Mar. 12, 2009 - Do you Qualify for the "Making Home Affordable" Refinance Initiative?

Do you Qualify for the "Making Home Affordable" Refinance Initiative? 

On March 4, 2009, President Barack Obama released the "Making Home Affordable" initiative guidelines, which is designed to help up to 9 million homeowners stay in their homes through refinanced mortgages or loan modifications.This portion of the initiative is aimed at people who are — or who soon will be – having a tough time paying their mortgage, but who would be able to afford their home if the interest rate on their mortgage was lowered.

Feb. 8, 2009 - Senate Approves $15,000 Tax Credit for Homebuyers

Senate Approves $15,000 Tax Credit for Homebuyers

The U.S. Senate voted February 4, 2009 to amend the 2008 American Housing Rescue and Foreclosure Act to include ALL new homebuyers and increase the $7,500 tax credit up to $15,000 or 10% of the purchase price for a qualifying residence.

• Anyone who buys a home in qualifies
• Take the $15,000 Tax Credit over 1 year or 2
• Doesn't have to be repaid
• $15,000 Tax Credit is the lesser of $15,000 or 10% of the purchase price of the home

Aug. 25, 2008 - Homeowners Beware of Scams That Offer to Lower Your Property Taxes

Homeowners Beware of Scams That Offer to Lower Your Property Taxes

Jun. 19, 2008 - Chasing After Foreclosure Properties

Chasing After Foreclosure Properties

What is a foreclosure? A foreclosure occurs when a homeowner defaults on a mortgage with the lender. After the foreclosure sale, the lender then takes possession of the property and tries to sell it in order to recover as much of the value of the loan as possible.

Before you start your chase after foreclosures, homebuyers and investors must familiarize themselves with the process if you’re going to invest in foreclosures. The foreclosure process in each state differs. You need to be savvy and must educate yourself before you purchase a foreclosure property.

You can do this by searching over the Internet or you can research the topic at your local library. You also need to become familiar with the documents that might be used as evidence of a money debt against real estate: Trust Deeds, Mortgages, Security Deeds, Deeds for Debt, Contracts, and Land Contracts, among others.

In some states, they have redemption periods after the foreclosure sale. The property has been foreclosed upon by the bank, but depending upon the state the former owner has up to a year to make up all the back payments and costs and retain possession of the house, regardless of who is presently living there.

Some states have a non-judicial mortgage process for resolving the issue. Trust Deeds are widely used for these non-judicial foreclosures. Most banks prefer this type of foreclosure because it cuts down on fees and costs. When a mortgage case is taken to court, it usually takes a longer time to resolve.

Right now, with foreclosures at an all time high, there are many opportunities in purchasing a foreclosed property. Just make sure you educate yourself to the foreclosure process no matter what state you are purchasing the property.

Also note that when purchasing a foreclosure property, the homebuyer or investor cannot be picky about the condition of the home. Foreclosures are sold “as is” and most require some type of rehabilitation due to the lack of maintenance from the previous owner.

Despite the risks that might be involved, buying foreclosures is a great opportunity for the homebuyer or investor because properties can be purchase at a price lower than the current market value.

Searching for foreclosures can be an arduous and time consuming process, give me a call at 661.904.2188 or email homesbycharly@yahoo.com to request a list of foreclosure properties for your area. You can also go to www.homesbycharly.com and request the list online.  

May. 29, 2008 - Tips to Help Protect Your Home Against Burglars

10 Security Tips to Help Protect Your Home Against Burglars

No matter where you live, burglary is something that can affect your life. Statistics indicate that three out of four U.S. homes will be burglarized in the next 20 years. According to the Federal Bureau of Investigation, the average property loss in a burglary exceeds $1,000, not to mention the damage from vandalism.

But with proper planning, you can incorporate security measures to safeguard your home. Review the list below for 10 quick security tips to make your home more secure:

Organize a community watch program to protect your neighborhood. An alert community is a safe community.

Apr. 29, 2008 - Nine Tips to Warm Up Your Home

1.      Color your world. You can change the look of a room in a matter of hours with paint, and I’m not just talking about the walls. Ceilings, trim, and chair rails can be punched up, and there are many faux finishing techniques that are perfect for the do-it-yourselfer.

2.      Update window treatments. If your windows need a makeover, lighten them up with simple drapery panels. Use drapes, blinds, shades and swags in the latest colors and fabrics.

3.      Rearrange the furniture. Create a new look without spending a dime! Map things out on paper before you start moving pieces around, especially the heavy ones.

4.      Re-purpose a room. Do you have a living room or extra bedroom that’s not being fully utilized? Turn it into an office, gym, media room or playroom for the kids.

5.      Accessorize! Little details can make a big impact. If your current accessories have lost their luster, replace them with decorative books, candles, and interesting pieces that reflect your personality and hobbies.

6.      Don’t forget the floors. Nothing beats the smell of fresh carpet. It gives your home that “new house” feel.

7.      New countertops! You can transform a kitchen or bath with new countertops, without having to remodel the entire room. And you don’t have to spend a fortune: affordable laminates now come in styles that look amazingly close to real granite, marble and quartz.

8.      Think spring. Add fresh cut flowers and new house plants to green up your living spaces, and remind you that spring is on its way!

9.      Decorative molding! You can add instant glamour to any room using decorative molding, and it’s easier to install than most people think.

Apr. 1, 2008 - Signs It's Time For Home Buyers To Buy

Signs It's Time For Home Buyers To Buy

If you're waiting for signs of a housing bottom, join the club. Nobody blows a whistle and say, "It's time to buy!" That's why market timing is an art, not a science, but you can improve your odds of buying wisely.

Mar. 5, 2008 - The Case Against Waiting to Buy

Finance costs will rise as the economy recovers, so trying to time real estate might not pay off. Justin Sullivan / Getty

Ignore the Headlines

I read an interesting article from TIME magazine by DAN KADLEC yesterday. Here is a link to the article. However, I am going to cut and paste the article below: 

Famed Money Manager is perhaps best known for his timeless wisdom that you can beat the pros by focusing on stocks of companies where you either work or shop or have some other edge. But a more relevant Lynchism today is this gem: Ignore the headlines. 

That's no easy thing. How do you tune out all the chatter and ink on recession, housing, subprime woes, the credit crunch, rogue traders, insolvent bond insurers, $100 oil and nukes in Iran? It's enough to make you sit on your thumbs and wait before making any big moves. But what, exactly, are you waiting for? 

There has rarely been a moment in history when you couldn't scare yourself into doing nothing. And yet, as Lynch observed nearly 20 years ago, "in spite of all the great and minor calamities that have occurred ... all the thousands of reasons that the world might be coming to an end--owning stocks has continued to be twice as rewarding as owning bonds." 

A top reason to not buy stocks, in Lynch's view, is if you don't already own a home--in which case, that should be your first investment, since an owner-occupied home is nearly always profitable. Through a spokesman, Lynch reaffirmed these views to me--housing debacle and all. 

When prices are falling, few people have the discipline to buy stocks, a house, gold, art or any other asset. But those who do pull the trigger excel in the long run. As John D. Rockefeller famously said, "The way to make money is to buy when blood is running in the streets." 

And the streets are stained crimson. Start with stocks. They have been pummeled this year. GDP braked sharply last quarter, and there has been plenty of panic about a recession. The Federal Reserve is slashing short-term interest rates at the fastest clip in decades. But if you stick to your steady, diversified plan while everyone else is retreating, you will be happy years from now. For one thing, Fed rate cuts always lift the economy eventually, and the stock market typically starts responding just as headlines get gloomiest. Sure, the market could fall again before recovering. But the recession may be half over already--or we may avoid one altogether. You just never know. 

As for housing, certainly some skepticism is in order. Formerly sizzling markets in Florida, Nevada, Arizona and California probably haven't seen the worst headlines just yet, though they may well be close. And "jumbo" mortgages, those more than $417,000, are likely to remain artificially high for a few more months while banks work through their credit issues. 

But let's say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It's time to get serious--before an inevitable rise in interest rates wipes out your advantage. "The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher," says Jim Svinth, chief economist at mortgage firm Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs. 

Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today's rate of 5.5%. Monthly principal and interest come to $994.31. Let's say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise just half a point, to 6%, your monthly payment would be $994.94 and you'd have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you'd rather not be. 

It's more complicated if you must sell before you can buy. But that logjam won't persist forever--and if it appears you'll be trapped for a few years, try to refinance at today's lower rates. Risks always seem most acute when the headlines give you ulcers. But that's exactly when you should think long term--and get off your thumbs. 

The Case Against Waiting to Buy

Today's Home Price - $218,900

Put 20% down and get a 30-year fixed-rate mortgage

5.5% Current rates after recent declinesMonthly payment $994.94 

Cost in 12 months?

If prices drop an additional 10% home price will be $197,010

Recession ends, and the Fed starts to raise rates - Interest rate 6%

Monthly payment $994.94 

CONCLUSION: If you waited a year to buy, you would have saved nothing and spent a year living someplace you'd rather not be. 

Let’s look at how this applies to Santa Clarita Valley (or any state in the Union):

The average sales price for a Single Family Residence in Valencia, 91355 is $464,000. You put the same 20% down and get a 30-year fixed rate mortgage at a competitive rate of 6.0%. Your monthly principal and interest comes to $2225.53. Let's say that 12 months from now the same house goes for 10% less, or $417,600.  If you waited a year and mortgage interest rates rise to 7.0%, your monthly payment would be $2222.64 and you'd have saved $2.89.  Meanwhile, home prices might steady, sellers might become less willing to negotiate and you have spent a year living someplace you'd rather not be.

Hope you found this an interesting read. Now, let me ask…What is the reason you are waiting? Call or email me to let me know and I will provide you with the reasons you should.

Charly Sanders, REALTOR
"Connecting The Right People To The Right Home"
Realty Executives
Direct: 661.904.2188
Office: 661.286.8600
Email: homesbycharly@yahoo.com
Website: www.SCVRegionalHomeSales.com

Feb. 5, 2008 - Should You Renovate, Remodel Or Sell Your Home As Is?

Should You Renovate, Remodel Or Sell Your Home As Is? 

Three or four years ago, the real estate market was so hot that no matter what some sellers did—either putting money into home renovations or simply listing it “as is”—they sold their home without any problem at all. Very often a seller was able to sell their home within the first week and sold it without a home inspection.  

Unfortunately, those days are gone. Today, sellers are fretting more than ever over listing their homes and the big question is this: Should you make renovations to your home before you put it on the market or should you initially list it at a lower price and not spend the money for upgrades? Although there’s no simple answer, each option has its benefits. Yet when all is said and done, a compromise is probably your best bet.  

Yes! You should renovate before putting your home on the market. If your home is definitely in need of upgrades, spending the money makes sense. If you are considering any major renovations, you’ll want to have your real estate agent provide you with information about houses in your area in terms of what the “norm” is (number of bathrooms, types of kitchens, average age of homes, etc). If your home is inferior to other homes on the market in your neighborhood, take the plunge and do any needed upgrades. However, be careful that you don’t go overboard. If your renovations are over the top your home may end up being too pricey for your neighborhood. 

No! Instead of making upgrades, list your home at a lower price. In many cases, you might not be able to recoup your remodeling costs when it comes time to sell your home. Also, if you’re worried about your house sitting on the market longer than you want it to, you may be better off if you forgo any major renovations and instead concentrate on listing your home at a much more competitive price. This doesn’t mean that you need to under price your home. You just need to price it according to what the current market will bear—and according to the current value of your house at its current condition. 

Once again, your real estate agent can help you in this area. The smart thing for you to do may be a combination of remodeling and lowering your list price. Making smaller upgrades to your house—to bring it in line with similar houses in your area—is usually a good idea if there’s a wide discrepancy between your home and other homes. 

Also, you should always do minor cosmetic upgrades such as painting, carpet cleaning, and landscaping before putting your house on the market. In terms of your list price, make sure you list your home at a fair and competitive price—whether or not you make any renovations.  

Let me show you show you what your home is currently worth by doing a Comparative Market Analysis (CMA). I will take a look at all of the market activity in your neighborhood to see what the overall competition looks like for a home with your features and layout. Together, we can review the report to discuss your options. Then, if you decide to sell, we price your home correctly.  

Call 661.904.2188 or email homesbycharly@yahoo.com me to discuss the value of your property. There is no obligation or cost involved.   

Jan. 9, 2008 - Adding Value to Your Home

Dec. 30, 2007 - Winterize Your Home Against Pesky Intruders

  Winterize Your Home Against Pesky Intruders

Winterize your home…plug holes and stop gaps. Pests that get in can be just as expensive as heat that gets out. The last thing you want in your home are the kind of unwanted guests that can turn out to be real creeps. Roaches can trigger asthma. Mice and rats can gnaw through electrical wires and insulation. All three are a menace and will get into your property.

These pests are not very different from you. Just as you want to stay inside where it’s warm, so do vermin and other pests. Pests seek refuge indoors during the colder months.

During the winter, rodents become one of the most common invaders and can cause serious property damage in and around the home. Mice can squeeze through spaces as small as a nickel.

Here are a few tips to winterize your home against pesky intruders:

• Clean out gutters after the majority of leaves have fallen.
• Don't let trash and debris pile up in outside bins. Store trash and other waste in sealed containers, but dispose of it regularly.
• Remove anything that can fill up with water that can provide a breeding ground for pests. Keep the swimming pool clean and covered.
• Remove shrubs and tree branches from the side of the house and roof, to prevent them from serving as pathways into your home. Likewise, pull soil or mulch back from the foundation of the house to prevent termites.
• Stack firewood and lumber at least 20 feet from the house and five inches off the ground to eliminate harboring termites, rodents, spiders and centipedes.
• Repair loose shingles, roof shingles, eaves and rotted boards to ward off insects drawn to deteriorating wood.
• Seal cracks and holes on the outside of your home including areas where utilities and pipes enter your home.
• Repair screen vents and openings to chimneys.
• Inspect boxes, grocery bags and other packaging thoroughly to curb hitchhiking insects.
• Keep basements, attics, and crawl spaces well ventilated and dry.
• Replace weather-stripping and repair loose mortar around basement foundation and windows.

If pests get the upper hand, call a qualified pest control professional for assistance. Seek licensed professionals through referrals from family, friends, co-workers, Realtor®, and others you trust who've been satisfied with a pest control professional's work. 

Dec. 24, 2007 - BREAKING NEWS: President Bush Signs H.R. 3648, The Mortgage Forgiveness Debt Relief Act of 2007

BREAKING NEWS: President Bush Signs H.R. 3648, The Mortgage Forgiveness Debt Relief Act of 2007

"When your home is losing value and your family is under financial stress, the last thing you need is to be hit with is higher taxes. So I'm working with members of both parties to pass a bill that will protect homeowners from having to pay taxes on cancelled mortgage debt." President George W. Bush, 9/1/07  

December 20, 2007, President Bush signed the Mortgage Forgiveness Debt Relief Act just before Christmas. This Act will create a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive. Under current law, if the value of your house declines, and your bank or lender forgives a portion of your mortgage, the tax code treats the amount forgiven as income that can be taxed.

What is good about this legislation is that those who have been hit with a foreclosure or short sale now will have tax relief on the loss accrued by the lending company as opposed to it being considered taxable income.

US President George W. Bush has signed the Mortgage Forgiveness Debt Relief Act into law. The measure will waive taxes for many homeowners who must restructure their mortgages as they face foreclosure.

The US housing market has seen serious strains in recent months. Property values have fallen in many parts of the country. At the same time, the ongoing subprime lending crisis threatens middle-class homeowners, as many have seen their monthly payments increase faster than their ability to pay.

Since many people are just one paycheck away from being on the street they are in trouble. This new law principally erases the tax bill that many homeowners would face if a lender erased some debt to ease payments. Before the law, debt that was forgiven in a foreclosure or as part of a loan workout was classed as income.

This Act increases the incentive for borrowers and lenders to work together to refinance their loans and allow families to secure lower mortgage payments without facing higher taxes.

Call me at 661.904.2188 or email homesbycharly@yahoo.com with any questions you may have or to refer you to a lender I trust to help you refinance your loan.  

Oct. 27, 2007 - How to Handle a Delinquent Mortgage

How to Handle a Delinquent Mortgage

Keep in mind, the lender really doesn't want your property. If you communicate with the lender, they will more than likely do whatever they can for you to help you keep your property. Here are five easy steps that you can use to communicate with your lender and possibly help you avoid foreclosure.

Step 1: Contact the lender immediately

If you haven't done so already, you need to contact the lender/servicer at the earliest date possible or as soon as you become aware that you will be unable to make your payments or have missed your first payment. Never WAIT until you are seriously delinquent.

Step 2: Keep a telephone record

Keep a telephone record of all calls made to or received from the lender/service. Indicate the time the call was made or received and the person you spoke with and results of the conversation.

Step 3: Mail a written summary of the conversation to the lender

Write a letter to the lender summarizing your conversation. Be sure to include your loan number, which you will find at the top of any correspondence sent by you to the lender, as well as the property address. Write a statement:

· Restating the reason you will be delinquent or are delinquent. Be very honest.

· Summarizing your efforts to resolve the problem. Be specific.

Step 4: Provide any documentation that will support your claim

Prepare, gather and furnish any documentation to support or backup your statement or efforts to resolve the delinquency. For example:

· If you were laid off, provide a copy of official notice or unemployment benefits notice.

· If you are under a doctor's supervision, provide a copy of the letter from the doctor specifying what happened and when you might return to work.

· If you requested funds from a 401k or investment account, provide a copy of the request.

Step 5: Mail your request and documentation via Certified Mail, Return Receipt Requested

Mailing you request Certified Mail, Return Receipt Requested provides you with a signed notice of receipt. It guarantees you that the lender's representative signed for and received your request. Before you mail your request, make copies of everything you send to the lender for your records. It is very important that you keep accurate documentation, telephone record and copies of any information mailed to the lender during this entire process.

Make sure whatever you agree to is reasonable and realistic. Never agree to something that you know will be impossible for you to complete. Most lenders will only give you ONE chance to resolve your delinquency. If you fail to keep the terms of your loan workout agreement, you probably won't get a second chance. If your financial situation does change, however, due to circumstances beyond your control and you can't meet the terms of your loan workout, CONTACT the lender right away. There is a good chance they will work with you.  

Oct. 9, 2007 - Short Sale - What’s It All About?

Short Sale - What's It All About?

A short sale occurs when the outstanding loans against a property are greater than what the property can be sold for.

Are You Having Trouble Making The Payments?

Are you…

• Feeling stressed out because of the missed payments and phone calls from your bank?
• Robbing borrowing money from Peter to pay Paul?
• Confused as to what your options are at this point?

Do you…

• Owe more on your property than what you could sell it for (include the real estate commission, closing costs, late payments, interest, etc)?
• Find it difficult to cover your expenses each month?
• Have no money in the bank to cover the difference of what you could sell
  your house for and what you owe the bank?

Then, Be Proactive and Save Your Credit from Foreclosure - Consider a Short Sale

Why, because a foreclosure will stay on your credit for up to seven years and can make it difficult to obtain another loan. Conducting a short sale minimizes the damage to your credit.

What Should You Do?

First, obtain the value of your property. If you are using a real estate agent your agent will provide you with an estimate of market value. If you are selling the property yourself, you must do your own market analysis of the area and your property.

Second, add up all the costs of selling the property, real estate services and closing costs, which you can get from real estate agent. If you are selling the property on your own, call a local title company and ask what the closing costs will be.

Third, determine the amount owed against the property. This will be the total of all loans against the property.

Fourth, total the outstanding loans (amount owed) and subtract from the estimated proceeds of the sale. On a short sale, this will be a negative number.

Fifth, contact the lender or lenders to speak with someone in the customer service department and tell them the situation and ask for a short payoff. They may direct to a supervisor or manager or to a specific department, which handle a short payoff. Ask the lender to explain to you its procedures for a short sale.

Note: Some lenders are willing to work with you by reducing the amount owed or making other arrangements. Others will look to the agents involved (if any) or anyone else who's making money off the transaction to see if they are willing to make concessions to make the transaction happen. Still other lenders will tell you that your debt is your responsibility, one way or the other. 7

Sixth, sell the property. If you sell the property without the assistance of a real estate broker, you will save the amount of the commission, which may be negotiated.

If a property is sold under a short sale, the IRS often gets involved with short sales, because they are seen as a relief of debt and may be treated as income. Check with your accountant. 

Sep. 24, 2007 - 10 Ways to Lower Your Homeowners Insurance

10 Ways to Lower Your Homeowners Insurance Costs  

1. Raise your deductible. If you can afford to pay more toward a loss that occurs, your premiums will be lower.

2. Buy your homeowners and auto policies from the same company. You'll usually qualify for a discount. But make sure that the savings really yields the lowest price.

3. Make your home less susceptible to damage. Keep roofs and drains in good repair. Retrofit your house to protect against natural disasters common to your area.

4. Keep your home safer. Install smoke detectors, burglar alarms, and dead-bolt locks. All of these will usually qualify for a discount.

5. Be sure you insure your house for the correct amount. Remember, you're covering replacement cost, not market value.

6. Ask about other discounts. For example, retirees who are home more than working people may qualify for a discount on theft insurance.

7. Stay with the same insurer. Especially in today's tight insurance market, your current vendor is more likely to give you a good price.

8. See if you belong to any group associations or alumni groups that offer lower insurance rates. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.

9. Review your policy limits and the value of your home and possessions annually. Some items depreciate and may not need as much coverage.

10. See if there's a government-backed insurance plan. In some high-risk areas, such as the coasts, federal or state governments may back plans to lower rates. Ask your agent. 

Sep. 17, 2007 - Hidden Home Defects

Hidden Home Defects to Watch Out For

No home is flawless, but certain physical problems can be expensive. Watch for:

1. Water leaks: Look for stains on ceilings and near the baseboards, especially in basements or attics.

2. Shifting foundations: Look for large cracks along the home's foundation.

3. Drainage: Look for standing water, either around the foundation of the home of in the yard.

4. Termites: Look for weakened or grooved wood, especially near ground level.

5. Worn roofs: Look for broken or missing copings and buckled shingles as well as water spots on ceilings.

6. Inadequate wiring: Look for antiquated fuse boxes, extension cords (indicating insufficient outlets), and outlets without a place to plug in the grounding prong.

7. Plumbing problems: Very low water pressure, banging in pipes.

If you are not an expert, it may be difficult for you to discover or identify these problems. Getting a home inspection alerts you to any pitfalls in the property. Call or e-mail me any time to ask any questions or for a home inspection referral.

Sep. 16, 2007 - Marketing Your Home

How to Market Your Home

Hopefully, these valuable tips will help you achieve your goal of selling your home.

Develop a Marketing Plan

Selling your home requires developing your own marketing plan, getting prepared to sell your home, than executing your plan.

Developing a strategy for selling your home and gaining access to the tools that make it easy to attract potential buyers are both vital if you intend to be successful. Properly marketing your home is the best way to sell it quickly and easily. The satisfaction of selling your home on your own can't be matched.

Selling your property doesn't have to be a career objective. Learning the terminology and mastering the necessary marketing strategies simply is not rocket science. The real skill is finding objective and quality information.

Multiple Listing Service (MLS)

The MLS is an agent's primary marketing tool and a database of homes for sale with detailed information about each listing, with easy access for buyers who have real estate agents. It's the MLS exposure that accounts for about 70% to 80% of all home sales. Only Realtors and other members of the Realtors Association have access to the data on the MLS. Basically what an agent can do that you can't is to place your home on the Multiple Listing Service.

Flat Fee MLS Service

There are new alternatives today that allow you to place your property on the Multiple Listing Service for a one time flat fee. Instead of paying the listing agent a percentage of the sales price, usually 6%, the property is advertised to every REALTOR in your local MLS region offering a commission, usually 3%, to any agent that delivers a buyer. And you retain the right to sell your home on your own and pay absolutely no commission.

Marketing Resources

Marketing strategies available to you include many of the same resources REALTOR's use, which include yard signs, brochures or flyers, classified ads and electronic marketing. Many online classified ads are free, Internet listings give you the opportunity to provide photos and a host of text based information about your home for sale. Internet exposure is about the best you can get without listing your home on the Multiple Listing Service.

A recent survey of potential homebuyers conducted by the Economic Research Group of the National Association of Realtors found that 23% of all potential homebuyers have searched for a home online. 58% of them found that online home searching to be very valuable. 42% have visited a home viewed on the Internet, 23% of them made an offer or purchased a home found on the web, and were most interested in the detailed information and multiple photos that the classified listings provide.

There is one big advantage that you have over the professional agent. You know your homes features and the neighborhood better than anyone else. You have a great product (your home) and the product knowledge to sell it. All that's left is to tell the world about it.

Next to establishing the right price, marketing your home well is the surest way to attract qualified buyers. Of all the steps in the home selling process, marketing can be one of the most time intensive. Your goal is to attract as many potential buyers as possible to see your home in order to realize the highest and best price.

Some of the best marketing tools for selling a home are not complicated or expensive. In fact, the best lead generators are often very simple. When creating a marketing plan you will need to assemble the marketing materials which should include the following:

For Sale Sign

Widely recognized as one of the best marketing tools when selling By-Owner. It should be big enough for the passersby to read easily, and it should always include a phone number.

Advertising

Running the right ads will generate leads, but you want to target your buyer with the right language in the right places.

Internet advertising is an obvious choice for anyone with computer access because the web offers tremendous exposure. Running newspaper classified ads can also be very beneficial. Advertise in the large regional newspaper and any smaller local papers that carry real estate ads and have wide readership. Include information about your Internet listings so potential buyers have access to photos and additional information.

Home Flyer

This is your property's "brochure." The purpose of this flyer is to provide quick facts and help buyers remember your property, so it should be clear and brief. Provide all the pertinent facts (address, price, number of bedrooms and bathrooms), Highlight special features, provide your contact information and include a picture. Put flyers in a tube on your yard sign for people to take, and always provide them to anyone who views your house.

Marketing your home well and achieving maximum exposure is the best way to attract potential buyers.

Networking

Network online and in your neighborhood. E-mail your Internet listing information to friends and family so that they can keep their eyes out for a buyer. Let people in your town and neighborhood know that your home is for sale.

Open House

There are many different opinions about the effectiveness of an open house. Many in the industry feel that it is rare for a buyer to actually purchase a home at an open house, but you may want to try. If you are home on the weekend anyway, it can't hurt.

Offering Agent Incentives

Consider offering a commission to a real estate agent who can deliver a buyer. If you decide to offer this, distribute your flyers to local real estate offices informing them that you will cooperate with agents. Add a rider to your yard sign indicating "broker cooperation" and also in your classified ads.

Don't Discriminate

Treat every prospective buyer the same, regardless of race, color, religion, sex, handicap, family status, or national origin. Discrimination is against the law.

Although, our home marketing plan can make many aspects of advertising and selling your home much easier, selling by yourself requires an additional commitment of time and energy. Still, over 900,000 homes are sold every year in the U.S. without the involvement of a real estate broker. About 20% of annual home sales are accomplished on a "For-Sale-By-Owner" basis.

With knowledge, common sense and patience, you can sell your own home.

Call or e-mail me any time to ask any questions you may have.

Sep. 16, 2007 - Questions the Homebuyer Should Ask A Lender or Broker

Questions the Homebuyer Should Ask a Lender or Broker

As a consumer considering the purchase and financing of a home you may realize a number of benefits by being better informed about mortgage practices. The questions below are designed to assist the borrower when interviewing lenders or brokers. Borrowers have rights and remedies and deserve to expect a reasonable and professional level of competent service from the mortgage broker or lender.

Answers to these and other questions can help guide the decision making process in selecting not only the best loan program, but also the best lender or broker. Like mortgage products, mortgage services are not necessarily the same. Become an informed consumer before you borrow.

• In what ways will the mortgage services you provide offer financial benefits to me throughout my home ownership and set you apart from other mortgage brokers and lenders?
• How will you insure that I will be reasonably protected and informed throughout the loan process?
• Will you disclose to me all fees and rebates that you or your company expect to earn as a result of placing my mortgage, whether those fees or rebates are paid directly or indirectly by me?
• Is it your company policy to disclose sales price and contract terms to the appraiser you hire to evaluate the property on my behalf? How will this disclosure or non-disclosure benefit or harm my financial interests?
• Will you explain in terms I can understand the purpose of all my closing expenses and who receives them, as well as an explanation of the fee amounts you expect to earn?
• Typically, what possible property defects, or adverse environmental conditions, do you require be repaired or cured as a condition or loan approval and /or loan funding?
• What suggestions about the various available loan programs would you recommend to help insure the best possible equity realization from a subsequent resale of my property?
• How far in advance of closing will you furnish me with a closing (HUD-1) statement?
• How can you assure me that I can avoid paying "junk fees" and unnecessary add-on loan expenses?
• What information are you required to provide other parties, such as the property owner and the real estate agents about my loan, loan application, appraisal or lender repair requirements?
• If I pay for a copy of my credit report and appraisal report, how quickly will you furnish copies of those items to me?
• If I make the decision not to use your company, will I get my original loan package back, when will I receive it, and what expenses that I pay in advance will and will not be refundable?
• Who can pay a portion or all of my closing expenses and are there any limitations on how much they can pay?
• Will you attend the closing of my purchase transaction to answer additional questions about my mortgage obligations and the loan documents I am required to sign?
• If your actions harm me in any way, will your company reimburse all fees to me that you and your company receive as a result of placing my loan, regardless of who paid those fees?
• If we have a dispute concerning our business matters together, will you require me to mediate these differences between us?
• Will you furnish me with a list of past borrowers for reference purposes?
• Do you intend to sell my loan and, if so, how will that process benefit or harm me when I later expect services from you concerning my loan?
• How can you help me maximize the tax deductions of my closing expenses?
• Under what circumstances will you recommend that I refinance my mortgage to reduce costs and/or to enhance my equity position?
• What subsequent financial or other planning services will you provide me after the loan closing and when will those services be offered?
• Will you aggressively work to help me avoid sub-prime interest loans?

Call or e-mail me any time to ask any question about buying a home or refer you to a lender. 

Sep. 12, 2007 - Tips For Homebuyers

Eight House-Hunting Tips for the Homebuyer

Buying a home? These eight tips can help make your house-hunting experience positive and rewarding:

1. Location Counts.

You've probably heard the old real estate joke about "location, location, location," but the point still bears repeating. Location is crucial. How far are you really willing to commute to your place of employment? How good are the local schools, shopping centers, public transportation, services and other public amenities? Will your new home be next to a vacant lot or a commercial property? Even a picture-perfect dream home can be a mistake if it's in an undesirable location, and a poor-location home can be a particularly bad choice if you anticipate reselling the home within a few years. Ask how I can work as YOUR representative, and ensure "location".

2. Make a list.

Do you (and your spouse, if you're married) really know what you need and want in your home? You'll save yourself many hours of shopping (and potentially arguing) if you make a list ahead of time. Zero in on the features you must have, would like to have, definitely don't want and would prefer not to have. Your goal is to find the right home for your family without falling in love with one that doesn't suit your needs.

Tip: Start compiling your wish list by thinking about what you like and dislike about your current residence.

3. Do your homework.

Not long ago, consumers had very little access to information about recent home sales prices, market trends, homes on the market, neighborhood statistics and the home-buying process. Today, all this information and more is available on the Internet. Go surfing. Get educated. Become empowered. Again though, having a Buyer's Agent is the best way to go. Ask me for references that can attest to how I helped them.

4. Get pre-qualified or pre-approved for a mortgage.

Your top-dollar home price is a function of your household income, your creditworthiness, interest rates, the type of loan you select and how much ready cash you have for the down payment and closing costs, among other factors. Rather than guessing or estimating how much you can afford to spend, ask a lender or mortgage broker to give you a full assessment and a letter stating how much you're qualified to borrow. The true amount may be much more or much less than you think. It is also a selling point to the seller when you make an offer and can say in the offer that you are pre-approved or pre-qualified. The seller "sees" the money behind the offer.

5. Use a checklist.

Touring multiple homes is a confusing experience for most people. Rather than relying on memory, make notes about the homes you visit. Turn your priorities into a personalized home-shopping checklist and use it track the features of each home. I provide my Clients with a checklist to document this information.

6. Wear comfortable clothing and sturdy shoes.

House-hunting can be tiring. There's no sense in torturing your body or feet unnecessarily.

7. Be prepared to make an offer.

House-hunting can also be frustrating, especially if you know in your heart you're not really emotionally or financially ready to buy a home. If you're not ready, don't put yourself through the exercise. If you are ready, go through a blank Purchase Contract ahead of time so you'll know what decisions you'll face when you make an offer. I can provide you with a sample Purchase Contract for your review.

8. Relax.

Granted, buying a home is a major life-altering event. But it's not worth making yourself insanely crazy or super-duper stressed. Save time at the end of your house-hunting expedition to unwind, calm your thoughts and emotions and keep the whole experience in perspective.

If you have any questions at any time, feel free to contact me: 

Sep. 12, 2007 - Eight Easy Steps to Sell Your Home

Eight Easy Steps To Sell Your Home

STEP 1: PREPARE YOUR HOME TO SELL - MAKE IT LOOK GREAT

Presentation is the "key" to selling your home! Homebuyers are attracted to clean, spacious and attractive houses. Your goal is to dazzle buyers. Brighten-up your house and remove all clutter from counter tops, tables, and rooms. Scrub down your house from top to bottom. Make it sparkle. Simple visual improvements, such as trimming trees, planting flowers, fixing squeaking steps, broken tiles, shampooing rugs, and even re-painting a faded bedroom will greatly enhance the appeal of your home. Also, make sure your home smells good. After preparing your home invite a neighbor over to walk through your house like a buyer would. Get their opinion on how it "shows".

STEP 2: PRICE YOUR HOME REALISTICALLY

DO NOT OVER PRICE YOUR HOME. If you over price your home, it reduces the buyer's interest, makes competing homes look like better values, and can lead to mortgage rejections once the appraisal is in. When you over price your home, it is the single biggest reason why many for sale by owner homes sellers do not sell their homes successfully. Remember: the home selling market dictates the price (not what you think it should be worth).

One of the best ways to correctly price your house is to find out how much other homes similar to your own recently sold for in your neighborhood. Talk to homesellers, buyers and check out the real estate listings in your local newspaper.

Usually, if you set the price of your home at 5 to 10 percent above the market price, you are likely to end up with an offer close to your home's true value. Also, you may try calculating the cost per square foot of your home compared to the house selling prices in your area (divide list price by square footage of livable space). If your house has more features or other desirable qualities, set a slightly higher selling price.

The easiest way to accurately price your home is to contact your local home appraiser. Finally, set the selling price just under a whole number as $469,900 rather than $470,000.

STEP 3: GET A REAL ESTATE LAWYER

To be on the safe side, you may want to consider hiring a real estate attorney. Even though it's an additional expense, a lawyer will protect your interests throughout the entire transaction. An experienced real estate lawyer can help you evaluate complicated offers (those with a variety of conditions), act as an escrow agent to hold the down payment, evaluate complex mortgages and/or leases with options to buy, review contracts and handle your home's closing process. They can also tell you what things, by law, you must disclose to buyers prior to a sale.

In some areas, title companies will handle all aspects of the transaction and have in-house legal departments that can assist you with legal issues that may arise.

Unless you're significantly experienced in the home selling process, having a real estate lawyer at your side provides peace-of-mind. You know you've got someone looking out for your interests, not just the buyers.

STEP 4: MARKETING YOUR HOME

Advertise, advertise, and advertise. That is the way to sell your home faster.

Most home buyers quickly scan ads in print or on the Internet. It is important that your house stands out. For example, you may want to add a title line, such as "Priced Below Market" or "Family Friendly." Stay away from industry jargon and use language that makes homebuyers comfortable.

STEP 5: NEGOTIATING AN OFFER ON YOUR HOME

Advertise, advertise, and advertise. That is the way to sell your home faster.

Most home buyers quickly scan ads in print or on the Internet. It is important that your house stands out. For example, you may want to add a title line, such as "Priced Below Market" or "Family Friendly." Stay away from industry jargon and use language that makes homebuyers comfortable.

Home Photos

Yes, a picture is worth a thousand words!

If you are taking a photo of your home, be sure that the front yard, back yard, and driveway is uncluttered. Remove bikes, garbage cans and parked cars. The same applies for interior shots. People are looking to buy your house, not your possessions. Think of furniture as props and the room a stage. Move things around if you have to. Also, take lots of house photos. Digital cameras cost are a dime a dozen today. I am sure you can find one within your budget. They are also very easy to use with the point and shoot technology. Your home deserves to be shown. The more you shoot, the better the odds are that you'll get a few really go shots.

Lawn signs

Lawn signs are one the most important marketing tools for you to use. They attract attention to your home. Signs send a message to homebuyers letting them know your beautiful home is for sale.

Open houses

Open houses are sometimes a good way to attract buyers to your home. Real estate agents conduct open houses for two reasons: 1.) Clients expect them and 2.) They are a good way to attract buyers, not just for the open house but for all houses for sale in the realtor's area. Yes, your competition. The fact is that very few houses sell due to an open house itself. List your open house in the newspaper or online.

Home Brochures/Information sheets

Yes, it is a good idea to create an information sheet about your home, with pictures and features of your home to give potential buyers who visit your home.

You are your home's best salesman

Who knows your home better than you? As every salesman knows, to be effective you have to really know your product. Sell your neighborhood as well as your house. Show enthusiasm, but don't get caught-up talking too much about how fond memories about your house.

When a homebuyer makes an offer, you should consult with your attorney. Buyers and sellers have an Attorney Review Period, which is usually three days, to cancel or amend the offer. The offer becomes a contract at the end of the Attorney Review Period, and is binding. Many of your home's offers can be complicated and contain special clauses that favor the buyer.

Purchase price isn't everything. Carefully consider the purchase contract's other terms and conditions. Too many contingencies can leave loopholes and cause a deal to collapse. Especially, avoid contingencies that favor the buyer, such as linking the escrow closing date to the buyer's sale of their current home. If the buyer insists on such terms, include a so-called kick-out clause in the contract that will allow you to consider other offers if the buyer isn't able to sell within a certain period of time.

Review your buyer's financial qualifications

Is the buyer pre-approved or pre-qualified? How much of a loan is the buyer seeking? Unless you are in an active market, lenders tend to shy away from underwriting a deal in which the purchase price is higher than the nearest comparable sale and the buyer is putting less than 10% down. If this is the case, your buyer may not be able to obtain financing.

Know the home selling market

How you judge an offer also can depend on market conditions. If the selling market is slow, you may feel vulnerable, especially if circumstances are pressing you to sell. Make sure any offer you accept does not keep you in escrow longer than 30 days. In a hot market where multiple offers are likely, be wary of countering more than one offer at a time (you could end up in legal trouble if two buyers both accept your counter offer). Also be wary of offers that promise more money but contain poor contract terms (long escrow, multiple contingencies, etc.).

If you feel the home's offer is insufficient, make a counter offer. Rarely is a first offer the buyer's absolute highest price they are willing to pay. Negotiating is part of the home selling process.

Step 6: HOME INSPECTIONS

All standard real estate contracts are going to give the prospective homebuyer the right to inspect your property - so be prepared. Under a general inspection you are obligated to make major repairs to appliances, plumbing, septic tanks, electrical and heating systems - or the buyer may cancel the offer. The inspection will also include your property's roof, as well as a termite inspection (in some states, house sellers must provide proof that the home is termite free).

If you are concerned about how your home will fair when inspected, you may want to visit your local inspector. They can conduct an inspection for you before a potential buyer has one done. This way, you can address the problems before a buyer stumbles upon them.

Once the inspections are complete, the buyer makes an application to a mortgage lender.

Step 7: BUYER APPRAISALS AND OTHER DETAILS

The mortgage lender will order an appraisal of your home to make sure they are not paying more than the house is worth. This action protects the lender, buyer and you. The lender may also order a surveyor to make sure that the property boundaries are properly laid out. They will also order a title search to determine if there are any liens against your property. These tasks are all the responsibility of the buyer and/or their attorney.

At this point too, the mortgage company will issue a commitment. Again, the buyer (and their attorney) must complete all conditions listed on the mortgage commitment.

Prior to closing, you should notify your lender that you will be paying off your mortgage. After a closing date has been agreed to, you should contact your utility providers and advise them of your final billing date.

Step 8: CLOSING

The day of the closing, the homebuyer will do a final "walk through" of the property to make sure all agreed repairs are completed and that the home is in the same condition as when the buyer made their offer. If problems arise that this point, the closing can still take place with funds held in escrow to remedy the problem.

Closings usually occur 30 - 45 days after you have signed the sales contract. Depending on what state you reside in, you may close with an attorney, or with a title company. At the closing, all monies will be collected, any existing loans or leans will be paid, the deed will be transferred, and insurance will be issued insuring a free and clear title. The home seller will receive the proceeds of their home in one to two business days after the closing.

Conclusion

This step-by-step home selling guide is a general overview of the process when selling a home. Each state has slightly different laws and customs as they relate to the transaction process.

Selling a home yourself can be time consuming, but the financial rewards can be tremendous. But if at any point of your selling process becomes to overwhelming, contact me, I will be glad to assist you.