Make Buyers Want Your Home!

You love your home but when it comes time to sell, you have to share the love. In the other words, you have to make your home be seen in the eyes of potential buyers as their home. That can be tricky.

But if you do some of the basic things such as clearing clutter, creating light, bright, and open space, adding curb appeal, removing personal items (family photos, trinkets), fresh paint, and clean or new carpet -- you'll be on your way to attracting serious buyers.

Let's look at specific areas that create widespread appeal inside the home.

Here are some of the top areas to improve: countertops, flooring, built-in furniture, and old-style attached fixtures such as those big sheet mirrors in the bathroom. However, when making these improvements, there's one important consideration.

Functionality is the greatest concern cited by homeowners, according to the latest poll conducted by the National Association of the Remodeling Industry (NARI).

"The functionality of a home is very important, especially over the long term, as many homeowners in this economy have opted for remodeling over moving to new homes," says NARI National President Paul Zuch, CR, president of Capital Improvements.

So let's explore the areas I mentioned earlier and see how improving these items can lead to greater interest in your home. Countertops are fixtures in homes. So making sure that you select the best material to endure the daily wear and tear is important. If we're talking about the kitchen, for instance, there are many options: granite, tile, recycled glass (for a green option), solid steel, composite stone, butcher block, laminate, and even concrete. Yes, that last one sounds surprising but concrete is being used for countertops and laminate isn't necessarily trying to mimic other materials anymore. Instead, homeowners are embracing laminate's own unique high-tech look. The popular trend is a mixing of several styles creating a blended custom look for the kitchen. But in the end, functionality will rate highest for potential buyers. All of the countertop materials mentioned above have advantages and disadvantages when it comes to maintenance and usage; make sure you completely research the material before selecting it for your home.

Fixtures are an important area to improve. "People know a lot more about design," Laura Kirar from Larua Kirar-TRU Design told the Alexandria Times. These days, quirky, eclectic styles from international trends are becoming more prevalent in the United States. However, push the envelope too far with quirkiness and you just might lose a potential buyer. What's important to know is that buyers are paying attention to fixtures. If you have damaged or worn out faucets or lighting, it's best to replace them before showing your home. Also, replacing those big, nothing-special sheet mirrors with some framed mirrors can add a unique look without costing very much. While you don't want to have to spend a lot just before you sell your home, remember that these seemingly small items can have a great impact on improving buyers' interest in your home.

Flooring is a big interest for buyers. Wood floors are still very popular. Many Realtors say buyers are looking for hardwood floors. That's partly because they endure and don't go out of style. However, if they're damaged it can be a drawback because buyers may focus on how much work it will take and cost to do the repairs.

Built-in furniture can improve a home. Built-in bookcases and entertainment centers can save space and help make the room look larger. However, there's a downside. Built-in furniture isn't easily movable. So, potential buyers will have to really find the furniture useful and suitable for their needs. "It's all about personalization—homeowners want to know that their space can be converted easily into a different space in the future," Zuch said in a press statement by NARI. And that's what buyers want as well—the ability to make your home theirs when the sale closes.

Written by Phoebe Chongchua

Loan Rule Change

Rules Change for Getting Home Loans
by Phoebe Chongchua

The Mortgage Bankers Association reported recently that mortgage applications decreased according to their weekly survey (ending 6/18/10). However, some banks are hiring mortgage lenders—a sign that banks are optimistic that requests for housing loans will increase.

J.P. Morgan Chase is planning to hire 1,200 loan officers, according to CNNMoney.com. Christine Holevas, a spokesperson for the bank said, "We may not be inundated with applications tomorrow, but we are confident the need will be there." Despite any slight downturns, expected increases in the mortgage business are estimated to go from $725 billion in 2010 to $916 billion by 2013, according to the Mortgage Bankers Association.

If you're looking to get a home loan here are a few things you should consider. If you're self-employed the rules have changed considerably and not just for mortgages but also personal loans too. Some lending institutions are now requiring self-employed borrowers to provide documentation from assets to income and the documented income is then checked with IRS records. "It used to be nobody checked your IRS records," says one source in the mortgage industry who agreed to be interviewed about the inside changes but could not be named.

Another big change has to do with what borrowers may have done in the past. "When Fannie Mae and Freddie Mac discover loans where the borrowers misrepresented their income, the agencies are requiring the lenders to repurchase the loan from Fannie Mae and Freddie Mac. In turn the lenders then have the option to go after the borrowers in the form of foreclosure—even if the loan is not delinquent," says the source. There's no statute of limitation for fraud. The source says, normally, if the loan is current, they won't pursue the borrower. One major lending institution hired a company to go through all its stated-income loans looking to see if there was fraud. "At first they started with all the delinquent loans and then they moved into performing loans. Then they started requiring lenders to buy back all these loans which put lenders out of business. That closed down some shops," the industry expert told me.

The problem that many self-employed borrowers have today is that they need to be able to show that their business is legitimate in order to get the loan. The typical documentation includes, but is not limited to, a Web site, CPA letter, 411 listing, and business license. And if you're not self-employed, the rules for loans are tight as well—bigger down payments and better documentation are a must. While some lenders will allow as little as 5 percent down, most are looking for more than that. Everything you submit to a lender is now being double-checked.

Doing your part to make sure that your finances are in order prior to applying for a loan ensures a smoother process. Here are just a few helpful tips:

Make no major purchases such as a car prior to applying for a loan
Have complete documentation of your income
Check and clean up your credit before attempting to borrow
Reduce the number of outstanding credit options: close unused credit cards
Remain current on all your loans
For more information on protecting yourself when applying for a loan, read my column: Don't Get Caught In Mortgage Fraud.

Published: July 2, 2010

10 % house start decine?

Last week's 10 percent decline in new home starts got all the headlines, and even caused some of Wall Street's doomsday analysts to talk again about a "double dip" in the US housing market.

 

But how important an indicator was that drop in starts, really?

Well, any decline in housing production is meaningful and worth noting.

But in this case everybody familiar with the housing market -- Realtors, builders, government economists among others -- predicted this drop two to three months ago!

Why? Because the expiring federal tax credits pulled tens of thousands of transactions forward this year into the months of February, March and April.

Bob Jones, chairman of the National Association of Home Builders, put it this way: "Builders tapped the brakes on new home production and pulled fewer permits for new homes in May in response to an expected lull in buyer demand" following the end of the tax credits.

Lawrence Yun, chief economist for the National Association of Realtors, also had forecast the drop and said -- don't be surprised if existing home sales come in lower in the next month or two for the same reason.

Unfortunately, though, all the negative news about declining housing starts obscured some important indicators elsewhere in the marketplace last week.

For example, new applications for mortgages to purchase homes, which had been falling for the past six weeks because of the phaseouts of the credits, took a big jump last week -- up by 17.4 percent in raw numbers over the week before.

Home prices also appear to be headed in a positive direction in many parts of the country. The latest survey from Fiserv Inc, based on the Case-Shiller and Fiserv home price indexes, found values trending upward in 155 of the 384 metropolitan areas surveyed, including some of the markets hit hard by the bust and recession.

California markets are especially encouraging, according to Fiserv, with price gains in 24 of 28 metropolitan areas. Dave Shiff, chief economist for Fiserv, attributed the trend to growing "optimism that a sustainable economy recovery is underway. More and more, " he said, "consumers have confidence that buying a home doesn't mean catching a falling knife."

Meanwhile, another national housing price index, the Altos Research 10-city composite, found listing prices higher in major markets: Up 2.4 percent in San Francisco, 1.4 percent in Dallas, 1.2 percent in metropolitan Washington DC.

The key takeaway point here: Keep your eye on all the market directional signals month to month, not just the ones that draw the big headlines.

                                                                                                                                                                                                                                                                      Realtor news: source

Is Your Home in Shape to Sell?

By Phoebe Chongchua

Ah, summer is in the air and that means a lot of people will start their summer cleaning routines. That couldn't be more important than for those who are selling their homes.       There's nothing quite like walking into a home for sale that's fresh, bright, clean, and sparkling. Of course, the opposite is true too. It's highly discouraging to walk through the house and not be able to study it because it's cluttered, dirty, and you can hardly see out the windows. With this in mind, here are a few areas to be sure you focus on before you have buyers coming through your home.       Window cleaning. If you have a lot of windows that are high, hiring a window cleaner might be needed. But if you think you can manage, then try some insider tricks. Mix one-quarter vinegar with cool water in a spray bottle. Instead of using paper towels, roll up newspapers and wipe the windows with them. The newsprint won't rub off on the window and it will save you the extra expense. Window washers recommend using a strategic wiping pattern. Starting at the top, so you don't have to be concerned with drips, wipe top to bottom. Then on the inside rub right to left. This way you'll see where there are streaks. Keeping the windows crystal clear allows buyers to see the natural light coming into your home and any beautiful landscaping.       If your screens are damaged with small tears or sagging it's worth repairing or rescreening them. Just make sure you have a good spline roller. A rundown house will attract low offers. HVAC Systems. Air condition and heating ventilation systems should be checked, cleaned, and in good working condition. Something as simple as a dirty filter can produce a thick layer of dust in your home when the HVAC system is used. Even though dust isn't a permanent problem (like a structural issue), it's not appealing to buyers and can leave an overall bad impression about the home. On top of that, dirty filters can cause everything from very poor air quality to poorly running systems that will drain your wallet.       Get rid of Insect nests. Bees, wasps, hornets love your home. Make sure you eliminate them by getting professional help if necessary. Insects buzzing around can be quite a scare for some buyers. Again, this

problem isn't about the house, necessarily, however, it could make buyers uncomfortable. The same goes for pets. Don't have them in the house when it's being shown or even in the backyard—not everyone is a pet lover.       Clear soil buildup. You may not live at the bottom of the hill, but homeowner, Mary Kelley says, "You don't have to have had a mud slide from the hill behind you. Heavy rain can cause soil buildup and then the water may seep under the foundation of the house."       The rain can cause the soil to move, even on the slightest slope (not even visible to the eye), and settle against the house foundation, causing dampness which may be harmful to the foundation…not to mention it's unsightly. Weed out driveway and exterior areas. Maybe you have an asphalt driveway. If the asphalt has even a hairline crack you could be headed for trouble. One homeowner had a tiny hairline crack between her house foundation and the concrete pool deck.       "I didn't even realize there was a gap there, then I saw this little green blade thing coming up. I thought it was grass. It was such a tiny little blade. I just ignored it. In a few weeks, with our continuing rain, I could see that it was going to be a palm tree. A palm tree has a very large, rigid trunk and it could actually damage the foundation of the house, pool, and deck," says Kelley.       Kelley says she has snipped the pesky baby palm tree off three times already and it keeps coming back. "I may have to try pouring 'RoundUp' on it and hope it kills it," she says.       Post check. While we're on the subject of slipping foundation and water, how's your wooden fence doing? It's not a good sign when buyers get to your home and suddenly the fence collapses due to age or wobbly posts from soil saturation. If they're loose, secure them.       Check to see if the wooden posts are rotting in the ground and, maybe weeds are growing around them trapping moisture and causing it to penetrate the wood. If that's the case, solving the problem before a buyer discovers it is best. Taking care of these not-so-common spring cleaning items before you put your home on the market is a matter of making a good first impression with buyers, and that may be the only impression…so make it count

Why Use A Realtor the Facts!

What "Realtor" Means to You

by Carla L. Davis

 

If you are new to the real estate world, and many are, the process can be quite overwhelming. Application and loans. Meetings and Showings. The terminology alone can be enough to confuse even the most savvy of people.

 

You may hear people use the names "Realtor" and "real estate agent" interchangeably. But did you know that not all agents are Realtors®? Let's take a moment to find out what a Realtor® can offer you.

Yes, both "agent" and "realtors" are licensed professionals, but the term "Realtor" is a registered trademark which means that your agent is a member of the National Association of Realtors (NAR). Founded in 1908, this association has now grown to over 1 million members.

Each year your Realtor pays membership dues. These dues are well spent, as they go towards advocating for issues that matter to the association, as well as to economic and market research, helping Realtors understand their industry and improve their business, helping the public understand the value of working with a realtor, and of course, supporting Realtors at the state and local level.

Once a Realtor, an agent is able to access a wealth of statistical information about markets and sales, all of which can be used to your advantage during the home buying or selling process. They can look up information regarding your local community, even on issues such as zoning, schools, and utilities.

What else does working with a Realtor afford you? It ensures that your agent follows a code of ethics, the very one set down by the NAR. According to their website, realtor.org, "Realtors are pledged to a strict Code of Ethics and Standards of Practice."

Those principles, in basic terms, are:

• Loyalty to clients;

• Fiduciary (legal) duty to clients;

• Cooperation with competitors;

• Truthfulness in statements and advertising; and non-interference in exclusive relationships that other REALTORS® have with their clients.

These agents also have access to some of the best properties. Through their MLS system on Realtor.com, you and Realtors across the nation have access to listings from near and far, depending on your needs. The NAR notes, "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."

And Realtors love their job. Testimonials taken from NAR's recent "I love being a Realtor" shows just that.

Realtor Julie Jacobson, Potosi, WI, "Being a REALTOR® has help my buyers and sellers to get better service and helps keep me up to date on the latest developments in the market place. As a REALTOR®, my network has grown and this helps expand my business."

Realtor Lisa Hamptom, Lancaster, NH, "I believe when consumers see the REALTOR® logo they know they are going to get great knowledge and service."

And finally, Realtors are known for customer satisfaction. An independent survey reports that 84% of home buyers would use the same Realtor again. That's a good track record in a market with millions of agents.

Published: May 27, 2010

Summer Energy Tips 2010 - 5

Summer Energy Saving Tips

by Jim Adair

 

A news release from Direct Energy recently crossed my desk, talking about ways to save energy in the home in the summer. It seemed like an odd time to talk about energy efficiency, which I equate with keeping warm by sealing the house to cold drafts, adding insulation and upgrading the furnace.

 

But summertime is the peak season for electricity use in Canada. The Independent Electricity System Operator (IESO) says that the all-time record for the province's electricity demand was on Aug. 1, 2006 during a heat wave. All of the top 20 demand days in history were in the months of June, July or August.

So this is a great time to look at ways you can save electricity and lower your energy bills.

An annual maintenance check by a professional HVAC technician for your central air conditioning will ensure it is functioning at its best. Replace the air filters every three months to keep dust out of the ducts. If you've had renovations done in your home, chances are the ducts are full of drywall dust and should be cleaned out.

Keep the vents clear of carpets, drapery and furniture, and close the vents in rooms that you don't use very much.

Clean the outside compressor with a hose. IESO suggests cleaning the grilles and fan blades and cleaning and lubricating the fan motor and coil fins by following the manufacturer's directions.

If you are thinking of buying an air conditioning unit, check the seasonal energy efficiency rating (SEER number), which is its energy efficiency rating. Direct Energy says a 13 SEER rating can deliver as much as 29 per cent more efficiency than an older 10 SEER air conditioner.

A programmable thermostat allows you to turn the temperature up during the day if nobody is home and again at night when the temperature goes down. Turning the thermostat up by 1 C can lower your electricity bill by up to five per cent – or raise it by 5 C at night and save up to 10 per cent on your bill, says Direct Energy. Open your windows at night and use fans to blow in cool air. During the day, keeping the windows closed and the curtains drawn will keep solar energy from overheating the house.

Room fans use a lot less energy than central air and can do a good job of cooling a house, as do ceiling fans.

IESO says a tree or shrub that shades your air conditioner can improve its energy efficiency by up to 10 per cent, but keep plants a minimum of two feet away from the unit. Keep the top clear of obstructions. Planting a deciduous tree on the south side of your lawn will block the sun during the summer and let in solar energy in winter when it has no leaves.

Topping up the insulation in the attic helps in both summer and winter, as does sealing air leaks around windows and doors.

Another way to save energy is by getting rid of old inefficient appliances, and many provinces and municipalities have programs to help with this. Depending on where you live, you can get free pick up of these appliances. In Ontario, for example, the Great Refrigerator Roundup program by Hydro One has collected almost 70,000 old refrigerators, freezers and air conditioners.

Across the country there are also a number of grant, rebate and incentive programs to help improve energy efficiency. The federal government has cancelled the popular ecoENERGY retrofit program, but many provinces and municipalities still offer incentives. For example, the Ontario Power Authority's Cool Savings Rebate program offers a $25 rebate for replacing an old non-programmable thermostat with a new programmable one; it gives a $250 rebate if you replace an existing central air conditioner with an Energy Star qualified system with a minimum 14.5 SEER.

To find out what incentives are available in your area, visit Natural Resources Canada's Incentives and Rebates (http://oee.nrcan.gc.ca/corporate/incentives.cfm) site and click on the map.

The IESO says consumers can help keep electricity costs down by shifting usage from the peak demand hours of the day. "Typically, demand peaks between 4 pm and 7 pm every day," it says. "Demand in the middle of the night can be as low as 12,000 MW to 13,000 MW and can rise by as much as 10,000 MW later the same day." It says demand is primarily influenced by weather, hours of daylight, business hours, school holidays and consumption patterns as people arrive home from work.

Published: May 25, 2010

Key to Earning Energy-Efficiency Tax Credits

If you are a home owner you now can claim up to $1,500 in expanded energy-efficiency tax credits for remodeling their principal residence to reduce energy consumption. Available until the end of 2010, the revamped Existing Home Retrofit (25C) Tax Credit helps consumers save two ways: on their costs and on their utility bills. "Remodelers can help find the best methods of saving energy in your home with an assessment, like a home energy audit," explained Greg Miedema, CGR, CGB, CAPS, CGP, a remodeler from Tucson, Ariz. "Tightening the house to reduce air leakage by adding insulation, fixing ducts, and installing a more efficient heating and air conditioning system can help save on energy bills today while also reducing next year's tax bill." The expanded federal tax credit refunds 30 percent of the product replacement cost up to a total of $1,500. It can be used not only for HVAC systems, insulation and water heaters but also for windows and doors and insulation as long as the new products meet IRS qualifications. In some cases, installation costs may also be used to claim the tax credit. Home energy audits can cost as little as $500, which remodelers say is an expense that pays for itself - and more - with savings from efficiency upgrades. And homeowners may be able to combine federal tax credits with local and regional incentives to maximize savings. Here's one example: Insulation improvements may be one of the easiest and most affordable ways to save on energy costs. Upgrading inefficient insulation (from R-19 to R-38) in the attic of a two-story, 2,000-square-foot Chicago home might cost around $1,000, but the tax credit brings that down to $700. Add that to Chicago's MidAmerican Energy residential energy efficiency rebate program, which can return up to $600 spent on insulation or other energy-efficiency upgrades, and the cost drops to $100 – meaning a two-year payback period for the $51 estimated annual utility savings for this project. Inspecting the ductwork, caulking and heating and cooling systems for possible upgrades or enhancements also help to provide additional energy savings, Miedema said. Homeowners also can use the tax credit for heating and cooling components. For example, upgrading a standard 10-year-old air conditioner to today's federal minimum 13-SEER (Seasonal Energy Efficiency Ratio) model may cost about $5,500 in Phoenix, but does not qualify for the tax credit. Spending as little as $2,000 more for a higher-efficiency air-conditioner (such as 16-SEER) earns the homeowner the $1,500 energy-efficiency federal tax credit. Plus, the local power company provides a rebate starting at $425. With the tax credit and utility rebate, the cost difference can be paid back in a couple of years, while the homeowner may enjoy utility bills savings for years to come. With the credit, tankless water heaters are comparable in cost to traditional gas water heaters, but last as long as 20 years and are 30 percent more efficient, according to several managers at a manufacturer of tankless water heaters and other gas appliances Savings depend on local energy prices, but home owners may also save with less frequent replacements. When the credit is included, homeowners can save $100 per year on their water heating expenses, he added. "These are just some examples of how the energy-efficiency tax credit helps consumers save money in making home improvements and cutting down utility bills," said Miedema. "Homeowners should contact a professional remodeler near them for advice on installing tax credit-qualified improvements in their home." Homeowners can use an energy-savings simulation from the NAHB Research Center at http://energysim.toolbase.org/ to determine likely costs of upgrades and savings. Information on rebates from utility companies and other state and local government incentives is available at http://www.dsireusa.org/. In addition to expanding the 25C tax credit, the Wind, Solar, Geothermal and Fuel Cell (25D) Tax Credit for renewable energy products now provides larger incentives for installing geothermal heat pumps, solar panels, solar water heaters, small wind energy systems and fuel cells. Although the upfront costs are high for these products, the tax credit is 30 percent and there is no cap on their cost through 2016. Taxpayers can claim the credits on IRS Form 5695.