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St. Petersburg, Florida Area Real Estate Tips and Articles
Financing Info
Bank of America has frozen foreclosures in all 50 states after finding their pile of unreviewed modification applications being igonored and signed off on for foreclosure. This was found out on Friday, Oct. 1st and has steamrolled its way to national attention.
Someone I know has recently been served with papers from BOA and they told me they contacted an attorney for possible recourse as there may have been fraud committed by the BOA employees by not reviewing modification documents and simply moving forward with the foreclosure proceedings.
(follow up note: 3 attorneys turned down the case but there is a class action suit against BOA for just this reason)
Ever since the government passed TARP and HARP, the banks have been overwhelmed with modification applications and seemingly have just ignored many of them. One woman, employed by the bank, reported that she signed over 8,000 foreclosure documents in one month. Unfortunately, many people will not seek legal counsel and may eventually wind up losing their homes.
If you know anyone that has been served papers for foreclosure, please tell them to contact a Real Estate attorney not just for the foreclosure but for possible recourse. Obviously, every case is different, but the moral of this story for now is seek legal representation.
What happens now is anyone's guess. Now that foreclosures are frozen, at least for the time being, some of the current inventory might be moved a little easier - but this is just a guess. For some of the agents that are selling foreclosed homes, this time will be trying, to say the least. Stay tuned!
It's simple math really. We are all aware of the general real estate market being down, but this can be a wonderful opportunity for those looking to move up in price to a bigger home. Selling your house is probably the first thing on your mind, but as a seasoned REALTOR®, I can tell you that even if you have to bring your price down to sell the house, you have to be congnizant of the fact that you will be looking at homes at that reduced price as well.
Let's go over a quick scenario.
You bought your home in 2000 for $180,000. You owe $100,000 on it today. It's currently worth $210,000 now but was worth $260,000 4 years ago. In order to sell the home quickly, you offer it at $209,000 and sell it for $200,000. You find a home you love and it's on the market for $300,000, but 4 years ago it was "worth" $375,000. You offer $285,000 and close at $290,000. That's an $85,000 savings minus your perceived $60,000 loss on your previous home - for a net gain of $25,000.
It is the best time to move up in price if you have stable job or company. Let's not forget your new mortgage will most likely have a better rate that your previous home's rate.
If you are looking to move up in price, this is the time.
Given the economic difficulties that still exist, it's not surprising that many homeowners are looking to home improvement and renovation, rather than buying a new home.
When deciding to undertake a remodeling project, however, there are several invaluable tips to keep in mind as you discuss your home makeover with potential contractors.
Thanks to my network of leading real estate professionals, the Top 5 in Real Estate Network®, I can offer tips to make your home renovation a more streamlined, more palatable experience, courtesy of Stageoflife.com:
Tip #1: Does Your Contractor Have Proof of Insurance?
Ask the contractor to have his insurance company mail or fax a copy of his current contractor insurance card to you. If the contractor can't do this, stay away. Why? If there is an accident at your home, you are then liable. This also applies to any sub-contractor or employee that the contractor may use; those individuals should have active insurance cards faxed or mailed to you as well.
Tip #2: Did You Check References and See Photos?
Ask for at least three references — with two of them being for the same type of project you are planning — and then call the references. Additionally, ask the contractor to provide photos of previous work, especially for the same type of project. If he produces lawn and garden photos and you're planning a bathroom remodel, you may want to check out another contractor.
Tip #3: Does Your Contractor Take Debit or Credit Cards?
Besides your ability to earn a few points, bonus miles or cash back on your project, a good sign that a contractor is financially savvy and has a bank behind his business is his ability to take debit and credit cards. This doesn't just apply to big contracting companies. Many small, one-man shops will take cards if they have a good relationship with their business bank or credit union.
Tip #4: Manners and Appearance?
If the contractor drove his vehicle to your home to give you an estimate, take a look at the way he keeps the equipment and vehicle. Are things clean? Neatly arranged? If not, that's a big warning. The way a contractor treats his tools is a direct connection to how he'll treat your home. During the initial meeting, does the contractor present himself in a professional way? Do you feel comfortable around him or his employees? They will be working in your home after all.
Tip #5: Clean-Up Policy?
Ask about the clean-up policy. For example, if your home improvement is a multi-day project, will the contractor be cleaning up at the end of every day or will he leave the dust, wood chips, and other mess laying there for day two? The more mess in your home ... the more it gets tracked around. Many homeowners find themselves with mouths gaping wide after the contractor has left for the day and their floors and home are dirty and messy around the project area.
Tip #6: Will the Contractor Put It In Writing?
Is your contractor willing to put both his bid and the scope of work in writing? If not, walk away immediately. You'll be surprised how many homeowners have been duped by contractors who verbally tell you what's included in their scope of work, but will then, in the middle of everything, require extra money to finish the remodel, thus holding you hostage with an uncompleted home project.
Tip #7: Availability?
Can the contractor get the job done in your timeline rather than his? There's nothing more frustrating than if a contractor tells you that a job will be done by a certain date and then it isn't. On the flip side, if you can't find a good contractor that's willing to commit to your timeline, your expectations may be too high and you may need to adjust your timeline.
Tip #8: Does Your Contractor Use "Subs?"
Does your contractor plan on doing everything himself? Or will he "sub out" work to the "trades?" For example, if you are remodeling a bathroom, you may need a plumber, electrician and carpenter. It's okay if the contractor subs work out to these specific trades — it shows he wants the work done right.
Tip #9: Quoting & Billing Procedure?
Ask the contractor about his quoting procedure. Will it contain general information, or will it be specific? For example, most contractors will charge you for a fuel surcharge, material up-charges, waste removal, labor, etc. Some will show you these exact costs in a line item invoice, but others roll it up into one big bill. How much detail do you want? You should clarify that with your contractor upfront.
Also, what is the payment or billing policy? Is money required upfront? If so, go back to #1 and #2 above to make sure you have the contractor's references checked and have a copy of his contractor's insurance.
Tip #10: Did Your Contractor Get the Permits?
Ask your contractor to take care of the permits. Although permits cost you money, the inspection process is meant to protect you from poor workmanship and to make sure that everything is being built to code.
For more information on home improvement and renovation, please e-mail me and please feel free to forward these tips to any family and friends.
If your home is currently on the market, you may be considering whether or not to work with your real estate agent to host an open house. You may have heard that open houses are ineffective or "old fashioned" in today's world of online marketing.
As a Member of the Top 5 in Real Estate Network®, however, I know first-hand that it takes a combination of different marketing strategies to sell your home quickly and for the best possible price. While online marketing and mobile technology are certainly critical parts of the equation, an open house can have a tremendous impact on a successful sale -- when done correctly, that is. Here are my Top 5 tactics for a successful open house. Make sure your agent is incorporating all — or at least some — of these strategies for your home's open house:
- Staging well in advance - Don't bother having an open house if your home is not properly staged both inside and outside. Now is the time to work with a professional landscaper because curb appeal will never be more important -- prospective buyers won't bother coming in if they don't like what they see from the outside.
- Proper advertising - These days, people are so inundated by life and media that unless your open house is promoted far and wide — and frequently — they will never even know about. Your agent should be: advertising in newspapers; using social media to promote your open house; networking with other agents in the area to make them aware; circulating direct mail to neighbors and nearby communities; and personally inviting key prospects.
- Enlist the neighbors - Start polling your neighbors on what they like best about your neighborhood: the schools, the convenience, the community services, the people, etc. Compile this into a handout for your agent to distribute at your open house. After all, what better testimonial could you ask for than the next-door neighbor?
- Consider a theme - Some of my fellow members in the Top 5 Network have hosted some unbelievably creative open houses. Consider inviting local restaurants to set up food stations so visitors can experience a "taste" of the community; ask a local antiques shop to stage the home with their showcase items; invite a local gallery to create an art exhibit throughout the home; or highlight something of interest about your home. One Top 5 member, for example, listed the home of an antique car collector and put all the owner’s cars on display and invited car enthusiasts.
- Have the right materials on hand - Your open house will be for naught if you don't have the proper materials on hand, such as: a guest directory that asks for names and e-mails (find a creative incentive for guests to leave their e-mail addresses, such as entry into a drawing for a local restaurant gift certificate); professionally done photo brochures of your home or even a DVD of a video tour; payment and financing information.
Be sure to ask your agent how he or she intends to follow up with open house visitors -- this is the most important factor of all. Without a quick and effective follow-up system in place, you could very well pass over a potential buyer.
If you'd like more information on creating an effective open house, please e-mail me. Feel free to forward this e-mail on to any friends and family who might be planning an open house in the near future.
According to credit experts, 42% of U.S. consumers have credit scores between 550 and 699. As a result, these consumers typically don’t qualify for preferred interest rates and, depending on their overall credit profile, they may not even qualify for certain loans and credit cards.
As a member of the Top 5 in Real Estate Network®, I have worked with many clients throughout my years in the business and have seen first-hand how credit scores can wreak havoc on securing a favorable mortgage. Most clients I work with don’t have a clear picture of what impacts their credit profile and, more importantly, don’t know what steps they can take to help improve it. I find this short quiz, from credit consultants ApprovalGuard.com, to be immensely helpful when it comes to understanding how your credit profile works. Take a few minutes to see if your credit knowledge is up to par.
1. To have the best credit-profile impact, what is the maximum amount of your monthly credit line that should be used?
a) 70%
b) 30%
c) 50%
2. What is the number-one contributing factor to a good credit score?
a) Length of credit history
b) Amounts you owe
c) Payment history
3. If you pay 2% each month on your credit card (typical minimum payment), when will you pay off a $3,000 balance at 10% interest?
a) 18 years
b) 6 years
c) 3 years
4. After paying off a high-interest credit card, you should:
a) Continue using it occasionally
b) Close the account
c) Use the full amount of available credit every month
5. Applying for credit cards in order to just receive a free sign-up gift (t-shirts, mugs, etc.) has no impact on my credit profile?
True or False
6. Rewards points on credit cards are a good deal when:
a) I get cash back
b) I get free airline tickets
c) I carry no balance each month
7. To have a credit score, I must have at least one creditor reporting activity on my credit report for:
a) 12 months
b) 8 months
c) 6 months
8. Credit bureaus that manage your personal credit report data and credit scores are a:
a) Government entity
b) Non-profit agency
c) Regular business corporation
9. Banks and credit card companies think you are creditworthy by how many credit offers you receive by mail?
True or False
10. Credit scores are used by lenders mainly to:
a) Tell how I compare to other consumers
b) Tell if I make my payments on time
c) Predict the likeliness that I will repay my loan on time
Answers: 1 – c, 2 – c, 3 – a, 4 – a, 5 – False, 6 – c, 7 – c, 8 – c, 9 – False, 10 – c
If you find you answered more than half of these questions wrong, you’re not alone, says ApprovalGuard, whose surveys reveal that the majority of consumers do not know the answers to these and similar types of questions. The good news is it’s not too late. With a good understanding and proper guidance of how credit works, consumers can learn how to effectively manage their personal credit profile. For more information, please e-mail me, and please feel free to forward this quiz to others.
If you have a vacation home that you had hoped to retire to some day but have since changed your mind, don’t jump to sell it…consider renting it out instead.
For many, it seemed like a great idea to buy that vacation condo 20 years ago. The plan was to vacation there as often as possible, then some day sell your primary residence and retire there for your Golden Years. But lifestyle changes or financial situations might now be causing you to consider selling it instead.
However, as a member of the Top 5 in Real Estate Network®, I have seen many a client successfully rent a retirement home instead of selling it. Author Christine Karpinski, director of Owner Community for HomeAway.com (HomeAway.com), offers some good reasons to consider renting your second home:
1. Circumstances have changed. Maybe grandchildren have arrived on the scene and you can't bear the thought of moving hundreds of miles away from them. Or your parents are in poor health and need you nearby.
2. You've suddenly realized there's no place like home and you've simply changed your mind. You've decided you like being near your friends and you don't want to leave your church or synagogue. Renting your second home out during the time you are not staying there makes it financially feasible to keep both homes.
3. You've decided to "retire" from retirement. These days, it’s not unusual for people to test-drive retirement and find that it's just not for them. Work can provide many rich rewards—structure, social interaction, mental stimulation, a sense of purpose, and so forth—that people keenly miss when they retire. And, let's be honest—sometimes people simply can't afford to retire.
4. Your fixed income hasn't kept up with your lifestyle. Even when you're happy to give up the daily grind of your job, losing the paycheck that comes with it can be pretty painful. Factor in inflation, rising taxes, and unexpected "new" expenses, and you may find that what seemed like a manageable cost of living five years ago doesn't seem that way anymore. Your second home, even if it's paid for, may start looking like a liability due to property taxes, homeowner's association dues, and maintenance costs. Not if you rent it out, says Karpinski. Then it becomes a source of new income.
So don’t give up and seek to unload your second home just yet! There are still many ways to make this investment pay off. For more information on renting or buying a second, potential retirement home, please e-mail me. And please forward this email to any friends and family who could benefit from these insights.
If you’re looking to sell or refinance your home, you know that a home appraisal is a necessary step in the process. While the value of your home may not be what it once was, it is important for homeowners to be realistic when it comes to getting their home appraised.
As a member of the Top 5 in Real Estate Network®, I know how vital it is to list your home at the right price. Price is, after all, only a part of marketing…but it is crucial, and having an appraisal done is the first step toward making the right pricing decision.
Here are 11 ways to prepare for a home appraisal:
1. The appraiser will need approximately 30 minutes to one hour to complete the inspection phase of the appraisal process, which includes: exterior photos of the front and rear of the home and a photo of the street in front of the property; measurements of the exterior of the home, garage and any outbuildings; a walk-through inspection of all rooms and levels of the interior of the home, including the basement.
2. Get organized. Put together a checklist that will help you get ready for your appraisal.
3. Be flexible when scheduling the appointment.
4. Have a copy of your home’s blueprint to help verify measurements and lot size.
5. Provide a list of improvements made to the property since the purchase. Improvements that should be noted include adding a pool, patio, updating your kitchen or bathroom, and any room additions, etc.
6. Allow your appraiser access to the entire property, including access to any crawl space or attic areas.
7. Keep in mind that a clean home makes a good impression. Be sure to trim the lawn, clean the pool and garage, repair cracked windows or torn screens, check for leaky faucets and secure gutters and down spouts before your appraisal.
8. Point out any amenities that may not be obvious to the appraiser: sprinkler systems, patios, pools, security systems, built-in pool vacuum, etc.
9. Provide a copy of last year's tax assessment information.
10. Know what year the house was built and when improvements were made.
11. The first thing appraisers look for is comparable's, so be prepared and have a list of recent sales of similar properties in the immediate neighborhood.
Following these steps will go a long way toward making the home appraisal process a bit easier. For more information on home appraisals and preparing your home for sale, please e-mail me—and please feel free to forward these tips to any family and friends with a home sale in their future.
While we're all aware of the health risks posed by lead, you might not realize that even common renovation projects can be hazardous in terms of lead. According to the U.S. Environmental Protection Agency (EPA), activities like sanding, cutting and demolition can create dangerous lead dust and chips by disturbing lead-based paint, which can be harmful to both adults and children.
As a Member of the Top 5 in Real Estate Network®, I am committed to keeping my clients informed on current regulations pertaining to home safety issues. To protect against the lead risk, on April 22, 2008, EPA issued a rule requiring the use of lead-safe practices and other actions aimed at preventing lead poisoning. Under the rule, as of April 22, 2010, contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, child-care facilities and schools built before 1978 must be EPA certified and must follow specific work practices to prevent lead contamination.
If you are embarking on a home-improvement project, be sure to use certified renovators who are trained by EPA-approved training providers to follow lead-safe work practices. Lead dust can form when lead-based paint is dry scraped, dry sanded or heated. Dust also forms when painted surfaces bump or rub together. Lead chips and dust can get on surfaces and objects that people touch. Settled lead dust can re-enter the air when people vacuum, sweep or walk through it.
Make sure that your renovators employ the following practices - and you, too, if you're a do-it-yourself er:
- Contain the work area
- Minimize dust
- Clean up thoroughly
According to the EPA, to permanently remove lead hazards, you must hire a certified lead "abatement" contractor. Abatement (or permanent hazard elimination) methods include removing, sealing or enclosing lead-based paint with special materials. Just painting over the hazard with regular paint is not enough.
For more information on the dangers of lead and the new regulations regarding remodeling, please visit www.epa.gov, or e-mail me directly. I encourage you to pass this important information along to anyone you know who might be renovating their home soon.
While many great deals exist in today's real estate market, securing the optimal mortgage is a critical part of your home purchase decision.
As a Member of the Top 5 in Real Estate Network®, I have worked with many home buyers over the years and am well versed on the factors in every mortgage loan package that will determine whether or not you can afford the house you want to buy. The most important things to take into consideration are: interest rate, points, mortgage type, closing costs and fees, and down payment and mortgage insurance. Here’s a closer look at each:
- Interest Rate: The interest rate determines the amount of your monthly payment. Keep in mind that different lenders offer different interest rates, so it is important to shop around. Generally, a short-term or adjustable-rate loan will offer a lower interest rate because you agree to repay the lender more quickly or to pay fluctuating rates.
- Points: Points are fees charged by the lender to originate your loan. A point equals one percent of the total mortgage amount. Lenders will charge different numbers of points for different loans, so it is important to understand how many points a lender will be charging. For example, in some cases, lenders may advertise very low interest rates, but build a high point charge into the cost of issuing the loan, making the deal less valuable than a loan at a higher interest rate.
- Types of Mortgage Options:
- Fixed Rate. On a fixed-rate mortgage, the interest rate does not change for the entire life of the loan.
- Adjustable Rate. Adjustable rates, on the other hand, are interest rates that fluctuate based on market conditions. Since no one knows how the market will behave, they are riskier than fixed-rate loans. Over the life of the mortgage, you could end up paying more or less than you would have with a fixed-rate loan.
- Balloon. The next common type of mortgage is a balloon payment loan. A balloon payment loan allows you to make relatively small monthly payments for an initial period, but requires a lump-sum payment toward the end of the term. These are risky to consider unless you are confident that you can either refinance the loan or sell the home at the end of the initial loan period.
- Closing Costs: Closing costs and fees are additional amounts that the buyer and seller must cover during the course of the mortgage loan transaction. They include items like credit report fees, appraisal fees, title search fees and title insurance.
- Down Payment and Mortgage Insurance: When searching for the right type of mortgage for you, the amount of your down payment, the need for private mortgage insurance (PMI) and other factors, such as whether you are a first-time home buyer, a teacher or a peace officer, will also affect your monthly mortgage payment.
A professional real estate agent, such as a member of the Top 5 in Real Estate Network®, or a trusted mortgage broker can help you decide what makes the best financial sense for you. Please e-mail me for more information and be sure to pass this email on to others who might be in the market for a mortgage.
Today's real estate landscape offers some great buys for savvy real estate consumers, especially when it comes to foreclosure properties. Unfortunately, even though there are already a large number of foreclosures on the market, analysts are predicting that yet another wave of distressed properties will crop up in the coming months.
As a Member of the Top 5 in Real Estate Network®, I've consulted with many clients seeking to capitalize on a foreclosure purchase. I always advise them, however, to weigh the pros and cons.
While a foreclosure could represent your best chance to get a great deal, make sure you educate yourself about the potential pitfalls of purchasing a distressed property in advance - and what correcting those pitfalls might cost. In most cases, it's not so much about what damage occurred but rather the source of the damage and how long before the problem was addressed.
Here are the top 10 signs that may indicate trouble in a foreclosed home:
- Unheated house in winter months. If the home has been properly winterized, there's no need for heat. But if the home has not been properly winterized, pipes will burst and cause water damage.
- Missing sinks, toilets and other fixtures. Make sure they've been properly removed and not ripped from walls and floors.
- Peeling, bubbling and discolored paint; swelling in walls or ceilings (especially around kitchens and bathrooms), or a musty odor all indicate water damage and, potentially, the presence of moisture and mold.
- Fungus growth inside cabinets, behind drawers and built-ins. Fungus could mean that there has been water damage. Since water falls down, look for the source above the mold.
- Blocked drains or pipes will cause future problems and may have already created sewage backups.
- Black cobwebs, greasy gray residue on walls and/or a strong oily odor. This could point to potential soot damage or a malfunctioning furnace.
- An older home with extensive renovations. Check with the city for pulled permits in order to get remolding details. If asbestos is present and has been disturbed, be sure it's been remediated by a certified specialist.
- Excessive painting of every nook, cranny, door and floor may mean that the seller is covering up mold.
- Discolored sub flooring. From the basement, check the sub flooring above for stains and small holes, both caused by mold.
- Air quality. The air quality within a home tells a lot about the home's condition. Be sure to include air and surface testing in your home inspection. It's a few hundred dollars well spent.
There are indeed many great opportunities in today's market, but proper education and preparation are essential to making the right investment. Please e-mail me for further information and be sure to forward this article to others who might be considering a foreclosure purchase.
With summer officially upon us, many homeowners will be confronted with rising electric bills as fans and air conditioners kick into high gear in an effort to keep cool. Demand for electricity can also increase if you have house guests or children home for the summer.
As a member of the Top 5 in Real Estate Network®, I have access to lots of great ideas for planning ahead to control energy costs this summer. The following tips are from the experts at Public Service Electric and Gas Company (PSE&G):
- Use ceiling fans in the counter-clockwise direction to create a wind-chill effect, making you feel cooler. Also, whole-house fans that bring in cooler night-time air can pre-cool a house and reduce energy use in the daytime if heat is kept out by closing windows and shades.
- Install a programmable thermostat. If health conditions permit, raise the setting from 73 to 78 degrees. You can save 3-5% on your air conditioning costs for each degree you raise the thermostat.
- Close doors leading to uncooled parts of your home. If you have central air conditioning, close off vents to unused rooms and be sure to keep filters clean.
- Plant shade trees close to the house on the South and West sides.
- Seal holes and cracks around doors and windows. Eliminate air leaks between window air conditioners and windows with foam insulation or weather-stripping.
- Turn off power sources. TVs, computers and other electronic devices draw power when they are in standby mode or turned off but still plugged in. Plug electronics into power strips and turn off the power switch when the items are not in use.
- Switch to compact fluorescent light bulbs (CFLs), which use 75% less electricity and burn more coolly than incandescent bulbs. Keep in mind that CFLs are especially handy in hard-to-reach fixtures and won't need to be replaced for about five years.
- Use timers and motion detectors on indoor and outdoor lighting.
- Delay heat-producing tasks such as laundry until later in the day. Wash full loads, using cold water whenever possible.
- Run the dishwasher at night, using the shortest cycle that will get the dishes clean. If manufacturers' directions permit, turn the dishwasher off before the dry cycle or use the air dry feature if your machine has one.
- Take short showers as they use less hot water than a bath.
- Replace old appliances with new energy efficient Energy Star appliances.
- Unplug the extra refrigerator in your garage or basement and use it only when necessary. Refrigerators that are only 10 years old can use twice as much electricity as new Energy Star labeled models.
As a rule of thumb, bankruptcy is the least desirable option available to you when your finances have gotten out of control. However, if your financial situation has been going downhill for an extended period of time, your credit standing is probably so bad that filing for bankruptcy really won’t do much to make it worse, with one exception: A bankruptcy remains on your credit report for 10 long years. With this in mind, creditors will know that once you file bankruptcy, you cannot do so again for seven years.
As a member of the Top 5 in Real Estate Network®, I am well versed in some of the ways you—or someone you know—can start to rebuild your financial life after bankruptcy. Here are 10 tips from consumer credit experts ApprovalGuard.com:1. Plan your credit recovery. Take it slow and easy, do it right and don’t exceed what you can afford.
2. Learn more about how credit works through the Internet, counseling services or a service. Do it right and know what you’re doing.
3. If your credit report contains inaccuracies about debt that was discharged through your bankruptcy, contact the creditor or the credit bureaus to request a correction.
4. If you didn’t have enough savings to survive a setback, get serious about savings for an emergency fund. In the current economy you need at least 12-16 months.
5. If your problem was overspending, create a written budget and stick to it.
6. If your problem was related to medical bills, seek out a solution for insurance.
7. To re-establish a strong credit profile, you need a good history of payments from credit cards and installment debt such as autos, student loans or a home loan.
8. The rebuilding process requires you to use credit responsibly. Use only a small portion (30% or less) of your available credit line and ensure you make a payment every month.
9. When you start to re-establish your credit, consider a “secure” credit card. Such cards are usually backed by your savings account or money you place in escrow to cover 100% of your credit line in case you don’t pay your payment.
10.You may be able to apply for a home loan in as little as two years after the discharge of your bankruptcy, however, expect to pay higher fees and interest rates.When you are ready to rebuild, make sure you understand credit and how to use it responsibly. Feel free to e-mail me for further information and please forward this e-mail to family and friends to keep them in the know as well.
None of us are immune to the constant stream of negative news about the real estate market. There’s no denying the fact that the market has suffered, along with our country’s economy, over the past couple of years.
Unfortunately, this has created a serious dilemma as many consumers unwittingly base their real estate decisions on national media reports. Those of us in the industry live by the term “all real estate is local,” and as a consumer, so should you—otherwise, you run the risk of making an irreversible real estate mistake.
The truth, which you won’t find in the national media, is that real estate markets not only vary from region to region but from county to county, neighborhood to neighborhood…even street to street. I know from my national network of leading real estate professionals, The Top 5 in Real Estate Network®, that there is tremendous variation in home sales prices from locality to locality, and that buyers and sellers are often heading into—or worse, avoiding all together—a real estate investment based on misinformation from national media reporting.
Therefore, if you are thinking about buying or selling a home, it’s essential that you talk to a seasoned real estate professional in the areas you’re considering. Keep the following tips in mind when considering a real estate sale or purchase:1. Consult with a local real estate professional—like a Member of Top 5—for the most up-to-date information on the local market.
2. Ask for statistical reports and trend graphs—the hard facts. Real estate professionals have access to actual data that can be broken down into extremely finite components, such as a particular street or neighborhood.
3. Ask for comparative reports for the last 3-4 months of the current year, versus the previous year. This will reveal the latest market trend and provide you with concrete facts.
4. Media reports can vary widely based on state, city, and neighborhood – read, listen, learn, but always revert to the facts for the specific area in which you are looking, especially if you are relocating to a different state or region.
5. Also take seasonal considerations into account. In vacation-destination areas, the numbers will vary greatly from national and state data.For many real estate consumers, today’s market is an unbelievable opportunity to buy or move up to a different home. Don’t let the national headlines scare you away. Consult with a local real estate professional to get only the facts that matter to your specific situation and location. Please e-mail me for more information and pass this article along to others who might benefit from the real facts.
Did you know that in 2009, the Federal Housing Administration (FHA) insured nearly 30% of the single-family mortgage market and that more than 50% of all first-time home buyers used FHA programs?
In today’s challenging credit climate, many home buyers and homeowners are turning to FHA for insurance, to purchase loans, and for refinancing options to get out of risky ARMs or sub prime loans. As a Member of the Top 5 in Real Estate Network®, I have access to information from the National Association of Realtors® (NAR) regarding recent and upcoming changes to FHA’s single-family program that could impact the use of these important programs for consumers in the future. According to Jerome Nagy, senior regulatory policy representative at NAR, in order to replenish its dwindling reserves, FHA has implemented or proposed the following changes:
1. Mortgage Insurance Premium (MIP)
FHA has increased the up front MIP from 1.75% to 2.25% for borrowers while it awaits legislative authority to increase the annual premium. FHA stated it will decrease the up front premium when they can increase the annual premium.
2. Credit Score Changes
FHA has proposed that borrowers with a credit score below 580 be required to make at least a 10% down payment. The minimum down payment will remain at 3.5% for all other borrowers.
3. Seller Concessions
FHA intends to propose a rule to decrease allowable seller concessions from 6% to 3%. NAR plans to argue against this decrease since closing costs differ greatly among states, and with fees on services (such as appraisals) increasing, seller concessions can be a vital part of closing the transaction.
4. FHA Loan Limits
Current FHA loan limits are as high as $729,750 in high-cost areas, and are set to expire at the end of the year and revert to lower amounts, potentially putting a damper on a housing market rebound. A decrease of current limits would adversely affect 612 counties in 40 states and the District of Columbia, reports NAR, which is urging passage of legislation to make the loan limits permanent.
5. Condominium Rules
FHA is delaying implementation of “Mortgagee Letter 2009-19” and making temporary enhancements to the policy instead, such as eliminating the owner-occupancy requirement for FHA condo mortgages and reducing the number of units sold prior to FHA’s endorsement of a unit from 50% to 30%.
Please feel free to e-mail me for guidance on the above FHA programs and how changes might affect your particular situation. Also, please pass this article on to anyone you know who could be impacted by changes to FHA policy.
If you’re one of the many who have recently taken advantage of the first-time or move-up home buyer tax credit, there’s a happy move in your future. Unfortunately, I’ve seen the stresses of moving cast a cloud over the excitement my clients feel about heading to their new home, making for a nightmarish experience instead of a momentous occasion.
Thanks to my network of leading real estate professionals, the Top 5 in Real Estate Network®, and my relationships with top moving experts, I can offer several tips to make moving a more streamlined, more palatable experience:
• Put your move details in writing.
Use a large notebook or binder to centralize all the important details of your move. It should contain detailed lists, including an inventory of boxes. Supplement this with a computer printout of box contents and e-mail it to yourself and a couple of other trusted sources as a back-up.
• Order boxes and moving supplies as far in advance as possible.
It’s never too early to start packing as we all have items that are not currently in use—think winter clothes, your baseball card collection, holiday decorations. Moving companies may allow you to return unused boxes, so order more than you think you'll need, by 20%. Invest in the right tape to keep boxes securely fastened, some new Sharpie pens, and labels to color-code your move.
• Document your AV details.
Take photos and notes on how your media equipment is set up: television, sound equipment, computer equipment, etc., in order to avoid an AV nightmare in your new home. Label all remotes and wires as well.
• Plan for your pets.
Moving can be particularly stressful for animals. Consider leaving them with a friend or at a reputable pet boarding service.
• Plan for valuables and critical documents.
Most homeowners insurance will not cover property in transit, so consider insuring certain items separately. Take photos for documentation to support loss or damage claims, and carry irreplaceable and legal items, like passports and birth certificates, with you.
• Choose a reputable moving company.
Good companies that can guide you through the process will have a proven track record. Ask your friends and your real estate agent for referrals.
• Keep your moving receipts for income tax deductions.
In many cases, moving expenses are deductible from federal income taxes. If you are moving because of a change in employment, you may be able to claim this deduction even if you do not itemize.
For more information on making your move as painless as possible, please e-mail me—and please feel free to forward these tips to any family and friends with a move in their future.
Most of us know that adopting an environmentally conscious or “green” approach to life can benefit the planet and its future generations. But did you know that greening your home can also benefit your bottom line in terms of energy savings and tax credits?
I’ve learned a lot of the latest green building strategies from clients and home builders I deal with as a Member of the Top 5 in Real Estate Network®. I thought I’d share some innovative green building ideas from the National Association of Home Builders (NAHB, www.nahb.org) in case there’s a remodel or new-home build in your future:1. The roof. According to NAHB, 75% of new homes use “oriented strand board” (OSB), an engineered wood product that does not require the use of large trees in its production, to sheathe roofs and walls. Additionally, durable roof coverings, such as steel and fiber cement, reduce the need for roof replacement and are a key part of many solar roofing products that lock in heat during winter and help keep homes cool in summer.
2. The windows. Energy-efficient windows that incorporate advanced technologies like low-emittance glass coatings, keep heat inside in winter and outside in summer. “Passive” solar design features like large, south-facing windows, also help heat the home in the winter and allow for abundant natural lighting.
3. The walls. Vinyl siding on exterior walls saves money on installation and maintenance; fiber-cement siding is termite- and water-resistant and warrantied to last 50 years. Increasing the amount and R-value of insulation is a cost-effective way to save energy and help reduce heating and cooling bills, which account for at least half of all energy use in the home.
4. The outside. “Xeriscaping,” or using native plants, can significantly reduce the need for watering, fertilizers and herbicides, and preserving trees on your property reduces energy costs by providing shade in summer and a wind barrier in winter. Also consider a covered entry for your front door, which can help prevent water intrusion and costly repairs.
5. The appliances. According to NAHB, the energy efficiency of refrigerators and freezers has tripled over the last three decades. Front-loading washers use about 40% less water and half the energy of conventional models. New toilets have redesigned bowls and tanks that use less water, while advanced shower and sink faucet aerators provide the same flow regardless of reduced water use.Please consider the above green building ideas for your next construction project and forward this e-mail to anyone else who may be in construction mode. I’d be happy to answer any questions you may have or point you toward further green resources, so feel free to e-mail me for more information.
RISMEDIA, May 3, 2010—As homes sit on the market, many homeowners are finding themselves staying in their current residence for longer than originally expected. As a result, this spring is a perfect time to make those home improvements that you’ve been putting aside. But how do you know you’ll get your money back when the housing market finally stabilizes?
Certain home improvements will achieve a higher percentage returned than others. You want to focus on functional investments such as upgrading your kitchen rather than lifestyle home improvements like a pool.
The following home improvements will get you the highest return on your investment:
Give your kitchen and bathroom a face-lift
A minor kitchen remodel–painting, refinishing surfaces and upgrading appliances–will return more than a full revamp. Consider cosmetic upgrades in your bathroom such as new plastic laminate counter tops and new toilet seats. Kitchens and bathrooms should have modern lighting as well as new faucets, cabinet hardware and cabinet door faces. These key spaces should look bright and clean.
Add a bedroom or bathroom if necessary
These additions should be done in relation to other homes in your neighborhood. For example, if houses in your neighborhood have an average of 3 bedrooms and 1.5 baths and you have 3 bedrooms and 1 bath, adding a ½ bath will definitely pay off. If all the homes in your neighborhood have at least 3 bedrooms and you only have 2, it will put your home at a disadvantage. If you can work this into your budget, adding another bedroom will translate into a higher return on investment.
Paint a fresh coat
A freshly painted home–especially exterior–is more inviting to potential buyers. Definitely paint the front door and window shutters, and try to repaint any rooms inside the home that have cracks or stains. Painting the interior of your home is quicker than painting the exterior, and is a faster way to increase the value of your home than a full room remodel. Clean walls and trim make a house look sharp.
Buy new windows
New windows can drastically change the look of a room and replacing single pane windows for high-end double pane windows not only looks better but will save you money on heating bills. If you decide to keep the current ones, however, make sure window panes and windows are clean and shiny. Dirty windows make a home look messy.
Restore the siding
Vinyl siding is popular, because it is low maintenance and lasts a long time. In neighborhoods where vinyl siding has become more common, shiny new siding can add value to your home. If you don’t think it’s necessary to re-do the whole house, keep in mind that it is possible to replace a single vinyl panel of siding.
Whether you’re adding a room to accommodate an expanding family or remodeling to increase value, home renovations can be one of the best investments you make, especially in today’s economy. The key to a successful remodel, however, is knowing what mistakes to avoid.
As a member of the Top 5 in Real Estate Network®, I have advised many clients on what renovations will offer the best return on their investment and pay dividends when the time comes to sell their home.
According to a Consumer Reports poll, the most popular remodeling projects for homeowners are kitchens (19%) and bathrooms (17%). In another survey, however, Consumer Reports asked 6,000 readers to reveal what went wrong when they remodeled their kitchens and baths and how much those mistakes added to the overall cost of their projects. Here's how to avoid their mistakes and save:1. Don't rush in. Changing plans is the most common, but costliest remodeling gaffe. Be sure to leave time for research and create a comprehensive plan, listing every product.
2. Prepare for the unexpected. There's a lot going on behind the walls. Unexpected water damage was an issue with 17% of bathroom remodels, while structural problems caused headaches for 10% of kitchen projects. A good contractor will be able to anticipate such problems, allowing the homeowner to budget accordingly.
3. Don't chase the “low ball.” Contractors are lowering their profit margins due to the tight market, but they often make up their costs in labor or other areas. Readers who went for “low-ball” pricing ended up spending a median of $1,500 extra for labor on their kitchens and $1,000 extra on their bathrooms. Don't sign a contract with a lot of open-ended amounts for products and materials—these are called "allowances," in contractor speak.
4. Get the paperwork in order. Have the contractor attach copies of his or her up-to-date license, insurance and workers' compensation policies to the written contract. He or she should also get permits and provide a lien waiver when the job is done; this will keep suppliers from contacting the homeowner for unpaid bills.
5. Focus on the boring bits. Specifying lighting and placement of trash cans are not much fun, but are critical to the process. For example, the proper exhaust fan will prevent mildew in baths and vent odors in kitchens.Following the above advice will help ensure a successful—and profitable—remodel. For more information or for contractor referrals, please e-mail me. And please forward this email on to anyone you know in the midst of remodeling—don’t let them make these same mistakes!
Marilyn's Credentials
Member: PRO (Pinellas Suncoast Association of Realtors) - FAR (Florida Association of Realtors) - NAR (National Association of Realtors) - REBAC (Real Estate Buyer Agent Council)
Graduate: Cooke Real Estate School - NAR Code of Ethics Courses - ABR (Accredited Buyer Representative) - RELO (Successful Buyer Relocation) - GRI (Graduate Realtor Institute)
Licensed: Florida Division of Real Estate, RE Associate - City of St. Petersburg RE Associate
Noted: Who's Who in the World - Who's Who American Women
Volunteer: Former 1st Vice President - Crescent Heights Neighborhood Association -
All Children's Hospital Telethon - Al Downing Tampa Bay Jazz Association
Contact Information
Marilyn Voreis
Broker Associate
REMAX Metro
201 2nd Ave. North
St. Petersburg, FL 33701
Marilyn@StPeteAndMore.com
Mobile (727) 543-4761
Office 800-881-8729 ext. 119
Fax (727) 896-1802
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