Seeing Red - HouseMaster Highlights Red Flags for Home Buyers during National Home Inspection Month

RISMEDIA, March 30, 2009-HouseMaster, a North American inspection franchisor, reminds buyers and sellers that a professional home inspection is critical when buying or selling a home. As April marks National Home Inspection Month and the start of the peak home buying season, HouseMaster is providing consumers with a simple list of “red flags” to watch out for during the home buying process. Each of these red flags could be a sign of significant issues and defects and each should be thoroughly evaluated by a professional home inspector before potential buyers make an offer on the home.

These are the red flags that home buyers should look out for:

Numerous extension cords: This could be a sign of an outdated electrical system. Today’s electrical needs have grown significantly and as a result the home could require an entire electrical upgrade to meet these new demands. A professional home inspector will be able to assess whether a new panel and wiring is needed or additional receptacles will need to be installed.

Low water pressure or gurgling: If you turn on the faucet and the pressure is low, it could be evidence of a problem with older galvanized piping or inadequate piping. A professional home inspector will indicate the type of piping and estimated age and determine whether or not an entire new plumbing system is required. In many instances, sections of piping can be replaced on an as needed basis to correct the problem.

Horizontal foundation cracking: Vertical cracks are, for the most part, within normal settlement tolerances. Horizontal cracks are not. A horizontal crack generally results from hydrostatic pressure against the home’s foundation. Correction will often involve excavation, drainage provisions as well as repairs to the wall itself. If horizontal cracking is evident, several structural engineers should be consulted to ascertain the extent of movement as well as corrective measures. Opinions do vary and with a structural element issue, it is best to get several opinions.

Musty smell in basement: Storage in the basement that is raised off the floor (such as books and boxes), stains, or efflorescence on walls are conditions that can indicate water in the basement. A professional home inspector can assess potential causes. Simply improving the property grading or draining downspouts further away from the foundation could be a solution.

Wall or ceiling stains: Any stain should be further evaluated to determine the cause and extent of any possible hidden damage. A professional home inspector will look for causes of the stain as well as test the stain using a moisture meter to determine whether or not the stain is active.

Vacancy: Often a home that is in foreclosure is vacant which increases the potential for the home to deteriorate due to lack of maintenance, and ventilation. Mold and other moisture problems are very common in vacant foreclosed homes as are plumbing problems due to drying gaskets and valves or freezing pipes.

When purchasing a home, a buyer should never forego a professional home inspection. The tips above are provided as guidelines so that potential buyers can effectively and efficiently narrow down their options. Once a choice has been made, a professional home inspection by a qualified inspector will provide the potential buyer with an education on the home enabling them to make an educated real estate decision.

For more information, visit www.housemaster.com.

Tips for Tenants - Know Your Rights

RISMEDIA, March 28, 2009-As the state of the economy and tighter lending rules make it hard for many prospective homebuyers to get into a home these days, renting has become an affordable option to many of these individuals. If you are in the market to rent a home instead of buying it, here are 10 things you should do to protect yourself and make sure the communication between you and your landlord is clear:

1. Bring your paperwork. The best way to win over a prospective landlord is to be prepared. Bringing the following information when you meet prospective landlords will give you a competitive edge over other applicants: a completed rental application; written references from landlords, employers, friends and colleagues; and a current copy of your credit report.

2. Review the lease. Carefully review all of the conditions of the tenancy before you sign on the dotted line. Your lease or rental agreement may contain a provision that you find unacceptable - for example, restrictions on guests, pets, design alterations, or running a home business.

3. Get everything in writing. To avoid disputes or misunderstandings with your landlord, get everything in writing. Keep copies of any correspondence and follow up an oral agreement with a letter, setting out your understandings. For example, if you ask your landlord to make repairs, put your request in writing and keep a copy for yourself. If the landlord agrees orally, send a letter confirming this.

4. Protect your privacy rights. Next to disputes over rent or security deposits, one of the most common and emotion-filled misunderstandings arises over the tension between a landlord’s right to enter a rental unit and a tenant’s right to be left alone. If you understand your privacy rights (for example, the amount of notice your landlord must provide before entering), it will be easier to protect them.

5. Demand repairs. Know your rights to live in a habitable rental unit - and don’t give them up. The vast majority of landlords are required to offer their tenants livable premises, including adequate weatherproofing; heat, water, and electricity; and clean, sanitary, and structurally safe premises. If your rental unit is not kept in good repair, you have a number of options, ranging from withholding a portion of the rent, to paying for repairs and deducting the cost from your rent, to calling the building inspector (who may order the landlord to make repairs), to moving out without liability for your future rent.

6. Talk to your landlord. Keep communication open with your landlord. If there’s a problem - for example, if the landlord is slow to make repairs - talk it over to see if the issue can be resolved short of a nasty legal battle.

7. Purchase renters’ insurance. Your landlord’s insurance policy will not cover your losses due to theft or damage. Renters’ insurance also covers you if you’re sued by someone who claims to have been injured in your rental due to your carelessness. Renters’ insurance typically costs $350 a year for a $50,000 policy that covers loss due to theft or damage caused by other people or natural disasters; if you don’t need that much coverage, there are cheaper policies.

8. Protect your security deposit. To protect yourself and avoid any misunderstandings, make sure your lease or rental agreement is clear on the use and refund of security deposits, including allowable deductions. When you move in, do a walk-through with the landlord to record existing damage to the premises on a move-in statement or checklist.

9. Protect your safety. Learn whether your building and neighborhood are safe, and what you can expect your landlord to do about it if they aren’t. Get copies of any state or local laws that require safety devices such as deadbolts and window locks, check out the property’s vulnerability to intrusion by a criminal, and learn whether criminal incidents have already occurred on the property or nearby. If a crime is highly likely, your landlord may be obligated to take some steps to protect you.

10. Deal with an eviction properly. Know when to fight an eviction notice - and when to move. If you feel the landlord is clearly in the wrong (for example, you haven’t received proper notice, the premises are uninhabitable), you may want to fight the eviction. But unless you have the law and provable facts on your side, fighting an eviction notice can be short-sighted. If you lose an eviction lawsuit, you may end up hundreds (even thousands) of dollars in debt, which will damage your credit rating and your ability to easily rent from future landlords.

Six Questions to Ask When Considering a Reverse Mortgage

RISMEDIA, March 27, 2009

Reverse mortgages have become an increasingly important financial tool for people 62 and older who want to remain in their home and fund their retirement. And, with 78 million Baby Boomers approaching retirement, interest is expected to grow. Despite this, many Americans are still unclear about how reverse mortgages work and when they may be appropriate.

“A reverse mortgage is a loan secured by the value of a house, where no repayment of the loan is required until the borrowers permanently vacate the home,” explained Peter Bell, president of the non-profit National Reverse Mortgage Lenders Association. ” Historically, reverse mortgages have been of particular interest to those with limited sources of liquid income, these days, there are many new retirees considering a reverse mortgage as an option after looking at all the other assets they’ve accumulated. This tool can help a person avoid taking Social Security too early or defer taxable withdrawals from IRA or 401(k) balances.”

“Reverse mortgages enable many Americans to ‘age in place’ comfortably in retirement,” said Donna DeMaio, president of MetLife Bank. “For many people, reverse mortgages are a good way to continue to stay where they are, remain independent, and live a more fulfilling life. Modern retirement income planning is about making the most of what you have, and reverse mortgages can be an important part of that plan.”

There are several advantages to securing a reverse mortgage. Borrowers can continue to live in the home as long as they want, and the amount owed to the bank by the borrowers when the property is sold will not exceed the lesser of the mortgage or its sale value. Interest and charges, including origination and closing costs, accumulate until that time, with no periodic payment required. As with traditional mortgages, the bank does not own the client’s home: borrowers retain ownership, and are responsible for paying property taxes and homeowner’s insurance, as well as property repairs.

So, when does a reverse mortgage make sense? Consider the following questions:

1. Do you qualify? Are you and any co-owner of the home at least 62 years old? Do you own your home and live in it as your primary residence? These qualifications need to be met before a reverse mortgage can be considered.

2. Do you have equity built up in your home? For individuals and families who have diligently paid down mortgages for years, and have worked hard to maintain and improve their property, a reverse mortgage is a way to realize a portion of that financial value.

3. Are you satisfied with your current level of retirement income? Many individuals in retirement or approaching retirement are finding that traditional retirement tools, including IRAs, pensions, and 401(k)s, do not provide enough income to comfortably fund current or anticipated living and healthcare expenses. A reverse mortgage can provide greater peace of mind and improve one’s quality of life. Taking reverse mortgage proceeds in regular monthly payments (the “tenure” option) that last as long as one lives in the property is a way to boost cash flow each month, and usually will produce a lower loan balance than a lump sum distribution when the time comes to pay off the loan.

4. Do you want to retire your existing mortgage? Many retirees are still paying a conventional mortgage, and as a result, have less disposable income than they would like to have at the end of the month. Depending upon the amount, a reverse mortgage can pay off an existing mortgage, freeing up money for other things. To gain a better understanding of where you stand, the AARP has a free reverse mortgage calculator that’s available at www.rmaarp.com.

5. Is a reverse mortgage a better option than a home equity loan? For many retirees, the income and credit requirements on a home equity loan may prove an obstacle to accessing that particular financial tool. A reverse mortgage doesn’t have these requirements.

6. Do you intend to pass your home on to your children or other loved ones? With a reverse mortgage loan, the outstanding balance needs to be repaid when the title changes hands. If one’s heirs wish to keep the home, they may be able to refinance the loan at that time, but it may be necessary to sell the property to repay the loan. Take the time to openly discuss this question with loved ones as an important first step when considering a reverse mortgage. Many families find that their children would prefer to see their parents experience a more comfortable retirement, rather than making the priority obtaining the family home, ‘free and clear.’

Appraiser Checklist

By Barbara Ballinger | April 2009

Help clients understand what to expect during the appraisal process by sharing information on how appraisers reach their property value estimates.

Here are some of the factors that appraisers Joni L. Herndon of Real Property Analysts/Gulf Coast in Tampa, Fla., and John A. Hillas of Hulbert & Associates Inc. in Modesto, Calif., say they consider when determining value.


Incentives and concessions. Most of today’s buyers expect to pay the lowest possible price and still get some extras. Sellers and home builders are offering money toward closing costs, remodeling and decorating, upgrades, and association dues. The price set initially may not be the final price once concessions are factored out. Appraisers care about that final number.


Closing date. Forget what comparable neighborhood houses sold for a few months back. Appraisers want prices from the most recently closed transactions. “If a sale was more than 45 days ago, even 35, the price may be irrelevant,” Hillas says.


Condition and curb appeal. Appraisers typically find several properties with similar interior and exterior features to determine value. When markets are healthy, blemishes matter less, but when markets soften, problems—a dated kitchen or barren lawn—can reduce prices and deter buyers. “The difference in value is not just the repair costs but the time and hassle to make them. It’s better for sellers to do work in advance,” Hillas says.


Foreclosures. Appraisers technically shouldn’t consider neighborhood foreclosures when valuing a home, since foreclosures don’t meet the Appraisal Institute’s definition of a property reasonably exposed in a competitive market, says Herndon. “But when several neighborhood homes are abandoned, it’s hard not to caution sellers that this is a troubling trend and may affect home values,” she says.


Changing demographics. If a house is in an up-and-coming area, the value can be expected to rise. A location that’s perceived as safe also may help attract the increasing number of single female buyers.


Economic clouds. If there’s an oversupply of comparable homes for sale, or if the local job market is suffering, buyers may be hesitant to invest. Hillas advises setting prices aggressively from the get-go.


Chemistry. It’s hard to account for those times when buyers fall in love with a house, despite a high price, poor condition, or tough economy. “Emotional attachment is a factor that can’t be predicted,” says Herndon. Hillas agrees, “It’s what makes it harder to appraise homes versus commercial buildings, where buyers care more about the bottom line.”

Light at the End of the Tunnel? U.S. Home Prices Rise for First time in 12 Months

RISMEDIA, March 25, 2009-U.S. home prices rose for the first time in 12 months, showing an increase of 1.7% on a seasonally-adjusted basis from December to January, according to the Federal Housing Finance Agency’s (FHFA) monthly House Price Index. December’s previously reported 0.1% increase was revised to a 0.2% decline, and for the 12 months ending in January, U.S. prices fell 6.3%, and the U.S. index is 9.6% below its April 2007 peak.

The FHFA monthly index is calculated using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac.

For the nine Census Divisions, seasonally-adjusted monthly price changes from December to January ranged from -0.9% in the Pacific Division to +3.9% in the East North Central Division.

Month-to-month changes in the geographic mix of sales activity explain most of the unexpected rise in prices in January. The January home sales reflected in the FHFA data disproportionately occurred in areas with the strongest markets.

While it is difficult to perfectly control for changing geographic mix in estimating house price indexes, the data suggest that if one were to remove those effects, the change in home prices in January, while still positive, would have been far less dramatic.

It also should be noted that sales volumes, in absolute terms, were relatively low in the month. Accordingly, the estimation imprecision associated with the January estimate is relatively large and subsequent revisions to the monthly figure could be significant.

Do You Understand Your Credit Report?

RISMEDIA, March 21, 2009-Over 70% of consumers identify errors on their credit report. Twenty-five percent of those are serious enough to deny consumers and business owners access to credit, preferred interest rates or even a job. With over 54 billion credit updates occurring each year, it’s very likely you-or your clients-may have errors that are negatively impacting the ability to get credit and/or causing you to pay unnecessary interest expenses.

Identifying a credit report error is only the first step. Most consumers don’t know they have an error on their report because they rarely, if ever, review it until they need to get a loan. By the time this occurs, a consumer typically has less than 45 days before they need their loan funded, and their ability to get a single, valid error corrected within this timeframe is marginal at best.

The need to proactively understand, evaluate and optimize your credit profile has never been greater. So what should a consumer do? Become educated and informed about how credit works. Your clients should continually review and evaluate their credit profile. When a questionable activity is identified, he/she should make sure they understand it and correct any valid errors. In most cases, consumers begin by filing a dispute with the applicable credit agency who is reporting the information.

How Will Foreclosure Effect Credit Scores?

The amount of damage to a credit score caused by foreclosure, deed in lieu or a short sale during 2008 and 2009 may be mitigated by the slower economic times, say some credit and legal experts.

FICO may have to adjust its credit scores to lessen the impact of a foreclosure in the last two years, says Todd J. Zywicki, a professor of law at George Mason University.

''It just seems obvious that a foreclosure in 2008 or 2009 doesn't have as much information value as a foreclosure five years ago,'' he says. ''To the extent that foreclosure doesn't predict future behavior as much as it did in the past, you'd expect that the FICO algorithm would change to adjust for that.''

One of the country’s largest credit unions Golden 1 has already figured out a way to lend to people with a foreclosure on their record by offering a mortgage repair loan specifically for those who have lost a home to foreclosure and who want to buy a new one.

BECU, another large credit union based in Washington State, is about to present a program to fellow lenders, ''How to Lend to the Newly Credit Impaired.”

Source: The New York Times, Ron Lieber (03/14/2009)

National 30 Year fixed Rate Droped to 4.75% today

30-Year Mortgage Rates Drop Substantially for First Time in Four Weeks

The 30 year fix rate in Connecticut is 4.72% today

RISMEDIA, March 18, 2009-The weekly average rate borrowers were quoted on Zillow Mortgage Marketplace for thirty-year mortgages fell for the first time in a month to 5.21%, down from 5.28% the week prior, according to the Zillow Mortgage Rate Monitor, compiled by real estate website Zillow.com. Meanwhile, rates for 15-year fixed mortgages dropped to 4.78%, down from 4.82% and 5-1 adjustable rate mortgages increased, up to 4.71% from 4.64% the week prior.

Average Rate Average Rate
Mortgage Type Week ending 3/15/09 Week ending 3/8/09 % Change
30-year fixed 5.21% 5.28% -1.3%
15-year fixed 4.78% 4.82% -0.8%
5-1 ARM 4.71% 4.64% 1.5%

Rates for 30-year fixed purchase mortgages had fallen further, with the average rate on Zillow Mortgage Marketplace at 5.05%.

Thirty-year fixed mortgage rates varied by state. Maryland mortgage rates and New York mortgage rates decreased the most, dropping from 5.38% to 5.25% in Maryland and from 5.33% to 5.21% in New York. Georgia mortgage rates (5.05 %) and Texas mortgage rates (5.13%) were the lowest in the country while Ohio mortgage rates (5.38%) were the highest. California mortgage rates were the most requested among all states.

Average 30-yr. Average 30-yr.
Fixed Rate Fixed Rate
State Week ending 3/15/09 Week ending 3/8/09 % Change
Arizona 5.21% 5.30% -1.7%
California 5.18% 5.23% -1.0%
Colorado 5.22% 5.32% -1.9%
Connecticut 5.20% 5.23% -0.6%
Florida 5.21% 5.28% -1.3%
Georgia 5.05% 5.14% -1.8%
Illinois 5.30% 5.37% -1.3%
Maryland 5.25% 5.38% -2.4%
Massachusetts 5.23% 5.29% -1.1%
Michigan 5.27% 5.39% -2.2%
Nevada 5.32% 5.42% -1.8%
New Jersey 5.18% 5.28% -1.9%
New York 5.21% 5.33% -2.3%
North Carolina 5.23% 5.33% -1.9%
Ohio 5.38% 5.43% -0.9%
Oregon 5.23% 5.31% -1.5%
Pennsylvania 5.19% 5.28% -1.7%
Texas 5.13% 5.22% -1.7%
Virginia 5.22% 5.28% -1.1%
Washington 5.22% 5.26% -0.2%

House Passes Mortgage Bankruptcy Bill

The U.S. House approved legislation on Thursday that will allow bankruptcy judges to lengthen terms, cut interest rates and reduce the principal owed by bankrupt borrowers.

The so-called "cramdown" bill (the actual name of the bill is the "Helping Families Save Their Home Act") passed by a margin of 234-191. The legislation was modified to become more lender friendly; it requires borrowers to certify that they provided their lenders with financial information and gave them time to provide other alternatives.

Borrowers receiving a cramdown must reimburse their lender for a portion of the loss if they sell the property before they complete a five-year bankruptcy repayment plan.

House Republican Leader John Boehner of Ohio, who opposed the legislation, says it forces those who acted responsibly to “subsidize scam artists, speculators and those who knowingly made bad decisions.”

The bill also permanently increases the Federal Deposit Insurance Corp.’s insurance on bank deposits to $250,000, gives loan servicers legal protection when they modify troubled loans, and retools the Hope for Homeowners lending program, which has so far been a failure.

The Senate is expected to consider a version of the bill as early as next week.

Source: Bloomberg, Dawn Kopecki (03/06/2009)

Pricing Disagreement: What Is a Home Worth?

Homebuyers and the real estate professionals they choose to sell their homes don't always agree over what the property is worth, and many buyers think both of them are setting prices too high, according to a survey by HomeGain.com Inc.

The survey found that 63 percent of home owners believe the price their practitioner recommended is too low. About 45 percent of sellers think prices should be 20 percent to 30 percent higher, while 14 percent believe their home should be priced a whopping 30 percent higher.

Meanwhile, 21 percent of home buyers say the homes they are considering are overpriced by up to 10 percent; 32 percent say prices are 10 percent to 20 percent too high; and 6 percent say homes are more than 21 percent over priced. Only 18 percent believe homes are priced fairly.

“Home owners know that prices have fallen, but that somehow doesn’t apply to them because they have ‘upgraded vinyl’” or something, Pamela Frey-Primiani of Keller Williams Realty in Sicklerville, N.J., says. “Sellers have got to be realistic in their expectations. An overpriced home in these times does nothing — no showings, no offers, just whining from sellers that it’s all someone else’s fault that the home hasn’t sold.”

Source: HomeGain.com Inc. (03/05/2009)

First Time Home Buyer $8,000 Tax Credit

House Passes Mortgage Bankruptcy Bill

The U.S. House approved legislation on Thursday that will allow bankruptcy judges to lengthen terms, cut interest rates and reduce the principal owed by bankrupt borrowers.

The so-called "cramdown" bill (the actual name of the bill is the "Helping Families Save Their Home Act") passed by a margin of 234-191. The legislation was modified to become more lender friendly; it requires borrowers to certify that they provided their lenders with financial information and gave them time to provide other alternatives.

Borrowers receiving a cramdown must reimburse their lender for a portion of the loss if they sell the property before they complete a five-year bankruptcy repayment plan.

House Republican Leader John Boehner of Ohio, who opposed the legislation, says it forces those who acted responsibly to “subsidize scam artists, speculators and those who knowingly made bad decisions.”

The bill also permanently increases the Federal Deposit Insurance Corp.’s insurance on bank deposits to $250,000, gives loan servicers legal protection when they modify troubled loans, and retools the Hope for Homeowners lending program, which has so far been a failure.

The Senate is expected to consider a version of the bill as early as next week.

Source: Bloomberg, Dawn Kopecki (03/06/2009)

Freddie Mac Launches Rental Initiative

Freddie Mac is launching a rental initiative, which will give former owners and tenants of foreclosed property the opportunity to lease their recently foreclosed properties month to month.

The REO rental initiative will be managed by HomeSteps, Freddie Mac’s national real estate unit, and implemented through several national property management firms. Freddie Mac has about 8,500 properties in various stages of foreclosure.

Freddie Mac also will continue to suspend evictions through March 31 to ensure that former owners and occupants have an opportunity to explore new options available to them.

To qualify for a lease, the tenant or former owner must occupy the property and show they have adequate income to pay the monthly rental amount established by the property management company based on market rents for the area. Occupants must agree to allow HomeSteps to show the home to potential buyers during the lease period.

Source: Freddie Mac (03/05/2009)

Is Now the Best Time to Invest in Apartments?

Industry experts say consider investing in a duplex, triplex or small apartment building.

"Smaller units are typically older ... and during a downturn people prefer lower-quality properties with fewer amenities," says Hessam Nadji, managing director of research at real estate brokerage Marcus & Millichap.

Nadji also pointed out that young people are the most likely tenants in these older units and that segment of the population is growing. The baby boom peaked in the 1950s and those boomers’ children, born in the 1980s, are just going out on their own. While they have one of the highest unemployment rates now – 12 percent – they will likely be the first hired when the economy improves, says Reis Research Director Victor Calanog.

Reis identifies San Diego and Sacramento as areas expecting strong growth, as well as San Antonio, Texas, and Fairfield County, Conn., a suburb of New York City.

Nadji urged investors to buy now while prices are down. "There is a good chance that if an investor waits for a recovery to materialize, they'll see prices go up again," Nadji says.

Source: Investor’s Business Daily, Amy Reeves (02/26/2009)

Experts Weigh Rent-to-Buy Pros and Cons

The weak housing market has prompted some home sellers to offer rent-to-buy agreements to prospective buyers.

These buyers pay an up-front fee of approximately 1 percent of the sales price for the option to buy, and all the payments they make during the rental period go toward the principal.

Most rent-to-buy agreements last for two to five years; and if the occupants decide not to go through with the purchase, they lose the option fee plus the rental payments. Those that agree to purchase the home at the price specified when the agreement was signed also lose money if property prices have since fallen.

Moreover, buyers who make late rental payments often find that these do not count toward the home purchase. According to Arizona State University finance professor Anthony Sanders, "A good rule of thumb [is to] separate the rental decision from the purchase decision."

Source: Forbes 03/02/09

Copyright 2009 INFORMATION, INC.

6 Tips for Home Owners Who Turn Into Landlords

Home owners who decide to rent out their properties have to stop thinking of themselves as home owners and instead consider themselves as running a small business, experts say.

Thinking like a businessperson means focusing on the monthly cost of maintenance, mortgage and taxes, as well as being aware of landlord-tenant regulations and avoiding liabilities.

Here are key issues to consider:

Set a fair rent. Setting the right price will make it more likely that a landlord will be able to keep the place rented.

Understand landlord-tenant rules. Running afoul of landlord-tenant regulations and rules regarding security deposits can be costly.

Screen applicants. Eliminating potential tenants who can’t pay or who won’t take care of the property is very important.

Lay out the rules in a lease. Widely available sample leases can help. If you have questions, ask an attorney.

Consider a property manager. Despite the expense, turning the job over to experts can help a landlord come out ahead.

Talk to the condo association. If the property is a condominium, be prepared to deal with a host of regulations.

Source: The Washington Post, Renae Merle (02/28/2009)

Real Estate Pitfalls and How to Avoid Them

• Not pricing your home correctly — Everyone wants top dollar for their home, but a home priced right will sell more quickly. A real estate professional knows the market and how much your home is really worth.

• Falling in love at first sight — You can’t tell if a home is the right fit by merely driving by. An agent will be able to tell you the advantages and disadvantages of purchasing a particular home.

• Not having an objective eye when selling — Your house is your home, and it’s filled with wonderful memories, making it hard to see objectively. Your agent is a dispassionate party who will see your home in ways you won’t.

• Looking for a home without pre-approval — Many homeowners won’t even talk to a buyer who isn’t pre-approved. A real estate expert can help you get started right.

• Letting emotions guide decisions — Whether you’re buying or selling, emotions can get the best of you, especially when it comes to negotiations. An agent is trained to keep it professional.

What to Consider When Choosing the Best Location

• Find and compare local schools through Web sites such as www.greatschools.net and www.schoolmatters.com. Also, see my Web site for school comparisons.

• Take time and test the drive between the home you’re considering and your work or places of interest.

• Walk and drive around the neighborhood at different times of day to get a real feel for what happens when.

• Find and explore the closest grocery store, playgrounds, shopping district and other areas you’ll frequent.

• Stop by the local police department and ask for information on community watch groups and statistics on crime.

• Ask your real estate agent for information on resale value of homes in the area.

• Always view a home and its location as a package deal, not as separate issues.

The Essentials of Curb Appeal

Paint your door a standout color in order to be more inviting.

Keep railings, doorknobs and door knockers polished and painted.

Prune trees and hedges so the view is unobstructed and appears well maintained.

Keep the lawn mowed and trimmed.

Replace old plants and flowers with new ones in beds and planters.

Keep siding, walkways and driveway clean and in repair.

Wash windows and clean curtains and shutters regularly.

View with a critical eye to find anything that needs to be repaired or replaced.

The Benefits and Disadvantages of Buying New Construction

Benefits:

• Ability to customize to your personal needs and wants.

• Often more energy-efficient than older homes.

• Built to the latest building and safety codes.

• Equipped with up-to-date amenities.

• Newer construction and appliance warranties.

Disadvantages:

• Newly built homes, on average, cost more than existing ones.

• Often lack the trees and landscaping available with older homes.

• Construction delays can cause expense and frustration.

• Some subdivisions have additional homeowner’s association fees and other assessments.

• Construction may be ongoing in other areas of the subdivision creating noise and traffic challenges.

Getting Your Home Ready to Sell

• Obtain a typical home inspection checklist and do a walkthrough.

• Minimize furniture and clutter to make spaces look larger.

• Remove most — if not all — personal photos.

• Organize closets and minimize everything included.

• Clean out the garage, basement and attic.

• Put out fresh towels in the kitchen and bathrooms.

• Make sure all lights and fixtures are working.

• Check for leaks and repair faucets and showerheads.

• Keep countertops and floor clean and uncluttered.

• Fill the air with fresh, clean scents or the smell of baked goods.

Important Ways to Protect Your Family and Home

• Smoke detectors — To be most effective, a smoke detector should be placed on each floor of a home, with one near bedrooms to alert occupants while they sleep. Be sure to replace the batteries regularly.

• Fire extinguishers — Visit www.fireextinguisher.com for information on how to use, inspect and maintain fire extinguishers in your home or business.

• Homeowner’s insurance — Your home is most likely your largest investment. Homeowner’s insurance protects your investment, and also covers liability for injuries and damage that may be caused to others.

• Carbon monoxide detectors — Detectors provide early warning of a buildup of this potentially deadly, odorless, colorless, tasteless gas.

• Radon test kits — Discounted test kits can be purchased from the National Safety Council at www.nsc.org or by calling 1-800-SOS-RADON.

• Home security system — Homes without a home security system are three times more likely to be burglarized. Even the appearance of having a system can reduce the risks of being robbed.

Technically Speaking: Ways to Add Value to Your Home

Adding or updating a home security system is often a good way to increase your home’s resale value.

Multi room audio systems can tip the scales if a decision comes down to a choice between two otherwise equal homes.

In an increasingly energy—conscious world going solar for electrical power can save money while you occupy a home, and make the home more desirable when on the market.

Home theater systems don’t necessarily add dollar value to a home, but they can add a “coolness factor” that will make your home appeal to the right buyer at the right time.

Be careful not to go tech crazy and add too many expensive toys that will create a home too far out of the typical neighborhood price range.

The Benefits of Using a Professional Real Estate Agent

A REALTOR®...

• . . . views a home without the emotions that can cloud a homeowner’s judgment.

• . . .provides virtual home tours, direct marketing, Web presence, and the latest in technology.

• . . .keeps up-to-date on legal issues and codes in the area.

• . . . negotiates time of possession, contingencies, terms and repairs.

• . . . builds relationships with other agents as well as past clients, to create exposure to the most qualified buyers.

• . . . has market knowledge in order to price a home to sell more quickly and for the most profit.

• . . . helps buyers determine how much home they can afford, as well as answers questions on financing.

• . . . aids sellers in setting the price and determining what improvements will gain the most profit.

How to Impress Potential Buyers

If you don’t have wood floors, install them. If you do have wood floors, Make sure they’re in good shape and polished.

Place placards or notecards around the home detailing home improvements and upgrades.

Freshen up rooms with a new coat of paint in neutral colors so potential buyers can more easily visualize their own decor.

Take out unnecessary furniture, and make sure any pieces left in the room are moved away from walls. Air around furniture creates the illusion of space.

Clean, clean and clean again. Pay special attention to bathrooms and kitchen.

Consider hiring a professional stager to enhance the interior of the home and a landscaper to make the most of curb appeal.

Replace and add light fixtures wherever possible. Modern lighting adds overall appeal.

Don’t forget the closets. A big factor in many home purchasing decisions is closet space, so do everything you can to clear out, clean up, and organize for the best effect.

Remodel Your Way to a Renewed Home

Let There Be Light:

Bringing light into your home makes rooms look larger and brings a fresh, clean feel.

It's Not Hard:

Updating doorknobs, draw pulls, and cabinet hardware is a great way to give your home a boost.

Mix It Up:

Combine furniture and design elements from different periods with the same basic look, shapes, and colors.

A Non Desert Island:

Adding an island to your kitchen creates a work space, extra seating and eating areas, and provides storage.

All Decked Out:

Adding a deck to your home is one of the best ways to see a return on your remolding investment -- not to mention it's great for personal enjoyment.

New Stimulus Bill Enhances Tax Credit

♦ No “Repayment” Required

♦ Increased to $8,000 or 10% of Value
(whichever is lower)

♦ First-Time Home Buyers Only
(Have not owned a residence in the past 3 years)

♦ Owner Occupied/Principal Residence

♦ Recapture if Property Sold (in 1st 3 years)

♦ Income Limits
($75,000 individual/$150,000 couple)

♦ Available to December 1, 2009

Mortgage Calculator and Much More

Please cut and paste
http://www.mortgage101.com/calculators.asp?p=cyber

Go to this site for:


Mortgage Calculator

How Much Can I Afford?
This calculator helps you identify how much you are able to afford when you are searching for a home.

How Much Do I Need to Qualify?
Compare your total monthly obligations including your total mortgage payment to your monthly income.

Should I Buy or Rent?
Our Buy vs Rent Calculator help you analyze the total cost of renting versus the total cost of owning.

Tax Benefits of Buying This calculator estimates the tax benefit of buying a home.

APR Loan Calculator
Estimate the Annual Percentage Rate (APR) for a mortgage loan using your mortgage rate.

ARM Loan Payment
Compute your initial and estimate your future payments with Mortgage 101 ARM Loan Payment Calculator.



Refinance Calculators

Should I Pay Points - Refinance?
Helps you understand if you should pay loan points during your refinance.

Refinance Debt Consolidation Management
Figure how long before your savings equal the cost of obtaining a new consolidation loan.

Mortgage Principal
Figure your principal balance after any number of payments.

Extra Payments
Figures how long your mortgage will last depending on how much you pay monthly.

Mortgage Payment Amortization
This calculator will amortize your mortgage over the loan period based on your input.

APR ARM Loan
Estimate the Annual Percentage Rate for an Adjustable Rate Mortgage based on input parameters.

Free Stuff - No strings attached

Here’s the place to go when you want to give away things you no longer need -- or look to see what others are offering to give away with no strings attached.

This extensive network is made up of over 4,600 local groups with over 6 million members across the globe. It's a grassroots and entirely nonprofit movement of people who are giving (& getting) stuff for free in their home towns. Each local group is moderated by a local volunteer and there is no cost to belong. The network keeps over 300 tons a day out of landfills by turning trash into treasure.

Stop by and see this in action. Do a little search – who knows you might pick up some good stuff!

GO to:

http://www.freecycle.org/

How to Find Great Investment Properties

The ideal property to purchase is one with a motivated seller.

Search for pre-foreclosure, auction and bank-owned properties nationwide on the internet.

Let friends and family know you're in the market to buy.

Advertise in the local paper that you're interested in investment properties.

Search your neighborhood and local newspaper for 'For Sale By Owner' signs and listings.

Keep an eye out for properties that appear to be abandoned and approach the owner.

Reasons to Use a Professional Instead of Doing It Yourself

Surveys show homes sold with the help of a real estate professional sell for up to 15 percent more than those sold by homeowners.

For sale by owner properties are often seen as easy targets for investors, creating situations where the owner is pressured to sell for a significantly reduced price.

A real estate professional previews homes, has market knowledge, prescreens buyers and provides valuable information that can make every transaction easier.

With ever-changing real estate laws and regulations, homeowners can find themselves in over their heads trying to handle everything on their own.

Many real estate agents avoid showing their clients “for sale by owner” homes since working with a nonprofessional often means more work and more time.

To sell your home yourself can be tempting, but many homeowners end up seeking the aid of a real estate agent after their own efforts fail.

The importance of Homeowner's Insurance

Homeowner’s insurance covers your personal property and personal liability in case of lawsuits arising from things that happen on your property.

Most lenders require homeowner’s insurance to obtain a mortgage.

Personal property should be insured for its replacement value.

A thorough and up-to-date inventory can aid replacement in case of fire, flood, or theft.

Save money by researching various insurance providers to see which is best for you and your needs.

The higher your deductible, the lower your premium. Make sure you have enough insurance, but not more than you need.

Insuring your home and your auto with the same agency can result in discounts. Having some security systems in place can qualify you for more.

8 Simple Ways to Conserve Energy and Water

Water

Water plants early in the morning when temperatures are cooler.

Run washing machine and dishwasher only when full.

Replace an older toilet with a newer water efficient one.

Have all water-using appliances and irrigation systems checked for leaks.

Energy

Buy only Energy Star labeled appliances, products, and lights.

Switch to compact florescent light bulbs that use a quarter of the electricity.

Turn off all lights and unplug all appliances when not in use.

Avoid running large appliances during peak hours:
5 a.m. – 9 a.m. and 4 p.m. – 7 p.m.