45 Lessons in Life

This is a small piece that was forwarded to me by a client. I think that it is inspirational and a very good way to resolve to be better next year! Happy New Year!

As Seen on TV – In Reality, Are Those Real Estate Shows Really Fake?

RISMEDIA, December 21, 2009—(MCT)—Flip on your television and tune into HGTV’s “House Hunters,” and you might see yet another set of Chicago homebuyers and a local real estate agent in action.

The popular cable TV program seems to like the local real estate market; it’s certainly been featured before. And with every show, another buyer and agent learn the skinny about what’s real and unreal on reality television.

“House Hunters” is one of those programs you can stumble across and then find yourself sitting down to watch, critiquing the three different properties being shown and the buyer’s tastes, and then guessing which one they’ll pick. It also provides a sense of property values in a given locale, as in “look how much more/less house we can get if we moved somewhere else.”

So hearing the behind-the-scenes details of several episodes that have been filmed here recently is a bit like pulling back the curtain to reveal the real Wizard of Oz.

A few months ago, while they were looking for another set of homebuyers, the show’s producers stumbled across the blog of Chicago Realtor Eric Rojas and asked if he had a willing buyer. He did. But Chicagoans Kurt and Kelly Schnakenberg had to be more than willing to appear on television. They had to have the financial wherewithal to actually close on a home, and they had to have the right personalities for the show, something they demonstrated in a videotape sent to the producers.

Rojas, meanwhile, had to fill out a questionnaire about how he does business.

For the show, the couple looked at three properties in Lakeview: a $415,000 loft, a $355,000 vintage condo with a kitchen that needed work and a $400,000 loft-style town house that needed updating. Of those three, one of them was the unit the couple did indeed purchase. Another one was under contract to someone else, so the listing agent had no problem showing it. The third unit was for sale, but the couple had never seen it before and had pretty much already made up their mind.

The conversations aren’t the same, either. Kurt Schnakenberg said he and his wife did debate the merits of various condos but it was never so serious and “usually over a bottle of wine.”

Chicago agent Carrie Georgitsis, who showed properties to her father for a different episode, had no idea how tiring it would be until she found herself involved in 40 hours of filming for what amounts to less than 25 minutes of programming. She found herself having to say the same things over and over, while the camera crew shot her conversations with her father from different angles, and had to be careful not to tip off viewers to which property was chosen.

Why can’t it be more real than it is? Here’s three good reasons: One, it’s a TV show and it’s meant to be entertaining. If it turned out that the buyers had bad credit and couldn’t close on a home, there’d be no happy ending and no “after” shot showing the new homeowners in their abode. Two, sellers—and homeowners associations—have to agree to the filming and some don’t want to be bothered or don’t want to deal with the legal ramifications if a crew member gets hurt during filming. And three, if the buyers and the real estate agent are totally unlikable and mumble, do you want to watch them buy a house?

Rojas doesn’t think so. “‘House Hunters’ is house candy,” Rojas said. “It’s not realistic. It’s directed. You don’t learn anything about buying. You learn about real estate values. You learn about how houses look.”

Despite all that, agents who’ve done it say they still watch the show, and they’d go back on it again. After all, it’s great marketing exposure, particularly because programs are repeated.

“It’s totally fake, but does anybody think reality TV is real? It’s all canned, but it’s fun to watch,” said real estate agent Karl Vogel, who was also featured in a recent episode helping a Boston native find a home in Chicago.

The Schnakenbergs, who’d never before seen the show, already plan to capitalize on their upcoming 30 minutes of fame when it comes time to sell their condo. “Listing it ‘as seen on HGTV’ couldn’t hurt us,” Kurt Schnakenberg said. “I’m not sure if it will get us more money, but it will help us get more showings.”

(c) 2009, Chicago Tribune.

5 Questions to Consider Before Buying a Home

RISMEDIA, December 15, 2009—(MCT)—Interest rates on the benchmark 30-year, fixed-rate mortgage dipped to a 38-year low recently, giving consumers another reason to consider purchasing a home or refinancing their current one.

Freddie Mac recently stated the average rate on a 30-year loan was 4.71% with an average 0.7 point, the lowest rate since the agency began its weekly tracking of long-term interest rates in 1971. A point is equal to 1% of the loan amount, payable as a lump sum at closing. While the decline wasn’t overly dramatic, the dip is likely to get people wondering whether it’s time to sign on the dotted line.

The 5 following questions may help you decide if now is the time to go ahead and purchase a home or refinance your current home.

Q: Why are rates so low?
A: Since early January, the Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae in an effort to stabilize the housing market by making homes more affordable for consumers. The Federal Reserve Bank of New York, which is managing the program, plans on purchasing $1.25 trillion of securities.

Q: Are rates expected stay this low?
A: It’s hard to tell, but don’t count on it because the lending landscape is likely to change next year. In September 2009, the Fed said it would gradually wind down the purchase program, ending it by March 30, 2010. That has some in the mortgage lending industry worried.

In a recently published mortgage survey, more than 60% of Bankrate.com’s panel of experts predicted that rates will move higher over the next 30 to 45 days. How much higher is anyone’s guess. Last year at this time, the average 30-year, fixed-rate mortgage was 5.53%.

Q: Why do different mortgage surveys come up with different average interest rates?
A: It depends on which lenders are in their sample, when the survey was taken and whether the rates quoted are the posted rate, the application rate or the commitment rate. Also, some surveys take into account the points paid to secure the rate.

But regardless of the survey, the general consensus is that rates are ultra-low right now and may be the lowest the market will see.

Q: What else does a consumer need to know?
A: The lowest rates are offered to the most credit-worthy customers who can make sizable down payments. Shop not just for the interest rate and the points involved but also for the fees involved, which can vary widely from one lender to another.

If you’re refinancing, remember the bigger the loan, the greater the payoff for finding a lower interest rate. Savvy customers put in their paperwork with a lender and set a “strike” interest rate at which to lock in the loan, a good move considering rate volatility.

Several refinancing calculators are available online that let borrowers plug in all the required numbers and determine the monthly savings and how long it will take to recoup the expense of a refinancing.

Q: So is now the best time to buy a home?
A: It depends on personal situations. Homebuyers certainly have a lot of factors working in their favor right now—low interest rates, plenty of marked-down homes for sale and an extended and expanded federal tax credit that will expire in the spring.

On the flip side, there’s growing sentiment among analysts that housing prices, which are showing ever-so-minor improvement, may fall further. The reason? Lenders are expected to get better at determining which borrowers will qualify for loan modifications. That means lenders also will get faster at moving homes through the foreclosure process.

Mark Zandi, chief economist at Moody’s Economy.com, recently predicted that housing prices nationally will hit bottom in 2010’s third quarter. That means anyone buying a house now could see the value of their investment initially depreciate.

(c) 2009, Chicago Tribune.

Choosing the Right Community for You

If you are buying a home, one of the first things your real estate professional will do before taking you on home tours is interview you to determine the type of house you want such as a 2,000-square-foot four-bedroom, split-level with a formal dining room and two-car garage. But just as important is the type of community you want to live in. Knowing what your requirements are will help narrow your home search and save time.
To expedite the house-hunting process, start by making a list of the dream home factors that are most important to you and your family’s lifestyle. Consider style, location, proximity to work and schools, yard size, children in the community, and of course, price.
Price and location generally are the key factors you’ll use to identify the communities that best suit you. If you are moving within the same city, you may want to start your community search by getting in your car and exploring. There are also resources on the Internet that let you compare communities.
You’ll want to ask yourself critical questions, such as: Do you dream of something quaint and charming that can only be found in an older area? Or, do you prefer everything new? Are you willing to sacrifice size and space for architectural detailing? What about drive and commute time to the office and schools? Will you forgo the number of bedrooms and a big yard for proximity to a lake or other recreational areas?
Whether you have children or not, buying a home in a community with good schools is important. It not only adds value to your property, but also is an attractive feature when and if you decide to sell. There are plenty of resources available to get information about schools within the communities you are considering. Various Internet sites offer school reports and profiles. They provide statistical data such as graduation rates, college-bound percentages, and standardized test scores. You can also learn about special programs the schools offer. In addition to these reports, many schools have their own Web sites you can peruse. And of course you can always talk to people in the area or take a tour of the school.
Additional factors you’ll want to consider during your community search are crime, recreational activities, proximity to shopping and restaurants, and other specific family needs.
Once you’ve narrowed your search to two or three communities that fit your price range and lifestyle, make comparisons of price and sales activity. Your real estate professional can help you determine which communities are most sales-worthy at present, and which are more likely to continue to be.
There are many factors involved in selecting the right community for you and your family. Discuss your options with your real estate professional. This will provide the information he or she needs to help you find property listings to tour. Remember, a targeted approach to house hunting is less time consuming, less expensive and more efficient.

10 Trouble Spots to Consider When Purchasing a Foreclosed Home

RISMEDIA, December 21, 2009—It’s easy pickings out there for many potential homebuyers. Housing prices are at their lowest in more than a decade, inventories are high, analysts are predicting a new wave of foreclosures and the government is offering two substantial tax credits for which many homebuyers qualify.

But bargain buyers beware, warns Vince Mastronardi, whose property preservation business has been busy preparing foreclosed homes for sale.

“Buyers need to educate themselves about the potential pitfalls of purchasing distressed property,” says Mastronardi, president of On-Site Specialty Cleaning & Restoration. “It’s not so much what damage occurred, but the source of that damage and how long before the problem was addressed.”

These 10 signs may indicate that trouble is around the corner.

1. Unheated house in winter months. If the home has been properly winterized, there’s no need for heat. But if the home has not been properly winterized, pipes will burst and cause water damage.

2. Missing sinks, toilets and other fixtures. Make sure they’ve been properly removed and not ripped from walls and floors.

3. Peeling, bubbling, and discolored paint; swelling in walls or ceilings (especially around kitchens and bathrooms) or a musty odor all indicate water damage and, potentially, the presence of moisture and mold.

4. Fungus growth inside cabinets, behind drawers and built-ins. Fungus could mean that there has been water damage. Since water falls down, look for the source above the mold.

5. Blocked drains or pipes will cause future problems and may have already created sewage backups.

6. Black cobwebs, greasy gray residue on walls and/or a strong oily odor. This could point to potential soot damage or a malfunctioning furnace.

7. An older home with extensive renovations. Check with the city for pulled permits in order to get remolding details. If asbestos is present and has been disturbed, be sure it’s been remediated by a certified specialist.

8. Excessive painting of every nook, cranny, door and floor may mean that the seller is covering up mold.

9. Discolored subflooring. From the basement, check the subflooring above for stains and small holes, both caused by mold.

10. Air Quality. The air quality within a home tells a lot about the home’s condition. Be sure to include air and surface testing in your home inspection. It’s a few hundred dollars well spent.

“Time and technique are the most important factors of effective clean-up and preventing future problems like mold or contamination,” Mastronardi explains. “Ideally, professional cleanup begins within a few days of the damage; technicians are trained, certified or licensed; and equipment is specialized and up to date.”

Ask the seller to explain how the damage was fixed. Plus, check out the company that performed the repairs to ensure it has industry-recommended certification. If needed, follow-up with the seller or repairing company for specific repair details.

The Benefits of Staging Your Home

You may be asking, what is home staging? According to Wikepedia, "Home staging is the act of preparing a private residence for sale in the real estate marketplace. The goal of staging is to make a home appealing to the highest number of potential buyers, thereby selling a property more swiftly and for more money. Staging techniques focus on improving a property's appeal by transforming it into a welcoming, attractive product that anyone might want."

Keep in mind, staging is not the same as preparing a home for sale. When preparing a home for sale there will naturally be small repairs and fixes that need to be done. Staging, on the other hand, is improving the design and organization aspect of the home for better visual appeal.

The benefits of home staging are many!

Staging causes you to get rid of the clutter:
When it comes time to move, you will be happy your home staging efforts gave you a head start! Clear out and organize the closets, cabinets, and shelves. It will make things much easier for you later anyway.

Staging increases the chances of a sale.
Any effort to increase the chance for a sale must be taken, and that includes the details. You would be surprised how much seemingly small details can make a difference. Staging gives you that extra push.

Staging helps you reach your asking price.
Especially in times when the market leans toward the buyer, justifying the asking price is necessary. Staging your home will create a higher value in the mind of the buyer and help you reach your desired price.

Staging helps you reach a sale more quickly.
The least amount of time a home is for sale, the better. When you stage your home effectively, you will move the sale more quickly.

Staging helps you think like a buyer. When you are staging your home, you will be looking at it objectively as if you were the buyer. Having this mindset will help throughout the entire process.

Any other benefits to staging your home? I would love to hear them!

Crofton, MD - A Great Place to Live

Crofton is a planned community. On a map, Crofton is a triangle bordered by Route 3, Route 424 (Davidsonville Road) and Route 450 (Defense Hwy). It is midway between Baltimore and Washington, DC. Inside the trangle, everything is residential with the exception of the Crofton Country Club, a few churches, and Village Green...a small cluster of businesses. Crofton Parkway is a wide boulevard that is a 4 mile circle inside the triangle. Many of the homes along the parkway back to the golf course. On any given day, you will see people strolling, running, and biking the parkway.

In the past 10 years, new housing was build outside of the Crofton triangle. There are townhouses and single family homes by a variety of builders. Walden is a planned community with a golf course and country club. Housing in the newer area of Crofton is comparable to other housing built in the Washington, DC area in the past 10 years.

One of the advantages that Crofton has is location and the accessibility to transportation. Washington, DC is a 25 minute drive; Baltimore is a 30 minute drive. There is a bus that leaves Crofton every morning for the New Carrolton Metro Station (orange line). The bus returns every evening. The New Carrolton station is about a 20 minute drive from Crofton and there is parking there. The MARC train that goes to Union Station leaves from Bowie and Odenton. Both stations are within 15 minutes of Crofton.

Crofton has a beautiful park with athletic fields and an outdoor theater. In addition, there is a smaller park with a lake inside the triangle. The lake is stocked with fish, and on a summer day, many youngsters try their luck at fishingl. The other lake in Crofton put the community in the public eye a few years ago when snakehead fish were found.

A quiet residential community, Crofton has all sorts of activities. Every summer there are Sunday evening concerts on Village Green; there is an Easter Egg Hunt, a Halloween parade, and a Christmas tree lighting. There are summer ice cream socials, and every spring and fall there is a wonderful craft bazaar across from the Village Green.

Anne Arundel County Heritage

Back in the 1950's the folks in Annapolis (the capital of Maryland) made the wise decision to maintain as many of the historical buildings in the city as possible. The goal was to keep the 17th century feel, and as a result Annapolis has the largest collection of 17th century real estate architecture in the country. You can stroll through downtown Annapolis and enjoy the museums, historic sites, shopping, dining, and views of the water.

Anne Arundel County is located on the Chesapeake Bay, and there are many water activities. Every fall a week is devoted to the sail boat show, and a week is devoted to the power boat show. All of the boats are in the waterm and visitors to the shows can board the boats. Any time of the year, you can walk across the Easport Bridge over Spa Creek. Hundreds of boats can be viewed from the bridge. The U.S. Naval Academy adds to the rich maritime heritage of Annapolis.

Average List Price for Sold Properties in Anne Arundel, Howard, and Prince George's Counties for August

This is where the really positive news shows. The number of houses sold in the month of August for Anne Arundel County was 9% higher than a year ago. In Howard County there was a 7% increase. Prince George's County is the big winner with a 48% increase over August 2008. Keep in mind that the sales price is lower than a year ago. However, the good news has to start somewhere. Increase in sales price will come as the economy improves. It may be the the $8K tax credit is getting the first time home buyer out to buy. It also appears that now is the time to buy if you are a first time home buyer that has been sitting on the fence, because this is probably the bottom of the market. As short sales and foreclosures decrease, home prices will start to increase. It is hard to say when that will happen, but it is inevitable. Keep in mind that like all of our economy, the housing market is cyclical, and we have been in this down cycle for three years.

Data from MRIS

Resale Houses Sold in Anne Arundel, Howard, and Prince George's Counties for August

This is where the really positive news shows. The number of houses sold in the month of August for Anne Arundel County was 9% higher than a year ago. In Howard County there was a 7% increase. Prince George's County is the big winner with a 48% increase over August 2008. Keep in mind that the sales price is lower than a year ago. However, the good news has to start somewhere. Increase in sales price will come as the economy improves. It may be the the $8K tax credit is getting the first time home buyer out to buy. It also appears that now is the time to buy if you are a first time home buyer that has been sitting on the fence, because this is probably the bottom of the market. As short sales and foreclosures decrease, home prices will start to increase. It is hard to say when that will happen, but it is inevitable. Keep in mind that like all of our economy, the housing market is cyclical, and we have been in this down cycle for three years.

Data from MRIS

Median Sold Price for Real Estate in August - Anne Arundel, Howard, and Prince George's Counties

Median price tells us that as many houses sold above this dollar amount as sold below the amount. This statistic has been down over the same period a year ago for the past 12 months in all 3 counties. Anne Arundel and Howard Counties' numbers are less than 10% and have been for the entire year. Prince George's County has taken the biggest hit in prices. This is because there are more distressed properties in Prince George's County than in any other county in Maryland. Also, keep in mind that a lot of first time home buyers are taking advantage of the $8,000 federal tax credit. This means that lower priced homes are selling because people are being given an incentive to purchase.

So this statistic indicates that many more lower priced homes are being sold than higher priced homes.

Data from MRIS

Top Things to Do in Maryland

Planning a trip to Maryland or thinking about relocating? Here is a list taken from www.worldtravelguide.net of things you should definitely check out!

• Tour the National Aquarium in Baltimore (image below) (website: www.aqua.org), home to more than 560 species of sub aquatic life. Start your day by having breakfast with the dolphins, or sign up for a sleepover with the sharks.

• Listen to the music at the beautiful Pier Six Concert Pavilion (website: www.piersixpavilion.com) where concerts are hosted during the summer months (June to late September).

• Climb the Washington Monument (website: www.nps.gov/wamo) in the heart of Washington, DC for a panoramic view.

• Take a water taxi ride to the neighbourhoods of Fell's Point (website: www.fellspoint.us) and Little Italy (website: www.littleitalymd.com).

• Sign on for sailing lessons at the world-renowned Annapolis Sailing School (website: www.annapolissailing.com).

• Soak up the sun at Ocean City (website: www.oceancity.org), a lovely beach resort boasting an expansive white sand beach, a 5km- (3-mile-) long boardwalk, amusements, tram rides, boating and deep-sea fishing.
  

• Hike or bike the old towpath once used by mule-drawn barges in Chesapeake & Ohio Canal National Historic Park (website: www.nps.gov/choh), stretching 295km (184 miles) from Washington, DC to Cumberland in Western Maryland, and visit the headquarters where George Washington began his military career.

• Enjoy a variety of water-based activities at Deep Creek Lake (website: www.deepcreeklake.com), the state's four-season resort, or play 18 holes of golf on two scenic championship courses.

• Admire some of the world's best racehorses during the week-long activities celebrating the annual running of the Preakness Stakes (website: www.preakness.com) in May. It is the second event in thoroughbred racing's prestigious triple crown.

What are your favorite things to do in Maryland? I would love to hear them!

Average Sold Price for Real Estate in Anne Arundel, Howard, and Prince George's Counties

Unfortunately, the positivity that we saw in dollar sales has not reached average sold price. For Anne Arundel County, it's the best average sold price since March. Howard County suffered an 8%+ lost compared to average sold price a year ago. Prince George's County has experienced the most significant losses in average sold price because of the large number of short sales and foreclosures. As a county, Prince George's has suffered the most significant number of distressed homes in Maryland.

Based on the past couple of months statistics, it appears that the price of homes will be the last statistic to improve.

Data from MRIS

Real Estate Dollar Volume Improving in Maryland Counties

For the month of August real estate dollar volume was up in Anne Arundel County in positive numbers for the second month in a row. Howard County was off less than 2%. With a whopping 15%+, Prince George's County was also up 2 months in a row. This chart relates to total dollar volume of resales sold. In future blogs, I will show you other real estate market indicators for Anne Arundel, Howard, and Prince George's Counties. The good news is that although the numbers fell off a bit from July, 2 positive months in a row is the best performance in the past 12 months.

In future blogs, I will chart average dollar sale, median dollar sale, and units sold. Those of us in the real estate industry are hoping that this is the beginning of a trend.

All numbers are compared to the same period last year.

Data from MRIS

Maryland Fun Facts

Main Street (formerly Church Street) in Annapolis, Maryland, USA Photo © Hisham Ibrahim / Getty Images

Thinking about moving to Maryland? Here are some fun and interesting facts about the "Old Line State." (Taken from history.com)

• Maryland was the hometown of the Babe and the Raven: Baseball great Babe Ruth and Edgar Allen Poe lived there. Poe is also buried in Baltimore's Westminster Cemetery.

• The state sport of Maryland is jousting, a competition between two armored contestants mounted on horses in which each tries to strike the other with a lance. The sport has been enjoyed in Maryland for 300 years.

• Maryland is famous for great seafood, especially crabs. During lunch hour on Maryland's Chesapeake Bay, vendors sell almost as many crabcakes as hot dogs and hambugers combined.

• Maryland's Mount Clare Station, built in Baltimore in 1830, was the first railroad station in the United States.

• Notorious gunslinger Doc Holliday was called "Doc" because he was a dentist. Holliday learned his trade at the Baltimore College of Dental Surgery.

• Kunta Kinte, the slave ancestor of Roots author Alex Haley, arrived in Annapolis in 1767. This is now commemorated at the City Dock by a plaque and statue of Haley.

• The Mother Seton House in Baltimore and the National Shrine of Saint Elizabeth Ann Seton in Emmitsburg both celebrate the life of the first American to be sainted, a Baltimore resident.

• America's first umbrellas were produced in Baltimore, beginning in 1828.

• Each year on September 17, 23,100 luminaries are lit at Maryland's Antietam National Battlefield to honor the dead of America's bloodiest one-day battle, fought during the Civil War.

• The Mason-Dixon line was drawn between Pennsylvania and Maryland in the 1760s to end a border dispute. The line is traditionally thought of as the division between America's North and South.

Signs of Change: Existing-Home Sales Rise 3.6% in June

Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June, according to the National Association of Realtors®.

Existing-home sales-including single-family, townhomes, condominiums and co-ops-increased 3.6% to a seasonally adjusted annual rate of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2% lower than the 4.90 million-unit level in June 2008.

Lawrence Yun, NAR chief economist, is hopeful about the gain. “The increase in existing-home sales occurred in all major regions of the country,” he said. “We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions. Despite the rise in closed transactions, many Realtors® are reporting lost sales as a result of new appraisal standards that went into effect May 1 of this year.”

A June survey of NAR members shows 3% experienced at least one lost sale as a result of the new Home Valuation Code of Conduct, with seven out of 10 reporting an increased use of out-of-area appraisers. Seventy percent of NAR appraiser members said consumers were paying higher fees, while 85% report a perceived reduction in appraisal quality.

“Clearly the process needs to be revised, but the most logical approach is to use appraisers with local expertise, industry designations and access to local data, who make a physical examination of the property and use apples-to-apples comparisons with nearby home sales,” Yun said. “In many cases, normal homes are being compared with distressed homes sold at a discount, which often are in subpar condition-this is causing real harm to both buyers and sellers.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.42% in June from 4.86% in May; the rate was 6.32% in June 2008. Mortgage interest rates have trended lower in recent weeks.

Total housing inventory at the end of June fell 0.7% to 3.82 million existing homes available for sale, which represents a 9.4-month supply at the current sales pace, down from a 9.8-month supply in May. Raw inventory totals are 14.9% below a year ago.

“This is another hopeful sign-if we can keep the volume of sales above the level of new inventory, prices could stabilize in many areas around the end of the year,” Yun said.
An NAR practitioner survey in June showed first-time buyers accounted for 29% of transactions, unchanged from May, and that the number of buyers looking at homes is up nearly 12 percentage points from June 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are very good opportunities. “Despite some of the challenges, the housing market continues to demonstrate signs of recovery,” he said. “The temporary first-time buyer tax credit is clearly helping people make a decision and is contributing to the overall stimulus impact, but since it’s taking longer to close transactions, many would-be beneficiaries may not be able to take advantage of the credit before the December 1 expiration date. As a consequence, consumers need the expertise of Realtors more than ever to navigate both the obstacles and opportunities in today’s market.”

The national median existing-home price for all housing types was $181,800 in June, which is 15.4% below June 2008. Distressed properties, which accounted for 31% of sales in June, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Single-family home sales rose 2.4% to a seasonally adjusted annual rate of 4.32 million in June from a level of 4.22 million in May, and are 0.2% higher than the 4.31 million-unit pace a year ago. The median existing single-family home price was $181,600 in June, which is 15.0% below June 2008.

Existing condominium and co-op sales jumped 14.0% to a seasonally adjusted annual rate of 570,000 units in June from 500,000 in May, but are 3.1% below the 588,000-unit level in June 2008. The median existing condo price was $183,300 in June, down 18.9% from a year ago.

Northeast
Regionally, existing-home sales in the Northeast rose 2.5% to an annual pace of 820,000 in June, but are 4.7% below a year ago. The median price in the Northeast was $249,400, down 5.9% from June 2008.

Midwest
Existing-home sales in the Midwest increased 0.9% in June to a level of 1.10 million but are 1.8% lower than June 2008. The median price in the Midwest was $157,000, which is 9.1% below a year ago.

South
In the South, existing-home sales rose 4.0% to an annual pace of 1.81 million in June but are 3.7% below a year ago. The median price in the South was $163,200, down 11.9% from June 2008.

West
Existing-home sales in the West improved by 6.4% to an annual rate of 1.16 million in June, and are 11.5% higher than June 2008. The median price in the West was $214,800, which is 24.9% below a year ago.

Read more: http://rismedia.com/2009-07-23/signs-of-change-existing-home-sales-rise-36-in-june/#ixzz0N3NOUsXT

First-Time Homebuyers Have Unique Advantage in Mortgage Market

First-time homebuyers and those thinking about refinancing are in a great place.

“The credit markets are still tight, but they have loosened up significantly from 90 days ago,” said Scott Norman, vice president of the Texas Mortgage Bankers Association.

So is this a good time to enter a mortgage transaction? It might be, if you can qualify. “The two biggest issues are going to be credit and down payment,” Norman said. “Those are really going to trigger your ability to get a mortgage in a decent amount of time.”

Here’s what you’re up against in specific mortgage situations and what you can do to increase your chances of getting a deal done.

If you’re buying a home
Get ready for paperwork. Have your bank statements, W-2 wage and tax statement and pay stubs organized.

“Overdocumentation is the name of the game right now,” said Linda Davidson, senior loan officer at Service First Mortgage in Garland, Texas.

Having all the documents upfront will speed the application process.

Check your credit score. The most widely used score is the FICO, which ranges from 300 to 850. Your score, based on information in your credit report, helps lenders predict how likely you are to make your payments on time. The higher the number, the better the chance you’ll be approved for a loan at a low interest rate. “Clean up your credit score,” Norman said. Catch up on any late payments and pay off or pay down your debt.

First-time buyers have a sweetener in the form of an $8,000 credit on federal income taxes for homes purchased before Dec. 1.

It’s critical that you have a down payment because lenders want to see that you have skin in the game. Mortgages insured by the Federal Housing Administration require a 3.5% down payment, which can come from a family member, employer or charitable organization as a gift. For a non-FHA-insured loan, lenders are requiring a 10% down payment, said real estate agent Brenda Rogers of Coldwell Banker Apex, Realtors in Plano, Texas.

If you’re refinancing
“Have plenty of equity,” Rogers said. Equity represents the ownership value you’ve accumulated over time by making payments, and lenders want you to have a financial stake in the refinancing. “The lender doesn’t want to lend 100 percent of the value of the property,” said Norman, of the Texas Mortgage Bankers Association.

Another reason to build equity is that you don’t want to owe more on your home than it’s worth, a situation some homeowners face today.

Also, consider how long you plan to remain in your home, because you need to stay long enough to recoup closing costs associated with refinancing. Those costs typically will total $3,000 to $5,000, said Davidson, of Service First Mortgage. “If you’re going to move out of your home in five years or less, then typically it’s not going to be worth your doing,” she said. “If you plan on staying longer than that, then we need to look at the costs vs. the monthly savings to see how long it will take to recoup that cost.”

Sometimes things outside your control can affect your attempt to refinance.

Rachel Kelley of Plano said she’s been trying to refinance with Bank of America, which last year acquired her original lender, Countrywide Financial Corp. Kelley, a medical writer, ran into financial trouble after her work was cut to part time. “I cannot afford my house payment anymore,” she said. She said her repeated attempts to get more information from Bank of America on how to refinance her home through the Obama administration’s Making Home Affordable refinancing program have been unsuccessful. “I spoke to several people, trying to get information about the program and what I needed to do to refinance,” Kelley said. “It is very likely I will be behind on my payments in the near future due to their inability to get me the proper information on time in order to refinance.”

Loan modifications
A loan modification is when a lender changes the terms of your loan so you can afford your payments.

That can be done by lengthening the term of your loan, lowering your interest rate or allowing you to skip payments and adding those to the end of your loan.

The Obama administration is prodding mortgage-servicing companies to bolster their efforts to modify troubled loans. The servicer is the company that collects and processes your mortgage payment. It may or may not be your original lender.

If you’re having trouble making your payment, contact your servicer immediately and ask about a loan modification.

(c) 2009, The Dallas Morning News.
Distributed by McClatchy-Tribune Information Services.

Staging Basics

Staging Basics. Staging is the process of enhancing the impression a prospective buyer has about your home. Staging is all about removing things from your home that make it look smaller, drab or ated. It differs from decorating because decorating involves bringing things into the home to enhance the look of it.

The key to staging is simplicity. You want to get prospective buyers to a place where they can picture themselves in the home. To do this focus on the following:

Declutter. Remove "you" from the home (meaning pictures and personal items). Replace personal photos with scenery or postcards. A good rule to follow is to have no more than 3 items on any surface. Remove all items from kitchen counters and store them away.

Neutralize. Keep rooms light with paint colors like cream, tan, or white. Keep bright colors to a minimum and use neutral and/or natural colors that can work with many different styles.

Keep it clean. Nothing sells better than a clean and well maintained home. Always keep the home feeling and smelling clean for showings.

Upgrade without spending a lot. Some inexpensive things can make a huge difference. For example, new bed treatment (especially in master bedroom), new towels, fresh paint, or replacing old lamps and lighting fixtures.
Showing Your Home Checklist

• Clean the home from top to bottom
• Send pets to the neighbors
• Keep things organized and clutter free
• Don't forget to declutter outside (toys, folding lawn chairs)
• Mow the lawn, rake leaves, trim bushes, edge lawn, and plant some flowers for color
• Paint doors and windows to freshen up their appearance
• Patch holes in driveway and reapply sealant
• Wash windows and screens
  

Do Not

• Leave valuables out and on display
• Leave pictures or personal effects out
• Clutter the closets (buyers do look)
• Allow pet fur or smell to permeate the house
  

$8K Tax Credit for First Time Home Buyers

There is talk that this credit will be extended into 2010, but as of yet, nothing definitive has come out. As of today, this is the straight and skinny on the $8,000 Federal Income Tax Credit for first time home buyers.

1. Eight grand, new buyers: The tax credit included in the economic stimulus legislation is much narrower than the $15,000 proposal. This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.

2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.

3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.

4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.

6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

Tips for First-Time Homebuyers

Home-price adjustments in markets around the country have opened doors of opportunity for many renters. If you are transitioning from renter to homeowner, the prospect of making such a large investment may be exciting, while at the same time overwhelming. But it doesn’t have to be. Here are six common mistakes to avoid.
1. Not understanding the homebuying process. Educate yourself. Find a homebuyer seminar that you can attend or research online. The U.S. Department of Housing and Urban Development Web site (www.hud.gov) has an entire section devoted to homebuyers with common questions of first-time homebuyers, mortgage and home-buying programs information, downloadable tools such as a wish list and home-shopping checklist, tips on selecting a real estate professional, etc. Likewise, Prudential Real Estate’s popular Web site, prudential.com/realestate, offers consumers brand-new tools for the homebuying process, such as free home environmental reports, Value Range Estimates and Property Profiles, among other resources.

2. Not asking questions. There are many facets and intricacies to the homebuying process, so although you may gain a basic knowledge, you will still have questions. Don’t hesitate to let your real estate professional know that you are new to the process. Make sure you choose a sales professional who is willing to spend time with you and walk you through the entire process. He or she will expect you to have questions at each step—from house hunting, to making an offer to the closing. Remember, this is one of the largest financial transactions of your life, so you want to have a clear understanding of what’s going on.

3. Buying on impulse. Don't feel pressured into making an offer on the first home you see. Buyers, especially first-timers, may be impressed by the first two or three homes they view. Look at a good selection. List the positives and negatives about each home. Narrow the prospects to three or four and then return for a closer look. When you decide to make a bid on a property, work with your real estate professional to get all of your questions answered before making an offer. But don't wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.
4. Looking outside your price range. Before beginning your home search, consider getting pre-qualified to so get an idea of how much you may be able to borrow. Use this information as a starting point in determining your price range. Then take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, homeowners insurance, utilities, private mortgage insurance (PMI) and maintenance.
5. Not planning ahead. Think about personal changes you are planning in the next five to seven years. For instance, are you starting a family, and if so, is the home large enough and will it continue to be? If this will be a starter home or if you think you’ll be relocating in a few year, you’ll probably want to pay closer attention to appreciation and resale value. If a double-income is necessary to qualify for financing and to make your payments, do your plans foresee an income sufficient to continue making payments?

6. Failure to focus on location. Don’t just focus on the house. Examine the community. Does it suit your lifestyle? Is the area safe, well-maintained, close to work, stores and schools? Find out about zoning and what new construction is planned on vacant land in the immediate area. Also consider the property marketability when it’s time to sell.
Above all, remember knowledge is key. No question is a silly question. Your real estate professional can be an invaluable asset throughout the process. Making smart home buying decisions will make the home-buying process less scary and your first home purchase a rewarding experience.

Resolve to Get Your Home Documents Organized

As a homeowner, you begin to accumulate all sorts of records and papers the moment you made the offer on your home. Loan documents, inspection reports, title insurance policy, home improvement receipts, appliance warranties are just a few of documents that you may at one time or another need. Would you be readily able to locate these items? Are they filed away or in different junk drawers around the house? Knowing where these items are can save you a lot of time and even money in the long run.

Consider investing in a record-keeping system. It doesn’t have to be expensive. You can purchase an accordion file and label each flap with a different category. Then use the following tips as a guide to get started.
Contracts and Legal Papers. Keep all the papers signed and/or given to you at the closing together in one place, preferably in a safe deposit box. These documents include the deed, settlement statement, appraisal, disclosures, mortgage note, inspections and any other reports, and title insurance policy. You will need these records again if you decide to refinance or sell your home.

Insurance Policies Keep a copy of all insurance policies relating to your property together. This may include homeowners, flood and earthquake policies. With these documents, keep a list of insurance agents or companies and copies of correspondence related to claims.

Purchase and House Data It’s also a good idea to keep a copy of the original listing of your house, comparable market analysis, floor plans, blueprints, and historical information. If you own a newly built home, keep a list of contractors and material suppliers as well.

Property Taxes Keep your tax bills and record of payment for as long as you own the home and possibly even longer. You may need these items if your tax returns are ever audited.

Home Maintenance and Improvements Records in this category include receipts for repairs or replacement expenses, names of contractors, contracts, and a log of maintenance tasks.

Warranties, Manuals and Receipts These documents provide you with a proof of purchase date and determine service and parts guaranteed. In addition, the manuals usually provide care information so you can help ensure your household appliances are being properly maintained. You should keep your warranties, manuals and receipts for these items for as long as you own the appliances.

Home Inventory If you were ever to lose any of your possessions due to fire, burglary, or vandalism, having a home inventory can help you avoid a lot of heartache and make it easier when filing an insurance claim. Start with a sheet a paper for each room in the house. Go around the room and list every item. Don’t forget the attic, basement or other storage places. For each item, write the original cost, purchase date, replacement cost, model number, brand name, where purchased, and a general description. You can also use a computer software system so that you have an electronic copy.

Besides a written inventory, take photos or video of each room for visual documentation. It is also a good idea to arrange valuable collections, silver, jewelry, etc. and take close up photos.
Keep a copy in your home files and the originals in a fireproof safe or safe deposit box. Make sure you update your home inventory photos and list at least once a year.

Organizing your home files may take a considerable amount of time initially, but it will definitely be time well spent in the event you need the documents later on.

Tips on Moving with Pets

When making your moving plans, don’t forget to include your beloved pets. Although they present a new set of challenges, it doesn’t have to add to your stress if you take the following steps before your big move.

Visit the vet. Schedule a pre-move visit with your veterinarian for a checkup and to make sure that all vaccinations are current. Use this time to get copies of your pet’s records, a recommendation for a veterinarian in your new location, and possibly a tranquilizer to give your pet during transportation.

Research laws in new area. Research the requirements regarding animals in your new locality. Nearly every state has laws regarding entry of dogs, cats, horses, birds and other pets. For example, most states require interstate health certificates for dogs and horses coming from another state. If you own an exotic animal such as a ferret or potbellied pig, check to see if it is allowed as a pet in your new city. Some states require an entry permit. You can obtain compliance information from the state veterinarian or other appropriate authority. It’s important to get this information well ahead of your move so that you can get any necessary examinations or documents.
Make sure your pet’s identity and rabies tags are current. You should also have a special travel identification tag just in case they become lost during the move. The tag should include the pet’s name, your name and new address, and an alternate contact.

Decide on transportation mode. Decide how you will be transporting your pet. Animals are not allowed on moving vans, so your choices are by car or air.

By car. If traveling by car, the American Animal Hospital Association suggests that you take your pet on short rides before the trip so that he can get accustomed to the movement. The day of the trip, don’t feed your pet for several hours before departure. It’s also a good idea to take him on a long walk before heading out.

Pack a travel kit to include food, food and water dishes, can opener, scooper, paper towels for clean ups, and plastic bags. You may also want to include a blanket to cover your car seats, plus treats and a favorite toy. If you are traveling with birds or other small pets, such as a hamster, make sure they are in a stable cage with proper ventilation. A kennel for cat or dog may also be a good idea.

Plan ahead. If your trip will require an overnight stay, find out well in advance of your trip whether pets are allowed at the lodging of your choice. The website www.petswelcome.com is a great place to search for lodging that accommodates pets.

By air. Traveling by air definitely requires preplanning. Each airline has its own policy regarding pet transportation. In addition, there are federal requirements you must follow. For example, dogs and cats must be at least eight weeks old and weaned for at least five days. In addition, cages and containers must meet certain standards.
You need to decide if your pet will accompany you in the cabin or be checked as baggage, or shipped separately by air freight.

Check with your airline to make sure that pets are allowed to travel in the cabin and obtain guidelines. The U.S. Federal Animal Welfare Act requires that pets traveling in the passenger cabin be in a carrier that can fit underneath the seat without blocking the main aisle. The container must remain stowed the entire flight.

If your pet will be transported as baggage or by freight, make shipping arrangements as far in advance as possible so that space can be reserved. It is recommended that you schedule a non-stop flight on a weekday. You also need to supply the air carrier written instructions for food and water.
Other precautions to take when transporting your pet by air include: Before traveling, get your pet accustomed to the kennel in which it will be shipped. Don’t give your pet solid food six hours prior to the flight. Providing water a few hours before the flight is advisable.
Write your contact information on the container and make sure your pet is wearing a tag with the same information. The Federal Aviation Administration (www.faa.gov) and Department of Transportation’s (http://airconsumer.ost.dot.gov) websites have valuable information regarding traveling with pets.

Transitioning to new home. Once you are in your new home there are some things you can do to help ease the transition for your pet. If you have a dog, take him for a walk immediately so that he can become familiar with the new area. Cats, on the other hand, have a tendency to run away searching for their old home. They should be kept indoors for several weeks until they become comfortable in the new home and familiar with its scents and noises.
Veterinarians also advise that you bring water from your old home, because a change in water sources can sometimes cause your pet to become sick.

Like humans, pets are can become stressed when change occurs. By planning ahead, you can help to make sure your pet has a smooth transition to its new environment.

What a Buyer Should Expect During the Closing

The last step in the home buying process is what real estate professionals commonly refer to as “the closing.” The closing, or settlement or close of escrow, is when all the progressive steps in buying a home from the acceptance of the offer, title search, home inspection, mortgage approval, and so on, come together in a final transaction. The documents are ready to sign, the buyer is ready to hand over the purchase price and the seller is ready to transfer title—and most importantly the keys!

Usually held in an office setting, most require about an hour and may be attended by some or all of the various parties in the process: the buyer, seller, real estate sales professionals or attorney, and title-company representative.
What goes on during the closing? The buyer reviews and signs loan and real estate documents, as well as pays for the property, closing and other costs. One such loan document is the federal Truth-in-Lending disclosure form which describes the annual rate of financing (APR), finance charges, amount financed, total of payments and the payment schedule. There will also be a form itemizing what your monthly payment consists of including the principal, interest, taxes, insurance and other monthly charges. If everything is in order, the buyer signs the loan papers.

Real estate documents are just as important. There’s the HUD-1 form, which you have the right to inspect at least one day before the closing. This statement itemizes services provided and the fees charged for the entire real estate transactions. There will be a breakdown of the seller’s and buyer’s (borrower) financial obligations. Some of the charges include appraisal fee, credit report fee, loan origination fee, loan discount (points), title insurance fee, government recording fees, PMI Premium, inspections and attorney fee.

Other real estate documents that may be reviewed and/or signed include title documents, warranty deed (which transfers the title of the property) and other acknowledgment of reports.

Assuming that the funds are in order, the deed is correct and the title is clear, the final step is the disbursement of funds to the seller for the purchase price of the home. The title company should already have the loan funds in its possession, but the buyer will need to bring a cashier’s or certified check for the down payment and the closing costs if it was not included in the mortgage loan. If the buyer’s annual real estate taxes and homeowner’s insurance will be paid through the lender, an escrow account will also be established.

Once all the papers are signed and funds are disbursed, the buyer will receive the keys and is now a homeowner.

Remodel Your Kitchen and Bath without Breaking the Bank

It’s not surprising that two of the most popular rooms for home makeovers are the kitchen and bathroom. When potential homebuyers are searching for homes, they generally are more attracted to homes with updated kitchens and baths. These same rooms rank high in return on remodeling investment at resale, according to Remodeling Magazine’s Cost-vs-Value 2008-09 Study.

However, both can be pricey ventures. According to the same study, the national average for minor kitchen remodel was $21,246. A sample remodel at this cost includes replacing cabinet fronts, flooring, laminate countertops and oven and cooktop; installing mid-priced sink and faucet, adding wall cover and repainting trim.

The national average for a mid-range bathroom remodel was $15,899, which included replacing fixtures, installing a porcelain-on-steel tub, new shower and ceramic tile flooring.

If you’re like many consumers today, you are more budget conscious and may not be able to afford thousands of dollars on a remodeling project. Here are some alternatives that will give your kitchen and bathroom a fresh, modern look without breaking your piggy bank.

Kitchen

Cabinets—Give your cabinets a fresh look by either refinishing or refacing the fronts at a more economical cost than buying new ones. You can even take the center face out and install a glass front.

Hardware—Replacing your cabinet knobs and drawer pulls, can give your kitchen an entirely new look.

Paint—A fresh coat of paint is always a sure bet. And it is one of the least expensive ways to give a room a makeover. To further transform the room, choose more modern hues, such as a warm yellow or deep red.

Countertops—The price of natural quartz or stone countertops can quickly eat away your kitchen remodeling budget. Less expensive, yet still attractive alternatives are solid surface materials such as Silestone® or granite and ceramic tiles. An even more affordable choice is laminate, which is easy to install yourself and comes in a variety of colors and styles.
Faucets and Sinks—Add a fresh new look by replacing your sink and faucet with a high-arched spout in an updated finish, such as brushed nickel, brushed chrome or stainless steel.

Backsplash—Another option to modernize your kitchen’s look is adding a backsplash. But rather than having ceramic tiles, consider creating a mosaic with ceramic or glass or install a faux backsplash panel.

Window treatments—Switch out older valances with options that let the natural light in.
Lighting—By adding under cabinet lights or even track lighting, you can create a dramatic look to your kitchen.

Bathroom

Paint—As with the kitchen, a new coat of paint is a low-cost way to renew a room’s look. Choose a warm color to give the room an intimate feel.

Showerheads—Change out old showerheads with a new rain showerhead.

Shower Doors – If you still use shower curtains for your bathtub, you can update the look by installing glass doors. Frameless doors are preferable. However, if the walls aren’t flush to the tub area, framed doors will still give you the modernized look you’re seeking.

Hardware—Just as with the kitchen, replacing the knobs and handles can give your vanity a fresh new appearance.

Lighting and Mirrors—In addition to the vanity, the lighting and mirrors above that area can combine to make the perfect focal piece for your bathroom. If changing the vanity is not in your budget, consider swapping out your unframed glass for a more decorative mirror and add a new lighting fixture.

You don’t have to spend thousands of dollars to add pizzazz to your kitchen or bath. Just changing one or two elements can make a huge difference in its appeal to you and a potential buyer down the road.

5 Tips to Help You Sell Your Home Fast

There is no question that in many parts of the country, houses are currently on the market longer. As a seller, this slow-down means there is more competition for a limited pool of potential buyers. Consider the following five tips to place your home on the fast track to sale:

Price It Right. The first 30 days are the most critical. If your home is priced too high, interested buyers may never even tour your listing. The longer the property is on the market, the fewer the prospects.

Deciding the value of a home isn’t an exact science. Yet, there is data to help you determine a fair asking price that is right on target. You may want to hire a real estate appraiser for an objective, unbiased estimate. Then consult with a real estate professional who can help you determine true market value based on a comparable market analysis, which will include recent home sale transactions as well as homes currently on the market. From your analysis, you may want to price your home conservatively to give it a competitive edge.

Make Your Home Irresistible. Unless they are looking for a fixer-upper, most homesellers are more likely to make a bid on a home that they can enjoy immediately. Therefore, you need to create an environment the buyer can’t resist. In other words, do everything you can to make the home so attractive, charming, cozy, inviting, comfortable and exciting that a buyer will want to buy that lifestyle for himself.
Evaluate the home from a buyer’s point of view. An experienced real estate professional will be able to offer an objective view and will also know what buyers are asking for. Get your home in tip-top shape by making repairs and cosmetic improvements, and removing clutter. This may mean investing in a few upgrades to modernize your home’s look such as installing newer carpet and light fixtures and painting the walls a neutral shade.
Create Traffic. If you want buyers to see your home, you must first find the buyers. Work with your real estate professional to design a marketing plan that is flexible and capitalizes on your property’s most desirable features. Your strategy should include ways to reach buyers online and offline – such as word of mouth, the Internet, yard signs, direct mail, open houses and so on.

Go with a Professional. Selling a home is more than just putting a sign in your yard and having a listing on the Internet. And in a competitive market, you don’t really want to take the chance of making novice mistakes that can slow the selling of your home. By hiring a real estate professional, you get the benefit of an experienced marketer and negotiator who is familiar with real estate issues in your community. A real estate professional can offer worthy advice on pricing and staging your home based on their vast experience.

Plus, there’s the added value of the peer-to-peer networking among real estate professionals, which can bring buyers and sellers together – sometimes even before the property goes on the market.
Offer Incentives. Offering incentives can be just the impetus a potential buyer needs to select your property over others. You may want to consider offering a carpet or paint allowance. Or, pay for a professional home inspection or a home warranty – and, depending on your market and budget, offer to pay some of the closing costs.

Don’t be discouraged if there are competing homes for sale in your neighborhood. With just a few smart moves, you can turn a buyers’ market in your favor.

Should Buyers Use a Real Estate Professional?

With just the stroke of a few keys, you can find myriad resources on the Internet to help you in your search for a new home. Besides property listings, you can find out about specific communities, schools and mortgage options. With this wealth of information at your disposal, do you really need a real estate professional to represent you? Absolutely.

It's like having a guide. Think of it this way, when you go to an unfamiliar place, sure you could do a self-guided tour. However, your tour is much more rewarding and enriching when you have someone who is familiar with the location to guide you along because he or she has inside knowledge on the history, culture and stories that you may not have otherwise received.
The same can be said about sales professionals. Their role is more than someone to drive you around from property to property. They can be a great resource, especially to homebuyers relocating from other communities. He or she knows the local area including home values, taxes, utility costs, and school data, and may even be knowledgeable about resources pertaining to your special interests or needs. For instance, should you require help relocating an aging parent with you, your real estate professional may be able to direct you to local services or organizations for the elderly.
Get up to the date information. These days, changes to regulations for the real estate industry are ocurring quite frequently. A sales professional can familiarize you with the processes involved in buying a home, alert you to potential risks, help you determine how much house you can afford, explain alternative financing strategies, as well as provide tremendous moral support.

Your advocate. Another benefit is having a strong advocate during the negotiating process. Sales professionals can help you objectively evaluate an offer then work to negotiate a favorable contract. During the process, he or she will review the contract and obligations before you sign, explain how contingencies and release clauses work, and so on.
Avoid risk. And something easy to overlook is our familiarity with the complexity and risks inherent in the process. It is amazing how quickly a seemingly simple transaction can grow legally complex and risky. When complex questions arise, a sales professional can help you quickly locate an attorney or other licensed professionals whose services you may require, such as home inspectors, engineers, surveyors and lenders.
Single point of contact. As your single point of contact, a sales professional can manage the entire transaction including coordinating inspections, keeping in touch with the other real estate professionals, managing the documentation for the loan process, monitoring deadlines associated with contingencies, providing applicable paperwork, estimating closing costs, and helping prepare for a smooth and uneventful closing.

If you’re about to begin the process of buying or selling a home, consider involving a real estate professional. When the stakes are high, it’s comforting to have a specialist by your side.

Choosing the Right Community for You

If you are buying a home, one of the first things your real estate professional will do before taking you on home tours is interview you to determine the type of house you want such as a 2,000-square-foot four-bedroom, split-level with a formal dining room and two-car garage. But just as important is the type of community you want to live in. Knowing what your requirements are will help narrow your home search and save time.

Make a list. To expedite the house-hunting process, start by making a list of the dream home factors that are most important to you and your family’s lifestyle. Consider style, location, proximity to work and schools, yard size, children in the community, and of course, price.

Price and location generally are the key factors you’ll use to identify the communities that best suit you. If you are moving within the same city, you may want to start your community search by getting in your car and exploring. There are also resources on the Internet that let you compare communities.
Ask questions. You’ll want to ask yourself critical questions, such as: Do you dream of something quaint and charming that can only be found in an older area? Or, do you prefer everything new? Are you willing to sacrifice size and space for architectural detailing? What about drive and commute time to the office and schools? Will you forgo the number of bedrooms and a big yard for proximity to a lake or other recreational areas?

Consider schools. Whether you have children or not, buying a home in a community with good schools is important. It not only adds value to your property, but also is an attractive feature when and if you decide to sell. There are plenty of resources available to get information about schools within the communities you are considering. Various Internet sites offer school reports and profiles. They provide statistical data such as graduation rates, college-bound percentages, and standardized test scores. You can also learn about special programs the schools offer. In addition to these reports, many schools have their own Web sites you can peruse. And of course you can always talk to people in the area or take a tour of the school.

Additional factors you’ll want to consider during your community search are crime, recreational activities, proximity to shopping and restaurants, and other specific family needs.
Once you’ve narrowed your search to two or three communities that fit your price range and lifestyle, make comparisons of price and sales activity. Your real estate professional can help you determine which communities are most sales-worthy at present, and which are more likely to continue to be.

There are many factors involved in selecting the right community for you and your family. Discuss your options with your real estate professional. This will provide the information he or she needs to help you find property listings to tour. Remember, a targeted approach to house hunting is less time consuming, less expensive and more efficient.

Five Ways to Create Curb Appeal

A sale can be made or lost as a direct result of your home's curb appeal. When it comes to selling your Maryland home, the first impression is probably the most important impression. If the outside of the property doesn’t create interest or appear well-maintained, a buyer may choose to not even come inside the home. Here are five ways to create curb appeal.

Paint and polish. Maryland seasonal changes can wreck havoc on the exterior of a home. A fresh coat of paint breathes new life into a tired-looking home. If your home looks dull or suffers from peeling, cracked or chipped surfaces, a paint job is a great investment. Polish the doorknocker and mail slot on the front door, as well as any light fixtures by the entry. Re-condition your deck. Consider renting a power washer to clean dirt and mildew from the wood, and then apply an all-weather sealer or stain.

Manicure the grounds. Mow and edge the grass, and trim the trees and bushes. Also, clear away dead leaves and flowers, and mulch and weed the beds. Check to see that tree branches are not touching the home's roof or outer walls. Add some color to your landscape by planting annuals and placing planters of flowers in strategic spots. You can even spruce up the property by hanging flowering baskets. Add flowering plants in the back yard, too.

Make needed repairs. See if anything is unhinged, loose or just an eyesore. Fix everything including broken fencing, windows and screens. Make sure winter’s cold weather didn’t leave any gutters sagging or loose. Replace any missing shingles from the roof. Try the doorbell. Check stairs and railings. Test doors for squeaks and rusted hinges. Don't forget to take a critical look at the property at night. Make sure the lights work, and replace dim and burned-out bulbs. If you are unable to do the repairs yourself, hire reliable people who will do them for a reasonable price.

Unclutter. Tidy up the deck, patio and back yard. Rearrange the outdoor furniture to look inviting. Put away gardening tools and toys. Clean up the barbecue area. Eliminate any "evidence" of pets, and restrict them to the back yard when showing the home. Move extra vehicles from the view of passersby.

Clean. Clean the windows, inside and out, wash down the walks and driveway, and hose down the siding. Clean outdoor furniture and cushions. Check for oil spots on cement surfaces, especially the garage floor.

The old saying about making a good first impression couldn't be truer than when you are selling your home. Even the smallest enhancements can make a big difference in creating love at first sight for buyers.