Q & A with Dottie Herman

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Q1 - How would I go about taking equity in my home? There are some improvements I want to make but I have only lived in the house for a few months? Do I have to live here for a certain amount of time and pay a certain amount toward my mortgage?

A - You have to 1st determined the value of your home minus how much you owe on your mortgage. You can then take an equity loan in the amount that between your 1st mortgage and your proposed equity loan does not exceed 80% of the value.  Most equity loans or lines have a 3 year Pre payment penalty so check with you mortgage professional to find the right one for your needs.

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Q2 - My house has been on the market now for over a year--we have barely had any offers, and our first offer just came in 100,000 under our ask price. We wanted to start high, but since then have totally taken the advice of our realtor. Do you think the price is too high? Or are there not a lot of buyers? We really want to sell but we don't know why we aren't getting any offers. Our house is in wonderful condition.

A - In today's market, price is king. By starting high you missed an opportunity to capture buyers who were looking at other homes in your market price point.  Buyers are incredible savvy today with market comparables since this information is now readily available online.  The good news is there are buyers looking for great property. If no offers are coming in, it is now time to sit down with your agent and review what has recently sold and what is currently on the market in your neighborhood.  It might be time to retool the price to attract more buyers.

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Q3 - I recently put my home on the market in New Jersey. We live in a nice community and my wife doesn't want to put out a sign because she doesn't want people to know the house is on the market. I think this will prohibit our chances to sell. Is there any research that shows a sign helps in the sale of a home?

A - We know that marketing works to attract buyers.  I often tell my agents, the more, the better.  That doesn't mean that a sign outside your home is make or break.  It is important since it provides an easy and effective way to alert people that your home is for sale.  Think about how many people drive past your home.  Neighbors see that it's for sale and mention it their friends.  That is good word-of-mouth marketing.  But it is not the be all and end all of selling your home.  Your agent will have many other tools available to let those in your community know your home is for sale. While I would recommend a sign, if your wife insists on not having one, you can still successfully sell your home in today's market.

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Q4 - We live in NYC and we want to put our apartment on the market. There are currently a number of apartments for sale in our building. What can we do to make ours stand out?

A - Your apartment can stand out in a number of ways.  First, you can price it appropriately so it will appeal to buyers.  One advantage to having other homes in your building on the market is that all of those homes will be marketed and advertised.  This means buyers will be coming to your building.  If they come to see unit X, but in the process learn about your unit - which is smartly priced  and which shows better - you can bring in that pool of buyers to see your home.  Make sure it's free of clutter, and that your agent takes professional photos of your home.  Great photography helps a unit standout, particularly when buyers are comparing units on the Internet.

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Q5 - I recently lost my job, and my wife still works- however, due to this we have been late on our mortgage payments a few times. Under President Obama's new plan to help people who have been having trouble paying their mortgage we thought we could refinance, however, when we call the bank they say we don't qualify because we have 4 late payments. I thought this is designed to help people like us? Any idea what else we can do? Our rate is currently at 7% and we really want to refinance.

A - You have to contact the right dept. The bank is correct that under the normal refinance guidelines you cannot refinance with late payments. You need to ask to speak to someone in the lost mediation dept. Make sure you speak to a supervisor. They will be able to help restructure your mortgage. Please note that this is a very time consuming process and you have to be patient and persistent.

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