While the continuing changes in lending are creating challenges for buyers, here are a few simple things each of us can do to help improve our credit scores....
Wednesday, December 30, 2009
Tuesday, December 22, 2009
Changes in Federal Regulations means BIG delays for Home Buyers and Home Sellers
Now, more than ever, it is imperative to ensure that you are dealing with experienced, knowledgable professionals!
Monday, December 21, 2009
Home Staging: Professional Service Slashes Time and Increases Profit
It's time to put your home on the market. You've hired a real estate agent. You've signed all the papers. You've been given the typical remarks about keeping your home neat and ready for potential buyers. And now you wait. Or do you?
Instead of waiting the typical 4+ months and then taking a reduced price on your home, why not invest in a home staging professional! Doing so will drastically decrease the amount of time your home spends on the market - up to 20 times faster - as well as increase the amount you get for your home - six percent over listing is typical!
What is Home Staging?
Home staging is simply the art of preparing your home for sale. Basically, there are five steps to home staging:
- Cleaning
- Getting rid of clutter
- Depersonalizing
- Decorating and accessorizing
- Maintaining
In days gone by, home staging consisted of advice by your real estate agent to "clean up" and "de-clutter." If you had a savvy agent, you may have even been told to add fresh flowers or fresh linens in the bathroom. However, being a real estate professional is not the same thing as being a design professional.
Professional home stagers know exactly what to do to create the right atmosphere. They not only tell you to de-clutter, but know exactly what to do in order to create a clutter free environment. They can walk through your home and know immediately if you need to remove or rearrange furniture. With just a quick visit, they can tell you what will enhance your homes curb appeal.
Why Does Home Staging Matter?
When it comes to sales, first impressions are everything. A potential homebuyer will often decide to enter a home based on the outside appearance. And once inside, they make up their mind about a home within about 10 seconds. This means that you have 10 seconds to create an atmosphere that entices the imagination and creates a longing in the buyer.
Home staging is the way to create that desire and longing. Through home staging, you can put your home's best foot forward.
Professional or Do-It-Yourself?
Professional home staging services are not free and many people believe that they can save money by doing it themselves. However, there are many pitfalls to the "do-it-yourself" mentality.
1. You obviously like the look of your home or you wouldn't have created it, right? Making changes can be downright difficult when you love your things and feel that your home is comfortable "as is." A professional can help you step back and see your home in the same way that a potential buyer will see it. They help you take yourself out of the home so that the homebuyers can see themselves in it!
2. What do you know about color, lighting, and traffic flow? If you are like most people, you know very little about these things. Although the colors or the traffic pattern worked for you and your family, a professional can see issues that will keep your home from having that "instant appeal." Remember, buyers are not buying "your" house - they are buying "their" house!
3. Can you walk through your home and instantly list 10 inexpensive ways to increase the value of your home? Home stagers can. They know how to make the changes in a timely manner so that you can get your home on the market quickly. They view your home from the buyer's point of view and can tell you what to store, what to keep, what to move, and what will add that pizzazz that will make your home sell.
Is Home Staging Cost Effective?
One of the most important things you can do to sell your home quickly and for the highest possible price is to "stage" it. The proof is in the pudding:
- According to the National Association of Realtors, for every dollar sellers put into staging, they get $4 back- The average increase over the listing price is 6.32%. On a $500,000 house, that is nearly $32,000 and will more than pay for your professional real estate agent! Think of home staging as a way to get your real estate agent for free!
A real estate professional has the knowledge, experience, and qualifications to sell your home. A home stager has the knowledge, experience, and qualifications to prepare your home for the sale. Although professional services are not free, the cost of the services more than exceeds the benefits received!
Selling your home can be a trying time. Why wouldn't you want to decrease the time your home spends on the market while increasing your sales price? Relying on a home stager can make all the difference.
Author BioTeri B Clark is a professional writer and published author. Her most recent book, 301 Simple Things You Can Do To Sell Your Home NOW and For More Money Than You Thought, explains these tips in more detail and offers many, many others. To learn more about Teri's latest book, visit http://staging-your-home.blogspot.com/
Instead of waiting the typical 4+ months and then taking a reduced price on your home, why not invest in a home staging professional! Doing so will drastically decrease the amount of time your home spends on the market - up to 20 times faster - as well as increase the amount you get for your home - six percent over listing is typical!
What is Home Staging?
Home staging is simply the art of preparing your home for sale. Basically, there are five steps to home staging:
- Cleaning
- Getting rid of clutter
- Depersonalizing
- Decorating and accessorizing
- Maintaining
In days gone by, home staging consisted of advice by your real estate agent to "clean up" and "de-clutter." If you had a savvy agent, you may have even been told to add fresh flowers or fresh linens in the bathroom. However, being a real estate professional is not the same thing as being a design professional.
Professional home stagers know exactly what to do to create the right atmosphere. They not only tell you to de-clutter, but know exactly what to do in order to create a clutter free environment. They can walk through your home and know immediately if you need to remove or rearrange furniture. With just a quick visit, they can tell you what will enhance your homes curb appeal.
Why Does Home Staging Matter?
When it comes to sales, first impressions are everything. A potential homebuyer will often decide to enter a home based on the outside appearance. And once inside, they make up their mind about a home within about 10 seconds. This means that you have 10 seconds to create an atmosphere that entices the imagination and creates a longing in the buyer.
Home staging is the way to create that desire and longing. Through home staging, you can put your home's best foot forward.
Professional or Do-It-Yourself?
Professional home staging services are not free and many people believe that they can save money by doing it themselves. However, there are many pitfalls to the "do-it-yourself" mentality.
1. You obviously like the look of your home or you wouldn't have created it, right? Making changes can be downright difficult when you love your things and feel that your home is comfortable "as is." A professional can help you step back and see your home in the same way that a potential buyer will see it. They help you take yourself out of the home so that the homebuyers can see themselves in it!
2. What do you know about color, lighting, and traffic flow? If you are like most people, you know very little about these things. Although the colors or the traffic pattern worked for you and your family, a professional can see issues that will keep your home from having that "instant appeal." Remember, buyers are not buying "your" house - they are buying "their" house!
3. Can you walk through your home and instantly list 10 inexpensive ways to increase the value of your home? Home stagers can. They know how to make the changes in a timely manner so that you can get your home on the market quickly. They view your home from the buyer's point of view and can tell you what to store, what to keep, what to move, and what will add that pizzazz that will make your home sell.
Is Home Staging Cost Effective?
One of the most important things you can do to sell your home quickly and for the highest possible price is to "stage" it. The proof is in the pudding:
- According to the National Association of Realtors, for every dollar sellers put into staging, they get $4 back- The average increase over the listing price is 6.32%. On a $500,000 house, that is nearly $32,000 and will more than pay for your professional real estate agent! Think of home staging as a way to get your real estate agent for free!
A real estate professional has the knowledge, experience, and qualifications to sell your home. A home stager has the knowledge, experience, and qualifications to prepare your home for the sale. Although professional services are not free, the cost of the services more than exceeds the benefits received!
Selling your home can be a trying time. Why wouldn't you want to decrease the time your home spends on the market while increasing your sales price? Relying on a home stager can make all the difference.
Author BioTeri B Clark is a professional writer and published author. Her most recent book, 301 Simple Things You Can Do To Sell Your Home NOW and For More Money Than You Thought, explains these tips in more detail and offers many, many others. To learn more about Teri's latest book, visit http://staging-your-home.blogspot.com/
Friday, December 18, 2009
Network's new show looking for Denver Area Homeowners..
NETWORK SHOW LOOKING FOR DENVER AREA HOMEOWNERS
*Have you messed up your home renovation project?
*Don’t know what comes next?
*In over your head?
Share your struggle and get some help!
Producers are searching for Denver-area homeowners with stalled out home renovation projects for the next hit Network show. Homeowners chosen to appear on the show will share their incomplete, flawed and never-ending renovation with Network’s contractor, in order to pinpoint exactly where things went wrong and formulate a plan to turn the project around. The Network’s expert team will spring into action and get to work, using tried and true renovation methods as well as some new modern twists to help the homeowners finally complete the project in 48 hours.
If your grasp of remodeling exceeded your reach, we’d love to hear from you!
They'd would like to hear from homeowners who:
*Live in the Greater Denver area (Fort Collins to Colorado Springs OK)
*Have started, but have not finished a remodel of one area of the home (demo stage preferred)
*Have a compelling story about why they started the renovation and why they can’t proceed
*Have an appropriate budget already set aside for the renovation (we’ll help with labor and know-how)
*Are enthusiastic about being on TV and are ready to enhance their skills and finish the project once and for all.
Please e-mail Cynthia@CynthiaMParker for an application and more information:
Thursday, December 17, 2009
Citi to suspend foreclosures for 30 days
WASHINGTON (AP) - Citigroup Inc. will suspend foreclosures and evictions for 30 days in a temporary break for about 4,000 borrowers during the holiday season.
The New York-based bank said Thursday the suspension will run from Friday through Jan. 17. It applies only to borrowers whose loans are owned by Citi. Borrowers who make payments to Citi but whose loans are owned by other investors are out of luck.
"We want our borrowers to have a much less stressful time, to spend their time with their families during the holidays as opposed to worrying about their homes," Sanjiv Das, head of the company's mortgage division, said in an interview.
The suspension means Citi will halt foreclosure sales and stop evicting homeowners from properties it has already seized. The company projects it will help 2,000 homeowners with scheduled foreclosure sales and another 2,000 that were due to receive foreclosure notices.
Das also said the company is working on "some long-term fundamental alternatives" to foreclosure, but declined to be specific. "We know that moratoriums are not permanent solutions," he said.
Most major lenders suspended foreclosures last winter while the Obama administration developed its $75 billion loan modification program. Foreclosures picked up again after those suspensions lifted. In recent months, they have fallen as banks evaluate whether borrowers qualify for the government program.
Citi has enrolled about 100,000 borrowers in the Obama program, but had made only about 270 of those modifications permanent as of the end of last month, according to a Treasury Department report. But Das said the low number resulted from a "reporting error" and said it will rise dramatically by year-end.
"I have put a lot of pressure on my team to make sure that there is almost nothing left in the pipeline," he said.
~ALAN ZIBELPublished: Today
The New York-based bank said Thursday the suspension will run from Friday through Jan. 17. It applies only to borrowers whose loans are owned by Citi. Borrowers who make payments to Citi but whose loans are owned by other investors are out of luck.
"We want our borrowers to have a much less stressful time, to spend their time with their families during the holidays as opposed to worrying about their homes," Sanjiv Das, head of the company's mortgage division, said in an interview.
The suspension means Citi will halt foreclosure sales and stop evicting homeowners from properties it has already seized. The company projects it will help 2,000 homeowners with scheduled foreclosure sales and another 2,000 that were due to receive foreclosure notices.
Das also said the company is working on "some long-term fundamental alternatives" to foreclosure, but declined to be specific. "We know that moratoriums are not permanent solutions," he said.
Most major lenders suspended foreclosures last winter while the Obama administration developed its $75 billion loan modification program. Foreclosures picked up again after those suspensions lifted. In recent months, they have fallen as banks evaluate whether borrowers qualify for the government program.
Citi has enrolled about 100,000 borrowers in the Obama program, but had made only about 270 of those modifications permanent as of the end of last month, according to a Treasury Department report. But Das said the low number resulted from a "reporting error" and said it will rise dramatically by year-end.
"I have put a lot of pressure on my team to make sure that there is almost nothing left in the pipeline," he said.
~ALAN ZIBELPublished: Today
Sunday, November 29, 2009
Saturday, November 28, 2009
27 Tips You Should Know To Get Your Home Sold Fast and For Top Dollar
"...discover how to protect and capitalize on your most important investment.."
Because your home may well be your largest asset, selling it is probably one of the most important decisions you will make in your life. To better understand the homeselling process, a guide has been prepared from current industry insider reports. Through these 27 tips you will discover how to protect and capitalize on your most important investment, reduce stress, be in control of your situation, and make the most profit possible.
1. Understand Why You Are Selling Your Home
Your motivation to sell is the determining factor as to how you will approach the process. It affects everything from what you set your asking price at to how much time, money and effort you're willing to invest in order to prepare your home for sale. For example, if your goal is for a quick sale, this would determine one approach. If you want to maximize your profit, the sales process might take longer thus determining a different approach.
2. Keep the Reason(s) You are Selling to Yourself
The reason(s) you are selling your home will affect the way you negotiate its sale. By keeping this to yourself you don't provide ammunition to your prospective buyers. For example, should they learn that you must move quickly, you could be placed at a disadvantage in the negotiation process. When asked, simply say that your housing needs have changed. Remember, the reason( s) you are selling is only for you to know .
3. Before Setting a Price - Do Your Homework
When you set your price, you make buyers aware of the absolute maximum they have to pay for your home. As a seller, you will want to get a selling price as close to the list price as possible. If you start out by pricing too high you run the risk of not being taken seriously by buyers and their agents. If you are pricing too low it can result in selling for much less than you were hoping for.
Setting Your Home's Sale Price
If You Live in a Subdivision - If your home is comprised of similar or identical floor plans, built in the same period, simply look at recent sales in your neighborhood subdivision to give you a good idea of what your home is worth.
If You Live in An Older Neighborhood - As neighborhoods change over time each home may be different in minor or substantial ways and you will probably find that there aren't many homes truly comparable to yourown. In this case you may want to consider seeking a Realtor ® to help you with the pricing process.
If You Decide to Sell On Your Own - A good way to establish a value is to look at homes that have sold in your neighborhood within the past 6 months, including those now on the market. This is how prospective buyers will assess the worth of your home. Also a trip to City Hall can provide you with home sale information in its public records, for most communities.
4. Do Some "Home Shopping" Yourself
The best way to learn about your competition and discover what turns buyers off is to check out other open houses. Note floor plans, condition, appearance, size of lot, location and other features. Particularly note, not only the asking prices but what they are actually selling for. Remember, if you're serious about getting your home sold fast, don't price it higher than your neighbor's.
5. When Getting an Appraisal is a Benefit
Sometimes a good appraisal can be a benefit in marketing your home. Getting an appraisal is a good way to let prospective buyers know that your home can be financed. However, an appraisal does cost money, has a limited life, and there’s no guarantee you’ll like the figure you hear.
6. Tax Assessments - What They Really Mean
Some people think that tax assessments are a way of evaluating a home. The difficulty here is that assessments are based on a number of criteria that may not be related to property values, so they may not necessarily reflect your home's true value.
7. Deciding Upon a Realtor®
According to the National Association of Realtors, nearly two-thirds of the people surveyed who sell their own homes say they wouldn't do it again themselves. Primary reasons included setting a price, marketing handicaps, liability concerns, and time constraints. When deciding upon a Realtor®, consider two or three. Be as wary of quotes that are too low as those that are too high.
All Realtors® are not the same! A professional Realtor® knows the market and has information on past sales, current listings, a marketing plan, and will provide their background and references. Evaluate each candidate carefully on the basis of their experience, qualifications, enthusiasm and personality. Be sure you choose someone that you trust and feel confident that they will do a good job on your behalf.
If you choose to sell on your own, you can still talk to a Realtor® . Many are more than willing to help do-it-your-selfers with paperwork, contracts, etc. and should problems arise, you now have someone you can readily call upon.
8. Ensure You Have Room to Negotiate
Before settling on your asking price make sure you leave yourself enough room in which to bargain. For example, set your lowest and highest selling price. Then check your priorities to know if you'll price high to maximize your profit or price closer to market value if you want sell quickly.
9. Appearances Do Matter - Make them Count!
Appearance is so critical that it would be unwise to ignore this when selling your home. The look and "feel" of your home will generate a greater emotional response than any other factor. Prospective buyers react to what they see, hear, feel, and smell even though you may have priced your home to sell.
10. Invite the Honest Opinions of Others
The biggest mistake you can make at this point is to rely solely on your own judgment. Don't be shy about seeking the honest opinions of others. You need to be objective about your home's good points as well as bad. Fortunately, your Realtor® will be unabashed about discussing what should be done to make your home more marketable.
11. Get it Spic n' Span Clean and Fix Everything, Even If It Seems Insignificant
Scrub, scour, tidy up, straighten, get rid of the clutter, declare war on dust, repair squeaks, the light switch that doesn't work, and the tiny crack in the bathroom mirror because these can be deal-killers and you'll never know what turns buyers off. Remember, you're not just competing with other resale homes, but brand-new ones as well.
12. Allow Prospective Buyers to Visualize Themselves in Your Home
The last thing you want prospective buyers to feel when viewing your home is that they may be intruding into someone's life. Avoid clutter such as too many knick-knacks, etc. Decorate in neutral colors, like white or beige and place a few carefully chosen items to add warmth and character. You can enhance the attractiveness of your home with a well-placed vase of flowers or potpourri in the bathroom. Home-decor magazines are great for tips.
13. Deal Killer Odors - Must Go!
You may not realize but odd smells like traces of food, pets and smoking odors can kill deals quickly. If prospective buyers know you have a dog, or that you smoke, they'll start being aware of odors and seeing stains that may not even exist. Don't leave any clues.
14. Be a Smart Seller - Disclose Everything
Smart sellers are proactive in disclosing all known defects to their buyers in writing. This can reduce liability and prevent lawsuits later on.
15. It's Better With More Prospects
When you maximize your home's marketability, you will most likely attract more than one prospective buyer. It is much better to have several buyers because they will compete with each other; a single buyer will end up competing with you.
16. Keep Emotions in Check During Negotiations
Let go of the emotion you've invested in your home. Be detached, using a business-like manner in your negotiations. You'll definitely have an advantage over those who get caught up emotionally in the situation.
17. Learn Why Your Buyer is Motivated
The better you know your buyers the better you can use the negotiation process to your advantage. This allows you to control the pace and duration of the process.
As a rule, buyers are looking to purchase the best affordable property for the least amount of money. Knowing what motivates them enables you to negotiate more effectively. For example, does your buyer need to move quickly. Armed with this information you are in a better position to bargain.
18. What the Buyer Can Really Pay
As soon as possible, try to learn the amount of mortgage the buyer is qualified to carry and how much his/her down payment is. If their offer is low, ask their Realtor® about the buyer's ability to pay what your home is worth.
19. When the Buyer Would Like to Close
Quite often, when buyers would "like" to close is when they need to close. Knowledge of their deadlines for completing negotiations again creates a negotiating advantage for you.
20. Never Sign a Deal on Your Next Home Until You Sell Your Current Home
Beware of closing on your new home while you're still making mortgage payments on the old one or you might end up becoming a seller who is eager (even desperate) for the first deal that comes along.
21. Moving Out Before You Sell Can Put You at a Disadvantage
It has been proven that it's more difficult to sell a home that is vacant because it becomes forlorn looking, forgotten, no longer an appealing sight. Buyers start getting the message that you have a another home and are probably motivated to sell. This could cost you thousands of dollars.
22. Deadlines Create A Serious Disadvantage
Don't try to sell by a certain date. This adds unnecessary pressure and is a serious disadvantage in negotiations.
23. A Low Offer - Don't Take It Personally
Invariably the initial offer is below what both you and the buyer knows he'll pay for your property. Don't be upset, evaluate the offer objectively. Ensure it spells out the offering price, sufficient deposit, amount of down payment, mortgage amount, a closing date and any special requests. This can simply provide a starting point from which you can negotiate.
24. Turn That Low Offer Around
You can counter a low offer or even an offer that’s just under your asking price. This lets the buyer know that the first offer isn’t seen as being a serious one. Now you’ll be negotiating only with buyers with serious offers.
25. Maybe the Buyer's Not Qualified
If you feel an offer is inadequate, now is the time to make sure the buyer is qualified to carry the size of mortgage the deal requires. Inquire how they arrived at their figure, and suggest they compare your price to the prices of homes for sale in your neighborhood.
26. Ensure the Contract is Complete
To avoid problemsomplete, ensure that all terms, costs and responsibilities are spelled out in the contract of sale. It should include such items as the date it was made, names of parties involved, address of property being sold, purchase price, where deposit monies will be held, date for loan approval, date and place of closing, type of deed, including any contingencies that remain to be settled and what personal property is included (or not) in the sale.
27. Resist Deviating From the Contract
For example, if the buyer requests a move-in prior to closing, just say no and that you’ve been advised against it. Now is not the time to take any chances of the deal falling through.
Because your home may well be your largest asset, selling it is probably one of the most important decisions you will make in your life. To better understand the homeselling process, a guide has been prepared from current industry insider reports. Through these 27 tips you will discover how to protect and capitalize on your most important investment, reduce stress, be in control of your situation, and make the most profit possible.
1. Understand Why You Are Selling Your Home
Your motivation to sell is the determining factor as to how you will approach the process. It affects everything from what you set your asking price at to how much time, money and effort you're willing to invest in order to prepare your home for sale. For example, if your goal is for a quick sale, this would determine one approach. If you want to maximize your profit, the sales process might take longer thus determining a different approach.
2. Keep the Reason(s) You are Selling to Yourself
The reason(s) you are selling your home will affect the way you negotiate its sale. By keeping this to yourself you don't provide ammunition to your prospective buyers. For example, should they learn that you must move quickly, you could be placed at a disadvantage in the negotiation process. When asked, simply say that your housing needs have changed. Remember, the reason( s) you are selling is only for you to know .
3. Before Setting a Price - Do Your Homework
When you set your price, you make buyers aware of the absolute maximum they have to pay for your home. As a seller, you will want to get a selling price as close to the list price as possible. If you start out by pricing too high you run the risk of not being taken seriously by buyers and their agents. If you are pricing too low it can result in selling for much less than you were hoping for.
Setting Your Home's Sale Price
If You Live in a Subdivision - If your home is comprised of similar or identical floor plans, built in the same period, simply look at recent sales in your neighborhood subdivision to give you a good idea of what your home is worth.
If You Live in An Older Neighborhood - As neighborhoods change over time each home may be different in minor or substantial ways and you will probably find that there aren't many homes truly comparable to yourown. In this case you may want to consider seeking a Realtor ® to help you with the pricing process.
If You Decide to Sell On Your Own - A good way to establish a value is to look at homes that have sold in your neighborhood within the past 6 months, including those now on the market. This is how prospective buyers will assess the worth of your home. Also a trip to City Hall can provide you with home sale information in its public records, for most communities.
4. Do Some "Home Shopping" Yourself
The best way to learn about your competition and discover what turns buyers off is to check out other open houses. Note floor plans, condition, appearance, size of lot, location and other features. Particularly note, not only the asking prices but what they are actually selling for. Remember, if you're serious about getting your home sold fast, don't price it higher than your neighbor's.
5. When Getting an Appraisal is a Benefit
Sometimes a good appraisal can be a benefit in marketing your home. Getting an appraisal is a good way to let prospective buyers know that your home can be financed. However, an appraisal does cost money, has a limited life, and there’s no guarantee you’ll like the figure you hear.
6. Tax Assessments - What They Really Mean
Some people think that tax assessments are a way of evaluating a home. The difficulty here is that assessments are based on a number of criteria that may not be related to property values, so they may not necessarily reflect your home's true value.
7. Deciding Upon a Realtor®
According to the National Association of Realtors, nearly two-thirds of the people surveyed who sell their own homes say they wouldn't do it again themselves. Primary reasons included setting a price, marketing handicaps, liability concerns, and time constraints. When deciding upon a Realtor®, consider two or three. Be as wary of quotes that are too low as those that are too high.
All Realtors® are not the same! A professional Realtor® knows the market and has information on past sales, current listings, a marketing plan, and will provide their background and references. Evaluate each candidate carefully on the basis of their experience, qualifications, enthusiasm and personality. Be sure you choose someone that you trust and feel confident that they will do a good job on your behalf.
If you choose to sell on your own, you can still talk to a Realtor® . Many are more than willing to help do-it-your-selfers with paperwork, contracts, etc. and should problems arise, you now have someone you can readily call upon.
8. Ensure You Have Room to Negotiate
Before settling on your asking price make sure you leave yourself enough room in which to bargain. For example, set your lowest and highest selling price. Then check your priorities to know if you'll price high to maximize your profit or price closer to market value if you want sell quickly.
9. Appearances Do Matter - Make them Count!
Appearance is so critical that it would be unwise to ignore this when selling your home. The look and "feel" of your home will generate a greater emotional response than any other factor. Prospective buyers react to what they see, hear, feel, and smell even though you may have priced your home to sell.
10. Invite the Honest Opinions of Others
The biggest mistake you can make at this point is to rely solely on your own judgment. Don't be shy about seeking the honest opinions of others. You need to be objective about your home's good points as well as bad. Fortunately, your Realtor® will be unabashed about discussing what should be done to make your home more marketable.
11. Get it Spic n' Span Clean and Fix Everything, Even If It Seems Insignificant
Scrub, scour, tidy up, straighten, get rid of the clutter, declare war on dust, repair squeaks, the light switch that doesn't work, and the tiny crack in the bathroom mirror because these can be deal-killers and you'll never know what turns buyers off. Remember, you're not just competing with other resale homes, but brand-new ones as well.
12. Allow Prospective Buyers to Visualize Themselves in Your Home
The last thing you want prospective buyers to feel when viewing your home is that they may be intruding into someone's life. Avoid clutter such as too many knick-knacks, etc. Decorate in neutral colors, like white or beige and place a few carefully chosen items to add warmth and character. You can enhance the attractiveness of your home with a well-placed vase of flowers or potpourri in the bathroom. Home-decor magazines are great for tips.
13. Deal Killer Odors - Must Go!
You may not realize but odd smells like traces of food, pets and smoking odors can kill deals quickly. If prospective buyers know you have a dog, or that you smoke, they'll start being aware of odors and seeing stains that may not even exist. Don't leave any clues.
14. Be a Smart Seller - Disclose Everything
Smart sellers are proactive in disclosing all known defects to their buyers in writing. This can reduce liability and prevent lawsuits later on.
15. It's Better With More Prospects
When you maximize your home's marketability, you will most likely attract more than one prospective buyer. It is much better to have several buyers because they will compete with each other; a single buyer will end up competing with you.
16. Keep Emotions in Check During Negotiations
Let go of the emotion you've invested in your home. Be detached, using a business-like manner in your negotiations. You'll definitely have an advantage over those who get caught up emotionally in the situation.
17. Learn Why Your Buyer is Motivated
The better you know your buyers the better you can use the negotiation process to your advantage. This allows you to control the pace and duration of the process.
As a rule, buyers are looking to purchase the best affordable property for the least amount of money. Knowing what motivates them enables you to negotiate more effectively. For example, does your buyer need to move quickly. Armed with this information you are in a better position to bargain.
18. What the Buyer Can Really Pay
As soon as possible, try to learn the amount of mortgage the buyer is qualified to carry and how much his/her down payment is. If their offer is low, ask their Realtor® about the buyer's ability to pay what your home is worth.
19. When the Buyer Would Like to Close
Quite often, when buyers would "like" to close is when they need to close. Knowledge of their deadlines for completing negotiations again creates a negotiating advantage for you.
20. Never Sign a Deal on Your Next Home Until You Sell Your Current Home
Beware of closing on your new home while you're still making mortgage payments on the old one or you might end up becoming a seller who is eager (even desperate) for the first deal that comes along.
21. Moving Out Before You Sell Can Put You at a Disadvantage
It has been proven that it's more difficult to sell a home that is vacant because it becomes forlorn looking, forgotten, no longer an appealing sight. Buyers start getting the message that you have a another home and are probably motivated to sell. This could cost you thousands of dollars.
22. Deadlines Create A Serious Disadvantage
Don't try to sell by a certain date. This adds unnecessary pressure and is a serious disadvantage in negotiations.
23. A Low Offer - Don't Take It Personally
Invariably the initial offer is below what both you and the buyer knows he'll pay for your property. Don't be upset, evaluate the offer objectively. Ensure it spells out the offering price, sufficient deposit, amount of down payment, mortgage amount, a closing date and any special requests. This can simply provide a starting point from which you can negotiate.
24. Turn That Low Offer Around
You can counter a low offer or even an offer that’s just under your asking price. This lets the buyer know that the first offer isn’t seen as being a serious one. Now you’ll be negotiating only with buyers with serious offers.
25. Maybe the Buyer's Not Qualified
If you feel an offer is inadequate, now is the time to make sure the buyer is qualified to carry the size of mortgage the deal requires. Inquire how they arrived at their figure, and suggest they compare your price to the prices of homes for sale in your neighborhood.
26. Ensure the Contract is Complete
To avoid problemsomplete, ensure that all terms, costs and responsibilities are spelled out in the contract of sale. It should include such items as the date it was made, names of parties involved, address of property being sold, purchase price, where deposit monies will be held, date for loan approval, date and place of closing, type of deed, including any contingencies that remain to be settled and what personal property is included (or not) in the sale.
27. Resist Deviating From the Contract
For example, if the buyer requests a move-in prior to closing, just say no and that you’ve been advised against it. Now is not the time to take any chances of the deal falling through.
Saturday, November 21, 2009
Renters in Fannie Mae-owned foreclosed properties can stay in their homes
Support for Renters
A renter who wants to stay in a home that has been foreclosed can now sign a month-to-month lease if the property is owned by Fannie Mae.
Renters live in more than 20 percent of all properties facing foreclosure. They may pay their rent on time but still risk eviction if the property goes into foreclosure. To help minimize disruption to good tenants, Fannie Mae now allows them to stay in their homes with a month-to-month lease. The policy, which applies to properties owned by Fannie Mae, will help bring stability to communities affected by high foreclosure rates.
To qualify, renters must live in foreclosed properties at the time Fannie Mae acquires the property. Any single-family property is eligible including two- to four-unit properties, condos, co-ops, single-family detached homes and manufactured housing. The properties must meet state laws and local code requirements for a rental property. Fannie Mae will not require security deposits. The properties will remain on the market for sale.
Eligible renters will be offered a new month-to-month lease with Fannie Mae or financial assistance to move to new housing if they choose. Fannie Mae will manage the properties through a real estate broker or a property management company.
Rental rates under the new leases will be comparable to other rents in the same market and subject to any legal rent control restrictions. The company will review any instance where the market rate would increase the tenant’s rent and will work to reach an equitable resolution.
A renter who wants to stay in a home that has been foreclosed can now sign a month-to-month lease if the property is owned by Fannie Mae.
Renters live in more than 20 percent of all properties facing foreclosure. They may pay their rent on time but still risk eviction if the property goes into foreclosure. To help minimize disruption to good tenants, Fannie Mae now allows them to stay in their homes with a month-to-month lease. The policy, which applies to properties owned by Fannie Mae, will help bring stability to communities affected by high foreclosure rates.
To qualify, renters must live in foreclosed properties at the time Fannie Mae acquires the property. Any single-family property is eligible including two- to four-unit properties, condos, co-ops, single-family detached homes and manufactured housing. The properties must meet state laws and local code requirements for a rental property. Fannie Mae will not require security deposits. The properties will remain on the market for sale.
Eligible renters will be offered a new month-to-month lease with Fannie Mae or financial assistance to move to new housing if they choose. Fannie Mae will manage the properties through a real estate broker or a property management company.
Rental rates under the new leases will be comparable to other rents in the same market and subject to any legal rent control restrictions. The company will review any instance where the market rate would increase the tenant’s rent and will work to reach an equitable resolution.
Friday, October 23, 2009
13 Extra Cost to be Aware of BEFORE Buying a Home
“The last thing you need are unexpected financial obligations cropping up hours before you take possession of your new home.” ....
Whether you're looking to buy your first home, or trading up to a larger one, there are many costs - on top of the purchase price - that you must figure into your calculation of affordability. These extra fees, such as taxes and other additional costs, could surprise you with an unwanted financial nightmare on closing day if you're not informed and prepared.
Some of these costs are one-time fixed payments, while others represent an ongoing monthly or yearly commitment. Not all of these costs will apply in every situation, however it's better to know about them ahead of time so you can budget properly.
Remember, buying a home is a major milestone. Whether it's your first, second or tenth home, there are many important details to address, during the process. The last thing you need are unexpected financial obligations cropping up hours before you take possession of your new home.
Read through the following checklist to make sure you're budgeting properly for your next move.
1. Appraisal Fee
Your lending institution may request an appraisal of the property which would be your responsibility to pay for. Appraisals can vary in price from approximately $250 -$ 450. This may be requested from you as an upfront cost.
2. Property Taxes
Depending on your down payment, your lending institution may decide to include your property taxes in your monthly mortgage payments. If your property taxes are not added to your monthly payments, your lending institution may require annual proof that your taxes have been paid.
3. Survey Fee
When the home you purchase is a resale (vs. a new home), your lending institution may ask for an updated property survey. The cost for this survey can vary between $1000- $1,500.
4. Property Insurance
Home insurance covers the replacement value of your home (structure and contents). Your lending institution will request proof that you are insured as it protects their investment on the loan.
5. Service Charges
Any new utility that services your hook up, such as telephone or cable, may require an installation fee.
6. Legal Fees
Even the simplest of home purchases should have a lawyer involved to review all paperwork. Shop around, as rates vary greatly depending on the complexity of the issues and the experience of the lawyer.
7. Mortgage Loan Insurance Fee
Depending upon the equity in your home, some mortgages require mortgage loan insurance. This type of insurance will cost you between 0.5% -3.5% of the total amount of the mortgage. Usually payments are made monthly in addition to your mortgage and tax payment.
8. Mortgage Brokers Fee
A mortgage broker is entitled to charge you a fee in order to source a lender and organize the financing. However, it pays to shop around because many mortgage brokers will provide their services free to you by having the lending institution absorb the cost.
9. Moving Costs
The cost for a professional mover can cost you in the range of:
$50-$100/hour for a van and 3 movers, and
10-20% higher during peak demand seasons.
10. HOA Fees/Working Capital
Condos charge monthly fees for common area maintenance such as grounds keeping and carpet cleaning in hallways. It is not uncommon for Condo Associations and HOA's to collect several months of these fees upfront. Costs will vary depending on the building.
11. Water Quality and Quality Certification
If the home you purchased is serviced by a well, you should consider having your water checked by your local experts. Where you live determines whether or not a fee is charged to certify the quantity and quality of the water.
12. Local Improvements
If the town you live in has made local improvements (such as the addition of sewers or sidewalks), it could impact a property’s taxes by thousands of dollars.
13. Land Transfer Tax
This tax is applied whenever property changes hands and the amount that is applied can vary. (Not applicable in all jurisdictions).
Whether you're looking to buy your first home, or trading up to a larger one, there are many costs - on top of the purchase price - that you must figure into your calculation of affordability. These extra fees, such as taxes and other additional costs, could surprise you with an unwanted financial nightmare on closing day if you're not informed and prepared.
Some of these costs are one-time fixed payments, while others represent an ongoing monthly or yearly commitment. Not all of these costs will apply in every situation, however it's better to know about them ahead of time so you can budget properly.
Remember, buying a home is a major milestone. Whether it's your first, second or tenth home, there are many important details to address, during the process. The last thing you need are unexpected financial obligations cropping up hours before you take possession of your new home.
Read through the following checklist to make sure you're budgeting properly for your next move.
1. Appraisal Fee
Your lending institution may request an appraisal of the property which would be your responsibility to pay for. Appraisals can vary in price from approximately $250 -$ 450. This may be requested from you as an upfront cost.
2. Property Taxes
Depending on your down payment, your lending institution may decide to include your property taxes in your monthly mortgage payments. If your property taxes are not added to your monthly payments, your lending institution may require annual proof that your taxes have been paid.
3. Survey Fee
When the home you purchase is a resale (vs. a new home), your lending institution may ask for an updated property survey. The cost for this survey can vary between $1000- $1,500.
4. Property Insurance
Home insurance covers the replacement value of your home (structure and contents). Your lending institution will request proof that you are insured as it protects their investment on the loan.
5. Service Charges
Any new utility that services your hook up, such as telephone or cable, may require an installation fee.
6. Legal Fees
Even the simplest of home purchases should have a lawyer involved to review all paperwork. Shop around, as rates vary greatly depending on the complexity of the issues and the experience of the lawyer.
7. Mortgage Loan Insurance Fee
Depending upon the equity in your home, some mortgages require mortgage loan insurance. This type of insurance will cost you between 0.5% -3.5% of the total amount of the mortgage. Usually payments are made monthly in addition to your mortgage and tax payment.
8. Mortgage Brokers Fee
A mortgage broker is entitled to charge you a fee in order to source a lender and organize the financing. However, it pays to shop around because many mortgage brokers will provide their services free to you by having the lending institution absorb the cost.
9. Moving Costs
The cost for a professional mover can cost you in the range of:
$50-$100/hour for a van and 3 movers, and
10-20% higher during peak demand seasons.
10. HOA Fees/Working Capital
Condos charge monthly fees for common area maintenance such as grounds keeping and carpet cleaning in hallways. It is not uncommon for Condo Associations and HOA's to collect several months of these fees upfront. Costs will vary depending on the building.
11. Water Quality and Quality Certification
If the home you purchased is serviced by a well, you should consider having your water checked by your local experts. Where you live determines whether or not a fee is charged to certify the quantity and quality of the water.
12. Local Improvements
If the town you live in has made local improvements (such as the addition of sewers or sidewalks), it could impact a property’s taxes by thousands of dollars.
13. Land Transfer Tax
This tax is applied whenever property changes hands and the amount that is applied can vary. (Not applicable in all jurisdictions).
Friday, October 9, 2009
Why NOW is the best time to buy a home?
Everywhere you turn today, you hear news about the housing market. Homes are taking longer to sell, new home builders are packing it in and leaving town, foreclosures are up in most markets nationwide, and lending guidelines are changing daily.
So, what does this mean for you? Well, if you’re in the market to buy a home, or even think you may be, now is THE BEST time to buy.
Well, lets start with the first best reason to buy:
LOW INTEREST RATES
Yes, interest rates are still very low. The Federal Reserve, once again, cut rates. So it will cost you less to borrow money, which means you keep more of what you make or can get more a larger. Interest rates, however, change constantly. The indexes that banks and lenders use to calculate their rates, are always changing and will continue to change. When I get my crystal ball out of the repair shop, I’ll be able to tell you what is to happen to our rates in the next 6 to 12 months. Interest rates could stay the same or even decrease once again. However, it is widely believed that rates will increase. And for those buyers that were priced out of the market just 3 years ago, low interest rates mean a real opportunity at home ownership.
LOTS OF INVENTORY
Take a look around. Have you noticed how many FOR SALE signs you see in people’s yards? There is such an abundance of homes for sale that many neighborhoods appear to have sign after sign, on block after block. So, how is this of benefit to the buyer? Simple, the buyer gets to see more homes that fit his/her criteria. They don’t have to feel as if it’s one or the other and they get more time to find the home that’s right for them instead of settling because they may lose their chance at home ownership.
AFFORDABILTY
The more houses on the market, the more competition for those wishing to sell. Particularly in neighborhoods where there are track homes (2 to 3 basic designs with a few higher priced options) many of the homes have some of the same features. So how will these sellers compete? Well, on price of course. So many sellers will reduce their asking price to get more buyers looking, or with a good Real Estate Broker, may be negotiated down to the price the buyer is willing to pay. This means big discounts for buyers. Some buyers are walking away from the closing table with tens of thousands in equity in their new home.
SELLER CONCESSIONS, DOWN PAYMENT ASSISTANCE, ETC..
Sellers have other ways of attracting buyers as well. Many will advertise a seller carry situation which is when the seller holds the note or offers to carry a second loan for the buyer* (THIS SHOULD ONLY BE CONSIDERED WHEN ADVISED BY A LENDING AND REAL ESTATE PROFESSIONAL TO PREVENT FRAUD AND FINANCIAL REPERCUSSIONS). Some sellers are paying for a year of HOA dues, assisting with down payments (WHEN ALLOWED BY THE LENDER), paying the buyer’s closing cost (WHEN ALLOWED BY THE LENDER), or paying for new appliances, upgrades, and/or home warranty. In this tough market, sellers are willing to give as much help to the buyer as legally possible. This is an absolutely advantageous situation for buyers and probably will not happen again for many, many, years, once the market rebounds.
There are also special programs and grants available through the State and Local Governments which could enable a first-time homebuyer to buy with little to no money down. There also is the matter of the up to $ 8,000 in Federal Tax Credit (for those who qualify). This tax credit is expiring less than 60 days (go to: www.ladylister.com to see the counter). While there is much talk about extending this program, there have not been any concrete decided.
All of these reasons make NOW, the best time to look into home ownership or real estate investment. For more information or to discuss your particular situation, contact me.
Until next time……
Cynthia
Friday, October 2, 2009
What To Do If You Are Facing Foreclosure
First, you are not alone. There are many Americans facing the exact same situation you are. Many of them, don’t know just how close they are to foreclosure. Here are a few of the warning signs that you are nearing possible foreclosure, followed by some terms to review with your lender to see if any of these are options for you. Finally, a couple of helpful links are provided, as resources.
Signs you may be near foreclosure:
• Maxing out credit cards
• Using credit to pay for day-to-day expenses, such as groceries, utilities, etc.
• Being unable to pay your bills on time
• Paying only the minimum amount on credit cards
• Applying for new credit cards after maxing out on existing ones
• Having to choose which bills to pay
Understanding the terms:
If you are working with your lender to keep your home, known as retention, there are several options:
Reinstatement: Your lender may agree to let you pay the total amount you are behind, in a lump sum payment and by a specific date. This is often combined with forbearance when you can show that funds from a bonus, tax refund, or other source will become available at a specific time in the future. Be aware that there may be late fees and other costs associated with a reinstatement plan.
Forbearance: Your lender may offer a temporary reduction or suspension of your mortgage payments while you get back on your feet. Forbearance is often combined with a reinstatement or a repayment plan to pay off the missed or reduced mortgage payments.
Repayment Plan: This is an agreement that gives you a fixed amount of time to repay the amount you are behind by combining a portion of what is past due with your regular monthly payment. At the end of the repayment period you have gradually paid back the amount of your mortgage that was delinquent.
Loan modification: This is a written agreement between you and your mortgage company that permanently changes one or more of the original terms of your note to make the payments more affordable.
If you and your lender agree that you can not keep your home...
There are a number of liquidation terms you should understand:
Short Payoff (also referred to as a Short Sale): If you can sell your house but the sale proceeds are less than the total amount you owe on your mortgage, your mortgage company may agree to a short payoff and write off the portion of your mortgage that exceeds the net proceeds from the sale. If this is an option for you, we have a network of experienced Real Estate Brokers to assist you.
Deed-in-lieu of foreclosure: A Deed-in-lieu of foreclosure is a cancellation of your mortgage if you voluntarily transfer title of your property to your mortgage company. Usually you must try to sell your home for its fair market value for at least 90 days before a mortgage company will consider this option. A deed-in-lieu of foreclosure may not be an option if there are other liens on the property, such as second mortgages, judgments from creditors, or tax liens.
Assumption: An assumption permits a qualified buyer to take over your mortgage debt and make the mortgage payments, even if the mortgage is non-assumable. As a result, you may be able to sell your property and avoid foreclosure.
While refinancing is not necessarily a good option when facing foreclosure and can sometimes even be a predatory practice, there are instances where it may help. Talk to your lender to see if refinancing is an option for you.
Loan Modification: A loan modification is very similar to a lower interest refinance where the lender lowers the interest rate on the existing loan to lower
the payments.
A list of DO's and DON'Ts to remember when going through this difficult time:
• DO answer the phone and read your mail. Avoiding your lender won't make the problem go away. In fact, it will only make the problem worse. Your lender may be able to help you, so be sure to answer the phone and read any mail they may have sent you.
• DO realistically assess your situation. Are your financial problems temporary? If you are temporarily out of work and will be fine once you find a new job, call your lender. Lenders may be able to offer a forbearance or repayment plan.
• DO consider your options. If you are not in a position to keep your home, consider selling it before you face a foreclosure. If you have already missed a mortgage payment, call your lender. There may be purchase options, like a short payoff or assumption (see links and resource section) that help avoid foreclosure. Talk to a lawyer or legal aid organization. Your rights vary from state to state. Most states and large cities have legal aid organizations; to find one near you, go to the Legal Services Corporation, a government-sponsored organization that provides high-quality civil legal assistance to low-income Americans.
• DO be aware of certain financial responsibilities. Even if your lender sells your property, you may still be responsible for the difference in the sale price and what you owe. It is also important to realize that you may be responsible for certain taxes when a lender forecloses on your property. However, the IRS does provide tax relief in certain situations.
• DO protect your wealth. Recognize that you may have significant equity in your property that must be preserved.
• DON'T move out of your home. In order to qualify for assistance, homeowners are often required to be living in their home. Be sure to talk to your lender before you think about moving.
• DON'T ignore the problem. It may be possible to keep your home, but if you wait to take action, fewer options will be available. You have certain rights and can take certain actions to help you keep your home; however, you only have a limited amount of time to assert those rights or take those actions.
• DON'T convince yourself you can afford a home if you can't. Most lenders will only lend what a borrower can afford, but some less scrupulous lenders will allow borrowers to get in over their heads. In some cases, a home that was affordable becomes unaffordable due to changes in your life circumstances. If your mortgage is truly beyond your means, consider selling your home and purchasing a less expensive home or renting for a period of time before the only option left is foreclosure. Call your mortgage company; they may be able to help you avoid foreclosure by agreeing to an assumption or a short payoff.
• DON'T ignore the problem. It may be possible to keep your home, but if you wait to take action, fewer options will be available. You have certain rights and can take certain actions to help you keep your home; however, you only have a limited amount of time to assert those rights or take those actions. Talk to a lawyer or legal aid organization, since your rights vary from state to state. Most states and large cities have legal aid organizations; to find one near you, go to a government-sponsored organization that provides high-quality civil legal assistance to low-income Americans.
• DON'T fall victim to a scheme. Some people want to profit by your misfortune by offering to contact and conduct all work-outs and negotiations with your lender on your behalf – for a fee. ONLY talk to legitimate Realtors ®, Lawyers, Counselors, or your lender DIRECTLY!!!
Helpful links and hotlines: http://www.housinghelpnow.org/ , http://www.hopenow.com/
http://www.makinghomeaffordable.gov/
Foreclosure hotline: 1-888-995-HOPE
Signs you may be near foreclosure:
• Maxing out credit cards
• Using credit to pay for day-to-day expenses, such as groceries, utilities, etc.
• Being unable to pay your bills on time
• Paying only the minimum amount on credit cards
• Applying for new credit cards after maxing out on existing ones
• Having to choose which bills to pay
Understanding the terms:
If you are working with your lender to keep your home, known as retention, there are several options:
Reinstatement: Your lender may agree to let you pay the total amount you are behind, in a lump sum payment and by a specific date. This is often combined with forbearance when you can show that funds from a bonus, tax refund, or other source will become available at a specific time in the future. Be aware that there may be late fees and other costs associated with a reinstatement plan.
Forbearance: Your lender may offer a temporary reduction or suspension of your mortgage payments while you get back on your feet. Forbearance is often combined with a reinstatement or a repayment plan to pay off the missed or reduced mortgage payments.
Repayment Plan: This is an agreement that gives you a fixed amount of time to repay the amount you are behind by combining a portion of what is past due with your regular monthly payment. At the end of the repayment period you have gradually paid back the amount of your mortgage that was delinquent.
Loan modification: This is a written agreement between you and your mortgage company that permanently changes one or more of the original terms of your note to make the payments more affordable.
If you and your lender agree that you can not keep your home...
There are a number of liquidation terms you should understand:
Short Payoff (also referred to as a Short Sale): If you can sell your house but the sale proceeds are less than the total amount you owe on your mortgage, your mortgage company may agree to a short payoff and write off the portion of your mortgage that exceeds the net proceeds from the sale. If this is an option for you, we have a network of experienced Real Estate Brokers to assist you.
Deed-in-lieu of foreclosure: A Deed-in-lieu of foreclosure is a cancellation of your mortgage if you voluntarily transfer title of your property to your mortgage company. Usually you must try to sell your home for its fair market value for at least 90 days before a mortgage company will consider this option. A deed-in-lieu of foreclosure may not be an option if there are other liens on the property, such as second mortgages, judgments from creditors, or tax liens.
Assumption: An assumption permits a qualified buyer to take over your mortgage debt and make the mortgage payments, even if the mortgage is non-assumable. As a result, you may be able to sell your property and avoid foreclosure.
While refinancing is not necessarily a good option when facing foreclosure and can sometimes even be a predatory practice, there are instances where it may help. Talk to your lender to see if refinancing is an option for you.
Loan Modification: A loan modification is very similar to a lower interest refinance where the lender lowers the interest rate on the existing loan to lower
the payments.
A list of DO's and DON'Ts to remember when going through this difficult time:
• DO answer the phone and read your mail. Avoiding your lender won't make the problem go away. In fact, it will only make the problem worse. Your lender may be able to help you, so be sure to answer the phone and read any mail they may have sent you.
• DO realistically assess your situation. Are your financial problems temporary? If you are temporarily out of work and will be fine once you find a new job, call your lender. Lenders may be able to offer a forbearance or repayment plan.
• DO consider your options. If you are not in a position to keep your home, consider selling it before you face a foreclosure. If you have already missed a mortgage payment, call your lender. There may be purchase options, like a short payoff or assumption (see links and resource section) that help avoid foreclosure. Talk to a lawyer or legal aid organization. Your rights vary from state to state. Most states and large cities have legal aid organizations; to find one near you, go to the Legal Services Corporation, a government-sponsored organization that provides high-quality civil legal assistance to low-income Americans.
• DO be aware of certain financial responsibilities. Even if your lender sells your property, you may still be responsible for the difference in the sale price and what you owe. It is also important to realize that you may be responsible for certain taxes when a lender forecloses on your property. However, the IRS does provide tax relief in certain situations.
• DO protect your wealth. Recognize that you may have significant equity in your property that must be preserved.
• DON'T move out of your home. In order to qualify for assistance, homeowners are often required to be living in their home. Be sure to talk to your lender before you think about moving.
• DON'T ignore the problem. It may be possible to keep your home, but if you wait to take action, fewer options will be available. You have certain rights and can take certain actions to help you keep your home; however, you only have a limited amount of time to assert those rights or take those actions.
• DON'T convince yourself you can afford a home if you can't. Most lenders will only lend what a borrower can afford, but some less scrupulous lenders will allow borrowers to get in over their heads. In some cases, a home that was affordable becomes unaffordable due to changes in your life circumstances. If your mortgage is truly beyond your means, consider selling your home and purchasing a less expensive home or renting for a period of time before the only option left is foreclosure. Call your mortgage company; they may be able to help you avoid foreclosure by agreeing to an assumption or a short payoff.
• DON'T ignore the problem. It may be possible to keep your home, but if you wait to take action, fewer options will be available. You have certain rights and can take certain actions to help you keep your home; however, you only have a limited amount of time to assert those rights or take those actions. Talk to a lawyer or legal aid organization, since your rights vary from state to state. Most states and large cities have legal aid organizations; to find one near you, go to a government-sponsored organization that provides high-quality civil legal assistance to low-income Americans.
• DON'T fall victim to a scheme. Some people want to profit by your misfortune by offering to contact and conduct all work-outs and negotiations with your lender on your behalf – for a fee. ONLY talk to legitimate Realtors ®, Lawyers, Counselors, or your lender DIRECTLY!!!
Helpful links and hotlines: http://www.housinghelpnow.org/ , http://www.hopenow.com/
http://www.makinghomeaffordable.gov/
Foreclosure hotline: 1-888-995-HOPE
Friday, September 25, 2009
EXPIRED: How to Sell a House that Didn't Sell!
EXPIRED: How to Sell a House that Didn't Sell
"...before you put your home back on the market, take a step back and review your situation..."
4 Important Points That Will Get Your house Sold!
If your home has just come off the market and hasn't sold, don't be discouraged. The reason it didn't sell may have nothing to do with your home or the market. In reality, your home may have been one of the more desirable properties for sale. If your listing has expired and you still want results, before you put your home back on the market, take a step back and review your situation.
Q. Where should you begin?
A. Start by making a commitment to do what it takes to market your house to get it sold. With the right system, the home sale you want is still well within reach.
Q. Why didn't your home sell?
A. Review your previous selling plan and you'll discover that an expired listing usually reflects a problem in one or more of these four major areas:
Teamwork, Pricing, Condition of Your Home, and Marketing.
1. Teamwork
Your home is a major financial investment, and your relationship with your Realtor® should be a full partnership where your needs and wishes are heard, and you receive detailed and dependable feedback on the progress of your sale. Your agent has a responsibility to source this feedback from the agents who have shown your home, and to communicate this to you so together you can make the right decisions about what to do next. How well did this occur the last time you had your home up for sale?
2. Pricing
Did price work for or against you? The "right" price depends on market conditions, competition and the condition of your home. Pricing it too high is as dangerous as pricing it too low. If your home doesn't compare favorably with others in the price range you've set, you won't be taken seriously by prospects or agents.
You'll get the facts when you see the statistics!
To help you establish a realistic selling price for your home, ask your agent to provide you with an up-to-date competitive market analysis to give you:
a review of comparable homes recently sold or currently for sale,
an idea of how long other homes have been listed, in order to calculate an average time in which a home can sell in today's market,
a review of homes whose listings have expired, to understand what issues were at play.
Note: There is no mention of how much you paid for your home or its improvements. Like any other investment, the market value is determined by what a willing buyer will pay and a willing seller will accept.
3. Condition of Your Home
Show Case Quality! Is your house someone else's idea of a dream home? When buyers enter are they inspired? Do they think, "I love this house!" Remember, the decision to buy a home is based on emotion, not logic.
A house in move-in condition invites a sale.
You need to consider:
4. Marketing
....Marketing Your Home To Sell! Some Questions You Should Be Asking!
One of the first steps in your marketing plan involves finding an agent who will best represent you. When interviewing agents, test and compare their knowledge and ask each to demonstrate how they will market your home to buyers. Also compare how much money each spends on advertising the homes s/he lists, in what media (newspaper, magazine, etc.) and the effectiveness of one medium over the other. Remember, it's not just how much they spend, but how they spend it.
Say goodbye to any real estate agents using old, traditional methods to sell your home because they don't work in today's market!
To be competitive in today's marketplace, agents who use new and innovative, non-traditional marketing approaches are the ones who are getting more homes sold fast and for top dollar.
Buyers are Out There...And They Will Come!
Before You Put Your Home Back on the Market remember:
"...before you put your home back on the market, take a step back and review your situation..."
4 Important Points That Will Get Your house Sold!
If your home has just come off the market and hasn't sold, don't be discouraged. The reason it didn't sell may have nothing to do with your home or the market. In reality, your home may have been one of the more desirable properties for sale. If your listing has expired and you still want results, before you put your home back on the market, take a step back and review your situation.
Q. Where should you begin?
A. Start by making a commitment to do what it takes to market your house to get it sold. With the right system, the home sale you want is still well within reach.
Q. Why didn't your home sell?
A. Review your previous selling plan and you'll discover that an expired listing usually reflects a problem in one or more of these four major areas:
Teamwork, Pricing, Condition of Your Home, and Marketing.
1. Teamwork
Your home is a major financial investment, and your relationship with your Realtor® should be a full partnership where your needs and wishes are heard, and you receive detailed and dependable feedback on the progress of your sale. Your agent has a responsibility to source this feedback from the agents who have shown your home, and to communicate this to you so together you can make the right decisions about what to do next. How well did this occur the last time you had your home up for sale?
2. Pricing
Did price work for or against you? The "right" price depends on market conditions, competition and the condition of your home. Pricing it too high is as dangerous as pricing it too low. If your home doesn't compare favorably with others in the price range you've set, you won't be taken seriously by prospects or agents.
You'll get the facts when you see the statistics!
To help you establish a realistic selling price for your home, ask your agent to provide you with an up-to-date competitive market analysis to give you:
a review of comparable homes recently sold or currently for sale,
an idea of how long other homes have been listed, in order to calculate an average time in which a home can sell in today's market,
a review of homes whose listings have expired, to understand what issues were at play.
Note: There is no mention of how much you paid for your home or its improvements. Like any other investment, the market value is determined by what a willing buyer will pay and a willing seller will accept.
3. Condition of Your Home
Show Case Quality! Is your house someone else's idea of a dream home? When buyers enter are they inspired? Do they think, "I love this house!" Remember, the decision to buy a home is based on emotion, not logic.
A house in move-in condition invites a sale.
You need to consider:
Fixing all the little squeaks and cracks
Keeping it clean for all showings
Making it uncluttered
Brightening it up
What your home shows like from the street concentrating on outside curb appeal.
Plus - Consider taking care of major items, such having your home painted. Offering an allowance to your prospective buyers, so they can have painting completed is not the same as having done it for them. Now, as they're trying to imagine what that new paint job will look like, they may also be discounting the price even further because of the less-than-perfect look of those walls.
Remember....
A house that presents well, sells for the best price because it outshines the competition. Ask your agent if they can arrange a no-obligation inspection of your home to help you assess the above.
4. Marketing
....Marketing Your Home To Sell! Some Questions You Should Be Asking!
One of the first steps in your marketing plan involves finding an agent who will best represent you. When interviewing agents, test and compare their knowledge and ask each to demonstrate how they will market your home to buyers. Also compare how much money each spends on advertising the homes s/he lists, in what media (newspaper, magazine, etc.) and the effectiveness of one medium over the other. Remember, it's not just how much they spend, but how they spend it.
Say goodbye to any real estate agents using old, traditional methods to sell your home because they don't work in today's market!
To be competitive in today's marketplace, agents who use new and innovative, non-traditional marketing approaches are the ones who are getting more homes sold fast and for top dollar.
Buyers are Out There...And They Will Come!
Before You Put Your Home Back on the Market remember:
- Effective communication is vital between you and your agent.
- Price your home according to market conditions, competition and the condition of your house.
- Be sure your house is in showcase, buyer ready-condition.
- Have an innovative marketing plan firmly set in place.
Saturday, September 12, 2009
Pet Owners: Tips to Make Your Move Easier on Your Pets
PET OWNERS:Tips to Make Your Move Easier on Your Pets
"It is best to remove your pets from the house BEFORE you start moving your possessions. Allowing your pets to roam free in the house while the front door is propped wide open, and people are rushing in and out lugging boxes and furniture – just creates a recipe for disaster."
Moving can be hard on everyone involved. Adults, kids, and yes…even your pets! While your pet may not understand exactly what is going on, they can sense the stress (good or bad) that the whole family is experiencing. Add to that the fact that animals are creatures of habit and do not like changes to their usual routine, and you can understand why they become so confused. They also become quite anxious when all of a sudden, they see their human family busily throwing everything around them into boxes. Naturally, we always want to keep our pets happy and healthy because we love them…but we also want to lessen the chances of their "acting-out". Animals, just like people, can behave rather badly when under stress, and so we need to do all we can to help them feel secure throughout the moving process. What we really need to know is: when faced with an upcoming move, how do we reduce the amount of stress that our pets are going to experience, and what can we do about the unavoidable disruption to their daily routine? We posed this very question to industry experts, took their invaluable input, and created the following list of tips.
TIPS: During The Packing Process
• Try to keep your pet’s daily routine as close to normal as possible. Adhering to his usual feeding, exercise, and bedtime schedule is important.
• When packing, leave your pet’s belongings to last. If possible, allow your pet continued access to his same food dishes, litter box, pet bed, and toys right up until moving day.
• Lessen the chances of there being any "mistakes" by keeping your cat’s litter box in the usual spot, right up until you load him into the car – or until you confine him to a "transition room".
• Leave a couple of empty packing boxes open on the floor for your pet to explore. Allowing your pet to familiarize himself with these new, strange objects will prevent him from being afraid of them.
TIPS: Moving Day
• It is best to remove your pets from the house BEFORE you start moving your possessions. Allowing your pets to roam free in the house while the front door is propped wide open, and people are rushing in and out lugging boxes and furniture – just creates a recipe for disaster.
• If it is not possible to remove your pets beforehand, then you should select an empty room with a door to safely house them for the day. Place their food and water dishes, toys, bedding and litter box in the room with them. Many pets find the background noise of a radio comforting, and it helps to muffle some of the loud and unsettling noises that come from moving heavy furniture and boxes.
• Be sure to put collars with identification tags on your dogs and cats, as many pets do escape during the confusion of moving day. To avoid possible injury to your cat, always use a breakaway collar. Although many pets today are microchipped, having your pet wear a collar remains a good idea, as only pet care industry workers have access to the tool that reads the chip, while anyone can read your name and phone number on a tag.
• For transportation to the new home, cats should be placed in a cat carrier on the floor of the back seat, and dogs should be properly restrained. Dogs should either ride in the back of the vehicle, separated from passengers by a dog grate, or should sit in the back seat, strapped into a dog seat belt. This protects both your dog, and the passengers in the vehicle – a quick stop can send your dog hurtling forward, seriously injuring her, and those in her path.
• Never leave your pet unattended in a vehicle. While the temperature in the car may seem just a little warm to you, animals overheat very quickly. Sadly, every year there are thousands of pets who succumb to heatstroke as a direct result of being left in a hot car.
• Bring your pet’s dishes, food, leash, toys, bedding, litter box, and any medications in the car with you and your pet. Providing consistency for your pet is important, so when you arrive at your new home, set up your pet’s things in those spots where you intend on keeping them.
TIPS: Introducing Your Pet to their New Home
• Before releasing your pet into his new backyard, take a quick safety check. Is the fence in good shape – no spaces for your pet to wiggle through, or under? Can your pet reach the neighbor’s pet through the fence, and if so, is he/she friendly? Are there any sharp objects that could pose a hazard to your pet? What about plants – are there any that could be harmful to your pet if she decided to devour them? Is there any garbage lying around for your pet to get into? Is there shade available for your pet? After running through all of these checks, be sure to leave a large, cool, bowl of water for your pet, and spend some time just sitting in the backyard with him.
• It is recommended that cats remain indoors. One study reported that cats who are allowed to roam free outside have an average life span of only 3 years, while indoor cats can be expected to live for an average of 13 years. If your cat has been allowed to roam in the past, now is the ideal time to break him of this habit. If you keep your cat indoors from day one in the new house, he will not have had time to establish his own turf outside – and will view the indoors as his sole territory.
• Again, select a room with a door for your cat to use as her "transition room". Place an extra litter box, food and water dishes, toys, and bedding inside with your cat. After a couple of days, when most of the boxes have been unpacked, the furniture placed, and things have generally calmed down – open the door and allow your cat to venture out. Before moving her belongings to where you want to keep them, allow your cat the use of the room for another 2 or 3 days while she becomes more confident in her new surroundings.
TIPS: Small Pets
• Birds, lizards, rabbits and other small animals are much easier to move, as they are normally used to being housed in a cage, or at least are accustomed to regularly spending “quiet time” in one. To make the journey to their new home safely, they should be kept in their cage, or placed into an appropriately sized pet carrier before being loaded into your car.
• Placing a light weight cloth over your small pet’s cage will help to keep him quiet and calm during the car ride; just be sure to allow adequate air flow.
• Be sure to leave some food and fresh water in with your pet. Most small animals do well with a drinking bottle that is easily attached to most cages. Remember to bring your pet’s supply of food, feeding dishes, and any medications with you in the car.
• Small animals overheat even faster than large animals, so again, never leave your pets unattended in a vehicle.
For more information on how to make moving easier on your pets, or if your pet has a pre-existing medical condition that requires special care, please contact your veterinarian for advice.
Monday, September 7, 2009
How to Avoid Costly Housing Mistakes in the Midst of a Divorce
Divorce is a tough situation which opens up many emotional and financial issues to be solved. One of the most important decisions is what to do about the house. In the midst of the heavy emotional and financial turmoil, what you need most is some non-emotional, straight-forward, specific answers. Once you know how a divorce affects your home, your mortgage and taxes, critical decisions are easier. Neutral, third party information can help you make logical, rather than emotional decisions. Probably the first decision is whether you want to continue to living in the house. Will the familiar surroundings bring you comfort and emotional security, or unpleasant memories? Do you want to minimize change by staying where you are, or sell your home and move to a new place that offers a new start?
Only you can answer these questions, but there will almost certainly be some financial repercussions to your decision process. What can you afford? Can you manage the old house on your new budget? Is refinancing possible? Or is it better to sell and buy? How much house can you buy on your new budget? The purpose of this report is to help you ask the right questions so you can make informed decisions that will be right for your situation.
4 OPTIONS…….
You have 4 basic housing options when in the midst of a divorce:
1. Sell the house now and divide the proceeds.
2. Buy out your spouse.
3. Have your spouse buy you out.
4. Retain your ownership.
It’s important for you to understand the financial implications of each of these scenarios.
1. Sell the House Now and Divide Up the Proceeds
Your primary consideration under these circumstances is to maximize your homes selling price. We can help you avoid the common mistakes most homeowners make which compromise this outcome. As you work to get your financial affairs in order, make sure you understand what your net proceeds will be - i.e. after selling expenses, and after determining what your split of the proceeds will be. Note that the split may not be 50/50, but rather may depend on the divorce settlement, the source of the original down payment, and the legislative property laws in your area.
2. Buy Out Your Spouse
If you intend to keep the house yourself, you’ll have to determine how you’ll
continue to meet your monthly financial obligations, if you now only have one salary. If you used two incomes to qualify for the old loan, refinancing on your own might be a challenge.
3. Have Your Spouse Buy You Out
If you are the one who is leaving, you have the opportunity to start again in new surroundings with cash in your pocket. However, be aware that if the old home loan is not refinanced, most lenders will consider both you and your spouse as original co-signers to be liable for the mortgage. This liability may make qualifying for a new mortgage difficult for you if you decide to purchase a home, even though you won’t have legal ownership.
4. Retain Joint Ownership
Some divorcing couples postpone a financial decision with respect to the home and retain joint ownership for a period of time even though only one spouse lives there. While this temporary situation means you have no immediate worries in this regard, keep your eye on tax considerations which may change from the time of your divorce to the time of the ultimate sale.
When You Decide to Sell
If you and your spouse decide to sell your home, it will be important to work
together through a professional to maximize your return. Differences
aside, you both should be present when a listing contract is put together.
Both of you should understand and sign this contract, and both should be
active in the ultimate negotiations.
When You Buy Your Next Home
Use the proceeds from your previous home or buy out to determine an affordable price range for your next home. Maintain a clear focus on getting the right home to suit your new situation. You may wish to review with an agent who offers a house-hunting service to help find a home that matches your new home buying criteria.
As with any pending legal matter, it is important to seek competent legal counsel.
Only you can answer these questions, but there will almost certainly be some financial repercussions to your decision process. What can you afford? Can you manage the old house on your new budget? Is refinancing possible? Or is it better to sell and buy? How much house can you buy on your new budget? The purpose of this report is to help you ask the right questions so you can make informed decisions that will be right for your situation.
4 OPTIONS…….
You have 4 basic housing options when in the midst of a divorce:
1. Sell the house now and divide the proceeds.
2. Buy out your spouse.
3. Have your spouse buy you out.
4. Retain your ownership.
It’s important for you to understand the financial implications of each of these scenarios.
1. Sell the House Now and Divide Up the Proceeds
Your primary consideration under these circumstances is to maximize your homes selling price. We can help you avoid the common mistakes most homeowners make which compromise this outcome. As you work to get your financial affairs in order, make sure you understand what your net proceeds will be - i.e. after selling expenses, and after determining what your split of the proceeds will be. Note that the split may not be 50/50, but rather may depend on the divorce settlement, the source of the original down payment, and the legislative property laws in your area.
2. Buy Out Your Spouse
If you intend to keep the house yourself, you’ll have to determine how you’ll
continue to meet your monthly financial obligations, if you now only have one salary. If you used two incomes to qualify for the old loan, refinancing on your own might be a challenge.
3. Have Your Spouse Buy You Out
If you are the one who is leaving, you have the opportunity to start again in new surroundings with cash in your pocket. However, be aware that if the old home loan is not refinanced, most lenders will consider both you and your spouse as original co-signers to be liable for the mortgage. This liability may make qualifying for a new mortgage difficult for you if you decide to purchase a home, even though you won’t have legal ownership.
4. Retain Joint Ownership
Some divorcing couples postpone a financial decision with respect to the home and retain joint ownership for a period of time even though only one spouse lives there. While this temporary situation means you have no immediate worries in this regard, keep your eye on tax considerations which may change from the time of your divorce to the time of the ultimate sale.
When You Decide to Sell
If you and your spouse decide to sell your home, it will be important to work
together through a professional to maximize your return. Differences
aside, you both should be present when a listing contract is put together.
Both of you should understand and sign this contract, and both should be
active in the ultimate negotiations.
When You Buy Your Next Home
Use the proceeds from your previous home or buy out to determine an affordable price range for your next home. Maintain a clear focus on getting the right home to suit your new situation. You may wish to review with an agent who offers a house-hunting service to help find a home that matches your new home buying criteria.
As with any pending legal matter, it is important to seek competent legal counsel.
Saturday, September 5, 2009
Why Real Estate Whack-A-Mole?
What's a Real Estate Whack-A-Mole? And why have you named your Blog that?
Well, have you ever played Whack-A-Mole? If you have, then you understand the anxiety-filled, hurried, aggressive, nature of the game. You stand there, on the ready, with your club in hand. When a mole raises it's head, you Whack It. Another raises it's head, you whack it. Once you hit a mole with all your might, another mole pops up. So you begin to try to anticipate where the next mole will pop-up and be ready for it. However, you never really know where the next mole will pop-up. Pretty soon, more moles are poping up than you can whack. You become overwhelmed, and out-moled. YOU LOSE!!!
Now, a real estate transaction is NOT A GAME. However, because of the unpredictability, anxiety, stress, pressure, and uncertainty, some of us have had with our sales and/or purchases, our transactions were a lot like Whack-A-Mole. So, with that in mind, I decided to name this blog after one of my FAVORITE carnival games.
This blog will be a forum for dissemination of valuable info and to dispel the common "myth-understandings" and down right misrepresentaions of the real estate transaction. Hopefully, this will help relieve some of the stress, anxiety, and uncertainty of real estate sales and purchases. It's 100% FREE and interactive. If you like what you read, feel free to drop me a line and let me know. I'd love to hear from you! If you have suggestions for topics, I'd love to hear those too!
Well, have you ever played Whack-A-Mole? If you have, then you understand the anxiety-filled, hurried, aggressive, nature of the game. You stand there, on the ready, with your club in hand. When a mole raises it's head, you Whack It. Another raises it's head, you whack it. Once you hit a mole with all your might, another mole pops up. So you begin to try to anticipate where the next mole will pop-up and be ready for it. However, you never really know where the next mole will pop-up. Pretty soon, more moles are poping up than you can whack. You become overwhelmed, and out-moled. YOU LOSE!!!
Now, a real estate transaction is NOT A GAME. However, because of the unpredictability, anxiety, stress, pressure, and uncertainty, some of us have had with our sales and/or purchases, our transactions were a lot like Whack-A-Mole. So, with that in mind, I decided to name this blog after one of my FAVORITE carnival games.
This blog will be a forum for dissemination of valuable info and to dispel the common "myth-understandings" and down right misrepresentaions of the real estate transaction. Hopefully, this will help relieve some of the stress, anxiety, and uncertainty of real estate sales and purchases. It's 100% FREE and interactive. If you like what you read, feel free to drop me a line and let me know. I'd love to hear from you! If you have suggestions for topics, I'd love to hear those too!
Subscribe to:
Posts (Atom)