the lower rate?
• Find out how long the loan process with take and ask for a closing date. Some lenders will pay a penalty for your inconvenience if loan processing goes past the agreed date.

Ask your realtor to recommend a professional lender. Your realtor can be a tremendous resource in helping you find lenders, title companies, inspectors, repair people, etc. Click on the post title to visit John Day's Homes Buy Day Mortgage Center for helpful information and tools you can use to select a lender and determine which mortgage is right for you.

Ceiling Fans Blow Away Summer Heat

Baby it's hot out there! If you're doing the green thing and keeping the A/C set at 78 degrees this summer, your home can get pretty toasty even with the air conditioning running. The constant air circulation provided by electric ceiling fans can help keep you cool.

A home fixture since the 1880s, ceiling fans now come in a dazzling array of styles and prices. Use these tips to determine which fan will best suit your needs:

• Efficiency. Check the CFM rating which measures cubic feet per minute of circulated air per watt of electricity. The higher the number, the more air is being moved and the cooler you feel.
• Dimensions. The larger the room you want to cool, the longer the fan blades need to be. Fans measure from 30 to 72 inches from wingtip to wingtip with 52 inches being the most popular size. A 52-inch fan can comfortably accommodate a 400-square foot room.
• Blades. Two-bladed fans are the most efficient at moving air, but five-bladed fans are the most popular. People just can't be convinced that less is more. Blades with a greater angle of pitch also move more air.
• Location. Fans located directly over sleeping areas provide the greatest comfort. Blades should be at least 8 inches from the ceiling for maximum air circulation and 7 feet from the floor for safety.