Teresa's Gahanna Real Estate Blog

2011-02-23T16:06:00.000-05:00

THIS BLOG HAS MOVED TO:

http://teresabutler.com/blog

B of A and GMAC to Resume Foreclosures

2010-10-20T11:54:00.000-05:00

2010-10-15T21:14:00.002-05:00

THIS BLOG HAS MOVED TO:

http://teresabutler.com/blog

2010-10-08T21:03:00.002-05:00

Foreclosure Halt Creates Problems for Buyers

The fallout from the crackdown on mortgage lenders’ handling of paperwork is affecting buyers' ability to close.

Distressed properties make up about a third of home sales. About half of states are particularly affected by the problem. Two factors in various states are causing numerous delays are:

1. Officials in several states — including Texas, Maryland, and Connecticut — are seeking a suspension of all foreclosures until lenders prove what they are doing is legal.

2. Title insurers are refusing to sell title insurance when they can’t be sure there is a clean title.

When will the problem be resolved? Right now, it appears to be anybody’s guess, but until it is resolved, buyers, sellers, and real estate practitioners will be caught in the middle.

Source: The New York Times, Andrew Martin and David Streitfeld (10/07/2010)

2010-10-07T20:48:00.000-05:00

Wells Fargo Settles Pick-a-Payment Charges

Wells Fargo announced Wednesday that it had agreed to pay $24 million to end an investigation by eight states probing whether the company used deceptive tactics to sell "pick-a-payment" adjustable-rate mortgages without telling consumers the risks.

The $24 million will be used to help states assist customers who took out such loans. Wells Fargo also agreed to offer more than $770 million in its own loan assistance to borrowers.

The company signed agreements with attorneys general in Arizona, Colorado, Florida, Illinois, Nevada, New Jersey, Texas and Washington State.

Wells Fargo admitted no wrongdoing.

Source: The Associated Press, Alan Zibel (10/06/2010)

2010-10-07T20:46:00.000-05:00

Foreclosure Reviews Could Lead to Costly Delays

House Speaker Nancy Pelosi has called for a federal investigation of foreclosure sales and evictions.

Observers say that if the government gets further involved and millions of foreclosures need to be re-processed, it is unclear how long the job will take and how costs will be allocated.

Lenders are rushing to review their own situations. At GMAC Mortgage, a unit of Ally Financial Inc., a spokeswoman said, “The vast majority of these affidavits will be resolved in the coming weeks and before the end of the year,” And a spokesman for J.P. Morgan Chase & Co. said the company's review process is expected to take "a few weeks."

But fixing the problems won’t be that simple if the reviews uncover missing documentation or other serious problems that are likely to trigger more legal challenges.

The bottom line is: "It's very hard to see how the servicers can avoid reimbursing the trusts for losses caused by taking short cuts," said David J. Grais, an attorney in New York who represents investors.

Source: The Wall Street Journal, Robbie Whelan and Ruth Simon (10/06/2010)

2010-10-06T15:04:00.002-05:00

HUD Has Loans for Out-of-Work Borrowers

The U.S. Department of Housing and Urban Development announced Tuesday that it will offer $50,000 loans to unemployed borrowers who are at least three months behind in their payments, but who have a reasonable likelihood of being able to resume regular payments within two years.

The property must be the borrower’s principal residence and they cannot own a second home. They must have suffered at least a 15 percent decline in income.

The loan is available in 32 states not receiving assistance through the Hardest Hit Fund, which gave 18 states more than $4 billion to devise programs to help the unemployed and underwater borrowers.

Source: CNNMoney.com, Tami Luhby (01/05/2010)

2010-10-05T13:54:00.000-05:00

Photography Spending Pays Off

No shocker here: Sales listings taken by higher-end single-lens-reflex cameras (SLR), preferred by professionals, garner higher prices than those properties whose sellers use point-and-shoot cameras, according to Redfin Corp., a Seattle-area real estate firm.

Redfin analyzed listings in Boston and Long Island and determined that houses with better photos sold for anywhere from $934 to $116,076 more compared to listings using photos from point-and-click cameras. The data also showed that properties with better photos got more online views.

Only about 15 percent of sellers use professional photographers and better cameras. Redfin says that about half of $1 million-plus listings were shot with cheaper point-and-shoot cameras.

Source: The Wall Street Journal, Emily Peck (10/04/2010)

2010-10-05T13:49:00.002-05:00

Fed Chair: Government May Buy More Debt

Federal Reserve Chair Ben Bernanke hinted Monday that the Fed is likely to buy more government debt, a move that could further drive down rates on mortgages, corporate financing, and other loans.

"I do think the additional purchases, although we don't have the precise numbers for how big the effects are, I do think they have the ability to ease financial conditions," Bernanke said at a meeting with college students after his presentation at the Rhode Island Public Expenditure Council.

Bernanke also defended the TARP program, saying that the downturn would have been much worse without it.

Source: Reuters News (10/4/2010)

2010-10-04T13:52:00.000-05:00

Regulators to Banks: Review Foreclosures

Improper foreclosure procedures are throwing another curve ball at the troubled mortgage industry.

Regulators from the Office of the Comptroller of the Currency have told seven major banks to review their foreclosure procedures after Bank of America and Wells Fargo joined JPMorgan and GMAC (now known as Ally Financial) in freezing their foreclosure processes.

Banks that regulators contacted include HSBC, Citigroup Inc., PNC Financial Services Group Inc., and U.S. Bankcorp (USB).

Simultaneously, title insurer Old Republic National said Friday it would stop insuring the sales of homes foreclosed by JPMorgan Chase & Co. or GMAC Mortgage until questions about documentation are cleared. An inability to get title insurance could bring home sales to a halt.

Source: The Wall Street Journal (10/01/2010) and Reuters News (10/03/2010)

2010-10-01T19:56:00.002-05:00

90-Day Delinquencies Fall Again

More evidence that the housing crisis is easing: Fannie Mae said Thursday that delinquencies of 90 days or longer on single-family mortgages declined in July for the fifth-straight month.

The overall delinquency rate fell to 4.82 percent in July, down from 4.99 percent in June. This was a 10-month low.

Source: The Wall Street Journal, Nathan Becker (09/30/2010)

2010-09-29T15:54:00.000-05:00

Owners Spending Less on Housing

The percentage home owners with mortgages who spent 30 percent or more of their household income on housing, including mortgage payments, taxes, insurance, and utilities, was 37.6 percent in 2009, almost unchanged from 2008. At the same time, the median home price dropped about 6 percent, according to data from the U.S. Census Bureau.

Renters weren’t so lucky. The number of renters spending 30 percent or more of their household income on housing-related costs rose to 51.5 percent of all renters in 2009, rising from 50 percent in 2008, according to the Census.

Two factors affected housing affordability:

· Median household income, adjusted for inflation, fell 2.9 percent in 2009 as unemployment rose.

· Median monthly housing costs, including rent and utilities, rose 3 percent in 2009 from $818 to $842.

Source: USA Today (09/29/2010)

2010-09-27T15:00:00.000-05:00

What's New in New Housing Design

Here are the products grabbing the attention of the home building and remodeling industries, according to Bill Millholland, executive vice president of sales and marketing at Case Design/Remodeling in Maryland, and Jamie Gibbs, a New York-based interior designer:

· Appliance Drawers. Small warning drawers, modest-sized dishwasher drawers for small loads, refrigerator drawers and microwave drawers.

· Counter-depth refrigerators. Some are only 24 inches deep.

· Motion-detecting faucets. Like you'd find in the restrooms of businesses.

· LED (light-emitting diode) lighting. These are used under cabinets and in ceiling fixtures as a longer-lasting, more efficient alternative to compact fluorescent lamps and incandescent bulbs.

· Electric heated floors. A nice touch in bathrooms,

· Showers with multiple heads and body sprays. Bathtubs are out.

Source: The Washington Post (09/25/2010)

2010-09-25T15:13:00.000-05:00

Home Buying and Selling Tips for Fall

HGTV’s real estate site Front Door says the weeks between now and the end-of-the year holidays are the best ones to find a bargain. Here are some of their tips for fall buyers and sellers:

Fall Sellers:

· Replace faded summer plants with fall-blooming flowers and add autumn decorations to the home.

· Expect low-ball offers and be prepared with higher counter offers.

· Freshen up listing photos by shooting pictures that make it less obvious that the seasons have changed.

· Price the home to sell. A price that is a little lower than the competition may be a winning move.

· Be willing to show the property and hold open houses whenever potential buyers are ready.

Fall Buyers:

· Look for motivated sellers who have a reason to move on by the end of the year.

· Explore new constructions. Builders are often particularly interested in selling before the new tax year.

· Beware of fall maintenance issues. Consider overflowing gutters and leaf-covered lawns warning signs.

· Shape offers carefully. Even in this market it is possible to turn sellers off with a too-low bid.

Source: FrontDoor.com (09/16/2010)

2010-09-25T15:00:00.000-05:00

Banks to Review Rejected Loans

Some banks are launching a “second look program” to review loans that have been denied in order to identify circumstances that might persuade underwriters to reverse their decisions.

The Financial Services Roundtable, a trade group of 100 financial companies, including Bank of America Corp., J.P. Morgan Chase & Co., and U.S. Bancorp. Bankers say these programs are starting to loosen the logjams that have made it so hard for both home buyers and small businesses to get loans.

"I don't think of it as being looser. I think of it as making good judgments," says Stephen D. Steinour, chairman, president and CEO of Huntington Bancshares Inc.

Source: The Wall Street Journal, Ruth Simon (09/23/2010)

2010-09-16T16:05:00.000-05:00

10 Reasons to Buy a Home

Time magazine is being overly pessimistic in its recent cover piece that called into question the benefits of homeownership. In fact, now is a great time to buy. And, what's more, tomorrow will be a great time to own, because the fundamental strength of homeownership hasn't changed.

Why is now a great time to buy? Here are 10 reasons:

1. You can get a good deal. Prices are down 30 percent on average. They're at a level that makes sense for people's income.

2. Mortgages are cheap. At 4.3 percent on average for a 30-year fixed-rate mortgage, your costs to own are down by a fifth from two years ago.

3. You can save on taxes. When you add up the deductions for mortgage interest and others, the cost of owning can drop below renting for a comparable place.

4. It'll be yours. The one benefit to owning that never changes is that you can paint your walls orange if you want (generally speaking; there might be some community restrictions). How many landlords will let you do that?

5. You can get a better home. In some markets, it's simply the case that the nicest places are for-sale homes and condos.

6. It offers some inflation protection. Historically, appreciation over time outpaces inflation.

7. It's risk capital. If the economy picks up, you stand to benefit from that, even if you're goal is just to have a nice place to live.

8. It's forced savings. A part of your payment each month goes to equity.

9. There is a lot to choose from. There are some 4 million homes available today, about a year's supply. Now's the time to find something you like and get it.

10. Sooner or later the market will clear. The U.S. is expected to grow by another 100 million people in 40 years. They have to live somewhere. Demand will eventually outpace supply.

Source: Wall Street Journal, Brett Arends (9/16/10)

2010-09-15T18:55:00.000-05:00

The Pros and Cons of Corner Properties

Some people see a corner lot as an asset, but an equal number believe it is a liability.

Pluses of these properties include more flexible design options, shorter driveways, sunnier interiors, and more on-street parking. The negatives are a small and not-very-private backyard, more noise, more streetlights and headlights, and a greater need to look out for dogs and children.

Additional maintenance demands, which bring higher costs, discourage some would-be buyers of corner properties, said Steve Hovany, president of Schaumburg's Strategy Planning Associates, a real estate planning consultancy.

But some buyers like corner homes anyway. A corner home "is a rare home," said Ray Hartshorne, partner with Chicago's Hartshorne Plunkard Architecture. "It's a home that's distinctive in a world that makes distinctive homes more valuable."

Source: Chicago Tribune, Jeffrey Steele (09/03/2010)

2010-08-09T15:32:00.002-05:00

Tips for Finding the Perfect Neighborhood

The neighborhood you choose can have a big impact on your lifestyle—safety, available amenities, and convenience all play their part.

Make a list of the activities—movies, health club, church—you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood you’re considering to engaging in your most common activities.

Check out the school district. The Department of Education in your town can probably provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. If you have school-age children, also consider paying a visit to schools in the neighborhoods you’re considering. Even if you don’t have children, a house in a good school district will be easier to sell in the future.

Find out if the neighborhood is safe. Ask the police department for neighborhood crime statistics. Consider not only the number of crimes but also the type—burglaries, armed robberies—and the trend of increasing or decreasing crime. Also, is crime centered in only one part of the neighborhood, such as near a retail area?

Determine if the neighborhood is economically stable. Check with your local city economic development office to see if income and property values in the neighborhood are stable or rising. What is the percentage of homes to apartments? Apartments don’t necessarily diminish value, but they do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months?

See if you’ll make money. Ask Teresa for the local appreciation trends in the area. Although past performance is no guarantee of future results, this information may give you a sense of how good an investment your home will be. Teresa may also be able to tell you about planned developments or other changes in the neighborhood—like a new school or highway—that might affect value.

See for yourself. Once you’ve narrowed your focus to two or three neighborhoods, go there, and walk around. Are homes tidy and well maintained? Are streets quiet? Pick a warm day if you can and chat with people working or playing outside. Are they friendly? Are their children to play with your family?

For more information on neighborhoods and buying a home visit: http://teresabutler.com/

2010-08-04T12:58:00.000-05:00

Renters take note: patch and repair to reclaim your full deposit
(ARA) - Whether you're renting a truck or paying for movers, costs can add up quickly when you're changing residences. If you've been renting, the full return of your security deposit may come as sweet relief as you move from one place to the next.

Because you've been without that healthy chunk of change since moving in to the place you're now leaving, anything less than a full refund would be a disappointment. It would be a shame if a spot on the carpet, a broken blind or knick gave your landlord a reason to withhold a large portion, or all, of your security deposit.

With a careful eye and some elbow grease, you can ensure that you get your full deposit back and put the money to good use during the next phase of your life. Home improvement experts and authors of "Dare to Repair" Julie Sussman and Stephanie Glakas-Tenet teamed up with Lowe's to offer the following tips for getting your full deposit back:

* Work with your landlord. Obtain a list from your landlord that defines normal wear and tear, as well as tasks that must be completed upon moving out. If possible, have your landlord do a walk-through with you before moving out. If not, take photos so you have proof of the condition your residence was in when you left.

* Pack first, clean later. While cleaning and making minor repairs are integral to getting your deposit back, it's a lot easier to do once everything has been cleared out of your residence. A home improvement store like Lowe's will have all the boxes and moving supplies you may need.

* Dust and vacuum. Do not limit to just floors and obvious places. Dust light fixtures, ceiling fan blades and around the windows. Vacuum closets and under appliances.

* Clean appliances. Check the manufacturer's website for instructions on cleaning the oven. This can take hours, so budget your time accordingly. Clean the refrigerator with a warm, soapy rag and move shelves to be cleaned to the sink. Dry the shelves before returning to the fridge. A handy trick for cleaning microwaves is to fill a microwave-safe bowl with water and half a lemon and heat it for a few minutes. Remove the bowl, wear an oven mitt and wipe down the inside with a wet rag. Clean the exterior of your washer and dryer and remove lint.

* Make sure the kitchen and bathrooms are spotless. Use specialty cleaners for toilets, sinks and other surfaces if necessary.

* Touch up walls. Use lightweight joint compound for nail holes and wall repair patch over larger holes. Let the filling dry, sand and paint. For cracks, use wall repair tape, let dry, sand and dust. Reapply and follow the same process before painting. To find the right paint, take a chip of paint to a home improvement store and have it matched to the original paint color. Consider a one-coat-and-you're-done paint like Valspar Signature, which is carried by Lowe's, to save time.

* Clean carpeting. Before spot-cleaning the carpet, test the carpet cleaning product in an out-of-sight area.

* Replace broken items. Look for burnt-out or broken light bulbs both inside and out and replace. Check for blinds and shades that are broken.

* Clean up outside. Pick up trash. Mow and sweep if necessary.

* Donate items you don't want or need. Look for local charitable organizations that could use the items instead of throwing them out. Ask for a receipt so you can write off your donations on your taxes.

For more help with your moving needs, visit your local Lowe's or lowes.com/moving.

Courtesy of ARAcontent

2010-08-03T15:52:00.003-05:00

Five Surprising Reasons to Buy a Home Now
Low mortgage rates serve as an equity shock absorber. When buyers borrow at today's record-low rates, they start building equity as soon as they close. That means they can absorb a few ups and downs as the still-recovering housing market gains traction.

Houses are in move-in condition. Home owners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. As these houses enter the market, they are in marked contrast to tattered foreclosures.

Terrific houses are coming on the market. Foreclosures are finally starting to clear the system, and they are being replaced by some very attractive properties.

Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines, giving appraisers more flexibility to set values that reflect the current market.

Plenty of programs. Many programs that encourage middle-class families to buy homes continue to exist, despite market downturns. Buyers who qualify can get a big boost by combining one of these programs with today's low mortgage rates.

Source: ForSaleByOwner.com (07/29/2010)

2010-08-02T14:41:00.002-05:00

Weighing the costs of walking away from an upside-down mortgage

(ARA) - Owing more on your mortgage than your house is worth may seem like a bad investment. But the alternative - choosing to default on your mortgage even if you can afford the monthly payments - will take a significant toll on your credit rating.

"Strategically defaulting - deciding to stop paying your mortgage regardless of your ability to actually carry the debt - will have a far-reaching, long-lasting impact on your ability to secure future credit," says Maxine Sweet, vice president of public education for global information services company Experian, one of the three large credit reporting companies that receive and update consumer credit histories which are scored to help predict risk. "It's by no means a move to be undertaken lightly."

About 355,000 borrowers strategically defaulted in the first half of 2009, according to research conducted as part of the Experian-Oliver Wyman Market Intelligence Reports. Interestingly, Experian and Oliver Wyman found that the homeowners most likely to strategically default were also those with the highest credit scores.

While it may seem like a good move to simply stop paying and walk away from a bad investment, keep several factors in mind when you consider strategic default:

* It's very final. Strategic default will lead to foreclosure by the lender. Foreclosure will negatively impact your credit report and scores. In fact, only bankruptcy will affect your scores more adversely than foreclosure.

For more information on just how severe the impact can be, VantageScore LLC recently completed a study that evaluates the effect that foreclosures, bankruptcies, short sales, and various mortgage programs have on consumers' VantageScore credit scores.

* The default will remain on your credit report for seven years. Since credit scores are based on information in your credit report, the foreclosure will greatly impact your credit scores during those seven years. Securing other credit at reasonable terms and rates will be very difficult, if not impossible, during that time.

* Potential lenders aren't the only ones looking at credit reports these days. Insurers, employers and even cell phone companies are considering the creditworthiness of those who want to do business with them. By impacting your credit report, a strategic default may affect your ability to get a job, secure insurance and enter into important service contracts.

* Fannie Mae, the government-controlled mortgage giant, announced on June 23 policy changes that will make you ineligible for a new Fannie-Mae-backed mortgage if you walk away from a current mortgage that you actually could afford to pay. The ineligibility will last for seven years from the date of foreclosure.

* Finally, in some cases, the debt that foreclosure "erases" may be recorded as income, which means you will have to pay taxes on it.

"Strategic default may seem like 'walking away' from a bad debt, but it's really anything but," Sweet says. "While you will no longer have to pay the actual debt, you'll almost certainly 'pay' in other ways, in the form of lowered credit scores and a drastically curtailed ability to secure future credit for the next seven years. Higher interest rates and unfavorable terms could end up costing you more in the long run than continuing to pay on an upside-down mortgage."

To learn more about credit management, credit reports, credit scores and the factors that affect them, visit www.Experian.com.

Courtesy of ARAcontent

2010-07-29T21:01:00.002-05:00

Frugal Tips for Making a Home More Appealing

Homeowners who want to sell but don’t have a lot of cash to spruce up their properties might consider these tips from Bankrate.com for upgrading a property without spending a fortune.
Polish up the kitchen. Add new cabinet door handles, replace lighting and update the faucet set. Unless the cabinets are mica, give them a fresh coat of paint. Order new doors for kitchen appliances.

Tidy up the bath. Replace the toilet seat. Clean up the floor with vinyl tiles or sheet vinyl applied over the old floor. Re-grout the tub and, if the tub is dingy, add a new prefabricated tub and shower surround.

Paint the walls.

Add closet systems to all the bedrooms, pantry, and entry closets.

Hire a plumber and an electrician to fix anything that is loose or that leaks.

Clean the carpets or, if they are worn, cover them with area rugs.

Replace ceiling lights with inexpensive but attractive fixtures.

Refinish or repaint the front door and replace the hardware.

Mow the lawn, edge the sidewalks, mulch all the beds and put two big planters at either side of the front door.

Source: Bankrate.com (07/14/2010)

2010-07-29T20:21:00.001-05:00

It's a Great Time for Housing Deals

Paying off an underwater mortgage and buying a better home could be the best tactic in this troubled market.

"If you are trading up, what better time than when interest rates are at record lows and the cost of the trade-up is much less than it used to be?" says Christopher J. Mayer, a Columbia Business School economist.

With 15-year fixed-rate mortgages at about 4.5 percent, it also makes sense to pay off the mortgage and keep the house. "At this point," says Jay Brinkmann, chief economist of the Mortgage Bankers Association in Washington, D.C., "if they don't have anything else that is bringing a tremendous return, then they are buying themselves an annuity by paying their house off sooner than they needed to."

Source: The Wall Street Journal, M.P. McQueen (07/24/2010)

2010-07-22T17:29:00.000-05:00

2010-06-22T14:10:00.000-05:00

Continued Strong Pace for Existing-Home Sales

Existing-home sales remained at elevated levels in May on buyer response to the tax credit, characterized by stabilizing home prices and historically low mortgage interest rates, according to the National Association of REALTORS®. Gains in the West and South were offset by a decline in the Northeast; the Midwest was steady.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, were at a seasonally adjusted annual rate of 5.66 million units in May, down 2.2 percent from an upwardly revised surge of 5.79 million units in April. May closings are 19.2 percent above the 4.75 million-unit level in May 2009; April sales were revised to show an 8.0 percent monthly gain.

Buyers Face Purchasing Delays

Lawrence Yun, NAR chief economist, said he expects one more month of elevated home sales. “We are witnessing the ongoing effects of the home buyer tax credit, which we’ll also see in June real estate closings,” he said. “However, approximately 180,000 home buyers who signed a contract in good faith to receive the tax credit may not be able to finalize by the end of June due to delays in the mortgage process, particularly for short sales.

“In addition, many potential sales are being delayed by an interruption in the National Flood Insurance Program. Florida and Louisiana, also impacted by the oil spill, have the highest percentage of homes that require flood insurance.”

As the leading advocate for homeownership issues, NAR is supporting Senate amendments to extend the home buyer tax credit closing deadline through September 30 for contracts written by April 30, and to renew the flood insurance program. “Sales and related local economic activity would have been higher without delays in the closing process or flood insurance issues,” Yun noted.

Housing Still Affordable

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.89 percent in May from 5.10 percent in April; the rate was 4.86 percent in May 2009.

The national median existing-home price for all housing types was $179,600 in May, up 2.7 percent from May 2009. Distressed homes slipped to 31 percent of sales last month, compared with 33 percent in April; it was also 33 percent in May 2009.

NAR President Vicki Cox Golder said home prices have been stabilizing all year. “With distressed sales at roughly the same level as a year ago, the gain in home prices is a hopeful sign that the market is in a good position to stand on its own without further government stimulus,” she said. “Very affordable mortgage interest rates and stabilizing home prices are encouraging home buyers who were on the sidelines during most of the boom and bust cycle.”

Pending home sales are expected to decline notably in May and June from the spring surge, but Yun added that job growth and a manageable level of foreclosures are keys to sales and price performance during the second half of the year.

Inventory Falling

A parallel NAR practitioner survey shows first-time buyers purchased 46 percent of homes in May, down from 49 percent in April. Investors accounted for 14 percent of transactions in May compared with 15 percent in April; the remaining sales were to repeat buyers. All-cash sales were at 25 percent in May, edging down from a 26 percent share in April.

Total housing inventory at the end of May fell 3.4 percent to 3.89 million existing homes available for sale, which represents an 8.3-month supply at the current sales pace, compared with an 8.4-month supply in April. Raw unsold inventory is 1.1 percent above a year ago, but is still 14.9 percent below the record of 4.58 million in July 2008.

Single-family home sales declined 1.6 percent to a seasonally adjusted annual rate of 4.98 million in May from a pace of 5.06 million in April, but are 17.5 percent above the 4.24 million level in May 2009. The median existing single-family home price was $179,400 in May, which is 2.7 percent above a year ago.

Single-family median existing-home prices were higher in 16 out of 20 metropolitan statistical areas reported in May from a year ago. In addition, existing single-family home sales rose in 18 of the 20 areas from May 2009.

Existing condominium and co-op sales fell 6.8 percent to a seasonally adjusted annual rate of 680,000 in May from 730,000 in April, but are 32.6 percent above the 513,000-unit pace in May 2009. The median existing condo price was $181,300 in May, up 3.4 percent from a year ago.

By Region

Existing-home sales in the Northeast fell 18.3 percent to an annual level of 890,000 in May from a surge in April, but are 12.7 percent higher than a year ago. The median price in the Northeast was $240,200, down 2.2 percent from May 2009.

In the Midwest, existing-home sales were unchanged in May at a pace of 1.33 million and are 22.0 percent above May 2009. The median price in the Midwest was $150,700, up 2.2 percent from a year ago.

In the South, sales increased 0.5 percent to an annual level of 2.15 million in May and are 22.9 percent above a year ago. The median price in the South was $159,000, up 1.0 percent from May 2009.

Existing-home sales in the West rose 4.9 percent to an annual rate of 1.29 million in May and are 15.2 percent higher than May 2009. The median price in the West was $221,300, up 7.4 percent from a year ago.

Source: NAR

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2010-04-30T13:25:00.000-05:00

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2010-04-12T14:25:00.000-05:00

5 Signs a Home Has Potential

The best deals on homes these days are often on properties that aren’t perfect.

Home shoppers looking for a great deal should keep these factors in mind when they are looking for a place with potential:

· Location, location, location. It’s still true that you get a better deal when you buy the worst house in a great neighborhood than you do when you buy a fancy house in a not-so terrific neighborhood.

· Less than 50 years old. Properties older than a half decade are likely to have more fundamental problems — like aging wiring, inadequate plumbing and sagging foundations.

· Livable floor plan. Buyers should select a home with a basic design they can live with. Once they start moving walls, they’re into big money.

· Light. Houses with the most potential have plenty of natural light.

· Good storage. Adding storage isn’t cheap, so it’s smart to choose a property that already has it.

2010-04-06T14:55:00.001-05:00

'Speed Decorating' Quickly Improves Property

Anyone planning to sell a home might be advised to read Jill Vegas’ Speed Decorating.” Vegas explains how to redecorate at minimum cost and maximum speed.

“Speed decorating,” she says, “is not about calling in contractors; it's about looking at a room and thinking about what you can do in a couple of hours, a week, to make it better."

Vegas offers these tips for anyone who needs to do a little high impact, low cost upgrading:

Clear out the clutter
Clean and repaint
Define the function of each room and then place furniture to accentuate that purpose
Improve the lighting, adding bright light to work areas and soft light to bed and dining rooms
Use art and accessories to add drama and personality

2010-04-05T13:12:00.000-05:00

A Good Time to Buy a High-End Home

Some of the best housing deals are on high-end homes, many over $1 million. Some of them need TLC or they aren’t in the most-coveted locations. But there are plenty of desirable properties and lots of sellers who are getting impatient.

Buyers with cash have the best opportunities. Buyers who need a mortgage should move especially quickly. With the Federal Reserve ending its purchases of mortgage securities this month, the mortgage market is likely to rise from its current low level. Even if prices fall further, the rising cost of borrowing could eliminate any savings.

As Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, says, this is a "very good time to be a buyer at the high end."

Source: The Wall Street Journal, Nick Timiraos and James R. Hagerty (03/27/2010)

2010-04-05T13:08:00.000-05:00

Key Features of the New Housing Rescue Plan

The government’s newest housing rescue effort, which was announced Friday, includes these key tenets:
· As much as $14 billion of the Troubled Asset Relief Program (TARP) will be made available to pay for writing down second liens for loans whose borrowers refinance through the Federal Housing Administration.

· Lenders that facilitate refinances through the FHA will be required to write down the principal of the first mortgage by at least 10 percent so the home owner has a loan-to-value ratio no higher than 97.75 percent.

· Lenders of second liens will be offered incentives of 10 cents to 21 cents per dollar of principal they write down in connection with an FHA refinance.

· Borrowers who lose their jobs can apply to have their mortgage payments reduced for three to six months while they search for a new job.

· Borrowers with a payment still greater than 31 percent of income after they find a job will be considered for a permanent loan modification.

· To encourage more short sales and “deed in lieu” of foreclosure transactions in which the lender settles the loan for less than is owed, the government will double assistance to borrowers to $3,000 and increase incentives to subordinate lien holders and investors to $6,000.

Source: Reuters News (03/26/2010)

New Posterous Account

2010-02-26T22:41:00.001-05:00

I just discovered Posterous. I set up a new account and then I can post one status update and it will post to all of my social networks at once. Pretty cool.

Posted via web from teresabutler's posterous

New Posterous Account

2010-02-26T22:36:00.001-05:00

I just discovered Posterous. I set up and account and I can make one status update here and it will update all my social networks at once. Pretty Cool.

Posted via web from teresabutler's posterous

2010-02-25T13:27:00.002-05:00

Picking the Perfect Neighborhood

Community

Check out the local markets, parks, shops, restaurants and community events. Attending events will allow you to get a feel for the area and your potential neighbors. Ask store owners and community members what they love about the neighborhood.

Crime

Check with the local police department or state Web site for crime statistics in the area. Sites like Family Watch Dog and Spot Crime are great places to start.

Transportation

Consider how you will get around. Is there public transportation? Do most people drive? Is it safe to ride a bike? How far will your commute be to work? Time it during rush hour to make sure. What about grocery stores, restaurants, malls, pharmacies and doctor's offices? You may not want to drive 20 minutes for a loaf of bread or to refill your prescription.

Schools

Research the local school districts. Are public and private schools available? Do they offer extra curricular activities? What is the cost per student? If your child will ride a bus, how long will it take to reach school grounds?

Traffic and Noise

Walk around the community at different times of the day as well as during the evening. Are there railroads, airports or entertainment establishments around? Where are the highways located? Have sound barriers been constructed?

These are all important aspects of a neighborhood to consider. Ask for information from your professionally certified Realtor®, and use the internet as a resource. Your Realtor® should be able to give you great insight into the area, and provide you with the tools you need to make your decision.

2010-02-23T22:19:00.002-05:00

Easy ways to stage your home for sale
(ARA) - You've made the decision to sell your home. But before you put the "for sale" sign in the yard, make sure it's ready to make a good impression on prospective buyers and clearly stands out among the many other homes on the market.

There are many easy and inexpensive ways to clearly differentiate your home so that it appeals to a wide range of buyers ... and in return, yields a fast and profitable sale.

To begin, purge. Nothing makes a home look smaller than cluttered countertops, cupboards and closets. Plus, buyers want to envision a home with their own possessions - not yours. As you start cleaning, sort items in three categories: donate, sell or keep. Soon, your home will look neater and you may add some cash to your wallet or gain a tax write-off.

Next, consider tackling projects that are easy, fast and inexpensive - but will significantly boost your home's appeal. Magazines are a great source of inspiration, and brands such as Krylon even have Web sites (http://beamoverandshaker.com/) that offer practical advice and dozens of projects specifically designed to stage your home for sale.

Some indoor and outdoor projects that are quick, inexpensive and guaranteed to get your home noticed include:

Focal point finishes

Lighting fixtures are the focal point of many rooms - but replacing them can cost hundreds of dollars. With a little elbow grease, $20 and less than two hours, you can update your existing ones with a new, more attractive and popular stainless steel finish.

Directions: Cover your work area with newspaper and disassemble the fixture. Clean the pieces and tape off areas that don't need to be painted. Following the instructions, apply indoor/outdoor primer followed by the new metallic paint. Once dry, remove the tape and reassemble the chandelier.

Cover the smallest details

When sprucing up your home for sale, sometimes it's the small details that can make the biggest impact. Painting dull, dirty or chipped register covers or light switch plates can give any room a quick pick-me-up, in less than an hour.

Directions: Remove register covers or light switch plates and place them on newspaper. Sand the surface lightly and wipe clean. Clean all pieces to remove any built up dust and grime. Following instructions, apply a number of light coats of primer, followed by a couple coats of gloss or metallic spray paint. Once dry, reinstall and enjoy.

Illuminate the exterior

Exterior lighting showcases the beauty of your home, so make sure that your light fixtures are just as attractive. Update faded, rusty or outdated finishes with a fresh new finish for a minimal price and maximum impact.

Directions: Turn off power to the lights and detach the fixture from the house. Remove the light bulb and mask off any parts that should not be painted - including wires. Place the fixture on newspaper and lightly sand. Clean all pieces and wipe dry. Following the directions on the can, spray several light coats of Krylon's Outdoor Spaces Metallic Finish. Make sure to evenly apply paint to the entire fixture. Once paint is completely dry, reattach the parts, reconnect the lightning fixture and turn the power back on.

Freshen up with flowers

The right landscaping and use of plants and flowers can greatly improve your home's curb appeal for prospective buyers. Brightening up your flower boxes is a quick and easy way to add some color to the front of your home in just a few hours.

Directions: Place a clean flower box on newspaper, sand the exterior to create a smooth surface. Apply several light coats of indoor/outdoor primer to help ward off drips. Next, apply a few coats of indoor/outdoor paint in your favorite color. Once dry, the box is ready to display your favorite flowers.

Whether you're prepping your house for sale or fixing up your new home, you'll find dozens of fast and easy projects at beamoverandshaker.com.

Courtesy of ARAcontent Photo ©Teresa Butler 2010. All rights reserved.

2010-02-22T15:14:00.000-05:00

6 Surprising Facts About the Buyer Tax Credit

The homebuyer tax credit is not as simple or straightforward as you might think. Here are some nuances that will affect homebuyers who plan to use it.

*To qualify for the move-up tax credit, a home owner must have occupied the same principal residence for five of the last eight years consecutively.

*Buyers can elect to claim the credit on either their 2009 or their 2010 tax return, whichever is best for them. Buyers who claim the credit in 2009 can’t file electronically because the Internal Revenue Service hasn’t put the required forms on line. The wait for a refund is three or four months.

*The home can be a mobile home or travel trailer that is fixed to land owned or leased by the home owner. A mobile home or travel trailer that is actually mobile doesn’t qualify.

*The home can’t be purchased from a close relative, including a parent, spouse, child, grandparent or grandchild.

*A buyer who earns no taxable income or doesn’t owe any federal income tax can qualify for the tax credit and file a tax return just to claim it.

Source: Bankrate.com, Marcie Geffner (01/21/2010)

2010-02-22T15:08:00.001-05:00

Housing Components Don't Last Forever

Many aspects of a home last little more than a decade. Home buyers should be especially vigilant about inspecting these household components because they have a relatively short lifespan, says the National Association of Home Builders.

Aluminum roof coating: 3-7 years
Enameled steel sinks: 5-7 years
Security systems: 5-10 years
Carpet: 8-10 years
Smoke detectors: fewer than 10 years
Faucets: 10-15 years
Garage door openers:10-15 years
Air conditioners: 10-15 years
Asphalt: 12-15 years
Termite-proofing during construction: 12 years

2010-02-16T19:36:00.000-05:00

White House Lost Value in 2009

The estimated value of the White House has dropped 5.1 percent—from $308 million to $292.5 million—in the last year, according to real estate Web site Zillow.

Homes across the United States declined in value by about 5 percent, so the 132-room mansion is following the national trend. The 5.1 percent decrease in the value of the White House is an improvement over its 7.2 percent decrease in 2008; and the nationwide 5 percent drop is a major improvement over the 11.9 percent average decrease in 2008. The White House, designed by an Irish architect and built in 1792, totals 55,000 square feet and sits on 18 acres.

Source: CNN.Com (1/21/09)

2010-02-16T19:20:00.003-05:00

10 Inexpensive Ways to Wow Buyers

Now is the time for home owners contemplating a spring sale to spruce up their properties in anticipation of what Mike Larson of Weiss Research calls a potentially vibrant home-selling season. "If you have been beating your head against a wall, this is going to feel a lot better,” he says.Here are 10 cheap ways to make a property more attractive to shoppers:
Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.

Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.

Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.

Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.

Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.

Buy warranties. Putting appliances under warranty gives homebuyers a secure feeling.

Improve energy efficiency. New windows or improved insulation tells a potential buyer the seller is on top of things plus they come with tax benefits.

Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.

Buy a stove. Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.

Tidy up the bathrooms. Get rid of mildew, replace caulking, and replace stained sinks.

2010-02-16T19:13:00.000-05:00

Secure a Lender Quickly for Tax Credit

Home buyers who are eager to close the deal before the tax credit expires should be prepared to deal only with lenders who will respond to the need for speed.

Even buyers without A-plus credit should be able to get a loan. "If you go to enough lenders, you can typically get a loan even with a low credit score. The terms, of course, are not as attractive," says Spencer Rascoff, chief operating officer of Zillow.com.

Another possibility is to propose a lease-purchase deal or land contract to the seller. If the deal is structured properly, both buyer and seller could walk away winners.

Source: CNNMoney.com, Jean Chatzky (02/15/2010)

2010-01-12T13:11:00.004-05:00

Understanding your credit opens the door to home-buying success

(ARA) - With many signs pointing to the beginnings of a recovery in the housing market, potential home buyers can still find plenty of selection, low prices and low interest rates. If you're thinking of buying a home, now might be the right time, but before you contact a real estate agent or apply for a mortgage, your top priority should be checking your credit report to see if your credit is in good shape.

Credit - specifically misuse and misunderstanding of credit - spurred the housing crisis, many experts agree. The consequences have included tighter standards from lenders and the need for borrowers to better understand how to use credit wisely.

Interest rates remain low and those with good credit will be better positioned to take advantage of the opportunities currently available in this unique housing market. A good credit report and score can open doors for you in the real estate world, and empower you to secure the best loan and terms possible before you ever tour a single house. Being preapproved for an affordable mortgage can help you move quickly to secure a deal when you find the home of your dreams.

If you've already assessed your finances to determine how much mortgage you can afford, you're ready for the next step - making sure your credit is in top shape to help you get the best possible loan.

Understanding your score and what it means

Lenders consider your credit score and your current credit report when deciding whether or not you're a good credit risk. Your credit score is a number generated by using statistical models that factor in elements from your credit report. The number can change when information on your credit report changes and it's calculated at the time a lender requests a copy of your credit report. Different lenders may use different scoring methods, so your score may vary from lender to lender.

Because credit scores are objective and are based on the information in your credit report, they are fairer than the old opinion-based ways of determining a person's risk level. Your score is a prediction of your likelihood to repay debt responsibly, based on your past credit history and current credit status.

Before you begin contacting potential lenders, check out your credit report, which can be accessed online at Web sites like FreeCreditReport.com.

Know what's on your credit report

Your credit report is the other major piece of information a lender will consider when deciding whether or not to give you a mortgage loan. Your credit report is basically a summary of your financial behavior, including how you've used credit in the past and how well you manage repaying debt. The information on your report comes from creditors, public records and other reliable sources, which report it to the credit bureaus through automated processes.

Credit reports generally include personal data such as variations on your name, your driver's license number, Social Security number, birth date, current and past employers, and current and past addresses. You'll also find a listing of your credit accounts, when each account was opened and your payment history for each. If you've been involved in court action like bankruptcy or monetary judgments, this information will likely appear on your report as well.

Your report will also show past requests for your credit reports (inquiries) that might come from lenders, insurers, employers or stores. Too many inquiries on your report might make potential lenders think you are trying to overspend, so think carefully before applying for new credit; inquiries stay on your report for two years.

Because your credit report changes every time you use credit, it pays to enroll in a credit monitoring product. Web sites like FreeCreditReport.com make it easy to track both your score over time and monitor your credit report, ensuring you know what's on your report before a potential lender looks at it.

Buying a home is likely the largest investment you'll ever make - one that will impact your credit for many years to come. Before you jump into the process of applying for a loan to buy a home, it pays to understand credit, review your report and know your score.

Courtesy of ARAcontent. Photo ©Teresa Butler 2010. All rights reserved.

2010-01-07T15:21:00.004-05:00

Dramatically update your kitchen in six hours or less with six projects

(ARA) - With the amount of time you spend in your kitchen, why settle for out-of-date features and decor - especially since it is easy to give your kitchen a 180-degree makeover? Try these six simple projects, and in no time at all you'll have a kitchen where you will want to spend more time.

Home sweet kitchen

One of the easiest ways to make your kitchen feel warm and inviting is with updated lighting. And, luckily it can be an easy and quick project with the many conversion kits and lighting fixtures available today. Start by swapping any cold and unstylish fluorescent tube lighting with more decorative chandeliers or flush-mount lighting to flood your kitchen with ambient light. Next, fill in shadowy areas - or highlight objects you admire - with spot lights, such as recessed cans or dangling pendant lamps. Soon your kitchen - and your mood - will be glowing.

Time: Two to six hours depending on the number of fixtures.

Update your sink with an eco-friendly faucet

When it comes to your kitchen faucet, you may think - it's not broke, why fix it? But as a workhorse and focal point of your kitchen, that shouldn't be the case. Instead, update your faucet with a functional, stylish and environmentally friendly model. Available at Lowe's, options such as Anabelle or Dorsey Eco-Performance kitchen faucets from Moen offer pullout/pulldown functionality with three unique settings - eco-performance stream or spray for tasks like washing dishes that require a constant, yet low-water flow, or a full-flow option when filling a pot or pitcher. This simple kitchen update can yield up to a 32 percent water savings - while also adding exquisite styling in to your kitchen. For more information about the Anabelle or Dorsey Eco-Performance faucets from Moen, visit moen.com or call (800) BUY-MOEN (800-289-6636).

Time: Ninety minutes.

Shortage of storage

With so many gadgets, appliances and, don't forget food, kitchen storage can quickly become sparse. Start by organizing your current storage, purging any items that you haven't used in years. Next, if you have room, add a kitchen island or additional cabinets to provide more storage and work room. Or, if space or cash is limited, search your local flea market or online at Craigslist.com for alternative options, like a vintage china cabinet or an antique overhead pot rack to house all your necessities and reduce clutter.

Time: Six hours.

Add sass with a backsplash

Tired of cleaning food or grease splashes from your kitchen walls? Spruce up drab or dirty-looking kitchen walls with a dynamic backsplash on walls near the sink or stove top. Hundreds of styles, textures and patterns can increase the sophistication in your kitchen and make it easier to clean. Plus, with step-by-step video instructions on how to apply the tiles available at Lowe's Creative Ideas Web site it's as easy as one, two, three.

Time: Six hours.

Getting a new grip on cabinets

Over time, cabinets made of wood or metal materials can deteriorate if they're not properly maintained, making your kitchen look run-down or aged. Cleaning your cabinets with soap and water, then polishing, is the best way to make them look new again. To combat grime, fingerprints and other messy substances, apply cabinet cleaner such as Liquid Gold to a cloth and buff cabinets until they shine. Replacing old handles and hardware on your cabinets with a new stylish design and finish to match your new faucet will add the final polished look to your kitchen.

Time: Two to five hours depending on the number of cabinets.

Advance the technology

Don't limit your technology to your phone and your TV - transform your kitchen with innovative appliances. Whether it's a microwave that fits in a drawer, a refrigerator with a TV, an oven that you can program or a customized wine and beverage cooler, adding new upscale appliances can take enjoyment in your kitchen to a whole new level. However, if these high-end appliances are out of your budget, upgrade your current appliances with new energy-efficient models in the latest finishes.

Time: Two hours shopping plus waiting on deliveries.

In no time at all you can easily turn your kitchen from drab to fab with just a few simple projects.

Courtesy of ARAcontent
Photo ©Teresa Butler 2010. All rights reserved.

2010-01-04T14:01:00.003-05:00

Rebates for Appliance Buyers in 2010

The 2010 plan to encourage energy efficiency is the government rebate for appliance buyers. The plan lets people swap their old appliances for new energy-efficient models at very low prices. Here are some things to keep in mind:

· State plans vary. For state by state specifics, check out the state-by-state rebate program.

· Is it really a deal? It may not be worth replacing appliances that are fewer than seven years old, but older models can represent a real deal. Joe McGuire, president of the Association of Home Appliance Manufacturers, says a 20-year-old refrigerator uses three times as much power as a new Energy Star-approved model.

· Buy now before it ends. There is only about $300 million available and some states got more money than others. It is expected to run out fast.

2009-12-28T14:34:00.005-05:00

5 Home Remodeling Trends for the New Year

Remodeling and decorating trends in 2010 are likely to reflect the fact that many home owners are settling in for the long haul. Here are some ideas for updating homes and gardens from decorators and leading real estate practitioners:

Environmentally sensitive furniture. Natural fibers, sustainable woods, and recycled products are key to attracting environmentally concerned buyers.

Classic neutral colors. Deep gray browns and gray blues, muted beige, and chalky white will be particularly popular shades, Pittsburgh Paints predicts.

Backyard gardens. First Lady Michelle Obama led the way in 2009 when she installed one at the White House.

Backyard living. Wood-deck additions offer an 80.6 percent payback, according to the annual Cost vs. Value Report from Remodeling magazine and REALTOR® magazine. Simple fire pits and outdoor fireplaces also will be popular, trend-watchers say.

Made in America. As more people feel compelled to support local employment, U.S. manufactured products and antiques will become more popular, says Patricia Shackelford, author of design blog, Mrs. Blandings.

2009-11-10T12:36:00.000-05:00

Google Maps Expands Real Estate Info

Google has been improving the usability of real estate information in its Google Maps function.

Users can now select the “real estate” option from the “more” button on the top right of any Google Map. They’ll automatically see balloons on the maps of listings, as well as a pop-up real estate refinement panel on the left.

From there, they can refine what they are searching for by checking the boxes for renting or buying, apartment or house, as well as price range, square footage, numbers of bedrooms and bathrooms, and foreclosure listings. Google is also inviting real estate practitioners to list homes on Google Maps.

Source: eWeek, Clint Boulton (10/30/2009)

2009-11-10T12:30:00.001-05:00

New Rules to Clarify Fees

New regulations from the Department of Housing and Urban Development will require that closing costs be spelled out on a revised and consumer-friendly version of the good-faith estimate form that borrowers are supposed to receive within three days of applying for a mortgage.

These rules will take effect Jan. 1, 2010.Fees are divided into three categories:

Fees that cannot increase from upfront estimates to closing, including lender or broker's mortgage origination, processing, and underwriting charges, as well as lender or broker’s “points” based on the interest rate quoted and local transfer taxes.
Fees that can increase as much as 10 percent from upfront estimates, including services such as appraisals, title insurance, and recording fees from local governments.
Fees that can increase without limit because the amount is difficult to predict in advance, including home owners insurance, daily interest charges on the loan, and initial deposits by the borrower into an escrow account.

The new HUD-1 form will allow the borrower to easily compare what they were told the settlement fees will be with what they actually are at closing.

Source: The Washington Post Writers Group, Kenneth R. Harney (11/06/2009)

2009-10-28T21:19:00.000-05:00

Senate Dems on Board with Credit Extension

Senate Banking Committee Chairman Chris Dodd (D-Conn.) says Senate Democrats have agreed to extend the first-time home buyer tax credit. The latest version extends the program to home sales signed — not closed — by April 30. Purchasers would have another 60 days to close the sale. The credit will also be expanded to include so-called step-up buyers who have lived in their current home for at least five years.

The credit would be cut nearly 10 percent to a $7,290 cap. Income eligibility for first-time home buyers would stay the same, but it would rise for step-up buyers to $125,000 for individuals and $250,000 for couples.

Source: Bloomberg News, Dawn Kopecki and Ryan Donmoyer (10/27/2009)

2009-10-19T19:30:00.003-05:00

Things Condo Buyers Should Consider

Buyers who are considering the purchase of a condominium should inspect the health of the home owner’s association before they close.

The seller should provide the buyer all financial documents relating to the association in time for an attorney for the buyer to review them before closing.Here’s some advice from Leonard Baron, professor of finance at San Diego State University, about the information that the seller should consider:

Does the association budget include money for operating expenses such as water, lights, elevator maintenance, and landscaping?

Is there extra money set aside in a reserve fund for long-term maintenance? If there is an outside reserve study, that should be provided. If not, there should be adequate money in the reserves right now to cover 50 percent of the estimated cost of repairs over the next 30 years.

Do the condo’s expenses exceed revenues due to a high foreclosure rate or other reasons that owners’ debts go unpaid?

If there is a shortfall, does the association have a plan besides cutting back on services for making it up?

2009-10-16T14:41:00.000-05:00

Construction Should Pick Up in 2010

If mortgage rates stay low and the home buyer tax credit is extended, single-family housing starts should increase 30 percent in 2010, predicted the McGraw-Hill construction forecast released Friday. The overall value of construction starts is expected to rise 11 percent to $466.2 billion in 2010, according to the survey.

This year has been a tough one for the industry, with the value of starts expected to decline 25 percent to $419 billion through December.

Source: The Wall Street Journal, Dawn Wotapka (10/16/2009)

2009-10-13T17:01:00.001-05:00

Banks Making Short Sales Tougher

Banks are backing away from short sales, forcing sellers to pay extra at closing or demanding a promissory note for the amount due. One-third of borrowers owe more on their mortgages than their properties are worth, according First American CoreLogic.

When their situations were really tough, most banks preferred short sales because they were their best opportunity to get the most money back. But with an improving economy, and because the losses on many of these properties have already been written off the books, banks are increasingly reluctant to negotiate a short sale.

Today, banks demand 9.5 weeks to respond to a short-sale request, compared to 4.5 weeks a year ago, according to research firm Campbell Communications. Their reluctance is frequently stymieing sales and frustrating real estate practitioners.

"It drives me up a wall," says Robert G. Hertzog of Summit Home Consultants in Phoenix. "[The bank is] holding my client hostage.

"Source: BusinessWeek, Christopher Palmeri (10/09/2009)

2009-10-12T12:11:00.002-05:00

Bathroom upgrades pay-off

More than 80 percent of new single-family homes have at least two bathrooms, which occupy an average of 300 square feet of floor space, or 12 percent of the total area, according to a study by the National Association of Home Builders.

The home builder's study reports a major return on value for extra bathrooms: "When the number of bathrooms is approximately equal to the number of bedrooms, an additional half-bath adds about 10 percent to the home's value and one additional bath adds about 19 percent."

A mid-range bathroom remodel, which costs $10,500 on average nationwide, repays a homebuyer at least 100 percent of the outlay when the property is sold, the home buyer study concludes.

Fall Maintenance Tips

2009-10-08T12:17:00.001-05:00

Fall Maintenance Tips

Shared via AddThis

2009-10-07T13:46:00.000-05:00

Buyers Are Cutting the Fluff, Architects say

Home buyers are scaling back, according to a quarterly survey by the American Institute of Architects, choosing energy-saving amenities over recreational ones.

Two-thirds of architects say their clients want better insulation, including double- and triple-glazed windows, water-saving devices, and solar panels. The most popular bonus room is a home office, with 46 percent of architects saying these rooms are gaining in popularity.

The architects identified a sharp decline in the demand for high-end kitchens and baths and said that there was also less interest in game and media rooms and in-law suites.

The AIA said residential billings, a leading indicator of activity, rose to 38 in the second quarter, up 20 points from the first quarter of 2009.

Source: Reuters News (10/06/2009)

2009-10-06T16:15:00.004-05:00

A Historic Time to Buy

Young people just starting to invest and buying their first homes are potentially the winners in this recession.

First-time homebuyers, most between the ages of 25 and 45, accounted for about 45 percent of home sales from January through July 2009, according to the National Association of REALTORS®

"This is a historic time," says George Jaramillo, a 35-year-old business analyst in Atlanta, who recently bought three homes, two of them foreclosures. "It's a great opportunity to make some great gains in the future."

A study by investment company T. Rowe Price points out that investing when prices are low can result in amazing gains. For instance, between 1970 and 1990, the annualized rate of return for the S&P 500 was 11.5 percent.

"We need to be shouting from the rooftops that this is not the time to get out of the market if you're young," says Christine Fahlund, a senior financial planner with T. Rowe Price. "This is the time to be in the market."

2009-10-05T13:25:00.000-05:00

Builders Cut Back on Incentives

Home builders are cutting back on the freebies they’ve been tacking on new homes for the last couple of years to woo buyers.

The reason is simple: Demand is almost back in sync with supply. According to Jeffrey Laverty, analyst with research firm Oscar Gruss & Son, new-home inventory has declined from 12.4 months in January to 7.3 in August, close to the six-month mark considered standard.

While eliminating incentives like free cars and free pools, some builders are continuing to offer to pay points on mortgages and discounts on upgrades—“Incentives that make sense,” says Laura VanVelthoven, Hovnanian's corporate vice president of marketing and sales.

Source: The Wall Street Journal, Dawn Wotapka (10/05/2009)

2009-10-05T13:05:00.003-05:00

Bathroom Upgrades Pay Off

The home builder’s study reports a major return on value for extra bathrooms: "When the number of bathrooms is approximately equal to the number of bedrooms, an additional half-bath adds about 10 percent to the home's value, and one additional bath adds about 19 percent."

A mid-range bathroom remodel, which costs $10,500 on average nationwide, repays a home buyer at least 100 percent of the outlay when the property is sold, the home buyer study concludes.

2009-08-06T11:38:00.001-05:00

Weekend home upgrades: fast, affordable fix-ups

(ARA) - With today’s falling home prices, one family’s well-worn dwelling can quickly become another’s dream “starter” home. Interest rates are at historic lows, meaning buyers can get more house than they could a year ago for the same monthly mortgage payment, according to the National Association of Home Builders.

But affording a new home is one thing; affording to remodel it is another. Here are some cost-efficient upgrades that are easy enough to accomplish in a single weekend.

Start at the front door

Whether you’re fixing up a newly purchased home or upgrading your current home to attract a buyer, nothing creates a better first impression than a new front entry door. Installing a new entryway door increases the perceived value of a home by up to $24,000, according to a national valuation study conducted by Therma-Tru and TNS, an independent research organization.

Beyond adding curb appeal to your home, installing an energy-efficient door is an important consideration, if you’re fixing up an older home. Houses built before 1939 use about 50 percent more energy per square foot than those built after 2000, according to a Time magazine report. The main culprit is tiny cracks and gaps that can expand over time and let in more outside air.

One way to get both beauty and energy efficiency is to choose a door from the Therma-Tru Fiber-Classic Mahogany Collection. The collection includes new styles perfect for homes with popular architectural designs including Craftsman, bungalow, arts and crafts, mission and cottage motifs, and offer the high style, rich look and warmth of Mahogany hardwood, but at a value price compared with premium wood doors. Each door is constructed of durable fiberglass, is ENERGY STAR qualified, provides five times the insulation of a wood door and will not rot, split, crack or rot like wood, or rust, dent or ding like steel. The doors create the tightest seal possible, creating an energy efficient envelope that stabilizes interior temperature and helps you decrease your home’s energy costs.

As an added value, homeowners who purchase and install certain styles of Therma-Tru doors may be eligible for a tax credit of up to $1,500 per household through the American Recovery and Reinvestment Act of 2009 (also known as the Economic Stimulus package). Visit www.thermatru.com for more information.

Set the stage with lighting

Upgrading the interior lighting can also make a big difference in your home. Designers often use “layered” lighting -- a combination of ambient, task and accent lighting -- to create a quality of light that not only looks and feels better, but is also better-suited to activities that can take place in any given room.

While you may not be in a position to install an entirely new lighting system in your home, there is a simple and affordable upgrade within easy reach. Light dimmers are available for as little as a few dollars at local home centers and hardware stores and can be installed by any do-it-yourselfer in minutes. (Just remember to turn off the circuit breaker before starting.) Lutron Electronics offers a variety of models to suit any decor or budget, and the manufacturer’s technical support team is available 24 hours a day, seven days a week, to walk you through the installation process. Just go to lutron.com or call (800) 523-9466.

According to the Department of Energy, artificial lighting consumes almost 15 percent of a household’s electricity use. Dimming an incandescent bulb by just 15 percent reduces energy use by 15 percent and doubles the life of the bulb. The more you dim the light, the more energy you save.

Make a splash with color

Adding a new coat of paint is another easy, inexpensive upgrade. Depending on the shade you select, your room can be dramatically different or simply refreshed.

The paint you choose can also keep your home looking fresher over time. For example, Duration Home Interior Latex from Sherwin-Williams is perfect for high-traffic hallways, bathrooms, kids’ rooms and anywhere long-wearing durability, antimicrobial properties and stain resistance is a must. It’s tough enough to withstand repeated cleanings without visible wear, no matter what shade is selected (choose from 1,200 colors, including deep accent shades).

As you add color, add a splash of sustainability, too. A low-VOC (Volatile Organic Compound) and low odor paint such as Duration Home can help ensure better indoor air quality, and it’s manufactured using sustainable processes. For paint tips and ideas visit sherwin-williams.com or your neighborhood Sherwin-Williams store.

Courtesy of ARAcontent

2009-08-04T15:04:00.000-05:00

6 Reasons Why Some Homes Sell

Why do some houses sell and others don’t?There’s no ultimate answer to this question, but Tribune Media Services columnist Ilyce Glink has a theory. Here are her six top reasons properties linger on the market:

*Lousy pictures on the Web.
*Priced too high for the neighborhood.
*Blah interior; ho-hum landscaping.
*Little online marketing and hard-to-find MLS listings.
*Low commissions. Practitioners make sure their customers see properties that offer a payoff.
*Miserable maintenance, including ceiling stains, leaky faucets, and ancient furnaces.

Source: Tribune Media Services, Ilyce Glink (08/02/2009)

2009-07-31T12:04:00.001-05:00

Top Ways to Improve Curb Appeal

When a potential buyer is in the neighborhood, it’s important for your home to look the best on the block. Here are some tips for boosting curb appeal and capturing the attention of passersby.

1. Mow the lawn and plant sod where grass is sparse.
2. Trim tree limbs that are close to the roof and power lines.
3. Weed flower beds and lay mulch.
4. Store tools and equipment in a shed or garage.
5. Add color by planting flowers.
6. Clean your windows.
7. Install lighting that illuminates the driveway and entrance of your home.
8. Wash sidewalks and driveways with a pressure washer.
9. Apply a fresh coat of paint to the front door.
10. Clean siding and apply neutral paint to the exterior of your home.

2009-07-30T15:22:00.003-05:00

Smart strategies to increase home sale profits

(ARA) - The proposition of selling a home is getting better with each passing day according to a recently released report from the National Association of Realtors. If you need to sell your home, a few smart strategies can help you increase your profits.

A number of real estate pundits are pointing to the recent decline in home inventory and the fact that interest rates have increased on the 30-year fixed mortgage as a positive endorsement of a healthier housing market.

Joanne Sebby, a licensed real estate broker in Chicago, and operator of a local Two Men and a Truck moving franchise, believes she’s benefitting from what could be the start of a real estate "bloom," if not a full "boom."

"Bargain hunters are beginning to make moves on homes that are still way undervalued’’ Sebby says. "The key for sellers is to get creative in marketing your home’s offerings so you can become one of those homes that get a look, and hopefully sell your house in a reasonable amount of time."

While the real estate outlook is the best it’s been in recent memory, home loans are still more difficult to come by and home values are down an average of 20 percent, according to the NAR. It’s likely that if you are selling your house today, you’ll likely do so at the cost of higher profits that you may have realized in healthier markets.

Regardless, Sebby suggests there are a number of creative ways home sellers can mitigate their losses on the sale.

Sebby suggests sellers need to think of their bottom line when selecting service companies in order to maximize profits on their home, and consider pitching in to keep costs down.

"Determine what budget you have to work with and be up front with the people providing you with estimates," Sebby says. "I’ll often counsel people who call our moving company to maybe box and label everything themselves, or have all the boxes collected in the room closest to the front door. If there’s a number we have to work with, we’ll make suggestions on how to make it work to suit their needs."

Sebby suggests using the same tactics with home inspectors, painters or other service personnel.

"Do a little research and find what portion of the work you can comfortably do yourself. If you’re saving money along the way it’s going to impact your profit on the house. A little bit here and there can really add up."

Brig Sorber, president and chief executive officer of Two Men and a Truck -- the nation’s largest franchised moving company -- believes the current housing market provides more opportunity than risk.

"As a business owner, you look at your operations a little closer and ideally come away with a clearer understanding of what your company needs to do to stay competitive," Sorber says. "The same principle applies to homeowners looking to sell. In an optimal market, a buyer may just scan the Internet, find a local mover and sign on the dotted line. Today’s customer is more aware; they’ve done competitive research on what to expect from a legitimate moving company, and that benefits those of us who value long-term relationships with our customers."

Chances are, even sellers with the best intentions won’t realize the full value of their home in today’s market. However, as Sebby suggests, there’s no harm in optimizing your profits with a little extra effort and a do-it-yourself approach.

Courtesy of ARAcontent

Selling a Home

2009-07-30T12:53:00.001-05:00

If you are considering selling a home in the Central Ohio area be sure to see this presentation.

Selling a Home

View more presentations from Teresa Butler.

Changes That Sell, Changes That Don

2009-07-29T22:42:00.001-05:00

Changes That Sell, Changes That Don

Shared via AddThis

2009-07-20T11:51:00.000-05:00

Housing Experts: Now Is a Perfect Time to Buy

Don’t forget to remind potential buyers of something that is obvious to real estate professionals:

Now is the time to buy, but that opportunity may be slipping away. For people who have a job and money, a dream house is within reach, writes Marc Roth, founder of Home Warranty of America and a columnist for BusinessWeek. He points out that mortgage rates remain low, prices are still at historic lows, and the government is offering incentives for first-time homebuyers.

He also adds that the inventory of homes to buy is still large, but it is shrinking. According to the NATIONAL ASSOCIATION OF REALTORS®, the housing inventory peaked in November 2008 at an 11-month supply. At the end of May 2009, it had fallen to a 9.6-month supply.

Roth says anyone who dallies will miss a good opportunity to buy a first home at a terrific price or go shopping for a move-up property that is a great buy.

Source: BusinessWeek.com, Marc Roth (11/17/2009)

2009-07-07T12:10:00.001-05:00

Walk-in Showers Gain in Popularity

Home owners are choosing showers over tubs, despite the long-standing notion that it is important to have a tub for resale value.

"We're definitely seeing a trend toward walk-in showers versus tubs," says Katie Campbell, sales manager for the Heritage of Palatine, a Chicago-area development where homes are priced from $221,900. "We used to do a lot of big soaking tubs with shower stalls in the master bathroom, but we had a lot of people eliminate the tub because they wanted a bigger shower.

"Having at least one tub in the house is still important because some buyers want them, insists Kathy Dames-Mattox, an associate with ReMax of Joliet. But she advises homeowners not to spend a lot of money on whirlpool tubs. "I don't see whirlpool tubs as being a big deal anymore," Dames-Mattox says. "Everybody who adds one says they never use it.

"Source: Chicago Tribune, Allison E. Beatty (07/03/2009)

2009-05-06T12:36:00.001-05:00

Five Maintenance Issues Owners Shouldn't Ignore

Consumer Reports magazine advises home owners not to put off important maintenance projects, noting that waiting until the economy rebounds could end up making the repairs more costly while putting a family's health at risk. The magazine identifies five crucial maintenance issues:

Check the gutters: Clogged gutters, broken fasteners and separations where the gutters meet the fascia board will lead to roof leaks if they haven’t already.

Inspect the roof: Cracked, curled and mussing shingles mean a roof is nearing the end of its useful life. Cracks around chimneys, skylights, and roof valleys can also suggest the roof might be leaking.

Look for bugs: Termites and carpenter ants can bore through a home in a few short years. Probe the sill plate on top of the foundation with a screwdriver to check for rotten wood. Also look for carpenter ants and termites along windowsills and walls.

Avoid mold: Mold and mildew can cause musty odors, dank air, and make residents sick. Check under carpets and around windows for visible mold or mildew.

Don’t ignore cracks: Foundation cracks wider than 3/16 of an inch can be a problem. These require examination by a structural engineer.

Source: Consumer Reports (05/04/2009)

2009-05-05T19:44:00.002-05:00

Fast Fixes Can Help Sell a Home

It’s not rocket science: Houses that look fresh and attractive sell faster than beat-up homes.

Here are some cheap tricks from Money Magazine for boosting appeal:

● Buy a new mailbox, house numbers, doorbell, and knocker: $200

● Green the grass with nitrogen-rich fertilizer: $50 to $200, depending on the lawn size

● Edge and mulch the flowerbeds: $300 to $600, depending on the number of beds

● Replace the bathroom faucet: $300

● Install beadboard over dated bathroom tile: $800 to $1,000

● New paint: $60 to $100 per room, if homeowners do it themselves

● Replace switchplates and outlet covers: 50 cents each

● Install stone tile over existing Formica countertops: $500 to $1,000

Source: Money Magazine (05/04/2009)

2009-05-04T13:28:00.002-05:00

What's Your Home Worth?

Market value is the main concept you must understand when determining the value of your home. But what is it and how it can help you price your home?

What is market value?

Market value is the amount prospective buyers are willing to pay at the time homeowners are ready to sell. The best way to find out the market value of your home is to ask me for help. I can ensure that you get the best price by providing and discussing with you the Comparative Market Analysis (CMA).

What is a CMA?

The CMA will include homes in your area that are currently on the market, expired from the market, pending a sale and already sold within the last three to six months. Of course, the best indicator of your home's value is the price for similar homes in your area that have already been sold. The comparison is based on the proximity to your home and the similarity of characteristics such as lot size, square footage, number of bedrooms and baths, etc.

It's a good idea to sit down with me to discuss how each factor of the market analysis affects your home's value. You can consider the current listings to identify the competition, recently sold homes to indicate what buyers are willing to pay, homes with a sale pending to show the current demand and expired homes to suggest what buyers are unwilling to pay.

What are the dos and don'ts?

Do obtain the CMA and discuss the findings with me. Don't price your home based on factors not affecting the market value. Those factors include how much money you need to buy your next home, how much you paid for your current home, how much you paid for home improvements, the value of similar homes in different communities, area appreciation statistics, the cost to build the same home today and personal attachment.

Discovering how much your home is worth is the first step to ensure that your home is priced correctly. So, take the time, do the research, talk with me, and together we can decide what the best price is in today's market.

Contact me for more information.

2009-04-22T15:22:00.001-05:00

7 Tips to Avoid the Vacant Home Look

Selling a home that is vacant can be harder than selling a lived-in home, experts say. Here are some ideas from Pam and Dave Pettigrew, certified residential specialists with Prudential Rocky Mountain in Fort Collins, Colo., on what practitioners and sellers should consider to protect an empty property and get it sold.

Give the house a lived-in look.
Get a neighbor or family member to make the house look occupied by parking a car in the driveway, opening and closing the drapes and taking in any mail.

Groom the yard.
Use a lawn service during the summer to keep the grass cut and a snow removal service in the winter to scrape the walks and driveway.

No outstanding nicks.
Hide the effects of missing furniture. Paint and replace rugs so there are no faded spots or blemishes on the walls. Cover accent paint that alone looks odd.

Leave some furniture.
A few chairs, tables, lamps and beds (or empty mattress boxes with spreads) give buyers a sense of space.

Keep the utilities on.
Set the thermostat at a comfortable level during the winter and summer.

Hire a maid.
Make sure the home remains spotless.

Check the homeowner’s policy.
Understand the coverage when the home is vacant.

Source: Coloradoan, Pam and Dave Pettigrew (04/12/09)

2009-03-30T17:56:00.003-05:00

6 Reasons Why It's Still a Good Time to Buy

The housing market is looking healthier. Here are six reasons why now is the time to jump into the market.

1. Uncle Sam is willing to help. First-time buyers (defined as anyone who hasn’t owned a home in the last three years) are entitled to a maximum $8,000 tax credit; interest rates are at record lows; and the Federal Reserve is doing its best to make mortgage loans available. (Sign up for a Webinar to learn more about the home buyer tax credit)

2. People have to live somewhere. About 800,000 new households are formed each year in this country, ensuring that the housing market will tighten, even if the economy doesn’t soar.

3. Borrowers leverage their investment. If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 down on a home and its values increases 10 percent, you’ve made $10,000.

4. When prices come back up, you’ll have instant equity. In parts of the country where foreclosures have driven down prices, better times will mean the price of the home you buy will rise rapidly.

5. Mortgage costs stay the same. If you get a fixed-rate mortgage, the monthly payment stays the same – while everything else, including rent, goes upward.

6. You own it. There is something comforting in the notion that your home is your own. You can paint it any color you want, let the dog run in the back yard and hang a swing for the kids in the front.

Source: The Wall Street Journal, June Fletcher (03/27/2009)

2009-03-26T10:44:00.002-05:00

First-Time Homebuyers are in Luck

With Spring right around the corner, you may feel like it's time for a change. Have you recently considered transitioning to a new home? This is one of the best times to purchase the home of your dreams. Interest rates are low and first-time homebuyers are in luck. Congress recently passed an act which includes a tax credit for first-time homebuyers of up to $8,000.

Are you a first-time homebuyer? You may be classified as a first-time homebuyer and not even know it. If you haven't previously owned a home, you fall into the category of first-time homebuyer. But did you know that if you haven't owned a principal residence in the past three years, you also constitute as a first-time homebuyer? It's true. If you fit either of these categories, the government has created a tax credit that you can take advantage of if you choose to purchase between Jan. 1 and Dec. 1, 2009.

The government is offering lesser of 10 percent of the cost of a home or $8,000 to qualifying first-time homebuyers in the form of a refundable tax credit. That means, if you owe $5,000 in taxes, you will receive a check for $3,000. If you don't owe any taxes, you may qualify to receive the full $8,000 credit. If you're lucky enough to have the government owe you money in taxes—let's say $1,000—then you could potentially receive a credit of up to $9,000.

Qualifying for this tax credit may be easier than you think. If you're a first-time homebuyer, here are a few things to consider. First, a qualifying home must be a single-family, primary residence. This can include condos, co-ops and townhouses. Secondly, your income has a bearing on whether you're a fit for this credit. The full amount of credit is available for individuals with gross incomes of no more than $75,000 (single) or $150,000 (married). The credit phases out above those caps.

The best part about this credit is that there's no repayment as long as you don't sell the home within three years of purchase. If you choose to do so, the entire amount of credit is due back to the government at the time of sale. But this only applies to homes purchased in 2009.
If you fit these qualifications, then congratulations! You're on your way to a great real estate deal. Contact me today to take advantage of this great offer.

2009-03-05T13:39:00.003-05:00

Create a House Hunt Checklist

The HomeSpace is one of the first things people notice when touring a home. Are there enough bedrooms to accommodate the household? How spacious are storage closets? Square footage and the practicality of the floor plan are elements that demand major consideration. Is there a garage or a basement? These are some standards you should have set in your head before beginning your home search, but it doesn't hurt to add these elements to the checklist.

After you've evaluated the space, take time to note the condition of the home. Some suggest breaking it down further into interior and exterior conditions. Look specifically for dampness and odors in the basement, age and condition of the roof as well as the functionality of gutters and downspouts. Finally, don't forget to make note of extra perks such as a fireplace, great landscaping, fences, a patio/deck, screens and storm windows as well as overall energy efficiency.

The Neighborhood

One of the most common things homebuyers look for in a neighborhood is safety. Individuals want to feel secure in their new surroundings. Other high-ranking aspects include: traffic, noise level, parking and zoning restrictions. How close are you to police and fire stations, the hospital or schools? Does the neighborhood provide snow removal or trash services? Don't forget to investigate these issues by creating a physical or mental checklist.

Schools

For those who have children, what school district you choose is an important consideration. Feel free to further research the reputation of the schools, quality of teachers and achievement test scores for students attending these schools. Other considerations include class sizes, busing distance and the age and condition of the buildings that your children could potentially attend. Taking the time to meet with faculty, tour the school and talk with parents of pupils who attend the school will help you make an informed decision.

Convenience

Location is becoming a greater concern for many homebuyers due to increased gas prices. When looking at a home, take the time to figure out how far you would be from the grocery store, schools, child care, shopping, highways, etc. Is there public transportation in your area? How far are you willing to commute each day? These are some things you want to ask yourself as you evaluate the location of a home.

Taking the time to look at all aspects of a home—from the actual structure to the neighborhood, schools and location will help you make a more accurate and informed decision when choosing a home. Make your own checklist or go the Real Living Buyer Checklist for a pre-made list that reflects the aspects previously discussed. For additional questions on your home search, contact me today.

2009-02-18T12:54:00.001-05:00

5 Tips for Homebuyers Seeking a Mortgage

Here’s a warning for potential borrowers: Nervous lenders have tough new rules and are paperwork crazy.

"Borrowers are going to have to prove they are the borrower they say they are," says Keith Gumbinger, vice president of HSH Associates, a mortgage-industry publisher in Pompton Plains, N.J.

Gumbinger says homebuyers should consider these things before they apply for a loan.

1. Down payments are critical. Borrowers should expect to put down at least 10 percent for a “conforming loan” – a mortgage that Fannie Mae and Freddie Mac will purchase.

2. Credit scores count. A 720 on the 850-point FICO rating scale will get a borrower access to the best rates. Rich Bira, branch manager of FCM Direct Lender in Chicago, says: "A score between 720 and 739 gets 0.125 percent added to the rate, a score between 700 and 719 gets 0.375 percent added to the rate, and a score between 680 and 699 gets 0.5 percent added to the rate.”

3. Consider VA and FHA. Borrowers without down payments or with less than stellar credit scores should consider these government-insured loans offered through the Federal Housing Administration of the Veterans Administration.

4. Unearth the records. Before applying, borrowers should organize tax, banking and other records that prove income, savings and debts. They should also expect to be patient about what may seem to be endless requests for information.

5. Get rid of debts. Limiting debts, including what borrowers expect to pay for the mortgage, to less than 43 percent of gross income is important.

Source: Chicago Tribune, Mary Umberger (02/15/09)

2009-02-10T13:25:00.001-05:00

HINTS FOR HOME SELLERS

Staging Your Home In
A Down Economy

(NAPSI)- It's a tough time to try to sell a house, but Realtors say there are inexpensive ways to stage your home that might make for a faster sale. In fact, the U.S. Department of Housing and Urban Development reports that a staged home will sell at a higher price than an unstaged home. And a recent survey by the Real Estate Staging Association reports that staged homes sell much faster than unstaged homes.

Home staging is the act of preparing your home and its contents for sale, with a special emphasis on presentation and appearance.

According to Realtor.com, the first thing you want to do is clear out the clutter. If your house holds too much furniture, your closets are overflowing, your kitchen and bathrooms are crowded or you have family photos and knickknacks collecting dust, it's time to pack them up. You also might consider donating unused items to charity or even selling them at a tag sale or on eBay for some fast cash.

"This is also a good time to take a close look at your closets," says HGTV and CedarSafe home improvement expert Pat Simpson. "A cedar-lined closet in the foyer, master bedroom or secondary closet will create a great look and provide a relaxing, cedar scent that will make a positive first impression."

Cedar planks or panels will also protect the items you store away. They'll prevent silverfish and moths from damaging your expensive wardrobe or even from eating books or important papers. They work with any closet organization system, or even metal or cedar shelving. It'll cost a few hundred dollars to line a closet during a weekend project. Learn more at cedarsafeclosets.com.

While the cedar will provide a fresh scent, Realtors say be sure to bathe your pets and deodorize their living areas, shampoo your carpets, clean your drapes and always empty trash cans and recycling bins.

Another suggestion: "Curb appeal is critical," says Simpson. "A fresh coat of paint using neutral colors, plus neat landscaping, will go a long way."

Visit http://cedarsafeclosets.com/ for more information.

A cedar-lined closet will make a positive first impression.

2009-02-09T22:52:00.000-05:00

HINTS FOR HOMEOWNERS

Tips On Saving Your Home From Foreclosure

(NAPSI)-There's hopeful news for homeowners who fear they may be facing foreclosure on their home.

That's because there are practical steps they can take-such as a new refinancing program from the federal government-to resolve the problem before it gets to the point where the lender takes over their home for nonpayment.

Remember, lenders do not want your house. That's one reason there are options available to help borrowers through difficult financial times.

Here are some tips from the experts at the Federal Reserve Board:

• Don't ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

If you are unable to make your mortgage payment, contact your lender as soon as you realize that you have a problem.

• Open and respond to all mail from your lender. The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include an important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

• You can contact a HUD-approved housing counselor in your area. The U.S. Department of Housing and Urban Development (HUD) can connect you with free or very-low-cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and help you in negotiations with your lender if you need this assistance.

One option may be to participate in a new program, created by Congress, that is intended to help borrowers at risk of default and foreclosure to refinance into more affordable loans. It's called HOPE for Homeowners, or H4H.

If you are having trouble making your mortgage payments, this program may allow you to refinance your loan into a new 30-year fixed-rate loan with lower payments. All HOPE for Homeowners loans are 30-year fixed-rate mortgages insured by the Federal Housing Administration (FHA).

The program began on October 1, 2008 and will end on September 30, 2011.

To learn more, call (800) 569-4287 or TTY (800) 877-8339, or visit the Web site at www.hud.gov/hopeforhomeowners/index.cfm.

If you are unable to make your mortgage payment, contact your lender as soon as you realize that you have a problem.

2009-02-02T11:57:00.003-05:00

Picking the Perfect Neighborhood

Community
Check out the local markets, parks, shops, restaurants and community events. Attending events will allow you to get a feel for the area and your potential neighbors. Ask store owners and community members what they love about the neighborhood.

Crime
Check with the local police department or state Web site for crime statistics in the area. Sites like Family Watch Dog and Spot Crime are great places to start.

Transportation
Consider how you will get around. Is there public transportation? Do most people drive? Is it safe to ride a bike? How far will your commute be to work? Time it during rush hour to make sure. What about grocery stores, restaurants, malls, pharmacies and doctor's offices? You may not want to drive 20 minutes for a loaf of bread or to refill your prescription.

Schools
Research the local school districts. Are public and private schools available? Do they offer extra curricular activities? What is the cost per student? If your child will ride a bus, how long will it take to reach school grounds?

Traffic and Noise
Walk around the community at different times of the day as well as during the evening. Are there railroads, airports or entertainment establishments around? Where are the highways located? Have sound barriers been constructed?

These are all important aspects of a neighborhood to consider. Ask for information from your professionally certified Realtor®, and use the internet as a resource. Your Realtor® should be able to give you great insight into the area, and provide you with the tools you need to make your decision.

2009-01-28T12:16:00.001-05:00

Listing Your Home Online

Tech-savvy Generation X and Yers are leading the 87 percent of buyers who use the Internet to search for homes. The Internet is the fastest-growing venue for consumers to learn and gain information about the real estate industry. With 87 percent of the market surfing the Web for a new home – you'll want your listing on there, so ask your real estate agent which marketing tools he or she will use to list your home, and make sure the Internet is at the top of the list. The following tools and strategies addressed in this column are essential in marketing a home, so make sure your agent is using all of these necessary tools.

Let's start with digital marketing and the concepts associated with it: online marketing, search engine optimization (SEO) and permission-based e-mail marketing. Agents who use online marketing strategies will typically post your listing on the brokerage's Web site and on his or her personal site. Look for agents who update their sites often. There are several advantages to Web listings. For example, they offer quality color photos of your home, detailed property information, virtual tours, floor plans and school and community data.

SEO is the process of increasing quality web traffic to a site by way of search engines such as Google, Yahoo and MSN. Agents that frequently update their Web sites with pertinent content and listings will have better SEO, which increases the number of views of your listing. This important component of digital marketing is worth asking your agent about.

E-mail marketing is another player in the digital marketing game. Qualified agents today stay connected with clients, family and friends by sending them e-newsletters and e-cards. A friendly holiday wish accompanied with your home listing is a great way to attract more potential buyers to your home.

Another growing industry trend is the use of podcasts, which are media files distributed over the Internet. Agents are now able to post podcasts of your home that can be downloaded free from Web sites and viewed on computers and portable devices. This new way of connecting with consumers helps provide more exposure for your home.

With the emergence of the Internet, podcasting and even wireless mobile Internet, the sky is the limit as to how many potential buyers can view your listing. So now, as an informed home seller, talk with your real estate agent about how he or she plans to market your home and get it ready to sell!

2009-01-27T12:42:00.004-05:00

Design World Says Gray Is 'In'

Gray is the “cool” color this year, and Grandma’s wingback chairs are fashionable again, especially if they are updated with new fabrics. Even the nail heads are back in style.

The interior design world is embracing traditional more enthusiastically than it has since the time between the Great Depression and World War II, say trend watchers.

"Everything has been about a return to tradition and formality," says Michelle Lamb, a Minneapolis-based trend spotter.

Traditional Home magazine reports that the lines between traditional and modern are being blurred, which makes the new traditional look up to date.

Other design trends include:

*Bare wood, including tree stumps used as end tables or stools.
*Light wood finishes that look raw.
*Decorative LED lighting.
*Owls. These big-eyed predators add charm.

Source: San Jose Mercury News, Stacy Downs (01/10/09)

2009-01-14T13:59:00.003-05:00

Photographs Help Sell Homes

It’s important to capture your home in a series of flattering photographs since in real estate, the more photos of a listing, the quicker it will sell. At Real Living, we have the ability to post up to 80 photographs per listing. Teresa knows which types of pictures sell a home, and she follows these rules when it comes to listing photographs.

Listing photos showcase the seller’s home. Opening the blinds and turning on all the lights create an illusion of a larger room. Teresa will take photos from unusual perspectives to make your home look its best and most inviting on the Web.

Teresa understands that it’s important to keep family members and pets out of listing pictures. They are distracting to prospective buyers and hinder their impressions of the actual home.

If a seller has valuables, they shouldn’t be in listing photographs. Displaying expensive pieces of artwork or heirlooms can increase a breach of security in a seller’s home.

Rooms need to be clean and void of clutter when photographed. Ceiling fans, televisions and kitchen appliances should to be turned off to eliminate distraction.

Hoses, lawn maintenance tools like rakes and spades, as well as cars and bikes shouldn’t be in outdoor listing photographs. Teresa's goal is to take outdoor photographs on sunny days. Colors will appear more vibrant and the home may look more inviting.

Teresa can help promote your listing through professional photographs, contact her today at 614-565-8161 or teresabutler@columbus.rr.com

2009-01-07T13:18:00.001-05:00

4 Things to Consider When Picking a Floor Plan

Factors that dictate what floor plan will work best for a home buyer include how old their children are, how they entertain, and whether they have pets, says Jeff Benach, a principal with Lexington Homes in the Chicago area.Here are some issues Benach suggests considering when buying a home:

Mudrooms. A spacious mud-room can make managing a young family’s comings and going much easier. They are also good for pet owners.

Over-sized kitchen/family-room combinations. These rooms work for some people, but they aren’t good for party givers because large spaces are noisy and don’t lend themselves to intense cooking and food staging.

Fireplaces and windows. Filling more than one wall with windows and occupying another with a fireplace makes it difficult to position furniture.

Consider that things change. Designing areas so they can be retooled to meet new and different needs down the road is a smart approach.

Source: Chicago Tribune, Allison E. Beatty (01/02/09)

2008-10-27T12:37:00.004-05:00

Creating the Illusion of a Larger Room

Paint
Choosing color for the walls of a smaller room can be a delicate decision. Most people agree that lighter paint colors reflect more light and therefore create the illusion of a larger room. In terms of color, go with a monochromatic theme. Then, if you have trim, paint it an even lighter shade than the wall. This technique causes the walls to appear farther away than they really are. Crown molding is a great option in terms of trim because it creates the illusion of a higher ceiling by drawing people's eyes upward. If you're ambitious, another way to make ceilings appear higher is by painting vertical stripes on the wall.

Staging Furniture
This may seem counterintuitive, but when staging your furniture, larger pieces create the illusion of more space in a room. An increased number of smaller pieces make the room appear cluttered and they create more wasted space. If you choose to use larger pieces of furniture, stage them diagonally in the room. The longest line in your room is diagonal, and by placing furniture in this position, you're showcasing the length of the room's imaginary diagonal line. Keep furniture from disrupting natural walkways and the flow from room to room. Tables with clear tops also create the illusion of more space. In terms of décor and accessories, reduce clutter as much as you can—more floor space lends to the appearance of a larger room.

Walls
Hanging mirrors on the wall can create the illusion of a larger room. Utilize mirrors in spots that need expansion. For example, if you want to lengthen a hallway, place a mirror at the end of the hallway. This makes the hallway look twice as long as it really is. Another technique is to place a mirror behind a display of flowers. The mirror doubles the amount of flowers in the display.
Window Treatments

In an attempt to capture as much natural light as possible, stay away from heavy or dark drapes that block sunlight. If drapes fit well around your window, try and hang drapes made from a sheer fabric. Otherwise, go for light colored Venetian blinds or shades.

Lighting
Once again, when lighting a room, look for as much natural light as possible—specifically larger windows and skylights. If this isn't an option, try and illuminate all four corners of the room. Darker edges and corners make rooms look smaller. To create the illusion of a higher ceiling, install wall sconces that reflect light up toward the ceiling. This technique vertically elongates the height of the wall.

For more information on how to create the illusion of a larger room when in reality, you're stuck in a smaller space, contact me today!

2008-10-13T13:07:00.000-05:00

Law Makes Housing Affordable for Veterans

Veterans across America now have expanded homeownership opportunities due to the Veterans’ Benefits Improvement Act of 2008, which President George W.

Bush signed into law last Friday. The bill includes housing provisions for veterans who are already home owners and those who aspire to homeownership, according to the NATIONAL ASSOCIATION OF REALTORS®.

“This [bill] will go a long way toward helping veterans buy and keep their homes,” says NAR President Dick Gaylord. Three provisions in the legislation are critical to help veterans during the current housing turmoil.

1. The law will make it easier for veterans who have fallen victim to risky subprime loans to refinance their loans into safer, more affordable loans backed by the U.S Department of Veterans Affairs.

2. The legislation also makes the VA loan limit increases permanent, which will help veterans living in high-cost areas.

3. The VA also can now offer adjustable-rate mortgages to veterans. That would make homeownership more attainable for military families and personnel who often have to move more frequently than their civilian counterparts.

“We need to support and protect those who serve our country,” Gaylord says. “Helping ensure that every veteran who can afford to own a home and wants to do so will have the opportunity and that everyone who responsibly owns a home is able to keep it is part of that commitment.”

--NAR

2008-10-02T15:24:00.000-05:00

HOPE for Homeowners Expands Rescues

HOPE for Homeowners, a federal program to allow the replacement of up to $300 billion in underwater U.S. mortgages with federally backed FHA financing, began accepting applications under a legislatively authorized expansion Wednesday.

To qualify, borrowers must be spending more than 31 percent of their income on mortgage payments. Loans made this year are excluded, except for those completed on Jan 1. Borrowers must have made six months of payments on their loans.

Lenders must agree to participate and erase 10 percent of the home’s current value before the government will guarantee the mortgage. A concern among lenders is that investors in mortgage securities must take an immediate loss and can't recoup their lost money if home prices turn upward again.

The program is a "helpful step forward" in stabilizing the housing market and will help keep many families in their homes but it is not a cure-all, said Steve Preston, secretary of the U.S. Department of Housing and Urban Development, which administers the program.Troubled borrowers should contact their lenders.

Source: Reuters (10/01/2008)

2008-10-01T11:26:00.002-05:00

5 Room Layout Rules

Here are five simple rules to follow when organizing your space:

Create a Conversation Space

When deciding on a seating arrangement, a U-shaped conversation area is ideal, while an L-shaped area is always uncomfortable. A sofa and a matching pair of chairs easily establish a comfortable U-shaped configuration that allows everyone who is seated to have an intimate chat facing everyone else.

Focus Attention to One Area

Almost every living room has at least one natural focal point. If yours has a fireplace, that will surely be it. Other focal points might be a picture window with a wonderful view or a pair of French doors. Whatever the focal point of your room, be sure you arrange your furniture to take advantage of it — since everyone's eyes will naturally be drawn toward it.

Think in Pairs

To create a beautiful room, think in pairs. If you have a good piece without a mate, find it a partner. For example, end tables will complement each other if they are of similar size and finish. Fit two lamps of similar height and style with new, matching shades.

Group Furniture Wisely

If you walk around your home and feel as if you're navigating an obstacle course, it may be time to rearrange your furniture. Be sure your living room chairs and sofa are grouped close together. Otherwise, anyone walking through the living room will be forced to cross between those who are seated and interrupt their conversation. If possible, avoid having the traffic pattern cross in front of the television.

Create Balance

With Chairs In small rooms, use armless upholstered chairs such as slipper style, which will allow more space than chairs with arms but will provide a more comfortable, small-scale alternative to wooden chairs. If your budget won't allow you to buy a pair of matching chairs, purchase one chair and a matching ottoman.

2008-09-30T11:59:00.002-05:00

Seven Days, Seven Projects for a Kitchen that Sells

(ARA) - In today’s market, selling a home involves much more than posting a “for-sale” sign in the yard. Preparation is key. In fact, experts agree that property appearance and condition play a big role in the home-sale process.

While home improvements can increase buyers’ interests, most sellers hesitate to renovate, fearing they may not recoup their costs in the sales price. However, with strategic updates in key rooms, such as kitchens, sellers can increase the value of a home – giving them a leg up on their neighbors to sell more easily and command a higher selling price.

With just a week's time, a small investment and a bit of elbow grease, you can easily turn your kitchen into your selling feature with these seven projects.

Clean Up!

Although you may love your children’s artwork or favorite magnets on the fridge, prospective homebuyers want to envision a home as theirs – not yours. Start your kitchen update by making a clean sweep of the room. Remove everything from the top and sides of your refrigerator and clear off countertops. By eliminating clutter and personal effects, your kitchen will look neat, clean – and even larger.

Fix Up Your Faucet

The faucet is the workhorse of the kitchen – and a focal point. So add new life to your sink area with a fashionable and functional new faucet. For an affordable price, you can find beautiful pulldown models, such as Moen’s Solidad pulldown kitchen faucet (available in LifeShine Classic Stainless finish at The Home Depot for $219). Potential buyers will be amazed with the functionality and the updated styling that it brings to the whole room.

Pull it Together

Once you’ve updated the faucet, pull the rest of the finishes in the room together by updating the hardware. Drawer pulls and knobs in a beautiful stainless finish are a simple project and can add a finishing touch that dramatically updates the look of new or older cabinets.

Become Ultra-Organized

Be prepared! Potential buyers will open your closets, cabinets and drawers to assess the storage availability in your home. Be sure that you organize each of these areas to make your kitchen look like a storage dream – not a nightmare. Many cabinet manufacturers, such as Masterbrand cabinets, offer custom shelves to help organize, or you can find simple organization systems at local retailers. No matter what system you choose, your organization won’t go unnoticed.

Curtain Call

Windows are a selling point in any room – allowing nature into a home by providing a source of sunlight. Be sure that windows and blinds are free of dust, fingerprints or pet nose prints for a bright and cheerful display. Adding a neutral, but classic curtain can be a nice touch to frame these focal points of the room.

Follow the Light

Does your kitchen still have the “builder-basic” or outdated brass lighting fixtures? As a focal point above your kitchen table, be sure to update your hanging chandelier with a model in a finish that coordinates with the rest of the room. A variety of classic-designed light fixtures in stainless steel or oil rubbed bronze finishes are available at local home improvement stores and will instantly light up your kitchen décor -- literally.

Cosmetic Cover-ups

You’ve lived in your kitchen so long that you may not notice the small paint chips in the trim or stain on the carpet, but to prospective homebuyers, these stick out like a sore thumb. A fresh coat of paint on walls and trim will always add more value than its cost and let buyers know that your home is well kept and clean.

Within a week you can easily increase the value of your home in the eyes of potential buyers – as well as provide an enjoyable space for yourself until you sell!

For more information on the Solidad pulldown kitchen faucet or other Moen products, visit www.moen.com or call (800) BUY-MOEN (800-289-6636).

Courtesy of ARAcontent

2008-09-29T11:13:00.001-05:00

Sell in a Buyer’s Market!

It’s a buyer’s market. While that’s great news for all home buyers, it seems to leave little hope for home sellers. But, fear not sellers – all is not lost. There are still some great tips to help give you a selling edge:

Prepare yourself – you have to accept what the market is and make the most of it.
Get ready for picky buyers – curb appeal and other details are vital to entice a buyer into your home.

Get educated about your neighborhood’s real estate market.
Hire an inspector – they can impartially let you know what needs to be fixed before your home is on the market.

As a Real Living agent, I can help you prepare for every step of the home selling process. Simply contact me today to get started!

2008-09-23T17:30:00.000-05:00

Cities Where Home Owners Spend the Most

Almost 15 percent of American home owners with a mortgage spend half of their income or more on housing costs, according to 2007 data released Tuesday by the U.S. Census Bureau. That is up from nearly 7.1 million in 2006.

Traditionally, the government and most lenders consider home owners spending 30 percent or more of their income on housing costs to be financially burdened. That definition now covers nearly 38 percent of American home owners with a mortgage – 19 million of them.

Here are the top 13 areas where the most mortgage holders spend more than 30 percent of their income on their homes. The information is an estimate based on an analysis of Census data by Harvard University’s Joint Center for Housing Studies.

Miami-Fort Lauderdale-Miami Beach, 58 percent
Stockton, Calif.,57 percent
Riverside-San Bernardino-Ontario, Calif., 55 percent
Cape Coral-Fort Myers, Fla., 55 percent
Los Angeles-Long Beach-Santa Ana, Calif., 54 percent
Modesto, Calif., 54 percent
San Diego-Carlsbad-San Marcos, Calif., 53 percent
San Francisco-Oakland-Fremont, Calif., 53 percent
Sarasota-Bradenton-Venice, Fla., 52 percent
Oxnard-Thousand Oaks-Ventura, Calif., 52 percent
San Jose-Sunnyvale-Santa Clara, Calif., 51 percent
Las Vegas-Paradise, Nev., 51 percent
Sacramento-Arden-Arcade-Roseville, Calif., 50 percent

Source: The Associated Press, Adrian Sainz and Alan Zibel (09/23/08)

2008-09-18T12:21:00.002-05:00

Buying or Selling in Today’s Market? Internet Paves the Path to Real Estate Success

(ARA) – Home buyers and sellers – the relationship may seem like it should be more adversarial than ever, given the current market. Coming at the real estate equation from opposite sides, buyers and sellers may feel they have little in common. The truth is, however, that both groups share a common path to real estate success – the Internet.

The Internet has been revolutionizing real estate for years now; more than 80 percent of buyers look at homes on the Internet, according to the National Association of Realtors (NAR). “More homes than ever before are being marketed on the Internet,” says Kendra Todd, of HGTV’s “My House is Worth What?” and season three winner of “The Apprentice.” “Whether you’re buying or selling, it’s essential to work with a real estate expert who is on the cusp of the latest trends, especially the Internet.”

Even the most techno-savvy among us may feel overwhelmed by the volume of real estate information – and listings – available on the Internet. How do you sort through it if you’re a buyer? And how do you find the right agent who will know how to maximize Internet marketing value, if you’re a seller? Here are tips from real estate experts – Todd, Saul Klein, CEO of Point2 Technologies, the company behind a leading real estate Web site, Point2 Homes, and Brady Pevehouse of Lynk Mortgage and Perrone Realty in central Florida.

Tips for Sellers

* With home prices still falling in many areas of the country, it’s probably tempting to try to sell on your own and avoid paying a commission to an agent. “But homes represented by agents historically sell faster and for a better price than those sold by owners,” Klein points out. “It’s harder and riskier to try selling on your own.”

* Select an Internet-savvy real estate agent to represent you. Questions to ask any agent you’re considering include: Do you plan to use syndication to publish my listing widely? Do you cover Craigslist, Yahoo!, Google, etc.? How many sites will my home be on? What kind of traffic do those sites receive? Will you purchase ad space on the Internet?

Tips for Buyers

* Take full advantage of the Internet’s research power. “The Internet can give you more relevant real estate information than just listings,” Todd says. “You can use it to evaluate price trends in areas of interest, access city hall records on development plans for your area, check out crime statistics, school facilities and noise issues.”

* “Begin with a clear vision of why you’re buying and how long you intend to be in the house,” Pevehouse advises. “This will help you determine what kind of home you’re looking for and what mortgage product is right for you.”

* Working with an Internet-savvy agent is as important for buyers as it is for sellers, Todd says. “Does the realtor provide dynamic info? Is he or she comfortable communicating with e-mail, text messaging and other technology tools?”

* While you’re researching online, keep in mind the difference between blogs and information, Todd advises. “Blogs are just opinions.” Look for fact-based sites and be sure the information you find is not outdated.

* “Real estate is intensely regional,” Todd says. Be sure to learn about the market in your area, because it may not necessarily be following national-level trends.

* Don’t be afraid to negotiate terms with the seller. “With inventory levels high, sellers can be very accommodating,” Pevehouse says. “Many are willing to contribute towards closing costs as an incentive for buyers.”

* If you’re even thinking about buying, do it now. “Jump on it now,” Todd advises. “It’s a buyer’s market, perhaps the best in years,” Klein agrees.

Courtesy of ARAcontent

2008-09-16T11:47:00.001-05:00

Refrigerator Out?

The American Red Cross advises using a digital quick response thermometer to check the temperature of frozen foods. If food is above 40 degrees, consider it thawed, and the clock is ticking on how soon it should be used.

Here is a chart from the American Red Cross, advising what foods to keep, and what to discard. http://www.redcross.org/services/disaster/0,1082,0_564_,00.html#foodchart

More advice here: http://www.redcross.org/services/disaster/0,1082,0_564_,00.html

2008-09-15T13:13:00.001-05:00

Avoiding Predatory Lending

Predatory lending is especially prevalent among first-time homebuyers and consumers unfamiliar with home financing. How can you avoid the pitfalls of predatory lending as a prospective homebuyer?
According to the National Association of Realtors® (NAR), homebuyers need to ask the right questions when shopping for the least expensive loan. These questions may include:

What is my credit score? Can I have a copy of my credit report?

What is the best interest rate today? Do I qualify?

Is the loan's interest rate fixed or adjustable?

What is the term (length) of the loan?

What are the total loan fees?

What is the total monthly payment? Does this include property taxes and insurance? If not, how much more will I need to pay for taxes and insurance?

Is there an application fee? How much is refundable if I don't qualify?

Are there any prepayment penalties? If so, what are they and how long do they last?
It's important to understand all the details of your loan before signing anything, so ask questions! Also, the NAR offers these other strategies that homebuyers can follow to protect themselves from predatory lending:

Check out lenders with the Better Business Bureau®, government Web sites or other consumer groups. How long has the lender been in business? Have consumers filed many complaints? Does the lender belong to a trade association with ethics requirements for its members?

Ask for an estimate and compare with other lenders.

Refuse to participate in transactions that may be fraudulent.

Avoid unnecessary contract extensions that could cause your loan commitment to lapse.

Get educated on the value of your home by asking your Real Living agent for a comparative market analysis.

Review the HUD-1 closing settlement statement before closing. This statement itemizes all charges imposed upon a borrower and seller for a real estate transaction. Upon request, homebuyers have the right to see this information 24 hours before the loan closing.

Report possible violations to appropriate federal, state and local officials.
If you're considering a home purchase and want to make sure you'll be safe from predatory lending, working with a Real Living agent is a wise move. Contact me for more information.

2008-09-09T12:11:00.003-05:00

Why This Autumn is a Great Time to Buy

This fall could be a particularly great time for first-time or buyers long out of the market to jump in, say a variety of real estate professionals.
Here are the reasons why:

Prices are probably as low as they are going to go as the market stabilizes, thanks to the government takeover of Freddie Mac and Fannie Mae.

Interest rates are likely to decline as Freddie and Fannie get government help.

The Federal Housing Administration recently boosted its loan limits to $729,750 in expensive areas. It's going to take some of that back come Jan. 1, when the loan limit will shrink to $625,500.

The FHA allows down payments of as little as 3 percent, but that will rise to 3.5 percent as of Oct. 1. People scraping dollars together for a down payment should try to set their closing for the end of this month.

The tax credit will shave $7,500 off a first-time buyer’s federal tax bill due April 15. Buyers who don't owe tax, will get the money as a refund.

The government's definition of a first-time buyer is anyone who hasn’t owned a home in the last three years.

Source: The Washington Post, Elizabeth Razzi (09/07/08)

2008-09-02T10:56:00.003-05:00

Making the Most of Natural Lighting

Balance is key for any home, but specifically for each individual space in a home. A good rule of thumb is to make sure major rooms in your home are illuminated from two different directions. Don't try and achieve relentless light, but rather balance light with shadows. This contrast brings a powerful dynamic to living spaces. If it's impossible to achieve this balance of light from two different directions, consider implementing a skylight. Skylights are great at subtly bringing more light into a room and diminishing harsher shadows.

Natural light also brings warmth to a room in more than one sense. Temperature wise, light contributes added heat that may be of interest during winter months. During the summer, intense mid-afternoon sunlight can be oppressive and unappealing. Take these situations into consideration when designing a room. Make sure rooms receive light at appropriate times of the day. For example, a porch should typically be shaded during the afternoon. Or, in a master bedroom, you may want your windows on the east side of the room so sunlight can enact as a natural wake-up call. It's worth plotting the course of the sun in a drawing of your site. Take into account trees, overhangs and other objects that may provide shade. Natural light also brings warmth, in an inviting sense, to spaces in your home. As humans, we are drawn to illuminated areas. If you want to improve the flow of your home from one room to another, use natural light to highlight staircases, walkways and other transitional spaces. By doing this, you're inviting individuals to move through your home while being guided by subtly marked pathways of light.
Finally, natural light can be used to play with textures, materials and colors in your home.

Consider implementing aluminum surfaces, glossy woods or white walls into your décor. These surfaces allow light to reflect in an inviting and intriguing manor. If you feel like light needs to be diffused in a room, consider purchasing sandblasted glass. When light hits this texture, it creates a glow that warms a room, yet cuts back on the sun's intense rays. Experiment with patterns. How does light filter through a trellis? A vine covered trellis can provide just enough relief from the sun to shade a porch or sitting area.

Natural lighting has an important impact on how things are illuminated in your home. Work with an interior architect in order to maximize your home's potential for capturing sunlight. For more tips on how you can illuminate your home with natural light, contact me today!

2008-08-25T21:46:00.001-05:00

6 Web Sites That Make Decorating Fun

For many people, one of the most fun parts about buying a home is redecorating it. Most of these sites are trying to sell products, but they are free to use and could give new home owners some good ideas.

DesignMyRoom.com- This is a sophisticated and complex site. It opens with a series of brief videos with Robert Verdi, a charming "Queer Eye for the Straight Guy"- style guide to the art of interior decoration. The site allows you to choose furniture, art and accessories for 30 generic rooms.

BHG.com - Choose from Color-a-Room or Color-a-Home (exterior).

AndersonFloors.com- The Image Builder Design Center is a basic program that will change the color of the flooring, walls, ceiling and trim.

WoodFloors.org- From the National Wood Flooring Association, Design a Room is another basic wall and floor site.

Mohawk.Swatchbox.com - Mohawk DreamVision allows you to choose a room type (kitchen, bedroom, bath) and style (traditional, modern, etc.) then start designing.

Corian.com- The My Room Designer offers a good choice of cabinets, wall colors and of course, countertops.

Source: St. Louis Post-Dispatch, David Bonetti (08/23/2008)

2008-08-19T12:10:00.001-05:00

Finding Furniture Bargains

Here are some ideas to help you search for the best furniture bargains:

Garage Sales
A staple for any bargain hunter's search, garage sales always offer great deals. In general, cash will get you the best deals, along with showing up early or just before closing. If you don't know how to shop them or where to find them, just ask around and you're sure to find a friend or relative who'll show you the ropes.

Flea Markets
If you're a bargaining novice, flea markets can be intimidating places. They're usually held in large, open spaces with many vendors and offer just about anything and everything you can imagine. It's best to take along an experienced friend who can help you haggle for the best prices.

Online Auctions
Not in the mood to go out and search? No problem. In today's society everything's online, including auctions. Do some pricing research before you bid, and search for similar products, noting the bids as well as the asking prices. Pay attention to the condition of products and ask questions before you buy.

Local Estate Sales
Look for these in local newspaper classified sections. Be sure to attend the "Preview Day" to see if you're interested in any of the items. It'll also be your best chance to examine the items up close and ask any questions. You may also have time to research prices and determine how much you're willing to pay.

With a little bargaining and the know-how, you just might end up with that great piece you've always wanted! For more information on how to find furniture bargains, contact your local agent today!

2008-08-13T14:34:00.000-05:00

Walkability Becomes Plus for Buyers

Walk Score identifies San Francisco as the most walkable city in the United States, mainly due to the close proximity of amenities in its Chinatown, Financial District, and Downtown neighborhoods.

New York's Tribeca, Little Italy, and Soho neighborhoods helped it land a No. 2 ranking on the Web site's list of the most walkable cities, with Boston, Chicago, Philadelphia, Seattle, the District of Columbia, Long Beach, Los Angeles, and Portland rounding out the top 10, in that order.

Experts say more people are moving to urban areas as a way to spend less money on gas, though convenience and exercise also play a role.

The Center for Neighborhood Technology--which insists a shift in transportation spending is necessary to make mass transit more efficient--says individuals reduce their annual gas expenses by as much as $2,100 when they live in urban areas versus outer-ring suburbs.

Source: Seattle Times, Amy Hoak (08/10/08)

2008-05-28T11:00:00.001-05:00

Landscape Lighting: A Great Way to Dress Up Your Home

(ARA) – The real estate market may be in a slump, but not all industries having to do with the home are in trouble. Companies that specialize in remodeling and renovation, particularly in the area of outdoor living, are doing extremely well right now.

“People don’t want to lose money on their biggest investment so instead of moving, they’re improving their homes,” says Joe Rey-Barreau, an associate professor at the University of Kentucky’s School of Interior Design and education consultant for the American Lighting Association (ALA). He says now that warmer weather has arrived, people are adding decks, patios, gazebos and outdoor kitchens to their homes, and they aren’t just planning to use them in the daytime.

“The trend towards expanding outdoor living space has been growing for some time now,” says Richard Lentz, president of Lentz Landscape Lighting in Dallas, Texas. “In past years, our goal was focused on lighting the space and showing off the garden. Now we’re concentrating a lot more effort on finding innovative ways to light outdoor spaces so they can be used at night, much like they’re used during the day.”

Backyard decks no longer just have a small light near the door. Lentz says lighting designers are now installing down lights in trees and attaching them to chimneys to shine light down on the space. “We’re also putting in a lot of step lights to make the transition from the upper to lower level easier,” says Lentz, who adds that people no longer have to feel like they’re under a spotlight when they sit outside under the stars. “If there’s a tree nearby, we can shine light down from it. Attaching fixtures to a chimney is also a nice way to get light from above that feels like moonlight.”

And when it comes to lighting outdoor kitchens, innovation is key. “We do a lot of task lighting in the outdoor kitchen,” says Lentz. “We’ll utilize the arbors to hang task lighting over the sink, the grill and the table, for example, and put them on dimmers so when the light isn’t needed, it can be turned down.”

Lentz credits the recent innovations offered by various lighting manufacturers for making those projects possible. “Technology sure has come a long way in a short amount of time,” he says.

Rey-Barreau agrees. “Manufacturers realize there’s a growing market for outdoor fixtures and they have responded by stepping up to the challenge to develop chandeliers, table lamps and sconces that are rated for wet conditions so they can be safely installed outdoors,” he says.

Safety isn’t the only factor being considered by manufacturers. So is operating cost. Not so long ago, the U.S. government mandated that the lighting industry find ways to cut energy consumption of their products. Kichler Lighting of Cleveland, Ohio, responded by coming out with a line of outdoor fixtures that use highly efficient L.E.D. bulbs that require one-third the energy of incandescents.

“When people realize they can get the same light output, a nice comfortable color and reduce energy use by 75 percent, they are more than willing to make the change,” says Jeff Dross at Kichler Lighting.

There have been innovations in the area of lighting for curb appeal purposes as well. “Landscape lighting is about safety, security and aesthetics. As far as the latter goes, the key to success is being subtle. Less is always more,” says Monty Gilbertson, manager of Lighting Design by Wettsteins in La Crosse, Wisc.

Doug Prexta, who works for the landscape division of Cleveland, Ohio-based Hinckley Lighting confirms lighting the outdoors is a trend that’s here to stay. “Our business is way up in the landscape division because people are investing in their homes more and more,” he says.

For more information about landscape lighting, or to find a lighting showroom near you, log on to the American Lighting Association’s Web site at www.AmericanLightingAssoc.com or call (800) BRIGHT-IDEAS (800-274-4484).

Courtesy of ARAcontent

2008-05-27T13:11:00.002-05:00

Creating a Backyard Getaway

Consider these tips when creating a backyard getaway.

Foundation- Carefully choose the foundation materials you'll need for a patio or walkway. They should maintain design integrity, but easily assimilate into your natural backyard. A couple of great options are stone and brick. These materials are environmentally friendly, and they maintain a natural feel. Walkways should be designed with a logical flow that allows individuals to get from one area to the next with relative ease. And it's a good idea to map out gardens, lounge areas, pools and gazebos around the natural path of sunlight during the day.

Material- Wood, wicker, plastic, metal – make sure the materials you use are high quality. Invest in outdoor furniture made of woods like teak, mahogany and bamboo. These materials withstand extended exposure to rain and sunlight, and they're eco-friendly products. Consider mesh if you live in a wet climate. It's a great option for lounge chairs because it dries quickly without water damage. If you purchase metal furniture, make sure it's rust-proof.

Landscape- Trees, bushes, flowers, rock gardens, waterfalls and ponds — there are endless possibilities when it comes to landscaping your oasis. If shade is important, take into consideration the path of the sun as well as natural foliage. If you want a pool, build it away from trees that shed leaves, pollen and branches. These elements clog filters and create a maintenance nightmare. You want your yard to be a good mixture of sun and shade. Lastly, it's important to provide a barrier between your backyard getaway and the rest of the world. A great way to seclude your yard from the street is through the use of high hedges or a fence.

Remember, your backyard getaway should be a relaxing retreat in nature from the rest of the world.

For more tips on creating the perfect backyard getaway, contact your agent today!

2008-05-19T12:22:00.000-05:00

Fraud Alert:

Beware newspaper or internet ads offering "guaranteed" loan approval, and using the Countrywide name. Here's more: http://my.countrywide.com/media/emailSecurity.html

2008-04-10T13:55:00.002-05:00

Home Improvements on a Budget

Home improvements are often costly and time consuming. However, there are some simple and easy ways to update the look of your home while still staying friendly to your wallet.
Paint. Paint is an inexpensive and easy way to make changes to the look of your home. You can completely change the look of your kitchen by using paint to turn your tired, worn-out cabinets into a new and colorful kitchen you will love. Also, consider painting furniture pieces. Instead of purchasing a new entertainment center or coffee table, use paint. This can also help with bringing in accent colors.

Lighting.
Whether it's changing lamp shades or hanging a new chandelier over your dining room table, changing a room's lighting is an easy and inexpensive way to add instant drama. When shopping for new light fixtures, look in the clearance or discontinued bins. This is a great way to save extra cash. If you like the style of your lighting, but are tired of the finish, consider spray paint to update the color. Be sure to purchase the appropriate type and work in a well ventilated area.

Slip Covers.
Buying new furniture is one of the most expensive purchases you can make when redesigning a room. Remedy this by purchasing slip covers, which can be used for sofas, chairs and more. Also, consider reupholstering the seats of dining room chairs or barstools. All it takes is a staple gun and a few yards of fabric.

Artwork.
Another great and easy way to update the look of a room is to change the artwork on your walls. If you really want to save money, consider using existing frames, but changing the artwork inside.

Before you begin your home improvement projects, create your budget and stick to it. Think of key features you want to improve and which areas will require more or less money. Keep in mind that home improvements on a budget doesn't mean skimping on style!

2008-04-08T11:32:00.001-05:00

Spring Cleaning Checklist

With spring selling season arriving, take the time now to help polish your home to perfection.

Let the sun in.
Make any room look brighter with clean blinds and windows. Mix a solution of one part white vinegar to eight parts water, plus a drop or two of liquid dishwashing liquid, for a green window cleaner. Spray on and wipe with newspaper to avoid streaks. Washing on a cloudy day also reduces streaking.

Sniff out smells.
Check the drip tray underneath your refrigerator and wash out any standing water from defrosting. Remove inside odors by washing the inside of the fridge with a baking soda and water solution. Boil lemon juice in your microwave and add it to your dishwasher to eliminate bad smells. Also, put the lemon rinds down the disposal. Add activated charcoal in the fridge to keep odors at bay.

Make your bed better.
Vacuum mattresses and box springs, and then rotate and flip over. Do the same for removable furniture cushions. This is also a great time to wash or dry-clean the dust ruffle and mattress pad.

Clean those coils.
Improve energy efficiency by vacuuming grates, coils, and condensers in your furnace, stove, and refrigerator (either underneath or in back). If a vacuum won’t reach, try a rag tied to a yardstick.

Wash the walls.
Grease, smoke, and dust can adhere to walls and make even the best decorating look dingy. Wash walls using a general-purpose cleaner with hot water. Start at the top of the wall to avoid drips and in a corner so that you wash one wall at a time. Rinse the mop head frequently in clean water. And don’t press too hard, because flat latex paint won’t absorb much water.

2008-03-27T12:36:00.000-05:00

Don't Forget: PMI is Deductible

As April 15 tax day approaches, here is a reminder for home buyers with mortgage insurance.Home owners with adjusted gross incomes of $100,000 or less can deduct the full cost of their government or private mortgage insurance premiums on their 2007 federal returns.Families with incomes between $100,000 and $109,000 are eligible for a reduced deduction.This is a new tax break that Congress has approved through 2010. "On average, this year's tax break could be worth $350 per taxpayer — an annual deduction that qualified home owners can take each year through 2010," says Kevin Schneider, president of the Mortgage Insurance Companies of America (MICA).

Source: MICA (03/26/08)

2008-03-25T14:21:00.002-05:00

This Spring’s Hot Home Decorating Trend

(ARA) – Want to get a feel for what’s hot in the world of home decor these days? All you have to do is visit a couple of model homes in your community and take a good look around. You’re sure to recognize a recurring theme.

The cabinets you saw in the high-end kitchen closely resemble the furniture in the adjoining breakfast nook, and the ceiling molding in the dining room matches perfectly as well. These days, designers are going out of their way to carry a single theme throughout the entire house. It’s a design trend called unification.

A good example of this practice can be found at fashion and lifestyle expert Robert Verdi’s Luxe Laboratory, an innovative venue for displaying the best of today’s luxury brands for the home. The lab, situated inside a stunning 3,400 square foot loft on the 13th floor of an art deco building on West 30th Street in Manhattan, features a collection of luxury brands -- displayed in context -- to create a seamless total experience that stimulates the style senses.

From the moment you walk through the door, you’re transformed into a space that’s Déjà New -- characteristic of a new French look with touches of old world flair. There’s oversized furniture and big chandeliers. The kitchen is organized and contemporary without being sterile. The cabinetry is being used as a template for what is truly a great room. The library mimics the cabinetry in the kitchen with the same style and finish.

“I wanted the space to be consistent, with a natural flow from one room to the next. No one wants their home to feel like a showroom so the cabinetry in this space unifies the design theme and connects with the rest of the décor,” says Verdi.

Vince Achey, Vice President of Sales and Marketing for Plain & Fancy Custom Cabinetry, the brand of cabinets chosen for the Luxe Laboratory, agrees with Verdi’s assessment. “Custom cabinetry is the only way to utilize every inch of space and make storage easy, convenient and accessible as well as beautiful. We know our customer has specific storage needs and we try to accommodate them in every way possible, with designs that are smart and functional.”

In the kitchen, some of the most popular custom applications people are requesting include decorative storage houses for toasters and other appliances, built-in spice racks, pull-out drawers and cutting boards that fit right into the counter.

In the library or family room, homeowners have the option of continuing the look by installing matching custom bookshelves/cabinets that offer ample storage space. They may cover all four walls and/or reach from the ground to ceiling. Whatever the homeowner wants.

Matching cabinets above the washer/dryer in the laundry room allow the homeowner to store detergent, dryer sheets and stain remover out of sight so the room has a clean look. They may also want to add a pull down iron or folding shelf that can be pulled out when it’s time to fold laundry, then put back when they’re done. “The possibilities with custom cabinetry are truly endless,” says Achey.

No matter what your dream home looks like, functional, customized storage solutions will make all the difference. To learn more about the benefits of custom cabinetry, and get an idea of the looks and materials available, log on to www.plainfancycabinetry.com. Click on “Find Your Style” to choose the cabinetry design theme that’s perfect for your home.

Courtesy of ARAcontent

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