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5 Steps to Avoid Buying a Money Pit

2011-10-13T20:53:00.000-07:00

What did Cary Grant, Tom Hanks and Richard Pryor have in common? They all starred in hilarious movies with plots built around their money pit homes (“Mr. Blandings Builds His Dream House” [1948], “The Money Pit” [1986] and “Moving” [1988], respectively).

But buying a home that turns out to need much more extensive (and expensive) repairs than originally thought is only funny in the movies. In real life, buying a money pit can nearly drive a new homeowner to lose their mind - and their shirt.

Fortunately, there are a number of real-life strategies that real-world buyers can act on to prevent their own home-buying plot line from including an unfunny lemon of a home. Here are 5 of my personal favorite steps that will help you avoid buying a money pit.

1. Attend Inspections. There are lots of things you can outsource and rely on your professional representatives to do when you’re buying a home, but I’d suggest you keep attending your home, pest and roof or other specialty inspections on your own personal to-do list. When you’re there in person, the inspector is able to physically show you the items that may need repair, and give you their professional opinion of how serious and large needed repairs may actually be at a level of clarity a written report may lack.

Sometimes, written inspection reports convey minor items (like reversed hot and cold faucets) as a red-flagged health and safety issue, and more major items (like a problematic foundation) as something that needs further inspection. If you are at the inspection in the flesh, you can brief the inspector on what level of cost and effort you consider major (and vice versa), and ask them to help you understand roughly where the property overall and any individual repairs needed fall, from that perspective.

2. Read the Reports and Disclosures. Attending your inspection is just the first step. Reading the inspectors’ reports is critical to avoiding a money pit - both the reports generated by your own inspectors, and any reports and disclosures provided to you by the seller. Things to watch for and investigate further in the sellers’ reports and disclosures include:

repairs the seller completed themselves,
repeated repairs to the same home system,
water and leakage issues, and
any reports of non-functioning mechanical or other systems in the home.

In your inspectors’ reports, make sure to notice:

repair estimates they offer,
items that seem like they will have to be completed soon (versus upgrades you can do over the long run)
items that seem like they might run into big ticket dollar amounts, and
especially watch for any recommendations that you get a specialist to look at something - some of the largest potential repairs are often dealt with in this way by a general property inspector.

It behooves you to follow up on your reading of reports and disclosures by working with your agent to:

list your questions and concerns,
ask the inspector(s) and seller any follow-up questions you have,
obtain follow-up inspections (including obtaining an extension of your inspection contingency, if needed) and
obtaining reliable repair estimates.

3. Get Multiple Repair Bids. While your pest, roof and other inspection specialists may offer you a repair cost estimate with your report, most general property inspectors do not - many states even forbid it by law. Money pits often occur when buyers take a place knowing it needs what they thought was a little work, that actually turns out to be a much more costly or involved repair, once the actual repair contractor takes a look or starts the work.

Avoid surprises by getting multiple repair bids from reputable contractors while you are still within the inspection contingency time frame of your contract. These repair estimates can also provide the basis for any renegotiation you and your agent choose to initiate with the seller for price reduction, repairs or increased closing cost credits.

4. Stop Overconfidence In Its Tracks. Having managed two extensive remodeling projects myself, I can vouch - unless you are a construction professional (and sometimes even then!), all but the most minor home improvement or repair projects tends to take more time and money to do yourself than you expect at the outset. (With my own two hands, I took down wallpaper and painted a room in January of 2002, and am still experiencing symptoms of post-traumatic stress disorder. One room, people.)

Even if you expect to cut costs by doing some work yourself, I urge you to contact and obtain bids on the repairs and upgrades you plan from actual professionals, so you can at least be armed with the information about what it will cost to get them done if you can’t complete them for any reason.

5. Prioritize Price Reductions and Credits over Seller Repairs. For the most part, I feel that buyers will select their own materials and repair contractors with more care and are generally more deeply invested in ensuring that repairs are completed to their satisfaction than an outgoing seller. If you are negotiating with your home’s seller over repairs that need to happen, discuss with your agent whether it might make sense to ask for a price reduction or a closing cost credit to offset the cost of the repairs so you can have them completed to your standards, and with the materials and by the contractors of your choice, after closing.

5 Home Improvement Projects that Will Get You Top Dollar For Your Home « Rob Smith | Real Estate for the Real World

2011-09-29T17:57:00.000-07:00

5 Home Improvement Projects that Will Get You Top Dollar For Your Home

POSTED ON SEPTEMBER 29TH, 2011

It’s
a highly competitive market for home sellers right now. More homes to
compete with means that the impression your homes makes – from the curb,and
on the inside – matter now more than ever. You can increase your
chances of selling faster – and at today’s top dollar – by investing in a
select few home improvement projects that have been shown to make a big
impact on buyers.

Bad
news alert: it might cost you a little time, effort and cash. The good
news, though, is that the best projects for quickly increasing your
home’s resale value tend to be cosmetic and fairly simple and
inexpensive to do. Here are five projects with big-time return on
investment for home sellers-to-be, in terms of their power to attract
buyers, and to attract dollars from those buyers.

1. Painting:
Adding a fresh coat of paint to ceilings and walls is a tried and true
way to increase your home’s appeal to buyers. Go for white or neutral
tones that help lighten your rooms. (Now is not the time to show off
your fascination with fuschia and limegreen.) Buyers will have an
easier time envisioning how they will infuse their own personalities
into your home if they’re looking at a relatively blank slate.

Painting
lightens and brightens rooms, instantly removes scuffs and dings and
gives every room a fresh, polished feel.

Fresh
exterior paint – even if your time or cash budget limits your efforts
to accents like eaves, shutters, doors and trims – is also a quick,
inexpensive way to polish the look of your home from the curb.

2. Landscaping: Everything
you’ve heard about curb appeal is true. First impressions matter –
especially if your house is one of eight or nine a buyer has seen in one
day. Buyers will be more excited to look at the inside your home if the
outside looks clean, charming and inviting. Mow the lawn, trim the
hedges, pull the weeds and plant some flowers, bushes or shrubs for the
biggest impact – and be diligent about keeping your landscaping very
well-manicured throughout the time your home is on the market.

Be
sure to keep it low-key, relatively low maintenance and neutral,
though. This is not the time to indulge your personal fantasies of
living in an exotic paradise, unless that matches the existing look and
feel of your home, nor is it the time to install a time-intensive
English garden that buyers will love, but not want to take on. Think
clean, simple and elegant for the biggest boost in value.

3. Cleaning and de-cluttering: Start by removing all your family photos from the walls and all sorts of tchochkes and clutter from the tops of tables, desks, dressers and counters. Buyers want to be able to envision their
lives in the house, not yours. Personal items – and the visual clutter they create – have been shown time and
time again to block buyers’ ability to create this vision.

Also,
remember that buyers are coming to see the house and evaluate its space, not to bear witness to all the fabulous furniture that means so much to you (no matter how amazing your personal taste). Remove furniture that
takes up too much space and fills up rooms. Get rid of clutter such as
clothes, boxes, piles of mail and other items.

And then clean – and keep cleaning obsessively, the entire time your place is on the market. Kitchens, bathrooms and bedrooms should look unlived in when they are shown. And don’t forget to clean less obvious places like windows, walls, doors and and
floors, to dust off shelves and furniture, and to polish appliances.

4. Plumbing repairs and water stain/damage repair: Paying
a plumber to make a few stops throughout your home can be well worth
the investment. Leaky faucet in the master bathroom? Get it fixed. Does
the space under your kitchen sink look like a science experiment? Leaks
and water stains definitely provoke disgust and exasperation on the part
of the buyers you want and need to impress. And they can be pretty
cost effective to fix – ask your agent for a referral, if you need one.

5. Staging: Staging your home can make a dramatic difference in the price for which your home sells. Good staging is equal parts:

(a) removing your personal belongings and replacing it with more artwork, decor and cleaner-looking furniture,

(b) and tweaking the home’s paint, wall coverings and even landscaping to show the place in its very best light.

When
done well, staging can convert your home from just another listing on a
buyer’s list to the setting for a fresh, new start to the fresh, new
life of their dreams. Professional stagers, in particular, have special
skills and materials they use, from convincing you to get rid of a bunch
of things you value (but read: junk to a buyer), to items like
mirrors, plants, art work, lamps, pillows and even furniture that tells a
visual story of the life buyers can fantasize about living in your
home.

Talk
to your agent about staging – some agents have the skill to do this on
their own, while others might have a professional stager they frequently
work with.

In
some cases, you might want to take on even larger projects. Before you
go that route, talk with a local real estate agent; they are
well-positioned to know what sort of updates and features will make the
most impact on local buyers. Not all major, non-cosmetic upgrades to
your home will create a significant difference in the price it commands,
so take advantage of your agent’s expertise as you make decisions about
whichproperty preparation investments to make (and which to forego).

The Top 3 Real Estate Deal-Killers - and How Buyers Can Avoid Them - Business Insider | Attorney Profiles

2011-09-23T19:22:00.000-07:00

The Top 3 Real Estate Deal-Killers - and How Buyers Can Avoid Them

Once upon a time, homebuying was a much less dramatic affair then it is today. The house hunt was fun, if suspenseful, and then there was another exciting whirlwind of inspections, closing and moving in. Today, though, as soon as buyers get the gumption to jump off the rent vs. buy fence, they find themselves on another edge - the edge of their seats, through the entire escrow process waiting to see what obstacle will emerge next, and whether their transaction will survive it.

Deals get killed all the time, and buyers can't relax until they have keys actually in hand. Here are three of the most common real estate deal-killers, and some steps buyers can take to deactivate them.

1. Appraisal too low. Some buyers incorrectly believe that the best thing that could happen to them is for the property to appraise below the agreed-upon purchase price, expecting that a low appraisal forces the seller to bring the price down. In fact, so many of today’s sellers are barely breaking even, that a low appraisal is probably the most common deal-killer around. If an appraisal comes in just a tad bit lower than the contract price, usually the seller will come down if they can, or the buyer will kick in a few extra bucks. But when it comes in 5, 10 or even 20 percent low, most sellers can't - and most buyers won't .

Low appraisals also seem like the most difficult deal-killer to avoid, as this process is entirely out of both buyer's and seller's control. But there are two things buyers can do to minimize the risk. First, check the comps - i.e., recent comparable homes that have sold in the area - before making an offer; your agent will help you do this. Then, don't make an offer bizarrely above the average range of the comparables, even if the property has multiple offers, unless you're prepared to deal with a low appraisal a couple of weeks out.

Also, consider working with a local mortgage broker who also originates loans through its own bank (vs. walking into a large bank's branch off the street); these lenders have the ability to choose from a smaller pool of appraisers that they know are qualified and knowledgeable about your area.

2. Property condition dramas. When the market melted down, lenders found themselves with a lot of decrepit homes on their hands. This explains two things: (1) why lenders are more concerned about property condition now than ever, and (2) the raggedy condition of so many of the "distressed' homes on the market. Homes that have extensive wood rot, dangerous decks or electrical systems, or peeling paint and missing systems (sinks, stoves and the like) are highly unlikely to pass muster when the appraiser walks through, even if they do qualify as being worth the purchase price. And while an individual seller might be willing to do some work, many just can't afford to; short sale and REO sellers simply refuse to make fixes, 9 times out of 10.

Prevention is the best medicine for curing this transaction ailment. If you are buying a short sale or REO property, be aware that when the selling bank says as-is, it really means as-is. Ask your mortgage broker and agent to brief you on what sort of shape your lender will require your home to be in, at minimum, and keep that standard in mind during your house hunt. Your agent can help manage your expectations about which properties will and won't likely pass muster.

3. Loan approval takes too long. Every buyer knows they must get preapproved for a mortgage before they start house hunting, but many don't know that preapproval is just the first in a long list of steps that have to happen before the loan becomes a sure thing. In fact, it's common now for buyers to get their loan preapproval many months before they end up in contract, and lots can change in the interim - further extending the time it may take for their loan approval to come in.

It's common for contracts to include a standard loan contingency period of 17 days, give or take a few. But the appraisal might take longer than that to come in, or the underwriter might have lots of questions and seemingly random nitpicks about the appraisal, or about you: they want to see your driver's license, then your marriage license, then your divorce decree, and after that, a letter from your employer agreeing that you'll be keeping your job even though you're moving an hour away. It never seems like they ask for everything at once, thus it can take longer than 17 days to obtain all the requested items, turn them in and get the underwriter to sign off on them.

Until you get that green light, it's foolhardy to remove your loan contingency, as that step renders your earnest money deposit non-refundable, under most contracts. Many a buyer is forced to either secure an extension from the seller or to let the transaction die, rather than forfeiting their deposit funds. And again, some sellers understand and will play ball, but bank sellers can be particularly resistant to loan contingency extensions, especially if there are backup offers on the table.

Best practice for buyers to minimize the chances of an overtime loan approval process killing the deal? Be ready: be ready for lots of bizarre documentation requests, be ready to provide things you've already been asked for, and be ready to do so quick-like - without pushing back. The faster you can turn around the things the underwriter wants, the better.

Also, it can be very helpful to work with a mortgage broker and agent that have worked together before and have close communications, so that your agent can stay abreast of any and all loan process glitches and keep the listing agent apprised of the legitimate reasons you may need an extension throughout the contingency period, rather than assuring them everything's speeding along then having to ask for a last-minute extension.

4 Buyer Incentives that Sell Homes

2011-09-01T20:48:00.000-07:00

4 Buyer Incentives that Sell Homes

On today’s market, it’s pretty easy for a seller to find themselves in a serious state of stuck: home stuck on the market with no bites from buyers, and family stuck in the home until the home sells. And that doesn’t even account for the feeling of stuck that comes from having gone just about as low as you can go on price without turning your transaction into a short sale. If you’re trying to sell, and you’ve lowered the price but still find your home struggling to compete against a bunch of other, similiarly priced homes with similar features, selling can seem difficult at best, impossible at worst.
The worst part of this particular flavor of stuck is the feeling that the whole situation is out of your control, that there’s nothing within your power that will move your home off the market. You’ve already painted the place, replaced the carpet, tricked out the curb appeal and lowered the price as far as you can go. So what else is a seller to do?

Offer incentives.

Incentives are perks – they can be big or little – that a seller offers to their home’s eventual buyer. The most outlandish incentives are the ones that make the headlines, like the Ferrari one Malibu owner threw in with the sale of their condo last year, or the year’s worth of cookies that actor George Hamilton reportedly negotiated into the sale of his home from a bakery owner. But the incentives with the most power to get your home sold tend to be much less exciting perks thatactually fill a real need the average home buyer has.

Here are four basic, incentives you should consider offering if you’re having a hard time getting your home sold:

1. Interest rate buy-down. When you hear sellers say they will “pay points,” what they are doing is offering to award the buyer a certain number of percentage points of the sales price, which will, in turn, be paid to the buyer’s lender as discount points that bring the buyer’s interest rate down. For the buyer, this is a big deal, as it decreases the pressure they feel to guess the right day to lock in their interest rate (a common source of serious stress among buyers), and sends the message that if they buy your home, they’ll automatically beat the market rate. And what buyer doesn’t want that?!

Seller-paid rate buy-downs also save buyers money on their monthly payment over the entire lifetime of their loan, and the seller-paid points are usually tax deductible, to the buyer, the next time they file taxes. You can see why these incentives are so powerful at attracting buyers!

2. Closing cost credit. Many buyers trying to break into the market while prices are low are already scraping the bottom of their savings account barrels to come up with their down payment money. With most home loans, the buyer will have to come with anywhere from 3 to 6 percent of the loan amount, in cash, on top of their down payment, to cover closing costs like loan fees, escrow services and title or mortgage insurance. (And strangely enough, the buyers putting the 3.5 percent minimum down payment on an FHA loan are likely to have to come up with the higher end of the closing cost range, 6 percent, to cover their mortgage insurance.)

Some smart sellers (and their agents) include in their home’s listing and marketing materials the offer to pay a credit of 3, 4, 5 or even 6 percent of the home’s sale price at closing, to defray the buyer’s closing costs. A closing cost credit is a great financial help to buyers and a strong differentiator that can make your home much more attractive than nearby listings. Your listing agent can help you run the numbers on how much of a credit you can afford to offer, and how to make an overall package – listing price and credit – that will be maximally magnetic to prospective buyers.

1. HOA dues credit. If you are selling a home that is in a homeowners’ association (HOA) that charges monthly or even annual dues, then surely you recall buying that home and being overwhelmed at the prospect of going from rent being your sole monthly housing expense, to having a laundry list of expenses starting with your mortgage, including property taxes and insurance and then having HOA dues as the unpleasant cherry on top.

One way to overcome that concern in the minds of buyers and to differentiate your unit from all the other, similar units for sale in your complex is to offer a credit at closing that covers the buyer’s HOA dues for 6 months, a year, or even longer. Talk with your agent about how to do this strategically, in a way that will offer the maximum lure for buyers but will not run afoul of any guidelines for seller credits imposed by the buyer’s lender.

2. Broker incentives. Some savvy sellers who can’t afford to offer buyers several percentage points’ worth of the proceeds of sale toward closing costs take a different route, offering to pay a bonus percentage point (or more) in incentives to the eventual buyer’s broker or agent – on top of the commission, rather than to the buyer themselves. Over 90 percent of buyers who are ready, willing and able to buy a home on today’s market are represented by a broker. And brokers have to sort through sometimes hundreds of pretty similar listings to decide which ones to show a buyer any given Sunday.

Offering a broker’s incentive makes your home stand out among all those listings to the brokers and agents who put buyer’s property tours together. While these aren’t “buyer incentives,” strictly speaking, but they do operate to boost the number of buyers that come view your home – in turn, boosting your home’s likelihood of getting an offer.

Home Alarm Monitoring: 10 Security Threats that Scare Homeowners

2011-08-25T21:30:00.000-07:00

Home Alarm Monitoring: 10 Security Threats that Scare Homeowners:

10 Security Threats that Scare Homeowners

Home ownership is something many American’s take for granted and for others is just a dream. What some don’t realize is that owning a home comes with a whole new set of responsibilities and problems. This is why homeowner insurance is so important and required by mortgage holders. Here are 10 of the security threats that scare homeowners.

Burglary – The first thing that comes to mind when mentioning security threats is burglary. The risk of being robbed is higher in some areas than others, but even in low risk areas, the threat is there. Many homeowners invest in security systems to prevent break-ins.
Fire – The biggest threat to any homeowner is fire. Even if a fire is caught and put out, the damage to the home and its contents is devastating. Nothing can prepare you for the overwhelming loss of your home and possessions to a house fire. Smoke detectors, fire extinguishers and even sprinkler systems can be purchased to help prevent fires from consuming your home.
Floods – The threat of flooding is so prevalent in most of the county that there is a national flood insurance program provided by the federal government. Since some areas only flood about every 100 years, people can live in an area for generations without knowing they have a threat. Water damage in a home is very expensive and difficult to repair.
Earthquakes – Another natural disaster that threatens homeowner’s security is earthquakes. Although more prevalent in fault zones, earthquakes can happen just about anywhere and cause extensive damage to homes. People who live in high risk areas must follow special building codes to help their homes withstand minor earthquakes.
Storms – Homeowners always keep a close eye on weather conditions. Hurricanes and tornadoes can cause the most devastating damage, but even a strong thunderstorm can be a major threat. Strong winds and lightening can do quite a bit of damage to your home and cause power outages.
Lawsuits – Unfortunately, another big threat to a homeowner’s security is lawsuits. Anyone who injures themselves while on your property can sue for damages even if the accident was entirely their fault. People who don’t have insurance to cover awarded damages are at risk of losing their homes.
Unemployment – Most people have mortgage payments that consume a large part of their monthly income. If they lose their job or are unable to work because of illness or injury, they may not be able to keep up the payments and risk defaulting on their loans.
Identity theft – Another security threat that scares homeowners is identity theft. If not discovered quickly, a person’s credit can be destroyed and huge credit card bills can be racked up. Some may be forced to sell their homes to cover the costs and be unable to purchase another because of their bad credit rating.
Vandalism – Something that many homeowners don’t anticipate is the threat of vandalism. Unfortunately, there are unscrupulous people who don’t have any respect for other people’s property. A broken window may be covered by the insurance, but is still a big headache to repair.
Winter – People who live in cold climates need to be concerned about damage to their homes in the winter. Sub-freezing temperatures can cause plumbing pipes to freeze and heavy snows can collapse a roof. If a homeowner goes on vacation to escape the cold weather, they need to make sure the furnace doesn’t quit and let their house freeze up.

Homeowner insurance doesn’t cover all of these security threats, but can help defray the cost of most of them. It’s important to know the degree of risk for any of these threats in your particular circumstances. Home ownership can be somewhat scary, especially in today’s uncertain economic situation. Know what the threats are and take steps to prevent them to make owning your home less risky and more secure.

7 Deadly Sins of Overpricing « gatorrealtors

2011-08-16T18:16:00.000-07:00

7 Deadly Sins of Overpricing

Posted on August 16, 2011 by GatorRealtors

“We can always go down, but we can’t go up.”

If you’re selling your home this statement has probably crossed your lips at least once. But when it comes to setting a pricing strategy for your home, is it a good idea to start high and work your way down, especially in a market flooded with inventory? Probably not, as most experts would advise that the best way to increase your odds of a successful sale is to price your home at fair market value. But, as logical as this advice sounds, for many sellers it is still tempting to tack a few percentage points onto the price to “leave room to negotiate”. To avoid this temptation, let’s take a look at the seven deadly sins of overpricing:

Appraisal problems
Even if you do find a buyer willing to pay an inflated price, the fact is over 90% of buyers use some kind of financing to pay for their home purchase. If your home won’t appraise for the purchase price the sale will likely fail.
No showings
Today’s sophisticated home buyers are well educated about the real estate market. If your home is overpriced they won’t bother looking at it, let alone make you an offer.
Branding problems
When a new listing hits the market, every agent quickly checks the property out to see if it’s a good fit for their clients. If your home is branded as “overpriced”, reigniting interest may take drastic measures.
Selling the competition
Overpricing helps your competition. How? You make their lower prices seem like bargains. Nothing is worse than watching your neighbors put up a sold sign.
Stagnation
The longer your home sits on the market, the more likely it is to become stigmatized or stale. Have you ever seen a property that seems to be perpetually for sale? Do you ever wonder – What’s wrong with that house?
Tougher negotiations
Buyers who do view your home may negotiate harder because the home has been on the market for a longer period of time and because it is overpriced compared to the competition.
Lost opportunities
You will lose a percentage of buyers who are outside of your price point. These are buyers who are looking in the price range that the home will eventually sell for but don’t see the home because the price is above their pre-set budget.

One popular myth is that a great marketing plan will overcome a pricing problem. Nope – spending a zillion dollars on advertising, internet ads, and television spots won’t motivate buyers to pay you more than the home is worth. Another myth is the assumption that a buyer will see your home, fall in love, and write you a check so the competition doesn’t matter. Wrong. Buyers don’t look at homes in isolation. Most look at 10-15 homes before making a buying decision. Because of this, setting a competitive price relative to the competition is an essential component to a successful marketing strategy.

6 reasons your home isn't selling

2011-08-09T20:51:00.000-07:00

6 reasons your home isn't selling

So, you're in agony because your home has languished on the market week after week. Here are some culprits that may be keeping buyers away in droves.

By Bankrate.com

Has your lawn grown up around that "For Sale" sign? Have the wasps moved into the lock box on your front door? Did you just receive an invitation to your real estate agent's retirement party?

If so, chances are your home sale fizzled.

Here are the six most-common reasons why homes don't sell and what you can do about it.

Your home is overpriced

Optimistic home sellers love to parrot the old adage, "There's a buyer for every home." But they often leave off the qualifier: "at the buyer's price."

The fact is that buyers, not sellers, ultimately determine the market value of a home. You can ask for the moon and set your listing price well above comparable properties in your neighborhood, but at some point it will be up to you, the seller, to accept what the buyer thinks your home is worth.

Overpricing is the most common reason homes don't sell. When you ask an unrealistic price, it sets in motion a process that often works against you. Here's why:

Most real estate agents, and hence most qualified buyers, will see your new listing within 30 days. If it is overpriced by as little as 5%, it will be duly noted and interest in your property will wane, especially if you show no intention of coming off your asking price. You likely already priced out buyers who might have qualified for financing at a more reasonable price. Even if you manage to find a buyer at your inflated asking price, the property may not appraise at that figure and the financing will fall apart.

Your real estate agent may have approved or even suggested the inflated asking price to secure your listing. Conversely, other agents often use overpriced properties like yours to help sell their own listings. ("Here's what they are asking. Now would you like to take a second look at that first house I showed you?")

"If you have a house that really should be priced at $200,000 and you've got it listed at $260,000, you are trying to compete against homes that really are worth close to $300,000 and all of a sudden your home really is not competing well," says Jeri Fisher of Jeri Fisher Real Estate in Missoula, Mont. "You want to compete with what is available out there among homes similar to yours."

If your home remains on the market for too long, agents and buyers may begin to wonder if there are other, perhaps more serious reasons why it isn't selling.

"It becomes shopworn, the same as a jacket hanging in the store week after week," says Fisher. "People are aware that it has been on the market a long time and agents stop showing it."

Your home doesn't 'show' well

Your home is competing against shiny new houses in those pristine subdivisions out in the suburbs with their attractive prices, incentives and community amenities.

Face it: Even the best old house needs a little makeover if it hopes to attract a qualified buyer.

The good news is most of the work will be cosmetic and relatively inexpensive: a new coat of paint, a few attractive window boxes, a thorough cleaning of floors and carpets. Voila! The place may look good enough to reconsider.

Nothing has a greater effect on your home's value than its location. Your humble abode might be worth a king's ransom were it located in Palm Beach, Aspen or San Francisco. It might even jump thousands in value just two streets over in the next (and far superior) school district.

"If you're in one of the higher-ranked schools around here, you're going to add $50,000 to $100,000 to the price of the same house," says Lenn Harley, a broker with Homefinders.com Inc. in Maryland and Virginia.

The point is, location rules in real estate.

If your home's location is less than desirable, your options are somewhat limited. A good real estate agent will do his best to help you accentuate the positive and eliminate the negative of your circumstances, say by using foliage to screen off offensive adjoining properties or dampen traffic noise.

The best way to compensate for a poor location is to reduce your asking price or offer attractive incentives such as seller financing or a lease option with rent credit.

You have a lousy listing agent

Yep, they exist: Real estate agents who mislead, misfire and misbehave.

Their bad advice can cost you plenty in time, money and the sheer hassle of keeping the place show-ready 24/7.

The agent from hell will allow you to overprice your home ("Here's what I can get for you if you list with me!"), not market it properly, fail to screen for qualified buyers, be unresponsive to interest from other agents (if they sell their own listing, they don't have to split the commission) and keep you totally in the dark throughout the process.

What's more, if your agent is abrasive, arrogant or otherwise difficult to work with, other agents may not want the hassle of showing any of their listings to prospective buyers.

In a "hot" or seller's market, homes go fast. Inventory (homes on the market) may be low, meaning less competition for you. Chances are better that you will get your asking price in a hot market; in fact, it is not uncommon to even be offered more than your listing price.

But in a "flat," "cold" or buyer's market, sales slow to a trickle, inventories grow and buyers can find bargains, especially when they know the seller is motivated (i.e., paying on two mortgages).

If you're trying to sell in a flat market, you're not only competing against all that vacant new construction, but against rentals as well. In this case, be prepared to settle for less than top dollar, or wait to sell until the pendulum swings once again in your favor.

You have ineffective marketing

Gone are the days when an agent could simply place your listing with the local multiple listing service, hold a halfhearted open house and wait for another agent to bring forth a buyer.

Today's top performers launch a multilevel marketing plan that includes listing tours for area agents, newspaper and even TV ads, weekend open houses, listing fliers and placements in local real estate publications.

Computers and the Internet also have changed the face of real estate. According to the National Association of Realtors, today more than one-third of all home buyers use the Internet for house hunting. The best real estate agents are computer-savvy. They have your listing in color on their laptops to show clients and communicate frequently via e-mail, a particular boon when working with out-of-town buyers.

Suffice it to say that if your real estate agent isn't listing your home online through the company Web site as well as with the local MLS, you may not be getting the exposure necessary to find a buyer.

"There are those who just put the listing in the multiple and pray it will sell and those that put a lot of effort into marketing their listings," says Fisher. "Unfortunately, with this weird system of compensation we have, they all get paid the same, whether they know nothing or have many years of experience."

4 Insider Secrets for Avoiding Surprises at the Closing Table

2011-08-03T18:58:00.000-07:00

4 Insider Secrets for Avoiding Surprises at the Closing Table

Tara-Nicholle Nelson, Trulia.com's Real Estate Realist

I used to pass a mortgage company billboard on the freeway every day that read: “Surprises are for birthday parties.” (Implied: surprises are usually unpleasant when they arise in the context of real estate transactions.) The worst case scenario that looms large in the minds of buyers, refinancers and sellers alike is that they’ll get to the close of escrow and some big glitch will arise, coming between you and your home – or your cash.

Here are 4 key need-to-knows to help you avoid getting a nasty surprise at the closing table.

Read my lips: no new bills (or other financial blips). Most savvy buyers know better than to run out and buy a car while they’re trying to buy a home. But you’d be surprised at how many don’t think twice before opening new credit accounts to buy appliances or finance the kitchen remodeling work they plan to have done as soon as they get the keys to the place. Many a lender will run a quick credit check right before closing, mostly so they can detect whether your bills – your monthly obligations – have increased to a point that pushes your debt-to-income ratio too high to qualify for the home, or would make it tough for you to pay your new mortgage.

If your escrow runs 45, 60 or 90 days (or longer) as they commonly do in short sales and sales of bank owned homes, new accounts can certainly show up on your credit report in that time frame, endangering the deal and generating a surprise “no deal” from your lender just when you thought you’d be getting a set of closing docs to sign.

Also, some lenders conduct a last-minute check of borrowers bank account statements. Of course they want to make sure that you have the cash you need to seal the deal. But you might be surprised to learn that lenders also want to be sure that there are no unexplained, major deposits to your account, as well. They know some borrowers are inclined to borrow fistfuls of dollars from family and friends just before closing in an effort to scrape together the cash they need to close their home purchase by any means necessary.

And, unless the money is a lender-approved gift, that’s not allowed! (Why? The mortgage lender wants to avoid the friend or relative later saying they “own” part of the house, and also doesn’t want your obligation to repay a “friend-and-family” loan to interfere with your ability to repay your new home loan!)

If you have any large deposits (other than your normal income) come in just before or during escrow, be prepared to both explain them and document their source.

Make full disclosure when you first apply for your mortgage or short sale. Today’s loan underwriters are notorious for being sticklers about verifying and re-verifying the facts on your loan application. And as mortgage guidelines have tightened, lenders have also tightened up the underwriting process, creating a virtual gauntlet of review after review, underwriter after underwriter that you have to get past in order to close your deal. The most critical one? The funder – it is this underwriter’s job to give the thumbs up (or down) on wiring your mortgage money into escrow.

Funders are the toughest to get past, understandably, because the buck stops with them when it comes to their employer’s issuance of tens, even hundreds of millions of dollars of mortgage money every year. So, they want to be sure every last one of your loan qualifying i’s are dotted and t’s crossed – up to the very last possible moment before they green-light the disbursement. They have the right – scratch that – the responsibility to re-check your credit, assets, even your employment at the last minute, and they take this responsibility very seriously.

And on a short sale, the pre-closing title check can reveal legal judgments and liens against the seller that have been placed on the property up to the day of closing.

I’ve seen deals fall apart or come to the brink of failure the day or so before they were supposed to close because a buyer had lost a job, turned out to actually be legally married (the divorce they’d put on the application was not yet final), or a new collection account had surfaced. I recently saw a short sale nearly cancelled when a new collection account of the seller’s was filed as a lien on the house. Once, I even saw a deal killed beyond salvation when a last minute credit re-check surfaced a social security number flag that revealed one buyer was not in the country legally!

To avoid these sorts of last minute surprises, be 100 percent honest with your real estate and mortgage agents at the beginning of your homebuying (or selling) process about any and every area of your life that corresponds to a mortgage or short sale application question, even before you complete the application – there’s almost no such thing as an overshare at that stage. That puts them in a position to help you avoid closing table drama from the jump, even if it means they advise you to stay in your job, settle some bills or buy the home on your own, rather than with your spouse.

Watch the calendar closely. Buyers who originally were pre-approved for their mortgage many moons before they find the right property should obtain updated estimates of their mortgage payments and the cash they will need to close their purchase as their house hunting period goes on, and especially once they have a firm closing date estimate. Mortgage interest rates can change dramatically over a period of a few months, and closing costs vary widely based on things as seemingly minor as whether your transaction closes at the beginning or the end of the month.

To avoid getting to closing and realizing that you have to come up with an extra few weeks’ worth of prepaid mortgage interest because your closing date changed, make sure your real estate and mortgage brokers are in close communication, and ask them to keep you apprised of how any closing date changes will impact the size of the check you’ll have to write to close the deal. And if you’re buying a property that is a short sale or foreclosure, ask them to give you this briefing as soon as possible (and as frequently as possible!) in the transaction so that you can prepare a little cushion of extra cash in case closing is delayed for reasons beyond your control (which happens very frequently in these sorts of sales).

Obtain and review your closing documents in advance. I used to give this advice mostly to buyers, urging them to ask their agent and mortgage broker to provide them with their loan and title documents at least a day or so in advance – earlier, if possible. If you have to sign 300 pages at the closing table and you know your keys and moving plans hang in the balance, the chances you’ll be scrutinizing every line are pretty slim – and if you do happen to catch an error, the time it will take the lender to revise and reissue a set of papers can throw your moving calendar entirely out of whack.

The best practice is to get these documents in advance, so you can check on line items like the interest rate and monthly payment in the comfort of your own home or office, ask questions of your representatives and initiate any corrections that need to be made without disrupting the plans for signing and closing.

And this applies to sellers, too – even though buyers have a much higher volume of paperwork to get through at closing (and errors can be costly), closing doc errors occasionally arise that have a serious impact on sellers, as well. I was once asked for advice in a situation where the seller owned two neighboring parcels of land, and the title paperwork for the sale of one erroneously included the other one, too! It took a boatload of high-drama legal wrangling to get the mistake corrected, and get the sellers' other lot back.

Things to Keep in Mind Before You Buy a House

2011-07-31T22:25:00.000-07:00

Things to Keep in Mind Before You Buy a House

I am sure one dream of everyone during their lifetime would surely be to buy their own nest which they can finally call their own and settle down. However, a house cannot just be bought overnight. There is some research and homework to be done before actually buying a house.

There are many options available to the buyer when he decides to purchase a property he has to first make up his mind if he is looking to buy an independent house or an apartment. Depending on the type of property he is looking to buy, he can take the next step and decide on the location. The buyer can decide the best location for him to buy the property depending on his needs. As, if he is a nature lover then it would be ideal for him go in for a property in a serene locale rather than on a busy road. Once he decides on the location, he has to fix his budget and buy house only within his budget to save time and money. Location and price decided one also has to take into account the future value of the property as any property should only be bought with the aim that its value will appreciate only in future.

Buying your own house involves huge investment, so the buyer needs to make sure he can afford the finances on his own. Otherwise, he can take a bank loan according to his financial ability. He also should make sure that the documents of the house are straight and clear. It is advisable to take the help of a legal expert in this matter to make sure all the intricate details of the property documents are properly analyzed.

One major point the buyer has to keep in mind to buy house will be that they should not be deceived by the tag low prices on advertisements. Low price may seem good to the eyes but only when the buyer goes closer to analyze the property will he realize the huge hidden prices attached in the form of repairs or deviations.

If the buyer does not want to go through all these procedures and head aches involved he can just assign the job to a house broker who will take care of the entire dealings from scratch and help the individual buy his dream house.

So keep these things in mind before you venture out to buy your own home sweet home.

6 Tips For Timing a Real Estate Purchase

2011-07-20T20:29:00.000-07:00

Your Home - 6 Tips For Timing a Real Estate Purchase

6 tips for timing a real estate purchase

How fence-sitters can get a jump on the competition

By Dian Hymer
Inman News™

In mid-June, interest rates on home loans were lower than they were a year ago. However, this failed to ignite the housing market. Many buyers and homeowners would like to make a move, but some find it impossible to make a decision. They are commonly referred to as fence-sitters, poised to make a move when the time seems right.

The housing market is unlikely to turn around soon, but this doesn't mean that now is not a good time to buy or sell. It depends on your personal situation and market conditions in the area where you plan to buy or sell.

Become an expert on your local market. Knowing a good deal when you see it or what price to ask if you decide to sell depends on having a good understanding of how much properties are selling for in your neighborhood.

While you're trying to decide what to do, line up a team that can help you accomplish your goal when you decide to move ahead. You can do this by researching online, attending open houses in the area and asking a real estate agent to keep you on top of market fluctuations.

Your decision to buy should be based on your personal financial situation, not on the national or global economy. For example, if you bought during the bubble market and are now getting divorced, you'll probably sell for less than you paid.

But, if the house is too expensive for one to support, it may be cheaper in the long run to cut your losses and sell now. No one knows how long the housing downturn will last. Prices could move lower before rebounding. This is not an ordinary recession.

HOUSE-HUNTING TIP: Don't get caught up following the herd. Just because most people in your area aren't buying or are having difficulty selling doesn't mean that you shouldn't make a move. Just make sure if you're a buyer that you have job security, a relatively healthy economy in your local area and a plan to stay put for at least 10 years.

The housing market will be volatile going forward. Good economic news will help fence-sitters make the decision to get serious about moving. Bad news of any sort can cause the market to stall. To take advantage of the upticks in the market, you need to be prepared in advance.

Find a good local real estate agent to work with who understands your needs, and wait to buy or sell until the time is right for you. It could take you a year or so to make the final decision. Some agents don't have the patience to stick it out.

Select an agent who will educate you about the market and the idiosyncrasies of the home-sale business in your area. Ask to be kept informed about sales in the area. Many agents are set up to do this electronically, which is an easy way to keep you informed without taking up a lot of the agent's time.

One of the most difficult aspects of the current home-sale business is financing the transaction. Find a loan agent or mortgage broker who is a real professional, has been in the business for years and who understands what current underwriters will require from you to process your loan.

Assemble all the financial documents you'll need for loan approval even before you start looking. Ask your agent or broker to have your loan package previewed by an underwriter so that you know beforehand if there are any problems.

THE CLOSING: Remedy these in advance so that they don't cause last-minute delays in closing.

Dian Hymer, a real estate broker with more than 30 years' experience, is a nationally syndicated real estate columnist and author of "House Hunting: The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide."

40 Revolutionary iPad Apps for Homeowners

2011-07-08T18:23:00.000-07:00

40 Revolutionary iPad Apps for Homeowners

Posted by admin on Jul 7, 2011

Buying and owning a home can be an amazing experience, and a great investment to boot, but that doesn't mean homeownership is always a walk in the park. From buying a new home to making your current one look fantastic, homeownership can be a lot of hard work. Luckily for modern day homeowners, there are technologies — including the increasingly popular iPad — that can help make things a little easier and ensure home improvements don't wreck havoc on your personal finances. iPad owners will find a wealth of techie tools out there to help them do everything, from choosing a paint color to landscape their yards and just about everything in between. Here, we've highlighted some of the best iPad apps for homeowners, whether they're looking for help, advice and or perhaps just a little inspiration to make their houses into homes. Buying and Selling Install these applications on your iPad to get a little help finding your dream home or selling the home you already own (or both).

Zillow: With Zillow, you can find homes in any neighborhood based on factors like number of bedrooms, bathrooms and price. You can also get estimates of what your home and those in your area might be worth– a helpful tool when thinking about selling.
Trulia: Trulia has thousands of home listings, making it easy to find real estate in your desired area and check out pictures online.
LoopNet: Another real estate search tool, this application is perfect for the homeowner looking to upgrade, downsize or just make room for an expanding family.
Coldwell Banker: If you want to go with a trusted real estate broker, you can try this app showcasing homes listed with Coldwell Banker.
Home Value Pro: Want to know how much your home is worth? How about the one you're thinking about buying? This application will give you accurate and reliable estimates of home values across the U.S.
Mortgage Calculator: Figure out how much your monthly payment would be on a new home using this handy tool.
Realtor.com: If you still haven't found the home you've been dreaming of, take a look at this real estate app for a great selection of listings.

Home Control and Automation For decades, people have been imagining a home where everything is controlled by a computer. These days, that dream is a reality for some homeowners, and these apps help to control every aspect of a home, from the lights to the entertainment system.

Control4: This application turns your iPad into the ultimate touch screen remote, allowing you to control you TV, lights, sound system and home security from one easy place.
Vantage EMEA Home Control: Whether you want to set the mood or turn your living room into a movie theater, this application can help. It lets users adjust everything from the temperature of a room to the volume of the stereo.
Lutron RadioRA2: Control lights, shades, temperature and appliances with the touch of a digital button using this iPad app and accordant Lutron setup.
Splashtop Remote: This application allows users to see their desktop computer screen from anywhere, using an iPad, iPhone or other mobile device.

Interior Design and Decor Making your home look amazing doesn't have to be a chore. Use these apps to choose paint colors, get inspired by high end design, find great furniture and even choose a wood color for flooring.

Craigsphone: Originally designed for the iPhone, this application also works well on the iPad, allowing homeowners to score discount furniture, a great new house or even a new stove – all from one centralized place.
Ben Color Capture: Benjamin Moore paint has created this application that lets users take a picture of just about anything and find the closest matching paint out there.
Houzz Interior Design Ideas: Need some inspiration for your interior design project? With over 100,000 photos on hand, this mobile database is sure to provide something that catches your fancy.
Dream Home HD: Get some ideas on how to integrate the latest interior design trends into your home with this amazing photo-rich application.
Palettes: If you're trying to develop a color scheme for a room, this can be an invaluable tool, letting you pull together colors to see how they work before investing in any decor.
Sherwin Williams Color Snap: Take a snapshot of your favorite color and easily find a coordinating or matching paint from Sherwin Williams' line when you use this application.
Paint Tester: Instead of getting stuck with walls painted in a color that just doesn't work, use this app to try out the color ahead of time, no paint involved.
Trends: This application will help you to keep up with the latest in design trends. While some may be a bit high-end, it can provide inspiration for your budget version of the same look.
I.D. Wood: Want to know what kind of wood your floors or dining chairs are? In this, you'll find a reference guide that can help you ID any kind of wood or to choose a color and grain that you love for future projects.
MySurface: DuPont makes it easy to find the color that's perfect for your home, whether inside or out, kitchen or bath, with this application.

Home Improvement Even if your home is already pretty nice, chances are good that there's something you'd like to change or improve on it. These apps can help, assisting you in managing costs, buying supplies, and laying out a design.

Sum+It Project Cost Calculator: Renovations don't come cheap, but you can help reduce the shock of it by using this tool to do a little calculating of costs before you begin the job.
Home Design It Yourself: Create a room and arrange furniture and other elements in it without lifting more than a finger with the help of this great application.
Photo Measures: With this tool, you can easily measure any part of your home simply by taking a photograph of it with your iPad.
Kraft My Style: If you're thinking of installing new cabinets, this application from KraftMaid can help you get an idea of what would look good in your space.
My BTU: Whether you're thinking of getting new radiators or are just curious about your home's energy usage, this application will help you determine the BTUs you need to heat a room.
Renovation Budget Tracker: It can be easy to go over budget when doing renovations, but with this tracking application it can be a lot easier to stay on track, with charts and information that break it all down.
Home 3D: Don't tear down a wall until you've used this excellent home modeling software that will let you see how your home will look when it's finished.
HGTVtoGo: Get home decor ideas, help with home improvement and more from this popular cable station's application.
Remodelista: You don't have to look far for remodeling inspiration when you install this interior design and DIY application that is full of amazing ideas.
Home Improvement Glossary: If you're not familiar with the home improvement jargon, then get yourself this application. It contains hundreds of words you can look up and define.

Tools and Calculators These handy apps will make doing math a cinch for homeowners, leaving more time for the important stuff.

Ruler 2: Home improvements often require a boatload of measurements. If you don't have a ruler handy, start out with this digital one instead.
Home Sizer: Whether you're designing a new home or remodeling your existing one or just want to know the size of your bedroom, this tool can help.
Task This: Home renovation and decoration can require a lot of errands and supplies. Keep track of everything using this handy tool for homeowners.
DIY Calculator: Whether you're adding paint, wallpaper, tile or another product to a room, this calculator will help you determine just how much you need.
DIY Toolbox: This handy app has just about every kind of calculator you'd need for home renovation projects, from converting units to figuring how much of a certain supply you need.

Outdoors Ensure your home has some great curb appeal by using these landscaping apps to add plants and improve your garden.

iScape: If your yard is a boring expanse of grass (or dirt), then turn it into something special with the help of this application that lets you lay out landscaping digitally, helping to ensure your plantings will look great when you put them in.
Gardening Toolkit: From gardening photos to help knowing what plants would grow best where you live, this application will help turn you into a master gardener.
Landscaper's Companion: This application is the ultimate reference guide for information about trees, shrubs, flowers, herbs and all kinds of plants.
Planimeter: Want to know how big your yard is? This tool is an awesome way to easily find out without pesky tape measures.

How to Make Small Spaces Appear Bigger

2011-07-05T21:34:00.000-07:00

How to Make Small Spaces Appear Bigger

Whether you live in a small studio or a pocket-sized home, making do with your lack of square footage can be a challenge.

There are a few little design tips, however, that can make any space — especially a small one — seem bigger.

Paint

Painting a room is an affordable and easy way to make your room feel different. It’s also the simplest way to fake a big room. Rather than painting in dark tones, keep your walls light in whites, light yellows, blues or greens. Although it may seem counter-intuitive, keeping the walls and ceiling monochromatic can make a space seem bigger. If you want some sort of contrast between the ceiling and walls, paint the walls one shade darker.

Matching walls and ceilings make this Portland condo appear larger

Furniture

Contrary to what you may think, small furniture in a small space is not always the way to go. A grouping of a small chairs and a tiny sofa can make a room seem cluttered. Instead, choose one larger piece as the focal point and restrain from adding too many other pieces. If you are dealing with a small kitchen or dining area, look for a table with leaves or folding sides that can expand for more guests while staying small for the day to day. Once you have your furniture, don’t push everything against the wall. Place one piece at a diagonal, which leads the eye along the longer line. Bonus? Added storage space behind the furniture.

An angled couch tricks the eye into seeing more space in this Fort Worth home

Mirror, Mirror

While mirrors were the choice decor in the 1970s, hanging a mirror can still make a room look larger since it reflects light and gives the appearance of another window. Rather than using a bunch of small mirrors, use a large mirror as your focal point on the largest well or above the fireplace.

This Columbus, OH home has a mirror to reflect light back into a small space

Let There be Light

Dark rooms tend to look smaller. If you have windows, make the most of them with window treatments that won’t block the light or the view. Add additional lighting with floor lamps or table lamps. If you’re really crunched for space, track and recessed lighting can brighten up the place without taking away from precious square footage.

Do as these Falls Church homeowners did and add track lighting to brighten a small room

Less is More

Clear out the knick-knacks and books. Choose your extra decorations sparingly. Or, if you want to have a collection of something on display, arrange it by color.

Basic decor keeps this New Orleans condo looking spacious

I Bought A Home, Can I Break My Lease?

2011-06-20T22:18:00.000-07:00

I Bought A Home, Can I Break My Lease?

Q:
Are there laws that allows me to break a lease because I’ve purchased my first home?
–Ben, Memphis, TN

A:
Absolutely not! A lease is a binding contract between two parties that provides for a certain amount of money (rent) to be paid over a certain amount of time. Unless your particular lease has provisions that cover the scenario you’ve describe (it’s likely that it does not), you are liable for rent payments for the term of your lease.
Check with your landlord. He may be able to work out some accommodation with you that would allow for you to get an early termination of your lease obligation.

Lee Dworshak is a Realtor® with Keller Williams LA Harbor Realty in Rancho Palos Verdes, CA.

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Repaint Your House Now Using these 3 Ideas

2011-06-18T15:55:00.000-07:00

Repaint Your House Now Using these 3 Ideas

Choosing outside house colors can be tricky. It often takes years of expertise to know what colours and materials will combine well. and choosing the incorrect color paint or material can be an extraordinarily expensive blunder.

You will take in your walls & either must allow the colour for several years or spend lots of cash to fix them. These are three tips that can help you make the right choices.

Selecting the appropriate Paint colors

The most frequent mistake in picking exterior home color is that the color is too light. The sunlight will wash out colours outside, so selecting a light color will end up appearing white. Whenever choosing colours, do not forget that they frequently really should be more gray or brown than you consider.

For example, a gray with a trace of green in it will seem greener than you may expect if painted on the entire property. When you choose a colour & can say ‘yes that’s green’, you have likely selected too ‘green of a green’.

Colors For Your Windows

If you are deciding on improved windows & you must paint your home a dark color, consider choosing a window that is cream or almond color. A bright white window on a notably dark house colour will frequently have too much contrast.

Never Forget Your Roof

When the roof of a home is noticeable, it would be a notably interesting component. Deciding on the erroneous color roof is a very costly error so it’s important to appreciate some broad rules.
Take in what shade the home is going to be painted (or else if it’s brick or stone, consider the general shade of the surface). If the apartment is being given brighter colours, perhaps a brown roof will likely be the correct choice.

If the house will probably be cooler, colours (like grays, blues or greens), then a dark gray roof. If you have got to choose on a roof colour to begin with, one of the most characteristic & adaptable decisions is a dark gray color.

If you’re installing a metal roof, think about colors besides the conventional green, which works very well on buildings with log siding, but not too much else. Again, pick a colour which will enable you some flexibility in color choices.

Article Source: SuperPublisher.com

Three Things Not To Do Before Your Short Sale Is Approved And Closed

2011-06-14T10:14:00.000-07:00

Three Things Not To Do Before Your Short Sale Is Approved And Closed

A short sale can be a long and sometimes confusing process and as the seller it can be hard to know what to do while you are waiting to close the deal. Realtor® Minna Reid of North Windham, Connecticut reports that she has seen an increasing trend toward investors scrutinizing her clients financial and credit information when making approval decisions on short sales and asking for seller contributions much more often than before. She has some key advice for those looking to have a short sale approved:

Some of my clients are really in tough shape financially and have already ruined their credit, spent whatever savings they had, and are facing foreclosure. Those short sales for the most part are still very easily approved.

This problem would apply much more to those short sellers who have good income, credit, assets, and who have not yet or have just defaulted on their mortgage payments. There’s been a great increase in the past year or two in this more “strategic” short seller and they are exactly who the investors are trying to crack down on and get contributions from in order to approve short sales.

If the above description applies to you, you can pretty much expect that you will be asked to contribute in the form of a cash contribution or promissory note in order to close. However there are a few things you can do to decrease the odds of being asked to contribute, or to reduce the size of the requested contribution. During the approval process and prior to it, do not:

Make large purchases or open lines of credit – buying a new car at this time or going on a lavish vacation will be noticed by the investor and won’t make them sympathetic to your situation.

Accumulate or transfer large sums of cash – this will almost always raise an eyebrow and you will be forced to explain the circumstances.

Start paying off other debt – if you’re paying off your credit cards while not paying your mortgages, be prepared to explain this one to the investor, and again – don’t expect this to work in your favor.

Keep in mind – if you’re flashing money in their face while asking them to forgive your debts, they’ll come looking for their piece as well.

Click here to read more blog posts by Minna Reid.

Top 5 Signs Of A Bad Real Estate Agent - Investopedia.com

2011-06-11T20:45:00.000-07:00

Top 5 Signs Of A Bad Real Estate Agent - Investopedia.com

If your home is listed for sale and it just won't sell, it may not be your real estate agent's fault -

Lack of Communication
If you haven't heard from your real estate agent in a few weeks, it's time to find a new one. Even if no one has called for a showing of your home, or your agent hasn't found any homes that meet your requirements as a buyer, he or she should be touching base with you regularly to keep you up to date on the work that has been done on your behalf. After all, there's no doubt you're thinking about your home transaction almost daily - as an agent acting on your behalf, shouldn't your real estate agent be keeping you in mind?

Lack of Leadership
If your real estate agent agrees with you on every point, this is the sign of someone who's eager to please - not someone who's committed to doing the best possible job at representing your interests in the real estate market. When it comes to pricing a home for sale, insist that your agent produce the research that was used to arrive at that price. An agent who asks you what you think your home is worth and lists it for that price is a sign of trouble.

Your real estate agent is supposed to be an expert, so look for one who can take the lead and provide you with well-reasoned advice. That said, your agent should also be acting on your behalf, and must take your final word in the end. (For related reading, check out 10 Tips For Getting A Fair Price On A Home.)

Unused Resources
Many real estate agents will use all of the tools at their disposal to market your home to the public and help you find a new one that meets your needs. Some, however, will do next to nothing and rely on other real estate agents to market your home to their clients. Expect your real estate agent to take good photos and descriptions of your home if it's for sale, and list it anywhere that may draw more interest to it, including putting the listing onto real estate websites, into local newspapers and even distributing flyers to homes in the area. Sure, your home might sell without this extra effort, but is that really the kind of person to whom you want to pay a commission?

In Pictures: Financing For First-Time Homebuyers

Too Much Pressure
While you should seek out a real estate agent who is knowledgeable enough to have an educated opinion and confident enough to (respectfully) voice it, if you feel your agent pushing you in any particular direction, this should send up a red flag. Particularly when you're buying a home, there is no real reason why an agent should want you to buy any particular home over another. If you get the feeling this isn't the case, you could be being steered toward homes listed by your agent or your agent's brokerage, which can produce additional commissions for your agent. (Learn more in Finding A Good Real Estate Agent.)

Most state laws force real estate agents to reveal this conflict of interest to buyers, but if you feel your agent isn't being entirely open, beware. Your real estate agent's job is to act in your best interest and ensure that you're happy with the outcome of your real estate transaction. If you think your agent is preoccupied with his or her own interests, it's time to find another one.

Lack of Follow-Up
Whether you're buying or selling, many real estate agents think their job ends on the home's possession date. This is the day upon which the transaction is considered complete, and the real estate agent is paid. An agent who calls beyond this date to address any follow-up questions you might have and ensure that you're happy with his or her work is going above and beyond what is required and showing a commitment to customer service. After all, at this point your agent's commission check has already been signed, so this level of care is a great sign of an agent who is willing to do what it takes to make you happy and keep yourbusiness in the future.

The Bottom Line
As in every line of work, there are great real estate agents and there are terrible ones. However, in a tough real estate market like this one, you might have to gauge their performance on more than just a speedy transaction, which for home sellers, may be all but impossible. (For more tips, check out Do You Need A Real Estate Agent?)

Find out what happened in financial news this week with Water Cooler Finance: Mergers, Hostile Bids And SEC Probes.

Finding And Being The Best Real Estate Partner

2011-06-07T13:45:00.000-07:00

Finding And Being The Best Real Estate Partner

Having a hard time finding a good, reliable partner. Well look no further, here are a few tips and pointers to figuring out if you have a good partner or not.

1. Communication

If you have a partner make sure he or she can speak clearly enough so that you can understand them, and the same goes for you. Not knowing what your partner is saying or what you are saying half the time is not a good way to do business with each other or other people, and can lead to miss information that could be vital to your business. Another thing with communication is make sure that you or your partner knows what is going on. Don't make decisions without each other because someone may have a different outlook on the situation that could help the deal or plan go much smoother than what you might have thought to be a good idea.

So make sure you can understand each other and make every move with your partner so they know what is going on.

2. Work Ethic

Are you the kind of person that will work around the clock making sure that things get done and everything is in order? If so, that is great, because in order to make things happen whether it is a purchase or a sale or negotiating you have to stay on top of things so they can get done. Your partner should have the same or close to the same work habits you do. That way you can be an unbeatable team that will take on any thing and grow successful.

So make sure your partner is just as willing as you are to put in time and effort to find the deals, potential buyers, help make the sale, or what ever else, because nobody wants a lazy partner just collecting checks and not helping in getting them.

3. Knowledge

Knowing what you are doing will only make things easier for you. If your partner knows nothing then they need to get with the program and learn a few things before they try to jump head first into something that could hurt the company or the partnership or both. Now I know there are new people out there getting their feet wet, trying to learn the tricks of the trade but, that is what they have you for or the other way around. Ask the other person "what do I do" if you don't know what to do, and make sure that the other person asks you as well if they don't know what they are doing. That way either one of you can see that the other want to learn and be ready in case this problem ever comes up again.

So if you know what you are doing and the other person does not, try to teach them and if it is the other way around, try to learn from them that way you both can be on the same page.

Over Look

All 3 of these things will tie into each other, from wanting to learn more to become a better partner, to updating your partner on information that could help your partnership, to trying to find out information that will lead to the big a pay off. If you and your partner show all 3 of these to the fullest, you all will no doubt come out on top every time, but if you don't, things can be very difficult. From seeing this myself it made things hard for my father to get things done, when he was with a partner did not care what would happen as long as he gets paid, or always disagreeing even when he know he was wrong. My father was the only one in the partnerships doing all the work. So if you had enough of your partner you might just have to let then go. You shouldn't have anyone slowing you down and don't you slow anyone else down from getting on the road to success and happiness.

William G. Cook

http://www.webuyhousesattlc.com/

Article Source: http://EzineArticles.com/?expert=Will_G_Cook

Article Source: http://EzineArticles.com/6324971

First Time Buyers - 10 Reasons to Use an Online Local Business Directory

2011-06-01T15:45:00.000-07:00

First Time Buyers - 10 Reasons to Use an Online Local Business Directory

If you are buying or have recently bought your first property, there are a number of services you may require in your local area. When looking for these services, where better to begin than with an online local business directory? Here are 10 such services and how a directory can help.

1. Estate agents - If you're on the verge of buying your first property, it's important that you have a broad view of what is available throughout the village, town or city you have chosen. A directory will pull up every estate agent, as well as provide the contact information you'll need to find them.

2. Schools - If you have children, finding out the locations of the schools in the area you're looking. You may want to cross reference this with a list of the region's best performing schools, so you can choose your new home based on where your children can get the best education. A business directory can show the results on a map, so you can get an idea of what schools are close to the area you're searching in.

3. Mortgage advisors - You may wish to get some financial advice regarding your property purchase, especially as it can be very difficult for first time buyers to get onto the property ladder. A directory can provide contact information, as well as website details for each advisor, so you can choose the right one for you.

4. Property solicitors - Once you're purchase is progressing, you may want to get legal advice to make sure all the necessary aspects of the investment are addressed. It may be worth noting that property solicitors are also referred to as residential conveyancing experts.

5. Plumbers - Once you've moved into your new home, it could be beneficial to have the contact information of some trustworthy tradespeople in your area. By reading reviews that are provided on many online business directories, you can find out which ones are worth trying.

6. Window cleaners - If you're keen for your house to start off and remain looking its best, finding a local window cleaner will be of considerable benefit. By using a directory, you can gather a list of local firms to call up and try.

7. Train stations - If you're planning on commuting to work by train, having a mapped out view of where your local stations are could be important to your decision-making process.

8. Restaurants - Once you're in your new home, there are a few things that you're going to want, including where you can go for a meal. Knowing the local layout for restaurants and bars could be useful when it comes to enjoying your local surroundings.

9. Doctors and Dentists - Unless you're only moving round the corner, there's a fair chance you'll need to find a new doctor and dentist that are conveniently located. An online business directory can help you find the surgeries and practices near your home.

10. Supermarkets - Getting your weekly grocery shop done will mean knowing where your nearest stores are located. An only directory will let you search by category or, if you're loyal to one brand, by a specific supermarket's name.

Article Source: http://EzineArticles.com/?expert=Simon_S_Smith

Article Source: http://EzineArticles.com/6314250

Sell Your House Now or Rent It Until Market Improves?

2011-06-01T14:02:00.000-07:00

Sell Your House Now or Rent It Until Market Improves?

by Bob Kelly, Guest Writer

There are times when talking to potential sellers a discussion arises about selling now vs. renting until the market recovers. Sellers today who are suffering from sticker shock about what comparable homes are selling for in their neighborhoods start to sing the well known song, “If I can’t get my price, I’ll rent it.” When that refrain surfaces I launch into my chorus of “Make sure you know what you are getting into.” All joking aside renting your property vs. selling it brings up issues that may not have been considered and should definitely be verified before making such a decision. The rules regarding tenant rights are different in every state and should be investigated with a real estate attorney before entering into any such agreement.

Here are some pitfalls to think about:

When you rent your home you will be getting calls from the tenants when problems arise. Appliances break, vandalism happens, small things are not quite right or as expected by the tenant. Who will handle and overcome these objections? If you are moving out of the area, it certainly won’t be you. If it is you, are you equipped or interested in dealing with things whenever they happen? You can hire a management company that will intervene on your behalf and be a buffer between you and your tenant, but it will cost you a percentage of the monthly rent.

A landlord in most states must set up an interest bearing escrow account solely for the purpose of holding the security deposit. You are not at liberty to use this money at any time. At the end of the lease term you must return the security deposit plus any accrued interest to the tenant.

There will be an added cost to you to change your homeowner’s insurance from “owner occupied” to “investor” status. Check with your insurance company before making any decisions.

In certain states is can take 60 days or longer to get an eviction for either delinquency or non-payment of rent. That is time that you will have to absorb the costs entirely for the property plus the attorney fees.

In many states should a tenant declare bankruptcy they cannot be evicted until the bankruptcy is settled. This could take 3 years or more. You will be having someone living there rent free and perhaps not taking proper care of your investment.

When you do decide to sell your property it is now an investment property instead of your primary dwelling and there may be higher fees to pay at the time of sale.

We all like to think on the bright side and rarely want to look at what could possibly go wrong. This is one of those cases where before making any kind of decision you need to consult with the experts in your state—a real estate attorney, your insurance company, and a realtor or management company. Also do the “what if” scenario on paper and determine how long you can absorb the extra costs should something go not quite as planned. You may find that the potential for loss far outweighs what you would be losing if you decide to sell at the current market value.

Click here to read more blog posts by Bob Kelly.

8 factors that devalue a good home - Business - Eye on the Economy - msnbc.com

2011-05-27T09:03:00.000-07:00

8 factors that devalue a good home - Business - Eye on the Economy

If you're considering selling your home, there are a number of factors you should consider regarding the resale value of your property. Some of these issues may devalue your home or scare some potential buyers away entirely, even if your home is an otherwise outstanding property.

Consider these eight factors when listing your home:

Scott Olson / Getty Images
Some buyers are understandably leery of purchasing homes located on flood plains
1. Location, location, location
Many real estate television shows repeat this phrase over and over. Buying a home in an area that provides residents with access to services and effective transportation is important — though many buyers don't wish to live too close to airports and busy roads for fear of noise.

Visual appeal is another concern. Cell phone towers and power lines can be seen as eyesores — or possibly even having potential health hazards. Local school closures can also deter potential buyers who have children or who are considering having children in the near future. Some buyers may be leery of purchasing homes that are on flood plains.

To ensure maximum resale potential, consider how many of these types of issues exist near the properties you're considering. Remember, though, there's no way of knowing exactly how a neighborhood will evolve over time.

2. Good renovations gone bad
If your home looks like a DIY nightmare, this can definitely devalue your home. Though putting money into renovations generally increases the value of a home, poorly done renovations can have the opposite effect. If buyers feel that the renovations will have to be redone, there's a good chance they'll make a lower offer or keep looking for a move-in ready home.

3. Overly creative customization
That bright pink feature wall might have seemed like a good idea at the time, but the truth is that unusual paint choices — both inside and outside the home — can turn buyers off, even if your customization is the cutting edge trend in current home design magazines. Customizing spaces so that they may not be functional to future buyers, like turning the garage into a home gym or a granny apartment, might make some buyers reluctant to buy your property.

The same can be said for unique landscaping choices or renovations that are too high scale for the house. A professional chef's kitchen or marble bathrooms in a modest home suited to first-time buyers won't likely provide a good return on investment.

4. Unappealing curb appeal
The first thing potential buyers will see is the exterior of the property. If the house appears to be outdated or in poor repair on the outside, people will assume it is the same for the inside. Water features or swimming pools and overly landscaped green space may turn off some buyers since people tend to associate high maintenance yards with expensive upkeep and unnecessary headaches. Old fences and sheds can also devalue your home, especially if they look like they're in dire need of replacement. Keep the gardens weeded and the lawn mowed so that potential buyers can see how nice the property is, inside and out.

5. Pets gone wild
Many people won't mind buying a home that has had resident animals, but no one wants to live with constant reminders of former owners' pets. Damage to carpets, walls or a strong smell of animals will put off some buyers — especially those with allergies. Consider letting your pets live elsewhere while the property is for sale. Also, a good cleaning and repairing of any visible damage will help to mitigate the potential devaluation of your home associated with pet ownership.

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6. Not-so-nice neighborhood
A dodgy neighborhood with a high crime rate or homes on your block that look unkempt can scare potential buyers away. Even if your neighbors have unusual-colored homes or have made strange additions to their homes, this can be perceived by potential buyers as an eyesore.

7. Sinister reputation
Well-known crimes, deaths or even urban legends associated with your house or neighborhood can decrease the value of a home immensely. Most people don't want to live in a home where they feel that something awful has happened, much less move in with your alleged resident ghost! Though these kinds of issues may be out of your control, they may certainly have an impact on the resale value of your home.

8. Frightful Foreclosures
Many buyers are leery of purchasing foreclosures that are being sold on an "as-is" basis. The fear is that the home could be a money pit or require a huge amount of repairs before being move-in ready. Some good homes may be available through foreclosures, but it's important to do your research, ask lots of questions and don't be afraid to bargain. It's also crucial that you get a home inspection so that you know exactly what you're getting into. There's a good chance that some work will be required when buying a foreclosure, but you may get great value for your money if you're willing to put in a little work.

The bottom line
Neighborhoods change over time, so there's no way to be totally sure when you buy a property how the area will look in the years to come. However, you should always make your best efforts to address any issues with your property that are within your control. Play up your home's strong points and get involved with your real-estate agent to ensure that any special features of your home and neighborhood have been highlighted

Today’s Real Estate Investors: A Vital Force in America’s Communities

2011-05-26T17:32:00.000-07:00

Today’s Real Estate Investors: A Vital Force in America’s Communities

Homeowners flinching at the latest home price reports may not be in a grateful mood right now. But what they may not realize is that property values could be in worse shape if not for the recent actions of many unsung players in their local housing markets -- investors.

Today, while investors make up less than 20 percent of all home buyers[1], in recent months they’ve been quietly buying approximately 35 percent of all homes sold each month.[2] Even more intriguing, investors are expected to become three times more active than typical homebuyers in the next two years, based on data from a new investor survey recently conducted for Move, Inc.

While there’s nothing new about investing in real estate, today’s climate has made it an attractive option for a wide variety of little known buyers in thousands of communities across the country. Many are typical homeowners who probably won’t or can’t sell their existing home at today’s prices. Instead, they opt to rent them out until prices improve. Others are taking advantage of low prices to buy second homes or retirement properties as long term investments, and then rent them until they’re ready to use the property themselves.

They also don’t fit the stereotypical deal driven buyer known as a ‘flipper.’ Most real estate investors today are beginners; only 36 percent have done more than one deal.[3] Most are financing over 50 percent of the transaction; only 18.5 percent will use all cash. They also have a heightened interest in their local communities; 62 are paying more attention to local home values today than they were a year ago. Two-thirds say they’re investing for the long term and half plan to hold their properties for five years or more.

It’s also important to keep in mind that today’s investors do more than just reduce local housing inventory with their purchases. Many repair the properties they buy and then live in them until they’re ready to sell or return them to the community as rentals or restored properties for sale. For many it’s a labor of love; some 42 percent of investors[4] save money by doing the work themselves.

For some, the decision to venture into real estate investing is simply a matter of economics and opportunity. They see prospects for a 10 to 20 percent gain over five years as a real estate investor, where others see overstocked housing inventories with little chance of earning value. They see stock marketinvestments in today’s recessionary climate are only yielding 1.6 percent a year over five years.[5] They also see the potential to regain recent portfolio losses within a local housing market they know and probably lived in for many years. It’s a once in a lifetime opportunity for many that cannot and must not be ignored.

Local real estate investors are a more vital force in the marketplace today than perhaps at any other time in recent history. They are a little known factor that’s shoring up many local housing markets. One might even say American entrepreneurialism is helping to preserve the American dream of homeownership.

In the next few years, it’ll be very interesting to see how they fare as the market changes. In the interim, let’s give them credit for the role they now play in helping to keep local housing markets alive.

By Steve Berkowitz

Chief Executive Officer, Move, Inc.

8 Must-Have Numbers For Evaluating A Real Estate Investment - Investopedia.com

2011-05-26T09:51:00.000-07:00

8 Must-Have Numbers For Evaluating A Real Estate Investment - Investopedia.com

8 Must-Have Numbers For Evaluating A Real Estate Investment
Posted: May 26, 2011 8:48AM by Michele Lerner
1. Your Mortgage Payment
For a standard owner-occupied home, lenders typically prefer a total debt-to-income ratio of 36%, but some will go up to 45% depending on other qualifying factors such as your credit score and cash reserves. This ratio compares your total gross monthly income with your monthly debt payment obligations. For the housing payment, lenders prefer a gross income-to-total housing payment of 28 to 33%, depending on other factors. For an investment property, Freddie Mac guidelines say that the maximum debt-to-income ratio is 45%. (For more check out Simple Ways To Invest In Real Estate.)
2. Down Payment Requirements
While owner-occupied properties can be financed with a mortgage and as little as 3.5% down for an FHA loan, investor mortgages typically require a down payment of 20 to 25% or sometimes as much as 40%. None of the down payment or closing costs for an investment property may be from gift funds. Individual lenders will determine how much you need to put down to qualify for a loan depending on your debt-to-income ratios, credit score, the property price and likely rent.
3. Rental Income to Qualify
While you may assume that, since your tenant's rent payments will (hopefully) cover your mortgage, you should not need extra income to qualify for the home loan. However, in order for the rent to be considered income, you must have a two-year history of managing investment properties, purchase rent loss insurance coverage for at least six months of gross monthly rent and any negative rental income from any rental properties must be considered as debt in the debt-to-income ratio. (Besides creating ongoing income and capital appreciation, real estate provides deductions that can reduce the income tax on your profits. Check out Tax Deductions For Rental Property Owners.)
4. Price to Income Ratio
This ratio compared the median household price in an area to the median household income. Before the housing bubble burst, the price-to-income ratio in the U.S. was 2.75, while at the end of 2010 the ratio was 1.71. The average between 1989-2003 is 1.92 according to Fiserv, Inc., Federal Housing Finance Agency, Moody's Analytics.
5. Price to Rent Ratio
The price-to-rent ratio is a calculation that compares median home prices and median rents in a particular market. Simply divide the median house price by the median annual rent to generate a ratio. At the peak of the U.S. market in 2006, the ratio for the U.S. was 18.46. The ratio dropped to 11.34 by the end of 2010. The long-term average (from 1989 to 2003) was 9.56. As a general rule of thumb, consumers should consider buying when the ratio is under 15 and rent when it is above 20. Markets with a high price/rent ratio usually do not offer as good an investment opportunity. (Thinking of buying a home? We look at the initial and ongoing costs as well as the benefits. Check out To Rent or Buy? The Financial Issues.)
6. Gross Rental Yield
The gross rental yield for an individual property can be found by dividing the annual rent collected by the total property cost, then multiplying that number by 100 to get the percentage. The total property cost includes the purchase price, all closing costs and renovation costs.
7. Capitalization Rate
A more valuable number than the gross rental yield is the capitalization rate, also known as the cap rate or net rental yield, because this figure includes operating expenses for the property. This can be calculated by starting with the annual rent and subtracting annual expenses, then dividing that number by the total property cost and multiplying the resulting number by 100 for the percentage. Total rental property expenses include repair costs, taxes, landlord insurance, vacancy costs and agent fees.

8. Cash Flow
If you can cover the mortgage principal, interest, taxes and insurance with the monthly rent, you are in good shape as a landlord. Just make sure you have cash reserves in hand to cover that payment in case you have a vacancy or need to cover unexpected maintenance costs. Negative cash flow, which occurs most often when an investor has borrowed too much to buy the property, can result in a default on the loan unless you are able to sell the property for a profit.

The Bottom Line
Once you have made all these calculations, you can make an informed decision about whether a particular property will be a valuable investment.

Top 10 Deal Breakers & How To Avoid Them

2011-05-24T11:59:00.000-07:00

Top 10 Deal Breakers & How To Avoid Them

May 23, 2011|Buyers,Sellers

Your buyers have found the home of their dreams, started packing their stuff and have mentally moved in when suddenly a challenge arises that could put a serious wrench in the home buying process. In today’s market, finding the home is only the start of a transaction that can have many stumbling blocks along the way.

Here are the top 10 deal breakers buyers and sellers encounter that can impact the sale of a home:

1. Fixtures and Personal Property Pitfalls

I can’t tell you how many times I have seen deals falter because of disagreements over silly stuff like who gets the fireplace screen, the wall sconces or the appliances. For some buyers and sellers it can be difficult to distinguish between personal property and fixtures that come with the house. I once had someone try to take a beloved bathtub. Like the buyer wouldn’t notice?

How to avoid it- Disputes over fixtures and personal property are common. It is important to educate your client about the difference between attached appliances and personal property but there are times when the lines get blurred. Wall mounted flat screen TVs are frequently an issue. If something is really special to a homeowner, recommend the sellers remove the item before you put the house on the market. Have a beloved chandelier? Replace it before you start showing the home with an acceptable alternative. If this isn’t possible, exclude it in MLS along with frequently confused items like that flat screen and make sure it is excluded at the time the offer is written as well. Buyers should investigate and include any items that are important to them.

2. The dreaded ex-wife/husband

There may be many reasons to dread an ex, but when it comes to selling a property, it can impact the sale of a home. We often see situations where the owners got divorced but he/she didn’t sign off. Finding this out late in the process can be problematic, especially when one of the parties no longer has a financial interest in selling the home. This scenario along with other clouds on the title can take time to clear. Bank owned properties often come with title issues such as unpaid garbage fines that can impact your closing.

How to avoid it: Get a preliminary title report as soon as possible and be sure to ask your seller if there are any potential claims on the title.

3. Buyers Buying “Stuff”

Your first time home buyers are moving into their new home. They don’t have a washer and dryer of their own and the local appliance store is offering a smoking deal – get a store credit card, and save 15% on the purchase of your new appliances! Sound like a steal? It might just kill your deal.

Time and again we counsel buyers not to make major purchases before close of escrow such as a new car or major appliances, and time and again, some appliance store has a great “deal” that kills the deal. Any major purchase the impacts your credit can also impact your loan being funded too.

How to avoid it: Regularly remind your buyers to wait on appliance purchases, new car purchases, furniture and more until they the loan has been funded. Tell them to put those credit cards away until the paperwork is recorded.

4. Failure To Disclose

“But Ginger, I didn’t know I had to disclose that the hill behind the house next door came down last spring. It didn’t impact my part of the hill.” I have had to fight with sellers to get them to disclose certain facts about their home, but it is almost always better to over share when it comes to disclosure. Inevitably, a neighbor is going to tell the prospective buyer about the sliding hill, the formerly moldy basement or about the meth lab around the corner.

How to avoid it: When in doubt, disclose, disclose, disclose. Problems always seem much bigger when they are uncovered by a buyer after they are in contract.

5. Appraisal Nightmares

We went through a period of time when appraisals always magically came in at the offer price. For the most part, those times are gone. Appraisals are common deal breakers, and in many transactions, you don’t just have one. Review appraisals of the first appraisal are commonplace.

How to avoid it: Make sure the lender has a qualified appraiser. When possible, accompany the appraiser on the inspection. Prepare your clients in advance that the purchase price may have to be renegotiated or a higher down payment may need to be brought in if the appraisal comes in low.

6. Who Owns What?

Your buyer thinks they are getting a 6000 square foot lot, only to find out that the fence is built on the neighboring property. Or they think they own the driveway, but it is really an easement on property owned by the cranky old neighbor. Lot lines, shared driveways, and fences are common stumbling blocks in a transaction.

How to avoid it: Review the preliminary title report carefully. Legal descriptions aren’t always easy to read, but take the time and effort to have your client do so carefully. Have a title officer walk you through the title report to explain anything unusual. You should have your client go to the city/county authorities to review the items on file. If your client is concerned about the lot boundaries, have them perform a survey. While surveys can be costly, not knowing the actual boundaries can be costlier says Diana Rugh, a Realtor with David Lyng Real Estate, in Santa Cruz County, California. If a client is only concerned about one side of the property, she has her clients perform a partial survey for just the side in question.

7. No permits

In many areas, unpermitted additions or remodels have become serious deal killers. Many cities and towns have implemented pre-sale inspections to fill their dwindling coffers.

How to avoid it: If city/town inspections are required, get them in advance, correct any required issues, and get your clearance. Some municipalities don’t operate on the swiftest timeline, so start as early as you can.

8. Unexpected inspection findings

I used to work with an inspector that other agents called the deal killer and honestly, he was. But he was also a lawsuit saver. When you have a client paying hundreds of thousands if not multiple millions of dollars for a house, they should know what they are buying. I call inspection periods the second negotiation phase of the deal. Inspections are common deal breakers when agreement cannot be reached over repairs. Sarah Stelmok, a Realtor in Fredericksburg, VA almost lost a deal when the home inspection uncovered numerous dead felines in a crawl space. Amazingly enough, she was able to hold it together, the felines were removed and she closed the deal.

How to avoid it: Get inspections before the property is actively on the market. Buyers will probably still get their own, but at least you can resolve serious problems that may send a buyer running in advance. Repairs almost always cost a seller less if the buyer knows about it before they write their offer.

9. The lender changed the rules

This may be hard to imagine, but sometimes you are ready to rock and roll, you got your buyer pre-approved, not just pre-qualified, you are in contract and everything looks great until- poof- the lender changes the rules. Suddenly your buyer can’t meet the lender documentation requirements. This would have been helpful to know in advance.

How to avoid it: Unfortunately, there is not much that can be done to avoid it other than working with a reputable mortgage broker or lender with a solid record of closing transactions. If you represent the buyer, you may want to recommend the buyer leave their loan contingency in place until the loan is funded. If market conditions don’t permit this, make sure your buyer is aware of the ramifications if the loan doesn’t fund.

10. The bank doesn’t care

If the property being purchased is a short sale, the bank is pretty much in charge and they simply don’t care about your timeline. I have heard of people celebrating two and three year anniversaries of working on a short sale. When it comes to short sale timelines, anything goes, or better yet- who knows?!

How to avoid it: The best way to save a deal when a bank is involved is to make sure your buyers have appropriate expectations about the process. Educate them of the pitfalls of working with a bank. You might want to share the handout found in this article on the 5 Most Common Complaints of Short Sale and REO Buyers.

One of the best ways to avoid killing a deal- educating your clients about the entire home buying/selling process to make sure everyone is properly prepped goes a long way to holding deals together.

Realty Times - Home Sales May Grow Thanks To Affordable Housing

2011-05-20T14:21:00.000-07:00

Realty Times - Home Sales May Grow Thanks To Affordable Housing

by Phoebe Chongchua

Even without a homebuyer tax credit, home sales are on track to outperform last year's rate. Being credited are the improving job market, sustained economic growth, and, of course, superior housing affordability conditions. Experts are predicting home sales to reach higher than 5 million for this year–up about 7-10 percent over last year.
Painting an even more optimistic picture, Frank Nothaft, Chief Economist for Freddie Mac (secondary mortgage market company), expects more job growth–nearing the 2-million mark. However this will only make a dent in the unemployment rate.Currently unemployment stands at about 9 percent, but more than 100,000 jobs are created monthly and nationally that could mean 1.5 million new jobs in 2011, according to the National Association of Realtor's (NAR) Chief Economist, Lawrence Yun.
Approximately 2 million jobs were lost in the recession (2008-2009) and an expected 2-million new incoming job entrants from college, etc. will continue the unemployment gap. However, experts say the unemployment rate should fall to 8.8 percent in 2011, 8.6 percent the following year, and then drop to 6 percent, a more normal level, around 2015. Yun also expects the Gross Domestic Product to grow 2.5 percent in 2011 and in 2012, 2.7 percent.
Still, housing prices are the most affordable ever which means that, based on NAR's Affordability Index, those who earn the national median income have 170 percent of the income needed to purchase a home priced at the national median. Marking four solid years of little price change, Yun expects the median existing-home price to stay at approximately $170,000 for the next couple of years.
What are helping make these homes so affordable are the low interest rates. Couple that with the surplus of inventory of distressed homes where homeowners are "under water" (owing more than the value of the home) and it's understandable why the market is so affordable.
But despite the low rates and affordable housing, experts say, the lending conditions are not quite ripe for increasing home sales even though lenders are now in a position (with plenty of cash) to make loans to qualified buyers. What some call the new "overly" strict lending standards are being blamed for the present lack of more robust housing sales.
So what's the best position for a homebuyer? Cash, of course, works great in any market conditions. All-cash buyers represent 40 percent of the market. This type of buyer typically isn't a first-time buyer. Instead these are usually investors who either believe they'll get a better return on their money by investing in real estate or they can't get mortgage financing. And a recent NAR study found that 59 percent of investors paid all cash. According to past surveys, that figure is significantly higher than the 32 percent and 17 percent in 2006 and 2004, respectively. Hot cash markets included Florida, California, and Arizona. Meanwhile, experts say refinancing may only produce half the activity it did last year which could create reason for banks to be more willing to lend to home buyers again.
Published: May 20, 2011

If I Attend an Open House, Do I Have To Use the Realtor Who Is Holding the Open House?

2011-05-18T11:19:00.000-07:00

If I Attend an Open House, Do I Have To Use the Realtor Who Is Holding the Open House?

Q: If I attend an open house, am I obligated to use the realtor staging the open house if I decide to make an offer?

– Anonymous

A: Absolutely not! You are not the first buyer to be confused about the role of a real estate agent in their quest to purchase a home. They may not understand exactly who the agent represents and real estate agency (Broker) relationship. Let me educate you a bit about what’s called “Agency” (I.E. who represents whom) in a Real Estate transaction. Many states actually demand that agents give buyers and sellers an “Agency Disclosure” form to sign up front before a transaction is started or offer is written. This form is not a contract or an agreement, it simply disclosures the various types of possible agency relationships that may exist. It is very important that you read the disclosure to better understand it and all that is involved in “Agency”. In this way you will be able to determine what type of agency relationship will work best for you.

Single Agency vs. Dual Agency– Generally, buyers agents who represent buyers are operating in a single agency capacity as a buyer’s agent and seller’s agents who represent sellers are operating in a single agency capacity as a listing agent. Agents who represent clients under single agency owe a “fiduciary responsibility” to their client. Agents are not allowed to share confidential information with the other party or the other party’s representative. Single agency agents are bound to use care and due diligence while performing their duties, disclose all material facts and above all be honest. Buyer’s agents and the buyer sometimes sign a buyer’s broker agreement, which lays out the duties and obligations of the agent. Both listing agents and buyer’s agents owe the client loyalty, confidentiality, accountability and honesty. Some agents work as buyer’s agent with buyers and as a seller’s agent with sellers, (both sides of the fence) and some agents work solely as exclusive buyer’s agents and don’t take listings.

Dual Agency With Two Agents– Because all real estate agents are licensed under a real estate broker, it is possible to work with one agent who is licensed by the same broker as the listing agent. This situation creates a dual agency. The agents could work at separate offices and be strangers to each other, but since they are licensed by the broker, they are still operating under dual agency if one agent represents the buyer and the other represents the seller. When first representing a new client an agent probably entered into a single agency relationship with their buyer. However, when the buyer chooses a home listed by that agent’s broker, the agent’s relationship with the buyer changes. Not all single agents make a point of informing their buyer of the change. The listing agent must also inform their seller of the newly created agency relationship as well. Remember, transparency is key. Dual agency must be agreed to in writing by both the buyer and the seller.

I’ll always remember my first transaction. After signing up with the seller as their listing agent I proceeded to write an offer from a buyer visiting my first open house. I instantly became a dual agent. I managed to close a very lucrative deal in about 60 days with a very understanding seller and a buyer who thought they were making the best possible decision to have me represent them.

Personally I’ll never understand the thinking of buyers and sellers who freely fall into dual agency at the blink of an eye. To me it’s like hiring your wife’s divorce lawyer to represent you in the proceedings. But that’s just me.

Lee Dworshak is a Realtor® with Keller Williams LA Harbor Realty in Rancho Palos Verdes, CA.

A: Not at all, good luck!

Lesley Barbosa is a Realtor® with Shelia Banner Weichert Realtors in Blue Bell, PA.

CALIFORNIA ASSOCIATION OF REALTORS: Selling Your Home - Deciding to Sell

2011-05-16T09:09:00.000-07:00

CALIFORNIA ASSOCIATION OF REALTORS: Selling Your Home - Deciding to Sell

Deciding to Sell

You've probably already considered your personal reasons for selling. Now you need to take into account the other factors involved, such as market conditions, your property's value, and tax implications. Unless you're locked into selling your home (e.g., you've already accepted a job offer in another city), it's a good idea to look at the whole picture before deciding to sell.

Assessing Market Conditions

There's a rule of thumb to keep in mind when deciding to sell your home: Your home is only worth what a qualified buyer is willing to pay at the time it's on the market. The current real estate market fluctuates based on supply and demand, interest rates, general economic conditions, and other factors. The same house may sell for more or less under a different economy. Your REALTOR® can inform you of the going price for homes in your area at the current time; this data is included in a Competitive Market Analysis.

Tax Implications of Selling

There are many dynamics that can affect your tax liability upon selling your home. These issues include whether you purchased the home or inherited it, if you used your home for business or rental purposes, costs associated with selling your home, and any home improvements and additions that you've undertaken.

The Federal Taxpayer Relief Act of 1997 provides capital gains tax exclusions of up to $500,000 for married taxpayers filing jointly and $250,000 for single taxpayers or married taxpayers filing separately. Current capital gains rates are 20 percent for those in upper tax brackets and 10 percent for those in lower tax brackets. Overall capital gains rates have been lowered even further — to 18 percent and 8 percent respectively — for assets acquired after December 31, 2000, and held five years or more.

To qualify for this tax break, you must have used the home as your primary residence for at least two of the prior five years; these two years don't have to be consecutive. If you relocate for your job but don't meet the requirement, you may be allowed to take a capital gains exclusion proportionate to your circumstances. This exclusion is not a one-time benefit; you may take advantage of it once every two years as long as you meet the qualifications.  The tax rules differ when you sell a home that you've inherited. If you sell the inherited home for a profit, you're required to pay federal and state taxes on the gain. If you keep the house as a second residence and/or eventually move into it after renting it to tenants, you may take the $250,000/$500,000 capital gains tax exclusion if you meet the requirements. When you're deciding what to do with inherited property, you should consider the current estate tax laws and basis practices.

Beyond these general rules, it's wise to discuss your home's sale with a tax professional who can advise you on tax benefits in more detail.

Timing Your Decision to Sell

Because most sellers finance a new home purchase with the sale of their present home, they usually put their homes on the market before they begin their search for a new home. Learning the price you can expect from the sale often sets the pricing parameters for your new home search.

Obviously, it's not wise to wait until the sale on your property closes completely before beginning to look for your new home. Timing your search properly with the buyers' transaction can make the difference between having the available funds to buy a new home and cutting down on the interim period between homes.

DoorFly.com: 10 Painting Cleanup Tips For The Homeowner

2011-05-14T13:04:00.000-07:00

DoorFly.com: 10 Painting Cleanup Tips For The Homeowner

Painting any part of your house is something that most homeowners eventually have to do. It doesn’t matter if it needs to be painted from weather damage, or it’s a simple wish to redecorate. Either one can create a need to get out the brushes and paint. When it is all done, the new paint job brings new life to the area.You’ll generally be glad you took the time to change the color or restore its fresh appearance. Then comes the time for clean up. This is never as fun as the painting, but it isn’t something that can be avoided either. Here are ten painting clean up tips that will hopefully make the process a little easier.

Use a plastic garbage bag. Put your roller tray inside a plastic bag before putting in paint into it. When you are done you can turn the bag inside out for use again and the roller tray is already clean for the next job.
Use plastic bags on rollers and brushes. At the end of the day you don’t have to clean up your brushes and rollers. Put them in a plastic bag and seal out the air. They will stay fresh and be ready to finish the project the next day.
Keep roller tray in plastic bag. If you need to stop painting partway through a project, you can save yourself some cleanup time. Just seal your roller tray in a plastic garbage bag, after use, and keep the air out, trying not to let the bag touch the paint. It will be ready to use when you remove the bag again.
Store paint in margarine tubs. For those small painting jobs, keep the paint you will use in small margarine tubs. They are easy to use for painting and can be thrown away afterwards.
Brushes and containers. You don’t have to have different brushes for each color. It will decrease the clean up time needed, if you used the same brush for more than one color.
Cleaning up splatters. The best time to clean up paint that has splattered is when it first happens. No matter how careful we try to be, there will be some accidents. They clean up much easier while wet.
Reusable Drop Cloths. Try to buy drop cloths you can reuse. Pick out ones made of canvas or heavy duty plastic that can be left to dry after painting then folded up and used the next time. It will save having to replace them when you use the cheaper disposable types.
Don’t Delay In Cleaning. When you do have to clean up, don’t put it off. Dried paint will not come out of a brush as easy as wet paint. The few minutes spent after painting on clean up will be less time consuming, than if wait until the paint dries. It may not come out at all, if you wait too long.
Rags. Be sure you have an adequate supply of rags. It is easy to spill or have accidents, and they clean off easier when you have fresh dry rags. They can be cleaned later, but the more you have on hand, the easier clean up will be.
Razor Blades. These work great on cleaning up drips on tile and windows. Even after the paint has dried, the razor edge will scrape the window glass clean.

Using these tips should help with the clean up you do after painting. There is no reason to add to the chore of clean up, when you have these easy methods to keep it simple and hassle free.

7 ways to ready home for spring | Maria Paulina Pagano, Real Estate Sales Professional

2011-05-11T12:12:00.000-07:00

7 ways to ready home for spring

Posted on May 9, 2011 by Maria Paulina Pagano

Furnace, windows, soil need close attention click here to read all articles
By Paul Bianchina
Inman News™

May 06, 2011

As the seasons change and things start to warm up again, it’s time to start thinking about what’s outside. Here’s my annual spring checklist of chores you want to be considering in order to clean up after winter’s wrath and start getting ready for an enjoyable summer.

Roof ventilation

I hate to be the one to remind you, but remember that ice dam on the roof you wrestled with all winter? And remember how hot the attic was last summer when you went up there to store some boxes? Spring is the ideal time to take care of both of those problems by adding some additional attic ventilation while it’s not too hot or too cold to work up there.

Attic ventilation should equal approximately 1 square foot of vent area for every 300 square feet of attic, so first figure out roughly how many square feet your attic is, then divide by 300. The total vent area should be roughly split between high and low vents, so now divide that number by two.

Take some measurements to see if you have an adequate amount of vent area both low in the eaves or soffits, and high on the roof at the ridge or in the gable ends. If not, add more as needed. While you’re at it, repair any vent screens and flashings.

Spring cleaning

Now’s the time to get the yard cleaned up from all the debris that’s blown down. Rake up loose leaves and needles. Remove debris from roofs and gutters. Haul off limbs and other debris. Remove, clean and store your storm windows. Use a broom or water spray to remove cobwebs and dirt from under eaves, as well as on siding and exterior doors. Pressure-wash patios and walkways (pressure washers can be purchased or rented).

Check windows and screens

Do a thorough inspection of all your windows and window screens. Remove and wash all the screens. Look for small holes in the screens that are going to let those pesky insects in this summer, and repair or rescreen them. Clean all the windows inside and out. Clean the window tracks. Clean and lubricate window locks and sliding mechanisms as needed. For added security this summer, consider installing additional locks that allow you to latch the windows in a partially open position for secure ventilation.

Check and adjust grade

Soil is very susceptible to being washed away or redistributed by heavy winter rains and melting snow. That movement can change grade levels and slopes, causing water to run back against your foundation, into your basement or crawlspace, or onto your neighbor’s property.

Look for areas where soil seems too high or too low in relation to your home, as well as for marks on your siding, foundation, walkways, and other areas that might indicate that soil or water is in a place it shouldn’t be. A 4-foot builder’s level placed on a long, straight board can help you check grade and slope. If needed, redistribute and regrade the soil so that for every foot extending horizontally out from the house the soil drops at least 1/4 inch vertically.

Condition yard tools

Dust off all your yard tools and get them ready for the coming season. Replace broken or damaged handles, and clean and condition metal parts. Tighten fittings and fasteners, sharpen cutting tools and mower blades, and service engines and belts in lawn mowers and other power equipment.

Change furnace filters

Now is the time to replace furnace filters that have become choked with dust from the winter heating season. This is especially important if you have central air conditioning, or if you utilize your heating system’s fan to circulate air during the summer.

Check smoke detectors

Daylight saving time came around early this year, and that’s usually the semi-annual reminder to check your smoke alarms. So if you haven’t already done it, now’s the time. Replace the batteries, clean the covers, and test the detector’s operation before it’s too late.

If you have gas-fired appliances in the house, including a water heater, now is also a great time to consider adding a carbon monoxide detector. These detectors are inexpensive and easy to install, and are available at most home centers and other retailers of electrical parts and supplies.

Remodeling and repair questions? Email Paul at paulbianchina@inman.com. All product reviews are based on the author’s actual testing of free review samples provided by the manufacturers.

Contact Paul Bianchina:

About Maria Paulina Pagano

As a Realtor for the last eighteen years and a Monmouth County resident for twenty-two years, I have accumulated extensive and invaluable knowledge of the Real Estate Market and Market Trends. Member of Ocean, Monmouth, & Middlesex MLS.

View all posts by Maria Paulina Pagano →

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