My New Blog

Lender Checklist: What You Need for a Mortgage
May 23rd, 2008 4:18 PM
  • W-2 forms — or business tax return forms if you're self-employed — for the last two or three years for every
person signing the loan.
  • Copies of at least one pay stub for each person signing the loan.
  • Account numbers of all your credit cards and the amounts for any outstanding balances.
  • Copies of two to four months of bank or credit union statements for both checking and savings
accounts.
  • Lender, loan number, and amount owed on other installment loans, such as student loans and
car loans.
  • Addresses where you’ve lived for the last five to seven years, with names of landlords if
appropriate.
  • Copies of brokerage account statements for two to four months, as well as a list of any other major assets of
value, such as a boat, RV, or stocks or bonds not held in a brokerage account.
  • Copies of your most recent 401(k) or other retirement account statement.
  • Documentation to verify additional income, such as child support or a pension.
  • Copies of personal tax forms for the last two to three years.
Posted by Anne Baker on May 23rd, 2008 4:18 PMPost a Comment (0)

7 Reasons to Own Your Home
May 23rd, 2008 4:51 PM
1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
Posted by Anne Baker on May 23rd, 2008 4:51 PMPost a Comment (0)

8 Tips to Guide for Your Home Search
May 23rd, 2008 4:50 PM
1. Research before you look. Decide what features you most want to have in a home, what neighborhoods you prefer, and how much you’d be willing to spend each month for housing.

2. Be realistic. It’s OK to be picky, but don’t be unrealistic with your expectations. There’s no such thing as a perfect home. Use your list of priorities as a guide to evaluate each property.

3. Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and closing costs. Then, talk to a lender and get prequalified for a mortgage. This will save you the heartache later of falling in love with a house you can’t afford.

4. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion, but be ready to make the final decision on your own.

5. Decide your moving timeline. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? All of these factors will help you determine when you should move.

6. Think long term. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in this home for a longer period? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that will best suit you.

7. Insist on a home inspection. If possible, get a warranty from the seller to cover defects for one year.

8. Get help from a REALTOR®. Hire a real estate professional who specializes in buyer representation. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. Buyer’s reps are usually paid out of the seller’s commission payment.
Posted by Anne Baker on May 23rd, 2008 4:50 PMPost a Comment (0)

How to Hold a Successful Garage Sale
May 23rd, 2008 4:47 PM
Garage sales can be a great way to get rid of clutter — and earn a little extra cash — before you sell your home. But make sure the timing is right. Garage sales can take on a life of their own, and it might not be the best use of your energy right before putting your home on the market. Follow these tips for a successful sale.

1. Don’t wait until the last minute. You don’t want to be scrambling to hold a garage sale the week before an open house. Depending on how long you’ve lived in the home and how much stuff you have to sell, planning a garage sale can demand a lot of time and energy.

2. Get a permit. Most municipalities will require you to obtain a special permit or license in order to hold a garage sale. The permits are often free or very inexpensive, but still require you to register with the city.

3. See if neighbors want to join in. You can turn your garage sale into a block-wide event and lure more shoppers if you team up with neighbors. However, a permit may be necessary for each home owner, even if it’s a group event.

4. Schedule the sale. Sales on Saturdays and Sundays will generate the most traffic, especially if the weather cooperates. Start the sale early, 8 a.m. or 9 a.m. is best, and be prepared for early birds.

5. Advertise. Place an ad in free classified papers and Web sites, and in your local newspapers. Include the dates, time, and address. Let the public know if certain types of items will be sold, such as baby clothes, furniture, or weightlifting equipment. On the day of the sale, balloons and signs with prominent arrows will help to grab the attention of passersby.

6. Price your goods. Lay out everything that you plan to sell, and attach prices with removable stickers. Remember, garage sales are supposed to be bargains, so try to be objective as you set prices. Assign simple prices to your goods: 50 cents, 3 for $1, $5, $10, etc.

7. If it’s really junk, don’t sell it. Decide what’s worth selling and what’s not. If it’s really garbage, then throw it away. Broken appliances, for example, should be tossed. (Know where a nearby electrical outlet is, in case a customer wants to make sure something works.)

8. Check for mistakes. Make sure that items you want to keep don’t accidentally end up in the garage sale pile.

9. Create an organized display. Lay out your items by category, and display neatly so customers don’t have to dig through boxes.

10. Stock up on bags and newspapers. People who buy many small items will appreciate a bag to carry their goods. Newspapers are handy for wrapping fragile items.

11. Manage your money. Make a trip to the bank to get ample change for your cashbox. Throughout the sale, keep a close eye on your cash; never leave the cashbox unattended. It’s smart to have one person who manages the money throughout the day, keeping a tally of what was purchased and for how much. Keep a calculator nearby.

12. Prepare for your home sale. Donate the remaining stuff or sell it to a resale shop. Now that all of your clutter is cleared out, it’s time to focus on preparing your house for a successful sale!

Posted by Anne Baker on May 23rd, 2008 4:47 PMPost a Comment (0)

Tips for Lowering Homeowner’s Insurance Costs
May 23rd, 2008 4:44 PM
1. Review the Comprehensive Loss Underwriting Exchange (CLUE) report on the property you’re interested in buying. CLUE reports detail the property’s claims history for the most recent five years, which insurers may use to deny coverage. Make the sale contingent on a home inspection to ensure that problems identified in the CLUE report have been repaired.

2. Seek insurance coverage as soon as your offer is approved. You must obtain insurance to buy. And you don’t want to be told at closing that the insurer has denied your coverage.

3. Maintain good credit. Insurers often use credit-based insurance scores to determine premiums.

4. Buy your home owners and auto policies from the same company and you’ll usually qualify for savings. But make sure the discount really yields the lowest price.

5. Raise your deductible. If you can afford to pay more toward a loss that occurs, your premiums will be lower. Avoid making claims under $1,000.

6. Ask about other discounts. For example, retirees who tend to be home more than full-time workers may qualify for a discount on theft insurance. You also may be able to obtain discounts for having smoke detectors, a burglar alarm, or dead-bolt locks.

7. Seek group discounts. If you belong to any groups, such as associations or alumni organizations, they may have deals on insurance coverage.

8. Review your policy limits and the value of your home and possessions annually. Some items depreciate and may not need as much coverage.

9. Investigate a government-backed insurance plan. In some high-risk areas, federal or state government may back plans to lower rates. Ask your agent.

10. Be sure you insure your house for the correct amount. Remember, you’re covering replacement cost, not market value.
Posted by Anne Baker on May 23rd, 2008 4:44 PMPost a Comment (0)

5 Most Dangerous Hazards in a Home
May 23rd, 2008 4:37 PM
Home owners beware: Several dangers may lurk in a home. If you’re not careful, they could make you sick. Pillar to Post, a home inspection company, reviews how to spot these dangers in the home and encourages you to contact a home inspector if your home may be at risk for any of these potential dangers.

1. Radon: a colorless, odorless gas that can seep into the home from the ground. Radon has been called the second most common cause of lung cancer.
What to look for: Basements or anything with protrusion into the ground offer entry points for radon. The Environmental Protection Agency publishes a map of high prevalence areas for radon. A radon test can determine if high levels of radon are present.

2. Asbestos: a fibrous material once popular in building materials because it provides heat insulation and fire resistance. But asbestos was banned in 1985. It may still be found in older home’s insulation materials, floor tiles, roof coverings, and siding. If disturbed or damaged, it can enter the air and cause severe illness.
What to look for: Homes built prior to 1985 are at risk of having asbestos within construction materials. Home owners should especially be careful when remodeling because disturbing insulation may cause the asbestos to become airborne.

3. Lead: a toxic metal used in home products for many years that can contribute to several health problems, especially among children. Exposure can occur from deteriorating lead-based paint, pipes, or lead-contaminated dust or soil.
What to look for: Homes built prior to 1978 may have lead present. Look for peeling paint and check old pipes. To get a HUD-insured loan, buyers must show a certificate that homes built prior to 1978 are lead-safe.

4. Hazardous products: stockpiles of hazardous household items — such as paint solvents, pesticides, fertilizers, or motor oils — that can create a dangerous situation if not properly stored or disposed. They can cause illness or even death if small amounts are ingested.
What to look for: Make sure these items aren’t tucked away in corners, crawl spaces, garages, or garden sheds. Home owners often don’t realize these products can pose a danger and may forget they’re storing them. But buyers don’t want it to become their problem — and expense — to dispose of. If these products are found, make sure the buyer requires their removal and gets a disposal certificate prior to closing, which proves the products were disposed of properly and not just dumped in the backyard.

5. Groundwater contamination: the result of hazardous chemicals that are illegally disposed of and then seep through the soil and enter water supplies. A leaking underground oil tank or faulty septic system can contribute to this.
What to look for: Look for any conditions that may be conducive to leakage. Homes near light industrial areas or facilities may be at risk. Also a concern: areas once used for industry that are now residential. Pillar to Post offers a Neighborhood Environmental Report that details any dangers or remedies of environmental incidences and sources of contamination that have occurred at a specified address and within its vicinity.
Posted by Anne Baker on May 23rd, 2008 4:37 PMPost a Comment (0)

Moving Checklist for Sellers
May 23rd, 2008 4:36 PM
  • Provide the post office with your forwarding address two to four weeks ahead of the move.
  • Notify your credit card companies, magazine subscriptions, and bank of your change of address.
  • Create a list of friends, relatives, and business colleagues who need to be notified about your move.
  • Arrange to disconnect utilities and have them connected at your new home.
  • Cancel the newspaper, or change the address so it will arrive at your new home.
  • Check insurance coverage for the items you’re moving. Usually movers only cover what they pack.
  • Clean out appliances and prepare them for moving, if applicable.
  • Note the weight of the goods you’ll have moved, since long-distance moves are usually billed according to
weight. Watch for movers that use excessive padding to add weight.
  • Check with your condo or co-op about any restrictions on using the elevator or particular exits for moving.
  • Have a “first open” box with the things you’ll need most, such as toilet paper, soap, trash bags, scissors,
hammer, screwdriver, pencils and paper, cups and plates, water, snacks, and toothpaste.

Plus, if you’re moving out of town, be sure to:
  • Get copies of medical and dental records and prescriptions for your family and your pets.
  • Get copies of children’s school records for transfer.
  • Ask friends for introductions to anyone they know in your new neighborhood.
  • Consider special car needs for pets when traveling.
  • Let a friend or relative know your route.
  • Empty your safety deposit box.
  • Put plants in boxes with holes for air circulation if you’re moving in cold weather.
Posted by Anne Baker on May 23rd, 2008 4:36 PMPost a Comment (0)

Understanding Capital Gains in Real Estate
May 23rd, 2008 4:35 PM
When you sell a stock, you owe taxes on your gain — the difference between what you paid for the stock and what you sold it for. The same holds true when selling a home (or a second home), but there are some special considerations.

How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:

1. Purchase price: _______________________

The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.


2. Total adjustments: _______________________

To calculate this, add the following:
  • Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.
  • Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
  • Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.


3. Your home’s adjusted cost basis: _______________________

The total of your purchase price and adjustments is the adjusted cost basis of your home.

4. Your capital gain: _______________________

Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.

A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:
  • You have lived in the home as your principal residence for two out of the last five years.
  • You have not sold or exchanged another home during the two years preceding the sale.
  • You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.
Posted by Anne Baker on May 23rd, 2008 4:35 PMPost a Comment (0)

5 Factors That Decide Your Credit Score
May 23rd, 2008 4:33 PM
Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:

1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.

2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.

3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.

4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.

5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.

For more on evaluating and understanding your credit score, visit www.myfico.com.
Posted by Anne Baker on May 23rd, 2008 4:33 PMPost a Comment (0)

How Big of a Mortgage Can I Afford?
May 23rd, 2008 4:33 PM
Not only does owning a home give you a haven for yourself and your family, it also makes great financial sense because of the tax benefits — which you can’t take advantage of when paying rent.

The following calculation assumes a 28 percent income tax bracket. If your bracket is higher, your savings will be, too. Based on your current rent, use this calculation to figure out how much mortgage you can afford.

Rent: _________________________

Multiplier: x 1.32

Mortgage payment: _________________________

Because of tax deductions, you can make a mortgage payment — including taxes and insurance — that is approximately one-third larger than your current rent payment and end up with the same amount of income.

For more help, use Fannie Mae’s online mortgage calculators.
Posted by Anne Baker on May 23rd, 2008 4:33 PMPost a Comment (0)

Take the Stress Out of Homebuying
May 23rd, 2008 4:31 PM
Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.

1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.

4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.

6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.

7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.

10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.
Posted by Anne Baker on May 23rd, 2008 4:31 PMPost a Comment (0)

8 Reasons Why You Should Work With a REALTOR®
May 23rd, 2008 4:30 PM
Not all real estate practitioners are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics. Here's why it pays to work with a REALTOR®.

1. Navigate a complicated process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multipage settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.

2. Information and opinions. REALTORS® can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

3. Help finding the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR® to find all available properties.

4. Negotiating skills. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Property marketing power. Real estate doesn’t sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contacts through previous clients, referrals, friends, and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

6. Someone who speaks the language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the real estate language.

7. Experience. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. Even if you have done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.

8. Objective voice. A home often symbolizes family, rest, and security — it’s not just four walls and a roof. Because of this, homebuying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they’ll every make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.
Posted by Anne Baker on May 23rd, 2008 4:30 PMPost a Comment (0)

Does Moving Up Make Sense?
May 23rd, 2008 4:26 PM
These questions will help you decide whether you’re ready for a home that’s larger or in a more desirable location. If you answer yes to most of the questions, it’s a sign that you may be ready to move.

1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.

2. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.

3. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer to your job or live in a better school district.

4. Are there reasons why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.

5. Are you comfortable moving in the current housing market? If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.

6. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.
Posted by Anne Baker on May 23rd, 2008 4:26 PMPost a Comment (0)

5 Things to Know About Title Insurance
May 23rd, 2008 4:19 PM
Title insurance protects the holder from any losses sustained from defects in the title. It’s required by most mortgage lenders. Here are five other things you should know about title insurance.

1. It protects your ownership right to your home, both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as mistake in the spelling of a person’s name or an inaccurate description of the property.

2. It’s a one-time cost usually based on the price of the property.

3. It’s usually paid for by the sellers, although this can vary depending on your state and local customs.

4. There are both lender title policies, which protect the lender, and owner title policies, which protect you. The lender will probably require a lender policy.

5. Discounts on premiums are sometimes available if the home has been bought within only a few years since not as much work is required to check the title. Ask the title company if this discount is available.
Posted by Anne Baker on May 23rd, 2008 4:19 PMPost a Comment (0)

What You Can Do to Improve Your Credit
May 23rd, 2008 4:11 PM
Credit scores, along with your overall income and debt, are big factors in determining whether you’ll qualify for a loan and what your loan terms will be. So, keep your credit score high by doing the following:

1. Check for and correct any errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.

2. Pay down credit card bills. If possible, pay off the entire balance every month. Transferring credit card debt from one card to another could lower your score.

3. Don’t charge your credit cards to the maximum limit.

4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.

5. Don’t order items for your new home on credit — such as appliances and furniture — until after the loan is approved. The amounts will add to your debt.

6. Don’t open new credit card accounts before applying for a mortgage. Too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation. To obtain a complete copy of the publication, Knowing and Understanding Your Credit, visit www.homebuyingguide.org.
Posted by Anne Baker on May 23rd, 2008 4:11 PMPost a Comment (0)

Low-Cost Ways to Spruce Up Your Home’s Exterior
May 23rd, 2008 4:10 PM
Make your home more appealing for yourself and potential buyers with these quick and easy tips:

1. Trim bushes so they don’t block windows or architectural details.

2. Mow your lawn, and turn on the sprinklers for 30 minutes before the showing to make the lawn sparkle.

3. Put a pot of bright flowers (or a small evergreen in winter) on your porch.

4. Install new doorknobs on your front door.

5. Repair any cracks in the driveway.

6. Edge the grass around walkways and trees.

7. Keep your garden tools and hoses out of sight.

8. Clear toys from the lawn.

9. Buy a new mailbox.

10. Upgrade your outside lighting.

11. Buy a new doormat for the outside of your front door.

12. Clean your windows, inside and outside.

13. Polish or replace your house numbers.

14. Place a seasonal wreath on your door.
Posted by Anne Baker on May 23rd, 2008 4:10 PMPost a Comment (0)

5 Common First-Time Home Buyer Mistakes
May 23rd, 2008 4:09 PM
1. They don’t ask enough questions of their lender and end up missing out on the best deal.

2. They don’t act quickly enough to make a decision and someone else buys the house.

3. They don’t find the right agent who’s willing to help them through the homebuying process.

4. They don’t do enough to make their offer look appealing to a seller.

5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.
Posted by Anne Baker on May 23rd, 2008 4:09 PMPost a Comment (0)

6 Creative Ways to Afford a Home
May 23rd, 2008 4:08 PM
1. Investigate local, state, and national down payment assistance programs. These programs give qualified applicants loans or grants to cover all or part of your required down payment. National programs include the Nehemiah program, www.getdownpayment.com, and the American Dream Down Payment Fund from the Department of Housing and Urban Development, www.hud.gov.

2. Explore seller financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you would do with a mortgage.

3. Consider a shared-appreciation or shared-equity arrangement. Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors' names are usually on the mortgage. Companies are available that can help you find such an investor, if your family can’t participate.

4. Ask your family for help. Perhaps a family member will loan you money for the down payment or act as a co-signer for the mortgage. Lenders often like to have a co-signer if you have little credit history.

5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your down payment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner.

6. Consider a short-term second mortgage. If you can qualify for a short-term second mortgage, this would give you money to make a larger down payment. This may be possible if you’re in good financial standing, with a strong income and little other debt.
Posted by Anne Baker on May 23rd, 2008 4:08 PMPost a Comment (0)

8 Quick Fixes to Increase Value
May 23rd, 2008 4:07 PM
To attract buyers, sellers must up the ante to convince them that their property offers what many want most — top value for dollar expended. Here are eight fast fixes:

1. Buff up curb appeal. You’ve heard it before, but it’s critical to get buyers to want to look on the inside. Be objective. View listings from the street. Check the condition of the landscaping, paint, roof, shutters, front door, knocker, windows, house number, and even how window treatments look from the outside. Add something special — such as big flower pots or an antique bench — to help viewers remember house A from B.

2. Enrich with color. Paint’s cheap, but forget the adage that it must be white or neutral. Just don’t let sellers get too avant-garde with jarring pinks, oranges, and purples. Recommend soft colors that say “welcome,” lead the eye from room to room, and flatter skin tones. Think soft yellows and pale greens. Tint ceilings a lighter shade.

3. Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. But besides making each squeaky clean and clutter-free, update the pulls, sinks, and faucets. In a kitchen, add one cool appliance, such as an espresso maker. In the bathroom, hang a flat-screen TV to mimic a hotel. Room service, anyone?

4. Add old-world patina. Make Andrea Palladio proud. Install crown molding at least six to nine inches in depth, proportional to the room’s size, and architecturally compatible. For ceilings nine feet high or higher, add dentil detailing, small tooth-shaped blocks used as a repeating ornament. It’s all in the details, after all.

5. Screen hardwood floors. Buyers favor wood over carpet, but refinishing is costly and time-consuming. Screening cuts dust, time, and expense. What it entails: a light sanding, not a full stripping of color or polyurethane, then a coat of finish.

6. Clean out, organize closets. Get sorting — organize your piles into “don’t need,” “haven’t worn,” and “keep.” Closets must be only half-full so buyers can visualize fitting their stuff in.

7. Update window treatments. Buyers want light and views, not dated, fancy-schmancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.

8. Hire a home inspector. Do a preemptive strike, since busy home owners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible.
Posted by Anne Baker on May 23rd, 2008 4:07 PMPost a Comment (0)

Latest Economic Indicators
May 23rd, 2008 4:05 PM

Posted by Anne Baker on May 23rd, 2008 4:05 PMPost a Comment (0)

Remodeling Cost vs Value
May 23rd, 2008 4:04 PM
South Atlantic 2007
 National Averages

Job Cost
Resale Value
Cost Recouped
Project Midrange
Job Cost
Resale Value
Cost Recouped
$41,401 $32,635 78.8% Attic Bedroom Remodel
 $46,691 $35,771 76.6%
$12,061 $8,097 67.1% Back-Up Power Generator
 $13,357 $7,748 58%
$53,519 $43,279 80.9% Basement Remodel
 $59,435 $44,661 75.1%
$33,236 $22,670 68.2% Bathroom Addition
 $37,202 $24,553 66%
$14,445 $11,388 78.8% Bathroom Remodel
 $15,789 $12,366 78.3%
$9,266 $7,936 85.6% Deck Addition - Wood
 $10,347 $8,835 85.4%
$70,867 $51,004 72% Family Room Addition
 $78,989 $54,148 68.6%
$49,183 $36,790 74.8% Garage Addition
 $53,897 $37,461 69.5%
$25,438 $15,209 59.8% Home Office Remodel
 $27,193 $15,498 57%
$52,659 $41,766 79.3% Major Kitchen Remodel
 $55,503 $43,363 78.1%
$88,680 $64,549 72.8% Master Suite Addition
 $98,863 $68,172 69%
$20,221 $16,727 82.7% Minor Kitchen Remodel
 $21,185 $17,576 83%
$15,376 $11,069 72% Roofing Replacement
 $18,042 $12,166 67.4%
$8,990 $7,651 85.1% Siding Replacement
 $9,910 $8,245 83.2%
$65,434 $42,025 64.2% Sunroom Addition
 $69,817 $41,231 59.1%
$127,072 $99,464 78.3% Two-Story Addition
 $139,297 $103,010 73.9%
$9,391 $7,530 80.2% Window Replacement - Vinyl
 $10,448 $8,290 79.3%
$10,242 $8,226 80.3% Window Replacement - Wood
 $11,384 $9,241 81.2%
South Atlantic Project Upscale
 National Averages
Job Cost Resale Value Cost Recouped Project
Upscale
 Job Cost Resale Value Cost Recouped
$66,973 $47,116 70.3% Bathroom Addition
$73,145 $50,442 69%
$46,988 $32,656 69.5% Bathroom Remodel
$50,590 $34,588 68.4%
$14,232 $11,201 78.7% Deck Addition - Composite
 $15,039 $11,672 77.6%
$75,102 $51,322 68.3% Garage Addition
$82,108 $53,056 64.6%
$104,893 $78,008 74.4% Major Kitchen Remodel
$109,394 $81,096 74.1%
$204,198 $133,374 65.3% Master Suite Addition
$220,149 $141,120 64.1%
$28,044 $19,611 69.9% Roofing Replacement (steel)
$33,151 $21,769 65.7%
$12,910 $11,536 89.4% Siding Replacement (fiber-cement)
$13,212 $11,633 88.1%
$11,125 $9,148 82.2% Siding Replacement (foam-backed vinyl)
$12,132 $9,668 79.7%
$12,084 $9,791 81% Window Replacement - Vinyl
$13,479 $10,913 81%
$15,980 $12,334 77.2% Window Replacement - Wood
$17,383 $13,784 79.3%
Posted by Anne Baker on May 23rd, 2008 4:04 PMPost a Comment (0)

Freedom Is Not Free
May 23rd, 2008 3:47 PM

Special Memorial Day Message from Dick Gaylord
2008 NAR President
May 23, 2008

Hello, everyone. I’m Dick Gaylord, 2008 President of the National Association of REALTORS®.

This weekend, we will join with our families and friends to celebrate a very special holiday – Memorial Day. Every time I drive past the Marine Corps base at Camp Pendleton, I can’t help but think about all the brave men and women who are risking their lives to protect the many freedoms we enjoy.

I know many of you have loved ones who are currently serving our country – both at home and abroad. And, I simply could not let this weekend pass without paying tribute to all of the brave men and women who have made the ultimate sacrifice on behalf of all Americans.

This weekend, I ask each and every one of you to put your business and personal cares aside, and spend a little time paying tribute to our fallen soldiers – and to those who are currently serving. For just a few minutes, talk about what this day really means and help your children understand that Memorial Day is not about picnics and the beach. Explain that others have paid the ultimate price so that we can enjoy these things.

I also encourage you to consider volunteering or donating to your local chapter of the American Legion or the Veterans of Foreign Wars. Both organizations are the leading advocates for our military service members and veterans.

If you fly the stars and stripes at your own home, please remember to lower it to half staff from sunrise until noon on Monday. Most importantly, when you see a veteran, take a few minutes to thank them personally for their courage and service.

On behalf of all REALTORS®, I extend my deepest appreciation to all who have served our country, and I pay special tribute to those who are actively engaged in conflicts abroad.

I pledge that NAR will continue to fight here in Washington to give you the recognition and benefits you so deserve. And, I pray that every soldier will return “home” safely to enjoy many more holiday weekends with their families and friends.

I want to leave you today with you a poem, written by Coast Guard Commander Kelly Strong, as a tribute to his father – a career Marine, who served in Vietnam. It’s called “Freedom is Not Free.”

May it be a reminder to all of us of the sacrifices that so many Americans have made to protect our rights for more than 250 years…

Freedom Is Not Free
I watched the flag pass by one day.
It fluttered in the breeze.
A young Marine saluted it,
and then he stood at ease.

I looked at him in uniform
So young, so tall, so proud,
He'd stand out in any crowd.

I thought how many men like him
Had fallen through the years.
How many died on foreign soil?
How many mothers' tears?

How many pilots' planes shot down?
How many died at sea?
How many foxholes were soldiers' graves?
No, freedom isn't free.

I heard the sound of TAPS one night,
When everything was still
I listened to the bugler play
And felt a sudden chill.

I wondered just how many times
That TAPS had meant "Amen,"
When a flag had draped a coffin
Of a brother or a friend.

I thought of all the children,
Of the mothers and the wives,
Of fathers, sons and husbands
With interrupted lives.

I thought about a graveyard
At the bottom of the sea
Of unmarked graves in Arlington.
No, freedom isn't free.

Posted by Anne Baker on May 23rd, 2008 3:47 PMPost a Comment (0)

National Prices, Inventory Levels
May 23rd, 2008 3:45 PM

National Prices, Inventory Levels

Nationally, the median existing-home price for all housing types was $202,300 in April, which is 8.0 percent below a year ago when the median was $219,900. Because the slowdown in sales from a year ago is greatest in high-cost areas, there is a downward distortion to the national median with relatively more sales in low- and moderate-priced markets.
  • Total housing inventory at the end of April rose 10.5 percent to 4.55 million existing homes available for sale, which represents an 11.2-month supply at the current sales pace, up from a 10.0-month supply in March.
  • Mortgage rates declined, according to Freddie Mac. The national average commitment rate for a 30-year, conventional, fixed-rate mortgage slipped to 5.92 percent in April from 5.97 percent in March; the rate was 6.18 percent in April 2007.
  • Single-family home sales slipped 0.5 percent to a seasonally adjusted annual rate of 4.34 million in April from 4.36 million in March, and are 16.1 percent below the 5.17 million-unit level recorded one year ago. The median existing single-family home price was $200,700 in April, down 8.5 percent from April 2007.
  • Existing condominium and co-op sales fell 5.2 percent to a seasonally adjusted annual rate of 550,000 units in April from 580,000 in March, and are 27.9 percent below the 763,000-unit pace in April 2007. The median existing condo price was $214,900 in April, which is 3.7 percent below a year ago.
Posted by Anne Baker on May 23rd, 2008 3:45 PMPost a Comment (0)

More Favorable Mortgage Options Will Help
May 23rd, 2008 3:43 PM
More Favorable Mortgage Options Will Help

With less-restrictive mortgage options opening up for buyers, “we could see an upturn in home sales this summer,” says NAR President Richard F. Gaylord.

Last week, Freddie Mac and Fannie Mae announced that they were eliminating their “declining market” policies, effective June 1. NAR and others believed the policy was bad for the housing market because it discouraged consumers from buying homes in areas hardest-hit by foreclosures.

“This means consumers across the country will have access to safe, affordable financing with down payments of only 5 percent on most mortgages, with 100 percent financing available on some loan products.”

Lawrence Yun, NAR chief economist, said eliminating restrictive policies should be a big help to home buyers. “I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant,” he said. “Also, a recent notable drop in interest rates on conforming jumbo loans will help consumers in high-cost markets like California and New York.”
Posted by Anne Baker on May 23rd, 2008 3:43 PMPost a Comment (0)
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