How to sell your home faster

If you’re selling a house in today’s economy, make sure the price is right.

First, look slim. We all know that $2.99 is barely less than $3. Yet retailers continue to use this trick because it works. Potential buyers will read the 2 first – and have a sense the house is cheaper than it really is.

Second, price up. You should always list higher than you’re willing to accept. People will use that information in setting their reference price. But if you set a price too high, you’re likely to get little to no response. Check comparable homes in your area.

Third, send a message. A round number, such as $295,000, will convey quality, while an exact number, such as $295,385, will indicate a bargain. The reason: We associate precise numbers with lower priced goods. A precise number might also signal that you have given a lot of thought to the price and aren’t willing to negotiate.

Fourth, cut prices. Think about dropping your asking price, while making the calculation easy on the buyer. Let’s say you lower the price from $295,385 to maybe $280,385 or $275,385. It’s easy for buyers to calculate the price drop compared to dropping the price from $295,385 to $278,495.

Remember, setting the right price is as much about knowing how buyers think than how much the property is worth.

Mike Ayoub is a Realtor with Re/Max Team 2000 in Dearborn. You can reach him at (313) 675-6775.

One big mortgage mistake and how to avoid it

Applying for a mortgage can be a daunting experience. After all, you’re getting ready to take on the biggest debt in your life. You’re also facing piles of paperwork.

So, it’s easy to make some mistakes. Here’s one mistake I see, and what you can do to prevent it.

Not fixing your credit

I’m still confounded to this day at the number of buyers who apply for a mortgage with their fingers crossed, hoping their credit will allow them to qualify for a loan.

Before you even think about a loan, get copies of your credit report and your FICO credit score. Your FICO score is the three-digit number that’s used in 75 percent of mortgage lending decisions. You can order your FICO score with us, which includes a copy of your credit report.

If there are any errors on your report, we’ll help you fix them so you can apply for your loan. Maybe it’s as simple as paying off an overdue bill or paying down credit card debt. Call us at (313) 289-4444 to help you achieve freedom from your debt and help you purchase your home.

Andy Elder is a mortgage lender and credit repair counselor with Elder Finance Group in Dearborn.

Planning for success in an uncertain economy

Too many people decide how to invest their savings based on what everyone else is doing. But no one can make the right decisions for your investments. That’s why a financial plan is so important.

A financial plan is simply a guide to help you determine where you are financially, where you want to be, and how to get there.

Wise investors know that a diversified stock portfolio helps cushion against the ups and downs of the market. Having a plan in place can help ensure that your investment decisions are the right ones for you. Markets go up and down, but good planning can help you take control of your finances.

Gehad Alawan is a financial professional with AXA Advisors, LLC. He can be reached at (313) 506-0456.