Archives

May 2008

Comparison shopping

Sometimes shopping online can be as stressful as standing in line at a store. Comparative online shopping engines allow you to search for the product you need while giving you competitive pricing and product reviews. Below are some helpful tips and websites that can make your online shopping experience a happy one.

Research
There are many websites that offer product information and comparisons. Prior to purchasing a new computer, camera, computer software or even a barbeque grill, look at a comparison shopping engine that shows product specifications, attributes and prices. Find reviews, product rankings, as well as positive and negative feedback from consumers. Read forums and buying guides to get the latest professional and consumer advice on products. Everyone has a different opinion, so try to stay focused on the qualities that are most important to you.

Many popular shopping websites allow you to view product demos, ratings, comparisons and information on new and updated products.
Visit: www.cnet.com, www.bizrate.com, www.internetshopper.com, www.epinions.com

Returns, Warranties and Product Guarantees
Once you have found the best product for the best price, check the return and warranty policies. Though many online stores offer 30-day money back guarantees, return policies can vary. Also look to ratings for online stores to get some insight on their customer service and if they have received any negative feedback. Be sure to keep your receipt in case of product failure or defect.

5:48 PM - May. 30, 2008 - comments {0} - post comment

How lowered interest rates affect mortgage rates

The Federal Reserve has been lowering rates to bail out the economy. Does this mean that that mortgage rates will fall?  Here's how Tim Harris and Julie Harris, the founders of Harris Real Estate University see it.

In some cases yes, in most cases no...read on.

Lets start with the 30-year fixed rate mortgage. The 30-year fixed rate mortgage is not tied to short-term treasuries. Fixed mortgage rates are tied to long-term bond yields that move based on the outlook for the economy and inflation. True, even as the Fed has lowered rates, the 30-year fixed has come down, but that's because of the outlook for slower economic growth in the months ahead. While the decline in treasury yields has helped push mortgage rates lower, the decline in long term rates hasn't been in lockstep thanks to the fact that these mortgages are securitized and sold on the global market. Investors now demand a higher risk premium on these mortgages due to higher delinquencies and foreclosures.

Next lets take a look at 7 and 5-1 Adjustable Rate Mortgages (ARMs) Yes, this is good news if your 5-year (or 7 year) ARM is pegged to a treasury index.  So if you're facing a reset on, say, a $200,000 loan, you're now getting a payment increase of about $150 a month, as opposed to $370 a month, which you would have had before the Fed started cutting rates.

Do the Fed Rate Drops Help  Sub-Prime mortgage Holders?

 Nope. Unfortunately if you have a sub-prime ARM it is more than likely pegged to LIBOR, which has moved in the opposite direction. Because of the liquidity issues in global financial markets, LIBOR rates have actually increased at the same time that treasury and other benchmark yields have been declining, so the Fed lowering rates today would not help too many sub-prime mortgage holders.

How are Home Equity Lines of Credit Effected?

How about my Home Equity Line of Credit (HELOC): Yes, if you have that home equity line of credit that you used to renovate your bathroom/kitchen recently, then when the Fed lowers rates, your rate comes down as well. That’s because HELOCs are predominantly pegged to the prime rate, which moves in step with the Federal Reserve.

5:33 PM - May. 28, 2008 - comments {0} - post comment

Is your home "virtual tour" ready?

“Realtors® have experience in staging virtual tours and can offer you tips to attract buyers,” said Virginia “Ginger” Downs, CEO of the 15,000-member Chicago Association of Realtors. “By following a few simple guidelines, you can make the changes necessary to help your home shine above the rest.”

Virtual tours show buyers a 360-degree view of the interior of a home and allow them to narrow their home search conveniently from their personal computer. Since potential buyers will be sorting through hundreds of photos and virtual tours throughout this process, it is important to understand that your home looks different through the lens of a camera than in person.

Just as you would prepare for an open house, prepare for your virtual tour shoot by removing clutter. Move personal belongings out of sight or use this as an opportunity to donate or throw away items that you no longer use. The goal is to maximize the space of your home and depersonalize it enough to allow potential buyers to imagine themselves living there.

Here are some tips to cut down the clutter:

- Remove excess furniture to make rooms look larger.
- Clear off the kitchen counter and hide everyday items, such as kitchen utensils, toasters, hand soap and magnets on the fridge.
- Store children’s toys, bicycles, gardening tools and other clutter out of sight.
- Place toiletries and cleaning products in cabinets or closets. Most virtual tours will only photograph the major rooms in your home.
- Take family photos off of walls and shelves while the home is being shown.
- Recycle old magazines and newspapers that take up extra space throughout the home.

“Realtors have photographed numerous virtual tours, and can act as sort of a producer for the shoot,” said Ginger Downs. “For example, think about the elements of your home that attracted you to it in the first place. Maybe it was the high ceilings or historic features? Work with your Realtor to ensure that the virtual tour really embodies the spirit of your home and shows off its finest characteristics.”

The next step is to give your home a good, thorough cleaning. Since cameras often capture more than the eye can see, it is important to spend some time cleaning your home from top to bottom. Areas that are often overlooked during the cleaning process include windows and stainless steel appliances. Be sure to keep them streak free and clean to ensure the best photo.

Another cheap way to prepare your home for buyers is to brighten it up by replacing old or dim light bulbs. Consider using a higher wattage light bulb in rooms or areas that don’t get direct sunlight. You can also add a brightly-colored throw or vase to lighten up a space that has dark flooring or furniture.

Some other tips to consider for the virtual tour include:
- Take your own digital photographs to see how each room looks on camera.
- Get layout and style ideas from home and design magazines.
- Don’t forget about ceilings and floors. Most virtual tours today show all angles.
- Limit seasonal decorations.
- If exterior photos are included, park vehicles elsewhere and make sure your lawn is freshly mowed and garbage cans are out of sight.

12:53 PM - May. 26, 2008 - comments {0} - post comment

Time to replace the smoke detector

Having a smoke detector cuts your chance of dying in a house fire by nearly in half. According to the National Fire Protection Association (NFPA) in three of every 10 reported fires in homes equipped with smoke alarms, the devices did not work. Households with non-working smoke detectors now outnumber those with no smoke detectors. What good are smoke detectors that don't work? Did you know that you should replace your smoke detector after its ten years old? Recent studies have show that older detectors are slower to react to fires. Older smoke detectors are also estimated to have a 30% probability of failure within the first 10 years. Newer smoke detectors do better, but should be replaced after 10 years. Just pushing the test button is no guarantee that an older smoke detector is 100% functional as the test button just ensures the battery sounds the warning horn.

Today several different types of smoke detectors can be purchased. Once one had to decided which type of sensor they want in their smoke detector: ionization or photocell. Today, dual sensor detectors are available for little more than a single sensor model. Smoke detectors can also be found with automatic lights, combination smoke and carbon monoxide detector and detectors for deaf or hearing impaired.

Upgrading your smoke detectors is easy and inexpensive. You can purchase highly effective dual sensor smoke detectors for under $30.

12:40 PM - May. 24, 2008 - comments {1} - post comment

Survey says - what is America's favorite book?

These are the results of a nationwide Harris Poll of 2,513 U.S. adults surveyed online by Harris Interactive® between March 11 and 18, 2008.

The next five start off with Dan Brown’s The Da Vinci Code, followed by To Kill a Mockingbird. Number 7 is another Dan Brown novel, the Robert Langdon prequel Angels and Demons, followed by Ayn Rand’s Atlas Shrugged at number nine. Finishing off the top 10 favorite books is J.D. Salinger’s Catcher in the Rye.

The Second Favorite Book among Different Groups

While The Bible is number one among each of the different demographic groups, there is a large difference in the number two favorite book. For men, that belongs to Lord of the Rings while women cite Gone with the Wind as their number two. There is also a generational divide. For Echo Boomers (those aged 18-31) their second favorite is the Harry Potter series while Generation X (those aged 32-43) is split between The Stand and Angels and Demons. Baby Boomers (those aged 44-62) and Matures (those aged 63 and older) think alike and both cite Gone with the Wind.

While it’s not surprising that Gone with the Wind is the second favorite book in the South, it’s also number two in the Midwest. Easterners are more partial to the Lord of the Rings series and Westerners cite The Stand as their second favorite book. Whites and Hispanics also say Gone with the Wind is their second favorite while African Americans say it is Angels and Demons. Educational levels have the largest differences. Those with high school or less education cite Gone with the Wind as their second favorite book of all time while Americans with some college education say it is The Stand. College graduates go to Lord of the Rings and those with a post graduate education are tied as both Lord of the Rings and To Kill a Mockingbird come in number two for them.

Finally, they may not agree on candidates, but one thing that brings together partisans is their favorite book. For Republicans, Democrats and Independents, the top two books are the same - The Bible followed by Gone with the Wind.

12:35 PM - May. 22, 2008 - comments {0} - post comment

Bad economic times = bargains!

Marshall Loeb and the battle-scarred veterans of Consumer Reports’ money team suggest seven possible buying opportunities that consumers with cash-and the guts to spend it-may find.

Homes. Home prices are already down in many parts of the U.S. Where they go from here is anybody’s guess, but few expect them to rise at a steep pace anytime soon. So if you’re in the market for a home, now could be a good time to start looking and get a baseline feel for the market _ even if you decide to hold off buying for a while.

Mortgages. Interest rates are already relatively low, averaging about 5.5% for a 30-year fixed-rate mortgage. Credit standards have been tightening, though, so expect higher hurdles in getting the very best rates.

Stocks. Some are sure to become bargains, but unless you’re a stellar stock picker, consider a no-load stock index fund and hope to benefit from an overall rise in the market. Keep in mind that stock prices will often start upward well before a recession ends, as investors look ahead to better times.

Credit cards. People with good credit scores should have a golden opportunity to negotiate for lower rates. Issuers will want to hold onto creditworthy customers more than ever.

EBay stuff. People eager to raise cash may be auctioning off knickknacks and whatnots in record numbers. So that Pee-wee Herman doll or first edition of Proust you’ve long wanted could be yours for the clicking.

Home remodeling. Lower demand should mean more room to bargain and, possibly, less wait to get the work started. If you need to finance your home improvement, you might also find favorable borrowing terms if your credit score is high.

Travel. Our travel expert says to expect fare cuts from the airlines, but beware of the carrier going bankrupt before you can use your ticket. Hotels and rental cars should see cuts too.

One final tip: if it’s something you can put off until the economic clouds clear (cosmetic dentistry versus an aching tooth, for example), demand should drop and prices along with it. And it rarely hurts to haggle-even in the best of times.

12:23 PM - May. 20, 2008 - comments {0} - post comment

Don't be afraid to file a property tax appeal

Property taxes seem to jump up year after year. Unfortunately, we've become so accustomed to rising taxes that it's no longer a surprise. But here's something that may surprise you. Did you know that over the last eight years, property taxes have actually outpaced even inflation? Those rising taxes - combined with the recent plateau in home values in some areas - mean you may be paying more than your fair share.

In fact, the National Taxpayers Union estimated that as many as 60% of home values were assessed too high, resulting in an incorrectly larger property tax bill.

Based on recent market activity and the rising property taxes across the country, there's a chance you may be in the group of people paying too much. In fact, homeowners in declining markets are receiving solicitations from companies that charge up to $250 to help lower property taxes. But with the steps below, you can work with your local County Assessor to lower property taxes for free...and save yourself the $250!

The good news: it's easy.

First, contact your local tax assessor's office and ask for someone in the reassessment area. Find out when appeals are heard, and how the process for submitting a property tax appeal works.

Additionally, ask for a copy of your property card. Review the card and confirm that the basic information about your property is correct. For example, is the square footage and number of rooms for your home accurate? If the number is incorrect, the county may change the assessment without a formal appeal. If everything on the property card is correct but the assessed value still seems too high, your next step is to gather the following documentation to support an appeal. And don't be surprised if the assessed value is lower than what you think the market value for your home is--many counties use a formula which uses a percentage of market value to determine assessed value. Ask what the formula is... because an assessment that is less than market value still might be too high.

If you have a current appraisal that supports the value being lower using recent market-value information, many counties will accept a copy of the appraisal with the appeal. If the appraisal is outdated, you can order a new one--just call me for a referral to a great appraiser. You can also visit the local assessor's office or search online, and look through the public records for other homes that have similar features to yours, but have lower assessments. They will be able to give you current market information for your neighborhood, and help you see how your market value and assessed value stacks up against your neighbors.

Submitting an appeal is generally a fairly simple process, but make sure to take the time to fill out all forms in advance and be prepared with your documentation if there is an in-person hearing that needs to take place.

More good news...

According to the National Taxpayers Union, about 33% of property tax appeals succeed! Taking the time to review the accuracy of a tax bill could easily save you hundreds of dollars per year, adding up to thousands of dollars during the time you own your home.

6:58 PM - May. 19, 2008 - comments {0} - post comment

FHASecure to help even more families

This FHASecure expansion will help more homeowners who are struggling to keep up with mortgage payments on their high-cost subprime loans. With this expansion of FHASecure, the Administration expects about 500,000 families to refinance into prime-rate FHA-insured mortgages in total by the end of this year.

“Our plan will help hundreds of thousands of desperate families who have no place else to turn for safer, lower cost ways to keep their homes,” said Federal Housing Commissioner-Assistant Secretary for Housing Brian D. Montgomery at a hearing of the House Financial Services Committee. “We want to be able to help families who are in the right house, but the wrong mortgage.”

In August 2007, FHA modified its refinancing program to help creditworthy homeowners who missed payments after their teaser rates reset. Now, FHASecure is expanding its eligibility standards. Homeowners who believe they meet this additional eligibility criteria must fall into one of the following categories:

Borrowers with adjustable rate mortgages who were late on two consecutive monthly mortgage payments or at two different times over the previous twelve months. FHA will require a 97% loan-to-value (LTV) ratio for these borrowers to refinance, the same LTV as FHA’s current standard.

Borrowers with adjustable rate mortgages who were late on three consecutive monthly mortgage payments or at three different times over the past 12 months. FHA will require a 90% LTV ratio for these borrowers to refinance.

With these new criteria, the expanded FHASecure can help additional borrowers access a more viable refinancing option and will offer lenders an alternative to foreclosing on these individuals. Lenders may voluntarily write down the outstanding subprime mortgage principal balances to a 97% or 90% LTV ratio depending on the borrowers’ circumstances. FHA will also encourage lenders to make other arrangements, such as subordinate financing, to “fill the gap” between the existing loan balances and the FHA-insurable loan amount. The refinanced loan amount backed by the FHA would be based upon a new appraisal, performed by an FHA-approved appraiser.

FHA will insure new, more affordable mortgages in exchange for this equity cushion, which will protect FHA’s insurance fund, and thus the taxpayer, against risk. Currently, FHA’s insurance fund is self-sustaining, meaning that it requires no appropriation of taxpayer dollars because homeowners pay for the product themselves. Further, any new FHASecure loans will continue to meet FHA’s no-nonsense underwriting standards. Lenders will be required to ensure borrowers have the capacity to repay their mortgages; show a reasonable credit history; employment history; and fully document and verify their incomes.

Like all FHA-insured loans, borrowers will be required to pay upfront and annual premiums on their loans, which directly contribute to the soundness of FHA’s insurance fund and protect taxpayers. FHA will also be simultaneously updating the pricing policy for these premiums. The new policy will base premiums on the individual borrower’s credit risk profile. More than 90% of FHA-backed loans are 30-year fixed rate mortgages. Homeowners currently using FHASecure are saving $400 a month on average compared to their previous subprime loans.

“More homeowners continue to turn to FHA to find mortgage terms they can afford. We’re keeping families in their homes while doing what’s in the best interest of future generations who will rely on the safety and soundness of FHA to put a roof over their heads. The modifications to the existing FHASecure product offer a prudent, yet appropriate, way to help more families refinance without putting the government or taxpayers at risk. Consistent with FHA’s historical mission, the changes are designed to help FHA provide additional liquidity and stabilize local real estate markets.”

Since September 2007, FHA has helped pump nearly $68 billion of much-needed mortgage activity into the housing market, $28.5 billion of which was through FHASecure. FHASecure has helped more than 150,000 homeowners who are current or past due on their loans avoid foreclosure, and, with today’s announcement, it is expected to assist 500,000 total families by December 31, 2008.

12:20 PM - May. 18, 2008 - comments {0} - post comment

5 tips for selling a vacant home

“Many people think all they have to do is make sure the inside of their home is clean, but it really goes far beyond that when it comes to making sure your home looks its best so that buyers will take a look,” said Thomas Scott, vice president of Operations for Showhomes Franchise Corporation. “That is why we have released five essential tips that can help local residents stay on the right track when preparing their homes for a sale.”

Scott reveals five tips for selling a vacant home:

1. Curb Appeal - the better the curb appeal of your home is, the more attractive it is to prospective buyers.

- Trim overgrown bushes, weed beds and add a fresh layer of mulch
- Clean your front door and repaint if needed
- Add a fresh doormat
- Keep grass cut, edged and blown
- Plant some color in the beds to add contrast

2. Cleaning - for most buyers, dirt equals stress and the last thing most buyers want is more stress in their lives.

- Pressure-wash the driveway and sidewalks.
- Clean windows inside and out
- Pressure wash decks and patios

3. Paint - the condition and color of the paint can make a huge difference in how buyers react to your home. Select light neutrals - creamy kakis, pearly grays or soft greens.

4. Replace Worn Carpet - Dirty carpet is unsanitary and nobody will be able to overlook your worn carpet. Replace the top layer with inexpensive neutral colored carpet and you will always recoup the investment.

5. Stage your home - Buyers who look at vacant homes only see floors, walls and ceilings. With nothing else to look at, they focus on flaws. Because of this, vacant houses are very vulnerable to low-ball offers and often sell for 15-20 percent below list price.

12:05 PM - May. 16, 2008 - comments {0} - post comment

Mortgage interest rates can be as important as price

Real Estate buyers are usually highly focused on the purchase price of a property according to Ki Gray of Austin Texas. This is a legitimate concern. The purchase price is one of the most important considerations in a real estate transaction. But at the same time home buyers too frequently treat interest rates as a secondary concern. Many buyers will stress over $300 or $400 in negotiations over purchase price. But when told that interest rates dropped half a point, home buyers will often respond with a shrug.

This is frequently because it is easy to understand the difference between paying 200k and 195k for a house. But it's harder to appreciate the difference between an interest rate of 6.5% and 6.0% for a house. But interest rates can have a large influence on mortgage payments. Using a mortgage calculator first let's look at the difference between the mortgage on a 200k and the mortgage on a 195k house assuming a 6.5 percent interest rate.

200k  (6.5%)  Mortgage  $1264.13 per month
195k  (6.5%)  Mortgage  $1232.53 per month

The difference ends up being $31.60 a month.

Now let's look at the difference between an interest rate of 6.5% and 6.0% on a 200k house.

200k  (6.5%)  Mortgage  1264.13 per month
200k  (6.0%)  Mortgage  1199.10 per month

The difference ends up being $65.03 a month or $780.36 a year. A simple half point drop lowered the mortgage payment by 5.4 percent.

Interest rate changes are not that uncommon. We wrote a tool that graphs mortgage rates over time based on the interest rates provided by Freddie Mac. In the middle of 2007 we saw interest rates of 6.7%. At the beginning of 2008, interest rates were down to 5.75%. What is a little more interesting is when we switch the toggle on our tool from the interest rate to the mortgage on a 200k house based on the interest rate for that date http://www.escapesomewhere.com/blogim/mortgage_rates_broker.jpg. From the middle of 2007 to the beginning of 2008, we saw a drop in the monthly mortgage payment on a 200k house drop from $1290 to $1170, a difference of 9.3 percent. This is why when buyers say they are waiting for prices to drop 5%, it might be a good idea to tell them that the actual mortgage they would get on a house has already dropped by more than 5 percent.

In light of all the mortgage issues over the last few years, it highlights why home buyers should shop around for interest rates. All too frequently home buyers will go with the first mortgage person they meet under the assumption that everyone has roughly the same rates and that a half point isn't really that big of a difference. As we have seen above, a half point can make a significant difference in someone's mortgage payment.

11:42 AM - May. 14, 2008 - comments {1} - post comment

Forbes ranks Denver one of the best places to sell

11:29 AM - May. 12, 2008 - comments {0} - post comment

More reasons to price it right

This article by Paul Pastore with Re/max Achievers in Chandler, AZ gives us more reasons to price it right to start with.

Have you ever seen a dog chasing after a car? To a sadist, it might seem very funny.

No matter how fast the dog runs, it will never catch the car. The dog will never slow the car down. And, the dog will never bite a moving tire. What must the dog be thinking?

Today, many sellers are running after the market, the same way dogs chase vehicles.

What are these sellers thinking? Their home is the only castle for sale? Buyers will love the scent of their lilac bushes so much that it will temporarily cause them to forget the competition? Is it possible the smell of fresh baked bread will cause a buyer to pay yesterday's price in today's market?

In my opinion, it is imperative for a seller to price their property 10% below market in order to sell promptly and avoid being left in the long line of expired listings. It may be an election year, but it will be a long wait for the inventory levels to decrease to a balanced market.

There is a Turkish proverb that says, "No matter how long you are traveling down the wrong road, when you figure it out, turn around."  Overpricing is a two-edge sword. If a property is receiving little activity, it is overpriced. Or, if a property is receiving adequate activity, but no offers; it is also overpriced. The latter problem is called 'always the bridesmaid, never the bride.'

By suggesting a seller has an overpriced property, the real estate agent runs the risk of being the messenger that gets shot. Courageous agents tell the truth. Cowardly agents hope the overpriced property will generate sign or ad calls while the seller reduces the price and stigmatizes the property with additional days on the market.

Say's law says, "No good or service will remain chronically unsold, as long as prices remain flexible." The next time you see a dog chasing a car, hopefully, it will remind you of the futility of  chasing a declining real estate market.

11:25 AM - May. 10, 2008 - comments {0} - post comment

Take an interest in your credit card rate

TAKING AN INTEREST IN YOUR CREDIT CARD RATE...

Credit cards are one of the most pervasive forms of your financial picture. On a daily basis, they provide the flexibility and freedom to reserve a hotel room, travel without carrying cash, and purchase just about anything at anytime.

As such, your credit cards can have a major impact on your financial wellbeing and even your credit score. But did you know that your credit score can also impact your credit cards...specifically your interest rates? Although some companies have abandoned the practice, many won't hesitate to raise your interest rate if your credit score declines - even if you are paying them on time! By following these tips, you can help avoid inflated interest rates on your credit cards.

Understand the terms. The best way to protect yourself from high interest rates and hikes is to read and understand your credit cards policy terms. Pay particular attention to the interest rate, how long that rate is in effect, and what actions can lead to a hike - such as a late payment on your card, a declining credit score, or even a late payment on a completely unrelated bill.

Don't be late. Making a late payment can lead to increased interest rates on all your cards. In addition, they can lower your credit score, causing you even more problems down the road. So make a schedule and always pay on time.

Watch the mail. We all get junk mail, but some of it may not be junk after all. Whenever you receive any information in the mail from your credit card, read it carefully in case any policies or interest rates are changing.

Make a call. If your rate does change, call the company. If you've made your payments on time consistently, you may be able to get your original rate restored. If the company seems hesitant, you may want to threaten to transfer your balances to another card - customers in good standing may find they have more bargaining power than they realize. And don't just threaten to make a change...actually do it if it makes sense. You may find the grass actually is greener on the other side.

Be careful what you close. Closing a card that has a current balance will likely send your interest rate soaring. In addition, closing your oldest credit cards can have a negative impact on your overall credit score. So make sure you check and double check which cards are best to close.

11:19 AM - May. 8, 2008 - comments {0} - post comment

Take advantage of the market and buy now

By acting now during the spring selling season families can find a home, complete the sale and move in just before the new school year. Also, there is still time purchase a vacation or second home and enjoy this summer at the shore.

“The advantages of buying a home this spring are crystal clear,” said Turton. “The wisest and most serious buyers are in the market today.”

Even though it is a perfect home buying time, knowing your options, getting prepared and bringing in the right help will make the home buying experience successful.

Following are guidelines from Turton that will help make this the perfect season to buy a home:

- Get a handle on your expenses, plan a budget and start a fund for your down payment. Although it is possible to get a mortgage with only five percent down - or even less in some cases - you can usually get a better rate and lower overall cost by putting more money down.
- Do your homework to determine how big a mortgage you can afford. Your mortgage lender can assist you with this process or you can do the work yourself with online mortgage calculators.
- Retain a good real estate sale associate who is experienced, an excellent negotiator and knows the local housing market. A real estate transaction is complicated and is difficult to complete alone. In most cases, buying a home requires completing disclosure forms, inspection reports and mortgage documents as well as getting insurance policies and taking care of many details. Finding someone who can guide you through this process will help avoid delays and costly mistakes.
- Know what kinds of other professionals you will need to make to complete the transaction. Some of these professionals include a real estate attorney, home inspector, appraiser, title company expert, tax advisor and various environmental inspectors and specialists.
- Determine your closing costs. From homeowners’ and title insurance to well water testing, there are many costs, both large and small, that a homebuyer will be expected to pay at the signing. The sales agent can provide an accurate estimate of these costs, so there are no surprises as the transaction approaches a close.

Remember, while it is a perfect season for home buying, it is important to do things right, so that spring 2008 becomes a memorable time when you buy that dream home.

8:05 PM - May. 6, 2008 - comments {0} - post comment

3 easy ways to go "green"

1. Caulk gaps and cracks
2. Switch to Energy Star qualified compact fluorescent light bulbs (CFLs)
3. Install a low-flow showerhead.

According to Energy Star, the most cost-effective action homeowners can take to improve energy efficiency is sealing and insulating their homes. Sealing gaps and cracks with silicone caulk, and insulating the home can reduce total energy costs by up to 10 percent.

CFLs use up to 75 percent less energy than regular incandescent bulbs. High efficiency showerheads can cut hot water demand by an estimated 40 percent. Together, these three easy actions can save homeowners hundreds of dollars a year in energy costs and remove hundreds of pounds of greenhouse gases from the environment.

“Caulking is a small expense for a big step towards a greener world,” said Rodney Hawkins, general manager of Momentive Performance Materials, an exclusive licensee of General Electric. “The key is to be sure to use GE silicone, not acrylic caulk, when sealing. If it’s not silicone, you may not get the same impact.”

Silicone is waterproof, permanently flexible and won’t shrink or crack, unlike acrylic caulk. Acrylics shrink up to 25 percent, leaving cracks and gaps for air and water to leak through, meaning an additional afternoon spent re-sealing the home, and more waste put in the environment. Also, GE Silicone II XST, a paintable silicone formula, has the benefits of silicone and the paintability of acrylic all in one.

8:01 PM - May. 4, 2008 - comments {0} - post comment

Tips to sell your home this spring

If sellers will just employ some of the basic staging principles it would make a huge difference and leave a much better impression; drawing potential buyers back to the house for a second look. And that’s where a professional stager, or a real estate professional with staging knowledge, can help them get their house in order.

Here are some basic pointers from the Accredited Home-Staging Specialist (AHS) course from RealtyU that will get most home sellers headed in the right direction; changing their “lived in homes” into “houses for sale.”

1. De-Clutter - This one is simple. De-clutter everywhere; inside and outside. If it’s taking up space it is a potential candidate to be thrown out. The sellers need to make that all important mental conversion from “home to live in” to “house for sale.” Personal “things” are a big distraction as you want the buyers to be able to visualize their own belonging in the house.

2. Repair - Buyers want everything working so don’t disappoint them - dripping faucets, broken windows, leaking roofs, damaged walls and doors, etc, beg the question in the buyer’s mind … What else is broken or doesn’t work?

3. Lots of Light - The last thing home buyers want to see is a dark home with all of the doors and windows covered. Let the light in and open some windows to let in some fresh air. Room de-odorizers leave the impression of covering something up as does a window with the blinds drawn.

4. Clean Windows - Buyers want to know and see the view they will have from every room - don’t make them look through dirty windows. If they don’t the impression of a great view is literally going “out the window.”

5. Kitchen and Bathrooms - Two of the most important rooms. They must be spotless and first class. Just cleaning up isn’t going to be good enough - you need to “deep clean” all counters, floors, cabinets and all the fixtures in the bathrooms. In the bathrooms consider new fixtures or countertops and perhaps redoing the shower and tub enclosures.

If new fixtures are not in the budget you may want to consider having them refinished. Think about having all the tile steam cleaned and make sure all grout is free from grease and dirt.

6. Odors - Absolute deal killers are cigarette or pet odors. If this is a problem - have the drapes, carpets and furniture professionally cleaned and “no smoking” in the house. Also, cooking odors are not a good thing. The best bet - fresh air. Often a little lemon oil mixed with water in a spray bottle “lightly used” will add just a bit of freshness without overpowering the house.

7. Paint - A fresh coat of paint on the outside or inside is an excellent way of freshening up your home. Be sure they use neutral colors and avoid accent painting - they are only guessing what the buyer likes. This can be done by the home sellers but in most cases they should use a professional painter. It’s always a bigger job than they think.

8. Yard Work - Deal with overgrown bushes, shrubs and trees. Everything in the yard needs to be trimmed, watered, manicured and “living.” Remove everything lying around the yard including sports equipment, boats, trailers, toys, etc. You may also add some color by placing some annuals in planters in the back as well as in the front. Curb appeal makes that all important “first impression.”

9. Furniture - The bottom line … less is best. If it’s old, worn or dated they should put it in storage. They need to remember they are setting a stage and the actor needs to be the house - not their furniture.

10. Hardwood Floors - Hardwood floors can be a huge plus for buyers unless they look like a 20 year old basketball court. It may be a great investment to have them all refinished - and suggest to them it’s not a simple weekend project.

Staging a home correctly and placing each house in the best possible light has become a must in today’s economy. With spring upon us and summer around the corner, the time has come for you to show your clients the way to prepare their homes for what could be the best selling opportunity they have this year.

7:56 PM - May. 2, 2008 - comments {1} - post comment

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