9 years ago everything changed.
Sabtu, 11 September 2010
Rabu, 08 September 2010
Short sales take time to close
Why do Short Sales Take so Long to Close?
RISMEDIA, September 8, 2010--Real estate professionals know that a short sale transaction can take months for it to be approved and closed.
The reality is that short sales usually take three to four times as much as a regular sale to finally get to the closing. From the time the Realtor actually gets the property under contract to the time the lender approves, it could take anywhere from 30 days to six months, depending on how fast the borrower provides critical information for lender and Investor approval.
Even then, you still have one more variable to account for which is the buyer waiting for all this time to get the contract approved by the lender. For this, setting the expectations is a key factor in any short-sale transaction.
Buyers Expectations
Buyers who make an offer on a short-sale property need to know that lenders have to "reverse underwrite" a short-sale and make sure that they are allowing the sale to happen close to market value. I say "reverse underwrite" because instead of determining affordability, they will look for "un-affordability."
They will check the seller's financials to verify that they can't afford the house anymore and consequently, they will order a price opinion from a broker or certified appraiser, commonly known as BPO (Broker's Price Opinion) to make sure the house is being sold close to market value. If the offer is too low compared to what is owed, it will make more financial sense to the Lender to just foreclose the property and re-sell it as an REO (Bank-Owned Property). All this will happen while the buyer is still waiting for a response so it is very important to set the expectations correctly from the beginning to avoid losing the buyer close to the end of the process.
Seller's Expectations
On the other hand, it is important to also educate the Seller and set the expectations with them from the beginning. They need to understand that the Lender takes its time responding, but when they do, they usually give a 72-hour timeframe to respond or provide the missing documentation. If the documentation is not provided within the specified timeframe, it usually ends up in a closed file and countless work-hours lost. Another common situation that is happening very often is borrowers being served with foreclosure paperwork from either the lender or homeowner's association while the short-sale is being processed. It is crucial to let them know that this might happen so that they are prepared for it and receive the documents knowing that they are in the best hands. Foreclosure and short-sale are parallel processes and one does not cancel the other. Sometimes a short-sale might delay a final sale date, but it will definitely not stop the Lender from starting the foreclosure proceedings.
Closing the Short Sale
Short sale success comes from educating not only the seller but also the buyer and everybody else involved in the transaction. Setting the right expectations is the most crucial part of a short sale. There are many hours involved in processing a short sale and the last thing you want is a seller or buyer walking away because the expectations were not set correctly.
RISMEDIA, September 8, 2010--Real estate professionals know that a short sale transaction can take months for it to be approved and closed.
The reality is that short sales usually take three to four times as much as a regular sale to finally get to the closing. From the time the Realtor actually gets the property under contract to the time the lender approves, it could take anywhere from 30 days to six months, depending on how fast the borrower provides critical information for lender and Investor approval.
Even then, you still have one more variable to account for which is the buyer waiting for all this time to get the contract approved by the lender. For this, setting the expectations is a key factor in any short-sale transaction.
Buyers Expectations
Buyers who make an offer on a short-sale property need to know that lenders have to "reverse underwrite" a short-sale and make sure that they are allowing the sale to happen close to market value. I say "reverse underwrite" because instead of determining affordability, they will look for "un-affordability."
They will check the seller's financials to verify that they can't afford the house anymore and consequently, they will order a price opinion from a broker or certified appraiser, commonly known as BPO (Broker's Price Opinion) to make sure the house is being sold close to market value. If the offer is too low compared to what is owed, it will make more financial sense to the Lender to just foreclose the property and re-sell it as an REO (Bank-Owned Property). All this will happen while the buyer is still waiting for a response so it is very important to set the expectations correctly from the beginning to avoid losing the buyer close to the end of the process.
Seller's Expectations
On the other hand, it is important to also educate the Seller and set the expectations with them from the beginning. They need to understand that the Lender takes its time responding, but when they do, they usually give a 72-hour timeframe to respond or provide the missing documentation. If the documentation is not provided within the specified timeframe, it usually ends up in a closed file and countless work-hours lost. Another common situation that is happening very often is borrowers being served with foreclosure paperwork from either the lender or homeowner's association while the short-sale is being processed. It is crucial to let them know that this might happen so that they are prepared for it and receive the documents knowing that they are in the best hands. Foreclosure and short-sale are parallel processes and one does not cancel the other. Sometimes a short-sale might delay a final sale date, but it will definitely not stop the Lender from starting the foreclosure proceedings.
Closing the Short Sale
Short sale success comes from educating not only the seller but also the buyer and everybody else involved in the transaction. Setting the right expectations is the most crucial part of a short sale. There are many hours involved in processing a short sale and the last thing you want is a seller or buyer walking away because the expectations were not set correctly.
Minggu, 05 September 2010
Mortgages
I'm sure by now, regardless of what lender(s) you've been dealing with lately, you've noticed a profound change in the way loans are being underwritten. If you haven't, you WILL. These massive changes are creating delayed closings, and have caught us all off-guard, INCLUDING the loan officers. Here's why.
As you may already know, Fannie Mae & Freddie Mac, which are Government Sponsored Enterprises (GSEs), have been under close government scrutiny ever since the housing market began to take a dive. The govt. has been trying to determine if they need to take over control of the two GSEs because of their apparent lack of self-control, or whatever your personal opinion may be. As a result, the two giants have been searching for ways (in my opinion) to offset some of the losses they've incurred over the last year or so.
Very recently, lenders began feverishly stressing the importance of loan quality and making sure every "T" was crossed & every "I" was dotted. The reasons behind this were that Fannie & Freddie had now begun not only scrutinizing the loans they were buying currently, but were going BACK & auditing loans they'd previously bought. You see, when a lender gives a mortgage, they almost always sell the "paper". The customer may always make their payment to that lender for the life of the loan, but that doesn't mean the paper itself wasn't sold to one of the GSEs to be included in mortgage-backed securities. In other words, although the mortgage has been sold, the lender will always SERVICE the loan. This means that there will never be a change to the customer's way of paying their mortgage payment each month. This is the primary means of income for most lenders, contrary to the belief that most lenders make their money from the interest rates they charge. Fannie & Freddie, as part of their contract with lenders, have the authority to require lenders to buy back any mortgage sold to them that has been proven to be inaccurate, incorrect, fraudulent, etc. For this reason, Fannie & Freddie have been going through everything they have & making lenders, past & present, buy back mortgages where, for all intents & purposes, everything wasn't underwritten perfectly. No missing dates, no name discrepancies between the loan application and the deed of trust, no addresses shown on the credit report that weren't on the loan application, etc. These are only two or three of the HUNDREDS of items these two GSEs are searching for in an effort to require lenders to buy their loans back.
The true "wealth" of a bank is dictated by how swiftly their cash is moving within the organization. They don't have the capital to place every loan they do in portfolio & tie that particular money up for 30 years. A bank can typically loan (unless its changed) 8 x the amount of assets they are currently holding. This is determined by the federal government. So, as you can see they need to keep their money "free" in order to continue lending.
For all these reasons, underwriters have been asking for items from customers that are sometimes viewed as ridiculous & unbelievable. Freddie & Fannie have forced lenders to throw common sense to the wayside because if it isn't documented, it doesn't work. Underwriters are reprimanded or their underwriting authority is REVOKED if they receive too many of these problems with loans they have underwritten. Underwriting is how they put groceries in THEIR pantry, just like we do what we do. No underwriter wants the bank they work for to have to buy back a loan because they forgot something, overlooked something, or just decided to use "common sense" to underwrite the loan.
This is a new time, ladies & gentlemen, and I wanted (if nobody else had yet) to shed some light on why things had changed so drastically, so quickly. The loan officers don't even KNOW how to respond to this, but we're doing the best we can.
Here is an article that was published on August 19th, 2010 on the website www.housingwire.com . It will also help us understand what's going on.
Fitch: Big Four Banks Face $180bn in Buybacks from Fannie and Freddie
Thursday, August 19th, 2010
Government sponsored enterprises (GSEs) Freddie Mac and Fannie Mae may exercise the right to force the big four banks, JP Morgan (JPM: 37.08 +0.03%), Citigroup (C: 3.7282 -1.63%), Bank of America (BAC: 12.834 -1.43%), and Wells Fargo (WF: 34.95 -2.94%), to repurchase up to $180bn delinquent mortgages, according to a report released by Fitch Ratings Wednesday.
As of June 30, the GSEs hold $354.5bn troubled mortgages, with 50% serviced by the big four banks. Fitch estimates the big four banks already received repurchase requests up to $19.1bn in the Q110 and Q210 — $10.7bn of which related to the GSEs.
Fannie and Freddie are "actively exercising their right to put back to the original lenders a considerable amount of the troubled mortgages in their portfolios," write analysts Tom Abruzzo and Christopher Wolfe. The agencies have a right to require lenders to buyback delinquent mortgages, if it is determined the mortgage loan did not meet GSE investor underwriting or eligibility standards.
Fitch said it is undertaking a review of Fannie and Freddie to assess whether the increased reserves are just a part of the flood of troubled mortgages or whether they are expanding their interpretations of what constitutes an eligible mortgage under existing representation and warranty provisions.
"Fitch is concerned that a more aggressive request for loan repurchases could potentially expose banks with large mortgage origination operations to future losses that have not been previously incorporated into Fitch's existing exposures, and effectively into current ratings," the report said.
Under a mild loss scenario, where the banks buyback 25% of delinquent loans and recover 60% of the money, Fitch expects cumulative losses around $17bn.
Under a moderate loss scenario, in which the banks buyback 35% of delinquent loans and recover 55% of the money, Fitch expects losses around $27bn.
Under a more adverse scenario, if banks repurchase 50% of troubled mortgages and recover only half of the original investment, Fitch expects losses of about $42bn.
These figures do not include the banks' ability to cure deficiencies in loans which could lessen loss. Fitch believes the moderate scenario is the most likely and said it will continue to monitor the on-going developments between banks and the GSEs related to mortgage loan repurchases.
As you may already know, Fannie Mae & Freddie Mac, which are Government Sponsored Enterprises (GSEs), have been under close government scrutiny ever since the housing market began to take a dive. The govt. has been trying to determine if they need to take over control of the two GSEs because of their apparent lack of self-control, or whatever your personal opinion may be. As a result, the two giants have been searching for ways (in my opinion) to offset some of the losses they've incurred over the last year or so.
Very recently, lenders began feverishly stressing the importance of loan quality and making sure every "T" was crossed & every "I" was dotted. The reasons behind this were that Fannie & Freddie had now begun not only scrutinizing the loans they were buying currently, but were going BACK & auditing loans they'd previously bought. You see, when a lender gives a mortgage, they almost always sell the "paper". The customer may always make their payment to that lender for the life of the loan, but that doesn't mean the paper itself wasn't sold to one of the GSEs to be included in mortgage-backed securities. In other words, although the mortgage has been sold, the lender will always SERVICE the loan. This means that there will never be a change to the customer's way of paying their mortgage payment each month. This is the primary means of income for most lenders, contrary to the belief that most lenders make their money from the interest rates they charge. Fannie & Freddie, as part of their contract with lenders, have the authority to require lenders to buy back any mortgage sold to them that has been proven to be inaccurate, incorrect, fraudulent, etc. For this reason, Fannie & Freddie have been going through everything they have & making lenders, past & present, buy back mortgages where, for all intents & purposes, everything wasn't underwritten perfectly. No missing dates, no name discrepancies between the loan application and the deed of trust, no addresses shown on the credit report that weren't on the loan application, etc. These are only two or three of the HUNDREDS of items these two GSEs are searching for in an effort to require lenders to buy their loans back.
The true "wealth" of a bank is dictated by how swiftly their cash is moving within the organization. They don't have the capital to place every loan they do in portfolio & tie that particular money up for 30 years. A bank can typically loan (unless its changed) 8 x the amount of assets they are currently holding. This is determined by the federal government. So, as you can see they need to keep their money "free" in order to continue lending.
For all these reasons, underwriters have been asking for items from customers that are sometimes viewed as ridiculous & unbelievable. Freddie & Fannie have forced lenders to throw common sense to the wayside because if it isn't documented, it doesn't work. Underwriters are reprimanded or their underwriting authority is REVOKED if they receive too many of these problems with loans they have underwritten. Underwriting is how they put groceries in THEIR pantry, just like we do what we do. No underwriter wants the bank they work for to have to buy back a loan because they forgot something, overlooked something, or just decided to use "common sense" to underwrite the loan.
This is a new time, ladies & gentlemen, and I wanted (if nobody else had yet) to shed some light on why things had changed so drastically, so quickly. The loan officers don't even KNOW how to respond to this, but we're doing the best we can.
Here is an article that was published on August 19th, 2010 on the website www.housingwire.com . It will also help us understand what's going on.
Fitch: Big Four Banks Face $180bn in Buybacks from Fannie and Freddie
Thursday, August 19th, 2010
Government sponsored enterprises (GSEs) Freddie Mac and Fannie Mae may exercise the right to force the big four banks, JP Morgan (JPM: 37.08 +0.03%), Citigroup (C: 3.7282 -1.63%), Bank of America (BAC: 12.834 -1.43%), and Wells Fargo (WF: 34.95 -2.94%), to repurchase up to $180bn delinquent mortgages, according to a report released by Fitch Ratings Wednesday.
As of June 30, the GSEs hold $354.5bn troubled mortgages, with 50% serviced by the big four banks. Fitch estimates the big four banks already received repurchase requests up to $19.1bn in the Q110 and Q210 — $10.7bn of which related to the GSEs.
Fannie and Freddie are "actively exercising their right to put back to the original lenders a considerable amount of the troubled mortgages in their portfolios," write analysts Tom Abruzzo and Christopher Wolfe. The agencies have a right to require lenders to buyback delinquent mortgages, if it is determined the mortgage loan did not meet GSE investor underwriting or eligibility standards.
Fitch said it is undertaking a review of Fannie and Freddie to assess whether the increased reserves are just a part of the flood of troubled mortgages or whether they are expanding their interpretations of what constitutes an eligible mortgage under existing representation and warranty provisions.
"Fitch is concerned that a more aggressive request for loan repurchases could potentially expose banks with large mortgage origination operations to future losses that have not been previously incorporated into Fitch's existing exposures, and effectively into current ratings," the report said.
Under a mild loss scenario, where the banks buyback 25% of delinquent loans and recover 60% of the money, Fitch expects cumulative losses around $17bn.
Under a moderate loss scenario, in which the banks buyback 35% of delinquent loans and recover 55% of the money, Fitch expects losses around $27bn.
Under a more adverse scenario, if banks repurchase 50% of troubled mortgages and recover only half of the original investment, Fitch expects losses of about $42bn.
These figures do not include the banks' ability to cure deficiencies in loans which could lessen loss. Fitch believes the moderate scenario is the most likely and said it will continue to monitor the on-going developments between banks and the GSEs related to mortgage loan repurchases.
Sabtu, 04 September 2010
Sell your Home quicker
For Your Clients: 10 Low-Cost Tips to Improve Your Home's Appeal
By Paige Tepping
RISMEDIA, September 4, 2010--When selling your home, the goal is to sell it quickly for the highest price while investing as little as possible in renovations. With a limited budget and a little effort, you can greatly increase your home's appeal by focusing on what prospective buyers can see on their first visit. The experts at BuyOwner.com offer the following recommendations for preparing a house for sale and staging it for showings.
Tip #1: Refresh the exterior
First impressions count when it comes to selling a home. Most buyers won’t even leave their car if they don’t find the exterior appealing. The best ways to improve your home’s exterior include:
-Repairing and/or replacing trims, shutters, gutters, shingles, mailboxes, window screens, walkways and the driveway.
-Painting siding, trim and shutters and lamp and mailbox posts.
-Pressure washing vinyl siding, roofs, walkways and the driveway.
-Washing windows.
Tip #2: Spruce up the lawn and landscape
Home buyers associate the condition of your lawn and landscaping with the condition of your home’s interior. By improving the outside, you affect buyers’ impression of the entire property. The best ways to enhance the yard include:
-Mowing and edging the lawn.
-Seeding, fertilizing and weeding the lawn.
-Keeping up with regular lawn maintenance by frequent watering.
-Trimming and/or removing overgrown trees, shrubs and hedges.
-Weeding and mulching plant beds.
-Planting colorful seasonal flowers in existing plant beds.
-Removing trash, especially along fences and underneath hedges.
-Sweeping and weeding the street curb along your property.
Tip #3: Create an inviting entrance
The front door to your home should invite buyers to enter. The best ways to improve your entry include:
-Painting the front door in a glossy, cheerful color that complements the exterior.
-Cleaning, polishing and/or replacing the door knocker, locks and handles.
-Repairing and/or replacing the screen door, the doorbell, porch lights and house numbers.
-Placing a new welcome mat and a group of seasonal potted plants and flowers by the entry.
Tip #4: Reduce clutter and furniture
A buyer cannot envision living in your home without seeing it. A home filled with clutter or even too much furniture distracts buyers from seeing how they can utilize the space your home offers. If you have limited storage space, you may want to consider renting a temporary storage unit to place items you wish to keep. The best ways to declutter your home include:
-Holding a garage sale to prepare for your move, getting rid of unnecessary items.
-Removing clutter such as books, magazines, toys, tools, supplies and unused items from counter tops, open shelves, storage closets, the garage and basements.
-Storing out-of-season clothing and shoes out of sight to make bedroom closets seem roomier.
-Removing any visibly damaged furniture.
-Organizing bookshelves, closets, cabinets and pantries. Buyers will inspect everything.
-Putting away your personal photographs, unless they showcase the home. Let buyers see themselves in your home.
-De-personalize rooms as much as you can.
Tip #5: Clean, clean, clean
The cleanliness of your home also influences a buyer's perception of its condition. The appearance of the kitchen and bathrooms will play a considerable role in a buyer's decision process, so pay particular attention to these areas. The best ways to improve these areas include:
-Cleaning windows, fixtures, hardware, ceiling fans, vent covers and appliances.
-Cleaning carpets, area rugs and draperies.
-Cleaning inside the refrigerator, the stove and all cabinets.
-Removing stains from carpets, floors, counters, sinks, baths, tile, walls and grout.
-Eliminating house odors, especially if you have pets.
-Considering air fresheners or potpourri.
Tip #6: Make minor repairs
The small stuff does count, especially with first-time home buyers. Without dismissing the importance of repairing major items such as a leaky roof or plumbing, you do not need to spend money on replacing these items. Instead, focus on the minor repairs that will make your home visually appealing. The best ways to improve your home include:
-Repairing ceilings and wall cracks.
-Repairing faucets, banisters, handrails, cabinets, drawers, doors, floors and tile.
-Caulking and grouting tubs, showers, sinks and tile.
-Adding fresh paint to ceilings, walls, trim, doors and cabinets.
-Tightening door handles, drawer pulls, light switches and electrical plates.
-Lubricating door hinges and locks.
Tip #7: Showcase the kitchen
The heart of any home is the kitchen. If you are going to spend any money on renovations, this is the one area where you will see the greatest return. Even with a modest budget, focusing on a few key areas can make a great difference in getting the asking price for your property. The best ways to showcase the kitchen include:
-Replacing cabinet doors and hardware.
-Installing under-cabinet lighting.
-Replacing light fixtures.
-Replacing outdated shelving with pantry and cabinet organizers to maximize space.
-Baking cookies or cupcakes for a showing, to create a homey smell.
Tip #8: Stage furniture
Furniture placement can enhance the space of your home while giving buyers an idea of how to best utilize the space with their own belongings. Take some time to rethink how different areas in your house could be used. Some ideas to think about include:
-Moving couches and chairs away from walls in your sitting and family rooms to create cozy conversational groups.
-Creating a reading corner in the master bedroom.
-Clearing an empty room to set up a reading space.
-Turning an awkward space into a home office.
-Setting the dining room table with your best china.
-Set wine glasses in front of the fireplace or next to a Jacuzzi tub.
Tip #9: Light up the house
Create a sense of openness and cheerfulness in your home through its lighting. To improve the lighting try:
-Opening shades and drapes to let the sunshine warm and brighten rooms.
-Installing brighter light bulbs in rooms that tend to be dark.
-Adding additional lamps for ambient lighting.
-Turning on all the lights for a showing.
Tip #10: Add fresh touches
You can easily add color and style to your home by adding fresh touches throughout. Some ideas to consider include:
-Placing fresh floral arrangements in the entry and master bedroom.
-Placing bowls of bright-colored fruit in the family room and the kitchen.
-Filling an empty corner with a potted leafy plant.
-Setting new hand soap in the bathrooms.
-Displaying fresh towels near sinks.
By Paige Tepping
RISMEDIA, September 4, 2010--When selling your home, the goal is to sell it quickly for the highest price while investing as little as possible in renovations. With a limited budget and a little effort, you can greatly increase your home's appeal by focusing on what prospective buyers can see on their first visit. The experts at BuyOwner.com offer the following recommendations for preparing a house for sale and staging it for showings.
Tip #1: Refresh the exterior
First impressions count when it comes to selling a home. Most buyers won’t even leave their car if they don’t find the exterior appealing. The best ways to improve your home’s exterior include:
-Repairing and/or replacing trims, shutters, gutters, shingles, mailboxes, window screens, walkways and the driveway.
-Painting siding, trim and shutters and lamp and mailbox posts.
-Pressure washing vinyl siding, roofs, walkways and the driveway.
-Washing windows.
Tip #2: Spruce up the lawn and landscape
Home buyers associate the condition of your lawn and landscaping with the condition of your home’s interior. By improving the outside, you affect buyers’ impression of the entire property. The best ways to enhance the yard include:
-Mowing and edging the lawn.
-Seeding, fertilizing and weeding the lawn.
-Keeping up with regular lawn maintenance by frequent watering.
-Trimming and/or removing overgrown trees, shrubs and hedges.
-Weeding and mulching plant beds.
-Planting colorful seasonal flowers in existing plant beds.
-Removing trash, especially along fences and underneath hedges.
-Sweeping and weeding the street curb along your property.
Tip #3: Create an inviting entrance
The front door to your home should invite buyers to enter. The best ways to improve your entry include:
-Painting the front door in a glossy, cheerful color that complements the exterior.
-Cleaning, polishing and/or replacing the door knocker, locks and handles.
-Repairing and/or replacing the screen door, the doorbell, porch lights and house numbers.
-Placing a new welcome mat and a group of seasonal potted plants and flowers by the entry.
Tip #4: Reduce clutter and furniture
A buyer cannot envision living in your home without seeing it. A home filled with clutter or even too much furniture distracts buyers from seeing how they can utilize the space your home offers. If you have limited storage space, you may want to consider renting a temporary storage unit to place items you wish to keep. The best ways to declutter your home include:
-Holding a garage sale to prepare for your move, getting rid of unnecessary items.
-Removing clutter such as books, magazines, toys, tools, supplies and unused items from counter tops, open shelves, storage closets, the garage and basements.
-Storing out-of-season clothing and shoes out of sight to make bedroom closets seem roomier.
-Removing any visibly damaged furniture.
-Organizing bookshelves, closets, cabinets and pantries. Buyers will inspect everything.
-Putting away your personal photographs, unless they showcase the home. Let buyers see themselves in your home.
-De-personalize rooms as much as you can.
Tip #5: Clean, clean, clean
The cleanliness of your home also influences a buyer's perception of its condition. The appearance of the kitchen and bathrooms will play a considerable role in a buyer's decision process, so pay particular attention to these areas. The best ways to improve these areas include:
-Cleaning windows, fixtures, hardware, ceiling fans, vent covers and appliances.
-Cleaning carpets, area rugs and draperies.
-Cleaning inside the refrigerator, the stove and all cabinets.
-Removing stains from carpets, floors, counters, sinks, baths, tile, walls and grout.
-Eliminating house odors, especially if you have pets.
-Considering air fresheners or potpourri.
Tip #6: Make minor repairs
The small stuff does count, especially with first-time home buyers. Without dismissing the importance of repairing major items such as a leaky roof or plumbing, you do not need to spend money on replacing these items. Instead, focus on the minor repairs that will make your home visually appealing. The best ways to improve your home include:
-Repairing ceilings and wall cracks.
-Repairing faucets, banisters, handrails, cabinets, drawers, doors, floors and tile.
-Caulking and grouting tubs, showers, sinks and tile.
-Adding fresh paint to ceilings, walls, trim, doors and cabinets.
-Tightening door handles, drawer pulls, light switches and electrical plates.
-Lubricating door hinges and locks.
Tip #7: Showcase the kitchen
The heart of any home is the kitchen. If you are going to spend any money on renovations, this is the one area where you will see the greatest return. Even with a modest budget, focusing on a few key areas can make a great difference in getting the asking price for your property. The best ways to showcase the kitchen include:
-Replacing cabinet doors and hardware.
-Installing under-cabinet lighting.
-Replacing light fixtures.
-Replacing outdated shelving with pantry and cabinet organizers to maximize space.
-Baking cookies or cupcakes for a showing, to create a homey smell.
Tip #8: Stage furniture
Furniture placement can enhance the space of your home while giving buyers an idea of how to best utilize the space with their own belongings. Take some time to rethink how different areas in your house could be used. Some ideas to think about include:
-Moving couches and chairs away from walls in your sitting and family rooms to create cozy conversational groups.
-Creating a reading corner in the master bedroom.
-Clearing an empty room to set up a reading space.
-Turning an awkward space into a home office.
-Setting the dining room table with your best china.
-Set wine glasses in front of the fireplace or next to a Jacuzzi tub.
Tip #9: Light up the house
Create a sense of openness and cheerfulness in your home through its lighting. To improve the lighting try:
-Opening shades and drapes to let the sunshine warm and brighten rooms.
-Installing brighter light bulbs in rooms that tend to be dark.
-Adding additional lamps for ambient lighting.
-Turning on all the lights for a showing.
Tip #10: Add fresh touches
You can easily add color and style to your home by adding fresh touches throughout. Some ideas to consider include:
-Placing fresh floral arrangements in the entry and master bedroom.
-Placing bowls of bright-colored fruit in the family room and the kitchen.
-Filling an empty corner with a potted leafy plant.
-Setting new hand soap in the bathrooms.
-Displaying fresh towels near sinks.
Jumat, 03 September 2010
Remodeling tips
For Your Clients: 10 Tips for Hiring a Home Remodeling Contractor
RISMEDIA, September 3, 2010-- With the U.S. economy facing the lowest home sale statistics in fifteen years and home values continuing to slide in many regions, it's not surprising to hear that housing trends point towards a large percentage of American homeowners looking to improve and maximize their existing property investment versus buying a new home. When deciding to undertake a remodeling project however, there are several invaluable tips to keep in mind as you discuss your home make-over with potential contractors.
Through advice and stories shared by both contractors and consumers, StageofLife.com, a blogging resource for homeowners, discovered 10 important tips on how to find a trustworthy home remodeling contractor to help ensure the right person or company is hired for your next home improvement project.
Tip #1: Does Your Contractor Have Proof of Insurance?
Ask the contractor to have his insurance company mail or fax a copy of his current contractor insurance card to you. If the contractor can't do this - stay away. Why? If there is an accident at your home, you are then liable. This also applies to any sub-contractor or employee that the contractor may use - those individuals should have active insurance cards faxed or mailed to you as well.
Tip #2: Did You Check References and See Photos?
Ask for at least three references - with two of them being for the same type of project you are planning - and then call the references. Additionally, ask the contractor to provide photos of previous work, especially for the same type of project. If he produces lawn and garden photos and you're planning a bathroom remodel, you may want to check out another contractor.
Tip #3: Does Your Contractor Take Debit or Credit Cards?
Besides your ability to earn a few points, bonus miles, or cash back on your project, a good sign that a contractor is financially savvy and has a bank behind his business is his ability to take debit and credit cards. This doesn't just apply to big contracting companies. Many small, one-man shops will take cards if they have a good relationship with their business bank or credit union.
Tip #4: Manners and Appearance?
If the contractor drove his vehicle to your home to give you an estimate, take a look at the way he keeps the equipment and vehicle. Are things clean? Neatly arranged? If not - that's a big warning. The way a contractor treats his tools is a direct connection to how he'll treat your home. During the initial meeting, does the contractor present himself in a professional way? Do you feel comfortable around him or his employees? They will be working in your home after all.
Tip #5: Clean Up Policy?
Ask about the clean-up policy. For example, if your home improvement is a multi-day project, will the contractor be cleaning up at the end of every day or will he leave the dust, wood chips, and other mess laying there for day #2? The more mess in your home - the more it gets tracked around. Many homeowners find themselves with mouths gaping wide after the contractor has left for the day and their floors and home are dirty and messy around the project area.
Tip #6: Will the Contractor Put It In Writing?
Is your contractor willing to put both his bid and the scope of work in writing? If not - walk away immediately. You'll be surprised how many homeowners have been duped by contractors who verbally tell you what's included in their scope of work, but will then, in the middle of everything, require extra money to finish the remodel, thus holding you hostage with an uncompleted home project.
Tip #7: Availability?
Can the contractor get the job done in your timeline rather than his timeline? There's nothing more frustrating than if a contractor tells you that a job will be done by a certain date and then it isn't . On the flip side, if you can't find a good contractor that's willing to commit to your timeline, your expectations may be too high and you may need to adjust your timeline.
Tip #8: Does Your Contractor Use "Subs?"
Does your contractor plan on doing everything himself? Or will he "sub out" work to the "trades?" For example, if you are remodeling a bathroom, you may need a plumber, electrician, and carpenter. It's okay if the contractor subs work out to these specific trades - it shows he wants the work done right.
Also, it's fair to say that you can expect your contractor to make money off the trades, or other sub-contractors, by marking up those quotes for the project. That is a standard practice to help the general contractor recover costs in the time it takes to manage the schedule. If you don't want to spend the extra money on your contractor marking up the trade quotes, then you should prepare to project manage the remodel yourself, but know this may limit your options on contractors willing to work with you.
Tip #9: Quoting & Billing Procedure?
Ask the contractor about his quoting procedure. Will it contain general information, or will it be specific? For example - most contractors will charge you for a fuel surcharge, material up-charges, waste removal, labor, etc. Some will show you these exact costs in a line item invoice, but others roll it up into one big bill. How much detail do you want? You should clarify that with your contractor upfront.
Also - what is the payment or billing policy? Is money required upfront? If so, go back to #1 and #2 above to make sure you have the contractor's references checked and have a copy of his contractor's insurance.
Tip #10: Did Your Contractor Get the Permits?
Ask your contractor to take care of the permits. Although permits cost you money, the inspection process is meant to protect you from poor workmanship and to make sure that everything is being built to code.
By following these 10 tips for hiring a home contractor, you'll feel more confident that you've found the right contractor for your remodeling job.
RISMEDIA, September 3, 2010-- With the U.S. economy facing the lowest home sale statistics in fifteen years and home values continuing to slide in many regions, it's not surprising to hear that housing trends point towards a large percentage of American homeowners looking to improve and maximize their existing property investment versus buying a new home. When deciding to undertake a remodeling project however, there are several invaluable tips to keep in mind as you discuss your home make-over with potential contractors.
Through advice and stories shared by both contractors and consumers, StageofLife.com, a blogging resource for homeowners, discovered 10 important tips on how to find a trustworthy home remodeling contractor to help ensure the right person or company is hired for your next home improvement project.
Tip #1: Does Your Contractor Have Proof of Insurance?
Ask the contractor to have his insurance company mail or fax a copy of his current contractor insurance card to you. If the contractor can't do this - stay away. Why? If there is an accident at your home, you are then liable. This also applies to any sub-contractor or employee that the contractor may use - those individuals should have active insurance cards faxed or mailed to you as well.
Tip #2: Did You Check References and See Photos?
Ask for at least three references - with two of them being for the same type of project you are planning - and then call the references. Additionally, ask the contractor to provide photos of previous work, especially for the same type of project. If he produces lawn and garden photos and you're planning a bathroom remodel, you may want to check out another contractor.
Tip #3: Does Your Contractor Take Debit or Credit Cards?
Besides your ability to earn a few points, bonus miles, or cash back on your project, a good sign that a contractor is financially savvy and has a bank behind his business is his ability to take debit and credit cards. This doesn't just apply to big contracting companies. Many small, one-man shops will take cards if they have a good relationship with their business bank or credit union.
Tip #4: Manners and Appearance?
If the contractor drove his vehicle to your home to give you an estimate, take a look at the way he keeps the equipment and vehicle. Are things clean? Neatly arranged? If not - that's a big warning. The way a contractor treats his tools is a direct connection to how he'll treat your home. During the initial meeting, does the contractor present himself in a professional way? Do you feel comfortable around him or his employees? They will be working in your home after all.
Tip #5: Clean Up Policy?
Ask about the clean-up policy. For example, if your home improvement is a multi-day project, will the contractor be cleaning up at the end of every day or will he leave the dust, wood chips, and other mess laying there for day #2? The more mess in your home - the more it gets tracked around. Many homeowners find themselves with mouths gaping wide after the contractor has left for the day and their floors and home are dirty and messy around the project area.
Tip #6: Will the Contractor Put It In Writing?
Is your contractor willing to put both his bid and the scope of work in writing? If not - walk away immediately. You'll be surprised how many homeowners have been duped by contractors who verbally tell you what's included in their scope of work, but will then, in the middle of everything, require extra money to finish the remodel, thus holding you hostage with an uncompleted home project.
Tip #7: Availability?
Can the contractor get the job done in your timeline rather than his timeline? There's nothing more frustrating than if a contractor tells you that a job will be done by a certain date and then it isn't . On the flip side, if you can't find a good contractor that's willing to commit to your timeline, your expectations may be too high and you may need to adjust your timeline.
Tip #8: Does Your Contractor Use "Subs?"
Does your contractor plan on doing everything himself? Or will he "sub out" work to the "trades?" For example, if you are remodeling a bathroom, you may need a plumber, electrician, and carpenter. It's okay if the contractor subs work out to these specific trades - it shows he wants the work done right.
Also, it's fair to say that you can expect your contractor to make money off the trades, or other sub-contractors, by marking up those quotes for the project. That is a standard practice to help the general contractor recover costs in the time it takes to manage the schedule. If you don't want to spend the extra money on your contractor marking up the trade quotes, then you should prepare to project manage the remodel yourself, but know this may limit your options on contractors willing to work with you.
Tip #9: Quoting & Billing Procedure?
Ask the contractor about his quoting procedure. Will it contain general information, or will it be specific? For example - most contractors will charge you for a fuel surcharge, material up-charges, waste removal, labor, etc. Some will show you these exact costs in a line item invoice, but others roll it up into one big bill. How much detail do you want? You should clarify that with your contractor upfront.
Also - what is the payment or billing policy? Is money required upfront? If so, go back to #1 and #2 above to make sure you have the contractor's references checked and have a copy of his contractor's insurance.
Tip #10: Did Your Contractor Get the Permits?
Ask your contractor to take care of the permits. Although permits cost you money, the inspection process is meant to protect you from poor workmanship and to make sure that everything is being built to code.
By following these 10 tips for hiring a home contractor, you'll feel more confident that you've found the right contractor for your remodeling job.
Kamis, 02 September 2010
Credit Scores
What do you advise a financially fit homebuyer to do to increase their credit score or make themselves more attractive buyers, to qualify for the lowest mortgage rates?
A: A FICO score of 700 (FHA)/740 (Conventional) or better qualifies you for the lowest rates. In fact, it qualifies you just as well as a higher score, so if you’re at or over 700/740, there’s no loan qualification rationale for investing effort into boosting it. But these are firm breaking points. The difference between a score of 698 and a score of 700 (in an FHA loan scenario) can cost you a quarter of a point in interest, or thousands of dollars over the life of your mortgage.
I’ve found that people asking about how to boost their credit to qualify for the best interest rates is similar to people asking me how to lose weight: I tell them the truth, then their eyes glaze over when I give them the straight dope, no magic bullets. No one wants to hear: eat vegetables, cut the sugar, and exercise; similarly, they don’t want to hear pay your bills on time, every time.
But I’ve been asked this question a lot recently, so here goes, anyway!
1. Pull your reports online – get them for free, no strings attached, at the government authorized website AnnualCreditReport.com. This doesn’t get you your actual FICO scores, but it does get you the content of your report. Look for errors that could be depressing your score, like accounts that don’t belong to you, balances that are actually lower than reported, old debts that are paid off that should have been removed entirely (7 years for credit cards, 10 for bankruptcies).
2. Consider reopening accounts you thought were open but have been closed because you haven’t used them in so long - it will help boost your utilization ratio, one element of your credit score that is dependent on how much available credit you have.
3. Pay down some debt. This both decreases your debt-to-income ratio (36% is the goal, including the proposed mortgage payment) and increases your credit score, if you do it right (see the next tip).
4. Don’t close any accounts. Instead, spread your debt out. The ideal utilization ratio is about 20-30% of your available credit overall, and on any given account. Closing accounts reduces the amount of credit that is available to you, so it makes it look like you’re closer to being maxed out.
So if you have one card that’s near its max and several others that have zero balances and you’re trying boost your score a bit, quickly, consider balance transfers to spread our your debt more evenly, aiming for 20-30% of the available credit on each card.
5. Use your credit regularly – and pay it on time, every time: Having a good FICO score doesn't happen because you have sound personal finances, including no debt. FICO scores are a measure that shows that you have a history of responsibly using and managing and repaying your debt on an ongoing basis.
6. Finally, check in with your mortgage broker. Have them pull your report and score, as the report they pull is the one they’ll have to go by in the final analysis. If you’re really close to a score level higher, that would empower you to qualify for a lower rate, they can actually run a credit diagnostic on your score and generate some recommendations for which actions you could take to raise your score by the needed few points. Then many of them can do what’s called a ‘Rapid Rescore’ – once you’ve paid that bill off, they can actually submit a request directly to the credit bureaus to update that information and your score in just a few days.
None of these tips will get someone with a 500 credit score to a 700 (other than a massive debt reduction program). But if you’re trying to get a little boost to get you over a credit score hump, these can be potent, and save you beaucoup bucks in interest.
Psst - you should follow Trulia and Tara on Facebook, too!.
A: A FICO score of 700 (FHA)/740 (Conventional) or better qualifies you for the lowest rates. In fact, it qualifies you just as well as a higher score, so if you’re at or over 700/740, there’s no loan qualification rationale for investing effort into boosting it. But these are firm breaking points. The difference between a score of 698 and a score of 700 (in an FHA loan scenario) can cost you a quarter of a point in interest, or thousands of dollars over the life of your mortgage.
I’ve found that people asking about how to boost their credit to qualify for the best interest rates is similar to people asking me how to lose weight: I tell them the truth, then their eyes glaze over when I give them the straight dope, no magic bullets. No one wants to hear: eat vegetables, cut the sugar, and exercise; similarly, they don’t want to hear pay your bills on time, every time.
But I’ve been asked this question a lot recently, so here goes, anyway!
1. Pull your reports online – get them for free, no strings attached, at the government authorized website AnnualCreditReport.com. This doesn’t get you your actual FICO scores, but it does get you the content of your report. Look for errors that could be depressing your score, like accounts that don’t belong to you, balances that are actually lower than reported, old debts that are paid off that should have been removed entirely (7 years for credit cards, 10 for bankruptcies).
2. Consider reopening accounts you thought were open but have been closed because you haven’t used them in so long - it will help boost your utilization ratio, one element of your credit score that is dependent on how much available credit you have.
3. Pay down some debt. This both decreases your debt-to-income ratio (36% is the goal, including the proposed mortgage payment) and increases your credit score, if you do it right (see the next tip).
4. Don’t close any accounts. Instead, spread your debt out. The ideal utilization ratio is about 20-30% of your available credit overall, and on any given account. Closing accounts reduces the amount of credit that is available to you, so it makes it look like you’re closer to being maxed out.
So if you have one card that’s near its max and several others that have zero balances and you’re trying boost your score a bit, quickly, consider balance transfers to spread our your debt more evenly, aiming for 20-30% of the available credit on each card.
5. Use your credit regularly – and pay it on time, every time: Having a good FICO score doesn't happen because you have sound personal finances, including no debt. FICO scores are a measure that shows that you have a history of responsibly using and managing and repaying your debt on an ongoing basis.
6. Finally, check in with your mortgage broker. Have them pull your report and score, as the report they pull is the one they’ll have to go by in the final analysis. If you’re really close to a score level higher, that would empower you to qualify for a lower rate, they can actually run a credit diagnostic on your score and generate some recommendations for which actions you could take to raise your score by the needed few points. Then many of them can do what’s called a ‘Rapid Rescore’ – once you’ve paid that bill off, they can actually submit a request directly to the credit bureaus to update that information and your score in just a few days.
None of these tips will get someone with a 500 credit score to a 700 (other than a massive debt reduction program). But if you’re trying to get a little boost to get you over a credit score hump, these can be potent, and save you beaucoup bucks in interest.
Psst - you should follow Trulia and Tara on Facebook, too!.
Housing market report
Housing prices up in June
But worry persists as foreclosures, unemployment remain bloated.
By Kirsten Valle
kvalle@charlotteobserver.com
Posted: Wednesday, Sep. 01, 2010
Charlotte-area home prices continued to inch up in June, a closely watched index released Tuesday shows.
Prices in the metropolitan area rose 0.7 percent from May, according to the S&P/Case-Shiller Home Price Index. Home prices climbed in June in 17 of the 20 market areas the index tracks, stayed flat in two and declined in one.
The index shows housing prices have begun to rebound from the lowest point of the housing crisis. But other recent indicators signal a difficult road ahead, as first-time homebuyer tax credits have ended, foreclosures continue and unemployment remains inflated.
Mecklenburg home sales fell 11 percent in July, for instance, over the year before, and the average home price climbed just 1 percent that month, remaining below the levels of a few years ago.
Charlotte has held up better than other markets in some respects, but it continues to lag on the Case-Shiller index, the latest data show.
Charlotte-area prices fell 2.7 percent in June from June 2009 - one of only five markets to experience a year-over-year decline, the index shows. That's well below the average gain of 4.2 percent for the Case-Shiller index's 20 markets.
The index is one of the most precise measures of home values because it tracks repeat sales. Like stock market indexes, Case-Shiller reflects changes in price, not an actual price.
Las Vegas remained among the weaker cities, the report found, with home prices falling 0.6 percent from May and 5.2 percent from June 2009. But other markets showed improvement: California's major cities, for instance, have moved from some of the hardest hit to three of the four leading cities, based on year-to-year gains, the index shows.
Still, worry persists.
"While the numbers are upbeat, other more recent data on home sales and mortgages point to fewer gains ahead," said David Blitzer, chairman of the S&P index committee, in a statement Tuesday. "... If this relative weakness in demand continues, it will likely filter through to home prices in coming months."
Kirsten Valle: 704-358-5248
Read more: http://www.charlotteobserver.com/2010/09/01/1658732/housing-prices-up-in-june.html#ixzz0yN6kXyNj
But worry persists as foreclosures, unemployment remain bloated.
By Kirsten Valle
kvalle@charlotteobserver.com
Posted: Wednesday, Sep. 01, 2010
Charlotte-area home prices continued to inch up in June, a closely watched index released Tuesday shows.
Prices in the metropolitan area rose 0.7 percent from May, according to the S&P/Case-Shiller Home Price Index. Home prices climbed in June in 17 of the 20 market areas the index tracks, stayed flat in two and declined in one.
The index shows housing prices have begun to rebound from the lowest point of the housing crisis. But other recent indicators signal a difficult road ahead, as first-time homebuyer tax credits have ended, foreclosures continue and unemployment remains inflated.
Mecklenburg home sales fell 11 percent in July, for instance, over the year before, and the average home price climbed just 1 percent that month, remaining below the levels of a few years ago.
Charlotte has held up better than other markets in some respects, but it continues to lag on the Case-Shiller index, the latest data show.
Charlotte-area prices fell 2.7 percent in June from June 2009 - one of only five markets to experience a year-over-year decline, the index shows. That's well below the average gain of 4.2 percent for the Case-Shiller index's 20 markets.
The index is one of the most precise measures of home values because it tracks repeat sales. Like stock market indexes, Case-Shiller reflects changes in price, not an actual price.
Las Vegas remained among the weaker cities, the report found, with home prices falling 0.6 percent from May and 5.2 percent from June 2009. But other markets showed improvement: California's major cities, for instance, have moved from some of the hardest hit to three of the four leading cities, based on year-to-year gains, the index shows.
Still, worry persists.
"While the numbers are upbeat, other more recent data on home sales and mortgages point to fewer gains ahead," said David Blitzer, chairman of the S&P index committee, in a statement Tuesday. "... If this relative weakness in demand continues, it will likely filter through to home prices in coming months."
Kirsten Valle: 704-358-5248
Read more: http://www.charlotteobserver.com/2010/09/01/1658732/housing-prices-up-in-june.html#ixzz0yN6kXyNj
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