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TOUGH TIMES

FOR

HOME SELLERS

At the moment we are nationally in the midst of a pretty bad market for home sellers.  There is a glut of houses, both new and used, on the market, and not  enough buyers are out there to snap up all these homes.

Times are tough for buyers, also, because restrictions on borrowing have tightened.  Gone are the days of 100% financing at teaser rates.  This, actually, is good because this means that people do not buy homes that they cannot afford.  The skyrocketing prices that were a boon to sellers and a slap in the fact to buyers are coming down.  This should bode well for buyers.  Many sellers, however, will just have to settle for more realistic prices if they wish to sell the homes they have on the market.

Certain areas of West Virginia are in better or worse shape than others.  The fastest growing areas are experiencing a glut of homes, whereas other slower growth areas are about where they have been for awhile.  The cost of homes varies greatly in the state.

Many suggestions can be found regarding selling in a "down market", but we thought we would include just a few in case you are thinking of selling or are trying to sell your home now or in the very near future.

1.  Assess the Market.  Do this like the pros do.  Consult a local agent or realtor association to determine how long homes in your area are taking to sell.  If the time is about double last year's figures, you are in a definite down market. Have your home appraised for the current market.  Consider waiting until figures improve if at all possible before you put your house on the market

2.  Don't Spend a Lot on Remodeling.  Right now isn't the time to spend a lot of money on something that might actually be losing value.  If you must do some renovations in order to sell your home, a good rule of thumb is not to spend more than 20% of your home's value.  Many cosmetic fix-ups can be done that don't cost a lot of money and can be completed by the homeowner.

3.  Check Foreclosure Rates.  Foreclosures are increasing nationwide and across our state.  The more foreclosures in an area, the more home values will fall.  One website lists foreclosures in your area.  Go to foreclosurenet.net and then type in your zip code.

4.  Re-check your Mortgage.  It has been reported that about one in three homeowners don't know exactly what kind of mortgage they have!  If you aren't certain what you've got, check on it now.  You do not need to be surprised by an unexpected interest rate hike.

Even experts differ on the pros and cons of selling a home in this market.   Most do agree, however, that if you can possibly wait this is the time to sit out this downturn and wait for better times.

Before we send the following article to the archives, be sure to read this informative article about deed restrictions...

The Color Purple, Hens, and Couches on the Porch

One of the tenets most of us hold dear regarding  home ownership is that our home is our "castle" and that we can do whatever we want with these castles.  If we want to paint it purple, then we should be able to paint it purple, right?  West Virginians are known as being independent and rather libertarian in their thinking, so certainly the above attitude about "home sweet home" is a prevalent one.

In a rural state like ours, many of us live on property that is not regulated regarding much of anything, so anything pretty much goes.  A purple house is okay.  A couple of old cars parked in front that don't run anymore is okay.  That old couch with the holes in the back sitting on the front porch is okay, too, along with the chickens that enjoy perching on its armrests. Lawn ornaments of all shapes and sizes are fine, too.

Homes in towns and homes in developments or subdivisions, however, often have sets of rules to abide by.  Zoning takes care of a lot of housekeeping type issues inside city limits, but deed restrictions and restrictive covenants often do the job in housing developments, or subdivisions.

Deed restrictions and restrictive covenants are ordinarily put in place by a subdivision's developer and are literally part of the property owner's deed.  They give the subdivision a more standard appearance and truly do help protect the property values of the properties within its boundaries.

They almost always stipulate what the minimum house size must be, how far from property lines the home must be, whether or not home businesses are allowed, and usually assess a fee for maintenance of roads, shared green space, entry signs, etc.

Depending upon the development's restrictions, you may also see limits on fencing (are they allowed and if so, what sort of fence may they be), paint colors used on the exterior of homes, types of exterior siding permitted, pets, recreational vehicle parking, shrub selection, outdoor sheds, and on and on.  Find out more about restrictions by clicking here. 

When purchasing a home in a subdivision, an essential piece of information that you need is a copy of the deed restrictions or restrictive covenants, and you need that information prior to making the purchase!  If you don't like the restrictions you see, then do not buy the property! Complying is not an option; it is a necessity.

Everyone who resides in a particular development needs to know that deed restrictions and restrictive covenants are enforceable in a court of law, and that they are part of the deed for a purpose, and that they do apply to everyone. 

Unfortunately, there have been some problems when neighbors who feels restrictions apply to everybody else but them have found themselves in court.

We heartily recommend you check out deed restrictions and/or restrictive covenants for any development you consider as a potential home. If you don't like the concept of restrictions at all, then there is plenty of space in the Mountain State where you don't have to deal with them.  Know what you want and feel most comfortable with before buying!