Notice to Tenants: FIRE YOUR LANDLORD

By doing so you could begin building home-equity wealth. Once you have fired your landlord, one of the first items on your new to-do list will be to meet with a lender and start the process of securing the needed financing to buy your first home. The first part of that beginning the loan process will be to run your credit report. A credit report paints a picture of your account-payment history. But before going mortgage shopping, order your report from the three major credit-reporting agencies and correct any errors in it. Incorrect information that's negative can inflate your interest rate or disqualify you altogether from securing financing . With the loan process underway you will be advised what you can qualify for. This will be your guide to help you determine the amount of house you can comfortably afford.

Don't forget to keep in mind that in addition to principal and interest, you'll also be paying property taxes and insurance. You also need to budget for the additional funds you will need for maintenance and repairs. Before approving you for a loan, lenders will be computing your debt-to-income ratio-debt payments (excluding rent) divided by gross monthly income (before deductions). For instance, if you make $6,000 a month and pay $1200 toward your debt, your ratio is 20 percent ($1200/$6,000=0.20), which is considered very good. A higher ratio suggests a need to control spending or change your spending habits. Lenders also want to see your mortgage payment equal to no more than about 30 to 35 percent of your monthly gross income. They sometimes will approve a higher ratio but remember that stretching to far could make you feel house poor and that will be very uncomfortable or even stressful for a long time to come. When consulting with mortgage brokers or bankers, each one will have different loan products they can put you in but you are the one that will need to understand this well enough to shop for the best loans and terms. You can’t start to soon to get your financing in order.

Understanding the rates you pay and the differences in the rate could save you many thousands of dollars over the duration of the loan. For instance , if you could save $50 a month using one loan program vs another, that is $50 x 360 months of the typical 30 year loan. That's $8000. However, if you invested that $50.00 per month , not only do you save the $8000 but you could gain as much as $20,000 more. What if the savings was $100.00 a month or $200? This is part of the process of building wealth along with the earned equity and tax savings homeownership affords . The next consideration is to determine what the loan costs are. The lender will provide you a Good Faith Estimate of Closing Costs that will give you an idea of the lender's charges for loan origination, discount fees, credit report, appraisal, title insurance, document preparation, termite inspection and other costs. This will help you determine you how much out-of-pocket money you'll need to pay in addition to your down payment. Depending on the property and the motivation of the sellers, many times they may be willing to help with some of these costs. There is a limit though and a maximum allowed under the lender's guidelines.

Being a First Time Home Buyer there are a number of things to consider before actually buying your first home. Set out your criteria of needs and wants and make sure that with each of these criteria that you decide on, that you are being flexible enough not to pass up a property that may help you build your home equity faster. For example. If you set as part of your criteria that you want a 3 Bedroom house, consider that maybe you could live with 2 Bedrooms or even one bedroom with a bonus room. There will be a big price differences between these different criteria. Setting your parameters too high will limit your possibilities.

When the right property is found you will be writing an offer and also an earnest money check. Don’t forget to take your checkbook when writing an offer. The offer once negotiated and accepted is called the purchase contract . As with all contracts, this is a binding agreement and will have penalties if you do not live up to the terms of the agreement. I would strongly recommend that you pre-arrange legal guidance or counseling before signing on the dotted line. It is critical to make sure your interests are protected. Be sure to cover the what if’s. In future posts I will go through a typical contract step by step. Become familiar with it as soon as possible.

When purchasing your home, there will be strong advisories for you to get the property checked out carefully. You'll could save a bundle on unforeseen repairs if you hire a home inspector ( I always recommend a licensed contractor to do the inspection) who may uncover hidden problems like structural defects before you close on the property. Home inspection companies are OK but the inspectors may have limited knowledge and because building contractors are licensed, they are more able to get into recommending specific alterations to correct the things they will uncover. More to follow. Watch for "Fire Your Landlord" Part II.

A Real Difference... Full Service vrs Limited Service Model

I was called on a listing appointment that was to be very complicated. The owner of the property is a retired mother and the occupant of the property is the son as a tenant. The agreement the mother had with her son was that if he paid the mortgage, taxes and insurance he could live in the home with his wife. The mother lives in a retirement community and late last year received a default notice form the lender.

She was totally overwhelmed at the news and discovered to her dismay that her son ran had run into some financial difficulties and had not made mortgage payments for over 3 months. He was to embarrassed to tell his mother and because she remains on title and on the loan he was unaware foreclosure loomed. He thought of it as just being late on paying the rent. The mother brought the debt current and was then advised by her other children to just throw him out and sell the place.

That is where I came in. I went to look at the property and discovered that it had some  deferred maintenance and needed some cosmetic issues addressed before listing the property could take place. In fact some of the issues were already there when the mother purchased it several years ago. They were deemed insignificant at the time. About $10,000 worth. The mother doesn't want to risk the small amount she has in savings to live on to address the issues. Dilemma.

As to the required counseling involved and the way things are to be handled, I was reminded of the striking difference between the full service model of counseling and the way a limited service business model company provides it services.

To untangle the mess of the family and the property issues, it is going to take some expert care on behalf of the REALTOR and it could well be that this property will not even be listed for sale. Other ways of resolving some of the issues will involve other recommended professionals to assist the mother in protecting her assets and the son to be able to continue to live in the home. At least that is an option that was shared and both sides seem to think this would be the course to take before making a decision.

The Limited Service business model doubtfully has a capacity to counsel and understand the issues involved and provide the proper recommendations for the outside help that is going to needed to resolve the issues.  Even to the advising of the other legal and professionals that will be needed to untangle the mess.

In the Full Service business model, this is what we are called upon to do sometimes in the building of relationships and giving expert care. No pre-determined selling formula but real human interaction and counseling.  In the Limited Service business model, I would seriously doubt that such counseling is to be found within their business model.  There really is a difference. When I left the property, the gratitude that was expressed to me made it clear in my mind which business model was right for me.

A Memorial Day Tribute to Those that Gave All

Memorial Day is a most precious day for Reflection, Remembrance and Respect of those who gave all in a quest for to win against all tyranny. No Higher duty summons us on this day than to thank and honor our own brave and fallen few. Let each of us in our own way remember these brave souls that gave all in their belief that to do so would make a difference for each of us. Behind each of their names is a family, friends and a too short history of a cherished life given by God and delivered over to the service of country.

Tribute to those that Gave all!  Turn up your volume.

If the current tax cuts on Capital Gains expire, then What?

This question must surely be on the minds of many REALTORS that descended on Washington DC last week. With the advent of the new majority in Congress and their hopeful takeover of the White House, what are the general thoughts about the lower capital gains for investors and even the exemptions for the home owner's personal residences.

The REALTORS lobbied successfully a number of years ago for the $250,000/$500,000 exemption in gain on personal residences. But the folks now  running things might like to revert back to old system and tax away the deficit. The gains exemption in my view was the single biggest driving force to the markets we have enjoyed for a number of years. It created more homeownership and personal wealth in a shorter period of time than anything ever in the history of our country. Was that wrong? Would it have been better that less people rather than more captured the American Dream. Because of some unscrupulous lending practices though, real estate ownership is getting the wrap with  a lot of bad press and discouraging many newcomers away from what they should be striving for.

The future looks very uncertain in regards to all the gains of the past 5 or 6 years. If Congress changes their mind about this and decides that new taxation ( eliminating current tax cuts) is way to fund all the deficit and entitlements we REALTORS could experience pain way beyond what we could even dream.  That coupled with the new business models makes our future less than clear. What we need is a united voice to dispel the rumors, focus on the consumers and improve our standings in the community. Instead of being quiet, we may need to raise our voices to defend that which we have always espoused. Home Ownership.

The Land Where Dreams Come True !

 I just celebrated another one of those Birthdays. They just come too fast and the time in between seems to get shorter and shorter.

My Best friend as a way to honor my Birthday, took me to a place where the little boy in me just finds its way to the surface and before long, I have forgotten what age I am and thinking more about the magic of the day.

One of the wonderful things about being alive is that you can sometimes forget about your career or other important things like "not eating junk food" and just let the day unfold and throw abandon to the wind.

When I am at DisneyLand, I get caught up in being a kid again and rushing about to stand in line so I can ride the thrill rides. Well, I do laugh a lot, I am not sure how thrilling they are however. Like the silent thoughts of gee, I hope I don't have heart attack or something. How embarrassing that would be. I reassure myself because I have never seen medics around the place so it must be OK. Back to the thrill rides. For about what seems 45 seconds of the ride, we stand in line for 30 or 40 minutes. That's a trade off that in of itself defies logic. This must be the place for dreams because I can't imagine doing that in my every day life, even for food.

So there I was in the land of dreams and the that little boy in me with no cares at all, felt all the very same things I felt when I really was a little boy. Do you supose  that when Walt Disney dreamed of this place, he had a little help from GOD? It occurs to me he must have.

Here is a little of what I took in, in the Land Where Dreams Come True. I hope you enjoy it as much as I did!

Click here to see the Photo Tour

This little extra consideration when preparing a home....A Welcome Letter

Once the seller has prepared the property for market, there is still one very important thing you can do that will make a big difference in the the co-operating agents' and their Buyers experience of the property.

I prepare a Welcome Letter in larger than normal print size that covers some of the important features in or about the home as well as invites the Buyer's ( As Guests) to enjoy their home and provides a few extra things that will be welcome.

This Welcome Letter is put on a cleared table or console at the entry so it is not missed. The letter is mounted on a stand-up card backing next to the property Brochure.

This table is important as the Agent and Guests (as the Buyers will be referred to) are invited to lay keys, notebooks, papers on it while they tour the home. If the home is a " Remove shoes " residence,  shoe covers are also there along with a chair sitting along side the table to assist the Agent and the guests be comfortable.

The Letter is all important because it covers so many really important things. It invites the Guests and Agent to use the Guest Facilities if needed and to find beverages ( iced tee, colas and water) in the refrigerator. On the table is also placed a bowl of candies ( individually wrapped chocolates or mints) for the Sellers guests. Comment cards and a nice pen are also placed there inviting comments on the home. Many of these things when not spoken about can create awkward moments. By giving permission in advance the Guests and Agent always feel more comfortable.

This letter also has special instructions about details in the house that the Seller wants to remind the REALTOR  or Guests about. An example of that is to leave the lights and music on, to be careful on the steps ( up and down ) and lock all exit doors, turn off ceiling fans, etc.

In the Powder Room or Guest Bath , whichever one is to be used, special hand towels and soaps are provided with a note that they are there for the guests. This clears up the mystery of wondering if these items are OK to use.

If there are items that don't convey such as a favorite light fixture or heirloom , they can be pointed out.

Throughout the home, special cards are attached to items that might be conveyed, such as built-in bookcases, vanities , etc.

On the inside of the front Entrance Door. a THANK YOU for visiting the seller's home, signed in the owners handwriting. This personalized way of directing the showing makes the Agent and Guests feel welcome. It also goes a long way to  make the Guests and Agent feel welcome and respected.

The Comment Cards title is " YOUR COMMENTS are WELCOME and APPRECIATED".

Please Remove Your Shoes

We have all seen these notes from time to time at homes that we show our Buyers. I appreciate that wanting to keep the traffic associated with viewing home and the dirt  tracked in to a minimum. But is this the best way to accomplish that?. Posting a note or an advisory at the front door to "Please remove your shoes" ?

I could go on and on about this but when I see agents posting things like this, it shows they are just not very understanding of the some of the problems associated with this.

Is every Buyer a young couple that can just kick off their shoes and slip them back on? What about the older folks that just can't do that? How about people really dressed up. They may feel more than a bit awkward about this practice.

Are bare feet or stocking feet better than some other alternative?  Are Buyers and agents who have never been in the owners home before aware of all the potential pitfalls. A staircase. chipped tiles, uneven floors, carpet tack striping with the possibility of nails protruding especially around thresholds? How about looking at the back yard or patio? Does a homeowner really expect that someone is safe outside in their yard barefooted or especially with socks on? This isn't the same as inviting friends and guests to slip off their shows when visiting. They are usually coming in and sitting down, not investigating every room or aspect of the house, yard and garage.

Why would a listing agent not prepare better for this?  If there is a cultural reason involved, that is another issue that needs to be dealt with. The sellers need to appreciate that they are selling their home and chances are the Buyers are not of the same culture. They may need to relax this rule at least as far as the viewing public is concerned. I try to get them to accept the shoe covers as a compromise while understanding completely that removing the shoes may be about the showing of respect for the home. I lighten the subject reminding them that many live differently with differing cultures and priorities. If that doesn't work then put that information into the listing remarks. Explaining the circumstances at least allows the public to go or not go to this property if the cultural practice is one that they can not accommodate.

Booties or shoe covers are easily obtainable and they are so inexpensive. I advise my sellers that  if your home is a " Shoes Off" environment, I respect that but I will provide an alternative for those that may have difficulty dealing with it. I have gained many points from sellers for thinking though carefully just these types of scenarios and realizing there are answers for most of the awkwardness created in selling a home. 

And one more important thing: If "Shoes Off" or shoe covers are part of the showing instructions, how about providing a place to sit. This is also a good idea for safety concern. Leaning on walls or doors for balance is not very good or reliable. Provide a chair or bench where all this is to take place.

Have inflated appraisals fueled the recent increase in forclosures?

According to columnist Kenneth Harnet, a real estate columnist with the Washington Post, he feels strongly in the affirmative along with representatives of the largest trade organizations representing appraisers.

The trade groups are seeking help from the Federal Financial Regulators to crack down on the lenders and loan officers who pressure appraisers to raise the valuations.

Led by the Appraisal Institute, the group representatives when speaking to Federal Regulators, told them that sub-prime lenders were guilty of "systemic inattention"to the accuracy and the sources of the valuations used to back the loans being funded.

Examples given included buying loans without regard to the qualifications and track records of the appraisers, failing to require "Fire Walls" separating commissioned loan officers from the appraiser and claims by appraisers that they were coerced, threatened and even failed to receive payment for non favorable opinions of value.

The increase in loan scams and outright fraud were cited with detailed descriptions on how these cash-out schemes were orchestrated to be successful.

The inflated appraisals were required in all these cash-out schemes and after the deal was done, with a few months, the property is headed for foreclosure. Is it any wonder their is an increase in foreclosures. The represent the intended consequences of some really fraudulent schemes. In all the figures of the increase in foreclosures of properties with sub-prime loans in place, this aspect has not been as heavily focused on as it should be.

This morning in my garden I found a delightful surprise!

Some of what I see everyday.

I get up at the crack of dawn and the first thing I do is head outside to tend to the garden, Oh, not without a cup of coffee in hand but it is first on my agenda, everyday of the week. It centers me and makes me grateful each day to start that day on the right note. Living in California, we are blessed to have weather that allows me to have flowers year around. And I take full advantage. My back and side areas are so full of flowers, it looks a bit like I might have have overdone it. But a friend of mine in the entertainment industry that I worked for used to say to me " too much of a good thing is wonderful".

This morning as I look at the new day lilies in hopes of seeing the first new buds pop, there was a great deal of activity in the larger flower beds. Gold Finches and many other small birds were taking advantage of  the water trapped on the leaves. I counted 20 or so. They first started to flutter off but then as I stayed still, they all started coming back, some of them close enough to see them almost smile. OK, birds probably don't smile but I surely did. They made me feel glad to be there and helped me welcome another beautiful day.

So what's all this have to do with real estate? Absolutely nothing!. Isn't that great.

Paul Harvey and "now.... the Rest of the Story"

One of my favorite radio commentators is Paul Harvey. Paul is a non sensationalist journalist, a gentleman and a voice that just about every one recognizes and loves. I wish I could locate his broadcasts locally and get a daily dose of his inspiration. How wonderful he is at what he does. Always an interesting story and then he would say "and now the Rest of the Story" with its wonderful message. I am hopeful I can learn to write more like he sounds. Not always of course as it may be too predictable for blogging. That might be especially true for real estate and the information I think is needed to help my clients and others that might be interested on my take of the industry. Always seeking ways to improve the information needed for real estate and our relationships, the latest way, blogging is proving to be very interesting indeed. Paul Harvey came to mind yesterday when I was re-reading some of my last blogs. Thankfully he did, as the thought of him brings a definite smile in the heart and bit more care and elegance in my style. Some people in life seek his level of excellence and I am grateful to be included on that list. Paul sets a pretty high standard though but one we all should try a bit more to emulate. Care, compassion and grace are indeed  wonderful things. Let's revere them a bit more in our Business and Industries and especially in our Homes and Schools. No generation should ever be impervious to them. But each of us must be a standard, if we expect others to emulate us. 

For those of you who listen to Paul Harvey or have at least heard him a few times, I am sure the mention of his name brings a warm and knowing smile. So let's have more of his special and graceful inspiration. This world today needs it....and now my friends, " you have heard the Rest of the My Story". Good Day!

The Secret is Out.....

The Secret is Out!  Why the consumers feel victim to the sub-prime lending scandal. ( It is a scandal isn't it?-I do not want to cause trouble here with my choice of words)

The consumers that were victims couldn't understand their Good Faith Estimate and didn't understand that the rates would change and didn't see it spelled out anywhere the consequences of what the accelerated costs of the loan were going to be when the rates went up. Whew! That was a long sentence. I read a report that these unknowing consumers could have been saved from their their cruel and unknowing dilemma if only they had be given a form that spelled out clearly all the terms of loan. No such form exists today-well, at least not yet. And a one page disclosure may be a bit optimistic too. Read on... it gets a lot better.

For decades now, government and industry alike have been calling for simplified rules governing the mortgage industry lending process. Eleven years ago Congress asked the Federal Reserve Board and HUD to come up with as they referred to it... a better mouse trap. ( I personally don't care for their choice of words but supposedly those were the words used to describe what they were looking for)The Federal Reserve Board and HUD couldn't  agree so they turned their conflicting ideas  back to the lawmakers. Congress never acted. For many of us involved with the state associations and the National Association of REALTORS, we lived through all this arguing and failed proposal after proposal.

In the Clinton Administration, Andrew Cuomo tired. Nothing again. In the Bush's first 4 years, his housing secretary tried. Nothing. Now the current Secretary has picked up the gauntlet and you guessed it, nothing so far. The biggest problem is that the industry itself can not come to terms with exactly how to move forward on the consumer protection side of the issue.

The sub-prime conundrum has generated new calls for the good faith estimate and the settlement statement to more nearly match. Preferably in a one page concise document. Not to be...that is until one man working alone come up with a away to design the form that reflects the best of all efforts. The one page is actually three but the last two pages are a glossary of terms that make the first page understandable. The genius is Alex Pollock a research fellow with American Enterprise Institute. With years of experience in the banking industry, Pollock knew what was needed and has proceeded to create it.

Among the highlights of Pollacks one pager:

• Loan Amount
• Loan to value ratio
• term and maturity date
• start rate and for how long, if and when a higher rate will kick in
• maximum possible rate
• monthly payment as a % of income ( including taxes and insurance at the beginning and at the fully indexed rate
• prepayment fees
• balloon payments
• amortization schedule ( periodically)

With a boldface type stating: DO NOT SIGN THIS IF YOU DON'T UNDERSTAND IT !

Pollack has not shown his work to HUD, the FTC or Congress as yet. Only time will tell if anything comes of all his hard work. At least we now know why the consumers feel victims that have been so put upon by the Lending Industry. If you buy into the premise that the consumer just didn't know, didn't understand, well, anything is possible I guess, we have the secret of why so many feel they are victims. The arguments though have been around a lot longer then the sub-prime issue causing so many defaults these days. But at least getting an understanding of how the system could be improved is educational and probably a good thing to know. The secret is out indeed.......

Holding Title of Real Estate in California

There are now 5 common ways to hold title in California when more than one person is holding title. In July of 2001 the 5th way was made law and added to the choice. Although it is strongly advised for anyone purchasing property in California to seek legal and tax guidance before deciding, here are 5 ways of holding title and the general features of each. Sole Ownership( simplest form of holding title ), Sole and Separate and Titles held in Trust and other ways of holding title will not be presented here.

The common ways  to hold title are:                                  

1. Tenants in Common
2. Joint Tenants
3. Community Property
4. Community Property with Right of Survivorship
5. Partnerships

The general features of each one:

Tenants in Common

• simple form of holding title
• equal or unequal interests
• each owner has separate title to undivided interests
• individual interest can be conveyed
• interest may be willed

Joint Tenants

• ownership may exist with multiple owners
• interests are equal
• individual owners do not have separate title
• individual interest may be be conveyed but doing so breaks the Joint Tenancy
• on death, joint tenant interest conveys to remaining joint tenants ( Right of Survivorship)

Community Property

• applies only to husband and wife on property conveyed after marriage
• interests are equal
• spousal interests may not be conveyed separately
• on death 1/2 of property passes by will
• probate required
• basis stepped up to fair market value

Community Property with Right of Survivorship

• Effective in California July 1. 2001
• ownership interests equal
• spousal interest passes automatically to surviving spouse
• applicable to conveyances after July 1, 2001
• title held as Community Property may be re-conveyed by married couple to change form of holding title.

Partnerships

• association of two or more individuals
• requires formal written partnership agreement to govern rights and responsibilities
• title held in name of partnership
• no conveyance by one partner without written consent of all the other partners

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What makes for a winning marketing plan and who is in control of it?

It is time to sell the old place and you are interviewing local REALTORS hoping to hear that your home will fetch a "pie in the sky"  price.

Doubtful that will happen but let's take a look at why you might have that expectation.

The agent wants the listing and most will tell you the market today is more normal ( level pricing with lower appreciation). You will be informed that prices have adjusted downward from the lofty exaggerated prices of a couple of years ago. The agent will also show and explain their great marketing plan and as you will notice, they will be doing a lot of advertising and ultimately have to accept that too high of price you forced on them. So the process begins.

1st weeks open house, ads in the newspaper, brochure box on the sign post, nice property brochure and the end of the first week results, No offers. The agent said it will take a while, so the request for patience is to be expected.

What's wrong with this picture? Perhaps in your mind, nothing. In my mind, it is very wrong and it all started with the marketing plan the agent presented to you that you have to great of an influence on. Setting the Price.

The Just Listed mailing will be sent to families that own a home in the neighborhood just like yours. Do you honestly believe that the neighbors want two homes or will sell theirs to buy yours? Do you believe that they have friends that want to live next door or down the street> Doubtful. Brokerages have been training their agents to send out the Just Listed announcements for years. Why?  In hopes  that neighbors will see that you selected firm if a neighbor is going to sell soon that they should select their firm as well. Great for the agent and company, not that beneficial for you the seller.

The ad in the newspaper was not put there to sell your home. It is there to get the phone to ring and hopefully attract a qualified buyer or seller prospect ( not to sell your home however).

The property brochure box will be full for the neighborhood kids to take and throw all over the place or to attract drive bys from looky loos will likely not sell your home either. If they are serious buyers they are already working with an agent and should not be discovering your home for the first time from the flyer. If the home is within the right search parameters for the buyer, they should have already received the information on the property. The property brochure is useful but likely isn't going to sell the property. I am not going to dissect all the elements of a possible marketing plan and counter each one. The point being that most things done in a marketing plan are  useful for something or someone but can they create the desired result of selling your home? Not in and of themselves, no.

So exactly what is it in the agents marketing plan that is going to "sell" your home? For starters being in the MLS and generating a strong local market and Internet presence for your home is good. Exposing the home to the likely buyers is excellent as well. The devil is in the details but it all starts and ends with price to value. This is not easy for most homeowners to understand but it is one of the most important considerations in your selection of who should be marketing the home in the first place. 

If your REALTOR makes it crystal clear to you that 90% of any good marketing plan is setting the correct price, then you may be on to something. If the agent told you that since most of the qualified buyers for your home are already under contract or already working with an agent, and they tell you that 50% of the actual marketing plan is directed to the agents who work with the Buyers in the greater area that your home is in, you are hearing the beginnings of a great plan. If the agent has as part of the marketing plan an excellent Internet Marketing presence, hang on to that agent because your home is most likely going to be sold soon. This is, with the the following caveat. 

The CMA prepared for you and used to reinforce the entire marketing plan is a bit like looking in a rear view mirror. It doesn't tell you the future of the market but rather where the market has been. The market is ever changing with strong economic influences from sources that have much to do directly or indirectly with what your home might be worth at any given point in time. An easy example to understand that principle would be the cost of money. You don't control that cost but it influences the Buyer's willingness to purchase. If your agent helped you comprehend what the accurate current market trend is and if it happens that it be currently be Buyers Market, and you priced your home too high-big mistake! A huge mistake in fact that will take some real effort to recover from. Many sellers of course won't recover.

If you priced your home in a range where comparables have been that have been more upgraded than yours, that is another big mistake. Buyers tend to search for properties at the top end of their qualified price range. They do not expect to pay top dollar and get less. Your home will be passed over and over. Buyers that would be suitable for your home at the correct price then would just as likely not ever see it. 

This miscalculation, renders the usefulness of the marketing plan out of sync with the market and most everything done or planned marketing wise will not yield the expected results. Selling your home for the most money and in the fastest time possible will face many obstacles that should not be there.

As a seller you must clearly understand that you are partners with the REALTOR you choose and your duty is the most difficult. Understanding that you will not be the exception to the pricing rule, no matter how many nice things you did to stage the property with strenghten your position in the market. If the property is priced wrong for the current market, you are in for some very disappointing results.

Is it your fault then that the agent you hired took your listing overpriced?  That depends on you. Was it your main real consideration in the interview process and further did you accept a marketing plan that was based on the wrong ( rear view mirror) criteria. If you want professional results and have hired the professional, then you should relinquish your unrealistic hold on what you think your home is worth and allow the REALTOR to market your home correctly ( at the correct market value) to where the Buyers are and then you can enjoy the results of having contributed greatly ( pricing the home correctly in the first place) to the winning marketing plan.

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Market Slowdown Forces Sale of...

Once coveted parcels of land purchased for new homes and subdivisions are being sold off at record pace. Home Builders under contract to purchase land are passing on deals already made and are often forfeiting the huge deposits in the millions of dollars on many of them.

The Home Builders are not only are walking away from options to purchase the lots but are also seeking delays in closing the sales on the land already underway. Publicly traded Home Builders are writing off huge options that were purchased for future development.

Softening demand for some residential land is not surprising given what's happening in the housing market slowdown. Today, home builders are focused on slashing their inventories of homes and land, certainly not purchasing more land.

In some areas of the country land is very scarce and the land holders there are hanging on awaiting stabilization of the housing markets to catch the next upward tide.

What's The Difference Between a Townhome and a Condominium

Amazing Photos of An Artists Work- Handpainting

An Italian artist by the name of Guido Daniele was commissioned by an ad company to create body paintings of animals. My client found received these and wanted to share them. I thought you might like to see them as well. The are many different ones but I have only included a few here. This artist is extraordinarily talented and his works are unique.

This is my first effort on ActiveRain to add photos to my blogs. I am always taking pictures and will over time develop the skill to add specific photos to my posts that will better illustrate some of my comments, so be watching for them.

So take a break from business as unusual and enjoy something a bit different. I hope you enjoy these art works as much as I have.

Seller Stay Put, Remodels Townhome and Today Was Open House

Last week I was called and invited to my Sellers' House Warming to day for his remodel. A number of months ago we discussed that he could not get what he had hoped for his current home and the prices on a replacement had not dropped low  enough so he decided that it was time to re-fashion the current home to give it a brand new look. It looks totally new from top to bottom, Nothing seemed original other than the original walls and the windows placement.

They did go a little over budget but he is so pleased and the place looks so totally wonderful. Stupid me, I didn't even think to take the camera so I could add some pictures on this post. I will add them the next time I out near his place. 

The all stainless appliance Kitchen with  mellow cherry cabinet finish was gorgeous. The baths are gorgeous and I am so envious for all the creative use of stone. Every detail was better than I even imagined.

One of the neighbors said, what he liked most about me was that I seem to think more about my clients than earning a commission. He said, if he had to sell, he was not sure who he would have used. Now, he says, You are the one. Of course other neighbors joined in and one neighbor I had referred to in another post said they think of me as the community ambassador. That might be a new term I could use in marketing there. Maybe time to rethink about doing another newsletter. I haven't done one in years because it always took me to long to write it. With blogging now so important, I could use articles I write here on ActiveRain and produce a pretty good newsletter.

This day was another one of those great days that make all the work we do so worth while. Yes, I didn't sell anything but I think I cemented some realy great relationships today! A Great Day!

New Personal Blog Site Coming

I have engaged  Jim Cronin, from the RealEstateTomato ( an active ActiveRain participant ) to design a custom blog site for me . I have been in contact with Paula Henry (another active blogger on ActiveRain) that Jim just finished a site for. It is really beautiful. Mine is a bit different and unique and it is progressing along nicely. The more I learn about the spiders and crawlers of search engines the more I am convinced that this is the way to go.

When the site is up, I will also begin training classes to get a better handle on how to blog and what works best and what doesn't. There are so many issues in the industry I am interested in pursuing and I am most interested in the localism feature of ActiveRain.

I posted a bog on ActiveRain about the difference between a townhome and condominium. I didn't think to much more about it but I noticed Active Rain gave me unexplained bonus points for the post. Since I am not points oriented (meaning they are not why I am on here), I was flattered that maybe they thought it was a good post. I made that conclusion certainly not based on empirical data. Just a hunch.

According to our state professional technology magazine, Blogging is the way to stay vital with our Internet presence and I for one am so grateful to ActiveRain for making it possible for me to have a bit of a head-start. I have met some of the most wonderful people in our industry and look to those relationship as they continue to grow and enhance me as a person. Thanks to all you for always being so nice and helpful in your comments to me.

The Basics of a Structured Sale and Why You Should Know About It

The Structured Sale found within IRS Code Section 453 can be a useful financial planning strategy for sellers of appreciated residential real estate holdings acquired through a 1031 Exchange. This is an ideally suited tax deferral vehicle for baby boomers and retirees that want to cash out but also wants to defer the big tax bite.  A Structured Sale combines all of the tax-deferral benefits associated with a traditional Installment Sale, while providing guaranteed interest-bearing income payments and lump-sum distributions over a period of time in the form of an annuity.

The financial advantage of a Structured Sale when compared to an immediately taxable sale is generated from the ability to defer capital gains taxes to some point in the future, thereby leaving more funds available to work ( earning a guaranteed interest rate ) on behalf of the seller over time.

This Structured Sale as a vehicle is particularly beneficial to those individuals who are ready to "cash out" of the appreciated asset, such as a business or of real property, in preparation for converting that asset into income for retirement and/or estate planning purposes. Because of this guaranteed income, it may fit their need for a consistent, stable, and predictable income.  This idea is especially useful as it might apply to circumstances such as transitioning a parent or themselves into retirement-oriented or even "assisted" living situations. Real Estate Investors are typically capable of creating larger incomes to meet their needs by deferring the capital gains taxes that would otherwise be 100% due in the year of the taxable sale, and can do so on a guaranteed basis with no future interest rate or investment volatility risk that would associated in the Installment Sale.

As with all tax and legal issues, it is essential that the Investor seek the advice of knowledgeable tax and legal authorities before making decisions affecting their investments.

Setting the Parameters for Buying a New Home

When discussing with your agent what kind of home you want and what areas you will consider, be sure not to be so rigid as to miss some of the great possibilities in the market.

Getting Pre-approved for your home loan is one of the first things on your list. Knowing in advance how much home payments will be ( be sure to factor in the property taxes, insurance and a reserve for upkeep ) for the home price range within your means will help you stay realistic in your search.

If you are a First Time Home Buyer this is essential.

If you are a Move Up Buyer, when comparing your current costs to your projected  new home costs, be sure to also consider costs associated with re-decorating or landscaping, the added maintenance, increase in property taxes, utilities , etc. Once you have worked out your budget be sure to share this with your agent and they can help you adjust your budget to achieve your goals. The agent may be able to find ways to offset some of your new projected costs that might even provide you with a better fit in the new home selection. Sellers also may be able to help offset some of these with credits that will make their home a better fit overall