Holiday Whimsy

Whimsical Blue Dog art by George Rodrigue

Holiday Wishes

Wishing you peace, joy, health and happiness
this holiday season and throughout the coming year.

Stop back for future posts.............

Tips for Buying at a Foreclosure Auction

If you’re thinking about buying a house at a foreclosure auction, here’s some advice from experienced auction buyers.

Pay cash. Most auctions require you to close in fewer than 30 days. That’s not enough time to get a bank loan. Hard-money loans are an option, but the going rate is 15 percent plus points, and refinancing right away is probably not an option.

Check the place out. Most auction companies working for banks will let you get in with an inspector a week or so before the sale.

Get a separate appraisal. A knowledgeable appraiser can keep you from getting caught up in the frenzy and paying too much.

Look for short sales. Instead of buying at a foreclosure auction, negotiate a short sale prior to foreclosure. Buying short takes patience, but you are likely to get a very good deal.

Source: Fortune, David Whitford (12/22/2008)

Curb Appeal - Before & After

Before

After

Thanks to a neighbor of mine for sharing an great example of how one can change the curb appeal for a property with a little work. While their home has always had great appeal, the landscaping had matured to the point that is was masking the beauty of the "bones" of the house. Windows were covered blocking the entry of natural light into the house. Bushes encroached on the front entry. Oversized shrubbery presented a potential security issue. Looks great now and will only get better as the new plantings mature. Nice job Norm!

Key Interest Rate as low as it can go

The Federal Reserve on Tuesday lowered its benchmark federal funds rate to a range or zero to 0.25 percent and said it would likely keep rates low for an extended period.

"The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability," the Fed said.

The Fed also said it was prepared to purchase more debt issued or guaranteed by Fannie Mae, Freddie Mac and other government-sponsored mortgage agencies. And it said it is considering purchases of longer-term U.S. Treasury debt.

"The focus of the committee's policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve's balance sheet at a high level," it said.

Michael Woolfolk, senior currency strategist, at the Bank of New York-Mellon, applauded the Fed’s approach. "We think it's the best possible move for the U.S. consumer and for the financial market," Woolfolk said.

Source: Reuters News, Mark Felsenthal (10/16/2008)

REALTOR® vs. Real Estate Agent

There is a difference between a REALTOR® and Real estate agent.

Ever wonder what the difference is between a REALTOR® and a real estate agent? You might think it’s just another way of saying the same thing. It’s not. Only real estate professionals who belong to the National Association of REALTORS® (as well as the state and local associations) can call themselves REALTORS®.

A real estate agent holds a state license but a REALTOR® has taken the extra steps to join the local board of REALTORS® and subscribes to a strict Code of Ethics. In other words, REALTORS® have to be fair to everyone in a deal because they answer to their peers.

Now you might be saying, “I can represent myself in the deal and I’ll save money.” Think of it this way: with a good REALTOR® you have an experienced professional who can guide you through the tricky stuff.

REALTORS® have access to many resources they may be able to get you a better deal, so that extra money you were planning to save by representing yourself will be covered.

Moreover, a REALTOR® will handle everything for you – from advertising to research to all that boring paperwork, so you’ll save time, too.

A REALTOR® knows the market and that will also save you time. If you try to sell your home by yourself you run the risk of overpricing it, prolonging how long that “For Sale” sign sits on your lawn.

When it comes to the buyer, a REALTOR® is the best person to negotiate the ins and outs of the sale. A REALTOR®:
* Knows how to show the home best, protecting you later on if you get a difficult buyer
* Guides you through the financially intimidating process of buying a home
* Helps you determine what you can afford and how to pay for it
* Know the extra costs that go beyond the “For Sale” price – like taxes, closing costs, mortgage prices and down payments.
* When buying or selling a home, it’s easy to get lost in the details. A REALTOR® is the best way to make sure you don’t forget anything and get the best deal.

Hire a REALTOR®

Hiring a REALTOR® makes the process go easier. Buying or selling a home can be daunting, requiring many professionals taking you through every step. Or, you can go it alone. But an estimated 85 percent of real estate transactions occur with the help of a REALTOR®. An NAR survey of recent home buyers and sellers found that sellers using a REALTOR ® fetched a median home price that was 16 percent higher -- $230,000 vs. $198,200.

A REALTOR® is the best option. Relying on a REALTORS® experience makes financial sense: Your REALTOR®:
* Can give you up-to-date information on what’s happening in the market and the price, financing, terms and conditions of competing properties
* Markets your property to other real estate agents and the public
* Can recommend repairs or upgrades that make it a lot easier to sell your home
* Gets the word out about your property to other agents
* Will know when, where and how to advertise your property
* Screen homebuyers and lead the tours through the house
* Deal with all that paperwork and the technical questions.

Don’t just settle for the REALTOR® asking for the lowest commission. You wouldn’t go for the least expensive surgeon if your life depended on it, so why go cheap on such a major investment?

(excerpted from the Pennsylvania Association of Realtors Website)

Buyers - Should I Wait?

Wow! What an interesting market! And it's only going to continue to get more interesting. There's lots of talk about trying to jump start the economy using the housing market as the platform for recovery. One of the options being hinted at is a low (maybe 4 1/2%) mortgage interest rate for residential home purchases (not refinances).

So, if I'm a buyer do I wait to see if this program materializes? It all depends. Interest rates today hover between the mid 5%'s and the low 6%'s (conventional and FHA) - very attractive rates for recent history. If you're a first time home buyer you may not want to wait. Remember there is a $7,500 tax credit availble to first time buyers - but that is only available for a limited time (see an earlier post in this blog for more information on that credit). If immediate cash flow is important to you in purchasing a home, the value of the credit may be much higher to you than the lower monthly payment resulting from a lower interest rate.

Another factor to consider is the impact a reduced mortgage rate might have on the inventory of homes from which to choose and the price of that inventory. More buyers will be attracted to the market if a reduced rate is available. Inventories of homes available will decline as more homes are purchased. With fewer homes on the market and an increased amount of demand (more buyers) the price of homes should begin to increase - possibly offsetting the savings one might achieve at a lower interest rate down the road.

When is the right time? Each buyer's situation will drive the timing. A good source of help in assessing your situation is a local Realtor. Call one. They'll be glad to help you evaluate your opportunities.

Location, Location, Location

When searching for a home it is important to remember that you may find many similar houses, but each will be unique if for no other reason than the location or setting on a piece of property.

I recommend to my buyers that when they find a property that appeals to them they should return to it at various times of the day to observe the surroundings, the traffic flow, etc - the changes that take place that they would experience if and when they actually take possession and live there. I'm personally fortunate to have found a property for my family that affords us an ever changing display of art crafted by Mother Nature.

Determine the things that are important to you and look for them as you consider various properties.

Here's an example of something that is important to me - taken just this morning.......

Remodeling Projects With the Highest Returns

For the second year in a row, REALTORS® report that exterior remodeling projects return the most money as a percentage of cost.

On a national level, wood deck additions and all types of siding replacements–upscale fiber cement, midrange vinyl, and upscale foam-backed vinyl–returned more than 80 percent of project costs upon resale. Of these, the most profitable project was upscale fiber cement siding, which recouped 86.7 percent of costs, followed by wood decks at 81.8 percent, midrange vinyl siding at 80.7 percent, and upscale foam-backed vinyl siding at 80.4 percent.

The 2008 Remodeling Cost vs. Value Report compares construction costs with resale values for 30 midrange and upscale remodeling projects comprising additions, remodels and replacements in 79 markets across the country, expanding from 60 markets last year.

Projects With Highest, Lowest Returns

In addition to wood decks and siding, window replacements and kitchen remodels also returned a relatively high percentage of remodeling costs on a national basis.

All types of window replacements–upscale and midrange wood and upscale and midscale vinyl–returned more than 76 percent of costs. A major midrange kitchen remodel returned 76 percent of project costs, while a minor midrange kitchen remodel returned 79.5 percent of costs.

On a national level, bathroom remodels, while still a relatively good investment, do not return as high a percentage as in previous years. A midrange bathroom remodel was estimated to return 74.4 percent on resale, comparable to a midrange attic-to-bedroom conversion, at 73.6 percent of costs recouped, and a midrange basement remodel, at 72.7 percent of costs recouped.

The least profitable remodeling projects in terms of resale value were home office remodels, sunroom additions, and back-up power generators, returning only 54.4 percent, 56.6 percent, and 57.1 percent, respectively, of project costs.

National Association of Realtors® President Charles McMillan says the resale value of any given remodeling project depends on a variety of factors.

“A home’s overall condition, availability and condition of surrounding properties, location, and regional economic climate are all factors that will influence the value of any remodeling project,” he says.

Full project descriptions, as well as national, regional and local project data for the 79 cities covered by the report will be posted at www.costvsvalue.com by Dec. 5.

(excerpted from Daily Real Estate News, National Association of Realtors 12/2/08)

What A Time To Be A Qualified Buyer

December is often a very slow month for home sales. Why? Because most buyers are focused on the upcoming holiday season. What a great time to be active though! Inventories of houses for sale are up and the competition among buyers is down as many take a hiatus from looking during this time of year. If you're really interested in buying now is a great time. Contact a Realtor and they can help you simplify your search even more.

It's The Little Things That Count

As we approach the holidays, particularly with the economic challenges we face, let's not forget that some gifts cost little but go a long way. Just showing you care can be a powerful gift.

George Bernard Shaw once said, "what really flatters a person is that you think them worth flattering".