How-To Videos on YouTube About Homebuying

Especially in today’s housing market, the prospect of buying a home can seem overwhelming for many Americans who may not be aware of how to begin the process of shopping for a home or even a mortgage. To help navigate this process, the U.S. Department of Housing and Urban Development (HUD) and the National Association of Realtors® (NAR) unveiled three how-to videos to help prospective homeowners find a home they can afford, shop for a mortgage they can sustain, and what to expect when they go to closing.

“Educating consumers about the home buying process is at the heart of what Realtors® do,” said 2010 National Association of Realtors® President Vicki Cox Golder. “Informed home buyers create the conditions necessary for responsible, sustainable home ownership, and we’re very happy to be a part of this project.”

HUD’s videos are easily accessible from both HUD and NAR’s websites as well as from HUD’s YouTube channel. They include:

Shopping for your Home – The homebuying process obviously starts with finding a place you’ll want to call home. This short video will instruct viewers on assessing how much of a home you can afford, working with a real estate agent and what happens once you find the home you want to buy. Housing counselors can assist home buyers and home owners on issues such as home buying, fair housing, credit issues, and foreclosure prevention.

Shopping for your Loan – Once you’ve found the home of your dreams, the next step is to shop for a mortgage loan. This video will help prospective buyers use the good faith estimate (GFE), which is a form that spells out the terms of a loan offer, to shop for the best loan for them. Viewers will learn how to use the GFE to determine how long an interest rate is available for a particular loan and how to identify key loan terms and costs of a particular loan offer. HUD suggests buyers shop and compare GFEs from multiple mortgage brokers and/or lenders in order to get the best loan for their situation, and I heartily concur.

Closing the Deal – Finally, this video walks the viewers through the actual closing process including how to make sure the loan they were offered closely matches what they encounter at the settlement table. In particular, HUD will walk the viewer through the HUD-1 Settlement Statement and demonstrate ways buyers can compare their actual costs with those reflected on their Good Faith Estimate.

HUD partnered with NAR because a real estate agent is often the primary point of contact for homebuyers and HUD believes real estate agents are in a great position to provide these videos to their clients as they move through key areas in the homebuying process.

To view HUD’s new homebuyer education videos, visit HUD’s YouTube channel at www.youtube.com/HUDchannel.

As Your Personal REALTOR, I am here to answer any of your personal questions about homeownership, buying, selling and avoiding foreclosure. Don't hestitate to contact me!

Help for Troubled California Homeowners On Hold ... But Not For Long

California expects mortgage-aid program to begin in weeks.

The California Housing Finance Agency (CalHFA) reported this week that its “Keep Your Home California” program will be delayed because of logistical issues with the program. The program was scheduled to begin Monday, Nov. 1.

· The “Keep Your Home California” program is a $1.83 billion government aid program that will pay down loan balances and provide monthly cash assistance to struggling California homeowners.

· One of the logistical complications that has caused the delay is the fact that Fannie Mae and Freddie Mac last week instructed their loan servicers to participate in the program, dramatically increasing the number of potentially eligible homeowners.

· Funded with federal money, the program offers four different types of cash assistance for an estimated 100,000 low- to moderate-income California homeowners. Additionally, eligible borrowers must have endured some sort of loss of income.

· The two primary forms of aid include $875 million dedicated toward unemployed Californians who need help making their monthly payments, and $790 million to be used to directly reduce mortgage loan balances.

· Although the program has been delayed for several weeks, homeowners struggling to make their mortgage payments are advised to not wait for assistance programs to begin before contacting their servicer or lender. Instead, homeowners should begin working with their lender or servicer at the first sign of difficulty.

· More information about the “Keep Your Home California” program can be found at www.keepyourhomecalifornia.org. A toll-free hotline soon will be established.

As a Certified Distressed Property Expert, I can help you navigate your way through the maze of programs and what is available for you. Contact me for help today!

What the Foreclosure Freeze Means For You

Q: How have California mortgages been affected?

A: So far, BofA is the only lender with a moratorium that affects California. Other lenders, including Ally Financial and JP Morgan Chase, have halted foreclosures in the 23 states that require a court’s approval before a home can be seized. California is not one of those states. But Attorney General Brown has called for all banks to stop foreclosures until they can prove they’re complying with state law, which prohibits lenders from recording notices of default on any mortgages made from 2003 through 2007 unless the lender contacts or tries diligently to contact the borrowers to see if they qualify for a loan modification.

Q. What effect will this have on the housing market? And what does this mean to people who want to buy a foreclosed home?

A. Foreclosure sales currently account for 43 percent of the California market, according to RealtyTrac, a real estate data firm in Irvine. To the extent that these problems begin to show up in California, it could put a temporary roadblock in front of a sale. One problem: title insurance firms are shying away from any sale involving a questionable foreclosure. But real estate analysts say that as long as the problem is solved quickly - say, 60 to 90 days - it should have relatively little impact on the market. Rick Sharga, RealtyTrac's executive vice president, said he's noticed little impact from the moratoriums that have recently gone into effect.

For more information, please don't hesitate to shoot me an email or give me a quick call! I'll be happy to talk with you about what this means to you as a buyer, seller or distressed homeowner!

A New Way To Buy a Home At a Discount!

The buyer's market may have just got better for you.

To pare down their growing inventory of properties, Fannie Mae and Freddie Mac are scrambling to unload nearly 150,000 foreclosed homes. And that means 2004-esque deals – like requiring as little as 3% down, offering to pay a portion of the closing costs and arranging special financing and warranties for repairs and renovations.

It's another option for home owners who want to trade up -- and an easier way into the market for first-time home buyers, says Dean Baker, co-director of the Center for Economic and Policy Research who studies the housing market.

The downside: Angry neighbors. Many realtors say these types of listings are devaluing nearby properties. They state that in some areas where Freddie and Fannie homes are on the market, buyers could find a better deal on a nearby market-rate home that doesn't require repairs, he says.

Buying a Fannie or Freddie home can be more complex than pursuing an open-market real estate listing — or even a commercial bank foreclosed property. There’s a smaller selection of appealing and those tend to sell the fastest. And there's little room to negotiate price.

"Our goal is to recover as much as we can to offset our loss and not to be low balling properties just to move them,” says a Freddie Mac spokesman. “We absolutely have no motivation to be leading a downward spiral in home prices.”

The three best features of Fannie and Freddie foreclosures that may make digging for these deals worthwhile:

1. Small down payment

For its foreclosed properties, Fannie Mae will accept down payments as low as 3% on 30-year mortgages at the same interest rates banks are currently offering. And Fannie Mae doesn’t require private mortgage insurance. Compared to a typical bank mortgage, which requires 10% down, plus PMI for buyers with less than 20%, that’s a huge savings – an estimated $51,000 up front and upwards of $2,500 per year PMI on a $300,000 mortgage.

It's a tradeoff, though. For buyers with 20% down, mortgage payments on a 30-year mortgage loan at 5% would be $1,288 a month. With just 3% down, the buyer would need to borrow $291,000 and make a $1,562 monthly payment.

2. Help with renovations

Fannie and Freddie have fixed big flaws like leaky roofs and damaged electrical work, and they often handle small projects like replacing appliances that are broken or missing, tearing up old carpet, or fixing other damage left by former owners or vandals.

Now, to entice buyers who want to update or upgrade, many of Fannie Mae's properties come with an optional mortgage that includes extra financing up to $30,000 for repairs and improvements. But with a little down payment and the extra amount tacked on, the buyer could end up owing more than the house is worth – especially if home prices continue to drop.

3. First dibs

Buyers who plan to live in their Freddie Mac-purchased home will get to see properties for at least the first 15 days they’re on the market -- before the listing opens to would-be landlords. Many bank-owned foreclosure properties are snatched up by cash-stocked investors who can wait out the downturn to sell later at a profit.

And Fannie and Freddie homes can be seen inside and out -- unlike some regular foreclosure listings. Consider bringing along a contractor when you view the home to help spot areas that need repairs and provide pricing. (Most contractors will do this for free.)

“It gives families who want to buy a home to live in the opportunity to look and bid without competition from cash-rich investors,” says a Freddie Mac spokesman.

Taken from: How to Buy a Home at a $100,000 Discount - Personal Finance - Real Estate - SmartMoney.com Read more: http://www.smartmoney.com/personal-finance/real-estate/tips-on-buying-a-home-at-a-100-000-discount/?page=all##ixzz11VYT6DJq

First-Time Buyers! New 30-Year Mortgage From CalHFA!

If you are a first-time buyer, or if you haven't owned a home in the last three years, this may be your opportunity to shop the LOW prices in the market today!

The California Housing Finance Agency (CalHFA) announced this week the launch of a new fixed-rate, 30-year, FHA-insured mortgage program for low- and moderate-income home buyers.

CalHFA provides financing and programs for low- and moderate-income Californians. The program announced this week enables qualified, first-time homebuyers - defined under federal law as not having owned and occupied a home for the past three years - in California to receive a 30-year mortgage with a fixed interest of approximately 4 percent.

Borrowers are eligible to use the California Homebuyer’s Downpayment Assistance Program, which can provide up to 3 percent of the purchase price of the home for down payment or closing costs.

In addition to being a first-time home buyer, borrowers also must meet income limits, which vary by county and family size. Call me to see if you qualify. Borrowers also must purchase homes within FHA’s loan limit and CalHFA’s sales price limits. Mortgage loans are limited to $417,000 under FHA guidelines, while CalHFA’s sales price limits vary by county.

Additionally, borrowers must meet the minimum credit score requirements and maximum debt-to-income ratios and complete a HUD-approved home buyer education program.

For more information on whether or not this new CalHFA program can help you with your first-time home purchase, contact me!

Scam or Savior? Short Sale Negotiators

When an agent lists a property as a short sale, it involves working many long hours on very thick files. Since many agents do not know the proper protocol for handling short sales, this need was filled with a middle man: enter the "short sale negotiator." If you don't know a Certified Distressed Property Expert, how do you weed out the good from the bad?

Licensing: All negotiators need to be licensed real estate agents and their license number should be displayed. Don't let them tell you that they don't need a license to negotiate debt forgiveness, or to process paperwork. That goes for any agent who is handling your short sale.

Compensation: Your agent or negotiator should not hit you up for money before performing any services. Real estate agents get paid when the deal is closed. No close; no paycheck. If you are a buyer and a negotiator asks for compensation, say no and go look for another house. Trust me, you don't want to get into a contract like this!

MLS Issues: If you are a buyer and the listing agent of the property you want asks you to pay for the short sale negotiator, that may even be against MLS rules. I would find another property if I were you.

Track Records: It's usually a good idea, right? In this case, the short sale negotiator scammer may be very good at making up what the bank wants to hear about the sellers they represent, so their record may look impressive. Sure, they've closed a lot of deals. But are they ethical?

Short Sale Flips: I'm not against flipping. I've done a few. Buyers are happy, the contractors I hire to do repairs, carpet and paint get work, and I make a small profit. However, some bad eggs are using short sales to make big bucks. They arrange to have a "buyer" bid on the property at a very low price and do not show the seller or the bank any other real offers. The "buyer" buys at that very low price, and the negotiator and his "buyer" partner turn around and sell the property for a higher price. That stinks.

A Final Word! If you are in the distressing predicament of having to unload your property for less than you owe, the only way to be sure you are being taken care of in an ethical and legal manner is to hire a REALTOR who is also a Certified Distressed Property Expert. These professionals, of which I am one, have gone through training on how to take a seller through the process of getting their home sold so they will not have to go through the devastating effects of a foreclosure. I have personally helped many sellers in this position. Is it a lot of work? You bet. However, as long as there are sellers who need my expertise in this area, it is my mission to help all I can, despite the thick files and long hours needed to get these escrows closed satisfactorily.

Looking for Work and Behind on Your Mortgage?

California Housing Finance Agency (CalHFA) to the rescue!

The U.S. Treasury Dept. announced that it’s providing additional funding to a California program to help homeowners struggling to make their mortgage payments due to unemployment. The program will assist struggling borrowers make up to six months of mortgage payments. Lenders will be asked to match the government contribution.

KEEP THIS IN MIND

• The program aims to help 19,000 unemployed borrowers in California between its November launch and next July. An additional 23,000 borrowers will receive help over the next two years, according to CalHFA estimates.

• To qualify for the program, borrowers must be unemployed and eligible for unemployment benefits, and live in the home tied to the mortgage. Borrowers must be fewer than 90 days behind on mortgage payments and meet low- and moderate-income guidelines. Income requirements can be found at http://keepyourhomecalifornia.com/income.pdf.

• CalHFA is focusing on providing aid to unemployed borrowers struggling with purchase loans, excluding refinanced loans. According to CalHFA officials, it is too difficult to decide who “cashed out for a good reason and who didn’t.”

• More information about the CalHFA program, including eligibility, program summary, income requirements, and frequently asked questions, can be found at http://keepyourhomecalifornia.com.

Be sure to call me if you have any questions!

To read the full story go to: http://www.sacbee.com/2010/08/12/2953229/42000-of-californias-jobless-will.html

Part 2: Ask Yourself: Rent or Buy? Can You Really Afford This House?

In my last post, we saw that owning a home is generally a good thing for individual finances in the long run, even if only slightly. As a homeowner myself, there is also the relative security of knowing my landlord won't up and sell my home out from under me or raise the rent! Though homeownership carries more responsibility, for myself, it just feels good to have my home be .... well, my home!

To be sure, the recession illustrates that renters need to consider not just their desires, but also their financial realities before purchasing a home. Buying a home is a big financial responsibility - the biggest one you will ever make - and one that protects you against those rent increases. A home represents stability, the place where you want to settle down for at least five to seven years and raise your family, if you are inclined. Bottom line: You don't want to take on more square footage than you can maintain and enjoy.

Still not sure? This simple online survey (www.bankrate.com/calculators/mortgages/rent-or-buy-home.aspx) can help and so can your financial planner.

And when you are ready, of course, seek me out, Your Personal Realtor!

www.car.org/newsstand/crem/current-issue thank you to Paula Hess, senior editor of California Real Estate Magazine.

Ask Yourself: Rent or Buy? Part 1

Sixty-five percent of Americans prefer owning a home versus renting. Is this just some leftover remnant of "the American dream?" Is it a romantic notion, or can it make financial sense, as well? Is the time right for your family?

With all of the foreclosures, fragile economy and fear about where to put one's investment dollars, the question about whether it is good for your pocketbook is more important than ever.

You've heard "there may never be a better time to buy," what with home prices and mortgage rates at near historic lows. But the reason to buy should have more to do with you and your family's situation than with the market. Yes, prices are low - really low, but tighter lending requirements have made it harder to qualify for a home loan. Bottom line: You'll need a larger down payment and a higher FICO score.

Interestingly, declining home prices have made the differential between buying and renting - significant in years past - minimal in some regions. However, with a cash downpayment, buyers may be able to save an average of $100 per month paying a mortgage over rent for a comparable property.

Of course, homeowners qualify for tax breaks, most notably the mortgage interest and property tax deductions. A general tax benefit-analysis reveals that a buyer purchasing a median-priced home with 20% down and a 30-year conventional mortgage looks to save over $500 per year on taxes. Not a huge amount to be sure, but homeowners will take it, along with the knowledge that their payments can be building equity and not just going into the pocket of a landlord!

In Part 2, we'll look at the second consideration: Can you really afford this house?

Before You Walk Away From Your Mortgage ...

Fannie Mae Increases Penalties for Borrowers Who Walk Away

Seven-Year Lockout Policy for Strategic Defaulters

Fannie Mae announced policy changes designed to encourage borrowers to work with their servicers and pursue alternatives to foreclosure. Defaulting borrowers who walk-away and had the capacity to pay or who did not complete a workout alternative in good faith will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the date of foreclosure. Borrowers who have extenuating circumstances may be eligible for new loan in a shorter time frame.

The purpose of this new policy is to highlight the importance of homeowners working with their mortgage company.

There is no doubt that walking away from a mortgage is bad for borrowers and bad for communities, not to mention the example that is being set for a whole generation watching mom and dad not do all they can to fulfill their responsibilities. Homeowners facing documentable hardship who make a good faith effort to resolve their situation with their mortgage provider will be able to preserve the option to be considered for a future Fannie Mae loan in a shorter period of time.

Fannie Mae says that it will also take legal action to recoup the outstanding mortgage debt from borrowers who strategically default on their loans in jurisdictions that allow for deficiency judgments, something that could hang over the heads of those who walk away from their mortgages for years to come.

As a Certified Distressed Property Expert, I can relieve homeowners in these situations from the burden of communicating with their mortgage providers - something that discourages many borrowers as banks are famous for not answering phone calls or refusing to speak with borrowers until they are behind on their mortgages. At the very least, I have the experience to help navigate the waters one step at a time for you. One of my clients actually was able to negotiate with his lender to keep his home after he had almost given up hope and we had it up for a short sale (owed more on the home than we could sell it for)!

In these troubled times, I am happy to be able to use my skills to help upside down homeowners develop a plan of attack rather than giving up. It does pay you in the long run, credit-rating-wise, to work things out with your lender, even if it means you end up selling your home for less than you owe.

Call me if you or someone you know needs help.

These policy changes were announced in April, in Fannie Mae's Selling Guide Announcement SEL-2010-05.

Buyer Turn-Offs: What to Do if YOUR House is a Turn Off!

We talked about the features buyers look for, and some things you can do and should NOT do to make sure you show your home's best side to buyers. Now, I want to talk about the top buyer turn-offs, and what to do if your house fits the description.

The top turn-offs for both men and woman are structural damage, bad odors, a busy street, and an awkward floorplan.
First of all, a homeowner must accept reality that if any of these features apply to their home, it will make their home less desireable than a home that does not have these features. Therefore, the home must be priced below a comparable home in size and location. A buyer will naturally buy the home that appeals to them the most within their budget. Reduce the price, and you appeal to a buyer who normally could not afford a home in your area, or a home with as much square footage, or a home with a beautiful yard, etc. There is a buyer for every home, I assure you!

1. Let's take Structural Damage. This often happens to homes that were rentals for a long time, or perhaps the home was owned by folks who became disabled and could no longer either afford to keep the home up or just didn't notice the problems occuring. Perhaps there was a leak in the attic or under the house that slowly caused damage. What to do?

You have three choices: Repair the damage before you put the house up for sale, or sell the house as it is with the knowledge that much of the repairs will need to be paid for by the seller in escrow, or sell to a cash-only buyer. The fact is that unless the price of a structurally damaged house is considerably below comparables, a buyer will not purchase the home without having the damage repaired. Most buyers do not have the capital to repair structural damage. Also, if the buyer is getting a loan on the home, most banks will not loan on a home with structural damage. As your agent, I would assess what the damage is when I list your home and make recommendations based on what I observe.

2. Bad odors. It's a fact of life that we all get used to the smells in our own home! Even some odors that would knock a visitor down seem to go undetected by the resident. Obviously bad odors are a turn off, and if a home is listed without the odor having been eradicated, buyers will run the other way. What to do?

Before you list, get rid of odors caused by cigarette smoking, animals and relaxed house cleaning. Often carpets need to be replaced and walls painted to get the home smelling show-ready. Ask a friend you trust to come over and give your home the sniff test. If you choose to sell your home as is - odors and all, expect to have to lower your price below the comparables to get any buyer interest.

3. A Busy Street. This is a tough one, but not impossile to deal with. Your sales price will have to be adjusted regardless of what you do, but it is possible to make your home appealing even on a busy street. I would recommend putting in dual-paned windows at least on the side of the traffic. Dual-paned windows are a great selling point all over the house, and I would definitely recommend replacing all windows if they are single paned.

Next, I recommend a fountain in your outdoor space. A nice tinkly one that distracts from the street noise. I actually live with a busy street behind my home, and we have a wonderful fountain outdoors. Visitors rarely comment about the street noise, and we rarely notice it.

Plant screening plants to block the view of the busy street from windows. And of course, make sure your home is clean and staged before listing!

4. And lastly, the Awkward Floorplan. If you've got it, you may not even know it, you are so used to it. Buyers are looking for open floorplans these days. If you have no remodeling $$$ to remove walls, you must know that your sales price will need to be below the comparables to make up for the floorplan. Sounds ridiculous, but buyers know what they want.

For floorplans that are set in stone - no way to change it - I would recommend focusing on the positive features of your home mentioned in my prior article. Make sure you have a killer backyard, or a killer kitchen. Something that stands out that buyers want that makes up for the floorplan. Make sure your home is clean and freshly painted. As your agent, I will help you arrange your furniture to distract from the floorplan.

There IS a buyer for every home. Sometimes it takes elbow grease, and often it takes being realistic about the features your home is lacking and the turnoffs your home has that you have no control over, and adjusting your price to compensate. As your agent, I will evaluate your home and take your home's best foot and put it forward and center in order to get you the best possible price in today's market!

What Buyers Want! Top 11!

Most of us consider our home to be not only our castle, but a big investment. Sadly, few of us pay attention to nurturing this important investment by keeping an eye on what buyers are looking for now in order to prepare for that future day when we will sell.

With that in mind, I want to share with you this 2010 survey of 1,000 buyers conducted by ZipRealty. It is a "Top 10" survey, but since men and women differ slightly, it is actually a "Top 11!"

1. Garage. Most buyers want a garage. If you have a garage, my advice to you would be not to permanently convert it to another bedroom. Families are shrinking and the days of 3-4+ bedrooms are going bye bye. Convert if you must, but in a way that can be undone by YOU before you sell.
2. Master suite. Buyers want a bathroom within their bedroom. Don't have it? If you have remodeling $$$, add one. You'll love it now, and buyers will love it later.
3. Ample store space. Don't enlarge your home and remove closets. Big no no. DO put built-in storage in your garage (see #1!). DO have even a little storage shed in an inconspicuous place in the yard.
4. Guest Bedroom. This surprises me, but it shouldn't. Families are now spread out all over the country. So don't convert a third bedroom into a family room, unless YOU can UNconvert it before you sell.
5. Large closets. See #3.
6. Outdoor entertainment area. Especially here in San Diego! DO spend money on your yard! Patios with covers, greenery of some kind on automatic sprinklers, barbeque area. This is a place to spend a moderate amount of $$$. DO NOT OVERDO YOUR NEIGHBORHOOD! You won't get your money out of it. Just a lot of oooohs and ahhhhs!
7. Gourmet or updated kitchen. Yes, yes, yes, yes, keep those appliances current. Buyers LOVE new appliances and solid surface countertops. Tile and grout are OUT OUT OUT, except on the floor. Put your $$$ here, and while you're at it, update those bathroom sinks, cainetry and faucets. Buyers love that, but don't overdo it (see #6 above).
8. Breakfast room or eat-in kitchen. If you have it, don't remodel and lose it. If you don't have it, find a way to fake it.
9. Men want a view. Either you have that or you don't. If you have it, don't obstruct it. Show it off with places to sit and ponder it.
10. Large yard. Any yard. We have noticed that TOO big of a yard isn't a good thing either. If you have an acre, chop off a nice chunk and make it a cozy space, and use a weedeater on the rest. Fences sell too for those kids and pets.
11. Women want wood floors. Solid wood is best, but a good quality wood-type floor works. Wood is better than all tile for crawling babies, so if you have a house that would someday sell as a family house, go for the wood in the family areas and tile in the kitchen.

Of course, any questions at all about your particular dilemma, just give me a call or an email, and I'll do my best to guide you through spending your investment dollars wisely! It DOES matter!

Source: ZipRealty.com (6/10/2010)

Why Did Housing Take a Tumble?

This question has been rehashed by the talking heads on T.V. time and time again. We all have our theories as to why it happened and who are the villians. Some say it was the fault of the banks. Some say it was the predatory lenders. Some say it was investors buying up property causing inflated values. Others say that it was the "perfect storm."

According to a study recently released by the Mortgage Bankers Association and conducted by the University of Maryland, poor data, incomplete performance metrics, short-term focus, and unrealistic optimism among senior business managers contributed to the housing downturn. The study analyzed the risk management processes employed by mortgage lenders leading up to the housing crisis and discusses lessons learned for future risk managers.

Key findings from the study include: Subprime loan underwriting criteria expanded between 1999 and 2006 and a false sense of security with new products originated prior to 2007 occurred as a result of better than average economic conditions.

Hmmm. Sounds like a perfect storm and few heeded the warnings because so many were getting what they wanted - finally! Investors were making money. First-time homeowners were getting a home for no downpayment, with expectations that in a few years, they could sell that starter home and make money that they could then put down on a BETTER home. Lenders were of course making money.

What those of us on the ground saw happening during those good 'ol days were too many buyers risking basically only their credit scores for those expectations because they had no "skin in the game." No money of their own was sunk into their investment. Human nature requires some accountability, without which it is that much easier to walk away and leave the mess to someone else: you and I. The homes that these buyers left behind were indeed messes. Browned, unkempt landscapes and ill-used interiors needing to be labled, "mild fixer."

Of course, caught up in the storm were very responsible homeowners who did manage to refinance and hang on for as long as they could to their very well maintained and loved homes. A lost job or scarce contracts for the self-employed put these homeowners in the very same position as the risky buyers, and the stigma of foreclosure. It has been painful to watch up close.

A one-size-fits-all bandaid cannot work for even these two scenarios. That is why I am pleased that California has passed a bill to protect responsible homeowners from having to pay income tax on their forgiven debt! These homeowners should not be lumped into the same box as the risky buyer who easily walked away from a mess.

A perfect storm does best describe the housing downturn. And in any storm of life, we must learn something as individuals and as a community and as a State. You can't get something for nothing. If you have, beware of the strings attached.

To obtain a copy of the report, please visit the RIHA Web site at http://www.housingamerica.org.

Distressed Homeowners! RED ALERT!

The Big Banks are Still Opposing C.A.R.'s Bill to Protect Borrowers

The vote is TOMORROW! Please call TODAY!

Call Senator Dennis Hollingsworth Today!
Urge him to vote "Yes" on SB 1178.

Call 1-800-672-3135 and enter my PIN number -- 196519571 I just did and it took 1 minute!

This is an important vote for many homeowners who are not able to make their balloon payments or their mortgage is readjusting, making it impossible for them to continue to make their payments. These homeowners cannot sell the home for what they owe, and if they "walk away" or sell their home in a "short sale", they oftentimes will be held responsible to be taxed on the deficiency. The banks are digging in their heels about this legislation, even though they are getting bailouts by the Federal government to see them through.

Responsible homeowners who have gotten stuck in this bind could use some mercy from the government in the form of not having to pay the taxes on the amount of money they lost the banks on their mortgages. Please know that this legislation will only cover homeowners whose mortgage is strictly for their home and will not cover equity taken out of homes for other purchases!

Call Senator Dennis Hollingsworth Today!
Urge him to vote "Yes" on SB 1178.

Call 1-800-672-3135 and enter my PIN number -- 196519571 I just did and it took 1 minute!

Thousands of responsible homeowners need our help.

RE/MAX on Top in REAL Trends 500

RE/MAX on Top in REAL Trends 500

Call to Action! Enough is Enough!

California has protected borrowers from so-called "deficiency" liability on their home mortgages since the 1930s, but the evolution of mortgage finance requires that the statute be updated.

Current law says that if a homeowner defaults on a mortgage used to purchase his or her home, the homeowner's liability on the mortgage is limited to the property itself. The law has worked well since the 1930s to protect borrowers, ensure the quality of loan underwriting and allow borrowers who are brought down by financial crisis to get back on their feet.

Unfortunately, the 1930s law does not extend the protection for purchase money mortgages to loans that re-finance the original purchase debt -- even if the re-finance was only to gain a lower interest rate. Recent years of low interest rates have induced tens of thousands of homeowners to refinance their mortgages, yet almost no one realized that by re-financing their mortgage to obtain a lower rate, they were forfeiting their protections. These borrowers became personally liable for the balance of the loan.

One can’t help but think, “When is enough, enough?” Banks have already foreclosed upon a family’s home and now lenders can continue to hound them for additional payment. How much more money can today’s families afford to pay when they’ve already lost their homes and most likely their jobs? Are they never to have the opportunity to begin again?

California Association of Realtors is sponsoring SB 1178 (Corbett) to extend anti-deficiency protections to homeowners who have refinanced “purchase money” loans and are now facing foreclosure. Most homeowners didn't know that when they refinanced they lost their legal protections, and now may be personally liable for the difference between the value of the foreclosed property and the amount owed to the lender. SB 1178 will be voted on soon by the entire Senate.

Action Items
Call Your Senator Today! Urge him or her to vote “Yes” on SB 1178.

Call 1-800-672-3135
Please see below for the PIN number to use for your state Senator:

East County & Temecula - Senator Hollingsworth 196519886

Carlsbad - Senator Wyland 205502883

San Diego - Senator Kehoe 177008152

Chula Vista - Senator Ducheny 187003870


(If your Senator isn't listed, that is because he/she is not involved in this vote.)

For more information http://www.car.org/governmentaffairs/getinvolved/redalertsb1178/

Green Tip of the Week

E-recycling earns retailers’ gift cards
RadioShack’s online electronics trade-in program allows customers to exchange used, portable electronics for a RadioShack gift card. Accepted items include GPS devices, MP3 players, notebooks, and game consoles. Visit http://radioshack.cexchange.com/online/home/index.rails to learn the trade-in value and download the prepaid shipping labels. Gift cards arrive within 10 to 14 days.

Time to clean out your garage, East County citizens?!

Are You Feeling More Confident?

We hear a lot about consumer confidence. It's up. It's down. It holds steady. I don't know about you, but my confidence can change depending on how much it cost for me to fill up my gas tank or my basket at Costco (horrors!).

Apparently there are people who measure how confident we are as a nation for a living. And this Conference Board samples 5,000 households all over the United States each month on how confident they feel. If 5,000 representative families feel more confident about a variety of issues, chances are, many of us feel the same way.

Well, then. You are feeling more confident than you did in March! You might not have realized that, so I thought I would let you know! And, you felt more confident in March than you did in February! Feeling better yet?

According to the survey, we are less concerned about current business and labor market conditions! More of us believe that present-day conditions are "good," and less of us think now that they are "bad." More of us are perceiving that "jobs are plentiful," and less of us are saying jobs are "hard to get."

You and I have a better outlook than we did in March, and more of us are expecting business conditions to improve over the next six months.

What I love about being an American, and being an East Countian specifically, is our resiliance. Most of us know others who are out of work or fearful of losing their job. Pay raises have not been plentiful for most of us. Yet we Americans refuse to lose our optimish, continue to work hard and look ahead to better days, at the same time enjoying the day we have been given.

Worry can't add a single inch to your height or a single dollar to your wallet! Confidence is contagious - and it is good for us, and it is good for our economy. Now that you know you are more confident than you were last month, go get 'em! And make sure you are registered to vote and use that American individualism to make a difference. It's contagious.

Revealed For the First Time: How Bad Foreclosure Hurts

I am often questioned about what a foreclosure would do to a credit rating. Not much has been made public concerning this issue and I have had to refer my clients to their tax professional for questions concerning foreclosing or declaring bankruptsy. And now for the first time, we are given a peek behind the financial curtain, thanks to CNN Money.

Here is a basic average hit your credit will take:

30 days late: 40 - 110 points

90 days late: 70 - 135 points

Foreclosure, short sale or deed-in-lieu: 85 - 160

Bankruptcy: 130 - 240

Mortgage borrowers can lose their homes three basic ways:

1. Foreclosure.

2. Short sale, where the home is sold for less than than is owed and the bank (generally) forgives the difference.

3. Deed-in-lieu, in which the borrower gives back the property and the bank again forgives any unpaid balance.

Some borrowers may think that because they never missed a payment, they can "walk away" from their homes with relatively little impact on scores. Not true. When a deed-in-lieu or short sale is reported as a partial payment, it's treated as a serious delinquency, just like a foreclosure.

Even if borrowers made payments faithfully for years before short selling or doing a deed-in-lieu, their credit score will still take a hit. The total decline will run about 85 points for the 680 score borrower to as much as 160 for the 780 score.

However, the worst thing that can happen to your credit score, according to the article, is bankruptcy because the effects are long-lasting. In a Chapter 13 bankruptcy, which involves partial repayment over several years, the stain will take seven years to remove. A Chapter 7 bankruptcy, which involves liquidation, takes 10 years to get over.

What Does It Matter If I Lost the House Anyway?

It matters! Absorbing a big credit-score hit can make many transactions more costly. It's not just paying more for credit card debt and auto loans, insurance can cost more as well.

The average savings for someone with a good versus mediocre credit score is about $115 a year for auto insurance and $60 for home, according to Loretta Sorters, of the Insurance Information Institute.

A low credit score can even make it harder to rent a home because landlords often use credit scores to weed out prospective renters. Ouch!

Despite the problems a poor credit score can cause, if you are in a totally unaffordable financial situation it's better to recognize that and cut your losses quickly; don't prolong the problem.

Although it certainly is easier to walk away, your credit score will certainly fare better if you sell your home before it forecloses. Banks have now come on board and are simplifying the process for sellers and agents. I have done many successful short sales for clients who have been underwater in their mortgage. If you believe you are headed for foreclosure, give me a call and I will help you determine if a short sale would be in your best interest.

http://money.cnn.com/2010/04/22/real_estate/foreclosure_credit_score/index.htm

Military Buyers Have an EXTRA Year to Use Tax Credit!

If you are currently serving in the military or if you are a veteran, member of the Foreign Service or an employee of the intelligence community, your service has earned you a one-year federal homebuyer tax credit extension.

Military service personnel now have through June 2011 to buy a principal residence in the U.S. and claim the federal tax credit. The deadline for entering a binding contract is April 30, 2011; the deadline to close a purchase is June 30, 2011.

The extension applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010. All other home buyers must be under contract by April 30, 2010 and close by June 30, 2010 to qualify for the federal tax credit.

Home Sellers and Landlords

If you are planning to do some renovation to your home before you sell, or if you are a Landlord, and your property was built before 1978, it may pay you to read on.

Starting April 22, renovations that disturb lead-based paint in older homes and child-occupied facilities must now generally comply with the Lead-Based Paint Renovation Rule of the Environmental Protection Agency (EPA).

Under the newly implemented rule, renovators of target housing built before 1978 must now be trained and EPA-certified to perform safe work practices to prevent lead contamination. Landlord's renovating their properties must deliver EPA's lead renovation pamphlet to their tenant within 60 days before a project begins (and, if mailed, at least seven days before a project begins). Renovators must also obtain the tenant's signed acknowledgment of receipt or substitute documentation as specified.

The EPA issued this rule in 2008, but delayed implementation until now. The rule generally applies to building contractors, handymen, residential landlords, property managers, and anyone else who is paid to perform renovations or to direct workers to perform renovations as specified. The lead renovation rule does not apply to homeowners renovating the homes they live in. However, sellers of target housing must, among other things, disclose to their buyers any known lead-based paint and lead-based paint hazards (C.A.R. Form FLD). Home buyers today are certainly more environmentally aware than ever, so when in doubt, it always pays to seek the advice of an informed real estate professional.

Renovation work covered by the lead renovation rule is defined as a modification of an existing structure that disturbs a painted surface, such as surface restoration or surface preparation activity. Excluded are minor repair and maintenance activities that disrupt up to 6 square feet of interior painted surface or 20 square feet of exterior painted surface. Demolitions and window replacements are not considered minor repairs.

If you need more information about the lead renovation rule, just email me and I will send you a legal article entitled Federal Lead-Based Paint Renovation Rule. You can also go to the EPA's Renovation, Repair and Painting webpage which includes the new requirements, pamphlets, and other resources. To locate an EPA-certified renovation firm contact me for a company nearest you, or go to http://cfpub.epa.gov/flpp/searchrrp_firm.htm.

So, Should You Buy or Should You Rent?

Awhile back I posted a question on my Facebook page asking what the pros and cons were about buying a home and renting a home. Some of the pros of renting were that repairs would be made by the landlord and renters don't have to pay that dreaded property tax bill!

Some of the cons of renting: All landlords don't jump to make needed repairs and some tenants, afraid that their rent will be raised, won't ask! Also, you never know when you may have to move should the landlord need to sell his property.

Well, it turns out that financially speaking, the cost gap has narrowed. Affordable home prices and low interest rates have created an ideal time for many diehard renters to purchase homes, and now a new week-long look at homeownership confirms it.

A national study, conducted for The Associated Press, shows that the difference between monthly rents and mortgage payments is at its lowest level in nearly 20 years!

The analysis of 45 metro areas found the difference between the monthly mortgage payment on a median-priced home and the median rent has declined to $256. In some areas, the difference is as low as $100, according to the study. The last time the price gap was that close was in 1993, when it decreased to $264!

The study, conducted by Marcus & Milichap Real Estate Investment Services, used median prices for the last three months of 2009 and calculated mortgage payments by assuming a 10-percent down payment and a 30-year fixed loan at 5.07 percent. It also assumed borrowers paid for private mortgage insurance and didn’t include repair costs and tax benefits.

And don't forget, owning a home does have significant tax benefits, including deductions for those dreaded property taxes and loan interest. Homeowners also can enjoy building equity and creating a means of forced savings as they pay down the principal on the home.

If you are a renter and think you might want to wade in to a home purchase, you can prepare by ensuring your credit reports are up to date and save for a down payment of at least 20 percent, or at least enough to pay for your closing costs.

Although home buyers should not focus solely on future home price appreciation, according to data collected by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) over the last 40 years, homeowners who purchase a median-priced house, live in it for at least five years, and sell it at the then-current median price, have averaged an annual rate of return of more than 11 percent.

As a long-term homeowner, in my opinion, owning our home has rewards that far outweigh any cons. Planting a tree and knowing that more than likely we will be here to see it get bigger each year! Christmas dinners and our traditional Easter egg hunts. Yes, it is good, and Lord willing, will continue to be so.

$10,000? Going, Going .....

Attention First-Time Home Buyers and Buyers of New Construction: CALIFORNIA'S TAX CREDIT MONIES MAY GO FAST

The $100 million allocated for California's first-time homebuyer tax credits may be depleted in about 10 to 20 days or sooner, according to C.A.R.'s Economics team. California's Franchise Tax Board (FTB) plans to begin accepting applications on May 1, 2010 for tax credits up to $10,000 for first-time homebuyers and for homes that have never been previously occupied. However, the total tax credit allocation for all taxpayers is $100 million for first-time homebuyers and $100 million for new homes, both on a first-come, first-served basis.

C.A.R.'s forecast of 10 to 20 days to deplete the $100 million allocation for first-time home buyers is based on estimated May sales figures and other parameters. It does not take into account the possibility that buyers scheduled to close escrow in April may delay closing until May to take advantage of the tax credit. If a shift in closings from April to May occurs, the first-time homebuyer tax credits may be depleted even more quickly than indicated above.

Applications for the California tax credit must be faxed to the FTB after escrow closes. The FTB will update its website when the 2010 application form and other information become available.

What does this mean for East County buyers? Get yourself pre-qualified ASAP, and call or email me for a list of Santee Lake view homes, Eucalyptus Hills homes, Granite Hills homes, Rancho San Diego Homes, or any homes in our beautiful East County! Foreclosures go fast, so be ready, and there are still traditional sales available, many at bargain prices. Get started today and YOU may be a recipient of that $10,000 California tax exemption!

No More CA State Tax on Forgiven Mortgage Debt

Can California afford this? Will it make "walking away" from a mortgage that much easier? Or is this a necessary exemption to get the economy going again?

Governor Schwarzenegger on Monday signed SB 401 (Wolk) into law providing distressed homeowners with state tax exemption on debt forgiven in a short sale, foreclosure, or loan modification. Effective immediately, this bill generally aligns California's tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by a qualified principal residence, borrowers now will be exempt both from federal and state income tax consequences.

"Qualified principal residence" indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified. If a homeowner used the equity in the home to purchase a boat, technically that would not qualify!

The tax breaks apply to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.

Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.

For more information about mortgage forgiveness tax consequences, go to California Franchise Tax Board's Mortgage Forgiveness Debt Relief Extended webpage and the Internal Revenue Service's Mortgage Forgiveness Debt Relief Act and Debt Cancellation webpage. The full text of Senate Bill 401 is available at www.leginfo.ca.gov.

Mike Wilmers & Co make REMAX 100% Club Award

Would You Rather Rent or Own?

And the survey says ...

Americans prefer homeownership!

A new national survey gauging attitudes toward housing finds 2/3 of Americans (65%) still prefer owning a home, despite the challenging economic environment and the housing downturn. The Fannie Mae National Housing Survey, conducted between December 2009 and January 2010, polled homeowners and renters to assess their confidence in homeownership as an investment, the current state of their household finances, views on the U.S. housing finance system, and overall confidence in the economy.

Being More Careful!

The survey did reveal that homeowners and renters alike are taking a more cautious approach to homeownership. Nearly a quarter of renters polled (23%) said they will buy a home later than once planned. In addition, Americans with traditional, fixed-rate mortgages with predictable payments are significantly more satisfied than those with other types of mortgages.

Why Do We Want To Own? Getting Rich Quick Days Are Over!
Respondents cited non-financial reasons such as safety (43%) and quality of local schools (33%) as driving factors in wanting to own a home, ahead of financial considerations.

Should You Walk Away If You Can't Make Your Payments?
Most respondents (88%) believe that walking away from an underwater mortgage is NOT acceptable, but those who know someone who has defaulted are more than twice as likely to have seriously considered stopping payments on their mortgage.

How about you? Would you rather own or rent, and why? And how do you feel about walking away from a mortgage you can no longer afford?

How to Time the Real Estate Market

A good time to buy? Yes, but no need to rush.

Many housing economists have said that for borrowers with stable incomes, good credit history, and FICO scores of at least 620, now is an opportune time to purchase a home. Although inventory rates are below the long-run average, there still are plenty of options available for buyers.

Are you trying to time the market so you can purchase your home when prices are likely to rise again? You might consider taking a different approach. According to one real estate consultant, while home prices have stopped declining in most areas of the state, and even have risen in many areas of San Diego County, mortgage rates may rise, offsetting any potential savings.

Early last year, the Federal Reserve began purchasing mortgage-backed securities, which helped maintain low interest rates for consumers. However, the Fed’s purchase program ended in March, and some analysts forecast interest rates to increase throughout the rest of the year. One financial publishing company predicts that rates likely will rise to 5.5% by mid-2010 and close the year at 5.75% to 6%. The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) projects rates on 30-year fixed-rate mortgages to average 5.6% this year.

Timing the market, even for economists, is a 50-50 chance at best. What we see now are home prices lower than they have been in many years, along with very low interest rates. For those who are ready to buy a home, this is a very good TIME.

Struggling Homeowner? Some Welcome News!

The Obama administration on Friday announced adjustments to the Home Affordable Modification Program (HAMP) and to the Federal Housing Administration (FHA) program to assist homeowners struggling to meet their mortgage obligations. The program adjustments target three groups: Unemployed homeowners who are unable to make their mortgage payments; underwater homeowners; and homeowners behind on their payments and seeking loan modifications.

Unemployed Homeowners: You may qualify for three to six months of reduced payments while searching for new employment. During this time, payments will be reduced to 31 percent of their current gross monthly income. To qualify, borrowers must, among other things:
1. Be living in their homes.
2. Have loan balances less than $729,750.
3. Provide verification of unemployment benefits.
4. Request assistance within 90 days of delinquency on the mortgage.

Underwater homeowners— If you owe more than your home currently is worth and you are current on your mortgage payments, you may be eligible for a new FHA refinance option that will allow you to refinance your mortgages into new FHA-insured loans equal to no more than 115 percent of your home’s current value. The difference between the original loan balance and the new balance gradually will be forgiven if the homeowner remains current on payments for three years.

Homeowners Seeking Mortgage Modifications Under HAMP, you may be eligible for mortgage principal reductions. Although lenders always have had the option to do so, many have chosen instead to reduce interest rates. However, under the new guidelines, lenders reducing mortgage principal may receive higher financial incentives. The incentives will be paid jointly by the private sector and the federal government through a $50 billion allocation from the Troubled Asset Relief Program (TARP).

The program changes are expected to go into effect in the fall. However, a measure to offer larger incentives to lenders who facilitate short sales or deeds-in-lieu of foreclosure, as well as assistance for unemployed homeowners, will be in place within a few weeks or months, according to the administration.

I will keep you posted!

HOME PERSONALITY ANALYSIS?

Your home has a definite personality, and if your home is for sale, or if you are considering putting your home up for sale, it is important that you get to know your home in a new way. And, YES, homes are still selling in San Diego County! But it is more important than ever to understand what makes a buyer buy!

First Impressions Count

If you had a dinner invitation for the first time to the home of your prospective in-laws my bet is that you would want to make a good first impression. Although you might like to wear jeans with holes in them around the house with a comfortable T-shirt, chances are you wouldn’t dream of showing up in that attire to a first-time meeting! It makes no difference that your fiancé loves you just the way you are. You have a good impression to make and now is the time to put your best foot forward.

Your home is no different. When a prospective buyer drives up to your home for the first time, they will subconsciously notice your home’s “personality,” and this personality will greatly affect their first and most important impression – and the decision whether or not to buy your home. The questions is- If your home is for sale, which personality do you want to put forward?

The Neglected Home – You’ve seen it. Bank-owned/foreclosed homes have this appearance. This home could also be a divorce situation where no one could decide who would do what. Weeds, browning grass, and unswept walks give zero curb appeal. Inside, it is obvious that maintenance and care has been little to nil. Curtains are tightly closed; there is no electricity or heat. This home has a sad personality. No one is going to “fall in love” with this home. It has one hope for getting sold- PRICE. It must be lower than the comps in the area. These homes WILL sell and will sell fast when they are priced to sell.

The Old-Fashioned Home – This home has usually been owned by the same family for its lifetime. Curb appeal may be fair, but the front door and windows would be original. The carpet, flooring, window coverings, fixtures and appliances are unappealing. The color scheme hasn’t been updated since the 1980’s when mauve and baby blue were all the rage! There is really nothing wrong with this home except the fact that you get the feeling you are Back to the Future! Some buyers will see past the home’s dominant personality and imagine updates, but only if the price is right. By right, it must be, once again, lower than the comps in the area. If not, the buyer will buy the home two blocks over that has new windows and appliances, or even The Neglected Home, that has a better price.

The “Different” Home – Some homes have a floor plan that is just plain, well … different! It starts with the curb appeal when you’re not quite sure where the front door is located. Inside, the entry faces a wall or coat closet, or some other part of the house that is unusual. Perhaps the home has been added onto and walls have been removed (or not) and in order to get to the family room or kitchen you need to walk down a hallway past the bedrooms. Room sizes may not appear to make sense, with a huge dining room and tiny kitchen, or vice versa. As a homeowner, you are used to your home being different; however, the majority of the buying population will not find this “different” personality practical or appealing. Unfortunately, the only hope for selling this one is, once again, a price that is lower than the comps in the area. Otherwise, the buyer will purchase a Neglected or Old-Fashioned Home that has the layout that appeals to them.

The Grandma Home – Hey, we’re all going to get there, and the truth of the matter is that when our homes grow old along with us, buyers know it when they see it. This home is similar to the Old-Fashioned Home. Pictures of the grandkids and ancestors are in every room. There is a towel across the back of the chair for the cat and doggie stairs next to the bed. The house has lots of lace and doilies. Though the grandkids love to visit, a buyer may have a hard time imagining living in The Grandma Home. Once again, this home must be priced below the comps in the area or it will languish on the market alongside The Old-Fashioned Home and the “Different” Home.

The Friendly Home – Buyers’ eyes light up when they drive up to this home. There are flowers in the flowerbeds and on the porch. The yard and front door are well maintained and say “welcome.” The home is spotless and clutter free. The walls are freshly painted; woodwork and carpets clean or new. Appliances and countertops are not grossly out of date. Window coverings are current. Buyers will typically fall in love with this home regardless of the age of the home. If priced comparatively to what has recently SOLD nearby, this is the home that brings multiple offers.

So what if your home is not The Friendly Home? Is it possible to get a better price? Yes. The key is DRESS TO IMPRESS! I am a firm believer in staging your home to bring out the best personality possible. Water your lawn. Trim shrubbery. Do those honey-do tasks around the house. Take a couple of weeks and declutter. You are going to be moving, so begin packing, leaving only select decorative items in view. PAINT! Paint your walls and either paint or clean your front door. Buy a new welcome mat. Change the hardware on the door if it is outdated. That, alone, gives a great first impression. Wash all windows and screens inside and out. Remove old, broken blinds and old broken anythings and take them to the dump. You are better off with no window coverings than outdated or broken ones. Update your bathrooms and kitchen if at all possible. Hang new towels and a new shower curtain. Buy new bath and kitchen rugs.

YES, homes are selling; buyers are buying! But in order for your house to sell it is imperative that you make a The Friendly House first impression, and price your home in line with homes that have recently SOLD. Long gone are the days when sellers can ask a price they have in their heads “just to see if anyone will buy it for that.” Location, price and condition (personality)! That is what will sell your home!

Debbie and I would be happy to give you a free Home Personality Analysis with tips on what you can do to Friendly-ize your home for market. Call us or email us anytime!

(Thanks to real estate agent Kristi DeFazio of Colorado for the use of her ideas for this column!)

10 DEADLY MISTAKES Buyers Make When Purchasing A Home

Protect Yourself From These 10 Common Pitfalls ...

MISTAKE NO. 1
Choosing a real estate agent who is not committed to forming a strong business relationship with you.

HERE'S HOW TO AVOID IT
Making a connection with the right real estate agent is crucial. Choose a professional who is dedicated to serving YOUR needs - before, during and after the sale.

MISTAKE NO. 2
Making an offer on a home without being qualified.

HERE'S HOW TO AVOID IT
Pre-qualification will make your life easier - take the time to talk with bank or mortgage representatives. Their specific questions with regard to income, debt and other factors will help you determine the price range that you can afford. It is one of the most important steps on the path to home ownership.

MISTAKE NO. 3
Not knowing the total costs involved.

HERE'S HOW TO AVOID IT
Early in the buying process, ask your real estate agent or mortgage representative for an estimate of closing costs. Title insurance and escrow fees should be considered. Pre-pay responsibilities such as homeowner's association fees and insurance must also be taken into account. Remember to examine your settlement statement prior to closing.

MISTAKE NO. 4
Limiting your search to open houses, ads or the Internet.

HERE'S HOW TO AVOID IT
Many homes listed in magazines or on the Internet have already been sold. Your best course of action is to contact a real estate agent. They have up-to-date information that is unavailable to the general public, and they are the best resource to help you find the home you want.

MISTAKE NO. 5
Thinking that there is only one perfect home out there.

HERE'S HOW TO AVOID IT
Buying a home is a process of elimination, not selection. New properties arrive on the market daily, so be open to all possibilities. Ask your real estate agent for a comparative market analysis. This compares similar homes that have recently sold or are still for sale.

MISTAKE NO. 6
Not considering long-term needs.

HERE'S HOW TO AVOID IT
It's important to think ahead. Will your home serve your needs 3-5 years from now. How about in 5-10 years?

MISTAKE NO. 7
Not following through on due diligence.

HERE'S HOW TO AVOID IT
Make a list of any concerns you have relating to issues such as crime rates schools, power lines, neighbors, environmental conditions, etc. Ask the important questions before you make an offer on a home. Be diligent so that you can have confidence in your purchase.

MISTAKE NO. 8
Not having a home inspection.

HERE'S HOW TO AVOID IT
Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect issues that many buyers can overlook.

MISTAKE NO. 9
Not examining insurance issues.

HERE'S HOW TO AVOID IT
Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.

MISTAKE NO. 10
Not purchasing a home protection plan.

HERE'S HOW TO AVOID IT
This is essentially a mini insurance policy that usually lasts one year from the date of the sale. It usually covers basic repairs you may encounter and can be purchased for a nominal fee. Talk to your agent to help you find the protection plan you need.