Saw this great article by Melissa Tracey-
From Bathroom to Spa: 4 Simple Tips
Luxurious, spa-like treatment to the bathroom can go a long way in getting buyers attention, and it doesn’t have to break the bank to get the look either. An article by Michael Keith with the Associated Press, Transforming a Bath Into a Spa Can Be Easy, contained several tips from designers on how to transform a bathroom into a relaxing, retreat.
Here are four simple tips:
1. Use light colors. Try light color palettes, such as seafoam green and white. Then finish the look by using simple black-and-white photographs of ocean waves on the walls.
2. Choose white fabrics. White gives you a clean, crisp feel. Try white towels and bath mats to brighten the bathroom.
3. Play calming music. Get a small iPod dock and play music with ambient nature sounds, ocean waves, or forest breezes.
4. Accessorize. Fill glass cylinders with seashells or river rocks. Also, display a basket with rolled towels.
Friday, September 10, 2010
Monday, August 30, 2010
5 Reasons Homeownership Trumps Renting
The seemingly endless run of bad housing news is discouraging some potential home buyers from considering a purchase. But the truth is that the advantages of homeownership have very little to do with investment gains. The best things about owning a home have a lot more to do with personal comfort and satisfaction.Here are five of them:· Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves.· Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.· Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.· Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.· Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented.
Thursday, August 5, 2010
Alexandria, MN Calander of Events August 2010
Summertime in Alexandria, MN there is always something to do!
August 2010
8/3 – 8/8 Theatre L’Homme Dieu presents Defending the Caveman
8/5 – 8/9 Crazy Days Downtown Alexandria
8/6 Boats, Blues, & BBQ!
8/6 – 8/8 Forada Days!
8/7 Alexandria Beetles Baseball vs. the St. Cloud Riverbats
8/7 Garfield Day
8/7 Viking Speedway Races
8/7 – 8/8 Parkers Prairie Fall Festival
8/7 Festival of the Lakes
8/7 – 8/8 Forada Days
8/8 The Carlos Creek Winery presents Wine, Women & Song Book Club
8/8 Summer Celebration @ Bethel Manor & Winona Shores Apartments
8/8 First Lutheran Community Church Service
8/9 – 8/11 Alexandria Beetles Baseball vs. the Rochester Honkers
8/11 Knute Nelson Community Picnic
8/11 Festival of the Lakes
8/11 Past Presidents Steak Fry Fundraiser
8/13 – 8/15 Rose City Heritage Festival
8/13 – 8/14 Starbuck Chinese Dragon Boat Races
8/13 Festival of the Lakes
8/13 Alexandria Beetles Baseball vs. the Willmar Stingers
8/14 Alexandria United Methodist Church hosts a FREE Community Breakfast
8/14 Viking Speedway Races
8/15 Festival of the Lakes
8/15 First Lutheran Community Church Service
8/18 Annual Rotary Pork Chop and Corn Feed
8/19 – 8/22 Douglas County Fair
8/19 – 8/20 Douglas County Fair ~ Demolition Derby
8/20 – 8/21 Forada Fest 2010
8/21 Douglas County Fair - Viking Speedway Races
8/22 First Lutheran Community Church Service
8/23 – 9/2 Holden Village - Chelan Wash - BUS TOUR
8/28 Outdoor Show at the Shooting Park
8/28 Viking Speedway Races
August 2010
8/3 – 8/8 Theatre L’Homme Dieu presents Defending the Caveman
8/5 – 8/9 Crazy Days Downtown Alexandria
8/6 Boats, Blues, & BBQ!
8/6 – 8/8 Forada Days!
8/7 Alexandria Beetles Baseball vs. the St. Cloud Riverbats
8/7 Garfield Day
8/7 Viking Speedway Races
8/7 – 8/8 Parkers Prairie Fall Festival
8/7 Festival of the Lakes
8/7 – 8/8 Forada Days
8/8 The Carlos Creek Winery presents Wine, Women & Song Book Club
8/8 Summer Celebration @ Bethel Manor & Winona Shores Apartments
8/8 First Lutheran Community Church Service
8/9 – 8/11 Alexandria Beetles Baseball vs. the Rochester Honkers
8/11 Knute Nelson Community Picnic
8/11 Festival of the Lakes
8/11 Past Presidents Steak Fry Fundraiser
8/13 – 8/15 Rose City Heritage Festival
8/13 – 8/14 Starbuck Chinese Dragon Boat Races
8/13 Festival of the Lakes
8/13 Alexandria Beetles Baseball vs. the Willmar Stingers
8/14 Alexandria United Methodist Church hosts a FREE Community Breakfast
8/14 Viking Speedway Races
8/15 Festival of the Lakes
8/15 First Lutheran Community Church Service
8/18 Annual Rotary Pork Chop and Corn Feed
8/19 – 8/22 Douglas County Fair
8/19 – 8/20 Douglas County Fair ~ Demolition Derby
8/20 – 8/21 Forada Fest 2010
8/21 Douglas County Fair - Viking Speedway Races
8/22 First Lutheran Community Church Service
8/23 – 9/2 Holden Village - Chelan Wash - BUS TOUR
8/28 Outdoor Show at the Shooting Park
8/28 Viking Speedway Races
Clearing the Closing Hurdles
Anticipate problems before they happen and your closings will stay on track.
All your hard work has paid off. The purchase contract is signed. Now you can just sit back and wait to get paid. Wrong!
"Sometimes clients and salespeople think the closing is going to be a piece of cake, but these days, having a contract is only the beginning," says Mary Sand, ABR, SFR, a branch manager and director of training with Century 21 Arizona Foothills in Phoenix.
According to recent REALTORS® Confidence Index surveys conducted by the NATIONAL ASSOCIATION OF REALTORS®, between 10 percent and 14 percent of pending transactions don’t close. Another 20 percent are delayed but eventually close.
The easiest way to avoid a closing delay is to do your homework up front, says Alicia Trevino, president and CEO of Century 21 Fine Homes & Estates in Dallas.
"Most of the time, a problem at closing really starts much earlier," she says.
Trevino encourages her 52 sales associates to use a checklist of tasks that must be completed. She suggests they review the list weekly and make follow-up phone calls to lenders and title companies, as needed.
Setting realistic client expectations is also essential. "Before they sign the purchase agreement, you need to educate your clients about the possible closing hurdles. You don’t want to scare them, but they do need to understand what could go wrong—from buyers who can’t qualify for a loan to delays with title," Sand says.
Most hurdles that delay or prevent closings fall into three major areas: loans and appraisals, titles, and home inspections. By focusing in on the most common closing hurdles in each of these areas, you can gain control of your transactions and master the intricate details that make a closing happen.
PROBLEM: Financing falls through at the last minute
SOLUTION: Help buyers get their documentation in order
Tighter—and in some cases still-evolving—loan underwriting standards make it more critical than ever for buyers to make sure they’re financially qualified for the purchase, says Marki Lemons, ABR, CRB, a broker with Keller Williams Realty Chicago Consulting Group.
However, because of new requirements under the Real Estate Settlement and Procedures Act, many lenders are no longer issuing preapprovals—only prequalifications. If a buyer you’re working with has just a prequalification letter, Lemons recommends finding out whether income and assets have been verified.
"I look for a letter that shows the buyer has talked to someone face-to-face, not just completed an online form," says Laura Sanders, a sales associate with Sibcy Cline Inc., REALTORS®, in Florence, Ky.
Tighter lending standards and heightened concern about mortgage fraud also mean more time-consuming paperwork, says Tracey Rumsey, a mortgage loan broker with Southwest Business Corp. in Bountiful, Utah, and author of Saving the Deal (AMACOM, 2008).
"Mortgage brokers have had to relearn the underwriting process and ask all the questions up front," she says.
For example, not only do FHA buyers who receive funds from a family member have to disclose the gift and its source, but the person making the gift must also show the source of the funds. "It’s easy to overlook this requirement, but you can’t fund the loan without it," she says.
New condominiums can be a particular loan challenge because the FHA requires that 50 percent of the development’s units must be under contract before the agency will approve financing for individual condos.
"The FHA was doing spot loan approvals for a while, but it’s getting harder," Sanders says. Unless an exception is made, a buyer will have to shift out of an FHA product. Lenders are also asking to see statements of homeowner’s association reserves before approving a loan, which can create "a great deal of difficulty at the last minute if the HOA isn’t cooperative," she says.
Lenders and mortgage loan investors in the secondary market are scrutinizing actual tax transcripts from the IRS much more closely, Rumsey says. She recalls a recent transaction in which a husband and wife had enough income to qualify for the loan amount.
However, the lender’s review of their tax forms found the wife had an $8,000 loss from a side business, which dropped their income to below the required amount.
PROBLEM: Appraised value doesn’t support contracted sale price
SOLUTION: Become an ally of the appraiser
"The biggest hurdle to closing in an uncertain market is the lack of comps, especially for FHA and VA loans that require comps to be within a three-month time limit," says John Mijac, e-PRO, GRI, with Old Adobe Realty in Tucson, Ariz.
To bridge the gap between his clients’ $175,000 offer and a recent comp that sold for $145,000, Mijac did a new CMA that justified the offer price.
Still, the appraiser wouldn’t budge. So Mijac worked with the listing agent to send supporting documents to Fannie Mae and ask for an adjustment. The property finally appraised and sold at $165,000.
Questioning comps in transactions involving VA loans has gotten easier since the implementation of the so-called "Tidewater Initiative" in 2003. It allows any party of a real estate transaction to supply market data and information on recently sold properties to a VA appraiser through a designated third-party contact.
"Tidewater lets you use comps outside of your area and other material justifications to support a price," Mijac says.
"Occasionally, we have trouble with values and current comps," says Kara Folkins, a sales associate with Keller Williams Realty in Tulsa, Okla. FHA underwriters prefer to see data on two comparable properties that sold in the last 90 days, one that has sold within the past six months, and one that’s currently on the market.
"In some neighborhoods, that’s hard to find," Folkins says. She’s comfortable asking appraisers to help her understand where they got their comps. She’s also hired second appraisers to present another picture of value.
The Home Valuation Code of Conduct, or HVCC, "has taken away the power of lenders to do quick closings," Trevino says. The federal regulations, meant to ensure the inteGRIty of the appraisal process, require that appraisers are assigned by a third party, such as an appraisal management company.
If an appraiser isn’t familiar with the neighborhood or property type, the result could be a value that’s way off base.
Buyers of securitized loans also are doing more due diligence on home values these days, and that can present another appraisal hurdle. "We had a transaction where the secondary market underwriter questioned the appraisal because it didn’t match up with the value on Zillow," says Gary Kenline, CRB, senior vice president at Hunt Real Estate Corp. in Buffalo, N.Y.
In transactions involving a foreclosed home, it’s not unusual for the bank that owns the property to balk at a valuation that it sees as being too low, Lemons says.
To make the transaction work, "a CMA just doesn’t cut it any more," she says. "You have to take the take the time to submit a report that paints a picture of the property’s condition and a neighborhood that the banker has never seen."
PROBLEM: New lending and closing regulations create delays
SOLUTION: Understand rules and allow time for compliance
Recent changes to the federal Truth in Lending Act and RESPA can slow the closing process. "The new HUD-1 form adds a few more hours of document preparation because underwriters and escrow agents aren’t familiar with it yet," Mijac says.
"A lot of people didn’t expect the new RESPA rules to go forward and didn’t update their software programs or start training soon enough," says Alyce Ritchie, a partner with Morris/Hardwick/Schneider in Atlanta.
Unfamiliarity and the fear of making a costly mistake in the Good Faith Estimate form are sometimes prompting lenders to ask for closing-cost information more than once or in several formats, Folkins says.
Lending rules have also made it harder to close on time if circumstances change late in the deal. Amendments to the Truth in Lending Act require a three-day disclosure period if a borrower decides to change the loan amount or anything else that can change the interest rate. "Changes of more than 0.125 percent in the APR immediately trigger another disclosure," Rumsey says.
To prevent delays, avoid last-minute changes whenever possible. But sometimes, when the matter is out of your control, the best thing you can do is help your client have expectations about how long the transaction will take.
PROBLEM: Title can’t be transferred at closing
SOLUTION: Investigate potential title troubles early
Title defects are another major closing hurdle—but one that can often be avoided with preplanning, Trevino says.
"We open title as soon as we take a listing," she says. A preliminary title search can reveal an array of problems, from unpaid taxes to land-use restrictions. The fee is "nominal" and can usually be rolled into the final title work if the buyer agrees to use the same title company that does the search, Trevino says.
You can head off many title problems if you add a checklist to the purchase contract quizzing buyers and sellers about the status of issues that can encumber a title, Kenline says.
"We ask about bankruptcies, agricultural districts, and oil and gas leases" that may be tied to the property. Unfortunately, when it comes to liens, checklists don’t always help, since "people are often in denial and don’t want to admit that they have a financial problem," he says.
Short sales and REOs are particularly prone to title problems. "You might find liens for things like HOA fees or unpaid repair costs," Sand says. Even if the liens are in error, they can put a cloud on the title, and that can delay a closing.
John McCain, division president of Stewart Title North Texas in Dallas, says bankruptcy and pending foreclosure are among the most common issues that delay a closing today. All three of these things can cause title problems.
With bankruptcies, you need to search federal records to be sure that there are no conditions affecting the disbursement of proceeds that need to be met before the sale. The bankruptcy court also has to approve the contract prior to closing.
And if an owner is trying to sell a property before foreclosure, check with the lender to be sure the property hasn’t been posted for foreclosure and is still available to sell, McCain says. Also, be sure the proceeds are enough to pay off the mortgage lien and any fees from late payments.
PROBLEM: A home inspection uncovers serious issues
SOLUTION: Look into possible repairs before buyer’s inspection
The time it takes to negotiate which party pays for repairs and get estimates—and sometimes even complete the work—can spell big delays for a closing. "People want a perfect house. We see buyers renegotiating repairs two or three times," Kenline says.
One way to head off last-minute wrangling is to get a home inspection and make repairs before the property is on the market. However, that practice isn’t endorsed across the board.
"I tried doing inspections before marketing, but didn’t see the benefit," Sanders says. In most cases, buyers want their own inspector, and the results of two inspections often differ, especially when a property is on the market for a long time, she says.
An alternative to a prelisting inspection: Walk through the property with sellers and ask about the condition and age of major components like the roof and foundation. Then get estimates on what potential repairs will cost. "Sellers don’t necessarily have to fix the problems, but knowing what they might have to spend will help them price the house," Mijac says. The estimates can also speed repair negotiations.
Alerting buyers to possible high-ticket repairs and suggesting that they factor those potential repair costs into their offer can also cut down on post-contract negotiations, suggests Phyllis Harb, a sales associate with Dickson Podley, REALTORS®, in Pasadena, Calif.
Repairs required by VA appraisers can delay a closing because the work must be completed before the property can change hands, notes Mijac. Another hurdle with VA loans: a buyer can’t agree to pay for a repair, which can be a big problem if the seller can’t or won’t pay.
No matter how much you plan ahead, it often seems that closings are just taking longer today, Harb says. Indeed, the "new normal" may be that it takes 45 or even 60 days from the date the contract is signed to close the transaction.
You can get a realistic estimate of a client’s closing date by creating a timeline of how long various inspections and approvals are taking in your area, suggests Trevino. "If it takes 10 business days to get an inspection and two-weeks to get a survey, you shouldn’t count on closing in 30 days."
All your hard work has paid off. The purchase contract is signed. Now you can just sit back and wait to get paid. Wrong!
"Sometimes clients and salespeople think the closing is going to be a piece of cake, but these days, having a contract is only the beginning," says Mary Sand, ABR, SFR, a branch manager and director of training with Century 21 Arizona Foothills in Phoenix.
According to recent REALTORS® Confidence Index surveys conducted by the NATIONAL ASSOCIATION OF REALTORS®, between 10 percent and 14 percent of pending transactions don’t close. Another 20 percent are delayed but eventually close.
The easiest way to avoid a closing delay is to do your homework up front, says Alicia Trevino, president and CEO of Century 21 Fine Homes & Estates in Dallas.
"Most of the time, a problem at closing really starts much earlier," she says.
Trevino encourages her 52 sales associates to use a checklist of tasks that must be completed. She suggests they review the list weekly and make follow-up phone calls to lenders and title companies, as needed.
Setting realistic client expectations is also essential. "Before they sign the purchase agreement, you need to educate your clients about the possible closing hurdles. You don’t want to scare them, but they do need to understand what could go wrong—from buyers who can’t qualify for a loan to delays with title," Sand says.
Most hurdles that delay or prevent closings fall into three major areas: loans and appraisals, titles, and home inspections. By focusing in on the most common closing hurdles in each of these areas, you can gain control of your transactions and master the intricate details that make a closing happen.
PROBLEM: Financing falls through at the last minute
SOLUTION: Help buyers get their documentation in order
Tighter—and in some cases still-evolving—loan underwriting standards make it more critical than ever for buyers to make sure they’re financially qualified for the purchase, says Marki Lemons, ABR, CRB, a broker with Keller Williams Realty Chicago Consulting Group.
However, because of new requirements under the Real Estate Settlement and Procedures Act, many lenders are no longer issuing preapprovals—only prequalifications. If a buyer you’re working with has just a prequalification letter, Lemons recommends finding out whether income and assets have been verified.
"I look for a letter that shows the buyer has talked to someone face-to-face, not just completed an online form," says Laura Sanders, a sales associate with Sibcy Cline Inc., REALTORS®, in Florence, Ky.
Tighter lending standards and heightened concern about mortgage fraud also mean more time-consuming paperwork, says Tracey Rumsey, a mortgage loan broker with Southwest Business Corp. in Bountiful, Utah, and author of Saving the Deal (AMACOM, 2008).
"Mortgage brokers have had to relearn the underwriting process and ask all the questions up front," she says.
For example, not only do FHA buyers who receive funds from a family member have to disclose the gift and its source, but the person making the gift must also show the source of the funds. "It’s easy to overlook this requirement, but you can’t fund the loan without it," she says.
New condominiums can be a particular loan challenge because the FHA requires that 50 percent of the development’s units must be under contract before the agency will approve financing for individual condos.
"The FHA was doing spot loan approvals for a while, but it’s getting harder," Sanders says. Unless an exception is made, a buyer will have to shift out of an FHA product. Lenders are also asking to see statements of homeowner’s association reserves before approving a loan, which can create "a great deal of difficulty at the last minute if the HOA isn’t cooperative," she says.
Lenders and mortgage loan investors in the secondary market are scrutinizing actual tax transcripts from the IRS much more closely, Rumsey says. She recalls a recent transaction in which a husband and wife had enough income to qualify for the loan amount.
However, the lender’s review of their tax forms found the wife had an $8,000 loss from a side business, which dropped their income to below the required amount.
PROBLEM: Appraised value doesn’t support contracted sale price
SOLUTION: Become an ally of the appraiser
"The biggest hurdle to closing in an uncertain market is the lack of comps, especially for FHA and VA loans that require comps to be within a three-month time limit," says John Mijac, e-PRO, GRI, with Old Adobe Realty in Tucson, Ariz.
To bridge the gap between his clients’ $175,000 offer and a recent comp that sold for $145,000, Mijac did a new CMA that justified the offer price.
Still, the appraiser wouldn’t budge. So Mijac worked with the listing agent to send supporting documents to Fannie Mae and ask for an adjustment. The property finally appraised and sold at $165,000.
Questioning comps in transactions involving VA loans has gotten easier since the implementation of the so-called "Tidewater Initiative" in 2003. It allows any party of a real estate transaction to supply market data and information on recently sold properties to a VA appraiser through a designated third-party contact.
"Tidewater lets you use comps outside of your area and other material justifications to support a price," Mijac says.
"Occasionally, we have trouble with values and current comps," says Kara Folkins, a sales associate with Keller Williams Realty in Tulsa, Okla. FHA underwriters prefer to see data on two comparable properties that sold in the last 90 days, one that has sold within the past six months, and one that’s currently on the market.
"In some neighborhoods, that’s hard to find," Folkins says. She’s comfortable asking appraisers to help her understand where they got their comps. She’s also hired second appraisers to present another picture of value.
The Home Valuation Code of Conduct, or HVCC, "has taken away the power of lenders to do quick closings," Trevino says. The federal regulations, meant to ensure the inteGRIty of the appraisal process, require that appraisers are assigned by a third party, such as an appraisal management company.
If an appraiser isn’t familiar with the neighborhood or property type, the result could be a value that’s way off base.
Buyers of securitized loans also are doing more due diligence on home values these days, and that can present another appraisal hurdle. "We had a transaction where the secondary market underwriter questioned the appraisal because it didn’t match up with the value on Zillow," says Gary Kenline, CRB, senior vice president at Hunt Real Estate Corp. in Buffalo, N.Y.
In transactions involving a foreclosed home, it’s not unusual for the bank that owns the property to balk at a valuation that it sees as being too low, Lemons says.
To make the transaction work, "a CMA just doesn’t cut it any more," she says. "You have to take the take the time to submit a report that paints a picture of the property’s condition and a neighborhood that the banker has never seen."
PROBLEM: New lending and closing regulations create delays
SOLUTION: Understand rules and allow time for compliance
Recent changes to the federal Truth in Lending Act and RESPA can slow the closing process. "The new HUD-1 form adds a few more hours of document preparation because underwriters and escrow agents aren’t familiar with it yet," Mijac says.
"A lot of people didn’t expect the new RESPA rules to go forward and didn’t update their software programs or start training soon enough," says Alyce Ritchie, a partner with Morris/Hardwick/Schneider in Atlanta.
Unfamiliarity and the fear of making a costly mistake in the Good Faith Estimate form are sometimes prompting lenders to ask for closing-cost information more than once or in several formats, Folkins says.
Lending rules have also made it harder to close on time if circumstances change late in the deal. Amendments to the Truth in Lending Act require a three-day disclosure period if a borrower decides to change the loan amount or anything else that can change the interest rate. "Changes of more than 0.125 percent in the APR immediately trigger another disclosure," Rumsey says.
To prevent delays, avoid last-minute changes whenever possible. But sometimes, when the matter is out of your control, the best thing you can do is help your client have expectations about how long the transaction will take.
PROBLEM: Title can’t be transferred at closing
SOLUTION: Investigate potential title troubles early
Title defects are another major closing hurdle—but one that can often be avoided with preplanning, Trevino says.
"We open title as soon as we take a listing," she says. A preliminary title search can reveal an array of problems, from unpaid taxes to land-use restrictions. The fee is "nominal" and can usually be rolled into the final title work if the buyer agrees to use the same title company that does the search, Trevino says.
You can head off many title problems if you add a checklist to the purchase contract quizzing buyers and sellers about the status of issues that can encumber a title, Kenline says.
"We ask about bankruptcies, agricultural districts, and oil and gas leases" that may be tied to the property. Unfortunately, when it comes to liens, checklists don’t always help, since "people are often in denial and don’t want to admit that they have a financial problem," he says.
Short sales and REOs are particularly prone to title problems. "You might find liens for things like HOA fees or unpaid repair costs," Sand says. Even if the liens are in error, they can put a cloud on the title, and that can delay a closing.
John McCain, division president of Stewart Title North Texas in Dallas, says bankruptcy and pending foreclosure are among the most common issues that delay a closing today. All three of these things can cause title problems.
With bankruptcies, you need to search federal records to be sure that there are no conditions affecting the disbursement of proceeds that need to be met before the sale. The bankruptcy court also has to approve the contract prior to closing.
And if an owner is trying to sell a property before foreclosure, check with the lender to be sure the property hasn’t been posted for foreclosure and is still available to sell, McCain says. Also, be sure the proceeds are enough to pay off the mortgage lien and any fees from late payments.
PROBLEM: A home inspection uncovers serious issues
SOLUTION: Look into possible repairs before buyer’s inspection
The time it takes to negotiate which party pays for repairs and get estimates—and sometimes even complete the work—can spell big delays for a closing. "People want a perfect house. We see buyers renegotiating repairs two or three times," Kenline says.
One way to head off last-minute wrangling is to get a home inspection and make repairs before the property is on the market. However, that practice isn’t endorsed across the board.
"I tried doing inspections before marketing, but didn’t see the benefit," Sanders says. In most cases, buyers want their own inspector, and the results of two inspections often differ, especially when a property is on the market for a long time, she says.
An alternative to a prelisting inspection: Walk through the property with sellers and ask about the condition and age of major components like the roof and foundation. Then get estimates on what potential repairs will cost. "Sellers don’t necessarily have to fix the problems, but knowing what they might have to spend will help them price the house," Mijac says. The estimates can also speed repair negotiations.
Alerting buyers to possible high-ticket repairs and suggesting that they factor those potential repair costs into their offer can also cut down on post-contract negotiations, suggests Phyllis Harb, a sales associate with Dickson Podley, REALTORS®, in Pasadena, Calif.
Repairs required by VA appraisers can delay a closing because the work must be completed before the property can change hands, notes Mijac. Another hurdle with VA loans: a buyer can’t agree to pay for a repair, which can be a big problem if the seller can’t or won’t pay.
No matter how much you plan ahead, it often seems that closings are just taking longer today, Harb says. Indeed, the "new normal" may be that it takes 45 or even 60 days from the date the contract is signed to close the transaction.
You can get a realistic estimate of a client’s closing date by creating a timeline of how long various inspections and approvals are taking in your area, suggests Trevino. "If it takes 10 business days to get an inspection and two-weeks to get a survey, you shouldn’t count on closing in 30 days."
Monday, February 22, 2010
IRS Clarifies What's Needed to Claim Tax Credit
The Internal Revenue Service has clarified which documentation taxpayers need to submit to claim the first-time and move-up homebuyer tax credit.While the IRS is still requiring the filing of Form 5405, it is not demanding that all parties’ signatures be on the HUD-1 settlement document in areas where requiring both the buyer and the seller to sign the document isn’t common. The IRS clarification says: "In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. … The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.”For repeat buyers, the IRS is seeking documentation that home buyers have lived in the previous property for a consecutive five of the past eight years. Proof can include property tax records, home owner insurance records, or mortgage interest statements.
Wednesday, February 17, 2010
Lake Ida Home For Sale!!!
Beautiful new listing on Lake Ida! This home sit's on 100' of Lakeshore for $249,500! Click here to see the virtual tour: http://www.cpgtours.com/8471
Call Sue for more details: (320) 223-0762
Monday, February 8, 2010
4 Reasons to Sell NOW!
Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign.
Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.
Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.
Thursday, January 28, 2010
Recovery Act Provides Addtional Funding for USDA Rural Development Home Loans.
Recovery Act Provides Additional Funding for USDA Rural Development Home Loan Programs in 2010
Home buyers may also qualify for tax credits that are available through June 30
USDA Rural Development will have about $42 million available through its direct home loan program targeted at low-income residents throughout rural Minnesota in 2010. Qualified first-time and repeat home buyers may also be eligible for tax credits made possible by the Worker, Homeownership and Business Assistance Act of 2009.
Qualified first-time home buyers may be eligible for up to an $8,000 tax credit and repeat buyers may qualify for up to $6,500. Both programs are scheduled to expire on June 30, 2010.
Rural Development’s direct home loan program is intended to help very low and low income residents living in rural areas achieve home ownership. Applicants must be unable to obtain credit elsewhere and demonstrate repayment ability. A payment subsidy is also available to applicants to enhance repayment ability.
Rural Development also has a guaranteed home loan program intended for moderate income rural residents. The program does not have a down payment requirement and loans are made to homeowners by an approved lender.
For both the direct and guaranteed program, applicants may purchase a new home, existing home or build a new home.
Low-interest loans are also available for low-income residents to make home repairs. Grants are available to home owners over the age of 62 and must be used to remove health and safety hazards.
For more information, including income limits and ineligible areas, contact your local Rural Development office at 320-763-3191, ext. 4. For more information on both tax credits, visit http://www.federalhousingtaxcredit.com/home.html. For more information on Rural Development, visit www.rurdev.usda.gov/mn.
Home buyers may also qualify for tax credits that are available through June 30
USDA Rural Development will have about $42 million available through its direct home loan program targeted at low-income residents throughout rural Minnesota in 2010. Qualified first-time and repeat home buyers may also be eligible for tax credits made possible by the Worker, Homeownership and Business Assistance Act of 2009.
Qualified first-time home buyers may be eligible for up to an $8,000 tax credit and repeat buyers may qualify for up to $6,500. Both programs are scheduled to expire on June 30, 2010.
Rural Development’s direct home loan program is intended to help very low and low income residents living in rural areas achieve home ownership. Applicants must be unable to obtain credit elsewhere and demonstrate repayment ability. A payment subsidy is also available to applicants to enhance repayment ability.
Rural Development also has a guaranteed home loan program intended for moderate income rural residents. The program does not have a down payment requirement and loans are made to homeowners by an approved lender.
For both the direct and guaranteed program, applicants may purchase a new home, existing home or build a new home.
Low-interest loans are also available for low-income residents to make home repairs. Grants are available to home owners over the age of 62 and must be used to remove health and safety hazards.
For more information, including income limits and ineligible areas, contact your local Rural Development office at 320-763-3191, ext. 4. For more information on both tax credits, visit http://www.federalhousingtaxcredit.com/home.html. For more information on Rural Development, visit www.rurdev.usda.gov/mn.
Tuesday, January 26, 2010
Ten Inexpensive Ways to Wow Buyers!
Now is the time for home owners contemplating a spring sale to spruce up their properties in anticipation of what Mike Larson of Weiss Research calls a potentially vibrant home-selling season. "If you have been beating your head against a wall, this is going to feel a lot better,” he jokes.Here are 10 cheap ways to make a property more attractive to shoppers.
1. Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.
2. Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.
3. Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.
4. Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.
5. Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.
6. Buy warranties. Putting appliances under warranty gives homebuyers a secure feeling.
7. Improve energy efficiency. New windows or improved insulation tell a potential buyer the seller is on top of things plus they come with tax benefits.
8. Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.
9. Buy a stove. Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.
10. Tidy up the bathrooms. Get rid of mildew, replace caulking and replace stained sinks.
1. Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.
2. Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.
3. Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.
4. Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.
5. Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.
6. Buy warranties. Putting appliances under warranty gives homebuyers a secure feeling.
7. Improve energy efficiency. New windows or improved insulation tell a potential buyer the seller is on top of things plus they come with tax benefits.
8. Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.
9. Buy a stove. Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.
10. Tidy up the bathrooms. Get rid of mildew, replace caulking and replace stained sinks.
Friday, January 22, 2010
30ear Mortgage Rates Slide Below 5%
30-Year Mortgage Rates Slide Below 5% Long-term mortgage rates fell for the third straight week, pushing the average rate on 30-year fixed home loans below 5 percent again, according to Freddie Mac. This week, average interest on 30-year mortgages was 4.99 percent, compared to 5.06 percent last week and 5.16 percent a year ago. Rates on 15-year fixed loans also followed bond yields lower, averaging 4.40 percent, compared to 4.45 percent last week; and adjustable-rate mortgages also fell this week.
Tuesday, January 19, 2010
Ask Your Lender for a Good Faith Estimate
Some Lenders Skirt GFE Requirements Some lenders are avoiding the requirement that they lock in the good faith estimate by providing something loan officers are calling "worksheets” or “loan scenario forms" that don’t have to meet a government accuracy standard.The worksheets contain some of the information provided by a good faith estimate. They are typically provided to shoppers who don’t provide – and often aren’t asked to provide – key information, such as the address of the property to be financed.Loan officers defend the worksheets, saying that it is impossible to provide completely accurate estimates. But Vicki Bott, a deputy assistant secretary for the Department of Housing and Urban Development, says if these worksheets turn out to be a way for lenders to avoid meeting their obligations, the department will respond by tightening the guidelines.Meanwhile, buyers should ask for the good-faith estimate by name, so they get an accurate estimate of costs.
Wednesday, January 6, 2010
Sellers should List Homes Early!
Selling a home in the dead of winter might seem ill-advised, particularly considering the state of the economy, but some experts think that making the decision to wait until spring to list the property could be a mistake.Government incentives will likely have a big impact in 2010, with many buyers determined to sign a contract before the April 30 tax credit deadline.“This year, we're anticipating sales will peak earlier,” says Nicole Hall, editor in chief of Lendingtree.com, an online mortgage comparison service. “The best time to get your house on the market will be February or early March, and maybe even earlier if you want to avoid competition.”
Tuesday, January 5, 2010
Pending Home Sales Down from Surge Contract
Activity for pending home sales fell after a surge of activity in preceding months to beat the original deadline for the first-time home buyer tax credit. However, it remains comfortably above the level from a year ago, according to the NATIONAL ASSOCIATION OF REALTORS®.The Pending Home Sales Index, a forward-looking indicator based on contracts signed in November, fell 16 percent to 96.0 from an upwardly revised 114.3 in October, but is 15.5 percent higher than November 2008 when it was 83.1.Lawrence Yun, NAR chief economist, said a drop was expected. “It will be at least early spring before we see notable gains in sales activity as home buyers respond to the recently extended and expanded tax credit,” he said. “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own. We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”
Buyers who have a contract in place to purchase a primary residence by April 30 have until June 30 to finalize the transaction to qualify for the tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.By Region
The PHSI in the Northeast dropped 25.7 percent to 74.4 in November but is 14.7 percent above a year ago.
In the Midwest the index fell 25.7 percent to 82.0 but is 9.2 percent higher than November 2008.
Pending home sales in the South fell 15.0 percent to 97.8, but are 14.7 percent higher than a year ago.
In the West the index declined 2.7 percent to 124.6 but is 21.4 percent above November 2008.Interest Rates Likely to Go HigherYun projects an additional 900,000 first-time buyers will qualify for the extended tax credit, in addition to about 2 million who have already purchased; 1.5 million repeat buyers also are expected to benefit from the credit.“Many trade-up buyers, who have historically timed their purchase based on school-year considerations, will have to accelerate their buying plans if they need the tax credit to make a trade,” Yun said. Repeat buyers do not have to sell their existing home to qualify for the credit, but they must occupy the home they buy as their primary residence.Yun added that mortgage interest rates cannot remain at rock-bottom levels for a sustained period and will likely inch higher in 2010. But the tax credit impact in the first half of the year and expected job-growth impact in the second half will support home buying activity and absorb enough inventory to bring a rough balance between buyers and sellers. Home prices are expected to stabilize or even modestly rise as a result in 2010.
Buyers who have a contract in place to purchase a primary residence by April 30 have until June 30 to finalize the transaction to qualify for the tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.By Region
The PHSI in the Northeast dropped 25.7 percent to 74.4 in November but is 14.7 percent above a year ago.
In the Midwest the index fell 25.7 percent to 82.0 but is 9.2 percent higher than November 2008.
Pending home sales in the South fell 15.0 percent to 97.8, but are 14.7 percent higher than a year ago.
In the West the index declined 2.7 percent to 124.6 but is 21.4 percent above November 2008.Interest Rates Likely to Go HigherYun projects an additional 900,000 first-time buyers will qualify for the extended tax credit, in addition to about 2 million who have already purchased; 1.5 million repeat buyers also are expected to benefit from the credit.“Many trade-up buyers, who have historically timed their purchase based on school-year considerations, will have to accelerate their buying plans if they need the tax credit to make a trade,” Yun said. Repeat buyers do not have to sell their existing home to qualify for the credit, but they must occupy the home they buy as their primary residence.Yun added that mortgage interest rates cannot remain at rock-bottom levels for a sustained period and will likely inch higher in 2010. But the tax credit impact in the first half of the year and expected job-growth impact in the second half will support home buying activity and absorb enough inventory to bring a rough balance between buyers and sellers. Home prices are expected to stabilize or even modestly rise as a result in 2010.
Monday, January 4, 2010
Welcome 2010!
A new year is always a fresh start for all of us. It is so refreshing to see that when this is typically our slowest time of year, Alexandria real estate market has maintained a nice steady pace. Even with the sub zero temps, I believe buyers are realizing what a great opportunity the tax credit truly is! With short sales and foreclosures still looming in our market, buyers are getting some amazing deals! Please visit my website to see what is available on the market (www.suepalmquist.com).
Will Home Prices Go Down in 2010?
Will Home Prices Go Down in 2010? Some real estate researchers are forecasting that home prices will fall again in 2010.· Fiserv Lending Solutions, a financial analytics firm, predicts that prices will decline an average of 11.3 percent in 342 of the 381 markets it covers.· Moody’s Economy.com foresees another 8 percent drop, with Arizona, California, Florida, and Nevada feeling even more pain.· Shari Olefson, author of Foreclosure Nation: Mortgaging the American Dream, predicts a national average decline in prices of about 10 percent in 2010.· Peter Schiff, president of Euro Pacific Capital and the most bearish of the bears, says real estate prices could possibly fall another 30 percent before they hit bottom.NATIONAL ASSOCIATION OF REALTORS® Chief Economist Lawrence Yun sees it all differently. He predicts home prices will rise more than 3 percent in 2010."The headwind we face is rising mortgage interest rates," Yun says, "but the compensating factors will be the home buyers tax credit in the first half of the year and increased job creation in the second half."
Subscribe to:
Posts (Atom)