Home Selling Mistakes

People say the best days to own a boat are the day you buy the boat and the day you sell it. That's not true when it comes to home ownership, unless, maybe, you live on a boat. The best days in home ownership are when you buy a home and all the way through until the day you decide to sell.

Lots of home owners cry when they sell. Before the ink is dry on the listing agreement, eyes often swell with tears, and we're not talking about the listing agent. That's because sellers have developed relationships with their homes. Homes hold treasured memories. It's common for sellers to be very emotional about their home. Some are overcome by seller's remorse. However, some sellers weep for a different reason. They sob because they can't sell their home.

Home is Priced Too High

• By far, the worst home selling mistake a seller can make is hanging the wrong price tag on a home. If the home is priced too high, buyers won't look at it. If it's priced too low, sellers worry that they'll give away profits.

• Pricing a home to sell is an art. Part of the market value is based on comparable sales, but other factors to consider include market movement, demand, the home's location and its condition.

• If the home is overpriced, buyers might submit lowball offers, which tend to result in an immediate offer rejection. These extremely low offers tend to infuriate and insult sellers.

• Some agents deliberately overstate the value of a home and push a seller to sign an overpriced listing. There are many reasons why agents do this, but the bottom line is sellers lose a competitive edge when later reducing the price. The bottom line is sellers who "test the market" get stung.

Home is in Bad Condition

• Getting your house ready for market goes beyond making the beds and washing dirty dishes. Although I've seen plenty of homes with toys scattered throughout and dishes piled in the sink; buyers can't get out of those homes fast enough. There are at least 10 essential steps to take to preparing the home for sale.

• Some homes need updating and quick fixes. Doing repairs before resale can boost chances of quickly selling. If items are broken or buyers see deferred maintenance, they wonder what else is wrong. It's more expensive, actually, not to fix the house.

• Dressing your home for showings is called staging a home. Think of the process like arranging flowers in an attractive vase. If you or your agent lack the vision or ability to stage, consider hiring a professional home stager.

Home is Marketed Wrong

• Whenever I see a badly shot photograph in MLS, and perhaps it's the only photo, I want to shake the agent and scream, "What are you thinking?" But agents and sellers make plenty of marketing mistakes.

• The battle cry of frustrated sellers is: "Why isn't my home selling?" These are likely sellers who are not employing marketing strategies designed to expose a home to the largest pool of buyers. Here are 10 good marketing tips that take the guesswork out of selling your home.

• Once a buyer has entered a home, the marketing continues. To increase the chances that a buyer will entertain an offer, here are 10 home showing tips.

(Article from About.com)

60 Minutes on Foreclosures

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Curb Appeal How-To

Walk across the street from your house, turn around, take a good look at your yard and ask yourself if you're impressed by what you see -- or just plain depressed.

We can't all have yards worthy of being on the cover of a landscaping magazine. Those yards generally come with a high price tag. But a little cash can go a long way to improve your home's curb appeal. In fact, with existing homes selling at the slowest rate in a decade, if your house will be on the market, you can't afford not to spend some money and time on landscaping that will distinguish your house from others.

So we asked landscape professionals how homeowners could get the most bang for their landscaping buck within certain budgets: $100, $500, $1,000 and $2,000. They even threw in a few ideas for ways you can improve your yard without spending a cent.

Make a plan first

Regardless of your budget, before you grab a shovel or head to a nearby garden center, you need to determine your goals and ask yourself some questions to ensure your money is well spent, says Tara Vincenta, founder of Artemis Landscape Architects, in Brookfield, Conn.

Are you trying to improve your yard so you can enjoy it for years to come or to increase your chances of selling your house? Do you live in the city, 'burbs or countryside? What is your home's architectural style? Do you live in a wet or arid climate? Are deer or other wildlife an issue? "All these considerations can affect your approach," Vincenta says.

You don't want to waste money on plants that require full sun if your yard is in the shade. Nor do you want to try to replicate that cool, modern landscape design you saw on TV with your Victorian home -- especially if you're trying to sell it. The kind of person who would be interested in your home would want a garden that complements it.

"Do research before you go to a garden center and buy at random, or you'll end up with a hodgepodge," Vincenta says.

For $100, you can ...

Create a welcoming entrance with one or two big pots filled with colorful plants. "A plant in a pot looks much bigger than when you put it in the ground," says landscape architect Sam Williamson, owner of Samuel H. Williamson Associates, in Portland, Ore.

Make a significant impact on your landscape with a few 5-gallon trees for about $35 each, if you plan to stay in your home for at least five years, says landscape architect David Keith, owner of Arbor Studio, in Blanco, Tex. Smaller trees also tend to acclimate better.

Buy seeds, such as a mix of wildflowers, and cover much more ground than $100 worth of plants.

For $500, you can ...

Invest in a couple of great architectural pots that make a statement at your entrance, Vincenta says. Add rounded boxwoods for a classic look, or try a seasonal planting of ornamental grasses, and colorful annuals and trailing plants for an eye-catching display.

Add a bench or garden ornament, such as a trellis or birdbath, to a key spot or a nice mailbox and with some plantings for at? the base.

Pay someone to professionally prune or selectively remove (and replace) overgrown bushes.

Spruce up your foundation plantings with a border of long-blooming perennials. Vincenta says to use just two varieties (a dozen or more of each) for more impact and add fresh mulch for a professional look.

For $1,000, you can ...

Redo an area of your garden or even a small backyard, Williamson says.

Hire a landscape designer or architect to create a plan that you can install or to develop a solution to a nagging problem in your yard, says landscape architect Andy Wright, of Landworks, in Edwardsville, Kan.

Add several evergreen plants, both trees and shrubs, to punctuate an entrance, create year-round color in your yard or block a bad view.

Go green by creating a rain garden that will capture and filter runoff from your roof. Vincenta says there are a lot of resources online to help you.

Remove your lawn and replace it with meadow grasses, wildflowers or ground cover. The larger the portion of lawn you remove, the less time and money you'll spend on mowing and fertilizing grass, say both Keith and landscape desinger Barry Block, owner of Barry Block Landscape Design & Contracting, in East Moriches, N.Y.

Install landscape lighting to illuminate the path to your front door.

Buy a small, freestanding water feature, and add rocks, boulders and plantings to make it look natural.

For $2,000, you can ...

Improve your front walkway. You may not be able to replace the entire walkway, but Vincenta says you can make repairs, add a row of bricks or pavers along the edge, or cut out a section and create a pattern to add interest.

Expand your existing plant beds. Redo the straight line of plants at your house's foundation with a much wider bed that has sweeping curves. Layer your plantings with taller shrubs in the back and lower plantings and flowers in the front. And replace any overgrown or dying? plants.

Xeriscape. Replace your lawn with stones, boulders and drought-resistant plants if you live in an arid or fire-prone area.

For free, you can ...

Clean up existing plant beds by removing weeds and overgrown plants.

Prune shrubs -- but not into an unnatural ball or square shape.

Trim tree branches that hang too low and create hazards.

If you're trying to impress potential buyers -- or even guests -- "nothing is worse than having unkempt grounds," says Block. An unruly yard is an immediate turnoff, and buyers might assume you're not maintaining the home well, either.

(Article by Cameron Huddleston from Kiplinger.com)

Home Buying Quiz

Do you know how to buy a home? Take this quiz from Kiplinger.com to find out.

BusinessWeek Says Home Prices Have Hit Bottom

Posted by: Chris Palmeri on June 09

I’m telling you it’s true. The slump is over. Don’t believe what you read about a second wave of foreclosures coming and things getting worse. In Southern California, where I live, sales are coming back in a big way. Some data points from my weekend.

1)A friend of mine in Los Angeles just lost out on a house. She made a $1.5 million, all-cash offer on a Hollywood Hills home. That’s the living room in the picture above. The seller——a flipper—-had to lower his price by $200,000, but he still got multiple offers. He interviewed my friend on Sunday. He asked her questions. He wanted to know if she had any reservations about the house or the neighborhood. She later got a text message saying he’d chosen another buyer.

2)I was out in my favorite real estate stomping ground Ontario, California on Sunday. I looked at twenty bank-owned homes. All but a couple—the real pig sties—were under contract, in escrow, or had just sold. The one I liked the best had sixteen offers, some significantly over the asking price. By significant I mean a $94,000 asking price, a $120,000 offer.

3)I mentioned this in an earlier blog but two homes on my block that had languished unsold for months just got sold. One couple moved out last week, the other guy is leaving today. Another friend of mine just sold her house, same deal, no good offers for months, then boom two offers. In all three cases, prices were lowered. In two cases the buyers purchased their house at the top of the market and had to take a small loss, but not a crippling one.

Don’t be surprised if the national stats start to show the market turning.

(Article from BusinessWeek.com)

Freddie Mac on the Making Home Affordable Program

In support of the Federal Making Home Affordable Program, Freddie Mac and Fannie Mae will offer two initiatives that will help keep more families in their homes, stabilize communities and assist homebuyers during this difficult time. Under the plan, eligible homeowners can:

• Refinance your mortgage to a new, potentially lower interest rate, with additional flexibility to assist many homeowners who have previously had difficulty refinancing due to declining property values. You'll need to be current on your mortgage payments to qualify for this refinance.
• Obtain a modification on your mortgage that can potentially reduce your monthly payment, or offer other alternatives that can help you keep your home. This program is for homeowners who are delinquent in their mortgage payments, in the foreclosure process, or are current on their payments but have recently experienced significant hardship. Significant hardship includes circumstances that may make it difficult for you to pay your mortgage going forward.

Through these and other options, the U.S. Treasury, Freddie Mac and Fannie Mae hope to help more troubled and current borrowers with critical solutions through these initiatives that will help stabilize home ownership for the nation's families and their communities.

How Can I Qualify?

Refinance
If you are a homeowner who is current on your mortgage payments but unable to refinance because your home value has decreased, you may be able to refinance to a lower rate, lower-risk loan through the refinance solution that is part of this program.

Examples of how the refinance program can help you:

• Fixed-rate mortgage to fixed-rate mortgage
• Adjustable-rate mortgage (ARM) to fixed-rate mortgage
• Super conforming fixed-rate mortgage to super conforming fixed-rate mortgage

Loan Modification
If you are a homeowner who is behind in your mortgage payments, in the foreclosure process, or is current on your payments but have recently experienced significant hardship, you may be able to modify your loan to a lower rate through the Making Home Affordable Modification Program. Significant hardship is circumstances that may make it difficult for you to pay your mortgage going forward.

Examples of loan modifications through the program:

• Borrower in imminent default
• Delinquent borrower (not in foreclosure)
• Delinquent borrower in foreclosure

What If I Can't Qualify?

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 cannot keep your home, there are a number of liquidation terms you should understand:

• Short Payoff: 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.
• 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.

(Article from FreddieMac.com)

Freddie Mac on Negotiating a Sales Price

Before you negotiate a sales price, it's important to determine if you or the seller has the stronger position. Knowing this will help you plan your negotiation.

The seller may have the stronger position if:

• The local real estate market is strong and homes are selling quickly.
• They aren't in a rush to move.
• Similar houses have sold for close to or above their asking price.

The buyer may have the stronger position if:

• The local real estate market is weak.
• The seller needs to move quickly.
• The house has been on the market for a long time.

When negotiating, more information is better. Look at your notes from when you looked at the house. If there's anything in need of repair or replacement, you may include these costs in the negotiation. If you want certain appliances or fixtures to stay, be sure to include them in the negotiation. You may also want to make your offer contingent upon your obtaining financing or the house passing a professional home inspection, especially if it is an older home.

There are several steps to negotiating:

• Asking price.
  This is the price the sellers have originally listed. In a buyer's market, you may be able to successfully offer below the asking price. However, in a seller's market you may want to be prepared to offer more. Before making an offer in a seller's market, know how much above asking price you are willing, and able, to bid in case the seller gets multiple offers.

• Initial purchase offer.
  This is your first offer. It may include contingencies (such as a requirement that the home pass a professional inspection or that you receive adequate financing from your lender.)

• Acceptance of offer or counter-offer.
  The seller can accept your offer or make a counter-offer of a new price or additional contingencies.

If you've made a home inspection part of the contingencies and something serious is found during the inspection, you may want to submit a new counter-offer and discuss the situation with your lender. The process may go back and forth several times before you and the seller reach an offer that is acceptable to you both. Remember that in some instances, your lender may not approve your mortgage if the home has serious deficiencies that could affect its value.

• Escalation clauses.
  If you live in a market where homes are selling quickly and have multiple offers, your contract may need to be offered with something called an escalation clause, which allows the offer to increase by certain dollar increments if another competitive offer is obtained and entertained by the seller.

A word of caution about a "hot" market

If the real estate market where you are looking to buy is "hot", meaning that the houses are selling quickly and often for above the asking price, don't be tempted to bid more than you can afford for a home.

You may find that you are outbid on a number of houses but don't be discouraged – the right home is out there. Remember, it is truly only the perfect home for you if you can afford it. If you get caught up in a hot market, you may find yourself with a bigger mortgage than you can comfortably afford.

(Article from FreddieMac.com)

Home Staging by Barb Schwarz on 20/20

Barb Schwarz shows how Home Staging can help you impress your Prospective Buyers, and sell your home for more!

Click Here to see the YouTube video.

Simple Water Conservation How-To

Painting Wood Trim How-To

Patio Furniture How-To

A Great Weekend Project

Homemade patio furniture is an excellent weekend project to complement a deck or patio. With a good set of instructions, a few basic power tools, and a little know-how, the results can be outstanding.

For this project, we selected the classic Adirondack style patio furniture founded in the resorts and lodges of the Adirondack Mountains. What makes this style unique—particularly the chairs -- are the rounded backrest, wide armrests, slatted seat and angled supports that give it a reclined look.

Also, we decided to use cedar, but pine is also commonly used for outdoor furniture. It weathers faster than redwood or cedar. But if you're painting the chair, pine is also a good choice.

Building Adirondack furniture involves some special angle cuts, so a detailed plan really plays a key part in getting good results. Our furniture plans came from Wood® Magazine and they’re available in the Hometime on-line store.

Making Adirondack Chairs

You'll probably want to build two chairs to make a set, so duplicate steps for the second chair when making the first.

Begin by cutting all the 1x boards (various widths) to length. Then rip cut them to width according to your plan. To keep track of each piece, label them with a pencil (i.e. "B" for back boards).

The back boards are called splats. Slide them together and using a compass, mark a half circle on the boards. Our plan called for a radius 3 1/2" from the side with a 2 15/16" radius on each end board. Cut the outside edge of the marks with a jig saw then sand them down smooth to the pencil mark.

Angle cut the front slats of the seat to wrap around the front edge. Also, angle cut the cross piece that supports the splats in back. Saw the rounded slat supports and assemble the seat section.

Saw the armrests according to the plan's full-sized pattern. We tacked them together and cut both armrest boards at the same time.

Next, mark the lap joints for the armrests and middle back support. Cut them perfectly square so the ends of the armrests overlap the ends of the support. Pre-drill, glue and fasten the armrests to the support. We countersank the holes with a Forstner bit so we could later plug them.

Cut out the back legs that support the slats. These cuts are a bit tricky. Each leg is narrow at the bottom and wide at the top, and both ends are mitered cut. We made two chairs, so we made a jig to guide the cuts through the saw so all the legs would be the same.

Saw the front legs and the pie-shaped armrest supports. Mark and pre-drill screw holes through the legs and seat supports. We also used another jig to space the holes. Then fasten the legs to the slat supports.

Glue and screw the splats to their upper and lower cross member supports. Gap the splats on the lower support and a scrap piece the same height, then fasten the splats to the support. Flip the unit over and clamp the upper support in place. Again, flip the unit over, gap the splats and fasten the upper support.

Fasten the armrest assembly to the front legs, set the splat unit on its support (angling the bottom in without stressing the glued joints) and fasten them together in back.

Fabricating An Adirondack Footstool

The plan for our Adirondack footstool included an angled top that accentuated the slope of the chairs and boomerang-shaped feet that made it a pretty sturdy unit. Because it was fairly small and easy to handle, we assembled the piece on a level workbench surface to help get all the joints lined up properly.

Cut the footstool supports and legs to length and width (cut the slats later). Label them with a pencil to keep track of where they go.

Notch the two legs at the bottom to fit snugly over the stretcher (cross brace). Mark out the notch according to the dimensions of the plan and cut them out with a jigsaw. If the joints are too tight, sand them to fit.

Miter cut the tops of the legs 8° so the top of the rest will slope slightly. Tap the mitered legs onto the stretcher. Attach the boomerang-shaped feet on each leg.

Screw the side rails to the outside edge of each leg, making sure they're flush with the legs' mitered tops. Once the sides are on, measure across them to get the slat distances and cut those to length.

Fit the slats over the rails and gap them accordingly. Pre-drill holes in the centers, then glue and screw them in place.

Building An Adirondack Side Table

The Adirondack table plan we had called for side and end rails holding the tabletop. The angled legs and rounded table ends are designed just like the features of the chair.

Angle cut the legs narrow at the bottom and wide at the top. You can mark out each board and cut along the angled lines, but we ran them through the saw guided on a wood jig. That made all four legs identical.

Cut the side rails to length and width. Then glue, clamp and screw the legs along the ends of the side rails. Use a tri-square to flush the joints.

Cut out the end rails and attach them to the legs. The

ends are rounded off and support the rounded ends of the tabletop.

Mark out the radius for each end splat. Cut them with a jig saw on the outside edge of the mark and sand them down to the mark.

Set the tabletop splats, glue and fasten them in place. Our plan called for five pieces spaced about 1/4" apart that overhang 3/4" on each side to cover the tops of the end pieces.

Plugging & Finishing

Once the furniture is assembled, it needs to be sanded smooth and sealed -- either by paint, stain or some clear coat finish. Yet, prior to sanding and finishing, the countersunk screws and their holes should be plugged to prevent water from entering the wood. The plugs also give the furniture a professionally-built look.

We used a plug cutter attachment on the drill press and cut about 200 plugs from cedar stock to match our furniture. But if you're not too concerned with matching the furniture's wood, lumber yards and how-to centers often carry a variety of pre-cut plugs.

Dab some glue on the plugs and set them in place, making sure the plug grain lines up with the piece. Tap the plugs snugly in place. After installing the plugs, lightly sand the entire piece. Feel across the plugs and sand down any that stick up too high.

Prime the furniture and paint it with an exterior enamel. Paint is the traditional finish for this style of chair and we selected forest green to give the whole set a resort flavor. However, you may instead want to stain your chair after the wood has had a chance to dry out.

Painting the slats can be a bit tedious, but you want good coverage between them. Use a small brush to paint the tight spots. Also, be sure to paint the bottoms of the legs because moisture can easily wick into the wood if it's not protected there.

(Article from Hometime.com)

Home Evaluation How-To

Getting Started

Evaluating a property is something both buyers and sellers should do. An evaluation (or inspection) allows a buyer to assess the condition of a house before any money is exchanged.

An inspection is also advantageous for the seller to find out what's right and wrong with the house before putting it on the market. Also, lending institutions may require an inspection before approving a loan.

Even if you're not buying or selling a house, evaluating the house will give you a good sense of what work and improvements are needed to maintain or increase its value.

Before you and/or a professional inspector examine a house, make sure these items are taken care of: 1) utilities are turned on, 2) you have access to all parts of the house, 3) permission to operate all appliances and heating/cooling systems and ask if it's all right to videotape the house.

Remember that the purpose of a home inspection is not just to find items that need repair or replacement. You're also checking for upcoming maintenance expenses and recording the condition of the property prior to sale.

Use a checklist to make sure that you are looking at all parts of the house. Check off those items that are in good condition, and make notes about those that aren't.

Professional Inspections

If you're buying a house and don't have a general knowledge of construction and mechanical systems, or if you just want a second opinion, consider hiring a professional inspector to evaluate the house before closing.

If the house has problems, the best course of action is usually to convince the seller to correct them. Trying to renegotiate a purchase price after a purchase agreement has been signed often involves difficult paperwork changes.

A good inspector will be a generalist. Specific skills and training (as in engineering or electrical work) are valuable, but not a guarantee that the inspector is qualified to evaluate the WHOLE house.

A good professional inspector will NOT be tied to a contractor. Beware of an inspector who diagnoses a problem and then refers a company to fix it. Make sure the inspector is experienced in examining residential construction.

Ask what, specifically, the inspection will include, and how long it will take. A good inspection will take between 1 1/2 and 2 1/2 hours.

Make sure that you can attend the inspection if you wish and that the inspector will supply a written report that will be made available quickly.

Useful Tools

Here are some basic tools used in many home inspections. The handiest tool may be a video camera. Taping inspection visits will help answer questions once you get home and provide a visual record of the house.

• flashlight
• clipboard and checklist
• assorted screwdrivers
• awl
• step ladder
• binoculars
• tape measure
• electrical tester
• safety glasses
• dust mask
• camera/ video camera

Questions For Sellers

Some states and cities have disclosure laws requiring sellers to make known any problems in the house that they are aware of. Here are some specific points to ask about.

• Who performed the work on any recent repairs, improvements or remodelling? Were the appropriate building permits obtained and inspections performed?
  
  
• Have there been any leaks in the roof? Has there been a problem with ice dams? How old is the roof?
  
  
• Has there been water in the basement?
  
  
• Has the septic system or sewer line required unusual maintenance?
  
  
• Can you provide copies of heating, electric, and other utility bills?
  
  
• Has an exterminator ever been hired for the property?
  
  
• Has the house been tested for radon?

(Article from Hometime.com)

Suze Orman on the Home Buyer Tax Credit

To help spur home sales the federal government just announced a way for first time homebuyers to get access to this year’s tax credit (maximum $8,000) before they buy, rather than having to wait for the money when they file their 2009 taxes. Now that you can get an advance on your credit the money can come in handy to pay closing costs, or even go toward a bigger down payment. That’s great news.

As you have heard me tell you, there’s a terrific tax break available to first time homebuyers this year. And just so you know, the federal government defines anyone who hasn’t owned a principal residence for three years as a first timer. Individuals with modified adjusted gross income (MAGI) below $75,000 and married couples filing a joint tax return with income below $150,000 are eligible for the maximum $8,000 credit in 2009. (You may be eligible for a reduced credit if you are single with income between $75,000 and $95,000 and joint filers with income between $150,000-$170,000. Above those amounts you are not eligible for any credit.) To grab the credit this year you must close on a home purchase before Dec. 1.

Now here’s where it gets interesting. Typically you get a tax credit “back” when you file your tax return. The credit either reduces the amount of tax you owe, or if you owe no additional tax then you are sent a refund check for the amount of the credit. And I want to remind you how valuable a tax credit is: It is a dollar for dollar deal. For every dollar of credit your tax liability is reduced by one dollar. That’s seriously better than a tax deduction, where the value of the break depends on your income tax bracket. For instance an $8,000 tax credit reduces your tax liability by $8,000. An $8,000 tax deduction for someone in the 15% tax bracket reduces his or her tax bill by $1,200 ($8,000 x. 15).

But one obvious issue is that if you are buying a house in 2009, you won’t get your tax credit until you file your 2009 tax return in early 2010. That doesn’t really help you make the purchase right now.

Instant Access to Tax Credit for FHA-insured Loans

So the Dept. of Housing and Urban Development made a change in how the credit works: If you take out an FHA-insured loan and you qualify for the first-time buyer tax credit your lender can essentially get you access to the money today so it can help you pay for certain loan costs. The new rule allows you to get an “advance” on the value of your tax credit, rather than having to wait until you file your ’09 return.

There are some rules you need to understand, so read this carefully: The tax credit can not be used to finance the minimum 3.5% down payment required on all FHA loans; you still need to come up with that yourself. That’s good news as far as I am concerned; if you can’t afford to put some money down that is a sign you are not ready to own a home. But the credit can be used to increase your down payment; the bigger your down payment, the lower your monthly housing costs. Or you can use the credit to “buy down” the interest rate; typically paying 1 point (1% of your mortgage value) will reduce your interest rate by 0.25% or so. The credit can also be used to cover closing costs.

Now I want to stress that this advance is typically only good for FHA-insured loans, so you want to work with a lender who specializes in the FHA program. (A few states, including Colorado, Idaho, Missouri, New Jersey and Ohio have programs in place to advance the credit for other types of mortgages.) And please know that the 2009 loan limits for FHA-backed mortgage have been raised significantly. The limit is based on where you live. You can find your region’s loan limithere. (Note: You only need to input your State and then hit “Send” to get a list of limits for your state.) You can learn more about the “advance” of the First Time Homebuyer tax credit at the FHA website.

(Article from the Suze Scoop at www.suzeorman.com)

Gary Keller of Keller Williams Welcomes You

Enhancing the $8,000 Home Buyer Tax Credit

June 11, 2009 - The following statement was issued by Joe Robson, chairman of the National Association of Home Builders (NAHB), in regard to enhancing the home buyer tax credit:

“The National Association of Home Builders supports the Business Roundtable’s efforts to promote policies that will stimulate housing demand. NAHB looks forward to working with all interested parties in the business community, on Capitol Hill and in the Obama Administration to foster new ideas and policies that will help to get housing and the economy back on track, particularly at a time when the recovery is facing a number of significant challenges.

“Due to expire at the end of November, the current $8,000 first-time home buyer tax credit has proved to be an effective policy targeted toward a specific demographic group that is showing tangible results. Enhancing this credit would help to stoke the economic engine at a key point in our recovery.

“When the debate begins in earnest, we look forward to working with Congress to consider all appropriate tax measures to restore the health of housing and the nation’s economy.”

(Article from The National Association of Home Builders, www.nahb.org)

"Green Act" for Affordable, Sustainable Homes

June 11, 2009 - In testimony before Congress today, the National Association of Home Builders (NAHB) praised H.R. 2336, the GREEN Act of 2009, which sets new green building and sustainability benchmarks for properties that get financial assistance from the federal Department of Housing and Urban Development.

But NAHB President Jerry Howard also left members with a warning: H.R. 2454, the other major piece of climate change legislation now before Congress, includes requirements that conflict with H.R. 2336 – making the GREEN Act obsolete before it’s even signed.

“I am hopeful that this Subcommittee will be able to restore the balance necessary to truly incentivize green building and preserve affordability as the debate over climate change continues,” Howard said. “It would be terribly disappointing to see the good faith effort and collaborative work on the GREEN Act displaced with unworkable federal mandates as envisioned in H.R. 2454.”

Howard told lawmakers on the House Subcommittee on Housing and Community Opportunity that the association’s members agree with the bill’s approach, which will ensure cost-effective energy-efficiency improvements to HUD-financed homes.

In accompanying written testimony, Howard detailed the strides NAHB members have made toward the creation of more sustainable housing stock and the education, certification and training programs the association has launched to further that growth.

“We have a major role to play in the manner in which energy efficiency and sustainable technologies are introduced into the housing stock,” Howard said. “Despite the downturn, NAHB has not wavered in its commitment to promoting green building and energy efficiency in a manner that is affordable and effective, and legitimately improves energy efficiency for the next generation of housing.”

Howard asked Congress to rework some sections of GREEN Act’s text: It is unclear in the current draft whether new efficiency requirements apply to Federal Housing Authority-financed home purchases as well as to direct subsidy programs or competitive grants.

“The scope of the GREEN Act and the new programs that it creates is ambitious, but the intent is thoughtful and NAHB hopes that the resources will ultimately be available to develop the programs into effective tools to promote sustainable principles,” he said.

(Article from The National Association of Home Builders, www.nahb.org)

Increasing Your Home's Appeal

Remember the 60-second rule: That's all the time you have to create a winning first impression. Here are some simple to significant ways to maximize your home's appeal.

Exterior

* Keep the grass cut and remove all yard clutter.

* Weed and apply fresh mulch to flower beds.

* Apply fresh paint to wooden fences.

* Tighten and clean all door handles.

* Clean windows inside and out.

* Powerwash home's exterior.

* Ensure all gutters and downspouts are firmly attached and functioning.

* Paint the front door.

* Buy a new welcome mat.

* Place potted flowers near the front door.

Interior

* Evaluate the furniture in each room and remove anything that interrupts "the flow" or makes the room appear smaller. Consider renting a storage unit to move items off-site.

* Clean and organize cabinets, closets and bookshelves.

* Clean all light fixtures and ceiling fans.

* Shampoo carpets.

* Remove excessive wall hangings and knick-knacks.

* Repair all plumbing leaks, including faucets and drain traps.

* Make minor repairs (torn screens, sticking doors, cracked caulking).

* Clean or paint walls and ceilings.

* Replace worn cabinet and door knobs.

* Fix or replace discolored grout.

* Replace broken tiles.

* Replace worn countertops.

Special details for showings

* Turn on all the lights.

* Open all drapes and shutters in the daytime.

* Keep pets secured outdoors.

* Buy new towels for bathrooms.

* Buy new bedding for bedrooms.

* Replace old lamps or lampshades.

* Play quiet background music.

* Light the fireplace or clean out the ashes and light a candelabrum.

* Infuse home with a comforting scent, such as apple spice or vanilla.

* Set the dining room table for a fancy dinner party.

* Vacate the property while it is being shown.

Understanding the Buyer

As the seller, you can control three factors that will affect the sale of your home:

* The home's condition
* Asking price
* Marketing strategy

However, it's important to note that there are numerous other factors that influence a buyer, and you need to understand these consumer trends when you enter the sellers' market. The more your home matches these qualifications, the more competitive it will be in the marketplace. Your real estate agent can advise you on how to best position and market your home to overcome any perceived downsides.

Location
Unfortunately, the most influential factor in determining your home's appeal to buyers is something you can't control: its location. According to the National Association of REALTORS(r), neighborhood quality is the No. 1 reason buyers choose certain homes. The second most influential factor is commute times to work and school.

Size
While some buyers want to simplify their lives and downsize to a smaller home, home sizes in general have continued to increase over the decades, nearly doubling in size since the 1950s. Smaller homes typically appeal to first-time home buyers and "empty nesters," or couples whose children have grown up and moved out.

Amenities
Preferences in floor plans and amenities go in and out of fashion, and your real estate agent can inform you of the "hot ticket" items that are selling homes in your market. If your home lacks certain features, you can renovate to increase its appeal, but be forewarned: That's not always the right move. Using market conditions and activity in your neighborhood as a gauge, your agent can help you determine whether the investment is likely to help or hinder your profit margin and time on the market.

Practicing Good Seller's Etiquette

Let's face it: When your house goes on the market, you're not only opening the door to prospective buyers, but also sometimes to unknown vendors and naïve or unqualified buyers. As with any business transaction, there is an expected protocol to how sellers, buyers and their respective agents interact. Should you find yourself in a sticky situation, alert your agent so he or she can address and remedy the problem.

The aggressive agent
When your agent puts your house on the market, typically all promotional materials state clearly that your agent is the primary contact for buyers and buyers' agents. However, sometimes a buyer's agent will contact a seller directly to try to either win over their business or cut the seller's agent out of the deal. This is not reputable behavior and you should report it to your agent immediately if it happens to you.

The unscrupulous vendor
Have you ever started a business or moved into a new house and suddenly found your mailbox full of junk mail? Unfortunately, this also can happen when you put your house on the market. When you sell your home, it necessitates all kinds of new purchasing decisions and less-than-ethical vendors are keenly aware of this. Though MLS organizations enforce rules on how posted information is used, some companies have found ways to cull information from various sources to produce mass mailing lists. If you find yourself regularly emptying your mailbox of junk, let your agent know. He or she can tap the appropriate sources to prompt an investigation into the matter.

The naïve buyer
Yard signs, Internet listings and other advertisements can generate a lot of buzz for your home. Some prospective buyers - particularly first-timers - will be so buzzed to see your home that they'll simply drop by. If this happens, no matter how nice these unexpected visitors are, it's best not to humor their enthusiasm by discussing your home or giving an impromptu tour. Instead, politely let them know that your real estate agent is in charge of scheduling tours and provide them with the agent's contact information. If you attempt to handle these surprise visits on your own, you might inadvertently disclose information that could hurt you during negotiations down the road.

How to Price to Sell, and Still Make a Profit

The asking price you set for your home significantly affects whether you will profit in the sale, how much you will profit and how long your home will sit on the market. Your real estate agent's knowledge of the overall market and what's selling - or not selling - will be invaluable in helping you determine the price. The objective is to find a price that the market will bear but won't leave money on the table.

Here are some points to consider: Time. Time is not on your side when it comes to real estate. Although many factors influence the outcome, perhaps time is the biggest determinant in whether or not you see a profit and how much you profit. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. Therefore, if your goal is to make money, think about a price that will encourage buyer activity (read: fair market value).

Value vs. Cost. Pricing your home to sell in a timely fashion requires some objectivity. It's important that you not confuse value with cost - in other words, how much you value your home versus what buyers are willing to pay for it. Don't place too much emphasis on home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants hardwood floors or granite countertops.

Keep it simple. Because time is of the essence, make it easy for the buyers. Remain flexible on when your agent can schedule showings. Also, avoid putting contingencies on the sale. Though a desirable move-in date makes for a smoother transition between homes, it could cause you to lose the sale altogether.

Ten Questions to Ask Your Realtor About Selling a Home

Are you a full-time professional real estate agent? How long have you worked full time in real estate? How long have you been representing buyers? What professional designations do you have?
Knowing whether or not your agent practices full time can help you determine potential scheduling conflicts and his or her commitment to your transaction. As with any profession, the number of years a person has been in the business does not necessarily reflect the level of service you can expect, but it is a good starting point for your discussion. The same issue can apply to professional designations.

Do you have a personal assistant, team or staff to handle different parts of the purchase? What are their names and how will each of them help me in my transaction? How do I communicate with them?
It is not uncommon for agents who sell a lot of houses to hire people to work with them. As their businesses grow, they must be able to deliver the same or higher quality service to more people.
You may want to know who on the team will take part in your transaction, and what role each person will play. You may even want to meet the other team members before you decide to work with the team. If you have a question about fees on your closing statement, who would handle that? Who will show up to your closing?

Do you have a Website that will list my home? Can I have your URL address? Who responds to emails and how quickly? What's your email address?
Many buyers prefer to search online for homes because it's available 24 hours a day and can be done at home. So you want to make sure your home is listed online, either on the agent's Website or on their company's site. By searching your agent's Website you will get a clear picture of how much information is available online.

How will you keep in contact with me during the selling process, and how often?
Some agents may email, fax or call you daily to tell you that visitors have toured your home, while others will keep in touch weekly. Asking this question can help you to reconcile your needs with your agent's systems.

What do you do that other agents don't that ensures I'm getting top dollar for my home? What is your average market time versus other agents' average market time?
Marketing skills are learned, and sometimes a real estate professional's unique method of research and delivery make the difference between whether or not a home sells quickly. For example, an agent might research the demographics of your neighborhood and present you a target market list for direct marketing purposes.

Will you give me names of past clients?
Interviewing an agent can be similar to interviewing someone to work in your office. Contacting references can be a reliable way for you to understand how he or she works, and whether or not this style is compatible with your own.

Do you have a performance guarantee? If I am not satisfied with your performance, can I terminate our listing agreement?
In the heavily regulated world of real estate, it can be difficult for an agent to offer a performance guarantee. If your agent does not have a guarantee, it does not mean they are not committed to high standards. Typically, he or she will verbally outline what you can expect from their performance. Keller Williams® Realty understands the importance of win-win business relationships: the agent does not benefit if the client does not also benefit.

How will you get paid? How are your fees structured? May I have that in writing?
In many areas, the seller pays all agent commissions. Sometimes, agents will have other small fees, such as administrative or special service fees, that are charged to clients, regardless of whether they are buying or selling. Be aware of the big picture before you sign any agreements. Ask for an estimate of costs from any agent you contemplate employing.

How would you develop pricing strategies for our home?
Although location and condition affect the selling process, price is the primary factor in determining if a home sells quickly, or at all. Access to current property information is essential, and sometimes a pre-appraisal will help. Ask your agent how they created the market analysis, and whether your agent included For Sale by Owner homes, foreclosed homes and bank-owned sales in that list.

What will you do to sell my home? Who determines where and when my home is marketed/ promoted? Who pays for your advertising?
Ask your real estate agent to present to you a clear plan of how marketing and advertising dollars will be spent. If there are other forms of marketing available but not specified in the plan ask who pays for those. Request samples or case studies of the types of marketing strategies that your agent proposes (such as Internet Websites, print magazines, open houses, and local publications).