Feb 10, 2012: January 2012 Charlotte Housing Statistics just released!
Closings were up 9.2%
Pending sales were up 27.6%
The average closed price was down at -.1%
The median closed price was up 2.4%
Percent of original list price received by Sellers 90.2%
Inventory is down (good for Sellers) 23.6% from a year ago
21.2% of closed sales were distressed, compared with 35.9% a year ago (this number will go back up as banks
start releasing foreclosures to the market again)
Feb 3, 2012: It's been a mild winter throughout most of the country so far. 70 degree weather will make you
think of Spring and Spring cleaning. Since Punxsutawney Phil saw his shadow, that means we have 6 more
weeks of winter. Here are 10 "must do's" to have a warm, cozy and safe winter
1. Check attic insulation. A foot of blown-in or batt insulation (R-38) in the attic reduces heat transfer from
heated interior space to the great outdoors. This is a do-it-yourself job. If your attic is not insulated, blow in or
roll out 12 inches of loose or batt insulation. If the amount of insulation is less than 12 inches, simply roll out
unfaced fiberglass batts over the existing insulation to create a heavier thermal blanket. This is a case where
more is better. Make sure to leave soffit vents unobstructed.
2. Install or replace weatherstripping, if necessary. Check the rubber threshold gasket at the bottom of exterior
doors and replace if worn or torn. Next, make sure the top and sides of the door are weatherstripped and fit
tightly. If there are gaps, replace the weatherstripping.
3. Check exterior doors and windows for gaps. Modern windows are probably OK, but older windows may need
some help. To reduce air leakage, casement windows might need some weatherstripping at the joint where fixed
and movable panes meet. Old double-hung wood windows are notorious air leakers. Place pieces of narrow self-
adhesive rubber weatherstripping on the bottom sides and at the joint where the top and bottom panes meet.
4. Check the outside of doors and windows for voids, and caulk any gaps you see.
5. Change the filter in the heater. In older furnaces, filters should be changed monthly. Change or service
newer, more efficient filters according to the manufacturer's instructions.
6. Replace your old thermostat with a new programmable model. This allows you to regulate the heater to warm
the house when you're there and to reduce the temperature when you are at work or asleep.
7. Have your heater inspected by a licensed heating and air conditioning contractor. An inspection ensures that
the heater is operating safely and efficiently. In many cases an inspection can alert you as to whether the unit is
at the end of its life. It's nice to have the option to replace an old heater before it quits and becomes an
emergency on a cold January day.
8. Check the carbon monoxide (CO) detector. If you don't have one, get one. Carbon monoxide is an odorless
and colorless gas that kills. An operating CO detector can prevent a tragedy. While you're at it, check the
smoke detectors to ensure they're operable.
9. Clean gutters and downspouts so fallen leaves won't clog them. Make sure that downspouts discharge away
from the foundation and that soil is graded away from the foundation and at least 6 inches below the siding.
10. Clean the fireplace of ashes; visually check the chimney for loose or missing mortar. Also consider having
the chimney professionally inspected and swept by a licensed and bonded chimney sweep.
By Bill and Kevin Burnett Inman News®
Jan. 26, 2012: Thinking about putting your house on the market this Spring?? Cleaning chore checklist will
help you take care of important seasonal chores and welcome Spring to an organized home:
•Schedule a family garage clean-out. Create efficient storage for sporting goods, camping equipment,
recreational vehicles, and garden tools. You'll have the jump on summer fun!
•Inspect, clean and repair outdoor furniture.
•Tour house exterior and grounds. Make a list of any needed seasonal maintenance.
•Inspect the roof for winter damage: leaks, missing or broken shingles or tiles. Arrange for any needed repairs
early; roofing contractors can be hard to find during summer's construction season.
•Use a sunny Saturday to scrape, prime and paint peeling spots on trim or woodwork. You'll protect wood against
Summer's heat and moisture--and prevent a more difficult paint job come fall.
•Clear away any remaining dead foliage and weeds from beds and lawn. New growth will be protected from
damage or disease.
•Begin major landscaping projects. Spring's the time to put in shrubs and trees, but check with your local
extension office for specific planting recommendations for your area.
The Inside Story:
•Changing seasons, changing clothes. Hold a family wardrobe check as you bring out warm-weather clothing.
Sort winter clothing for discards and donations before you store.
•Hold a garage sale! Declutter house and garage to turn trash into cash. Build your yard sale savvy here.
•Pick a weekend and enlist the family for Spring cleaning. Many hands make light work! Reward the team with
dinner at a pizza parlor.
•Wash windows inside and out.
•While at the window area, check drapes and window treatments. Vacuum any dust; send dirtier drapes to the
cleaners.
•Move furniture and vacuum beneath it.
•Arrange for a spring inspection of cooling systems. Don't wait for the first hot day! Air conditioning firms will
give better service when they're not busy.
•When the weather warms, deactivate heat system humidifiers. Check the system manual for instructions on
how to power down for the summer.
•Drain sediment from hot water heaters.
Jan. 19, 2012: Winter months most popular time for House Fires
December, January, and February are the leading months for home fires as well as home fire deaths in the US.
These winter house fires are most commonly caused by misuse or improper maintenance of heating equipment
and holiday decorations. In 2009, there was a total of $1.1 billion in property damage caused by fires that
involved home heating equipment. From 2003 – 2007, there was a total of $482.9 million in home damage caused
by Christmas trees, candles, and other holiday decorations.
There is an increased number of fires in the winter months because people are using more heating units, have
flammable decorations next to heating sources, and are not taking the proper steps to ensure holiday
decorations and heating equipment are in good working order. Proper maintenance should be performed on all
equipment that was dormant during the summer and fall seasons. This includes holiday lights, electric blankets,
space heaters, and chimneys.
We know that in the hurry of Thanksgiving and Christmas it is easy to forget to check holiday decorations and
heating equipment before using them, but it might just save your life. Winter house fires can be avoided when
the proper steps are taken. Follow the winter safety tips outlined below to reduce the risks of fire damage to
your home.
1.Have your chimney, furnace, etc inspected each year.
2.Do not burn wrapping paper or Christmas tree limbs in the fireplace. They burn very quickly, throwing off
sparks and possibly causing the creosote that has previously accumulated in the chimney to ignite.
3.Always use a screen in front of the fireplace. Also consider using a fire-resistant carpet or mat (made for
fireplaces) on the floor in front of the fireplace.
4.Use your space heaters wisely:
a. Clear a 3-foot area around space heaters.
b. Unplug space heater when not in use.
c. Purchase a space heater that will automatically shut off if it falls.
d. Plug electric portable space heaters directly into wall sockets, not into an extension cord.
5.Do not put comforters, bedspreads, or anything else on top of an electric blanket while it is turned on. Do not
tuck your electric blanket into your mattress.
6.Review your fire escape plan with your family.
7.Be sure every level of your home has a working smoke alarm. Inspect and clean dust from the covers of your
smoke and carbon monoxide alarms each month.
8.Avoid using lighted candles altogether. Try safer alternatives such as battery-powered candles. Never leave a
burning candle unattended and don’t let candles burn completely.
9.Do not connect more than 3 strands of holiday lights together and check to make sure there are no tears in
the coating or exposed wires.
10.Water a real tree to keep it fresh, green, and full of needles. Dried-out trees can easily catch fire. If
purchasing an artificial tree, find one that is fire resistant.
RIS Media Real Estate Advisors January 19, 2012
Jan. 9, 2012: 12 tips to manage credit card debt in 2012
It's the new year, and what better way to ring it in than to add a shiny new credit card to your wallet? Here are
12 tips for obtaining a credit card and not misusing it.
1. Know where you stand
What credit card interest rate and credit limit you qualify for depends on your credit history. But many people
have no idea how good or bad their credit is. To keep the surprises to a minimum, pull your credit report from
the three credit reporting agencies.
The report will show your account history, including factors that can hurt your credit such as habitually late
payments, short credit history or high utilization, when you've used a large amount of your available credit. The
more negatives you have, the more likely you won't get the best interest rate.
2. Improve your chances
If you can wait to apply for a new credit card, spend at least six months getting your credit affairs in order. Use
your credit report as a guide.
First, make sure there is no inaccurate information on your credit report. If there is, you will need to contact
the credit reporting agency and the company that maintains the account to get the record straight.
Next, look at the key factors hurting your credit. If late payments are a problem, then commit to staying
current on all bills. If your utilization rate is too high, commit money from your monthly budget to reduce
outstanding debt as much as possible.
3. What benefits do you want?
Your credit is in order, and you want a credit card. Now what? Figure out what type of benefits you want.
If you are a frequent traveler, consider cards that are cobranded with hotels or airlines and allow you to rack up
rewards points that can be used to buy flights or hotel stays. For road warriors, there are several different gas
rewards cards available. And for those interested in earning cash from their purchases, issuers have unleashed
several types of cash-back rewards cards.
Other perks to consider: cards with low or no balance transfer fees, cards with low penalty or late fees and
specialty cards such as secured, retail or prepaid cards.
4. Compare similar cards
Consider which credit cards charge an annual fee. Will a card's rewards cover its annual fee? Would fewer perks
be acceptable if the card has no fee?
Also look at the annual percentage rate, or APR. Is there a special low introductory rate that shoots up after six
months? Is the rate variable or fixed?
The card with the lowest APR is not necessarily the best for you. Take into account penalty and late fees,
especially if you've been known to miss payments. And look at other fees, such as balance transfer fees or
foreign transaction fees, which could make the card less appealing.
Also, read the restrictions on rewards programs. For frequent-flier cards, there may be blackout dates. Cash-
back cards may have a limit on how much you can earn each month.
5. Other credit card perks
Credit cards come with benefits other than their rewards programs, so it pays to read the fine print. Here are a
few benefits you should consider:
•Roadside assistance: Some cards will come to your rescue if you're stranded on a snowy highway with a flat tire.
But there may be geographical limitations or time-of-day limits.
•Purchase protection: Some cards come with return protection in case a retailer won't take back a recent
purchase. Others offer extended warranties on top of a manufacturer's warranty or protection against theft or
accidental damage.
•Travel assistance: Some credit cards will coordinate medical care or legal aid if you are traveling abroad. Others
will cover airline fees, such as checked-bag fees, or offer access to airport lounges. Car rental, travel accident
and trip-cancellation insurance are other popular perks.
6. Denied? You'll find out why
New federal rules that went into effect in July last year require creditors to disclose the credit score used to
make a lending decision, along with information related to the score if a consumer is denied or given
unfavorable terms.
The notice will provide the credit score, the range of possible credit scores under the model, up to five key
factors that hurt your score, the date the credit score was created and the credit reporting agency that provided
it.
Armed with that information, consumers can figure out how best to raise their credit score by tackling the key
reasons the score was lower. Then, try applying again in six months.
7. Cards for people with spotty or no credit
If your credit is blemished but you need a credit card now, you have two choices. Apply for a secured credit card,
or become an authorized user on someone else's card.
A secured credit card requires a deposit, usually from $300 to $500, as collateral to activate it. The deposit is put
into a savings account, certificate of deposit or a money market account. Sometimes, after a year of good
payment history, the issuer may turn the secured card into a regular credit card.
Another option is to piggyback on someone else's credit card such as a parent or spouse. They add you as an
authorized user without the need to qualify you first. The bonus: Most credit bureaus will include only good
payment history on an authorized user's report, which will help lift his credit score.
8. Leave a good track record
It may be appealing to just pay the minimum every month because it's less money out of your pocket. But with
interest rates between 13 percent and 15 percent, a minimum payment will only balloon what you owe. So the
rule of thumb is to charge only what you can comfortably pay off each month.
Second point: Always pay on time. Set up automatic payments if you're a forgetful person. Consistently paying
on time is one of the best ways to boost your credit score, which can translate into lower interest rates.
And third: mind your credit limit. One of the factors used to calculate a credit score is how much credit is used
versus how much is available to you. It's called the utilization rate. The lower the rate, the better your score.
9. Credit card laws are your friends
There are two big acts that cover credit card practices and billing: the Credit Accountability, Responsibility and
Disclosure Act, or CARD Act, and the Fair Credit Billing Act.
The CARD Act eliminated many common, yet questionable, credit card practices such as retroactive rate
increases, double-cycle billing and applying payment to lower-rate balances first. It also required more advance
notice for rate hikes and placed caps on fees that issuers can charge.
The Fair Credit Billing Act outlines your rights as a cardholder when you have a billing dispute with your
creditor. For example, it limits a cardholder's liability for unauthorized charges to $50.
10. Be virtual friends with your card
Many credit card issuers are offering special promotions on Facebook, Twitter, Foursquare and other social
media sites to increase cardholder loyalty. Other issuers are using these forums to address customer service
complaints or determine charitable giving.
So if you haven't already, friend or fan your credit card issuer on Facebook, and follow your card on Twitter.
11. Keep tabs on your credit card
A credit card can become a threat to your financial security if it lands in the wrong hands. Here are some tips to
help keep your credit card safe.
•Monitor your credit card accounts regularly online, so you can spot unusual transactions. Set up mobile alerts if
your bank offers them.
•Don't use public computers to make credit card purchases, access your financial accounts or check the email
account where the bank sends information. Public computers are vulnerable to hackers.
•Avoid unfamiliar online vendors. Stick with established ones.
•Don't give your credit card information to an unsolicited phone caller or emailer. Always contact your bank
using the customer service number on the back of your card.
•If you notice suspicious transactions, call the local police and your bank. Also, alert the three credit reporting
agencies about possible fraud on your account.
12. When trouble strikes
Sometimes, you may have difficulty paying your credit card bill. If you foresee your financial situation slipping,
here are a few ways to make good on your credit card.
First, contact your creditor and explain your financial situation. In many cases, the creditor will set up a
temporary hardship payment plan until you get back on your feet. Never stop paying and never avoid collection
calls. Your debt can follow you all the way to court.
Also, consider seeking help from a reputable nonprofit counseling service. You can locate one through the
National Foundation for Credit Counseling. A counselor can help you rejigger your household budget and set up
payment plans with creditors.
By Janna Herron • Bankrate.com
December 22, 2011 As the Holiday Season is upon us, we find ourselves reflecting on the past year and on those
who have helped to shape our business in a most significant way. We value our relationship with you and look
forward to working with you in the year to come. We wish you a very happy Holiday Season and a New Year
filled with peace and prosperity.
December 16, 2011: Top 11 Reasons You Should List During the Holidays
11. By Selling now, you may have an opportunity to be a non-contingent Buyer during the Spring, when many
more houses are on the market for less money! This will allow you to sell high and buy low!
10. You can sell now for more money and then look for a delayed closing or extended occupancy until early next
year!
9. Even though your house will be on the market, you still have the option to restrict showings during the six or
seven days around the holidays!
8. January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until
Spring to buy, you need to be on the market during the Holidays to capture that market.
7. Some people must buy before the end of the year for tax reasons!
6. Buyers have more time to look for a home during the holidays than they do during a working week!
5. Buyers are more emotional during the Holidays, so they are more likely to pay your price!
4. Houses show better when shown during the Holidays!
3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular
home: Less demand means less money for you!
2. Serious Buyers have fewer houses to choose from during the holidays and less competition means more
money for you!
1. People who look for homes during the Holidays are more serious Buyers!
December 1, 2011: Testing the market?
A Seller may think that they are just testing the market with a high list price, assuming Buyers will at least
make an offer but Buyers may assume they are unreasonable and move on. Your goal should be a fair price -
something that's reasonable given the price of other homes in your area. Also, pricing your house competitively
will allow the most exposure possible since a house has most interest when it is newly placed on the market.
This is a very sensitive subject for Sellers so it must be handled before the house is placed on the market.
November 22, 2011: Happy Thanksgiving!
Gratitude unlocks the fullness of life. It turns what we have into enough, and more. It turns denial into
acceptance, chaos to order, confusion to clarity. It can turn a meal into a feast, a house into a home, a stranger
into a friend. Gratitude makes sense of our past, brings peace for today and creates a vision for tomorrow.
~Melody Beattie
November 11, 2011: Everyday Easy Ways to SAVE ENERGY
The days are shorter, the air is cooler, and we are beginning to feel the pressure to start our holiday shopping.
This couldn't be a better time to develop a few good energy saving habits. Below is a list of easy ways to save
energy in your everyday life.
· Wash clothes using cool water cycles whenever possible.
· Always wash a full load of clothes and consider air drying clothes. This method of drying will preserves your
clothing and energy.
· Don’t keep your refrigerator too cool; it is recommended that you keep the temperature between 37 and 40
degrees in the fridge and 5 degrees in the freezer.
· Make sure you refrigerator seals tightly. This can be tested by closing the door on a piece of paper, if you can
easily pull the paper out easily seal needs to be replaced.
· Scrape do not pre-rinse food that will go into the dishwasher.
· Avoid using the “rinse hold” feature on your dishwasher.
November 2, 2011: Safety First especially when it comes to construction:
There's no getting around it: construction can be a hazardous job. The federal Occupational Safety & Health
Administration (OSHA) provides specific guidelines and regulations for homebuilders and contractors regarding
the prevention of accidents on a residential job site. The penalties for failing to comply with those rules range
from hefty fines to shutting down the job until violations are corrected.
Professional builders not only comply with OSHA regulations, but also often take extra steps to help ensure a
safe working environment on every project and thus help keep everyone out of harm's way.
Inspection. As directed by OSHA, professional builders continually inspect their job sites for potential hazards,
and may even have a safety manager who regularly visits each site. Common hazards may include ladders or
scaffolding that are unsecured or set on uneven ground, unmarked trenches, or an incomplete or missing first
aid kit.
If violations are found, they are quickly reported and remedied to get the company back into compliance. And,
they are corrected for the next job.
Education and Training. It is critical to continually educate workers, to train and equip them to recognize and
avoid construction job site hazards and accidents.
In addition to a written safety and health program required by OSHA, professional builders often conduct what's
called "Toolbox Talks" on the subject of safety, perhaps showing a video, presenting a report or (even better)
showing workers a real-world example of a common hazard and how to remedy or avoid it.
Builders who are dedicated to safety also equip their crews with the latest in safety gear, from guardrails on
ladders and scaffolding to hard hats, gloves, eye protection and personal harnesses -- and keep that gear in
optimum working order. These builders also require their trade partners to follow these same safety procedures
with their employees.
Incentives. Smart builders often use incentives to help ensure safety. A worker who reports or remedies a job
site hazard may earn a bonus, time off or some other reward that recognizes his or her initiative and sets an
example for the rest of the crew.
Builders may also track and publicly post job site safety achievements, such as the number of days without an
accident or time lost to a job site injury. Those accomplishments may earn the company recognition from OSHA
or acknowledgement from the company that insures the builder against liability and worker's compensation --
lowering the builder's overhead costs and enabling them to be more competitive for future jobs.
Including Owners. Savvy and safety-conscious builders know that their homeowner clients will want to
occasionally visit the job site to see progress, make decisions and discuss concerns. Safety is no less a priority for
those instances.
Homebuyers can go a long way toward keeping themselves safe on the job site by following the same rules and
procedures as the crew. They are encouraged to wear hard hats and safety goggles and avoid visiting and walking
through a house under construction without supervision, after hours, and on weekends, as they may be
unprepared to avoid hazards.
October 28, 2011: Think Safety! Homeowners learn to live with all kinds of self-set booby traps: roller skates
on the stairs, tangled extension cords, slippery throw rugs and low-hanging overhead lights. Make your
residence as non-perilous as possible for uninitiated visitors.
October 20, 2011: Know your Hood! Know the features that help or hurt resale in your Neighborhood. In some
areas, a swimming pool actually detracts for a home's value and makes it harder to sell. As your Real Estate
Professional, I can help you decide which features to advertise strongly and which to leave in the background.
October 12, 2011: Home Buying Tip: Get pre-qualified for a loan, which determines how much you can afford.
It allows you to move swiftly when you find the right home, especially when there are other interested buyers.
It also indicates to the Seller that you are serious and really can afford to buy property.
October 6, 2011: Home Cleaning tip: to prepare your house to put on market, the house needs to be in tip top
shape. Make sure you clean like a fiend - Q-tip clean! Take a cotton swab to faucets and fixtures, scouring
fingerprints from all the switch plates, shining windows until they're spotless and vacuuming up every last dog or
cat hair from the baseboards.
September 26, 2011: Before you sell, check faucets and bulbs. Dripping water rattles the nerves, discolored
sinks suggests faulty or worn-out plumbing. Burned-out bulbs or faulty wiring leave prospects in the dark.
Don't let little problems distract from what's right with your home.
September 19, 2011: Before rolling out the welcome mat consider some moving basics: arranging for an alarm
company; turning on electricity, water, and gas; cleaning or replacing the carpet; and notifying your local post
office of your new address. The best time for renovations is often before you move in.
September 9, 2011: This week, one of my Buyer's Survey came back with an encroachment. I was thinking, do
people know what encroachments and easements are and how does it affect them as Home owners?
Encroachment:
An improvement, or building, or obstruction which intrudes upon, or trespasses upon the property of another.
An act of trespassing.
Easement:
An interest held by one person or persons which gives some type of a "right to use" land for a particular
purpose. Easements can be - surface easements, subsurface easements, or overhead easements. They can be
permanent or temporary.
What about Title Insurance, doesn't it protect me from boundary problems?
Title insurance protects the lending institution and the property owner (if insured) against claims to the property
such as a disputed boundary. Often, mortgage lenders require the homebuyer to purchase a title insurance
policy in the lender's name. This is a Lender's policy. Many people do not realize that if they wish to be covered
themselves, it is often an additional optional charge. People also do not realize that title insurance policies do not
give coverage against encroachments, easements and boundary disputes that “would be disclosed by a current
certified survey”. This is known as the Survey Exception. Mortgage lenders routinely require a Survey
Endorsement to their loan policies that limits the scope of the Survey Exception to the specific problems
disclosed on a survey. Home Buyers should insist on an Owner's Title Insurance Policy with a Survey
Endorsement based on a current Land Survey. From a practical standpoint, it is always a good idea to know just
what you are purchasing. Land costs too much money to not know exactly what you purchased, and if there are
any problems that you do not know about.
Many Neighborhoods have encroachments such as fences, shrubbery, etc. Injunctive relief consists of a court
order called an injunction, requiring an individual to do or not do a specific action. It must be proven that
without the injunction, harm will occur which cannot be remedied by money damages. Chances of winning an
injunction (to remove the fence, shrubbery) can be difficult if no harm is being created.
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August 25, 2011: Hurricanes and Earthquakes all in one week, OH MY!
Earthquake coverage is specifically NOT covered on your homeowners policy unless you add it. With the
recent 5.9 earthquake in Virginia, you may wonder how much it costs to add this coverage to your homeowners
policy?
As a rough estimate, this would cost between $50 and $250 per $100,000 of coverage per year to add to your
homeowners policy. * Subject to a 5% deductible and mandatory 10 day waiting period from the last tremor.
Hurricane insurance: Do you have it? Need it? Six things to know.
Hurricane insurance has a unique place in the world of insurance. Just as hurricanes can do all sorts of damage
to a house – from wind, flood, and rain – so hurricane insurance requires a multifaceted approach beyond typical
homeowners insurance. Some hurricane damage is covered by homeowners insurance. Then there's a
government-run program for flooding. As hurricane Irene heads for the East Coast, here are answers to six key
questions:
1.Do I have insurance for hurricane damage?
Hurricane insurance is a little tricky. Private homeowners insurance does not cover flood damage, but it should
cover any damage caused by hurricane winds. Even so, many homeowner policies have special deductibles for
hurricane damage that are separate from the general deductible for other damages. While the general
deductible is likely set at a dollar amount, the deductible for hurricane damage is often set as a percent of the
hurricane costs. It's usually around 3 percent, although it can run as high as 5 percent of the damage costs.
Any hurricane damage from water, not wind, is covered by flood insurance, which must be purchased separately
through the federally run National Flood Insurance Program.
2.What does flood insurance cover?
There are two kinds of flood insurance for consumers: one for buildings and one for personal property.
Building policies cover structural damage, to the exterior and foundation, as well as damage to certain, semi-
permanent indoor items, such as paneling, heating and cooling systems, carpet, and built-in appliances. Building
policies can cover up to $250,000.
Personal property insurance can cover up to $100,000 in damages, and typically applies to portable items. For
instance, furniture, clothing, and electronics are considered “personal property,” as are portable appliances,
washers and dryers, and artwork.
3.How much does flood insurance cost?
Rates vary, depending on whether you live in a “moderate-to-low” risk area or a "high-risk" area. Coastal areas
are considered high risk, and premiums range from $580 a year, for up to $45,000 in both building and personal
property damage, to $5,903 a year, for up to $350,000 for combined building and personal property damage.
Policies can also be purchased individually, for either personal property or building damages. That way
homeowners can opt out of one, or mix and match how much to insure property in each category.
4.What isn’t covered by flood insurance?
Flood insurance doesn’t apply to all the losses you might incur from a hurricane, including some items of high
value. So if a storm surge sweeps your stock certificates, money, or precious metals out to sea, they won't be
covered. Also, insurance doesn’t cover damage to your yard or structures in it, such as decks, fences, or
swimming pools. A flood insurance policy won’t cover living expenses either, if you have to pay for temporary
housing.
5.Are there any resources for hurricane damage if I’m not insured?
If the president declares a disaster, then you may qualify for help from the federal government. Most disaster
assistance from the government comes in the form of federally subsidized loans from the Small Business
Administration.
6.How long does it take to get flood insurance?
There’s typically a 30-day waiting period before your insurance will go into effect. So, while it may be too late to
take precautions for hurricane Irene, which was projected to make landfall near the Connecticut-Rhode Island
border Sunday night, this year's hurricane season is only halfway over.
By Mary Helen Miller, Correspondent for the CSMonitor.com August 25, 2011 at 9:14 am EDT
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August 19, 2011: What is a GFCI?
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August 12, 2011: 5 Ways to Slice Summer Power Bills
1. Reduce your amount of "Vampire Power"
What's the one place people waste power and don't even realize it? Vampire power: It's the energy some
appliances and electronics drain from your home when they are turned off.
Signs of a vampire: Anything with a clock or light that's on when the item is turned off. Also, any kind of
plugged-in charger can be a vampire appliance -- whether or not it's charging anything.
Staking vampires doesn't mean going around constantly plugging and unplugging your electrical items. (Unlike
real vampires, that would get old fast.) Instead, hook things up to surge protectors. Or use outlets that connect
to wall switches for vampire items. When the wall switch is off, there's no power to drain.
2. Actually Programming your Thermostat
It's kind of like buying a Ferrari keychain to go with a broken-down old car. Sure it looks cool, but it's not going
to make things run any better.
So get out the booklet that came with the thermostat and read it. Or have the customer service department talk
you through the basics. Some power companies have special help lines for just that purpose, too.
When you use it, a programmable thermostat can save up to 10 percent per year from your heating and cooling
bills, says Ronnie Kweller, spokeswoman with the Alliance to Save Energy.
And who couldn't use a little extra money?
3. Washing machines: Full and Cold is Better!
Especially if you're talking about a dishwasher or washing machine. You use the same amount of water and
energy whether the machine is full or not.
But with full loads, you get a lot more for your money. And you run the machine less often. Win-win.
Some other ways to save:
Do laundry in cold water. Running the water heater -- for things such as showers, dishwashers and laundry --
accounts for about 14 percent of your total power bill, Kweller says.
Skip the "dry" cycle on your dishwasher. Either hand-dry dishes as you put them away, or let evaporation do the
work for you.
If your neighborhood allows it, check out one of those "solar clothes dryers," (It's a line stretched between two
poles that allows you to hang laundry outside.)
If clotheslines are prohibited in your area, try a discreet drying rack on your back patio or deck. Or, if you're
not jonesing for that fresh-air-and-sunshine laundry smell, you can even set it up in a tub or shower stall.
4. Skip the arctic AC
Who doesn't come in from the sweltering heat and vow to crank the air conditioning down to a temperature
usually reserved for penguin nesting grounds?
But icing down the whole house just to cool you off for a few minutes is expensive. So keep the air conditioning
at a reasonable setting and look for other ways to chill when you first come inside. Have an icy drink, put a cold
compress on the back of your neck or change into some cool, absorbent clothes.
Another effective strategy: a quick, cool shower!
5. Go wireless
Sometimes it pays to get away from the two-dimensional electronics for a little while. Literally.
Click off "FarmVille" long enough to dig in the real dirt in your yard. Or, have some fun with a container
garden on your patio. (Real tomatoes don't require wattage. And if you eat what you grow, you can save on your
food bill, too.)
Ditch the Facebook friends to spend a little time with people you know from the real world. (Not to be confused
with "The Real World.")
But your idea of fun might also be game night or a poker party.
The goal: Get unplugged, unwind and connect in a way that has nothing to do with power cords and networks.
You'll save some electricity and recharge your own batteries at the same time.
Posted: Aug. 03, 2011 Location of article:
http://www.bankrate.com/finance/personal-finance/5-ways-to-slice-summer-power-bills-1.aspx Email Save Print
August 3, 2011: Charlotte by the Numbers
#3 Rank among potential cities (population 250,000-750,000) in the Americas to attract investments by foreign
companies. Source : FDI Magazine
#4 Rank among the top markets in 2011 that are most conducive to the creation and development of small
business. Source: The Business Journal
#7 Rank among the top comeback cities in 2011
Charlotte Magazine June 2011
July 28, 2011: SUMMER DISCOUNT!! Would you like to put ONLY $100 for a down payment on a
HUD Home?!! Click on the following link to find available properties:
http://hudhomestore.com/HudHome/Index.aspx (when here, click on the case number associated with the
property listing, then click on the addendums tab to see if this is a $100 down eligible property)
- Borrower qualifies under the standard FHA guidelines-Flexible
- No income or area limits
- Closing costs and prepaids may be paid by the seller (HUD usually only pays up to 3%)
- Can be used in conjunction with the 203K Renovation loan and/or the Good Neighbor Next Door Program
Eligibility Criteria:
- 640 minimum credit score
- Must be an FHA loan used for primary residence purchase only
July 20, 2011: Mortgage Insurance Cancellation: The Myths and Realities
When it comes to private mortgage insurance (MI), there are several myths that exist that make buyers
reluctant to consider a conventional loan with MI as an option when purchasing a home. One of the more
common misconceptions is that cancelling MI is a difficult—not to mention time-consuming—process.
The irony is that the majority of buyers don’t harbor those same beliefs or reservations about an FHA insured
loan when, in reality, FHA coverage may be less easily cancelled, or take longer to cancel, than MI.
HPA Makes Cancellation Clearer
When it went into effect as a new federal law, the Homeowners Protection Act (HPA) of 1998—which applies to
both FHA and MI insured loans—required lenders and servicers to provide disclosures regarding MI for
residential loans obtained on or after July 29, 1999. Prior to this, consumers were responsible for requesting MI
cancellation if they met two factors: one, their loan balance was paid down to 80 percent of the property; and
two, they had a good payment history.
While many lenders obliged consumer requests to drop MI coverage, consumers had sole responsibility for
keeping track of their loan balance.
The HPA established three different times when a lender or servicer must notify consumers of their rights.
At loan closing, lenders must disclose:
• The right to request MI cancellation and the date on which the request can be made
• The requirement that MI be automatically terminated and the date on which this will occur
• Any exemptions to the right to cancellation or automatic termination
• A written initial amortization schedule for fixed-rate loans only
Each year, loan servicers must send borrowers a written statement that discloses:
• The right to cancel or terminate MI
• An address and telephone number to contact the loan servicer for determining when MI may be cancelled
When MI coverage is cancelled or terminated, lenders must send a notification to borrowers stating:
• MI has been terminated, and the borrower no longer has MI coverage
• No further MI premiums are due
Termination of Coverage
Under the terms of the HPA, mortgage lenders or servicers must automatically cancel borrower-paid MI
coverage when the mortgage has amortized to 78 percent of the original property value, with all unearned
premiums returned to the borrower within 45 days of the cancellation or termination date. This provision also
requires that the borrower be current on mortgage payments required by the terms of the loan, and if the loan is
delinquent on the date of automatic termination, a lender must terminate the coverage as soon as the loan
becomes current.
Cancellation of Coverage
Also under the HPA, a homeowner has the right to request MI cancellation when the mortgage balance reaches
80 percent of the original property value. All payments must be current, meaning a homeowner must not be 30
days late on a mortgage payment within one year of their request, or 60 days late within two years.
However, a borrower can only initiate a cancellation request for FHA based on their prepayment of the loan, and
even then, it can only be requested beginning five years after the loan origination date.
With MI, homeowners can request cancellation based on prepayment of the loan, as well as an appraisal. Despite
falling property values, it’s possible for homeowners to gain enough equity in their home to request cancellation
in less than five years based on a home appraisal.
Why This Matters to Agents
By understanding these rules and what they mean for homeowners, real estate agents can educate their buyers
to help them better evaluate allof their home financing options based on facts rather than myths.
This is even more important considering the FHA’s recent price increase, which has reduced buyers’ purchasing
power and increased monthly mortgage payments.
by RISMedia: The Leader in Real Estate Information Systems
----------------------------------------
July 8, 2011: Understanding Points, Rates and Fees
Not only do you have to understand what type of mortgage you should choose, you have to understand the costs
associated with your mortgage. All of these costs will be paid upon closing your mortgage.
Purchase Points
Purchase points, also known as a "buy-down" or "discount points," are an up-front fee paid to the lender at
closing to buy-down or lower your interest rate over the life of the loan. Each point is equal to one percent of
your total loan amount. If you have a $100,000 loan, one point would equal $1,000. The more points you buy, the
lower your interest rate, but the more money you'll need at closing.
How do you decide whether you should buy points and if so, how many? Well, the decision should be based on
how long you plan on living in your home and what you can afford to pay each month toward your mortgage. If
you plan on living in your home for more than five years, it's probably a good idea to purchase points. The longer
you live in your home, the more you can save on interest over the life of the loan.
Interest Rate
When you get a mortgage, you are charged an interest rate, this is the rate which the lender charges you for
using their money to buy a home. It determines how much your monthly payments will be. Generally speaking,
the higher the interest rate, the higher your monthly payment.
Mortgage interest rates change constantly, daily, even hourly. If you speak to a lender and are quoted a specific
interest rate, that's not to say you'll necessarily get that rate when you close on your loan. Not unless you
formally lock-in that rate with the lender. Locking in an interest rate will guarantee you get your loan with a
particular interest rate. Lenders will allow you to lock in for 15, 45 or 60 days. But the longer you lock in, the
more expensive it will be, since it's more of a risk to lenders.
Fees
There are always fees associated with getting a mortgage, these fees cover the cost of processing and
underwriting the loan. These fees can include charges for ensuring the title to the home is free and clear; paying
for a land survey; or paying for a home appraisal which gives you the estimated value of the property (lenders
require an appraisal to close on your mortgage).
Deciding which mortgage to get may depend on what each lender does because different lenders may charge
different amounts. Some may charge lesser closing fees to lure you in, but may charge you a higher interest
rate, which means you may pay more in the long run. But everyone has different needs, you may or may not be
able to afford to pay more at closing and are willing to pay more over the long term.
Before it comes time to close, do your homework, make sure there are no hidden fees, and ask your lender lots
of questions so that you understand all the costs involved with your mortgage.
*Also, please consult your tax advisor for advice regarding the purchase of your new home.
Yahoo Real Estate
---------------------------------
June 30, 2011: A reliable home warranty can help provide an important measure of confidence for the buyer
and help set a seller’s home apart from the competition.
Still, even with advantages to both parties, many buyers and sellers remain uninformed about the purpose and
benefits of home warranties, which cover the repair or replacement of many home-system components and
appliances. Home warranties—which are available for single-family homes, condominiums, townhouses, vacation
homes and multi-unit properties—address key consumer needs, typically covering the cost of replacing or
repairing such things as heating and air conditioning components, dishwashers, water heaters, ovens, garbage
disposals, and more.
Such items are not usually covered by homeowners insurance and can be very costly to repair or replace if not
covered by a home warranty. Replacing the dishwasher alone can be more costly than an annual home warranty
payment; the average cost for a one-year home warranty begins around $300.
While many of the home’s system components and appliances are covered as part of a standard home warranty,
if home buyers wish for more household items to be covered, they should determine whether their home
warranty provider offers an add-on package. Many plans allow consumers to customize their home warranty to
cover specific components and appliances, including ceiling fans, garage door openers, swimming pools and more.
Advantages for both buyers and sellers
Whether the home warranty is provided by the seller of the home or purchased by the buyer after the sale,
there are numerous advantages to both parties.
Home warranties are appealing to buyers because they cover appliances and system components that a new
homeowner has no familiarity with. Sellers benefit from offering a home warranty because it sets the home
apart from the rest of the competition in today’s saturated market, often leading to faster sales at better prices.
Get the plan that’s right for you
While home warranties are a popular addition to the home buying and selling process, they may be purchased at
any time. Consumers should do their research before choosing a plan or provider, as costs, coverage levels,
customer service and other factors vary. In today’s economy, home warranties make sense more than ever. Not
only are they a great tool to help you sell your home, but they’re something you definitely want to insist on
when buying one.
by RISMedia: The Leader in Real Estate Information Systems
------------------------
June 22, 2011: Shopping for a Home loan
"Are consumers making better decisions about the kinds of mortgages they select than they did before the
financial crisis?"
The mortgages being written today are certainly better matched to the needs and payment capacity of borrowers
than they were before the crisis. The major reason, however, is not better decision-making by consumers, but
elimination of the toxic mortgages that led so many consumers astray.
The option adjustable-rate mortgage, or "option ARM" that allowed borrowers to make payments in the early
years that did not cover the interest while exposing them to the risk of sizable payment increases in the future,
are no longer being offered. Its somewhat less-dangerous cousin, the interest-only mortgage, is still around but
priced so high that few borrowers select it.
Another reason the quality of mortgage decisions has improved is that the subprime and alt-A markets, which
had channeled loans to consumers with the weakest qualifications for homeownership, are both gone. The
average mortgage borrower today is much better qualified than before the crisis because the less-qualified
borrowers are not being approved.
However, better decisions resulting from a curtailment of options and tighter eligibility requirements are not an
unsullied blessing. The option ARM had some legitimate uses, and these have been lost along with the abuses.
Worse, more stringent qualification requirements have overshot the mark and some very well-qualified
consumers, including large numbers of the self-employed, are unable to borrow.
Given the available options, consumer decision-making today is no better than it was because the factors that led
to bad decisions have not changed.
Borrower ignorance: Mortgages tend to be complicated, and consumers are exposed to them likely only once or a
few times during a lifetime. They have no opportunity to enhance their knowledge through trial and error, which
is largely how they learn about other products.
While some potential mortgage borrowers, recognizing the importance of the decision, will put in the time
required to become knowledgeable, most prefer to depend largely on the advice of others.
Poor advice: In selecting a mortgage, most borrowers get their advice from their loan provider (LP) -- a loan
officer or mortgage broker. In the worst case, which was fairly common before the financial crisis, some LPs
steered borrowers to the products on which the LP made a larger commission. Under regulations issued this
year, such steering is against the law.
Eliminating biased advice does not generate good advice, however. Most LPs remain transaction-oriented,
meaning that they are looking to get the deal done rather than to establish a relationship with the client. They
earn no more if the borrower selects the right type of mortgage than if they select the wrong type. What matters
is that the borrower is satisfied with the LP's advice and the loan closes.
The advice given by LPs is only as good as their capacity to provide it, and while there are some good ones, they
are the exception. LPs are not selected for their pedagogical skills, they are not trained for it, and they are not
rewarded for it.
Poor disclosures: One of the alleged purposes of mandatory disclosures is to help borrowers compare different
types of mortgages. The cornerstone of such efforts is the annual percentage rate, or APR, which is supposed to
be an objective measure of mortgage cost that allows borrowers to make unbiased comparisons. The trouble is
that it does this only in a very restrictive set of circumstances, which regulators have never spelled out.
Because the APR is calculated over the full term of a mortgage, it is misleading if used in selecting the mortgage
type by borrowers who expect that they will sell their house or refinance the mortgage within a relatively short
period. For the same reason, it leads borrowers astray who are comparing different combinations of interest rate
and points on a given type of mortgage.
Perhaps it is fortunate that because most borrowers don't understand the APR, few try to use it.
By Jack Guttentag Inman News™
---------------------------------------------
June 16, 2011: What is an Umbrella Policy and why do you need one?
An umbrella insurance policy is an extra layer of protection against lawsuits resulting from damage to someone
else's property or injuries as the result of an accident. It also protects against false claims and intentional acts
such as libel, slander and vandalism by minors, and covers false arrest, wrongful entry, invasion of privacy and
more.
There are many reasons to purchase an umbrella liability insurance policy.
1. It covers incidents that may not be covered on your basic homeowners' insurance. For example somebody is
injured in your pool or a contractor is hurt on your property.
2. It fills "in the gaps" by providing coverage for other incidents like liability for rental properties or being sued
for slander or libel.
3. It protect you against the catastrophic losses that can occur if you are sued. The best way to think of
umbrella insurance is as extra coverage in case your insurance maximums on your home or auto are reached
and surpassed in an incident.
Check with your insurance carrier to see analyze the rates on an Umbrella Policy today. It is imperative you
and your family are protected.
---------------------------------------------------
June 9, 2011: Simple Tips to Prevent House Fires
Every year home electrical problems cause more than 28,000 house fires and massive property damage.
Electrical wiring is the root cause of many of these fires, of which countless could have been prevented. Faulty
or fixed wiring or improper use of electrical cords and other electrical items cause most home fires.
Electrical Safety Tips
• Pay Attention: Flickering lights, buzzing noises, and faceplates that are warm to the touch are all signs that a
circuit may be overloaded or wiring may be wearing thin. Each one of those signs is cause for immediate
attention from a licensed professional electrician.
• Listen to Your Breaker: If you are continually tripping a switch and having to reset your breaker box, your
house is trying to tell you something. There may be a fixture with faulty wiring or too high an electrical load on
the breaker. Again, seek professional help.
• Review and Replace: Frayed electrical cords, wobbly ceiling fans, and loose faceplates are more than mere
annoyances. You should routinely inspect your home and replace or repair items in need of attention.
• Safety First: Even the best preparation and newest equipment is not a guaranteed protection against fire.
Working smoke detectors on all levels of your home is an absolute must. Make sure you have a working fire
extinguisher and you know the proper way to use it.
The good news is many of these fires are avoidable, in the case of electrical safety just a little awareness and
preparation can make an enormous difference.
The Electrical Safety Foundation International (ESFI) sponsors Electrical Safety Month each May. More
information and safety tips, including a home safety calendar, can be found at www.esfi.org.
---------------------------
May 26, 2011: 9 Reasons to Buy a House Now
1. Lowest Housing Prices in Years
Nobody knows when the housing market will hit bottom, but prices are at their lowest in several years and may
soon start inching back up again. So buying now or in the near future may be the right time. An abundance of
bargain-priced housing is now available because of foreclosures and falling prices.
2. Interest Rates at a 50-Year Low
Interest rates are near a 50-year low, according to housing analysts. By the second week of May, 2011, 30-year
fixed mortgage rates had fallen to their lowest rates of the year at 4.63%. Although mortgage rates vary from
day to day, the 30-year rate at this level is an attractive inducement to first-time buyers, or buyers who want to
either move up to larger residences, or others, including many empty-nesters wanting to sell and move to
smaller houses or condos.
3. Interest Rates Expected to Go Up
As the economic recovery gains momentum, interest rates are expected to increase, making mortgages more
expensive. Even a half-percent increase in mortgage interest can add a hundred dollars or more to your monthly
payments, depending on the amount of your loan. (To learn more about interest rates, read Forces Behind
Interest Rates.)
4. Adjustable Rate Mortgages at Record Lows
Adjustable Rate Mortgages (ARMs) are also lower now, although there are risks that interest rates may increase
over the life of the mortgage and the balloon payment due at the end of the mortgage life, usually three or five
years, could be substantial. Nevertheless, for new buyers who are sure they'll have enough income to meet
payment obligations, an ARM may be the best way to buy a house. Keep in mind that payments may increase on
a monthly basis. For a full explanation of advantages and risks in an ARM, visit the federalreserve.gov.
5. Low Down Payment Mortgages Available
Low-down-payment financing through Federal Housing Administration-insured mortgages is available as an
additional inducement to buy a house now. Down payment minimum requirements also fluctuate and may
increase as the market heats up, so potential buyers with less cash to consummate a deal may be well-advised to
buy now.
6. Easy to Qualify, Easy to Borrow
Lending standards have become less rigid recently, so qualifying for a mortgage may be easier. Experts advise
that a potential buyer become pre-approved for a loan by a lending institution – meaning that a lender
guarantees to make the loan contingent on an appraisal of the property. But the good news in seeking pre-
approval is that lenders are now willing to let a potential buyer take on more debt than the previous formula
allowed - a percentage of monthly income. (For more on getting a cost effective mortgage, see Score A Cheap
Mortgage.)
7. Lenders Offer No-Fee Mortgages
Many banks and other lending institutions are waiving mortgage loan generation and other fees and points (each
point represents 1% of the loan amount), thereby reducing the cost of buying.
8. Home Builders Eager to Sell, Offer Incentives
Home builders, competing with the resale market, are offering incentives to potential buyers to reduce their
inventory of unsold new homes. Incentives may include cash for furniture or free refrigerators, washers and
dryers. In Seattle, for example, builders have offered opportunities to win iPads or Smart phones, and $3,000
buyer bonuses. Specific demographic groups, including military personnel, police, firefighters and health-care
workers, have been targeted by builders for special offers. But virtually anyone who can qualify for a mortgage
is likely to get a good deal from a homebuilder who is eager to sell.
9. Motivated Home Owners Desperate to Sell
Desperate sellers of existing homes have also been offering attractive inducements to potential home buyers,
including warranties on appliances, air conditioners and furnaces. Some sellers are even offering cash or have
included furnishings, refrigerators, washers and dryers as a bonus to potential buyers. With so many existing
homes in foreclosure or underwater – bargain prices are abound in this depressed market. (For help on buying a
house, read Top Tips For First-Time Home Buyers.)
The Bottom Line
With a convergence of the factors above, all of which are favorable to the prospective home buyer, there may
not be a better time to buy than right now. It's a buyer's market, but like everything else in life, the bargain
deals won't last. (To help determine if it is the right time to buy, read Are You Ready To Buy A House?)
---------------------------
May 18, 2011: 6 Tips to a Higher Credit Score
Your credit score, calculated from information in your credit report, is a measure of how good a risk you are to a
credit grantor. A large proportion of borrowers who can't qualify for a mortgage would qualify if their credit
score was higher.
Any lender to whom you apply will obtain your score and provide it to you. As noted below, however, inquiries by
lenders may have a negative effect on your score, whereas inquiries by you do not. Hence, it is a good idea to
find your score before you apply, so you can make an informed decision on whether you want to apply at that
time.
You can obtain your score from many firms in the business, including www.equifax.com, www.transunion.com,
www.experian.com and www.myfico.com.
Some Tips are:
1. Pay on time: The core rule is to meet your debt obligations on-time, every time. If you have had payment
lapses in the past but your habits have improved, time is on your side. The credit scoring rules weight recent
experience more heavily than older experience.
2. Correct mistakes in your credit report: Your score should not be reduced by reporting mistakes, which are all
too common.
3. Detach yourself from the "wrong vendors": Because finance companies lend to relatively poor risks, the
credit score of any borrower owing money to a finance company is lower than it would be if the creditor was a
bank. By the same logic, borrowers who have credit cards of department stores are penalized, relative to what
their score would be if they had cards issued by banks.
4. Reduce balances on revolving credits to less than 50 percent of the maximums: A high utilization ratio is read
as a sign of weakness and potential trouble, reducing your score. Credit cards are the most important type of
revolving credits, but HELOCs belong in this category as well. A HELOC used to purchase a house or to
refinance a mortgage, where the initial utilization ratio is 100 percent, will jolt your credit score.
Note that utilization ratios can be reduced by getting the maximums raised, as well as by paying down the
balances. In many cases, credit card issuers are willing to raise the maximum at the borrower's request.
5. Minimize the number of "hard inquiries": Hard inquiries are requests to a credit agency for your credit score
from a credit grantor, insurance company or other entity to which you have applied and to which you have
entrusted your Social Security number. "Soft inquiries" made by you or by firms looking to sell you something
for which you have not applied don't require your permission and don't impact your credit score.
The credit-scoring systems may or may not penalize borrowers who shop multiple credit grantors within a short
period -- unfortunately, you can't be sure.
The credit agencies tell you that multiple inquiries within a 15-day period count only as a single inquiry, but in
fact inquiries for mortgage, auto and student loans would probably count as three inquiries, and even three
mortgage inquiries could count as three inquiries, depending on how the credit grantors are identified to the
credit scorer. I will have an article abut this in the near future.
The bottom line is that in applying for credit, find your own score that you can deliver to the vendors you are
shopping who need the score to set the price. The vendor you select will verify the score through his own inquiry,
but it will be only a single inquiry.
6. Pay off collection accounts: This may actually reduce your score in the short-run by converting the account
from an older entry with a low weight to a new one with a higher weight. However, you can't get a loan with a
collection account on your record, so you must pay it off -- the sooner the better.
--------------------------------------------
May 9, 2011: 2011 Charlotte Statistics for March have just been released.
Average List Price Mar 2011 $222,224 vs. Mar 2010 $223,319 (-1%)*
Average Sales Prices Mar 2011 $194,465 vs. Mar 2010 $197,564 (-2%)*
with List to Close Days averaging 159 days (2 MORE days than last month, 157 days)*
New listings Mar 2011 is 5,147 vs. Mar 2010 is 6,147 (new listings are down by 16%)*
*data comes from Carolina Multiple Listing Services, Inc. April 18, 2011
+Interest Rates have DECREASED from a year ago: Mar 2011 4.94% vs. Mar 2010 4.99% (FANTASTIC time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast April 18, 2011
-----------------------------------
April 28, 2011: Three Reasons why a Seller should hire their own Inspector:
1) Avoiding liability: If an undisclosed defect (one that you were unaware of for the past 30 years) is discovered
after the close of escrow, you could be sued for nondisclosure. The fact that you were unaware of the problem
would be for you to prove in court.
2) Avoiding repair costs: Disclosing defects at the outset of a purchase transaction enables you to do an as-is
sale. When defects are discovered by the buyers' home inspector, the buyers are more likely to insist on repairs.
3) Building trust: Providing a home inspection report to buyers is a good way to build trust in a transaction by
demonstrating that you, the seller, have nothing to hide.
As a seller, it's better to provide disclosure than waiting for disclosure to happen to you.
--------------------------
April 18, 2011: Today's the day - you've done your paperwork, now it's time to get some freebies. Find out who
is offering some Tax Freebies!
MaggieMoo's: The ice cream chain is offering free mini ice cream sundaes between 3 p.m. and 6 pm.
Cinnabon: Anyone who stops by between 6 p.m. and 8 p.m. can get two free "cinnamon bites"
Bruegger's: Customers can score a baker's dozen plus two tubs of cream cheese for $10.40 if you bring in a
coupon, available through the bagel chain's Facebook page.
P.F. Chang's: The Chinese restaurant chain is offering a 15 percent discount on all Tax Day orders, which
includes dine-in and take-out, with the exception of Happy Hour orders and beverages.
McCormick and Schmick's: The seafood restaurant is celebrating Tax Day by featuring entrees and bar specials
for $10.40 (plus guests can pick up a $10.40 certificate to use in the dining room).
IHOP: Every day in April--not just Tax Day itself--children age 12 and under eat for free, as long as their
parents purchase an adult entree.
DirectTV, along with a handful of other providers, are offering free access to HBO and Cinemax through April
18.
Bally Total Fitness is giving its members free personal training sessions, and non-members can work out at no
charge on Monday.
Spa week: Spas throughout the country are offering a variety of treatments, from massages to facials, for $50
through April 17. (Services usually cost as much as $500.) The fact that spa week falls on tax day might be a
coincidence, but it can still help you relax after making the deadline. Find a participating spa near you at www.
spaweek.com.
Office Depot: The supply store is offering free shredding (up to five pounds) as well as 25 pages of tax document
copying at no charge. Just bring in this coupon before April 23.
National Park Week: Tax Day coincides with National Park Week, which means free entrance into the more
than 100 national parks that usually charge fees.
http://finance.yahoo.com/news/Tax-Day-Deals-Discounts-and-usnews-3570468054.html?x=0
--------------------------------------
April 5, 2011: Your Federal tax return is due on April 18 instead of the usual April 15 deadline. April 18 is also
the deadline for several other important tax-related actions. For example, your first estimated tax payment for
2011 is due April 18. But that's not all. There are several other important steps you should consider taking
before the deadline:
File an extension
If, like many people, you don't want to have to file your completed return by April 18, you can obtain an
automatic six-month extension of time to file. This is very easy to do. You simply fill out Internal Revenue
Service Form 4868: Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.
You can either email the completed form to the IRS or send it by postal mail. It must be sent by April 18, 2011.
You don't have to tell the IRS why you want the extension, and you can't be denied the extension -- you get it
automatically by filing the form. However, when you file Form 4868 you must estimate your total tax liability for
2010 and list it on the form.
It's important to understand that obtaining an extension of time to file your return does not relieve you of the
duty to pay your taxes in time for the initial deadline (by April 18).
You can send in any balance due, along with the Form 4868, but this is not required. If you don't pay balance due
by April 18, you'll have to pay interest on the amount and may also be charged late payment penalties by the
IRS. The late payment penalty is usually one-half of 1 percent of any tax (other than estimated tax) not paid by
April 18, 2011.
Fund your retirement accounts
One of the best ways to reduce your tax liability is to establish and fully fund a tax qualified retirement account.
These include traditional and Roth IRAs (individual retirement accounts), SEP-IRAs, SIMPLE IRAs, 401(k) and
solo 401(k) plans, Roth 401(k) plans, and Keogh Plans (defined contribution plans and defined benefit plans).
Your contributions -- other than those to Roth plans -- are tax deductible. Contributions to Roth IRAs and Roth
401(k) plans are not deductible, but withdrawals after age 59 1/2 are tax free.
The maximum 2010 contribution you may make depends on the type of plan you have and the amount of your
net self-employment income. Contributions to traditional and Roth IRAs are limited to $5,000; $6,000 if you
were at least 50 by the end of 2010.
Contributions to the other plans can be much larger -- as much as $49,000 for the most generous plans. There
are several online retirement plan contribution calculators you can use to figure out your maximum contribution
for 2010; including one at CalcXML.com.
If you already have a retirement account, but have not funded it for 2010, you still have time to make a 2010
contribution. You have until April 18 to make contributions to a traditional or Roth IRA, 401(k) plan, SEP-IRA,
SIMPLE-IRA, or Keogh Plan, and have them count for the 2010 tax year.
Make sure to tell your plan administrator that your contribution should be applied to 2010, not 2011.
Filing an extension of time to file your return does not extend the deadline to contribute to an IRA. However,
filing an extension does extend the time to fund a 401(k) plan, SEP-IRA, SIMPLE IRA, or Keogh Plan until Oct.
15, 2011 -- the extended due date for your return.
So if you have one of these plans and need more time to come up with the money to contribute to them, be sure
to file an extension.
What if you don't have any retirement accounts? You still have until April 18 to establish a traditional or Roth
IRA, or SEP-IRA and make contributions for the 2010 tax year. It is too late to set up 401(k) plan, SIMPLE-
IRA, or Keogh Plan for the 2010 tax year.
Contribute to a Health Savings Account (HSA)
If you have a Health Savings Account, April 18 is also the last day you may make contributions for the 2010 tax
year. As with IRAs, obtaining an extension to file your return does not extend this deadline.
If you have an individual plan, you can contribute a maximum of $3,050 for 2010. If you have a family plan, the
maximum 2010 contribution is $6,150. These limits are increased by $1,000 if you were 55 or older at any time in
2010.
Stephen Fishman is a tax expert, attorney and author who has published 18 books, including "Working for
Yourself: Law & Taxes for Contractors, Freelancers and Consultants," "Deduct It," "Working as an
Independent Contractor," and "Working with Independent Contractors." Inman News April 5, 2011
-------------------------
March 24, 2011: Many ask "How's the Real Estate Market?" Well if you would like to know, 2011 Charlotte
Statistics for February have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Price Feb 2011 $206,576 vs. Feb 2010 $216,605 (-5%)*
Average Sales Prices Feb 2011 $180,036 vs. Feb 2010 $191,288 (-6%)*
with Current Average Days on Market 119.9 days (3.20 MORE days than last month, 116.7 days)*
New listings Feb 2011 is 4,108 vs. Feb 2010 is 4,918 (new listings are down by 16%)*
*data comes from Carolina Multiple Listing Services, Inc. March 7, 2011
+Interest Rates have DECREASED from a year ago: Feb 2011 4.95% vs. Feb 2010 5.05% (FANTASTIC time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast March 7, 2011
--------------------------------------------
March 17, 2011: Happy St. Patrick's Day! Here are some ideas on how to be GREEN in your home:
You can be a green by unplugging appliances or using chemical-free products. It’s as easy as fixing leaky faucets
or installing window treatments to conserve heat in the winter and to keep your place cool in the summer
without cranking up the air conditioning. Collect your old bath water or dishwater. Known as gray water, it can
be used to water houseplants or for outdoor irrigation. But you’ll want to use only natural, biodegradable soap to
keep from harming your greenery and to keep chemicals from leaching into the water table. Place a two-liter
soda bottle filled with water in your toilet tank to displace some of the water, reducing the amount used in each
flush-refill cycle. You can also buy a bigger float ball or adjust the existing one so that it rests closer to the
bottom of the tank, shutting off the refill valve earlier. Find out which appliances are the biggest power
consumers with an energy audit, which public utilities usually offer free (hint: refrigerators are major energy
hogs) and consider replacing them with energy-efficient models. Even when they’re switched off, most home
appliances and electronic devices continue drawing a little bit of power as long as they’re plugged in. These
“vampires” account for an estimated 10% of residential energy use in the U.S. Shedding these leeches is easy.
Simply unplug the stuff you don’t use most of the time.
---------------------------------
Feb 25, 2011: Many ask "How's the Real Estate Market?" Well if you would like to know, 2011 Charlotte
Statistics for January have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Price Jan 2011 $217,809 vs. Jan 2010 $229,214 (-5%)*
Average Sales Prices Jan 2011 $188,147 vs. Jan 2010 $200,592 (-6%)*
with Current Average Days on Market 116.7 days (2.30 MORE days than last month, 114.4 days)*
New listings Jan 2011 are 4,006 vs. Jan 2010 5,571 (new listings are down by 21%)*
*data comes from Carolina Multiple Listing Services, Inc. February 7, 2011
+Interest Rates have DECREASED from a year ago: Jan 2011 4.76% vs. Jan 2010 4.98% (STILL FANTASTIC
time to buy!)
+source: Freddie Mac, National Association of Realtors Forecast February 7, 2011
---------------------
Feb 17, 2011: There have been many questions regarding Mecklenburg County Tax Revaluation. How was the
new tax value computed, what can the Homeowner do? Mecklenburg County 2011 Revaluation
Revaluation is the process of reappraising all properties within the county for tax assessment purposes. This is
required every 8 years. Wonder how they compute your new tax value? Click the link below to learn more:
http://charmeck.org/mecklenburg/county/AssessorsOffice/reval/Pages/default.aspx
-----------------------------------------
Feb 3, 2011: Best bathroom floor: tile, vinyl or wood?
Often, bathroom tile is glazed, shiny and smooth. A simple solution is to use rubber-backed bath rugs over the
tile to keep your footing. Covering most of a tile floor with a rug is not very practical. So here are a couple of
alternatives.
First, if you choose a tile floor, avoid glazed tile or marble. Instead, pick a material that's either textured or has
a matte finish. They provide more traction and a better chance to keep you upright.
Another tile alternative is Saltillo. This is a porous terra-cotta tile from Mexico that requires regular sealing
with a quality acrylic sealer. The plus is that it's got a skid-resistant surface. The minuses are the maintenance
factor and the tile's irregular shape. If you're looking for uniformity, this option is not for you. But if you're
after a rustic look, this may be the ticket.
Now, don't fall over in a dead faint, but another alternative you might consider is an engineered wood floor. It's
not for everyone, but it might work for you.
The negative, of course, is that this type of floor doesn't withstand large amounts of water well. If this is the
only bathroom and there are kids, wood is not an alternative. But if the bathroom is adults only, the beauty of
wood is a definite alternative.
Engineered wood consists of a top layer of hardwood -- bamboo, for example -- that is pressure-glued to
alternating layers of plywood. The cross-grain construction gives the flooring good stability, unlike its solid wood
counterpart. Also, the factory-applied finish is water-resistant. Notice, we did not say waterproof.
A wood floor will provide more traction than smooth tile, but will still require a rubber-backed bath rug for
entering and exiting the tub or shower and to reduce the amount of water on the floor.
The bottom line is that there's no perfect solution. Water will have its way. For our money, a matte, textured
tile is the best solution followed by a top-quality sheet vinyl or linoleum.
written by Inman News™
================================
January 26, 2011: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010 Charlotte
Statistics for December have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Price Dec 2010 $220,130 vs. Dec 2009 $239,062 (-8%)*
Average Sales Prices Dec 2010 $193,910 vs. Dec 2009 $211,705 (-8%)*
with Current Average Days on Market 114.4 days (6.90 MORE days than last month, 121.3 days)*
New listings Dec 2010 is 2,945 vs. Dec 2009 3,094 (new listings are down by 5%)*
*data comes from Carolina Multiple Listing Services, Inc. January 5, 2011
+Interest Rates have DECREASED from a year ago: Dec 2010 4.71% vs. Dec 2009 5.14% (FANTASTIC time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast January 5, 2011
================================
January 20, 2011: It’s easy to overlook a small leak or slight draft. But these problems have the potential to get
worse very quickly. To prevent a big problem from arising, energystar.gov recommends having a contractor
perform annual check-ups—on the cooling system in the spring and the heating system in the fall. To
remember, you might plan the check-ups around the time changes in the spring and fall.
Here are some things you should expect a contractor to handle:
• Check thermostat settings to ensure the cooling and heating system keeps you comfortable when you are
home and saves energy while you are away.
• Tighten all electrical connections and measure voltage and current on motors. Faulty electrical connections can
cause unsafe operation of your system and reduce the life of major components.
• Lubricate all moving parts. Parts that lack lubrication cause friction in motors and increases the amount of
electricity you use.
• Check and inspect the condensate drain in your central air conditioner, furnace and/or heat pump (when in
cooling mode). A plugged drain can cause water damage in the house and affect indoor humidity levels.
• Check controls of the system to ensure proper and safe operation. Check the starting cycle of the equipment
to assure the system starts, operates, and shuts off properly.
Cooling Specific
• Clean evaporator and condenser air conditioning coils. Dirty coils reduce the system's ability to cool your home
and cause the system to run longer, increasing energy costs and reducing the life of the equipment.
• Check your central air conditioner's refrigerant level and adjust if necessary. Too much or too little
refrigerant will make your system less efficient increasing energy costs and reducing the life of the equipment.
• Clean and adjust blower components to provide proper system airflow for greater comfort levels. Airflow
problems can reduce your system's efficiency by up to 15 percent.
Heating Specific
• Check all gas (or oil) connections, gas pressure, burner combustion and heat exchanger. Improperly operating
gas (or oil) connections are a fire hazard and can contribute to health problems. A dirty burner or cracked heat
exchanger causes improper burner operation. Either can cause the equipment to operate less safely and
efficiently.
Actions You Can Do Yourself
• Inspect, clean, or change air filters once a month in your central air conditioner, furnace, and/or heat pump.
Your contractor can show you how to do this. A dirty filter can increase energy costs and damage your
equipment, leading to early failure.
Source: energystar.gov
---------------------------------
January 12, 2011: We all know now is a great time to buy with low list prices and even lower interest rates,
however, credit scores are just as important especially if you have to borrow the money to purchase a property.
Lenders look at your credit score which can range from 300-850, the higher the credit score the better
Here are 3 easy ways to improve your credit score
1. Pay bills on time
2. Don't get to the edge of your credit limit
3. Don't apply for new credit that you really don't need
Scoreinfo.org, is a new website that helps people understand how credit scores factor in this new era of financial
regulation. As of January 2011, you have the right to receive your score any time a lender makes certain kinds
of decisions -- e.g., if you're denied credit or given credit on less than the most favorable terms a lender offers.
===================
January 3, 2011: Happy New Year! With all the money we spent on presents, parties, and everything else —
who really can afford to let money fly right out the window? So here are some ideas on how to make your
Windows more Efficient...
Do you know in the winter, drafty windows can account for up to 25 percent of our heating bill?
Insulating drapes, interior storm windows, and plastic window insulation kit. Each of these solutions has its own
pros and cons, but they all insulate the same way. They create an insulated air buffer between your home and
the window surface.
Insulated drapes are considered the most attractive option, but experts stress the importance of proper
insulation. Drapes must be flush with the wall to effectively create an air space between the window surface and
the curtains. Improperly installed curtains that let air pass through the sides of the drapes can actually pull heat
away from the room.
Drapes, of course, can be reused and will help reduce utilities costs in every season.
Interior storm windows can be fitted to your windows and are effective at reducing air infiltration. These units
use a fitted pane that often clips into a frame. Pane materials range from the more expensive glass to
polycarbonate plastic. The advantage to interior storm windows is that they can be reused for several years.
Many favor interior storm windows over exterior varieties because they are easier to install will require less
maintenance. According to the U.S. Department of Energy, interior storm windows can reduce heat loss by 25 to
50 percent.
Plastic insulation kits are a very economical choice. Kits include a plastic sheet that is attached to a window
frame with adhesive tape and then stretched tight by applying heat with a hair dryer. The plastic film is made of
vinyl, polyester or polyethylene and can technically be removed and stored for next winter's use. Most
homeowners, however, find these kits to be single season items due to tears in the plastic and the milky
appearance created by the aging plastic.
So which is your best choice? Go with a reusable option like interior storm windows or insulating drapes.
Homeowners that want to realize long term savings should consider upgrading to Energy Star qualified windows.
Energy Star-rated windows will have a substantial upfront cost but are the most efficient way to reduce home
heat loss around windows.
(c) 2010, The Charlotte Observer (Charlotte, N.C.).
-------------------------------------------
December 15, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010
Charlotte Statistics for November have just been released. Contact Jennifer Lew 704-591-5542 for more Real
Estate news.
Average List Prices Nov 2010 $247,369 vs. Nov 2009 $216,507 (+14%)*
Average Sold Prices Nov 2010 $215,239 vs. Nov 2009 $195,244 (+10%)*
with Current Average Days on Market 121.3 days (8.80 day MORE than last month, 112.5 days)*
New listings Nov 2010 is 3,078 vs. Nov 2009 3,614 (new listings are down by 15%)*
*data comes from Carolina Multiple Listing Services, Inc. December 7,2010
+Interest Rates have DECREASED from a year ago: Nov 2010 4.30% vs. Nov 2009 4.78% (FANTASTIC time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast December 7, 2010
------------------------------------
November 30, 2010 Dreaming of a Green Christmas? Tips for an Eco-Conscious Holiday
Use Sustainable Gift Wrap: Consider saving and reusing holiday wrapping paper just as your grandmother once
did. Or wrap your gifts in pretty fabric that can be used for other purposes. "In my family, we re-gift gift bags
again and again," DeLongpre Johnston says. "Pillowcases can also make pretty gift wraps if done right."
Decorate with Energy-Efficient Lighting: While many people still use standard incandescent holiday bulbs,
decorative LED lights are now available in a variety of holiday shapes and colors. In addition to having a much
longer life span than standard lights, LEDs also reduce fire risks because they stay cool to the touch. "This
would be one of the areas where you might spend a little more upfront, but save in the long run," DeLongpre
Johnston says. Want to be even greener? Use light-sensor timers to turn your lights on and off.
Give Consumable Gifts: Most Americans don't need any more stuff or, as DeLongpre Johnston points out, we're
all "stuffed out." So consider giving the gift of services instead, or goods that can be consumed. Some ideas
include massages, pedicures, tickets to sporting events, gift certificates for restaurants and other similar
pampering treats. Other options would be to give consumable gifts that keep on giving all year long like a
membership to a Wine of the Month Club or a monthly delivery of seasonal fruits grown locally. Says
DeLongpre Johnston: "It doesn't mean you have to be any less generous."
Make a Donation in Someone's Name: If someone has a passion in life, giving to an organization that supports
their cause can be very meaningful. Whether you donate a flock of chicks to support a hungry family through
Heifer International or fund the planting of trees through American Forest, you will be giving a gift that gives
back and helps preserve the environment at the same time.
Give the Gift of Time: Schedule time to get together with friends and family for cookie exchanges or other
meaningful holiday events. "We do have the ability as individuals and families to bring whatever intention to
this season that we want," DeLongpre Johnston says. "So we can share meals and share time with one another,
and if we'd like to give each other gifts, we can do that too."
Treecycle: If you have a cut tree, check with your local municipality to find out when they will pick it up for
recycling. Fortunately, you'll be in good company. More than 30 million real Christmas trees are sold in the
United States each year, but more than 90 percent are being recycled for mulch or chipped and used in parks and
other public spaces.
written by RISMEDIA http://rismedia.com/lowes/8355/11360
---------------------------------------
November 22, 2010: Top Ten Selling Tips
1. Repaint Rooms. Paint with a buyer's sensibilities in mind. Use neutral colors throughout your home to lend
continuity from room to room. Paint with light colors to make living areas appear roomier and darker colors for
a cozier feel.
2. Wash and Paint the Exterior. Repainting your exterior increases curb appeal. Spruce it up with a thorough
power washing. If your house's exterior paint has faded, a new coat will add value and attract more house hunters
3. Shine with New Lighting. Bring out the best features of your house with a new lighting layout. A brighter
room will appear more spacious and inviting to potential buyers. Accentuate your house's distinctive elements
with track lighting, table and floor lamps, or wall and ceiling fixtures
4. Organize and De-Personalize. Cleanliness leads to closing. Clear your house of clutter with new storage or
shelving. At the same time, help buyers envision the house as their own by removing personal items like knick-
knacks and photographs.
5. Repair or Replace Window Screens. Fixing sagging, dirty or ripped screens is one of the easiest and most
inexpensive home improvements for home sellers. Take an afternoon and rejuvenate your windows and doors
with just a few simple tools
6. Patch Drywall Dings and Dents Imperfections like drywall divots suggest larger problems with the integrity of
your house. Patching dings and dents is crucial to a fast sell, especially if you plan on painting. Make your walls
flawless before showing the house
7. Unstick Stubborn Doors. Sticking doors are bothersome, and even more so to prospective buyers touring your
home for the first time. With some sanding and varnish, you can quickly eliminate this common irritation.
8. Repair Tile Grout. Make your bath and kitchen look brand new by ridding these rooms of shabby and
damaged grout. Repairing grout could take some time, depending on the magnitude of the project. But the
striking results will be well worth the time spent
9. Upgrade Kitchen and Bath Faucets. Replace faucets to give your kitchen or bathroom a quick facelift. A new
faucet can set a more contemporary aesthetic and pique interest from home buyers. If your current faucets are
leaking or worn, a new faucet is an absolute necessity.
10. Clean Your Gutters. Clogged gutters could make a great house look neglected. Clean your gutters twice a
year. While cleaning, look for trouble areas that need repair like holes and leaking joints. As a convenient perk
for the buyer, install gutter screens.
--------------------------------------------------
November 15, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010
Charlotte Statistics for October have just been released. Contact Jennifer Lew 704-591-5542 for more Real
Estate news.
Average List Prices Oct 2010 $231,491 vs. Oct 2009 $218,050 (+6%)*
Average Sold Prices Oct 2010 $202,840 vs. Oct 2009 $196,204 (+3%)*
with Current Average Days on Market 112.5 days (.30 day MORE than last month, 112.2 days)*
New listings Oct 2010 is 3,875 vs. Oct 2009 4,863 (new listings are down by 20%)*
*data comes from Carolina Multiple Listing Services, Inc. November 7, 2010
+Interest Rates have DECREASED from a year ago: Oct 2010 4.23% vs. Oct 2009 5.03% (FANTASTIC time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast November 7, 2010
--------------------------------------------
November 3, 2010: What it takes to Get a Loan
Lenders loosen their grip, but your credit history will decide whether you get a mortgage, car loan or credit card.
When the financial crisis hit, many banks became tightfisted, and plenty of potential borrowers walked away
empty-handed. But financial institutions have emerged from the recession stronger and ready to lend. "Credit is
available. No question about it," says James Chessen, chief economist for the American Bankers Association.
"Banks are being careful because the economy is still weak, but I don't know a bank out there that's not
anxious to make a loan."
Keep in mind that from mortgages to car loans, your credit history and score matter more than they did prior to
the crunch. Rates are at rock-bottom levels for borrowers with top-tier credit -- generally credit scores above
720. Before you shop rates, get your credit reports at www.annualcreditreport.com and check for errors. And buy
your credit score from Equifax for $7.95 (or get a free score that's similar to the ones that lenders use from
CreditKarma.com). That way you can see where you stand before you apply for a loan.
Mortgages: Stricter Rules
Mortgage lenders want to make loans now, and they may even bid against one another for your business. But
lending standards remain tight, and you must be prepared to produce a mound of paperwork to document your
income and assets.
Rates are as low as they were in the 1950s, so going through the motions could pay off. In mid September, the
average interest rate for a 30-year, fixed-rate conforming loan -- a mortgage of $417,000 or less -- was 4.5%,
according to HSH Associates, a mortgage-tracking firm. The initial rate for a 5/1 adjustable-rate mortgage (a
fixed rate for five years, followed by annual adjustments) was 3.6%.
Fannie Mae, Freddie Mac and the Federal Housing Administration continue to dominate the mortgage market,
setting the standards for the loans that lenders make and sell to investors. So lenders strive to dot every i and
cross every t when they qualify you.
If you're buying or refinancing the mortgage on your primary home, you'll need a minimum down payment of
5% to 10% for a conforming loan or 10% to 15% for a conforming jumbo loan (125% of a metro area's median
home price, up to $729,750). With 20% or more down, you avoid private mortgage insurance, which typically
costs 0.5% to 1.5% of your loan amount per year.
Fannie Mae and Freddie Mac allow a minimum credit score of 620 if you have at least 25% equity in the
property or a score of 660 with equity of less than 25%; you'll get the best rate if your score exceeds 720. The
FHA will soon require a minimum credit score of 580 to qualify with a down payment of 3.5%, but FHA lenders
often impose a higher minimum score of 670.
In addition to your credit, lenders will also scrutinize your ability to pay, starting with your ratio of debt to
income. Monthly housing expenses (principal, interest, taxes, hazard insurance, private mortgage insurance and
association fees) shouldn't account for more than 28% of gross monthly income. Total debt shouldn't exceed
36% of gross income, but in some cases lenders stretch the maximum to 45%.
Chris Bennett, a loan officer with HomeServices Lending, in Charlotte, N.C., says that he surprises borrowers
"all the time" with preapproval of their loan when they aren't expecting it. Even people with lower credit scores
may qualify if they have stable employment, a history of paying rent and credit lines on time, and money in the
bank or in a retirement account.
However, Bennett also counsels some borrowers to delay their home purchase long enough to improve their
credit score, eliminate debt, get a raise and save more money. They might earn a better interest rate, improving
their buying power. Plus, he says, "it's not good to lay out every bit of cash you have if you won't have money
for a rainy day."
Prove it. At a minimum, you must supply your pay stubs for the past 30 days and W-2 forms for the past two
years. Lenders will want to see bank, retirement-account and investment statements for the past 60 days.
Bennett says three types of borrowers will face additional requirements:
If you're self-employed or if 25% or more of your income is from commissions or bonuses, you must provide two
years of tax returns. Lenders will average your income over the past two years to figure your debt-to-income
ratio. If you have pursued opportunities to reduce your taxable income, you may not have sufficient income to
qualify even though you may have a lot of money in the bank. Community banks, credit unions and other
lenders that typically keep their loans on their own books are the best bet for borrowers with low incomes and
high assets, says Bennett.
If you want to rent out your home and buy a new one, you must provide a signed lease for a minimum of 12
months. You can use only 75% of rental income to help qualify for the mortgage, and you must have at least
30% equity in your former home.
If you and your spouse are relocating for work and your spouse doesn't have a job yet, you must qualify for the
loan based on one income unless your spouse has a signed agreement with an employer to begin work within 45
days of closing the loan.
Even if you qualify, you can throw a monkey wrench into the final loan approval if you take on new debt that
could affect your credit score or your debt-to-income ratio. Some lenders pull another credit report just before
closing. Another possible sticking point is the appraisal. Overly generous appraisals helped to fuel the housing
bubble.
by Jessica L. Anderson, Pat Mertz Esswein and Joan Goldwasser from Kiplinger.com
----------------------------------------------
RISMEDIA, October 27, 2010-- Majority of Americans think Buying a Home Is a Good Decision. Despite the
continuing challenges facing the U.S., nearly eight out of 10 respondents believe buying a home is a good
financial decision, according to NAR's eighth annual Housing Opportunity Pulse Survey.
The survey, which measures how affordable housing issues affect consumers, also found job security concerns to
be the highest in eight years of sampling, with 70 percent of Americans saying that job layoffs and
unemployment are a big problem in their area; eight in 10 cite these issues as a barrier to homeownership. The
telephone survey of 1,209 urban and suburban adults in the top 25 metropolitan statistical areas was conducted
for NAR by American Strategies and Myers Research & Strategic Services for NAR's Housing Opportunity
Program.
Some key results:
* Americans continue to believe that buying a home is a good financial decision (77 percent believe strongly or
not so strongly, 68 percent strongly so).
* More than two-thirds of respondents (68 percent) say that now is a good time to buy a home.
* Job insecurity and the lack of jobs continue to be the primary obstacle to home ownership and market
recovery.
* Respondents see the recession and job losses as the main reasons for the foreclosure problem, a shift from last
year when they were more likely to blame homeowners who bought homes they could not afford.
* A majority of renters say that owning a home at some point in the future is either one of their highest
priorities (39 percent) or a moderate priority (24 percent). Just 21 percent of renters say that owning a home is
not a priority at all.
* Frustration with banks is up: now a majority worry that banks have made it too hard to qualify for a home
mortgage loan.
* 51 percent of respondents say foreclosures remain a big or moderate problem in their area. While there has
been a significant drop in the percentage of those surveyed who say foreclosures have increased, 51 percent say
that the rate of foreclosures is about the same as it was last year.
* Most of those surveyed say that it is harder to sell a home in their neighborhood than it was a year ago.
* Looking forward, 70 percent expect real estate sales in their neighborhood to remain about the same over the
next few months. A nearly identical number (69 percent), also expect home values to remain the same.
* Nearly one-quarter (23 percent) are now very concerned about the number of homes and condos for sale in
their area—a number that is up 7 points from last year.
* Most respondents are more concerned about the drop in home values than they are about home costs being too
high. Still, cost remains the significant barrier to many who would otherwise like to buy a home.
http://rismedia.com/lowes/8355/10751
--------------------------------------------
Oct. 12, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010 Charlotte
Statistics for September have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Prices Sept 2010 $231,678 vs. Sept 2009 $219,925 (+5%)*
Average Sold Prices Sept 2010 $203,799 vs. Sept 2009 $196,760 (+4%)*
with Current Average Days on Market 112.2 days (5.50 days LESS than last month, 117.7 days)*
New listings Sept 2010 is 4,043 vs. Sept 2009 4,704 (new listings are down by 14%)*
*data comes from Carolina Multiple Listing Services, Inc. October 7, 2010
+Interest Rates have DECREASED from a year ago: July 2010 4.35% vs. July 2009 5.04% (FANTASTIC time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast October 7, 2010
----------------------------------
Oct. 12, 2010: Energy Efficiency Tax Credit
Residential Energy Property Credit (Section 1121): The new law increases the energy tax credit for homeowners
who make energy efficient improvements to their existing homes. The new law increases the credit rate to 30
percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for
improvements placed in service in 2009 and 2010.
The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-
efficient heating and air conditioning systems.
Click link to read more : http://www.irs.gov/newsroom/article/0,,id=206871,00.html
----------------------------------
Sept 29, 2010: Buying Your First Home
Finding the right first home starts with a price range and a short list of desirable neighborhoods. But there are
many other factors you'll need to consider before investing in what may be your biggest asset.
Yahoo Finance has a great article: http://finance.yahoo.com/how-to-guide/real-estate/12819
----------------------------------
Sept 22, 2010: 10 Reasons to buy a Home NOW
Today marks the first official day of Fall. If I haven't said it once, I have said it many times NOW is a perfect
time to buy a home. With historically low interest rates and fantastic list prices, this is a perfect time to find
your dream home. Below is a link from the Wall Street Journal with 10 Reason to Buy a Home:
http://online.wsj.com/article/SB10001424052748703376504575492023471133674.html?mod=djkeyword
---------------------------------
Sept 7, 2010: 10 Big-Impact, Low-Cost Remodeling Projects
1. Tidy up kitchen cabinets.
Potential buyers do open kitchen cabinets and look inside. Home owners can add rollout organizing trays so
when buyers peek in, they feel like there’s lots of room for their stuff.
2. Add or replace tile.
By retiling very inexpensively, you make a room look way cleaner that it was. Every city has stores that offer $1
to $2 tile, so home owners have to pay only for the low-cost tile and labor to replace a
dated backsplash or add a new one.
3. Add a breakfast bar.
When a wall separates a kitchen from a family room, suggest cutting out an opening to create
a breakfast bar. In this one in particular home, there was a cutout in the wall between the kitchen and living
room. The structure of the cutout was left and an oversized granite breakfast bar was added, and put chairs in
front of it. That cost about $600. This made a huge difference and a fantastic upgrade.
4. Install granite tile instead of a slab.
Everybody is hot for granite kitchen countertops, but that can be a $5,000 upgrade. Instead, home owners can
put in 12-inch granite tiles for about $300 in materials and get very high impact for little money.
5. Freshen up a bathroom without retiling.
With a dated bathroom, a recommendation would be putting in a new medicine cabinet for $100 to $150, light
fixtures for about $100, a faucet for $50 to $75, and a vanity for $200 to $300.
And instead of replacing the tile, the existing grout can be lightly scraped and regrouted, which leaves a haze
that can be buffed out and will make the tile look brand new. Also install glass shower doors. A French door adds
a lot of panache and elegance for $250, and people will notice the door, not the tile. With all that, you’ve done a
bathroom remodel for $1,000 to $2,000.
6. Freshen up the basement.
If home owners have cement block or poured concrete walls in the basement, suggest they have a contractor fill
in cracks with hydraulic cement and then paint with waterproofing paint. They can then add a top coat to add
color. They can also paint the basement floor with a good floor paint, which spiffs it up. The basement may not
be finished, but it’s no longer a damp dungeon.
7. Add a room.
Look for large spaces that can be enclosed to create a new bedroom for just the price of creating a wall. One
time, half-wall to an office was closed off and a door added to the other side of the room, thus creating another
bedroom. That $400 procedure, which took a contractor one day, netted about $40,000 in the sales price. You
can also add bedrooms inexpensively. In a two-bedroom house, there was an archway that led to a third room
that was used as a den. It had a dry bar where there would have been a closet, so we took out the dry bar and
created a closet so the owners had a third bedroom.
8. Spruce up cabinet fronts.
Suggest home owners update tired-looking kitchen cabinets. Reconditioning is the least expensive move for
under $1,000. If the wood is starting to look shabby from use or contaminants in the air, take out the nicks and
scratches, recondition it with oil, and put on new hardware. For $1,500 to $4,000, owners can replace the cabinet
doors and drawer fronts, and for $4,000 to $12,000, they can have all the cabinets refaced. With refacing, owners
can change the color of the cabinets by replacing the door and having a new skin put on the boxes. If they have
oak cabinets today, they can have cherry the next day.
9. Replace light fixtures.
In a foyer and in bathrooms and kitchens replacing overhead light fixtures provides a lot of pop for a little
money.If the kitchen has track lighting, spend $450 to $600 to have an electrician replace it with recessed
canned lights on a dimmer switch to add ambience. For about $700, install pendant lights over a kitchen island
or peninsula.
10. Tech-up the garage.
Sometimes replacing the garage door opener with a remote touch pad entry system can cost about $425 but it
makes it look like a high-end system.
www.REALTOR.24 REALTOR® JANUARY 2010 www.REALTOR.org/realtormag org/
---------------------------------------------
Sept 7, 2010 Tips for Getting Your Home Ready for Fall
Now that summer is beginning to wind down and cooler weather is on its way, it’s time to get some of the routine
home maintenance out of the way before it gets too cold. If you don’t prepare your home in the fall season, and
clean up the yard, when spring comes along, you could be left with an unsightly mess. Here are some tips to
prepare your home for the cold months ahead.
Clean out the rain gutters – If you have rain gutters on your home, fall is the best time to get them cleaned.
Cleaning rain gutters isn’t that difficult of a task, it’s just a tedious one. The easiest way to get rid of the junk is
to use a high pressure hose, and then use a small trowel to get rid of the rest of the debris. Once you have
gotten rid of all the debris, give your gutters a final spray.
Take care of your pots and planters – If you’re like most homeowners, you have some planters or potted plants
sitting around the yard. Before it gets too cold, be sure to empty the dirt out of any pots or planters and put
them in a place where they won’t freeze. If you don’t empty or store your planters, there’s a good chance they
will either crack or fall apart.
Rake the leaves – Keeping your yard free of leaves is an important task for homeowners. If you have numerous
trees in your yard and piles of leaves that you don’t take care of, you might find that your grass is dead once
spring arrives. Leaves can smother your lawn and replacing a lawn can cost a lot of money, so it’s a good rule of
thumb to get rid of the leaves in the fall.
Weed and feed the lawn – The best time to weed and feed the lawn is in the fall. If you add weed killer in the
fall, the weeds will store the poison in their roots during the winter season, and will prevent a breakout in the
spring. By feeding your lawn with fertilizer in the fall, you are promoting healthy root growth, and this will help
your lawn grow greener and faster in the spring.
Give your tools a tune-up – Once you have finished your fall maintenance chores, make sure you clean your
tools and store them in a dry place so they will be in working order once spring arrives. Be sure to store metal
shovels with the head upwards, as this will help detour rusting when it dries. Sheers need to be oiled up, wheel
barrels should be left upside down and don’t forget to spray off the underside of the lawnmower.
Daily Real Estate News written By Paige Tepping from RIS Media
------------------------------------
August 30, 2010 DIY Painting 101
Looking to spruce up your home, but don’t know where to start?
From molding to choice of color, there’s a lot to consider before dipping your brush in the paint. Does a room
really look smaller with a darker color on the walls? Should your ceilings be white? Do you want to add an accent
wall?
Here's some tips to get you started:
Getting Started
• Size up your room. How you use color depends on where you use color. Each room has its own unique elements
and function. First, think about the structure of the room. Consider its shape and size. A lighter color can make
a small room feel more spacious, while a darker color can help an immense room seem cozier.
• Take into account any architectural details, such as molding, trim, columns, and brackets. What's attractive
and what's not? Varied intensities and hues can complement architecture, furnishings, and art. Remember,
paint can accentuate a room's features or hide them.
• Your choice of color also depends largely on function. Will the main purpose of the room be eating, sleeping,
working, entertaining, or something else entirely? A warm hue in the living room gives a more comfortable and
inviting atmosphere for guests than a cooler color.
Selecting Interior Paint
• Before choosing your paint, think about where your room fits into the scheme of things. Where is it situated in
relation to other rooms? Is it a high- or low-traffic area? Flat paint, for instance, is best suited for ceilings, walls,
surface imperfections, and anywhere else that a muted low-reflecting surface is desired. Because it takes more
effort to remove stains from this type of paint, a flat finish is best suited for the low-traffic areas of your home.
• Use low-luster, satin, and eggshell paint on areas where a sheen is desired. These paints are easier to clean
than flat paint and hold up better under repeated washings. They withstand the wear and tear of high-traffic
areas-hallways, woodwork, kitchens, baths, children's rooms, and playrooms-more easily than other finishes.
• Semigloss and high-gloss paint and enamel are best suited for banisters, railings, shelves, kitchen cabinets,
furniture, doorjambs, windowsills, and any other surface you wish to accentuate. But be careful-the higher the
gloss, the more it emphasizes any surface imperfections.
Choosing a Palette
• Having trouble deciding on your paint palette? Choose a design direction. If you've already chosen an interior
décor or if you're working with a room that's already furnished, focus on a favorite fabric color, piece of art or
furniture, or other object.
• Have color confidence-don't be afraid to paint bold and bright. If your room is unfurnished, a vibrant color can
fill it until you can.
• Consider yourself above all. Paint color should reflect your mood and personality. What are your favorite
colors? If you're having trouble selecting a color, try looking in your closet. The colors you enjoy wearing are the
ones that make you feel good. You are the one who has to live with the color so live with the shades you love.
Making Your Purchase
• Water versus oil. When selecting an interior finish, try choosing a water-based enamel instead of an oil-based
gloss paint. Water-based gloss enamels have less odor than conventional oil-based paints. They are much easier
to clean up after, and they wear better over time.
• Don't purchase low-quality paint. High-quality paint performs better for a longer period of time. It's less prone
to yellow as it ages, goes on smoother, and won't leave brush marks. It is also easier to wash and dirt resistant.
• Purchase test quarts to review your color and finish selections at home. Paint a piece of scrap material such as
cardboard, or even a portion of your wall, to study the effects of various light conditions.
Daily Real Estate News written By Stephanie Andre from RIS Media
========================
August 23, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010 Charlotte
Statistics for July have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Prices July 2010 $247,660 vs. July 2009 $238,629 (+4%)*
Average Sold Prices July 2010 $217,320 vs. July 2009 $212,977 (+2%)*
with Current Average Days on Market 105.6 days (8.9 days LESS than last month, 114.5 days)*
New listings July 2010 is 4,995 vs. July 2009 5,195 (new listings are down by 4%)*
*data comes from Carolina Multiple Listing Services, Inc. August 6, 2010
+Interest Rates have increased from a year ago: July 2010 4.50% vs. July 2009 5.25% (FANTASTIC time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast August 6, 2010
=========================
August 16, 2010: This coming Saturday, August 21st is the 2010 Trail Run Challenge, presented by Jesse
Brown's Outdoors at the U.S. National Whitewater Center.
This Event is to raise funds for the Leukemia and Lymphoma Society efforts in the Carolinas. We need your
participation to reach the LLS's goals.
Sign up at www.trailrunchallenge.com or http://www.active.com/running/charlotte-nc/trail-run-challenge-
presented-by-jesse-browns-outdoors-at-the-us-national-whitewater-center-2010
This years event has Run For Your Life designing and managing the course, Jesse Brown's Outdoors providing
AWESOME prizes for age group winners, as well as great raffle items from brands like Mountain Khakis,
Outback Steakhouse, Timex Ironman and more. The only thing missing at this point is you! So sign up today!
This is a rain or shine event. Join us in the fight against cancer and remember to bring a friend!
Jennifer Lew is a Sponsor for the Trail Run Challenge
==========================
August 6, 2010 The Dr. Loan is back. This is a great product that allows for Dr’s and DDS’s to get approved up
to 95% LTV even if they carry large student loan balances. This loan can be done on Owner Occupied
Properties for purchase or refinances.
95% LTV up to $850K loan amounts NO Monthy PMI
Eligible Clients:
-------------------------------------------
July 26, 2010: Staying Green through the Move
RISMEDIA-Used mattresses are the bane of a landfill's existence. They take up a lot of space, give off noxious
gases as they decompose, and their springs can damage the machinery used to flatten them.
So what if, for a small fee, you could have your old mattress picked up by an environmentally friendly charity,
which would then tear it apart and find new uses for about 90 percent of the materials?
Would you do it?
The Mustard Seed of Central Florida — a furniture and clothing bank for families who have lost everything — is
hoping the answer is yes.
The 25-year-old non-profit already has begun recycling paper as well as used appliances, copiers, computers and
phone systems it once had rejected.
"We want to be good environmental stewards," said Michelle Lyles, the charity's new executive director. "And
we want to find a way to earn sustainable revenue so we can continue our mission of helping people."
Last week the Mustard Seed launched a 90-day pilot project to recycle mattress materials, selling off nearly all
of the components and becoming one of only a handful of businesses in the country to do so. If it's successful,
the enterprise could help create blue-collar jobs, earn revenue for the cash-strapped charity and get more beds
to families who need them.
"Before, when mattresses were donated," Lyles said, "we kept the ones that were in good shape and we threw
the bad mattresses away."
The practice not only placed a burden on the landfill, but it also cost money to haul the mattresses away. Worse,
it left the charity with a perpetual shortage of beds for needy families. But by issuing a call for all used
mattresses — good and bad — the charity expects to end up with more beds that are clean and sturdy enough to
be reused immediately.
The standard, Lyles said, is, "If it's something we would sleep on, we'll give it to our clients. If not, it's going to
get recycled."
The recycling process involves stripping the mattress down to its individual components — the quilted topper,
the polyurethane foam, the steel springs, the wooden frame and a rough-hewn interior pad that feels as if it is
made of horsehair. Those components, in turn, can be baled and sold for use in everything from carpet pads to
garden mulch to car engines.
"It can sometimes be difficult, but usually the components can be used somehow," said Celia Walker, project
manager for the St. Vincent de Paul Society in Eugene, Ore., a pioneer in the mattress-recycling business. That
organization, which started recycling mattresses 11 years ago, is now one of the largest such recyclers in the
world, and its representatives have been in Orlando helping the Mustard Seed learn the process.
Although a lot of businesses will strip a cotton top cover off a mattress, recover it and sell it as rebuilt, that is
not actually recycling, Walker said. For one thing, the material stripped off is typically thrown away. Rebuilt
mattresses — a potential next step for the Mustard Seed after recycling — involve stripping old mattresses down
to just metal and wood, then adding all new soft materials.
In Eugene, the mattress-recycling effort brought in $1 million in revenue last year.
Lyles doesn't anticipate that kind of return anytime soon, but the program is a major part of a whole new
direction for the Mustard Seed, whose founder, Carol Kane, retired in February after questions about how the
charity was run. Since then, Lyles has looked for opportunities not only to benefit the environment but also to
make the charity self-sustaining.
"It's a mantra of our times," said Terrence McDonald, executive director of Eugene's St. Vincent de Paul
Society, which earned $29 million last year for everything from its thrift stores to handcrafted glass art from
recycled windows.
"The message that is being driven home is that non-profits can't expect the same (donations) they received last
year or two years ago," he said. "We all need to find new and better ways to do things and raise money."
-------------------------------------------
July 19, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010 Charlotte
Statistics for June have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Prices June 2010 $241,039 vs. June 2009 $244,316 (-1%)*
Average Sold Prices June 2010 $215,559 vs. June 2009 $218,728 (-1%)*
with Current Average Days on Market 114.5 days (1.5 days LESS than last month, 116 days)*
New listings June 2010 is 4,692 vs. June 2009 4,551 (new listings are up by 3%)*
*data comes from Carolina Multiple Listing Services, Inc. July 7, 2010
+Interest Rates have DECREASED SIGNIFICANTLY from a year ago: June 2010 4.74% vs. June 2009 5.42%
( a FANTASTIC time to buy!)
+source: Freddie Mac, National Association of Realtors Forecast July 7, 2010
------------------------------------------
July 12, 2010: The Right Decisions Can Save Money During a Move -Moving a residence is often fraught with
high emotions and involves a to-do list a mile long. So, it's tempting to give only passing attention to hiring a
mover and the related incidental costs.By following the below tips, you can save some big money!
That could be a mistake — for your wallet and your peace of mind.
Moving can be quite expensive. A typical full-service interstate move costs about $4,300, while the same in-state
move might cost about $2,500, according to the American Moving & Storage Association.
And while the moving industry has many fine companies, it is notorious for fraud and dirty tactics by so-called
rogue movers.
Here are tips on making your move with lower costs and less hassle.
CHOOSE A TYPE OF MOVE: You have three basic choices: do-it-yourself, full service and a relatively new
hybrid of the two. Going it alone is cheapest, costing the rental price of a truck, gasoline, packing materials and,
perhaps, pizza and beer for friends you rope into helping.
With full-service moves, moving within a state is charged by the hour, while moving across state lines is charged
by weight and mileage.
With a hybrid move, a mover will drop off a large container at your home for you to pack. It will then load the
container onto a truck, drive the belongings to your new location and drop off the container for you to unload.
Because you're doing the manual labor of packing and unpacking, it's far less costly than a full-service move.
HIRE A QUALITY MOVER: If you hire help, get at least three price quotes and do homework. Seek
recommendations by talking with family and friends, even your Facebook circle. Investigate a company's
reputation with the Better Business Bureau (bbb.org), Yelp.com and possibly the paid-membership site Angie's
List (angieslist.com). Check a company's complaint history at the federal government site, ProtectYourMove.
gov.
"People think a good reputation equals expensive, but that's not true," said Laura McHolm, co-founder of
NorthStar Moving in Los Angeles. "You don't get a good reputation by overcharging people."
For interstate moves, a company's ProMover certification with the movers association is a good sign. The
organization in January 2009 started screening movers based on seven criteria. It kicked out some 220 of 3,100
members over the past two years because they didn't measure up, said spokesman John Bisney. See "Find a
ProMover" at Moving.org.
"The old rubric 'You get what you pay for' is true more often than not," Bisney said.
Look for two things: A full-service mover should visit your home in person, not give a quote over the phone or
online, and should provide a written estimate, experts say.
DECLUTTER: No matter what type of move you're making, taking less stuff is cheaper and less hassle. Set up a
staging area, perhaps in a garage, with various piles, such as throw out, recycle, donate and sell.
"If you really love those go-go boots from the 1960s but will never wear them again, take a picture of them and
get rid of them," McHolm said. For many items, use the rule of thumb, "If you haven't used it in a year, you
probably don't need it."
BE FLEXIBLE: Like airline fares, moving rates depend on when you book. The busiest time for movers, and
thus the most expensive time for consumers, is summer weekends near the 15th and 30th of the month.
If you have time flexibility, ask what rates would be for different days or seasons. If you have extreme
flexibility, ask about moving standby: waiting until the mover has extra space and needs to fill a truck.
SAVE ON BOXES: Buying new boxes from a moving company is the most expensive choice. Ask if you can buy
used boxes from your moving company. NorthStar, for example, gives customers 25 percent off used boxes and
then refunds 25 percent if they return boxes in usable condition.
Cheaper yet is finding free boxes, ideally from somebody who just moved. Ask your real estate agent to connect
you with other clients who recently moved. Or look on Craigslist.org. Specialty boxes, such as wardrobe boxes,
might be cheaper to purchase at a do-it-yourself moving store, such as U-Haul, than from your mover.
SAVE ON PACKING MATERIALS: If you're packing yourself, fill suitcases, laundry baskets and plastic
containers with unbreakable items. Use pillows, scarves and towels to wrap fragile belongings. And you might as
well empty your paper shredder into a box to add cushion.
MAIL BOOKS: If you have many books, pack them yourself and ship them at the postal media mail rate. It
might be cheaper than paying a mover. A 70-pound box would cost less than $30. You can't send anything with
advertisements, so magazines are out. Search USPS.com for "media mail."
CONSIDER CONSOLIDATION: For long-distance moves, ask about consolidating your stuff on a truck with
other people's. Most homeowners can't fill a full-size moving van. You might have to be flexible on delivery
dates and times, but consolidation can be cheaper. "Most times it's a huge price difference," McHolm said.
INSURE IT: Check your homeowner's or renter's insurance policy to determine whether it provides coverage for
your belongings while in transit. If not, you'll probably want more than the basic free valuation coverage a full-
service mover provides. The standard valuation is 60 cents per pound per item. That means breaking a 10-pound,
$1,000 stereo system would net you $6. You'll want full replacement-value insurance, which reimburses you
what it will cost to replace broken items. But don't necessarily buy that insurance from the moving company.
Moving insurance is likely cheaper from a third party, such as MovingInsurance.com, McHolm said.
Be aware that you probably cannot get insurance on boxes you packed yourself. A mover must pack them.
BE PREPARED: Plot out where furniture and boxes will go. The less time movers spend rearranging, the less
expensive it will be.
In urban areas, reserve a space or two in front of your new home for the moving truck by parking your own
vehicle there ahead of time. If the movers have to park too far away to unload, you could incur a "long carry"
surcharge, McHolm said.
STAKE YOUR CLAIM: If you're moving for a job, negotiate the best relocation package you can. Unreimbursed
expenses might be tax-deductible. For details, see Publication 521 Moving Expenses at IRS.gov.
TIP: Tipping each mover $3 to $5 per hour is customary, said Stephen Coady, marketing manager for Gentle
Giant Moving Co. in Somerville, Mass.
For in-depth information on choosing a mover, see the free, downloadable "Make a Smart Move" available at
Moving.org.
MOVING RIPOFFS:
—Furniture nabbing. A mover essentially holds your belongings hostage, demanding a higher payment to
release them.
—Lowballers. Beware of lowball price quote. They could end up costing you as the mover adds various surcharges.
—Instant quotes. Be wary of phone or Internet estimates. Get written, in-home estimates.
—Large down payment. Be suspicious of carriers seeking large deposits. They might take the money and run.
Legitimate movers require no deposit or a small "good faith" down payment.
Written By Gregory Karp
------------------------------------------------
July 5, 2010: After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax
Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies
only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The
legislation is designed to create a seamless extension. The new closing deadline for eligible transactions is now
September 30, 2010. There will be no gap between June 30 and the date the President signs the bill into law.
http://www.realtor.org/press_room/news_releases/2010/07/tax_flood_credits
----------------------------------------------
June 14, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010 Charlotte
Statistics for May have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Prices May 2010 $238,736 vs. May 2009 $223,470 (+7%)*
Average Sold Prices May 2010 $212,454 vs. May 2009 $199,243 (+7%)*
with Current Average Days on Market 116 days (6 days LESS than last month, 122 days)*
New listings May 2010 is 4,744 vs. May 2009 5,080 (new listings are down by 7%)*
*data comes from Carolina Multiple Listing Services, Inc. June 7, 2010
+Interest Rates have increased from a year ago: May 2010 4.79% vs. May 2009 4.91% (STILL a Great time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast June 7, 2010
--------------------------
June 4, 2010: Tips to Stay Cool This Summer
With the official start of summer just around the corner, DTE Energy is offering the following tips to help
customers save money and keep cool:
Around the house
--Close blinds, shades and curtains to keep summer heat out.
-- Keep the fireplace damper and doors tightly closed to prevent cooled air from escaping.
-- Run the dishwasher in the cooler part of the day when the lower temperature can better offset the heat and
humidity the appliance will produce.
Air conditioning
-- Set the air conditioner thermostat at the highest comfortable setting. When leaving home for more than five
hours, raise the thermostat five to 10 degrees. Raising the thermostat just a couple degrees can cut cooling costs
by as much as five percent.
-- Regular maintenance is important to operating air conditioners efficiently. Check filters at least once a
month. Dirty filters cause air conditioners to work harder and use more energy. Many filters can be removed,
washed and dried, and reinstalled. Check the owner's manual or contact the manufacturer for more information.
-- Keep air conditioning units free of obstructions, inside and out, so air can flow freely. Outdoor units should be
free of bushes, and leaf and grass debris. Indoors, move furniture and draperies to prevent blocking window
units, vents and air returns.
-- Position window air conditioners on the shaded side of the house, away from direct sunlight. Window units
generally are not designed to cool more than one room. Close the doors leading to uncooled parts of the house
for more efficient cooling.
-- In homes with central air conditioning, leave room doors and air registers open so the system can operate
effectively.
Fans
-- Make sure ceiling fan blades rotate clockwise in the summer months to draw cooler air up from the floor.
-- A window fan in an apartment or one-story home should be put in a window on the warmest side of the
structure; in a two-story home, put it in an upstairs window. Fans draw cooler air inside during the night and
circulate air during the day. Make sure draperies are secured away from the fan for better air circulation and
safety.
-- Prevent heat build-up in the attic by opening attic vents and making sure any lower vents are not blocked. A
cooler attic benefits the living area below. An exhaust fan or whole-house fan mounted in the attic will pull hot
air out of the attic and living areas and draw cooler air in.
-- Use an exhaust fan to blow hot air out of your kitchen while cooking. The savings in your cooling costs will far
outweigh the fan's electricity use.
----------------------------------------
May 28, 2010: Mortgage rates are at a all time low, Thanks for Europe's Debt Crisis. The current average rate
for a 30 year fixed loan is 4.87 percent, according to Bankrate.com. That's the lowest rate for the 30 years since
Bankrate started keeping track 25 years ago.
To read more, click here: http://www.cnbc.com/id/37315821
------------------------------
May 21, 2010: 7 Questions to Ask Before Buying a Condo
You've found your dream condo, and you're ready to relax among the mango trees and swaying date palms. Hold
everything. To keep from getting stuck with a lemon, you've got to do some homework. Here are the seven most
important questions you need to ask before buying a condo.
1. "What's the Beef?"
Take a look at the minutes of the condo association board meetings to see what the owners have been griping
about. If everyone was complaining about the faulty plumbing or the gardener's absence, you know that the
complex is having management difficulties. Even if there aren't any complaints, reading the minutes will reveal
the sorts of projects that are under way at the complex -- projects the seller may have neglected to mention.
2. "Who's Been Naughty and Who's Been Nice?"
Find out the delinquency rates of present owners. If people aren't paying their association dues on time, that is
either a sign of discontent or an indication that the association might be underfunded.
3. "How Much Is In the Repair Fund?"
Ask if the community has done a reserve-fund review in the past five years. Lester Giese, the author of The 99
Best Residential & Recreational Communities in America, recommends the following formula: If the complex is
one to 10 years old, the reserve fund should have 10% of the cost of replaceable items (roofs, roads, tennis
courts, etc.). Between 10 and 20 years old, the repair fund should be at 25% to 30%. At 20 years, that amount
should be 50% or above. Residents who brag that they don't pay much in maintenance may be in a complex that
either is not being kept up well or is living beyond its means.
4. "Can You Cover Me?"
If you look at nothing else, get a copy of the certificate of insurance, which is a summary of the association's
policy. First see if the replacement costs covered by the policy are an accurate estimate of the cost of rebuilding.
Then make sure that the policy has a building-ordinance clause, which means that the insurance will cover the
cost of bringing the building up to code if there is any rebuilding to be done. On older buildings, there may have
been many code upgrades since the time of construction. Finally, make sure that you understand exactly what
the association policy covers and what you are responsible for. The smart condo owner will insure his or her
personal belongings, along with any other items within the unit that are not covered by the association's policy.
If you have trouble understanding the insurance lingo, take the insurance certificate to an agent whom you
trust and who understands the state laws.
5. "Does the Association Present Any Legal Problems?"
Buying a single-family home without a lawyer is no big deal for many people. But with a condo, there's so much
more involved. Contact a local real estate lawyer and have him or her go over the bylaws of the association. Do
they make sense? Are they consistent with the state laws? Giese, the author, once found that the association
bylaws of a large garden-style condo complex had been lifted from the books of a high-rise condo, leaving
confused tenants with rules about shared hallway space and the correct use of garbage chutes. Benny Kass, a
Washington real estate attorney, recommends that you also have your lawyer screen the association at the local
courthouse, to see if any owners have filed suit against it.
6. "Is the Complex Renter-Friendly?"
If the renter population is over 10%, there should be clear rental policies, either listed in the bylaws or tacked
on as an amendment. Does the management company find renters for you? If so, do they get enough good
renters? Ask other tenants about their experience. In addition, ask to see the association's rental lease, and
have a real estate lawyer look it over. Keep one thing in mind, though: An association can change its bylaws to
prohibit or restrict renting at any time. The more owners who rent, the less chance that will happen.
7. "Am I My Community's Keeper?"
Watch out for a condo whose owners manage the place themselves. Although many are operated efficiently, self-
management can lead to more hassles for owners -- especially those who live thousands of miles away. If the
complex is professionally managed, check out the management company as thoroughly as you check out the
association. Ask other owners. Ask people in nearby buildings. And be sure to interview the day-to-day manager
directly. If you hook up with a bad manager, you can be sure of this: Your dream condo will keep you up at night.
------------------------------------
May 14, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010 Charlotte
Statistics for April have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Prices April 2010 $225,108 vs. April 2009 $228,550 (-2%)*
Average Sold Prices April 2010 $201,410 vs. April 2009 $201,352 (EVEN)*
with Current Average Days on Market 122 days (4 days MORE than last month, 118 days)*
New listings April 2010 is 5,624 vs. April 2009 5,050 (new listings are up by 11%)*
*data comes from Carolina Multiple Listing Services, Inc. May 7, 2010
+Interest Rates have increased from a year ago: April 2010 5.06% vs. April 2009 4.78% (STILL a Great time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast May 7, 2010
-------------------------------------
May 7, 2010: CNNMoney.com reports that April Jobs have had the best gain in the last 4 years.
There was an increase of 290,000 jobs in the month of April, which is suprisingly better than the revised 230,000
jobs added in March. It was the largest number of jobs added to the labor force since March 2006.
After nearly two years of job losses, the economy has now added jobs in five of the last six months. With upward
revisions for both March and February, there has been a gain of 573,000 jobs since the start of the year.
http://money.cnn.com/2010/05/07/news/economy/jobs_april/index.htm
-------------------------------------
April 30, 2010: Tax Credit not deterring Home Buyers
Home buyer tax credits expiring today and is unlikely to deter home purchasing activity as consumers grow
more confident, according to a survey released on Wednesday.
Among consumers shopping for homes, 65 percent said the end of the tax credits will have little or no effect on
their interest in purchasing a home, according to the survey, which was conducted by Prudential Real Estate and
Relocation Services, part of Prudential Financial. Click the link below to read more.
http://finance.yahoo.com/news/Tax-credit-end-not-deterring-rb-4219545540.html?
x=0&sec=topStories&pos=3&asset=&ccode
-----------------------------------
April 9, 2010: Nearly two-thirds of Americans think the time is right to buy a house, with a majority believing
prices will be the same or higher over the next year, according to a Fannie Mae survey released Tuesday.
Click here to read more:http://www.cnbc.com/id/36192494
--------------------------------------
March 26, 2010: Did you know that you can get help for FREE to prevent Foreclosure? Most people are
embarrassed about even talking about the possibility of Foreclosure but talking about it could help you prevent
it. Here are some very helpful websites that give you assistance FOR FREE! Please keep in mind in the state of
NC, it is illegal to charge someone for advice regarding Foreclosure.
www.makinghomeaffordable.gov
www.fightncforeclosure.org
www.nccob.org
www.hopenow.com
www.nchfa.com
www.unitefamilyservices.org
---------------------------
March 19, 2010: Keep our Libraries Open - YOU Can help! 12 of our area libraries are scheduled to close on
April 3rd. These libraries include many that you live near, including Morrison Regional, Myers Park, Scaleybark
and the Carmel branch libraries. Donate what you can, click www.cmlibrary.org/donatenow
News Release
Library Board passes motion to lay off 148, close 12 libraries
On Thursday, March 18, the Charlotte Mecklenburg Library Board of Trustees approved a plan to lay off 148
employees and close 12 library branches in order to absorb a $2 million reduction in funding from Mecklenburg
County.
The branches that will close under the plan are: Beatties Ford Road, Belmont Center, Carmel, Checkit Outlet,
Cornelius, Hickory Grove, Independence Regional, Mint Hill, Morrison Regional, Myers Park, Scaleybark, and
Sugar Creek.
It will take approximately two weeks to complete the closings, with the selected branches closing their doors at
the end of the business day on Saturday, April 3.
Prior to the board’s decision, several community members made appeals to save those libraries. Friends of the
Library Chair Harriet Smith was one of those citizens and she issued a challenge to the community to raise the
$2 million dollars, or at least a significant amount, in order to avoid lay-offs and library closings for this fiscal
year.
Contributions received by March 24, 2010 will help lessen the severity of immediate library service reductions,
and even after that date all contributions will continue to help us provide the best possible library services to the
more than 17,000 adults and children we serve each day.
Library Board of Trustees chair Robin Branstrom cautioned that she did not want to get library employees'
hopes up, however, she suggested that the termination notice letters to laid-off employees be changed to add the
phrase, “unless circumstances change.”
Library administration cautions that even if the funds are raised to save Charlotte Mecklenburg libraries
through June 30, there is no guarantee for fiscal year 2011. There is also no guarantee that employee positions
and those libraries that were set to be closed will be saved for this fiscal year (2010).
Library closing decisions were made based on the overall cost of library operations, usage levels, proximity to
other branches and library size.
Phone calls will be made to those 148 staff identified in the lay-off process, followed by official letters. The
library will use its Reduction in Force (RIF) policy to determine layoffs.
In addition to fewer locations, hours and staff, library customers will notice other budget impacts, including less
frequent building maintenance, more limited technology resources, and longer wait times for books and other
materials.
The Library Board of Trustees voted at their regular meeting on March 18 at 12 p.m. in the Francis Auditorium
after hearing comments from members of the public. County Manager Harry Jones met with the board prior to
the meeting at 11:30 a.m.
To keep the public aware of budget updates as they occur, the Library has created a special budget page on its
website. Go to www.cmlibrary.org, click on "About Us," and then "Budget" to stay informed.
Those interested in making a financial contribution can visit www.cmlibrary.org/donatenow.
Those wishing to volunteer or learn other ways to support the library can go to www.cmlibrary.org/support.
Decisions on how Mecklenburg County taxpayer dollars are allocated to Libraries and other County-funded
agencies are made by the Board of County Commissioners. Any citizen may contact their County Commissioner
by visiting www.charmeck.org
http://www.charlotteobserver.com/2010/03/19/1322969/library-patrons-try-to-save-12.html
---------------------------------------
March 12, 2010: Short sale BEWARE!! It is illegal for companies to charge up front fees for foreclosure
assistance services in the state of NC. Lately, it seems that several companies are popping up to "help"
homeowners or offering to negotiate your short sales for a fee. They aren't worth the money they charge and if
something goes wrong, you will and your Realtor will be the one who takes the fall. Save your money now and
work with a Licensed Real Estate Professional. Contact Jennifer Lew for more information, 704-591-5542.
----------------------
March 5, 2010: 8 tips for First-Time Home Buyers
"Home ownership remains a good investment and a big part of the American dream,” says Ethan Ewing of Bills.
com. “You may be able to save thousands on your piece of that dream by buying a house this year -- but you
must act quickly."
Here are some tips for first time home buyers....
1. Double-check your credit report. The mortgage industry meltdown means the best deals go to buyers with
spotless credit. People with damaged credit might not be able to get a home loan at all, or may face high interest
rates. "Before starting house-hunting, check your credit report to be sure it does not show any incorrect
information,” says Ewing says. “If it has an error, dispute it immediately and make copies of evidence regarding
the error to discuss with your mortgage lender.” Knowing your credit report information can make a huge
difference when you're buying a home.
2. Talk to mortgage lenders. Ask friends and relatives for references to reliable mortgage lenders. Be sure the
lender you choose has the appropriate state licenses. Before you buy a new house, check rates and offers from
several mortgage professionals. Credit scores do not decline if multiple similar credit report requests are
submitted within a close time period (usually a few weeks), so it pays to shop around.
3. Buy a home while house prices are still low. Home prices have increased slightly since the beginning of 2009,
but they are still about 13 percent lower than they were a year ago. That means now is an excellent time for first
time home buyers to invest in real estate.
4. Buy a new house when interest rates are good. Mortgage interest rates have dropped again this fall, to about 5
percent annually for a 30-year fixed-rate mortgage. Again, this means it's an excellent time for first time home
buyers to invest in property.
5. Make sure you have enough in savings. A down payment is essential today. Ideally, first time home buyers
will put down 20 percent of the purchase price. If not, ask the mortgage lender about options before buying a
new house.
6. Know the costs of home ownership. The principal and interest on a mortgage payment is only the beginning.
Escrow payments - money set aside by the mortgage holder to pay insurance and taxes - and private mortgage
insurance, if it is required, can add a few hundred dollars or more per month to a mortgage payment. In
addition, home owners must pay for repairs and maintenance. A rule of thumb is to budget 1 percent of the
home's purchase price per year for upkeep.
7. Be wary of "bargains." To make owning a home easier, remember that some bargains on houses today are
"fixer-uppers" or homes sold "as is" because of foreclosure. Invest in a home inspection (about $400) before
buying a new house. The inspection will highlight any faults in the home and help estimate the cost to remedy
those problems.
8. Be wary of "short sales." A short sale is a home sale where the owner must sell the home for less than is
owed on the current mortgage. Because the bank must approve any such sale, a "short-sale" home may have a
sales and negotiation process that is too lengthy to be completed before the tax-credit deadline. Additionally,
short sales are usually "as is," which may carry more risk than makes sense for many first-time buyers.
---------------------------
Feb 26, 2010: 7 Important Facts about Claiming the First-Time Homebuyer Tax Credit
If you purchased a home in 2009 or early 2010, you may be eligible to claim the First-Time Homebuyer Credit,
whether you are a first-time homebuyer or a long-time resident purchasing a new home.
Here are seven things the IRS wants you to know about claiming the credit:
1) You must buy or enter into a binding contract to buy -- a principal residence located in the United States on or
before April 30, 2010. If you enter into a binding contract by April 30, 2010, you must close on the home on or
before June 30, 2010.
2) To be considered a first-time homebuyer, you and your spouse -- if you are married -- must not have jointly or
separately owned another principal residence during the three years prior to the date of purchase.
3) To be considered a long-time resident homebuyer you and your spouse -- if you are married -- must have lived
in the same principal residence for any consecutive five-year period during the eight-year period that ended on
the date the new home is purchased. Additionally, your settlement date must be after November 6, 2009.
4) The maximum credit for a first-time homebuyer is $8,000. The maximum credit for a long-time resident
homebuyer is $6,500.
5) You must file a paper return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the
Credit with additional documents to verify the purchase. Therefore, if you claim the credit you will not be able to
file electronically.
6) New homebuyers must attach a copy of a properly executed settlement statement used to complete such
purchase. Buyers of a newly constructed home, where a settlement statement is not available, must attach a
copy of the dated certificate of occupancy. Mobile home purchasers who are unable to get a settlement statement
must attach a copy of the retail sales contract.
7) If you are a long-time resident claiming the credit, the IRS recommends that you also attach any
documentation covering the five-consecutive-year period, including Form 1098, Mortgage Interest Statement or
substitute mortgage interest statements, property tax records or homeowner's insurance records.
For more information about these rules including details about documentation and other eligibility requirements
visit IRS.gov/recovery.
P.S. If you are applying for the $8,000. first time homebuyers tax credit or the existing home credit you
shouldn't do your taxes online. TurboTax and online services do not have the proper Form to apply for the tax
credit.
----------------------------------
Feb. 12, 2010: Fantastic news!! The latest Market statistics from the Carolina Multiple Listing Service shows
that the average closed price was UP again in January, this time 6.1%. January is the third month in a row that
the average closed price has been up!
Below is a great article written found in the Charlotte Observer:
Housing market logging gains. Charlotte area home sales, prices up again
By Stella M. Hopkins
shopkins@charlotteobserver.com
Posted: Wednesday, Feb. 10, 2010
The Charlotte-area housing market continued posting gains in January, with home prices and sales now showing
several months of steady increases.
The average sales price last month was $200,592, up 6.1 percent from January 2009, according to results released
Wednesday by the Charlotte Regional Realtor Association. That’s the third consecutive month with a gain and
slightly stronger than the December increase, for transactions through the association’s Carolina Multiple
Listing Services.
The number of houses, townhouses and condos sold last month rose 8 percent from a year ago during the
deepest part of the slump. January marked the fourth month of sales gains and is particularly notable because it
is typically a slow month.
The number of pending contracts – deals signed but not yet closed – was about the same as a year ago. However,
pendings were up 25 percent from December, a sign of rising demand. Experts expect sales will strengthen
through the spring, in part because of several hefty tax credits for deals signed by April 30.
--------------------------------------
Feb 5, 2010: Thinking about Foreclosure and forgetting the mortgage you owe? Well you still may be on the
hook if there's a difference between what you owed on your mortgage and what the bank could sell it for at
auction. And these "deficiency judgments" are ticking time bombs that can explode years after you lose your
home.
Can they come after you?
Whether banks can and will pursue deficiency judgments depends on many factors, including what state the
borrower lives in and whether there's a second mortgage or other liens. But if borrowers ignore the possibility of
deficiencies, it could haunt them.
"Once they have a judgment, they can pursue you anywhere," said Richard Zaretsky, a board-certified real
estate attorney in West Palm Beach, Fla. "They can ask for financial records, have your wages garnished and, if
you fail to respond, a judge can put you in jail."
In the case of foreclosure, lenders can pursue deficiencies in more than 30 states, including Florida, New York
and Texas, according to the U.S. Foreclosure Network, an organization of mortgage law firms.
Click the link to read more... http://finance.yahoo.com/news/Mortgage-lenders-pursue-cnnm-3107909798.html?
x=0
-----------------------------------
January 29, 2010: Are the Markets telling us anything?
RATES ~ Interest rates, moved little, though it is important to note that the week included the usual pendulum
swing among investors from confidence in the recovery to worry. The 10-year Treasury note yield stood at
3.818% as the week began, but concerns inspired by the prior week’s disappointing employment data (with the
reported 85,000 jobs lost in December) weighed on investor confidence in the economy, and the 10-year T-note
yield edged down to 3.722% by the end of Tuesday. At the same time, investors appeared to be moving their
money from the stock market to both Treasury securities and corporate bonds, having seemingly lost a bit of
their appetite for risk (briefly: for a day).
The pendulum swings from optimism to pessimism nearly daily. It may be important that the markets focused
on the poorer earnings report rather than on the stronger report. Since both seemed significant, concentrating
on the poorer earnings report may suggest a growing mood of pessimism. Still the movements of stock market
indexes and interest rates seem to tell us, since they are relatively small, that it isn’t time yet to rely on the
markets to tell us what’s coming next. It’s time, instead, to stay very light on our feet and take advantage of
opportunities, like low interest rates, as they appear. And without much delay.
---------------------------------
January 22, 2010: FHA has announced several important changes coming this year. Some sooner than later.
• The up-front MIP will be increased from 1.75% to 2.25%. Will be released January 21st and will take
effect in the Spring.
• Borrowers are now required to have a minimum credit score of 580. Will be posted in February and will go
into effect early this Summer.
• Seller concessions are being reduced from 6% to 3%. Will be posted in February and will go into effect
early this Summer.
For details open the link below:
http://www.mortgagenewsdaily.com/01202010_fha_increases_fico_mip.as
-----------------------------------------
January 15, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2009 Charlotte
Statistics for December have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Prices December 2009 $239,062 vs. December 2008 $223,746 (+7%)*
Average Sold Prices December 2009 $211,705 vs. December 2008 $200,226 (+6%)*
with Current Average Days on Market 116.4 days (.3 days LESS than last month, 116.7 days)*
New listings December 2009 is 3,094 vs. December 2008 2,979(new listings are up by 4%)*
*data comes from Carolina Multiple Listing Services, Inc. January 11, 2010
+Interest Rates have increased from a year ago: December 2009 5.14% vs. December 2008 5.1% (STILL a
Great time to buy!)
+source: Freddie Mac, National Association of Realtors Forecast January 11, 2010
------------------------------------
January 11, 2009
Foreclosure, Short Sale and REO – What do these terms really mean?
I think we forget sometimes that not everyone is in the real estate business. We have seen terms pop up over
the last couple of years that we think we know, and some we might have never heard of. I thought I would take
a second and make sure we are all on the same page regarding the definitions of these terms. Our good friends
over at Wikipedia provided the definitions.
FORECLOSURE
Foreclosure is the legal and professional proceeding in which a mortgagee, or other lienholder, usually a lender,
obtains a court ordered termination of a mortgagor’s equitable right of redemption. Usually a lender obtains a
security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the
borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the
equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender
cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable
right of redemption. Other lienholders can also foreclose the owner’s right of redemption for other debts, such
as for overdue taxes, unpaid contractors’ bills or overdue HOA dues or assessments.
The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or
repossessing a parcel of real property (immovable property) after the owner has failed to comply with an
agreement between the lender and borrower called a “mortgage” or “deed of trust“. Commonly, the violation of
the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process
is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs,
and it is typically said that “the lender has foreclosed its mortgage or lien“. If the promissory note was made
with a recourse clause then if the sale does not bring enough to pay the existing balance of principal and fees the
mortgagee can file a claim for a deficiency judgment.
SHORT SALE
In real estate, a short sale is a sale of real estate in which the proceeds from the sale fall short of the balance
owed on a loan secured by the property sold.[1] In a short sale, the bank or mortgage lender agrees to discount a
loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done
through communication with a bank’s loss mitigation or workout department. The home owner/debtor sells the
mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to
the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have
the right to approve or disapprove of a proposed sale. Many Short Sales leave a deficiency balance for which the
Mortgagor / Borrower is still liable. In 99% of all cases it is not a settlement-in-full. A deficiency balance will
remain as a potential liability for the Mortgagor / Borrower. The bank’s opportunity of pursuit of a deficiency
judgment will vary from state to state.
REO (REAL ESTATE OWNED)
Real estate owned or REO is a class of property owned by a lender, typically a bank, after an unsuccessful sale at
a foreclosure auction.[1] A bank will typically set the opening bid at a foreclosure auction for at least the
outstanding loan amount. If there are no bidders that are interested, then the bank will legally repossess the
property. As soon as the bank repossesses the property, it is listed on their books as REO – Real Estate Owned –
and is categorized as an asset (non-performing).
As soon as a property goes into a distressed status (the borrower/home owner misses mortgage payments) the
bank will want to determine the amount of equity that the property has. A popular method to determine the
equity is to obtain a Broker Price Opinion BPO or order an appraisal. Based on the amount of equity that is
determined from the BPO, the bank will decide to try for a short sale or to allow it to go through the foreclosure
process. If the bank is able to sell the property through a short sale or at a foreclosure auction, then the
property will not become a REO property.
After repossession and the property becomes classified as REO, the bank will go through the process of trying to
sell the property on its own. It will remove some of the liens and other expenses on the home and try to resell it
to the public, either through future auctions or direct marketing through a real estate broker (REALTOR).
Generally speaking, bank REO properties are in poor shape in terms of repairs and maintenance; however, real
estate investors will often go after these properties as banks are not in the business of owning homes and so, in
some cases, the low price can more than compensate for the condition of the property.
Once a property is REO, the bank or lender will try to get rid of the property by either selling it directly
themselves or through an established broker. Many larger banks such as Bank of America and Wells Fargo
have REO/asset management departments that will field bids and offers, oversee upkeep and handle sales. The
majority of REO properties that are on the open market are listed in MLS by the broker/REALTOR that
performed the BPO.
--------------------------
December 11, 2009 : Many ask "How's the Real Estate Market?" Well if you would like to know, Charlotte
November Statistics have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Please see below:
Average List Prices November 2009 $216,507 vs. November 2008 $213,548 (+1%)*
Average Sold Prices November 2009 $195,244 vs. November 2008 $193,035 (+1%)*
with Current Average Days on Market 116.7 days (4.3 days MORE than last month, 112.4 days)*
New listings November 2009 is 3,614 vs. November 2008 3,978(new listings are down by -9%)*
*data comes from Carolina Multiple Listing Services, Inc. December 7, 2009
+Interest Rates have decreased drastically from a year ago: November 2009 4.78% vs. November 2008 5.1 (Great
time to buy!)
+source: Freddie Mac, National Association of Realtors Forecast December 7, 2009
-----------------------------------------------
December 4, 2009: Secretary Shaun Donovan of the U.S. Department of Housing and Urban Development met
with the House Committee of Financial Services to discuss certain reforms to FHA financing. Here are a few
highlights of what was discussed:
Setting credit score minimums
Increasing the minimum down payment
Decreasing the maximum seller contributions from 6% down to 3%
Increasing the UFMIP (Upfront Mortgage Insurance Premium) percentage
Holding lenders more accountable for defaults
The link to the full testimony is http://portal.hud.gov/portal/page/portal/HUD/press/testimonies/2009-12-02
------------------------------------------------------
November 30, 2009:
Mortgage bond prices rose last week pushing mortgage interest rates lower. The economic data continues to be
mixed. Personal income, outlays, and PCE inflation data were stronger than expected. Interest rates finished
the week improved by about 1/2 of a discount point.
The employment report will be the most important release this week. This is one of those weeks where there are
many economic releases classified as very important or important. The potential for market volatility is
increased when these types of reports are released. Be alert throughout the entire week.
=============================
November 16, 2009 : Many ask "How's the Real Estate Market?" Well if you would like to know, Charlotte
October Statistics have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Please see below:
Average List Prices October 2009 $218,050 vs. October 2008 $237,436 (-8%)*
Average Sold Prices October 2009 $196,204 vs. October 2008 $216,777 (-9%)*
with Current Average Days on Market 112.4 days (3.3 days LESS than last month, 115.7 days)*
New listings October 2009 is 4,863 vs. October 2008 4,682(new listings are up by 4%)*
*data comes from Carolina Multiple Listing Services, Inc. November 7, 2009
+Interest Rates have decreased drastically from a year ago: October 2009 5.03% vs. October 2008 6.46% (Great
time to buy!)
+source: Freddie Mac, National Association of Realtors Forecast November 7, 2009
===========================
November 6, 2009 HOMEBUYER TAX CREDIT EXTENDED!!
By Jim Abrams, Associated Press Writer
On 11:08 am EST, Friday November 6, 2009
WASHINGTON (AP) -- President Barack Obama is set to sign a $24 billion economic stimulus bill providing tax
incentives to prospective homebuyers and extending unemployment benefits to the longtime jobless who have
been left behind as the economy veers toward recovery. The White House signing ceremony Friday comes a day
after the House, displaying rare bipartisan agreement over the seriousness of the jobless situation, voted 403-12
for the measure. The Senate approved it unanimously on Wednesday.
The tax credits, added by the Senate, center on extending the popular $8,000 credit for first-time homebuyers
that was included in the stimulus package. The credit, which was to expire at the end of this month, will be
available through next June as long as the buyer signs a binding contract by the end of April.
The program is expanded to include a $6,500 credit for existing homeowners who buy a new place after living in
their current residence for at least five years.
The credit, said Democratic Rep. Shelley Berkley of Nevada, a state particularly hard hit by the recession, "will
allow more people to purchase a home in my district and help stop the continued downward spiral in housing
prices caused by the foreclosure crisis."
Prolonging the life of the homebuyer credit has been a priority of the real estate industry, which says it has been
instrumental in beginning to turn around a market that was a major cause of the economic downturn. About 1.4
million first-time homebuyers have qualified for the credit through August, and the National Association of
Realtors estimates that 350,000 of them would not have purchased their homes without the credit.
http://finance.yahoo.com/news/Obama-to-sign-homebuyer-apf-1073869353.html?x=0
--------------------------------------------
October 30, 2009 Clock is ticking...We haven't received confirmation about the extension of first time
Homebuyer the tax credit. So for now, the tax credit is still expiring on Nov 30th. So to have enough time to be
closed on a house by Nov. 30th, you have find your house NOW!!
That leaves only a handful of weekends to get you pre-approved by a mortgage lender and identify the right first
home for you. So you see we need to get started today to take advantage of this opportunity, call me today to
discuss in more detail, Jennifer Lew 704-591-5542.
Here is the fast, quick information you will need to see if you qualify for the $8,000 tax credit for first-time
home buyers from The American Recovery and Reinvestment Act of 2009.
You must be a first time home buyer, defined as not owning a home in the past 3 tax years.
Tax credit amount is 10% of the sales price of the home up to a maximum of $8,000.
There is NO price limit on the sales price of home.
Maximum income to receive FULL tax credit is $75,000 for a single person, the limit for married couples is
$150,000.
You can receive a PARTIAL tax credit for income levels up to $95,000 for a single person and $170,000 for
married couples.
There is no payback or penalty as long as you stay in home as your principal residence for 3 years.
You must CLOSE on your new home on or after January 1, 2009 or before December 1, 2009-NO EXCEPTIONS.
30 Days left!!
-----------------------------------------------
October 23, 2009:
Existing home sales rebound to 2-year high
By: Reuters | 23 Oct 2009 | 10:50 AM ET
WASHINGTON (Reuters) - Sales of previously owned U.S. homes surged to their highest level in more than two
years in September, a survey showed on Friday, providing further evidence the housing market and economy
were on the mend.
The National Association of Realtors said sales surged 9.4 percent to an annual rate of 5.57 million units, the
highest level since July 2007, from a downwardly revised 5.09 million units in August.
Analysts polled by Reuters had expected September sales to rise to a 5.35 million unit pace from the previously
reported 5.10 million units in August.
William Larkin, portfolio manager with Cabot Money Management in Boston, said home sales were bolstered by
a government program to give first-time buyers a tax credit.
"The existing home sales data is a good sign for the housing market. I would assume a lot of first-time buyers
have scrambled to get this $8,000 credit. That will be the part that is hard to define within the numbers," he said.
"It definitely looks like the stimulus that is going into housing is starting to form a bottom."
U.S. stock indexes briefly recouped losses on the data, while government bond prices were little moved.
But the housing market is gradually crawling out of a three-year recession, and analysts believe that in the third
quarter residential investment probably contributed to economic growth for the first time since the fourth
quarter of 2005.
Signs of recovery in the housing market, coupled with other fairly upbeat data, strongly suggest the economy
started growing again in the third quarter after four straight quarters of declining output.
Compared to September last year, existing home sales were up 9.2 percent.
Sales for both new and previously owned homes have boosted by a combination of a the popular $8,000
government tax credit for first-time buyers, low prices and mortgage rates.
But there are fears that the expiration of the tax credit at the end of November could hamper the recovery.
The Obama administration is still considering extending the program but is weighing that against efforts to bring
down the federal deficit, senior White House officials said on Wednesday.
"We are hopeful the tax credit will be extended and possibly expanded to more buyers ... because the rising sales
momentum needs to continue for a few additional quarters until we reach a point of self-sustaining recovery,"
said NAR chief economist Lawrence Yun
The national median home price fell 8.5 percent to $174,900 in September from a year-ago. That was the
smallest percentage decline in 13 months, the NAR said. Distressed properties made up 29 percent of sales last
month, with first-time buyers accounting for 31 percent.
The inventory of existing homes for sale in September dropped 7.5 percent to 3.63 million units. September's
sales pace left the supply of previously owned homes on the market at 7.8 months' worth, the lowest in two-and-
a-half months, from 9.3 months' worth in August.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
http://www.cnbc.com/id/33448854/for/cnbc/#
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October 16, 2009; So with the clock ticking on the 2009 Home Buyer Tax Credit (which expires at midnight on
November 30), how much time does it really take to close on a home? In this market, it can take 45 to 60 days
to close on a home. So working backwards from the November 30 deadline, you’ll want to have an accepted offer
no later than mid-October (NOW). That leaves only a handful of weekends to get you pre-approved by a
mortgage lender and identify the right first home for you. So you see we need to get started today to take
advantage of this opportunity, call me today to discuss in more detail, Jennifer Lew 704-591-5542.
Here is the fast, quick information you will need to see if you qualify for the $8,000 tax credit for first-time
home buyers from The American Recovery and Reinvestment Act of 2009.
You must be a first time home buyer, defined as not owning a home in the past 3 tax years.
Tax credit amount is 10% of the sales price of the home up to a maximum of $8,000.
There is NO price limit on the sales price of home.
Maximum income to receive FULL tax credit is $75,000 for a single person, the limit for married couples is
$150,000.
You can receive a PARTIAL tax credit for income levels up to $95,000 for a single person and $170,000 for
married couples.
There is no payback or penalty as long as you stay in home as your principal residence for 3 years.
You must CLOSE on your new home on or after January 1, 2009 or before December 1, 2009-NO EXCEPTIONS.
45 Days left!!
-------------------------
October 9, 2009 : Many ask "How's the Real Estate Market?" Well if you would like to know, Charlotte
September Statistics have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Please see below Charlotte Regional Realtor Association September 2009 Real Estate Statistics.
Average List Prices September 2009 $219,925 vs. September 2008 $232,717 (-5%)*
Average Sold Prices September 2009 $196,760 vs. September 2008 $214,927 (-8%)*
with Current Average Days on Market 115.7 days (2.9 days LESS than last month, 118.6 days)*
New listings September 2009 is 4,701 vs. September 2008 4,909(this is actually a good thing since we have a lot of
inventory right now carried from last year, so new listings are down by -4%)*
*data comes from Carolina Multiple Listing Services, Inc. October 7, 2009
+Interest Rates have decreased drastically from a year ago: September 2009 5.04% vs. September 2008 6.09%
(Great time to buy!)
+source: Freddie Mac, National Association of Realtors Forecast October 7, 2009
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October 2, 2009: The clock is ticking down for first time home buyers. You need to act NOW to make sure that
you don't miss out on the $8,000 from Uncle Sam.
Here is the fast, quick information you will need to see if you qualify for the $8,000 tax credit for first-time
home buyers from The American Recovery and Reinvestment Act of 2009.
You must be a first time home buyer, defined as not owning a home in the past 3 tax years.
Tax credit amount is 10% of the sales price of the home up to a maximum of $8,000.
There is NO price limit on the sales price of home.
Maximum income to receive FULL tax credit is $75,000 for a single person, the limit for married couples is
$150,000.
You can receive a PARTIAL tax credit for income levels up to $95,000 for a single person and $170,000 for
married couples.
There is no payback or penalty as long as you stay in home as your principal residence for 3 years.
You must CLOSE on your new home on or after January 1, 2009 or before December 1, 2009-NO EXCEPTIONS.
60 Days left!!
Call Jennifer Lew TODAY 704-591-5542 to find out how to take advantage of the First Time Home Buyer Tax
Credit!
-------------------------------------
September 25, 2009 - First-time Homebuyers - Your decision to buy a home is both a sound financial decision
and a commendable achievement. Below we have listed 12 things you must do to prepare.
1. Consider these important questions:
Where will you be in 5-10 years?
Do you have kids or plan to have them?
Does your job require you to move around a lot?
Do you have time to maintain a home and yard?
Do you want to live near work?
Do you want to live near shops, restaurants and nightlife?
How much living space do you need?
2. Use our mortgage calculators to get an idea of what your monthly mortgage payments would be if you bought
today. (http://www.jenniferlew.net/calculator.html) Don't over-extend yourself. Also consider additional
expenses that come with home ownership:
Insurance
Property Tax
Private Mortgage Insurance
Homeowner's association fees
Utilities (increase with square footage)
Maintenance
3. Find out what your total monthly housing cost would be, including taxes and homeowners insurance.
4. Find out how much you'll likely pay in closing costs. The upfront cost of settling on your home shouldn't be
overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and
prepaid items like homeowners insurance or homeowners' association fees.
5. Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no
more than 28% percent of their income on housing costs.
6. Talk to a Realtor, Jennifer Lew 704-591-5542, about the real estate market.
7. Remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your
investment can be labor-intensive and expensive. Think about things that could be in need of repair or
replacement, i.e., the roof, new appliances, etc.
PREPARE FOR THE HUNT!!!!
If the numbers in 1 through 7 make sense for you, taking a few steps at the beginning of the home buying
process can save you time, money and aggravation.
8. Examine your credit. Right now, blemished credit or the inability to make substantial down payment can put
the kibosh on your homeownership plans. That's why it pays to look at your creditworthiness early in the home-
buying process. Get your free annual credit report at annualcreditreport.com and comb through it for errors and
unresolved issues. If you find mistakes, contact the credit reporting bureau to make sure they are corrected.
It's also a good idea to get your FICO score, which will cost you a small fee.
9. Get your documents in a row. Collect pay stubs, bank account statements, W-2s, tax returns for the last two
years, statements from current loans and credit lines, and names and addresses of your landlords for the past
two years. Have them ready to show to the lender. This may seem like a lot, but in this age of tight credit, don't
be surprised if your lender needs a lot in the way of documentation.
10. Find a lender and get pre-approved. Getting pre-approved for a mortgage helps you bargain from a position of
strength when you are house hunting. Start by filling out a loan application so we can review your qualifications.
11. If at first you don't succeed, try, try ... the government? If you can't find a bank willing to lend to you -- and
in the current tight credit market, it's possible you won't -- consider getting an FHA loan. The Federal Housing
Administration has a program that insures the mortgages of many first-time homebuyers. As a result of this
guarantee, lenders who might otherwise feel queasy about your qualifications will be more inclined to lend to
you. As a bonus, the FHA only requires a 3.5 percent down payment from first-time homebuyers.
12. Finally, don't forget about the first-time homebuyer tax credit. Get your hands on Form 5405 ahead of time
and send it in with your tax return immediately after your home purchase to ensure you receive the $8,000
credit as soon as possible. This credit is set to expire November 30, 2009!
----------------------------------------------------------
September 11, 2009 : Many ask "How's the Real Estate Market?" Well if you would like to know, Charlotte
August Statistics have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Please see below Charlotte Regional Realtor Association August 2009 Real Estate Statistics.
Average List Prices August 2009 $234,504 vs. August 2008 $247,323 (-5%)*
Average Sold Prices August 2009 $209,245 vs. August 2008 $230,472 (-9%)*
with Current Average Days on Market 118.6 days (2.7 days MORE than last month, 115.9 days)*
New listings August 2009 is 4,953 vs. August 2008 5,558(this is actually a good thing since we have a lot of
inventory right now carried from last year, so new listings are down by -11%)*
*data comes from Carolina Multiple Listing Services, Inc. September 8, 2009
+Interest Rates have decreased drastically from a year ago: August 2009 5.14% vs. August 2008 6.40% (Great
time to buy!)
+source: Freddie Mac, National Association of Realtors Forecast September 8, 2009
----------------------------------------------------------
Sept 4, 2009 Celebrating First-time Homebuyers Tax credit! For the first 12 months ending in June 2008, first-
time buyers in Charlotte accounted for 37% of all sales, according to NAR's 2008 Profile of Home Buyers and
Sellers. We expect it to be a higher percentage as we get closer to the deadline of December 1, 2009.
A first time home buyer is defined as someone who has not owned a principle residence in the past three years.
Those three years are counted up to the date you take possession of the house you buy in 2009. This means that
even if you’ve owned a home in the past, you can still take advantage of the tax credit as long as you haven’t
purchased a primary residence since 2006.
The same goes for married tax payers - they must both be first time home buyers. For non-married joint
buyers, only one of them needs to be a first time home buyer, or someone who hasn’t owned a primary residence
in the past three years.
The main restriction is that the credit is only for those who buy a home as their primary residence. So investors
looking to buy a rental property would not qualify for the credit. However owning a vacation home or a rental
property already does not neccessarily disqualify you from taking advantage of the credit (as long as you haven’t
owned a primary residence in the past three years).
The tax credit is equal to 10% of the purchase price of the home, up to $8,000. The amount of the credit you
can qualify for is related to how much money you earn. Here’s how the credit is scaled:
Single home buyers earning 95K or less qualify. If you make 75K or less, you qualify for 100% of the $8000. If
you make halfway, 85K, you qualify for 50% or $4000. The credit phases out gradually between 75K and 95K of
income. For example, if you make halfway between the income limits, 85K, you qualify for up to half of the
credit.
The same rate applies for married couples and joint buyers whose incomes limits are doubled to $150,000 to
$170,000. Married couples or joint buyers whose incomes are less would receive the full $8000 credit. At an
income level of $160,000, halfway between 150 and 170, the buyers would receive half the credit – or $4,000.
And the credit phases out altogether at $170,000.
This credit represent a significant amount of money. One of the biggest points of difference for the new credit
from the one congress passed in July of 2008, is that the new credit does not have to be paid back.
In addition, it's refundable, which means that if you’ve paid all your taxes as you go with an automatic payroll
deduction, you would receive an $8,000 check from the IRS.
Qualifying home buyers will need to make their home purchase between January 1, 2009 and December 1, 2009.
And the home has to remain their principal residence for the following three years.
---------------------------------------------------
August 28, 2009: Would you like to replace those old appliances with new ones and get a tax break while doing
it? Well, this year and next year you will be able to do just that!
A tax credit for 30% of the cost of energy-efficient doors and windows, insulation, air conditioners, furnaces,
heat pumps and boilers, up to a lifetime cap of $1,500. This credit is available for 2009 and 2010.
That means if you spend $5,000 on new windows this year and claim a $1,500 tax credit on your 2009 tax return,
you won't be able to claim an additional credit in 2010.
This is a more generous credit than the one that was available in 2006 and 2007, which covered 10% of the costs,
up to a lifetime cap of $500. The old credits also contained individual caps, such as a $200 limit on new windows.
With the new credits, you can claim 30% of all your energy-efficient costs, up to the lifetime cap.
For windows, doors, insulation and other similar projects that tighten up the "shell" of your home, the credit is
limited to the cost of materials.
However, if you buy a new air conditioner, furnace, heat pump or boiler that meets the energy-efficient
guidelines, you can include the cost of installation in calculating the credit.
Only improvements to your primary residence qualify for the credits. Unlike other tax credits, there are no
income phase outs, In addition, taxpayers who are subject to the alternative minimum tax — a parallel tax
system that often affects people who pay high property taxes — will be able to claim the credits.
Starting in 2009, homeowners who install solar water heaters, geothermal heat pumps and wind energy systems
are eligible for a tax credit of up to 30% of the cost, with no caps. Previously, caps on these types of projects
ranged from $2,000 to $4,000. These tax credits are available through 2016, and both labor and materials qualify.
For more information about eligible energy-efficient home improvements, go to the website for the Alliance to
Save Energy, www.ase.org.
-----------------------------------------
August 21, 2009: Would you like $8000 back on your taxes this year?
There's been a lot of questions about the new tax credit. Who qualifies? How does it work? How long will it last?
Click the link below to learn more. In this special edition video, there is an in-depth look at the $8,000 tax
credit for first time home buyers.
http://www.kw.com/kw/2009TaxCredit.html
-----------------------------------------
August 14, 2009 July's Real Estate Statistics have just been released!
Charlotte Regional Realtor® Association reports on the residential real estate market in this region based on
Carolina Multiple Listing Services, Inc. Data.
The number of closings for July 2009 (2,223) rose 9.8 percent over last month when closings totaled 2,024.
The average sales price for July 2009 ($212,977) is down only 2.6 percent over last month ($218,728).
The average listing price of solds in July 2009 ($238,629) is also down slightly – 2.3 percent over last month’s list
price of $244,316.
Residential contracts reported in July 2009 (2,341) increased 8 percent over last month when contracts totaled
2,167.
New residential listings for July 2009 totaled 5,195.
The average days a property was on the market from the time it was listed until it closed (list to close) was 145.2,
which is two days faster than last month.
The average days a property was on the market (days on market), excluding the days the property was off the
market or pending, was 115.9, which is nearly the same as last month.
Donna Anderson, president of the association and Carolina Multiple Listing Services, Inc., says, “Nationally,
home sales have been up for the last four months and it’s reassuring to see that same trend here in our 10-
county service area. With inventories easing and pending contracts continuing to increase, we are beginning to
see positive indicators that the local market is moving toward stabilization.”
-----------------------------------------
August 7, 2009 - Home Burglaries on the Rise
In the current economy, there seems to be an increase in theft of property from businesses, automobiles and
homes.
Please be aware of your valuables and take special care to conceal them whether in your home, your office or
your car.
8 easy and inexpensive ways to prevent home theft:
1. Put a home security sign in your yard, even if you can't afford to actually purchase a system. Your home is
less likely to be targeted if a burglar thinks you are protected.
2. Keep your garage door closed! This is a common access point for burglars - occasionally even while the
homeowner is out in the yard!
3. Utilize your neighbors! If you are friendly with your neighbors, they are more likely to keep a watch out and
notify the police of suspicious activity.
4. Keep items such as jewelry and valuables outside the bedroom! Most burglars will search a bedroom for these
possessions first. Having a safe/vault in the home will also help to ensure your property stays safe. And don't
leave valuables in-sight in your vehicle.
5. Get rid of large bushes and areas where someone can plan a fast escape route! If your yard is relatively open,
a burglar may see that they don't have many options of getting away without being caught.
6. Lights! Lights! Lights! Deter burglars by installing motion detectors. If you are going out of town, you can
also install timers to turn lights on inside your home at night!
7. Turn the radio or TV on! Most burglaries occur during the day because they think no one is home. Trickery
is key!
8. Have a checklist before leaving your home! Make sure all doors and windows are locked. If you will be away
for more than a day, notify your local police department and ask them to stop by and do a check while you are
out of town. Stop your mail and newspapers and have a neighbor keep an eye out for package deliveries.
Click here for more information about Crime in Charlotte
--------------------------------------------
July 31, 2009 What's Involved in the Home Buying Process?
Not a first time home buyer? That's okay. Even veteran home buyers forget the particulars when pursuing the
purchase of a new home. You may need a refresher, or you may be a first-time home buyer who wants to know
the ropes. Either way, there are several items you'll want to be aware of even before you start looking for
another home.
Follow the steps below so that you don't skip a beat in the process. This will ensure you are getting the very best
deal possible on the purchase of your new home.
* Free credit report. Before you get started, order your free credit report from all three major credit reporting
bureaus. They are Equifax, Trans Union and Experian. You can get a free one from each at www.
annualcreditreport.com. By law, the credit bureaus are required to provide you with a free credit report every
twelve months. Your goal will be to make sure you have the highest possible credit score. A high credit score will
enable you to be approved for the lowest possible interest rate.
* Inaccuracies, negative info or inquiries. Comb through your credit reports for any information you perceive as
being inaccurate, negative information that is incorrect and inquiries that you did not approve. Send a letter to
each of the credit reporting bureaus with a copy of the credit reporting pages that apply, along with any support
documentation. Send a copy only, and keep the originals for your own files. The credit reporting bureaus have 30
days to respond.
* Ready, set, go! Once the credit reporting agencies make the updates and corrections, you are ready to move
forward.
* Home wish list. You'll want to identify everything that you want in a home. Include the geographic location,
school district or school, square footage, number of bedrooms/bathrooms/garages, style of home (ranch vs. multi-
level or others), hardwood floors, type of kitchen (eat-in vs. formal) and anything else you can think of. Include
amenities like a central vac, built-in microwave or heat pump. All this will allow you a basis to begin your house
hunting venture.
* Get pre-approved. Real Estate Agents will typically not help you look for a home without being pre-approved
for a home loan. Do yourself a favor in order to get the best rate possible by shopping around. If you request
interest rates from several lenders within a ten-day or less window, it usually does not negatively impact your
credit score. Check out the company's reputation. You can do a search on the FCC website at www.fcc.gov,
check with the Better Business Bureau and contact the Federal Banking Commission to see if you find any
negative information about the company. Make sure you get the interest rate in writing, along with ALL fees
prior to agreeing to proceed with the loan. Once you find a lender you think you can trust, get pre-approved for
your home loan.
* How much are you pre-approved for? Getting pre-approved for a home loan will tell you how much you are pre-
approved for and will give you a gauge as to how much you will want to invest in a new home. Decide how much
you will want to invest overall and how much your down payment will be.
* Contact Jennifer Lew! Call 704-591-5542 and sign the buyer's agreement.
* So many homes, so little time. Jennifer Lew can provide you with a list of homes that meet your criteria and
be willing to take you to shop around.
* Other offers? Once you decide to make an offer on a home, ask about whether they know the seller's
motivation - bankruptcy, estate sale, etc. Also, ask if there are any other offers, liens, easements, zoning
changes and neighborhood crime.
* Scrutinize the Seller's Disclosure. Make note of how old the following are: roof, central heat/air, electrical and
plumbing. Depending on the age and condition of each, these may be bargaining points in negotiations.
* Make an offer. At this point, you should have as much information as possible about the home prior to
inspections. You should be informed enough to make the first offer.
* Inspections, warranty, insurance, lead paint. Depending upon the inspections your lender will require, you'll
probably want to schedule a home inspection and termite inspection. Homeowner's insurance will be required.
* Be there. Be in attendance at all inspections.
* Negotiate. If you find anything that legitimately should be used in negotiations, then negotiate. Present a new
offer.
* Plan the move. Once your final offer is approved, you'll know the closing date. Prepare your family for the
move - e.g., boxes, take time off, and hire a moving company.
* Final walkthrough. When you do your final walkthrough, make sure to note anything that was not taken care
of. If there are repairs that were not completed as agreed upon, don't sign on the dotted until they are done.
* Closing. When you go to the closing, scrutinize your Declarations sheet to ensure that you are only paying for
what you agreed to pay for. If it looks good, give your John Hancock and close on your house.
* Happy home owning. This is a no-brainer. Time to move into that house and make it a home!
--------------------------------------------
July 24, 2009 :Wall Street Journal just released National Housing Data and it shows that there are figures all
over the map, i.e., some markets are doing better than others. For Charlotte, we were down and this has to do
with all the bank reorganizations and our increased unemployment levels. Click the link to read more.
In June, home sales were up sharply from the depressed year-earlier levels in Orlando, Minneapolis, Southern
California and the San Francisco Bay Area, according to reports from local Realtor groups and MDA DataQuick,
a research firm. But sales dropped 50% in Manhattan, according to Miller Samuel Inc., a New York-based
appraisal firm. Sales also declined in Long Island, N.Y., and Charlotte, N.C., among other areas.
Unemployment may be the most important factor in assessing a metro area's housing-market prospects, says
Mark Zandi, chief economist at Moody's Economy.com. "If people don't have jobs or fear losing their jobs ,then
buying homes is out of the question," he says.
http://finance.yahoo.com/real-estate/article/107398/home-sales-all-over-the-map.html?mod=realestate-sell
--------------------------------------------
July 17, 2009 : Possible increase in homeowners rates Homeowners across NC could face significant increases
in their homeowners' rates. The main cause of this is the NC Beach Plan is not properly funded. The state beach
plan has a possible shortfall of $6 billion from the impacts of a 1 in 100 year hurricane.
Some insurance companies have indicated as much as a 30% increase to their homeowner rates. Some
insurance companies have left the state and other companies are threatening to leave the state altogether.
The impact on all of us could mean higher rates.
A recent study showed that insurance rates could increase up to 200% for ALL North Carolina residents if
preventive measures aren’t taken to address the Beach Plan. To put this into perspective - if this shortfall were
covered by state funds, it would equal $1,555 for every taxpayer in North Carolina.
However, the state Legislature is considering House Bill 1305 to address the problem and move toward reform of
the Beach Plan.
Your voice can make a difference in the outcome of this debate. Please contact your lawmakers TODAY and
urge them to support House Bill 1305. Be sure to tell your elected officials that meaningful reform must:
• Ensure the Beach Plan has the financial resources to pay claims;
• Provide a strategy for the Beach Plan to minimize the financial impact of a large storm;
• Preserve competition and availability of homeowners insurance across the entire state.
Click here to email your state lawmakers on this issue TODAY - Ask them to support House Bill 1305! If the
link doesn’t work, here is the web address: http://www.fixthebeachplan.com/site/action/act-now
“The North Carolina Beach Plan remains a ticking time bomb until sufficient targeted reform is made,”
Insurance Commissioner Wayne Goodwin.
--------------------------------------------
July 10, 2009 : Many ask "How's the Real Estate Market?" Well if you would like to know, Charlotte June
Statistics have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news. Please see
below Charlotte Regional Realtor Association June 2009 Real Estate Statistics.
Average List Prices June 2009 $244,316 vs. June 2008 $248,044 (-2%)* we are improving!
Average Sold Prices June 2009 $218,728 vs. June 2008 $233,670 (-7%)*
with Current Average Days on Market 116 days (2.30 days MORE than last month, 113.7 days)*
New listings June 2009 is 4,551 vs. June 2008 5,874 (this is actually a good thing since we have a lot of inventory
right now carried from last year, so new listings are down by -23%)*
*data comes from Carolina Multiple Listing Services, Inc. July 7, 2009
+Interest Rates have decreased drastically from a year ago: June 2009 5.42% vs. June 2008 6.45% (Great time
to buy!)
+source: Freddie Mac, National Association of Realtors Forecast July 7, 2009
--------------------------------------------
July 2, 2009 Buyers- what you need to know when making a contract offer
A offer can be broken down into 3 parts: price, terms and conditions. A great article from Realty Times
written by David Failk gives great insight when writing an offer....
Be it the real estate market in 2009 or any other real estate market for that matter, the structure of a
real estate purchase contract offer can be the difference in it being accepted or rejected.
No, the offering price is not the only factor in negotiating a contract to purchase a home.
Regardless of the number of pages in the sales contract, a contract offer can be broken down into 3
separate parts which can be important to the seller: Price, Terms and Conditions.
Each has to be satisfactory in order to obtain seller acceptance. In some situations, full price offers are
not acceptable due to the buyer's terms and conditions in the contract offer. In other instances, contracts
get accepted and signed even though the offer was much lower in price than other competing offers, but
was more favorable for the seller in terms and conditions.
What then is the secret in preparing and submitting a contract offer to buy real estate? This is where the
value of an experienced REALTOR and Buyer's Agent is with providing assistance in preparing and
structuring the contract offer in a manner that does not create questions or concerns for the seller and
their listing agent when it is presented to them.
There is more to purchasing a home than just looking at houses, whether the home is in Iselin or Colonia,
New Jersey, in Middlesex County or any other state for that matter.
The first step toward purchasing a home is obtaining Mortgage Pre-Approval from a reputable
Mortgage Lender (Mortgage Pre-Approval Versus Mortgage Pre-Qualification), and be sure a copy is
included with the contract offer. Why? The first question to be asked by the seller and listing agent at a
contract presentation will be "Does the buyer have Mortgage Pre-Approval? And this is where the
benefit of a Mortgage Pre-Approval letter provides advantages over a standard Pre-Qualification letter.
Secondly, there is no cardinal rule that there must be some fixed amount that a seller will negotiate from
their asking price. Home buyers need to obtain factual sales information about the market area, and
section of Town, they are considering buying in before submitting an offer. While it is very likely that
sale prices have declined in the past few years, they have not dropped equally in all Towns and in all
neighborhood locations.
Remember Economics 101 from Grammar School: "What's true of the whole may not be true of the
parts." That is what I am referring to here. Real estate values are local, and various factors influence
market value such as buyer demand, amount of homes for sale, mortgage rates, local economic
conditions and so on and so on. As important, similar design and size homes may differ in value due to
condition and improvements.
In preparing a contract offer, it is important that a buyer obtain a Market Analysis for the property
being considered. A report like this can be prepared by the buyer's agent and it should contain
information comparing similar properties which are active on the market for sale, homes which expired
and did not sell in the past six months, under contract sales and closed sales in the past six months. This
information should also provide the asking price history and days on market before sold. With a report
like this, a buyer can then have a better understanding of the real estate market and be better prepared
when submitting a contract offer.
It is highly recommended that buyers obtain a blank contract of sale and addendums early in the home
searching process. Contracts can be intimidating to many buyers. It would be much better to review the
contract documents in advance of making a contract offer. Making a contract offer is an important
decision. Being properly prepared is an important aspect of making a successful contract offer.
Thirdly, buyers should be completely aware of their personal finances and the total costs of purchasing a
home. Buying a home involves down payment, expenses occurred during the purchase, such as mortgage
application fee, inspection fees, and closing costs. It is important for buyers to obtain the estimates
related to transaction expenses and closings costs. When a buyer is not properly prepared for expenses
like these, they could have an affect on exactly how much a buyer has for the down payment which then
could affect how much is needed in a mortgage to complete the purchase.
Buyers should be educated and informed when making an offer to buy a home.
Surprises are for birthdays, not buying a home!
--------------------------------------------
June 26, 2009 Mortgage Rates on a Roller Coaster
We have seen mortgage rates all across the board, i.e., a year ago we were in the mid 6's and now in the 5's.
Read the short, but interesting article from today's Wall Street Journal.
After spiking to six-month highs a couple of weeks ago, mortgage rates fell again last week only to rise again
this week.
Interest on 30-year fixed mortgages settled at an average of 5.42 percent this week, reports Freddie Mac, up
from 5.38 percent in the previous week but lower than the prevailing rate of 6.45 percent a year ago.
Five-year, hybrid adjustable-rate mortgages also bumped up a couple of notches to 4.99 percent, but 15-year
fixed loans and one-year ARMs moved in the opposite direction. The former slipped to 4.87 percent from 4.89
percent, while the latter fell to 4.93 percent from 4.95 percent.
Source: Wall Street Journal (06/26/09)
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June 18, 2009 Senator Howard Coble from Greensboro, has introduced legislation that would “extend the home
buyer tax credit through 2010, open it to all home buyers and eliminate income-qualifying limits.” Mr. Coble
said that the “economy thrives when the real estate market thrives.” Senator also stated, "Realtors, home
builders and mortgage brokers have all seen more business in recent months, in part, because the tax credit is
spurring some would-be buyers to jump into the housing market."
Very encouraging article and hasn't been approved yet, but good to hear our State Representatives are
interested in continuing the momentum we have in the housing market!
Click the link to read more
http://www.news-recordcom/content/2009/06/11/article/coble_seeks_to_extend_home_buying_tax_credit
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June 12, 2009 : Many ask "How's the Real Estate Market?" Well if you would like to know, Charlotte May
Statistics have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news. Please see
below Charlotte Regional Realtor Association May 2009 Real Estate Statistics.
Average List Prices May 2009 $223,470 vs. May 2008 $237,884 (-6%)*
Average Sold Prices May 2009 $199,243 vs. May 2008 $223,946 (-11%)*
with Current Average Days on Market 113.7 days (LESS 3.50 days than last month, 117.2 days)*
New listings May 2009 is 5,080 vs. May 2008 6,388 (this is actually a good thing since we have a lot of inventory
right now carried from last year, so new listings are down by -20%)*
*data comes from Carolina Multiple Listing Services, Inc. June 9, 2009
+Interest Rates have decreased drastically from a year ago: May 2009 4.91% vs. May 2008 6.08% (Great time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast June 9, 2009
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June 4, 2009 Unfortunately, The $8,000 Fast Cash for down payment assistance for First-time Home
buyers is available towards the purchase of a FHA insured home IN OTHER STATES. THIS HAS
NOT PASSED IN NC OR SC YET. PLEASE CONTACT YOUR NC/SC GOVERNMENT TO
PARTICIPATE IN THIS BENEFIT.
PLEASE READ HOW HUD has announced that by making this change it should help stabilize the nation's
housing market by stimulating home sales across the country. Home buyers using FHA-approved lenders can
apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs,
which can help achieve a lower interest rate. To read the FHA's new mortgagee letter, visit HUD's website.
Please click on HUD's link to read more:
http://www.hud.gov/news/release.cfm?content=pr09-072.cfm
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May 29, 2009 Some good news to report!! Forbes.com has ranked Charlotte #3 in the Top 5 Cities Americans are
relocating! What great news since all other news has been about unemployment, tight credit, and the bad
economy. Want to read more? Click the link below:
http://realestate.msn.com/article.aspx?cp-documentid=19873357>1=35000
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May 22, 2009 $8,000 Fast cash for First-time Homebuyers. HUD plans to tweak the tax credit so it can use it as
down- payment assistance. Read the article below, great to know what HUD is working on, it could help the
market get the jolt it needs!
By Les Christie CNNMoney.com staff writer
Last Updated: May 19, 2009: 12:45 PM ET
NEW YORK (CNNMoney.com) -- Home prices are cheap. Affordability is at a record high. And the market is
littered with distressed properties looking for a buyer.
But there is one big obstacle for many first-time house hunters looking to take advantage of the market: cash
for down payments. The typical first-time buyer has only saved enough to cover 4% of the purchase price,
according to the National Association of Realtors.
As part of the stimulus package, Congress created a refundable first-time homebuyers tax credit in hopes of
helping on-the-fence buyers to take the home-purchase plunge. But buyers couldn't collect the $8,000 credit
until tax time, rather than at closing time - when it's needed.
Now the U.S. Department of Housing and Urban Development is planning to change that. The agency is working
on a plan that will allow Federal Housing Authority-approved lenders to provide buyers with the tax credit cash
up front.
"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so
that the cash can be used as a down payment," said Shaun Donovan, HUD secretary, in a speech last Tuesday
before the National Association of Realtors.
States first
Donovan did not reveal many details, but the plan could be modeled after programs in Colorado, Missouri, New
Jersey, Pennsylvania, Tennessee and Washington. To quickly infuse cash into their housing markets, these
states created "bridge loans" that allow buyers to borrow against the $8,000 credit and then repay it with their
tax refunds.
The first state to launch such a plan was Missouri, which rolled out its Missouri Housing Development
Commission Tax Credit Advance Loan program on January 14 - a month before Congress approved the stimulus
package. Since then, Missouri has approved applications by more than 300 borrowers and closed on 128 of them.
Lamar Cherry and his wife, Chrishanna, used the program to augment their down payment when they bought
their home in Kansas City.
The couple purchased a four-bedroom, three-bath split-level home for $150,000, putting about 6% down. Much of
that $9,000 came from the loan program, which they tapped so they wouldn't have to drain their reserves.
"We had money saved up that we were going to use for the down payment," said Cherry. "Now we can use some
of that to buy some things we need for the house."
At closing, the Cherrys, like all buyers in the program, signed for their first mortgage, plus a second mortgage
issued by the state. The second note is good for 6% of the price of the home, up to $6,750; there is a $350 set-up
fee, but no interest is charged if the debt is repaid by June 2010.
In Missouri, borrowers can only access $6,750 of the $8,000 credit for down payments. "We wanted them to have
a cushion below that $8,000 in case other tax liabilities show up," said Greg Spurgeon, the single-family
homeownership administrator for the Missouri Housing Development Commission.
If borrowers don't pay off the note, it becomes a 10-year fixed-rate mortgage with an interest rate one-half
percentage point above that of their first mortgages. For example, borrowers paying 6% on their first mortgages
would be charged 6.5% on the second.
So far, Spurgeon said, a significant proportion of participating homebuyers have repaid their loans. He expects
most of the others to do the same before the deadline.
Cherry has claimed the federal tax credit on his 2008 taxes, but he hasn't gotten his refund yet. He definitely
intends to repay the loan before the 2010 deadline because, he said, not doing so would add about $75 a month to
his house payments.
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May 8, 2009 Many ask, "How's the Real Estate Market?" Well if you would like to know, Charlotte April
Statistics have just been released. Contact Jennifer Lew for more Charlotte Real Estate news. Please see below
Charlotte Regional Realtor Association April 2009 Real Estate Statistics.
Average List Prices April 2009 $228,500 vs. April 2008 $235,127 (-3%)*
Average Sold Prices April 2009 $201,352 vs. April 2008 $221,497 (-9%)*
with Current Average Days on Market 117.2 days (3 more days than last month, 114 days)*
New listings April 2009 is 5,050 vs. April 2008 6,583 (this is actually a good thing since we have a lot of inventory
right now carried from last year, so new listings are down by -23%)*
*data comes from Carolina Multiple Listing Services, Inc. May 7, 2009
+Interest Rates have decreased drastically from a year ago: April 2009 4.78% vs. April 2008 6.03% (Great time
to buy!)
+source: Freddie Mac, National Association of Realtors Forecast May 7, 2009
--------------------------------------------
May 1, 2009, 5 tips on buying a Foreclosed Home from CNN Money.com and Money Magazine http://money.cnn.
com/2009/04/30/real_estate/buying_foreclosures.moneymag/index.htm?postversion=2009050106
Sure, there are great real estate deals to be had, if you know what you're doing.
By Amanda Gengler, Money magazine writer
May 1, 2009: 6:17 AM ET
1. Finding one has become easier
You don't need to show up at courthouse auctions or comb through legal filings. These days many banks sell
foreclosed homes through real estate agents. So call Jennifer Lew at 704-591-5542 if you are interested in
finding a Foreclosure.
2. It's best to buy from a bank
If you buy a foreclosed home at an auction before the bank repossesses it, you'll have to pay in cash, and you
usually cannot inspect the property. You may also later discover that there are liens against it.
When a bank takes back a home, however, it will clear any outstanding liens. Plus, when you buy a bank-owned
property, you can inspect it beforehand, and you can finance the purchase with a mortgage. Leave your suitcase
full of cash at home.
3. Bring in a contractor before you buy
Many foreclosed homes have been abandoned, some even vandalized, and they often require major repairs.
"One mistake a lot of people make is underestimating how much work it needs and the cost," says Rick Sharga
of RealtyTrac.
To avoid getting stuck with a surprise bill, ask a contractor to give you an estimate of how much the restoration
will cost and how long it will take. Many will do so for free in hopes of winning your business.
4. Bid low
Banks aren't necessarily selling foreclosures at fire-sale prices; some are listed at market value, says Gene
Hacker, a broker in Orange County, Calif. So be prepared to haggle. The bigger the inventory of foreclosed
homes the bank has and the longer the property has sat, the greater your chances of nabbing a great deal, says
Chris Matty of ForeclosurePoint.com.
Set your initial offer about 20% below market price - or more if your area has a lot of foreclosures.
5. Be prepared to wait
While some lenders are getting back to bidders within 36 hours, others are dealing with an enormous backlog
that can hold up their response for as long as three months. While you wait, someone can trump you with a
higher offer.
To boost your chances at scoring a home you love, have multiple properties in mind, and get your financing pre-
approved before you bid. Even if the lender says it has another offer, follow up every week - these deals can
often fall through.
*****************************
April 21, 2009 No longer is a bigger home better. We all want to live smarter and that means living smaller.
See below how to downsize and do more with less.
Here are 10 tips to help you cope with your smaller space:
1. Paint color: Open-plan rooms should have a single paint color to make them look larger.
2. Window treatments: Avoid heavy, elaborate curtains. Keep the window coverings close to the color of the
walls. Good choices to make a small room appear larger are plain linen or sheer panels.
3. Flooring: Avoid using too many area rugs that break up the space in homes with open plans. Leave all the
floors bare except for one rug in the living room to anchor the conversation area.
4. Unclutter: Take everything off the floor that’s not furniture. This means removing sports equipment and
stacks of newspapers and magazines.
5. Seating: Add additional seating with armless chairs or put matching ottomans on casters under the coffee
table.
6. Storage: Put trunks or baskets under tables to add storage.
7. Beds: Forget the footboard to make your bed look as if it takes up less space in the room.
8. Extra chairs: Place a pair of extra chairs for dining in the hall flanking a chest.
9. Lighting: Recessed and track lighting hug the ceiling and can make any space look more expansive. Avoid
chandeliers and ceiling fans.
10. Walls: Avoid hanging too much art on the walls. Instead, rotate your art from storage and leave one wall
bare in each room to allow the eye to rest.
By the numbers:
-89% of home builders are building lower-priced homes.
-88% of home builders are building smaller homes.
-58% of affluent Baby Boomers are likely or somewhat likely to move to a smaller home within 10 to 15 years.
-52% of brokers said the desire to downsize was cited by empty-nester clients as why they are moving.
Article taken from RIS Media: The Leader in Real Estate Information Systems http://rismedia.com/2009-04-
19/doing-more-with-less-downsizing-on-the-upswing/
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April 10, 2009 Charlotte Regional Realtor Association just released March 2009 Real Estate Statistics.
Average List Prices March 2009 $216,135 vs. March 2008 $233,882 (-8%)
Average Sold Prices March 2009 $191,433 vs. March 2008 $220,620 (-13%)
with current average Days on Market 114 days
New listings March 2009 is 5,223 vs. March 2008 6,746 (this is actually a good thing since we have a lot of
inventory right now carried from last year, so new listings are down by -23%)
Interest Rates have decreased drastically from a year ago: March 2009 4.85% vs. March 2008 5.85% (Great time
to buy!)
****************************
Great article from CNBC regarding US Economy Could Recover Much Sooner Than Expected
Topics:Economic Data | Interest Rates | Inflation | Ben Bernanke | Employment | Consumers | Federal Reserve |
Federal Budget (U.S.) | Economy (Global) | Economy (U.S.)By: Albert Bozzo, Senior Features Editor | 09 Apr 2009
| 11:55 AM ET Text Size
You've heard all the gloom and doom about this recession. Now here's some good news: the economic recovery
could happen much sooner—and be much stronger—than anyone thought possible.
Suddenly, a small but growing group of private-sector economists is disputing the idea that the recession will
drag on for months and that the rebound will be as weak as those following the the 1991 and 2001 downturns.
“Too many people’s idea of recession have been formed by the last two recessions,” says Robert Brusca of Fact
& Opinion-based Economics, referring to the 1991 and 2001 periods, which were both short and shallow. "I think
that's mistaken.” http://www.cnbc.com/id/30111906
______________________________________________
April 1, 2009 New home sales rebounded last month which was unexpected and was taken as a positive note!
Today’s reports, according to the Case-Shiller index which gauges home prices across the country, indicate that
home prices slid more than expected compared to last year, but most of those areas had such a huge growth rate
as well that just was not normal and healthy…so it just means that overall, the gains have been erased. There
are two ways of looking at this though…and it can be very exciting to think about what one can BUY at these
prices…AND combine that with today’s rates! This is a time of amazing opportunities!
Below is an excerpt from an article on CNBC that is good info to when comparing buying to renting:
Owning Costs Less
“’You can now own a home in so many areas of the country for less than it costs to rent,’ said Mollie
Carmichael, senior vice president at John Burns Real Estate Consulting in Irvine, California.
Out of the 76 metropolitan area markets across the United States tracked by the company, a whopping 50
percent show that a person can buy a house for less than renting when considering the after-tax cost of
homeownership, she said. “
New home prices were a big part of the downturn as many builders have cut…and cut…to reduce inventory.
Lennar, the second-largest U.S. homebuilder reported a wider quarterly loss as it scrambled to sell off its
inventory of homes in this current market which continues to take its toll on builders. There are deals out
there, but today’s deal could be a nightmare if the discounts continue to deepen.
Changes on the financing side to be aware of:
1-FHA cash out refinances used to be allowed up to 95%, but effective tomorrow, that all changes to 85%. This
is in response to the delinquency of those loans at the higher limits and mirrors more the FNMA
guidelines…even though they may get cut further on cash out refinances.
2-PMI companies have tightened as well. I have a loan that we got a clean FNMA automated approval on at 45%
total debt ratio, but we can’t get PMI on it because the max debt ratio on the remaining PMI companies caps at
41%...REGARDLESS of the DU findings. All the more reason to be prequalified up front to make sure you are
looking to buy in the right price range.
______________________________________________
March 27, 2009, Stocks retreat after the rally Wall Street pulls back after a three-week advance that sent the
major gauges up more than 20%. By Alexandra Twin, CNNMoney.com senior writer Last Updated: : 1:55 PM ET
NEW YORK (CNNMoney.com) -- Stocks slipped Friday as investors took a step back after a nearly three-week
long advance that has propelled the major gauges off of multi-year lows. The Dow Jones industrial average
(INDU) fell 180 points, or 2.3%, with about 2 hours left in the session. The S&P 500 (SPX) index lost 19 points,
or 2.3%. The Nasdaq composite (COMP) lost 41 points, or 2.6%. Stocks had rallied Thursday, extending the
nearly three-week old rally but Wall Street pled exhaustion Friday morning. All three major gauges have rallied
more than 20% in just three weeks. While the run could have another 10% to go, it's likely to peter out after
that, said Dean Barber, president at Barber Financial Group. "I think there is momentum here in the short run,
but this is the classic bear market rally and investors need to be careful not to fall into the classic bear-market
trap," Barber said. He said that the advance has been based on hope that the recession will soon end because a
lot of money has been thrown at the financial sector and the economy. However, fundamentally, the economy
remains in bad shape, as do the state of corporate profits. Financial and technology shares, which led the
advance on Thursday, led the retreat on Friday. But declines were broad based and 25 of 30 Dow stocks fell.
President Obama is meeting Friday with executives from JPMorgan Chase (JPM, Fortune 500), Citigroup (C,
Fortune 500) and the nation's other largest banks to discuss the financial crisis. Rapid rally: Since falling to
more than 12-year lows on March 9, the Dow had gained 21% and the S&P 500 had gained 23% as of Thursday's
close. Also on March 9, the Nasdaq touched a more than six-year low. Since then, it has gained 25%. But year-to-
date, only the Nasdaq has closed in positive territory, while the Dow and S&P 500 remain below early-February
levels. Better-than-forecast economic reports on housing and durable goods orders this week have added to
hopes that the economy is closer to turning around. Investors have also responded well to the latest plans from
the government to stabilize the financial system. On Thursday, Treasury Secretary Tim Geithner outlined a
huge overhaul of the regulatory system. On Monday, he detailed plans to purge bank balance sheets of up to $1
trillion in bad debt that is limiting lending. Economic news: Personal income fell 0.2% in February after rising
0.2% in January. Economists surveyed by Briefing.com thought it would fall 0.1%. Personal spending rose 0.2%
in February after rising 1% in January. Economists thought it would rise 0.2%. The University of Michigan
consumer sentiment index rose to 57.3 in March from 56.3 in February, versus economists' forecasts for a
reading of 56.8. Company news: Google (GOOG, Fortune 500) said late Thursday that it was cutting just under
200 sales and marketing positions worldwide. It is the second round of layoffs in Google history. General Motors
(GM, Fortune 500) shares gained on published reports that the government could extend the automaker's
restructuring deadline, giving it more time to gain concessions from unions and qualify for more taxpayer help.
The Wall Street Journal said that the government could extend the March 31 deadline by 30 days. On Thursday,
GM said that 12% of its U.S. workforce has taken its latest buyout offer. However, the company is still looking
to work with the union to alter retiree health care benefits, among other things. Market breadth was negative.
On the New York Stock Exchange, losers beat winners three to one on volume of 700 million shares. On the
Nasdaq, decliners topped advancers three to one on volume of 1.21 billion shares. Bonds: Treasury prices fell,
raising the yield on the benchmark 10-year note to 2.76% from 2.73% Thursday. Treasury prices and yields
move in opposite directions. Lending rates declined. The 3-month Libor rate fell to 1.22% from 1.23% Thursday,
according to Bloomberg.com. The overnight Libor rate fell to 0.28% from 0.29%. Libor is a bank-to-bank
lending rate. Other markets: In global trading, Asian markets mostly ended higher and European markets
tumbled in afternoon trading. In currency trading, the dollar gained against the euro and fell against the yen. U.
S. light crude oil for May delivery fell $2.44 to $51.90 a barrel on the New York Mercantile Exchange. COMEX
gold for May delivery fell $14.90 to $926 an ounce.
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On March 11, 2009, The Dangers of mixing Banking and Commerce: Banking Conglomerates Permanently
Barred from Real Estate Activities President Obama signed into law the FY2009 Omnibus Appropriations Act
that permanently prohibits banks from entering the real estate brokerage and management businesses.
Why should we care? If banks had been allowed to engage in real estate brokerage, it would have created anti-
competitive and anti-consumer concentrations of power within the financial services sector, which would have
ultimately increased costs for homebuyers. http://www.realtor.org/banks_and_commerce.nsf
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March 6th, EXCELLENT news for the Charlotte/Gastonia/Concord area as the new limit for FHA in our market
is now $303,750.
More updates on rates if you are still are holding out for the 4.5% range and, while there is a possibility of
getting there on a purchase loan even today, it is reserved for 20% down loans with an excellent credit score
customer and the customer will have to pay a point or so. Here is more on that and the link for backup.
Even borrowers with decent credit aren't immune to higher fees and mortgage costs. In general, to get the
low rates that make the headlines, borrowers often also are paying more points, or prepaid interest, to bring the
mortgage rate down. http://www.chicagotribune.com/business/chi-tue-t6-mortgage-fees-0303mar03%2C0%
2C4080670.story
"Making Home Affordable", from the Obama administration was unveiled and here are the basic points from it.
NOTE: Buyers who are holding out for lower rates, and those who are holding out to refinance at a lower rate,
should not hold their breath. Of course, it’s always their choice, but I’m afraid we’ll have a bunch of people
lying around either unconscious or blue in the face as the recent plan does mention making lower rates
available, but only for the select few that qualify…and it is geared more towards those who meet the following
characteristics:
*Mortgages for single-family properties that are worth more than $729,750 are excluded. Lenders could reduce a
borrower's interest rate to as low as 2 percent for five years. Rates would then rise to about 5 percent until the
mortgage is repaid.
*The Obama administration's program has two parts: one to work with lenders to modify the loan terms for up
to 4 million homeowners, the second to refinance up to 5 million homeowners into more affordable fixed-rate
loans.
*For the modification program, borrowers who are eligible will have to provide their most recent tax return and
two pay stubs, as well as an "affidavit of financial hardship" to qualify for the loan modification program, which
runs through 2012.
For more on this to pass on to your buyers who may call for help on their current mortgage: http://www.cnbc.
com/id/29511703
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Friday, Feb. 27th Forbes names Charlotte #3 market in Nation, click link to read more
http://realestate.msn.com/article.aspx?cp-documentid=18080758>1=35000
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Friday, Feb. 20th Stimulus Plan First-Time Homebuyer Tax Credit
A Special Update from MBSQuoteline
The Stimulus Plan was signed into law by President Obama on Feb. 17th. It contains a new tax credit for
first-time homebuyers. Essentially, first-time homebuyers within certain income limits who purchase a
home in 2009 before December 1, 2009 will receive a tax credit of up to $8,000. The program is similar
to the $7,500 tax credit which applied to home purchases made in 2008 after April 9. A comparison of the
two credit programs is outlined below.
While the Stimulus Plan was still being debated, the Senate version originally included a $15,000 tax
credit for all homebuyers. To lower the cost of the Stimulus Plan, the final version of the Plan contained
this smaller tax credit, and this tax credit is applicable only to first-time homebuyers.
To qualify as a first-time home buyer as defined in the programs, the purchaser (and the purchaser’s
spouse) may not have owned a home in the three years prior to the purchase date of the home. Single
family homes qualify for the program. The home must be the primary residence.
Both tax credits are subject to the same adjusted gross income limitations (full credit for AGI less than
$75,000 single/$150,000 joint, phased out for AGI up to $95,000 single/ $170,000 joint).
The amount for either credit is the lesser of 10% of the home purchase price or $7,500 or $8,000, as
applicable.
While a purchaser still owns the home, the $7,500 credit must be repaid in equal payments over a period
of 15 years, starting with the 2010 tax filing.
The $8,000 credit will not need to be repaid. Again, the $7,500 credit needs to be repaid, while the $8,000
credit does not!
Upon sale of the home, any portion of the $7,500 credit not yet repaid is due in full. No portion of the
$8,000 credit is due upon sale of the home, if the home is owned for more than three years. If the home is
sold within the first three years, the full amount of the credit is due upon sale.
The $7,500 credit was not available to any purchaser utilizing state/local revenue bond money to help
finance the home purchase. There is no such restriction on the $8,000 credit.
Under both the $7,500 and the $8,000 programs, the credit will be claimed on the purchaser's income
taxes. Any amount in excess of taxes owed will be refunded to the purchaser.
Additional information about the tax credit can be found on the websites of the National Association of
Realtors (www.realtor.org) and the National Association of Home Builders (www.nahb.org).
Commitment and support from the Treasury for the mortgage giants, FNMA and FHLMC, to "ensure
the strength and security of the mortgage market and to help maintain mortgage affordability,” In other
words, mortgage financing will be available and I continue to get comments from clients who believe the
required down payment is 20% across the board which is far from the truth.
Remember: A low down payment of 3.5% is allowed with FHA and that can be gifted 100% from family
members, can be from bonuses, etc. or available through the NC Bond program for 100% loans, in
essence. VA loans are excellent options for 100% financing. 5% down with PMI, which MAY be tax
deductible, is still available as well. Money is not as tight for mortgages as most would have you think! .
Refinancing will be more available and not tied to the loan to value and may be receiving lower
interest rates.
Common sense and conservative values were stressed by President Obama in his speech unveiling
the plan and that, long term, may be one of the most valuable lessons we all learn from this era!
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Five reasons to buy a home this year
Affordability returns to housing, and buyers have loads of negotiating power
By Amy Hoak, MarketWatch
Last update: 12:15 a.m. EST Feb. 6, 2009
Comments: 173
CHICAGO (MarketWatch) -- People are afraid to buy a home in times like these, with the economy tanking and
home prices continuing to fall. But if you're brave enough to stray from the herd, you might be in for the home-
buying opportunity of a lifetime.
Ask for price reductions, improvements, closing costs -- whatever -- and the seller, desperately trying to get a
contract, is very likely to work with you, said Jay Papasan, one of the authors of the book "Your First Home."
When the market starts improving, your negotiating power starts to diminish, he added.
"People can get a lot of what they need and almost all of what they want today," Papasan said. "Once a few
people get off the fence, there's safety in numbers and you lose your leverage."
If you're qualified to buy a home now, the purchase makes sense for your situation and you're prepared to live
in that home for at least five years, there are five reasons why you may be headed for a great deal:
1. Affordability is better than ever
According to the National Association of Realtors' housing affordability index, homes were more affordable in
December than at any other point since the group started the index in 1970. The affordability index is a measure
of the relationship between home prices, mortgage interest rates and family income.
John and Julie Chilman, for example, recently have been able to stretch their dollars in the Las Vegas area. The
listing price for the five-bedroom home they're buying was $265,000; they offered $250,000.
"Our Realtor was like 'Yeah, pipe dream. Like they're going to take that,'" John Chilman said. "And all they
did was counter $255,000... and they're paying all closing costs." The home had lingered on the market, and was
listed for $310,000 just six months ago, he said.
In Las Vegas, prices have fallen 50.7% from their peak and are now where they were in the second quarter of
2002, according to data from Clear Capital, a real estate valuation and data provider for banks and investment
firms.
A report from Moody's Economy.com, released this week, predicted that house prices will stabilize by the end of
this year, even though the Case-Shiller house price index will fall another 11% from the fourth quarter of 2008.
By the end of the real-estate downturn, prices will have fallen by double digits, from peak to trough, in almost
62% of the nation's 381 metro areas, according to the report. In 10% of the areas, declines will be more than
30%.
Not all markets have experienced huge drops, however, so it's wise to take a look at how far prices have fallen in
your area. The Office of Federal Housing Enterprise Oversight's Web site has a house price calculator that can
help. Visit the calculator.
2. You have a large inventory to choose from
In many places it is taking months to sell a home, creating loads of inventory -- from new homes to existing
homes to foreclosures. There was a 12.9-month supply of inventory in December given that month's sales pace,
according to NAR.
A large selection gives buyers more choices and drives down prices. And home sellers have gotten the picture.
It's fair to say that home sellers have become "increasingly desperate," Papasan said. "People who have had for-
sale signs in the yard for six months are starting to become in tune with the reality of the situation," he said.
Buyers can take advantage.
But if you put off a purchase until inventory shrinks substantially, you might not get as good a price, said Eddie
Fadel, author of the book "Don't Rent, Buy!" And be forewarned: It's nearly impossible to time the exact
bottom of the housing market and even if you do there's no guarantee you'll make a killing.
"You buy for quality of life... don't buy on speculation," said Duane Andrews, CEO of Clear Capital. "I wouldn't
buy a home expecting the housing market to rebound quickly in the next 10 years," he said, adding that he
expects moderate gains in values when the turnaround does happen.
Historically, real estate appreciates about 5% a year over the long term, said Nancy Flint-Budde, a Salem, N.Y.-
based certified financial planner. But as the country crawls out of a recession, many markets probably won't see
huge home-price gains any time soon.
3. Builders are offering big discounts
Home builders are getting even more aggressive with their pricing. In fact, Fadel recommends looking at
completed new homes first because builders are offering such steep discounts. Plus, you'd have a warranty not
only on the home itself, but also on the home's appliances, he said.
"[Builders] want to save their credit, save their brand, save their reputation and clear out inventory," he said.
"They can go buy cheap land today with that cash."
His advice: Walk in with a preapproval for a mortgage, make an offer, then walk away without making a deal if
you have to. Chances are, a builder will call back and reconsider that offer rather than let a potential buyer get
away. Read more on the outlook for home builders in the spring sales season.
4. Mortgage rates are historically low
It's not just the price of the home that will affect affordability; mortgage terms will also affect your monthly
payments. These days, rates are very attractive for conforming loans, those that can be purchased by mortgage
agencies Fannie Mae and Freddie Mac. (The current limit is $417,000, although that can rise as high as $625,500
in high-cost markets.)
Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have
stayed relatively near that low for weeks. This week, the 30-year fixed-rate mortgage averaged 5.25%, according
to Freddie Mac's weekly mortgage survey. See full story.
More mortgage help could also be on the way. Last week, President Obama said that his new economic plan,
which Treasury Secretary Timothy Geithner is set to unveil Monday, would help lower the cost of mortgages for
home buyers, although he did not give specifics.
But low rates don't mean lenders are handing out mortgages easily. You'll need good credit, a substantial down
payment and a willingness to document your income in order to qualify for those great rates, if you can qualify
at all.
5. You can get a federal tax credit
There's currently a federal credit of up to $8,000 for home buyers who haven't owned a home in at least three
years. The credit needs to be paid back, although the repayment feature is removed in the economic stimulus
plan that passed in the House of Representatives.
That extra cash will come in handy: The average first-time home buyer spends about $6,000 in the first six
months of owning a home, said Flint-Budde.
The National Home Builders Association is pushing for more help for home buyers, including an even bigger tax
credit -- the Senate in its version of the economic stimulus bill is proposing a $15,000 credit. And both NAHB and
the National Association of Realtors want the incentive to help all buyers, not only those who are becoming
homeowners for the first time.
Waiting for further federal developments, however, might sap a buyer's negotiating power, as more people get
back into the market and competition returns, Fadel said.
"The more Washington gives, demand will increase," he said.
Closings were up 9.2%
Pending sales were up 27.6%
The average closed price was down at -.1%
The median closed price was up 2.4%
Percent of original list price received by Sellers 90.2%
Inventory is down (good for Sellers) 23.6% from a year ago
21.2% of closed sales were distressed, compared with 35.9% a year ago (this number will go back up as banks
start releasing foreclosures to the market again)
Feb 3, 2012: It's been a mild winter throughout most of the country so far. 70 degree weather will make you
think of Spring and Spring cleaning. Since Punxsutawney Phil saw his shadow, that means we have 6 more
weeks of winter. Here are 10 "must do's" to have a warm, cozy and safe winter
1. Check attic insulation. A foot of blown-in or batt insulation (R-38) in the attic reduces heat transfer from
heated interior space to the great outdoors. This is a do-it-yourself job. If your attic is not insulated, blow in or
roll out 12 inches of loose or batt insulation. If the amount of insulation is less than 12 inches, simply roll out
unfaced fiberglass batts over the existing insulation to create a heavier thermal blanket. This is a case where
more is better. Make sure to leave soffit vents unobstructed.
2. Install or replace weatherstripping, if necessary. Check the rubber threshold gasket at the bottom of exterior
doors and replace if worn or torn. Next, make sure the top and sides of the door are weatherstripped and fit
tightly. If there are gaps, replace the weatherstripping.
3. Check exterior doors and windows for gaps. Modern windows are probably OK, but older windows may need
some help. To reduce air leakage, casement windows might need some weatherstripping at the joint where fixed
and movable panes meet. Old double-hung wood windows are notorious air leakers. Place pieces of narrow self-
adhesive rubber weatherstripping on the bottom sides and at the joint where the top and bottom panes meet.
4. Check the outside of doors and windows for voids, and caulk any gaps you see.
5. Change the filter in the heater. In older furnaces, filters should be changed monthly. Change or service
newer, more efficient filters according to the manufacturer's instructions.
6. Replace your old thermostat with a new programmable model. This allows you to regulate the heater to warm
the house when you're there and to reduce the temperature when you are at work or asleep.
7. Have your heater inspected by a licensed heating and air conditioning contractor. An inspection ensures that
the heater is operating safely and efficiently. In many cases an inspection can alert you as to whether the unit is
at the end of its life. It's nice to have the option to replace an old heater before it quits and becomes an
emergency on a cold January day.
8. Check the carbon monoxide (CO) detector. If you don't have one, get one. Carbon monoxide is an odorless
and colorless gas that kills. An operating CO detector can prevent a tragedy. While you're at it, check the
smoke detectors to ensure they're operable.
9. Clean gutters and downspouts so fallen leaves won't clog them. Make sure that downspouts discharge away
from the foundation and that soil is graded away from the foundation and at least 6 inches below the siding.
10. Clean the fireplace of ashes; visually check the chimney for loose or missing mortar. Also consider having
the chimney professionally inspected and swept by a licensed and bonded chimney sweep.
By Bill and Kevin Burnett Inman News®
Jan. 26, 2012: Thinking about putting your house on the market this Spring?? Cleaning chore checklist will
help you take care of important seasonal chores and welcome Spring to an organized home:
•Schedule a family garage clean-out. Create efficient storage for sporting goods, camping equipment,
recreational vehicles, and garden tools. You'll have the jump on summer fun!
•Inspect, clean and repair outdoor furniture.
•Tour house exterior and grounds. Make a list of any needed seasonal maintenance.
•Inspect the roof for winter damage: leaks, missing or broken shingles or tiles. Arrange for any needed repairs
early; roofing contractors can be hard to find during summer's construction season.
•Use a sunny Saturday to scrape, prime and paint peeling spots on trim or woodwork. You'll protect wood against
Summer's heat and moisture--and prevent a more difficult paint job come fall.
•Clear away any remaining dead foliage and weeds from beds and lawn. New growth will be protected from
damage or disease.
•Begin major landscaping projects. Spring's the time to put in shrubs and trees, but check with your local
extension office for specific planting recommendations for your area.
The Inside Story:
•Changing seasons, changing clothes. Hold a family wardrobe check as you bring out warm-weather clothing.
Sort winter clothing for discards and donations before you store.
•Hold a garage sale! Declutter house and garage to turn trash into cash. Build your yard sale savvy here.
•Pick a weekend and enlist the family for Spring cleaning. Many hands make light work! Reward the team with
dinner at a pizza parlor.
•Wash windows inside and out.
•While at the window area, check drapes and window treatments. Vacuum any dust; send dirtier drapes to the
cleaners.
•Move furniture and vacuum beneath it.
•Arrange for a spring inspection of cooling systems. Don't wait for the first hot day! Air conditioning firms will
give better service when they're not busy.
•When the weather warms, deactivate heat system humidifiers. Check the system manual for instructions on
how to power down for the summer.
•Drain sediment from hot water heaters.
Jan. 19, 2012: Winter months most popular time for House Fires
December, January, and February are the leading months for home fires as well as home fire deaths in the US.
These winter house fires are most commonly caused by misuse or improper maintenance of heating equipment
and holiday decorations. In 2009, there was a total of $1.1 billion in property damage caused by fires that
involved home heating equipment. From 2003 – 2007, there was a total of $482.9 million in home damage caused
by Christmas trees, candles, and other holiday decorations.
There is an increased number of fires in the winter months because people are using more heating units, have
flammable decorations next to heating sources, and are not taking the proper steps to ensure holiday
decorations and heating equipment are in good working order. Proper maintenance should be performed on all
equipment that was dormant during the summer and fall seasons. This includes holiday lights, electric blankets,
space heaters, and chimneys.
We know that in the hurry of Thanksgiving and Christmas it is easy to forget to check holiday decorations and
heating equipment before using them, but it might just save your life. Winter house fires can be avoided when
the proper steps are taken. Follow the winter safety tips outlined below to reduce the risks of fire damage to
your home.
1.Have your chimney, furnace, etc inspected each year.
2.Do not burn wrapping paper or Christmas tree limbs in the fireplace. They burn very quickly, throwing off
sparks and possibly causing the creosote that has previously accumulated in the chimney to ignite.
3.Always use a screen in front of the fireplace. Also consider using a fire-resistant carpet or mat (made for
fireplaces) on the floor in front of the fireplace.
4.Use your space heaters wisely:
a. Clear a 3-foot area around space heaters.
b. Unplug space heater when not in use.
c. Purchase a space heater that will automatically shut off if it falls.
d. Plug electric portable space heaters directly into wall sockets, not into an extension cord.
5.Do not put comforters, bedspreads, or anything else on top of an electric blanket while it is turned on. Do not
tuck your electric blanket into your mattress.
6.Review your fire escape plan with your family.
7.Be sure every level of your home has a working smoke alarm. Inspect and clean dust from the covers of your
smoke and carbon monoxide alarms each month.
8.Avoid using lighted candles altogether. Try safer alternatives such as battery-powered candles. Never leave a
burning candle unattended and don’t let candles burn completely.
9.Do not connect more than 3 strands of holiday lights together and check to make sure there are no tears in
the coating or exposed wires.
10.Water a real tree to keep it fresh, green, and full of needles. Dried-out trees can easily catch fire. If
purchasing an artificial tree, find one that is fire resistant.
RIS Media Real Estate Advisors January 19, 2012
Jan. 9, 2012: 12 tips to manage credit card debt in 2012
It's the new year, and what better way to ring it in than to add a shiny new credit card to your wallet? Here are
12 tips for obtaining a credit card and not misusing it.
1. Know where you stand
What credit card interest rate and credit limit you qualify for depends on your credit history. But many people
have no idea how good or bad their credit is. To keep the surprises to a minimum, pull your credit report from
the three credit reporting agencies.
The report will show your account history, including factors that can hurt your credit such as habitually late
payments, short credit history or high utilization, when you've used a large amount of your available credit. The
more negatives you have, the more likely you won't get the best interest rate.
2. Improve your chances
If you can wait to apply for a new credit card, spend at least six months getting your credit affairs in order. Use
your credit report as a guide.
First, make sure there is no inaccurate information on your credit report. If there is, you will need to contact
the credit reporting agency and the company that maintains the account to get the record straight.
Next, look at the key factors hurting your credit. If late payments are a problem, then commit to staying
current on all bills. If your utilization rate is too high, commit money from your monthly budget to reduce
outstanding debt as much as possible.
3. What benefits do you want?
Your credit is in order, and you want a credit card. Now what? Figure out what type of benefits you want.
If you are a frequent traveler, consider cards that are cobranded with hotels or airlines and allow you to rack up
rewards points that can be used to buy flights or hotel stays. For road warriors, there are several different gas
rewards cards available. And for those interested in earning cash from their purchases, issuers have unleashed
several types of cash-back rewards cards.
Other perks to consider: cards with low or no balance transfer fees, cards with low penalty or late fees and
specialty cards such as secured, retail or prepaid cards.
4. Compare similar cards
Consider which credit cards charge an annual fee. Will a card's rewards cover its annual fee? Would fewer perks
be acceptable if the card has no fee?
Also look at the annual percentage rate, or APR. Is there a special low introductory rate that shoots up after six
months? Is the rate variable or fixed?
The card with the lowest APR is not necessarily the best for you. Take into account penalty and late fees,
especially if you've been known to miss payments. And look at other fees, such as balance transfer fees or
foreign transaction fees, which could make the card less appealing.
Also, read the restrictions on rewards programs. For frequent-flier cards, there may be blackout dates. Cash-
back cards may have a limit on how much you can earn each month.
5. Other credit card perks
Credit cards come with benefits other than their rewards programs, so it pays to read the fine print. Here are a
few benefits you should consider:
•Roadside assistance: Some cards will come to your rescue if you're stranded on a snowy highway with a flat tire.
But there may be geographical limitations or time-of-day limits.
•Purchase protection: Some cards come with return protection in case a retailer won't take back a recent
purchase. Others offer extended warranties on top of a manufacturer's warranty or protection against theft or
accidental damage.
•Travel assistance: Some credit cards will coordinate medical care or legal aid if you are traveling abroad. Others
will cover airline fees, such as checked-bag fees, or offer access to airport lounges. Car rental, travel accident
and trip-cancellation insurance are other popular perks.
6. Denied? You'll find out why
New federal rules that went into effect in July last year require creditors to disclose the credit score used to
make a lending decision, along with information related to the score if a consumer is denied or given
unfavorable terms.
The notice will provide the credit score, the range of possible credit scores under the model, up to five key
factors that hurt your score, the date the credit score was created and the credit reporting agency that provided
it.
Armed with that information, consumers can figure out how best to raise their credit score by tackling the key
reasons the score was lower. Then, try applying again in six months.
7. Cards for people with spotty or no credit
If your credit is blemished but you need a credit card now, you have two choices. Apply for a secured credit card,
or become an authorized user on someone else's card.
A secured credit card requires a deposit, usually from $300 to $500, as collateral to activate it. The deposit is put
into a savings account, certificate of deposit or a money market account. Sometimes, after a year of good
payment history, the issuer may turn the secured card into a regular credit card.
Another option is to piggyback on someone else's credit card such as a parent or spouse. They add you as an
authorized user without the need to qualify you first. The bonus: Most credit bureaus will include only good
payment history on an authorized user's report, which will help lift his credit score.
8. Leave a good track record
It may be appealing to just pay the minimum every month because it's less money out of your pocket. But with
interest rates between 13 percent and 15 percent, a minimum payment will only balloon what you owe. So the
rule of thumb is to charge only what you can comfortably pay off each month.
Second point: Always pay on time. Set up automatic payments if you're a forgetful person. Consistently paying
on time is one of the best ways to boost your credit score, which can translate into lower interest rates.
And third: mind your credit limit. One of the factors used to calculate a credit score is how much credit is used
versus how much is available to you. It's called the utilization rate. The lower the rate, the better your score.
9. Credit card laws are your friends
There are two big acts that cover credit card practices and billing: the Credit Accountability, Responsibility and
Disclosure Act, or CARD Act, and the Fair Credit Billing Act.
The CARD Act eliminated many common, yet questionable, credit card practices such as retroactive rate
increases, double-cycle billing and applying payment to lower-rate balances first. It also required more advance
notice for rate hikes and placed caps on fees that issuers can charge.
The Fair Credit Billing Act outlines your rights as a cardholder when you have a billing dispute with your
creditor. For example, it limits a cardholder's liability for unauthorized charges to $50.
10. Be virtual friends with your card
Many credit card issuers are offering special promotions on Facebook, Twitter, Foursquare and other social
media sites to increase cardholder loyalty. Other issuers are using these forums to address customer service
complaints or determine charitable giving.
So if you haven't already, friend or fan your credit card issuer on Facebook, and follow your card on Twitter.
11. Keep tabs on your credit card
A credit card can become a threat to your financial security if it lands in the wrong hands. Here are some tips to
help keep your credit card safe.
•Monitor your credit card accounts regularly online, so you can spot unusual transactions. Set up mobile alerts if
your bank offers them.
•Don't use public computers to make credit card purchases, access your financial accounts or check the email
account where the bank sends information. Public computers are vulnerable to hackers.
•Avoid unfamiliar online vendors. Stick with established ones.
•Don't give your credit card information to an unsolicited phone caller or emailer. Always contact your bank
using the customer service number on the back of your card.
•If you notice suspicious transactions, call the local police and your bank. Also, alert the three credit reporting
agencies about possible fraud on your account.
12. When trouble strikes
Sometimes, you may have difficulty paying your credit card bill. If you foresee your financial situation slipping,
here are a few ways to make good on your credit card.
First, contact your creditor and explain your financial situation. In many cases, the creditor will set up a
temporary hardship payment plan until you get back on your feet. Never stop paying and never avoid collection
calls. Your debt can follow you all the way to court.
Also, consider seeking help from a reputable nonprofit counseling service. You can locate one through the
National Foundation for Credit Counseling. A counselor can help you rejigger your household budget and set up
payment plans with creditors.
By Janna Herron • Bankrate.com
December 22, 2011 As the Holiday Season is upon us, we find ourselves reflecting on the past year and on those
who have helped to shape our business in a most significant way. We value our relationship with you and look
forward to working with you in the year to come. We wish you a very happy Holiday Season and a New Year
filled with peace and prosperity.
December 16, 2011: Top 11 Reasons You Should List During the Holidays
11. By Selling now, you may have an opportunity to be a non-contingent Buyer during the Spring, when many
more houses are on the market for less money! This will allow you to sell high and buy low!
10. You can sell now for more money and then look for a delayed closing or extended occupancy until early next
year!
9. Even though your house will be on the market, you still have the option to restrict showings during the six or
seven days around the holidays!
8. January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until
Spring to buy, you need to be on the market during the Holidays to capture that market.
7. Some people must buy before the end of the year for tax reasons!
6. Buyers have more time to look for a home during the holidays than they do during a working week!
5. Buyers are more emotional during the Holidays, so they are more likely to pay your price!
4. Houses show better when shown during the Holidays!
3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular
home: Less demand means less money for you!
2. Serious Buyers have fewer houses to choose from during the holidays and less competition means more
money for you!
1. People who look for homes during the Holidays are more serious Buyers!
December 1, 2011: Testing the market?
A Seller may think that they are just testing the market with a high list price, assuming Buyers will at least
make an offer but Buyers may assume they are unreasonable and move on. Your goal should be a fair price -
something that's reasonable given the price of other homes in your area. Also, pricing your house competitively
will allow the most exposure possible since a house has most interest when it is newly placed on the market.
This is a very sensitive subject for Sellers so it must be handled before the house is placed on the market.
November 22, 2011: Happy Thanksgiving!
Gratitude unlocks the fullness of life. It turns what we have into enough, and more. It turns denial into
acceptance, chaos to order, confusion to clarity. It can turn a meal into a feast, a house into a home, a stranger
into a friend. Gratitude makes sense of our past, brings peace for today and creates a vision for tomorrow.
~Melody Beattie
November 11, 2011: Everyday Easy Ways to SAVE ENERGY
The days are shorter, the air is cooler, and we are beginning to feel the pressure to start our holiday shopping.
This couldn't be a better time to develop a few good energy saving habits. Below is a list of easy ways to save
energy in your everyday life.
· Wash clothes using cool water cycles whenever possible.
· Always wash a full load of clothes and consider air drying clothes. This method of drying will preserves your
clothing and energy.
· Don’t keep your refrigerator too cool; it is recommended that you keep the temperature between 37 and 40
degrees in the fridge and 5 degrees in the freezer.
· Make sure you refrigerator seals tightly. This can be tested by closing the door on a piece of paper, if you can
easily pull the paper out easily seal needs to be replaced.
· Scrape do not pre-rinse food that will go into the dishwasher.
· Avoid using the “rinse hold” feature on your dishwasher.
November 2, 2011: Safety First especially when it comes to construction:
There's no getting around it: construction can be a hazardous job. The federal Occupational Safety & Health
Administration (OSHA) provides specific guidelines and regulations for homebuilders and contractors regarding
the prevention of accidents on a residential job site. The penalties for failing to comply with those rules range
from hefty fines to shutting down the job until violations are corrected.
Professional builders not only comply with OSHA regulations, but also often take extra steps to help ensure a
safe working environment on every project and thus help keep everyone out of harm's way.
Inspection. As directed by OSHA, professional builders continually inspect their job sites for potential hazards,
and may even have a safety manager who regularly visits each site. Common hazards may include ladders or
scaffolding that are unsecured or set on uneven ground, unmarked trenches, or an incomplete or missing first
aid kit.
If violations are found, they are quickly reported and remedied to get the company back into compliance. And,
they are corrected for the next job.
Education and Training. It is critical to continually educate workers, to train and equip them to recognize and
avoid construction job site hazards and accidents.
In addition to a written safety and health program required by OSHA, professional builders often conduct what's
called "Toolbox Talks" on the subject of safety, perhaps showing a video, presenting a report or (even better)
showing workers a real-world example of a common hazard and how to remedy or avoid it.
Builders who are dedicated to safety also equip their crews with the latest in safety gear, from guardrails on
ladders and scaffolding to hard hats, gloves, eye protection and personal harnesses -- and keep that gear in
optimum working order. These builders also require their trade partners to follow these same safety procedures
with their employees.
Incentives. Smart builders often use incentives to help ensure safety. A worker who reports or remedies a job
site hazard may earn a bonus, time off or some other reward that recognizes his or her initiative and sets an
example for the rest of the crew.
Builders may also track and publicly post job site safety achievements, such as the number of days without an
accident or time lost to a job site injury. Those accomplishments may earn the company recognition from OSHA
or acknowledgement from the company that insures the builder against liability and worker's compensation --
lowering the builder's overhead costs and enabling them to be more competitive for future jobs.
Including Owners. Savvy and safety-conscious builders know that their homeowner clients will want to
occasionally visit the job site to see progress, make decisions and discuss concerns. Safety is no less a priority for
those instances.
Homebuyers can go a long way toward keeping themselves safe on the job site by following the same rules and
procedures as the crew. They are encouraged to wear hard hats and safety goggles and avoid visiting and walking
through a house under construction without supervision, after hours, and on weekends, as they may be
unprepared to avoid hazards.
October 28, 2011: Think Safety! Homeowners learn to live with all kinds of self-set booby traps: roller skates
on the stairs, tangled extension cords, slippery throw rugs and low-hanging overhead lights. Make your
residence as non-perilous as possible for uninitiated visitors.
October 20, 2011: Know your Hood! Know the features that help or hurt resale in your Neighborhood. In some
areas, a swimming pool actually detracts for a home's value and makes it harder to sell. As your Real Estate
Professional, I can help you decide which features to advertise strongly and which to leave in the background.
October 12, 2011: Home Buying Tip: Get pre-qualified for a loan, which determines how much you can afford.
It allows you to move swiftly when you find the right home, especially when there are other interested buyers.
It also indicates to the Seller that you are serious and really can afford to buy property.
October 6, 2011: Home Cleaning tip: to prepare your house to put on market, the house needs to be in tip top
shape. Make sure you clean like a fiend - Q-tip clean! Take a cotton swab to faucets and fixtures, scouring
fingerprints from all the switch plates, shining windows until they're spotless and vacuuming up every last dog or
cat hair from the baseboards.
September 26, 2011: Before you sell, check faucets and bulbs. Dripping water rattles the nerves, discolored
sinks suggests faulty or worn-out plumbing. Burned-out bulbs or faulty wiring leave prospects in the dark.
Don't let little problems distract from what's right with your home.
September 19, 2011: Before rolling out the welcome mat consider some moving basics: arranging for an alarm
company; turning on electricity, water, and gas; cleaning or replacing the carpet; and notifying your local post
office of your new address. The best time for renovations is often before you move in.
September 9, 2011: This week, one of my Buyer's Survey came back with an encroachment. I was thinking, do
people know what encroachments and easements are and how does it affect them as Home owners?
Encroachment:
An improvement, or building, or obstruction which intrudes upon, or trespasses upon the property of another.
An act of trespassing.
Easement:
An interest held by one person or persons which gives some type of a "right to use" land for a particular
purpose. Easements can be - surface easements, subsurface easements, or overhead easements. They can be
permanent or temporary.
What about Title Insurance, doesn't it protect me from boundary problems?
Title insurance protects the lending institution and the property owner (if insured) against claims to the property
such as a disputed boundary. Often, mortgage lenders require the homebuyer to purchase a title insurance
policy in the lender's name. This is a Lender's policy. Many people do not realize that if they wish to be covered
themselves, it is often an additional optional charge. People also do not realize that title insurance policies do not
give coverage against encroachments, easements and boundary disputes that “would be disclosed by a current
certified survey”. This is known as the Survey Exception. Mortgage lenders routinely require a Survey
Endorsement to their loan policies that limits the scope of the Survey Exception to the specific problems
disclosed on a survey. Home Buyers should insist on an Owner's Title Insurance Policy with a Survey
Endorsement based on a current Land Survey. From a practical standpoint, it is always a good idea to know just
what you are purchasing. Land costs too much money to not know exactly what you purchased, and if there are
any problems that you do not know about.
Many Neighborhoods have encroachments such as fences, shrubbery, etc. Injunctive relief consists of a court
order called an injunction, requiring an individual to do or not do a specific action. It must be proven that
without the injunction, harm will occur which cannot be remedied by money damages. Chances of winning an
injunction (to remove the fence, shrubbery) can be difficult if no harm is being created.
------------------------------------
August 25, 2011: Hurricanes and Earthquakes all in one week, OH MY!
Earthquake coverage is specifically NOT covered on your homeowners policy unless you add it. With the
recent 5.9 earthquake in Virginia, you may wonder how much it costs to add this coverage to your homeowners
policy?
As a rough estimate, this would cost between $50 and $250 per $100,000 of coverage per year to add to your
homeowners policy. * Subject to a 5% deductible and mandatory 10 day waiting period from the last tremor.
Hurricane insurance: Do you have it? Need it? Six things to know.
Hurricane insurance has a unique place in the world of insurance. Just as hurricanes can do all sorts of damage
to a house – from wind, flood, and rain – so hurricane insurance requires a multifaceted approach beyond typical
homeowners insurance. Some hurricane damage is covered by homeowners insurance. Then there's a
government-run program for flooding. As hurricane Irene heads for the East Coast, here are answers to six key
questions:
1.Do I have insurance for hurricane damage?
Hurricane insurance is a little tricky. Private homeowners insurance does not cover flood damage, but it should
cover any damage caused by hurricane winds. Even so, many homeowner policies have special deductibles for
hurricane damage that are separate from the general deductible for other damages. While the general
deductible is likely set at a dollar amount, the deductible for hurricane damage is often set as a percent of the
hurricane costs. It's usually around 3 percent, although it can run as high as 5 percent of the damage costs.
Any hurricane damage from water, not wind, is covered by flood insurance, which must be purchased separately
through the federally run National Flood Insurance Program.
2.What does flood insurance cover?
There are two kinds of flood insurance for consumers: one for buildings and one for personal property.
Building policies cover structural damage, to the exterior and foundation, as well as damage to certain, semi-
permanent indoor items, such as paneling, heating and cooling systems, carpet, and built-in appliances. Building
policies can cover up to $250,000.
Personal property insurance can cover up to $100,000 in damages, and typically applies to portable items. For
instance, furniture, clothing, and electronics are considered “personal property,” as are portable appliances,
washers and dryers, and artwork.
3.How much does flood insurance cost?
Rates vary, depending on whether you live in a “moderate-to-low” risk area or a "high-risk" area. Coastal areas
are considered high risk, and premiums range from $580 a year, for up to $45,000 in both building and personal
property damage, to $5,903 a year, for up to $350,000 for combined building and personal property damage.
Policies can also be purchased individually, for either personal property or building damages. That way
homeowners can opt out of one, or mix and match how much to insure property in each category.
4.What isn’t covered by flood insurance?
Flood insurance doesn’t apply to all the losses you might incur from a hurricane, including some items of high
value. So if a storm surge sweeps your stock certificates, money, or precious metals out to sea, they won't be
covered. Also, insurance doesn’t cover damage to your yard or structures in it, such as decks, fences, or
swimming pools. A flood insurance policy won’t cover living expenses either, if you have to pay for temporary
housing.
5.Are there any resources for hurricane damage if I’m not insured?
If the president declares a disaster, then you may qualify for help from the federal government. Most disaster
assistance from the government comes in the form of federally subsidized loans from the Small Business
Administration.
6.How long does it take to get flood insurance?
There’s typically a 30-day waiting period before your insurance will go into effect. So, while it may be too late to
take precautions for hurricane Irene, which was projected to make landfall near the Connecticut-Rhode Island
border Sunday night, this year's hurricane season is only halfway over.
By Mary Helen Miller, Correspondent for the CSMonitor.com August 25, 2011 at 9:14 am EDT
----------------------------------------------------
August 19, 2011: What is a GFCI?
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August 12, 2011: 5 Ways to Slice Summer Power Bills
1. Reduce your amount of "Vampire Power"
What's the one place people waste power and don't even realize it? Vampire power: It's the energy some
appliances and electronics drain from your home when they are turned off.
Signs of a vampire: Anything with a clock or light that's on when the item is turned off. Also, any kind of
plugged-in charger can be a vampire appliance -- whether or not it's charging anything.
Staking vampires doesn't mean going around constantly plugging and unplugging your electrical items. (Unlike
real vampires, that would get old fast.) Instead, hook things up to surge protectors. Or use outlets that connect
to wall switches for vampire items. When the wall switch is off, there's no power to drain.
2. Actually Programming your Thermostat
It's kind of like buying a Ferrari keychain to go with a broken-down old car. Sure it looks cool, but it's not going
to make things run any better.
So get out the booklet that came with the thermostat and read it. Or have the customer service department talk
you through the basics. Some power companies have special help lines for just that purpose, too.
When you use it, a programmable thermostat can save up to 10 percent per year from your heating and cooling
bills, says Ronnie Kweller, spokeswoman with the Alliance to Save Energy.
And who couldn't use a little extra money?
3. Washing machines: Full and Cold is Better!
Especially if you're talking about a dishwasher or washing machine. You use the same amount of water and
energy whether the machine is full or not.
But with full loads, you get a lot more for your money. And you run the machine less often. Win-win.
Some other ways to save:
Do laundry in cold water. Running the water heater -- for things such as showers, dishwashers and laundry --
accounts for about 14 percent of your total power bill, Kweller says.
Skip the "dry" cycle on your dishwasher. Either hand-dry dishes as you put them away, or let evaporation do the
work for you.
If your neighborhood allows it, check out one of those "solar clothes dryers," (It's a line stretched between two
poles that allows you to hang laundry outside.)
If clotheslines are prohibited in your area, try a discreet drying rack on your back patio or deck. Or, if you're
not jonesing for that fresh-air-and-sunshine laundry smell, you can even set it up in a tub or shower stall.
4. Skip the arctic AC
Who doesn't come in from the sweltering heat and vow to crank the air conditioning down to a temperature
usually reserved for penguin nesting grounds?
But icing down the whole house just to cool you off for a few minutes is expensive. So keep the air conditioning
at a reasonable setting and look for other ways to chill when you first come inside. Have an icy drink, put a cold
compress on the back of your neck or change into some cool, absorbent clothes.
Another effective strategy: a quick, cool shower!
5. Go wireless
Sometimes it pays to get away from the two-dimensional electronics for a little while. Literally.
Click off "FarmVille" long enough to dig in the real dirt in your yard. Or, have some fun with a container
garden on your patio. (Real tomatoes don't require wattage. And if you eat what you grow, you can save on your
food bill, too.)
Ditch the Facebook friends to spend a little time with people you know from the real world. (Not to be confused
with "The Real World.")
But your idea of fun might also be game night or a poker party.
The goal: Get unplugged, unwind and connect in a way that has nothing to do with power cords and networks.
You'll save some electricity and recharge your own batteries at the same time.
Posted: Aug. 03, 2011 Location of article:
http://www.bankrate.com/finance/personal-finance/5-ways-to-slice-summer-power-bills-1.aspx Email Save Print
August 3, 2011: Charlotte by the Numbers
#3 Rank among potential cities (population 250,000-750,000) in the Americas to attract investments by foreign
companies. Source : FDI Magazine
#4 Rank among the top markets in 2011 that are most conducive to the creation and development of small
business. Source: The Business Journal
#7 Rank among the top comeback cities in 2011
Charlotte Magazine June 2011
July 28, 2011: SUMMER DISCOUNT!! Would you like to put ONLY $100 for a down payment on a
HUD Home?!! Click on the following link to find available properties:
http://hudhomestore.com/HudHome/Index.aspx (when here, click on the case number associated with the
property listing, then click on the addendums tab to see if this is a $100 down eligible property)
- Borrower qualifies under the standard FHA guidelines-Flexible
- No income or area limits
- Closing costs and prepaids may be paid by the seller (HUD usually only pays up to 3%)
- Can be used in conjunction with the 203K Renovation loan and/or the Good Neighbor Next Door Program
Eligibility Criteria:
- 640 minimum credit score
- Must be an FHA loan used for primary residence purchase only
July 20, 2011: Mortgage Insurance Cancellation: The Myths and Realities
When it comes to private mortgage insurance (MI), there are several myths that exist that make buyers
reluctant to consider a conventional loan with MI as an option when purchasing a home. One of the more
common misconceptions is that cancelling MI is a difficult—not to mention time-consuming—process.
The irony is that the majority of buyers don’t harbor those same beliefs or reservations about an FHA insured
loan when, in reality, FHA coverage may be less easily cancelled, or take longer to cancel, than MI.
HPA Makes Cancellation Clearer
When it went into effect as a new federal law, the Homeowners Protection Act (HPA) of 1998—which applies to
both FHA and MI insured loans—required lenders and servicers to provide disclosures regarding MI for
residential loans obtained on or after July 29, 1999. Prior to this, consumers were responsible for requesting MI
cancellation if they met two factors: one, their loan balance was paid down to 80 percent of the property; and
two, they had a good payment history.
While many lenders obliged consumer requests to drop MI coverage, consumers had sole responsibility for
keeping track of their loan balance.
The HPA established three different times when a lender or servicer must notify consumers of their rights.
At loan closing, lenders must disclose:
• The right to request MI cancellation and the date on which the request can be made
• The requirement that MI be automatically terminated and the date on which this will occur
• Any exemptions to the right to cancellation or automatic termination
• A written initial amortization schedule for fixed-rate loans only
Each year, loan servicers must send borrowers a written statement that discloses:
• The right to cancel or terminate MI
• An address and telephone number to contact the loan servicer for determining when MI may be cancelled
When MI coverage is cancelled or terminated, lenders must send a notification to borrowers stating:
• MI has been terminated, and the borrower no longer has MI coverage
• No further MI premiums are due
Termination of Coverage
Under the terms of the HPA, mortgage lenders or servicers must automatically cancel borrower-paid MI
coverage when the mortgage has amortized to 78 percent of the original property value, with all unearned
premiums returned to the borrower within 45 days of the cancellation or termination date. This provision also
requires that the borrower be current on mortgage payments required by the terms of the loan, and if the loan is
delinquent on the date of automatic termination, a lender must terminate the coverage as soon as the loan
becomes current.
Cancellation of Coverage
Also under the HPA, a homeowner has the right to request MI cancellation when the mortgage balance reaches
80 percent of the original property value. All payments must be current, meaning a homeowner must not be 30
days late on a mortgage payment within one year of their request, or 60 days late within two years.
However, a borrower can only initiate a cancellation request for FHA based on their prepayment of the loan, and
even then, it can only be requested beginning five years after the loan origination date.
With MI, homeowners can request cancellation based on prepayment of the loan, as well as an appraisal. Despite
falling property values, it’s possible for homeowners to gain enough equity in their home to request cancellation
in less than five years based on a home appraisal.
Why This Matters to Agents
By understanding these rules and what they mean for homeowners, real estate agents can educate their buyers
to help them better evaluate allof their home financing options based on facts rather than myths.
This is even more important considering the FHA’s recent price increase, which has reduced buyers’ purchasing
power and increased monthly mortgage payments.
by RISMedia: The Leader in Real Estate Information Systems
----------------------------------------
July 8, 2011: Understanding Points, Rates and Fees
Not only do you have to understand what type of mortgage you should choose, you have to understand the costs
associated with your mortgage. All of these costs will be paid upon closing your mortgage.
Purchase Points
Purchase points, also known as a "buy-down" or "discount points," are an up-front fee paid to the lender at
closing to buy-down or lower your interest rate over the life of the loan. Each point is equal to one percent of
your total loan amount. If you have a $100,000 loan, one point would equal $1,000. The more points you buy, the
lower your interest rate, but the more money you'll need at closing.
How do you decide whether you should buy points and if so, how many? Well, the decision should be based on
how long you plan on living in your home and what you can afford to pay each month toward your mortgage. If
you plan on living in your home for more than five years, it's probably a good idea to purchase points. The longer
you live in your home, the more you can save on interest over the life of the loan.
Interest Rate
When you get a mortgage, you are charged an interest rate, this is the rate which the lender charges you for
using their money to buy a home. It determines how much your monthly payments will be. Generally speaking,
the higher the interest rate, the higher your monthly payment.
Mortgage interest rates change constantly, daily, even hourly. If you speak to a lender and are quoted a specific
interest rate, that's not to say you'll necessarily get that rate when you close on your loan. Not unless you
formally lock-in that rate with the lender. Locking in an interest rate will guarantee you get your loan with a
particular interest rate. Lenders will allow you to lock in for 15, 45 or 60 days. But the longer you lock in, the
more expensive it will be, since it's more of a risk to lenders.
Fees
There are always fees associated with getting a mortgage, these fees cover the cost of processing and
underwriting the loan. These fees can include charges for ensuring the title to the home is free and clear; paying
for a land survey; or paying for a home appraisal which gives you the estimated value of the property (lenders
require an appraisal to close on your mortgage).
Deciding which mortgage to get may depend on what each lender does because different lenders may charge
different amounts. Some may charge lesser closing fees to lure you in, but may charge you a higher interest
rate, which means you may pay more in the long run. But everyone has different needs, you may or may not be
able to afford to pay more at closing and are willing to pay more over the long term.
Before it comes time to close, do your homework, make sure there are no hidden fees, and ask your lender lots
of questions so that you understand all the costs involved with your mortgage.
*Also, please consult your tax advisor for advice regarding the purchase of your new home.
Yahoo Real Estate
---------------------------------
June 30, 2011: A reliable home warranty can help provide an important measure of confidence for the buyer
and help set a seller’s home apart from the competition.
Still, even with advantages to both parties, many buyers and sellers remain uninformed about the purpose and
benefits of home warranties, which cover the repair or replacement of many home-system components and
appliances. Home warranties—which are available for single-family homes, condominiums, townhouses, vacation
homes and multi-unit properties—address key consumer needs, typically covering the cost of replacing or
repairing such things as heating and air conditioning components, dishwashers, water heaters, ovens, garbage
disposals, and more.
Such items are not usually covered by homeowners insurance and can be very costly to repair or replace if not
covered by a home warranty. Replacing the dishwasher alone can be more costly than an annual home warranty
payment; the average cost for a one-year home warranty begins around $300.
While many of the home’s system components and appliances are covered as part of a standard home warranty,
if home buyers wish for more household items to be covered, they should determine whether their home
warranty provider offers an add-on package. Many plans allow consumers to customize their home warranty to
cover specific components and appliances, including ceiling fans, garage door openers, swimming pools and more.
Advantages for both buyers and sellers
Whether the home warranty is provided by the seller of the home or purchased by the buyer after the sale,
there are numerous advantages to both parties.
Home warranties are appealing to buyers because they cover appliances and system components that a new
homeowner has no familiarity with. Sellers benefit from offering a home warranty because it sets the home
apart from the rest of the competition in today’s saturated market, often leading to faster sales at better prices.
Get the plan that’s right for you
While home warranties are a popular addition to the home buying and selling process, they may be purchased at
any time. Consumers should do their research before choosing a plan or provider, as costs, coverage levels,
customer service and other factors vary. In today’s economy, home warranties make sense more than ever. Not
only are they a great tool to help you sell your home, but they’re something you definitely want to insist on
when buying one.
by RISMedia: The Leader in Real Estate Information Systems
------------------------
June 22, 2011: Shopping for a Home loan
"Are consumers making better decisions about the kinds of mortgages they select than they did before the
financial crisis?"
The mortgages being written today are certainly better matched to the needs and payment capacity of borrowers
than they were before the crisis. The major reason, however, is not better decision-making by consumers, but
elimination of the toxic mortgages that led so many consumers astray.
The option adjustable-rate mortgage, or "option ARM" that allowed borrowers to make payments in the early
years that did not cover the interest while exposing them to the risk of sizable payment increases in the future,
are no longer being offered. Its somewhat less-dangerous cousin, the interest-only mortgage, is still around but
priced so high that few borrowers select it.
Another reason the quality of mortgage decisions has improved is that the subprime and alt-A markets, which
had channeled loans to consumers with the weakest qualifications for homeownership, are both gone. The
average mortgage borrower today is much better qualified than before the crisis because the less-qualified
borrowers are not being approved.
However, better decisions resulting from a curtailment of options and tighter eligibility requirements are not an
unsullied blessing. The option ARM had some legitimate uses, and these have been lost along with the abuses.
Worse, more stringent qualification requirements have overshot the mark and some very well-qualified
consumers, including large numbers of the self-employed, are unable to borrow.
Given the available options, consumer decision-making today is no better than it was because the factors that led
to bad decisions have not changed.
Borrower ignorance: Mortgages tend to be complicated, and consumers are exposed to them likely only once or a
few times during a lifetime. They have no opportunity to enhance their knowledge through trial and error, which
is largely how they learn about other products.
While some potential mortgage borrowers, recognizing the importance of the decision, will put in the time
required to become knowledgeable, most prefer to depend largely on the advice of others.
Poor advice: In selecting a mortgage, most borrowers get their advice from their loan provider (LP) -- a loan
officer or mortgage broker. In the worst case, which was fairly common before the financial crisis, some LPs
steered borrowers to the products on which the LP made a larger commission. Under regulations issued this
year, such steering is against the law.
Eliminating biased advice does not generate good advice, however. Most LPs remain transaction-oriented,
meaning that they are looking to get the deal done rather than to establish a relationship with the client. They
earn no more if the borrower selects the right type of mortgage than if they select the wrong type. What matters
is that the borrower is satisfied with the LP's advice and the loan closes.
The advice given by LPs is only as good as their capacity to provide it, and while there are some good ones, they
are the exception. LPs are not selected for their pedagogical skills, they are not trained for it, and they are not
rewarded for it.
Poor disclosures: One of the alleged purposes of mandatory disclosures is to help borrowers compare different
types of mortgages. The cornerstone of such efforts is the annual percentage rate, or APR, which is supposed to
be an objective measure of mortgage cost that allows borrowers to make unbiased comparisons. The trouble is
that it does this only in a very restrictive set of circumstances, which regulators have never spelled out.
Because the APR is calculated over the full term of a mortgage, it is misleading if used in selecting the mortgage
type by borrowers who expect that they will sell their house or refinance the mortgage within a relatively short
period. For the same reason, it leads borrowers astray who are comparing different combinations of interest rate
and points on a given type of mortgage.
Perhaps it is fortunate that because most borrowers don't understand the APR, few try to use it.
By Jack Guttentag Inman News™
---------------------------------------------
June 16, 2011: What is an Umbrella Policy and why do you need one?
An umbrella insurance policy is an extra layer of protection against lawsuits resulting from damage to someone
else's property or injuries as the result of an accident. It also protects against false claims and intentional acts
such as libel, slander and vandalism by minors, and covers false arrest, wrongful entry, invasion of privacy and
more.
There are many reasons to purchase an umbrella liability insurance policy.
1. It covers incidents that may not be covered on your basic homeowners' insurance. For example somebody is
injured in your pool or a contractor is hurt on your property.
2. It fills "in the gaps" by providing coverage for other incidents like liability for rental properties or being sued
for slander or libel.
3. It protect you against the catastrophic losses that can occur if you are sued. The best way to think of
umbrella insurance is as extra coverage in case your insurance maximums on your home or auto are reached
and surpassed in an incident.
Check with your insurance carrier to see analyze the rates on an Umbrella Policy today. It is imperative you
and your family are protected.
---------------------------------------------------
June 9, 2011: Simple Tips to Prevent House Fires
Every year home electrical problems cause more than 28,000 house fires and massive property damage.
Electrical wiring is the root cause of many of these fires, of which countless could have been prevented. Faulty
or fixed wiring or improper use of electrical cords and other electrical items cause most home fires.
Electrical Safety Tips
• Pay Attention: Flickering lights, buzzing noises, and faceplates that are warm to the touch are all signs that a
circuit may be overloaded or wiring may be wearing thin. Each one of those signs is cause for immediate
attention from a licensed professional electrician.
• Listen to Your Breaker: If you are continually tripping a switch and having to reset your breaker box, your
house is trying to tell you something. There may be a fixture with faulty wiring or too high an electrical load on
the breaker. Again, seek professional help.
• Review and Replace: Frayed electrical cords, wobbly ceiling fans, and loose faceplates are more than mere
annoyances. You should routinely inspect your home and replace or repair items in need of attention.
• Safety First: Even the best preparation and newest equipment is not a guaranteed protection against fire.
Working smoke detectors on all levels of your home is an absolute must. Make sure you have a working fire
extinguisher and you know the proper way to use it.
The good news is many of these fires are avoidable, in the case of electrical safety just a little awareness and
preparation can make an enormous difference.
The Electrical Safety Foundation International (ESFI) sponsors Electrical Safety Month each May. More
information and safety tips, including a home safety calendar, can be found at www.esfi.org.
---------------------------
May 26, 2011: 9 Reasons to Buy a House Now
1. Lowest Housing Prices in Years
Nobody knows when the housing market will hit bottom, but prices are at their lowest in several years and may
soon start inching back up again. So buying now or in the near future may be the right time. An abundance of
bargain-priced housing is now available because of foreclosures and falling prices.
2. Interest Rates at a 50-Year Low
Interest rates are near a 50-year low, according to housing analysts. By the second week of May, 2011, 30-year
fixed mortgage rates had fallen to their lowest rates of the year at 4.63%. Although mortgage rates vary from
day to day, the 30-year rate at this level is an attractive inducement to first-time buyers, or buyers who want to
either move up to larger residences, or others, including many empty-nesters wanting to sell and move to
smaller houses or condos.
3. Interest Rates Expected to Go Up
As the economic recovery gains momentum, interest rates are expected to increase, making mortgages more
expensive. Even a half-percent increase in mortgage interest can add a hundred dollars or more to your monthly
payments, depending on the amount of your loan. (To learn more about interest rates, read Forces Behind
Interest Rates.)
4. Adjustable Rate Mortgages at Record Lows
Adjustable Rate Mortgages (ARMs) are also lower now, although there are risks that interest rates may increase
over the life of the mortgage and the balloon payment due at the end of the mortgage life, usually three or five
years, could be substantial. Nevertheless, for new buyers who are sure they'll have enough income to meet
payment obligations, an ARM may be the best way to buy a house. Keep in mind that payments may increase on
a monthly basis. For a full explanation of advantages and risks in an ARM, visit the federalreserve.gov.
5. Low Down Payment Mortgages Available
Low-down-payment financing through Federal Housing Administration-insured mortgages is available as an
additional inducement to buy a house now. Down payment minimum requirements also fluctuate and may
increase as the market heats up, so potential buyers with less cash to consummate a deal may be well-advised to
buy now.
6. Easy to Qualify, Easy to Borrow
Lending standards have become less rigid recently, so qualifying for a mortgage may be easier. Experts advise
that a potential buyer become pre-approved for a loan by a lending institution – meaning that a lender
guarantees to make the loan contingent on an appraisal of the property. But the good news in seeking pre-
approval is that lenders are now willing to let a potential buyer take on more debt than the previous formula
allowed - a percentage of monthly income. (For more on getting a cost effective mortgage, see Score A Cheap
Mortgage.)
7. Lenders Offer No-Fee Mortgages
Many banks and other lending institutions are waiving mortgage loan generation and other fees and points (each
point represents 1% of the loan amount), thereby reducing the cost of buying.
8. Home Builders Eager to Sell, Offer Incentives
Home builders, competing with the resale market, are offering incentives to potential buyers to reduce their
inventory of unsold new homes. Incentives may include cash for furniture or free refrigerators, washers and
dryers. In Seattle, for example, builders have offered opportunities to win iPads or Smart phones, and $3,000
buyer bonuses. Specific demographic groups, including military personnel, police, firefighters and health-care
workers, have been targeted by builders for special offers. But virtually anyone who can qualify for a mortgage
is likely to get a good deal from a homebuilder who is eager to sell.
9. Motivated Home Owners Desperate to Sell
Desperate sellers of existing homes have also been offering attractive inducements to potential home buyers,
including warranties on appliances, air conditioners and furnaces. Some sellers are even offering cash or have
included furnishings, refrigerators, washers and dryers as a bonus to potential buyers. With so many existing
homes in foreclosure or underwater – bargain prices are abound in this depressed market. (For help on buying a
house, read Top Tips For First-Time Home Buyers.)
The Bottom Line
With a convergence of the factors above, all of which are favorable to the prospective home buyer, there may
not be a better time to buy than right now. It's a buyer's market, but like everything else in life, the bargain
deals won't last. (To help determine if it is the right time to buy, read Are You Ready To Buy A House?)
---------------------------
May 18, 2011: 6 Tips to a Higher Credit Score
Your credit score, calculated from information in your credit report, is a measure of how good a risk you are to a
credit grantor. A large proportion of borrowers who can't qualify for a mortgage would qualify if their credit
score was higher.
Any lender to whom you apply will obtain your score and provide it to you. As noted below, however, inquiries by
lenders may have a negative effect on your score, whereas inquiries by you do not. Hence, it is a good idea to
find your score before you apply, so you can make an informed decision on whether you want to apply at that
time.
You can obtain your score from many firms in the business, including www.equifax.com, www.transunion.com,
www.experian.com and www.myfico.com.
Some Tips are:
1. Pay on time: The core rule is to meet your debt obligations on-time, every time. If you have had payment
lapses in the past but your habits have improved, time is on your side. The credit scoring rules weight recent
experience more heavily than older experience.
2. Correct mistakes in your credit report: Your score should not be reduced by reporting mistakes, which are all
too common.
3. Detach yourself from the "wrong vendors": Because finance companies lend to relatively poor risks, the
credit score of any borrower owing money to a finance company is lower than it would be if the creditor was a
bank. By the same logic, borrowers who have credit cards of department stores are penalized, relative to what
their score would be if they had cards issued by banks.
4. Reduce balances on revolving credits to less than 50 percent of the maximums: A high utilization ratio is read
as a sign of weakness and potential trouble, reducing your score. Credit cards are the most important type of
revolving credits, but HELOCs belong in this category as well. A HELOC used to purchase a house or to
refinance a mortgage, where the initial utilization ratio is 100 percent, will jolt your credit score.
Note that utilization ratios can be reduced by getting the maximums raised, as well as by paying down the
balances. In many cases, credit card issuers are willing to raise the maximum at the borrower's request.
5. Minimize the number of "hard inquiries": Hard inquiries are requests to a credit agency for your credit score
from a credit grantor, insurance company or other entity to which you have applied and to which you have
entrusted your Social Security number. "Soft inquiries" made by you or by firms looking to sell you something
for which you have not applied don't require your permission and don't impact your credit score.
The credit-scoring systems may or may not penalize borrowers who shop multiple credit grantors within a short
period -- unfortunately, you can't be sure.
The credit agencies tell you that multiple inquiries within a 15-day period count only as a single inquiry, but in
fact inquiries for mortgage, auto and student loans would probably count as three inquiries, and even three
mortgage inquiries could count as three inquiries, depending on how the credit grantors are identified to the
credit scorer. I will have an article abut this in the near future.
The bottom line is that in applying for credit, find your own score that you can deliver to the vendors you are
shopping who need the score to set the price. The vendor you select will verify the score through his own inquiry,
but it will be only a single inquiry.
6. Pay off collection accounts: This may actually reduce your score in the short-run by converting the account
from an older entry with a low weight to a new one with a higher weight. However, you can't get a loan with a
collection account on your record, so you must pay it off -- the sooner the better.
--------------------------------------------
May 9, 2011: 2011 Charlotte Statistics for March have just been released.
Average List Price Mar 2011 $222,224 vs. Mar 2010 $223,319 (-1%)*
Average Sales Prices Mar 2011 $194,465 vs. Mar 2010 $197,564 (-2%)*
with List to Close Days averaging 159 days (2 MORE days than last month, 157 days)*
New listings Mar 2011 is 5,147 vs. Mar 2010 is 6,147 (new listings are down by 16%)*
*data comes from Carolina Multiple Listing Services, Inc. April 18, 2011
+Interest Rates have DECREASED from a year ago: Mar 2011 4.94% vs. Mar 2010 4.99% (FANTASTIC time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast April 18, 2011
-----------------------------------
April 28, 2011: Three Reasons why a Seller should hire their own Inspector:
1) Avoiding liability: If an undisclosed defect (one that you were unaware of for the past 30 years) is discovered
after the close of escrow, you could be sued for nondisclosure. The fact that you were unaware of the problem
would be for you to prove in court.
2) Avoiding repair costs: Disclosing defects at the outset of a purchase transaction enables you to do an as-is
sale. When defects are discovered by the buyers' home inspector, the buyers are more likely to insist on repairs.
3) Building trust: Providing a home inspection report to buyers is a good way to build trust in a transaction by
demonstrating that you, the seller, have nothing to hide.
As a seller, it's better to provide disclosure than waiting for disclosure to happen to you.
--------------------------
April 18, 2011: Today's the day - you've done your paperwork, now it's time to get some freebies. Find out who
is offering some Tax Freebies!
MaggieMoo's: The ice cream chain is offering free mini ice cream sundaes between 3 p.m. and 6 pm.
Cinnabon: Anyone who stops by between 6 p.m. and 8 p.m. can get two free "cinnamon bites"
Bruegger's: Customers can score a baker's dozen plus two tubs of cream cheese for $10.40 if you bring in a
coupon, available through the bagel chain's Facebook page.
P.F. Chang's: The Chinese restaurant chain is offering a 15 percent discount on all Tax Day orders, which
includes dine-in and take-out, with the exception of Happy Hour orders and beverages.
McCormick and Schmick's: The seafood restaurant is celebrating Tax Day by featuring entrees and bar specials
for $10.40 (plus guests can pick up a $10.40 certificate to use in the dining room).
IHOP: Every day in April--not just Tax Day itself--children age 12 and under eat for free, as long as their
parents purchase an adult entree.
DirectTV, along with a handful of other providers, are offering free access to HBO and Cinemax through April
18.
Bally Total Fitness is giving its members free personal training sessions, and non-members can work out at no
charge on Monday.
Spa week: Spas throughout the country are offering a variety of treatments, from massages to facials, for $50
through April 17. (Services usually cost as much as $500.) The fact that spa week falls on tax day might be a
coincidence, but it can still help you relax after making the deadline. Find a participating spa near you at www.
spaweek.com.
Office Depot: The supply store is offering free shredding (up to five pounds) as well as 25 pages of tax document
copying at no charge. Just bring in this coupon before April 23.
National Park Week: Tax Day coincides with National Park Week, which means free entrance into the more
than 100 national parks that usually charge fees.
http://finance.yahoo.com/news/Tax-Day-Deals-Discounts-and-usnews-3570468054.html?x=0
--------------------------------------
April 5, 2011: Your Federal tax return is due on April 18 instead of the usual April 15 deadline. April 18 is also
the deadline for several other important tax-related actions. For example, your first estimated tax payment for
2011 is due April 18. But that's not all. There are several other important steps you should consider taking
before the deadline:
File an extension
If, like many people, you don't want to have to file your completed return by April 18, you can obtain an
automatic six-month extension of time to file. This is very easy to do. You simply fill out Internal Revenue
Service Form 4868: Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.
You can either email the completed form to the IRS or send it by postal mail. It must be sent by April 18, 2011.
You don't have to tell the IRS why you want the extension, and you can't be denied the extension -- you get it
automatically by filing the form. However, when you file Form 4868 you must estimate your total tax liability for
2010 and list it on the form.
It's important to understand that obtaining an extension of time to file your return does not relieve you of the
duty to pay your taxes in time for the initial deadline (by April 18).
You can send in any balance due, along with the Form 4868, but this is not required. If you don't pay balance due
by April 18, you'll have to pay interest on the amount and may also be charged late payment penalties by the
IRS. The late payment penalty is usually one-half of 1 percent of any tax (other than estimated tax) not paid by
April 18, 2011.
Fund your retirement accounts
One of the best ways to reduce your tax liability is to establish and fully fund a tax qualified retirement account.
These include traditional and Roth IRAs (individual retirement accounts), SEP-IRAs, SIMPLE IRAs, 401(k) and
solo 401(k) plans, Roth 401(k) plans, and Keogh Plans (defined contribution plans and defined benefit plans).
Your contributions -- other than those to Roth plans -- are tax deductible. Contributions to Roth IRAs and Roth
401(k) plans are not deductible, but withdrawals after age 59 1/2 are tax free.
The maximum 2010 contribution you may make depends on the type of plan you have and the amount of your
net self-employment income. Contributions to traditional and Roth IRAs are limited to $5,000; $6,000 if you
were at least 50 by the end of 2010.
Contributions to the other plans can be much larger -- as much as $49,000 for the most generous plans. There
are several online retirement plan contribution calculators you can use to figure out your maximum contribution
for 2010; including one at CalcXML.com.
If you already have a retirement account, but have not funded it for 2010, you still have time to make a 2010
contribution. You have until April 18 to make contributions to a traditional or Roth IRA, 401(k) plan, SEP-IRA,
SIMPLE-IRA, or Keogh Plan, and have them count for the 2010 tax year.
Make sure to tell your plan administrator that your contribution should be applied to 2010, not 2011.
Filing an extension of time to file your return does not extend the deadline to contribute to an IRA. However,
filing an extension does extend the time to fund a 401(k) plan, SEP-IRA, SIMPLE IRA, or Keogh Plan until Oct.
15, 2011 -- the extended due date for your return.
So if you have one of these plans and need more time to come up with the money to contribute to them, be sure
to file an extension.
What if you don't have any retirement accounts? You still have until April 18 to establish a traditional or Roth
IRA, or SEP-IRA and make contributions for the 2010 tax year. It is too late to set up 401(k) plan, SIMPLE-
IRA, or Keogh Plan for the 2010 tax year.
Contribute to a Health Savings Account (HSA)
If you have a Health Savings Account, April 18 is also the last day you may make contributions for the 2010 tax
year. As with IRAs, obtaining an extension to file your return does not extend this deadline.
If you have an individual plan, you can contribute a maximum of $3,050 for 2010. If you have a family plan, the
maximum 2010 contribution is $6,150. These limits are increased by $1,000 if you were 55 or older at any time in
2010.
Stephen Fishman is a tax expert, attorney and author who has published 18 books, including "Working for
Yourself: Law & Taxes for Contractors, Freelancers and Consultants," "Deduct It," "Working as an
Independent Contractor," and "Working with Independent Contractors." Inman News April 5, 2011
-------------------------
March 24, 2011: Many ask "How's the Real Estate Market?" Well if you would like to know, 2011 Charlotte
Statistics for February have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Price Feb 2011 $206,576 vs. Feb 2010 $216,605 (-5%)*
Average Sales Prices Feb 2011 $180,036 vs. Feb 2010 $191,288 (-6%)*
with Current Average Days on Market 119.9 days (3.20 MORE days than last month, 116.7 days)*
New listings Feb 2011 is 4,108 vs. Feb 2010 is 4,918 (new listings are down by 16%)*
*data comes from Carolina Multiple Listing Services, Inc. March 7, 2011
+Interest Rates have DECREASED from a year ago: Feb 2011 4.95% vs. Feb 2010 5.05% (FANTASTIC time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast March 7, 2011
--------------------------------------------
March 17, 2011: Happy St. Patrick's Day! Here are some ideas on how to be GREEN in your home:
You can be a green by unplugging appliances or using chemical-free products. It’s as easy as fixing leaky faucets
or installing window treatments to conserve heat in the winter and to keep your place cool in the summer
without cranking up the air conditioning. Collect your old bath water or dishwater. Known as gray water, it can
be used to water houseplants or for outdoor irrigation. But you’ll want to use only natural, biodegradable soap to
keep from harming your greenery and to keep chemicals from leaching into the water table. Place a two-liter
soda bottle filled with water in your toilet tank to displace some of the water, reducing the amount used in each
flush-refill cycle. You can also buy a bigger float ball or adjust the existing one so that it rests closer to the
bottom of the tank, shutting off the refill valve earlier. Find out which appliances are the biggest power
consumers with an energy audit, which public utilities usually offer free (hint: refrigerators are major energy
hogs) and consider replacing them with energy-efficient models. Even when they’re switched off, most home
appliances and electronic devices continue drawing a little bit of power as long as they’re plugged in. These
“vampires” account for an estimated 10% of residential energy use in the U.S. Shedding these leeches is easy.
Simply unplug the stuff you don’t use most of the time.
---------------------------------
Feb 25, 2011: Many ask "How's the Real Estate Market?" Well if you would like to know, 2011 Charlotte
Statistics for January have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Price Jan 2011 $217,809 vs. Jan 2010 $229,214 (-5%)*
Average Sales Prices Jan 2011 $188,147 vs. Jan 2010 $200,592 (-6%)*
with Current Average Days on Market 116.7 days (2.30 MORE days than last month, 114.4 days)*
New listings Jan 2011 are 4,006 vs. Jan 2010 5,571 (new listings are down by 21%)*
*data comes from Carolina Multiple Listing Services, Inc. February 7, 2011
+Interest Rates have DECREASED from a year ago: Jan 2011 4.76% vs. Jan 2010 4.98% (STILL FANTASTIC
time to buy!)
+source: Freddie Mac, National Association of Realtors Forecast February 7, 2011
---------------------
Feb 17, 2011: There have been many questions regarding Mecklenburg County Tax Revaluation. How was the
new tax value computed, what can the Homeowner do? Mecklenburg County 2011 Revaluation
Revaluation is the process of reappraising all properties within the county for tax assessment purposes. This is
required every 8 years. Wonder how they compute your new tax value? Click the link below to learn more:
http://charmeck.org/mecklenburg/county/AssessorsOffice/reval/Pages/default.aspx
-----------------------------------------
Feb 3, 2011: Best bathroom floor: tile, vinyl or wood?
Often, bathroom tile is glazed, shiny and smooth. A simple solution is to use rubber-backed bath rugs over the
tile to keep your footing. Covering most of a tile floor with a rug is not very practical. So here are a couple of
alternatives.
First, if you choose a tile floor, avoid glazed tile or marble. Instead, pick a material that's either textured or has
a matte finish. They provide more traction and a better chance to keep you upright.
Another tile alternative is Saltillo. This is a porous terra-cotta tile from Mexico that requires regular sealing
with a quality acrylic sealer. The plus is that it's got a skid-resistant surface. The minuses are the maintenance
factor and the tile's irregular shape. If you're looking for uniformity, this option is not for you. But if you're
after a rustic look, this may be the ticket.
Now, don't fall over in a dead faint, but another alternative you might consider is an engineered wood floor. It's
not for everyone, but it might work for you.
The negative, of course, is that this type of floor doesn't withstand large amounts of water well. If this is the
only bathroom and there are kids, wood is not an alternative. But if the bathroom is adults only, the beauty of
wood is a definite alternative.
Engineered wood consists of a top layer of hardwood -- bamboo, for example -- that is pressure-glued to
alternating layers of plywood. The cross-grain construction gives the flooring good stability, unlike its solid wood
counterpart. Also, the factory-applied finish is water-resistant. Notice, we did not say waterproof.
A wood floor will provide more traction than smooth tile, but will still require a rubber-backed bath rug for
entering and exiting the tub or shower and to reduce the amount of water on the floor.
The bottom line is that there's no perfect solution. Water will have its way. For our money, a matte, textured
tile is the best solution followed by a top-quality sheet vinyl or linoleum.
written by Inman News™
================================
January 26, 2011: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010 Charlotte
Statistics for December have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Price Dec 2010 $220,130 vs. Dec 2009 $239,062 (-8%)*
Average Sales Prices Dec 2010 $193,910 vs. Dec 2009 $211,705 (-8%)*
with Current Average Days on Market 114.4 days (6.90 MORE days than last month, 121.3 days)*
New listings Dec 2010 is 2,945 vs. Dec 2009 3,094 (new listings are down by 5%)*
*data comes from Carolina Multiple Listing Services, Inc. January 5, 2011
+Interest Rates have DECREASED from a year ago: Dec 2010 4.71% vs. Dec 2009 5.14% (FANTASTIC time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast January 5, 2011
================================
January 20, 2011: It’s easy to overlook a small leak or slight draft. But these problems have the potential to get
worse very quickly. To prevent a big problem from arising, energystar.gov recommends having a contractor
perform annual check-ups—on the cooling system in the spring and the heating system in the fall. To
remember, you might plan the check-ups around the time changes in the spring and fall.
Here are some things you should expect a contractor to handle:
• Check thermostat settings to ensure the cooling and heating system keeps you comfortable when you are
home and saves energy while you are away.
• Tighten all electrical connections and measure voltage and current on motors. Faulty electrical connections can
cause unsafe operation of your system and reduce the life of major components.
• Lubricate all moving parts. Parts that lack lubrication cause friction in motors and increases the amount of
electricity you use.
• Check and inspect the condensate drain in your central air conditioner, furnace and/or heat pump (when in
cooling mode). A plugged drain can cause water damage in the house and affect indoor humidity levels.
• Check controls of the system to ensure proper and safe operation. Check the starting cycle of the equipment
to assure the system starts, operates, and shuts off properly.
Cooling Specific
• Clean evaporator and condenser air conditioning coils. Dirty coils reduce the system's ability to cool your home
and cause the system to run longer, increasing energy costs and reducing the life of the equipment.
• Check your central air conditioner's refrigerant level and adjust if necessary. Too much or too little
refrigerant will make your system less efficient increasing energy costs and reducing the life of the equipment.
• Clean and adjust blower components to provide proper system airflow for greater comfort levels. Airflow
problems can reduce your system's efficiency by up to 15 percent.
Heating Specific
• Check all gas (or oil) connections, gas pressure, burner combustion and heat exchanger. Improperly operating
gas (or oil) connections are a fire hazard and can contribute to health problems. A dirty burner or cracked heat
exchanger causes improper burner operation. Either can cause the equipment to operate less safely and
efficiently.
Actions You Can Do Yourself
• Inspect, clean, or change air filters once a month in your central air conditioner, furnace, and/or heat pump.
Your contractor can show you how to do this. A dirty filter can increase energy costs and damage your
equipment, leading to early failure.
Source: energystar.gov
---------------------------------
January 12, 2011: We all know now is a great time to buy with low list prices and even lower interest rates,
however, credit scores are just as important especially if you have to borrow the money to purchase a property.
Lenders look at your credit score which can range from 300-850, the higher the credit score the better
Here are 3 easy ways to improve your credit score
1. Pay bills on time
2. Don't get to the edge of your credit limit
3. Don't apply for new credit that you really don't need
Scoreinfo.org, is a new website that helps people understand how credit scores factor in this new era of financial
regulation. As of January 2011, you have the right to receive your score any time a lender makes certain kinds
of decisions -- e.g., if you're denied credit or given credit on less than the most favorable terms a lender offers.
===================
January 3, 2011: Happy New Year! With all the money we spent on presents, parties, and everything else —
who really can afford to let money fly right out the window? So here are some ideas on how to make your
Windows more Efficient...
Do you know in the winter, drafty windows can account for up to 25 percent of our heating bill?
Insulating drapes, interior storm windows, and plastic window insulation kit. Each of these solutions has its own
pros and cons, but they all insulate the same way. They create an insulated air buffer between your home and
the window surface.
Insulated drapes are considered the most attractive option, but experts stress the importance of proper
insulation. Drapes must be flush with the wall to effectively create an air space between the window surface and
the curtains. Improperly installed curtains that let air pass through the sides of the drapes can actually pull heat
away from the room.
Drapes, of course, can be reused and will help reduce utilities costs in every season.
Interior storm windows can be fitted to your windows and are effective at reducing air infiltration. These units
use a fitted pane that often clips into a frame. Pane materials range from the more expensive glass to
polycarbonate plastic. The advantage to interior storm windows is that they can be reused for several years.
Many favor interior storm windows over exterior varieties because they are easier to install will require less
maintenance. According to the U.S. Department of Energy, interior storm windows can reduce heat loss by 25 to
50 percent.
Plastic insulation kits are a very economical choice. Kits include a plastic sheet that is attached to a window
frame with adhesive tape and then stretched tight by applying heat with a hair dryer. The plastic film is made of
vinyl, polyester or polyethylene and can technically be removed and stored for next winter's use. Most
homeowners, however, find these kits to be single season items due to tears in the plastic and the milky
appearance created by the aging plastic.
So which is your best choice? Go with a reusable option like interior storm windows or insulating drapes.
Homeowners that want to realize long term savings should consider upgrading to Energy Star qualified windows.
Energy Star-rated windows will have a substantial upfront cost but are the most efficient way to reduce home
heat loss around windows.
(c) 2010, The Charlotte Observer (Charlotte, N.C.).
-------------------------------------------
December 15, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010
Charlotte Statistics for November have just been released. Contact Jennifer Lew 704-591-5542 for more Real
Estate news.
Average List Prices Nov 2010 $247,369 vs. Nov 2009 $216,507 (+14%)*
Average Sold Prices Nov 2010 $215,239 vs. Nov 2009 $195,244 (+10%)*
with Current Average Days on Market 121.3 days (8.80 day MORE than last month, 112.5 days)*
New listings Nov 2010 is 3,078 vs. Nov 2009 3,614 (new listings are down by 15%)*
*data comes from Carolina Multiple Listing Services, Inc. December 7,2010
+Interest Rates have DECREASED from a year ago: Nov 2010 4.30% vs. Nov 2009 4.78% (FANTASTIC time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast December 7, 2010
------------------------------------
November 30, 2010 Dreaming of a Green Christmas? Tips for an Eco-Conscious Holiday
Use Sustainable Gift Wrap: Consider saving and reusing holiday wrapping paper just as your grandmother once
did. Or wrap your gifts in pretty fabric that can be used for other purposes. "In my family, we re-gift gift bags
again and again," DeLongpre Johnston says. "Pillowcases can also make pretty gift wraps if done right."
Decorate with Energy-Efficient Lighting: While many people still use standard incandescent holiday bulbs,
decorative LED lights are now available in a variety of holiday shapes and colors. In addition to having a much
longer life span than standard lights, LEDs also reduce fire risks because they stay cool to the touch. "This
would be one of the areas where you might spend a little more upfront, but save in the long run," DeLongpre
Johnston says. Want to be even greener? Use light-sensor timers to turn your lights on and off.
Give Consumable Gifts: Most Americans don't need any more stuff or, as DeLongpre Johnston points out, we're
all "stuffed out." So consider giving the gift of services instead, or goods that can be consumed. Some ideas
include massages, pedicures, tickets to sporting events, gift certificates for restaurants and other similar
pampering treats. Other options would be to give consumable gifts that keep on giving all year long like a
membership to a Wine of the Month Club or a monthly delivery of seasonal fruits grown locally. Says
DeLongpre Johnston: "It doesn't mean you have to be any less generous."
Make a Donation in Someone's Name: If someone has a passion in life, giving to an organization that supports
their cause can be very meaningful. Whether you donate a flock of chicks to support a hungry family through
Heifer International or fund the planting of trees through American Forest, you will be giving a gift that gives
back and helps preserve the environment at the same time.
Give the Gift of Time: Schedule time to get together with friends and family for cookie exchanges or other
meaningful holiday events. "We do have the ability as individuals and families to bring whatever intention to
this season that we want," DeLongpre Johnston says. "So we can share meals and share time with one another,
and if we'd like to give each other gifts, we can do that too."
Treecycle: If you have a cut tree, check with your local municipality to find out when they will pick it up for
recycling. Fortunately, you'll be in good company. More than 30 million real Christmas trees are sold in the
United States each year, but more than 90 percent are being recycled for mulch or chipped and used in parks and
other public spaces.
written by RISMEDIA http://rismedia.com/lowes/8355/11360
---------------------------------------
November 22, 2010: Top Ten Selling Tips
1. Repaint Rooms. Paint with a buyer's sensibilities in mind. Use neutral colors throughout your home to lend
continuity from room to room. Paint with light colors to make living areas appear roomier and darker colors for
a cozier feel.
2. Wash and Paint the Exterior. Repainting your exterior increases curb appeal. Spruce it up with a thorough
power washing. If your house's exterior paint has faded, a new coat will add value and attract more house hunters
3. Shine with New Lighting. Bring out the best features of your house with a new lighting layout. A brighter
room will appear more spacious and inviting to potential buyers. Accentuate your house's distinctive elements
with track lighting, table and floor lamps, or wall and ceiling fixtures
4. Organize and De-Personalize. Cleanliness leads to closing. Clear your house of clutter with new storage or
shelving. At the same time, help buyers envision the house as their own by removing personal items like knick-
knacks and photographs.
5. Repair or Replace Window Screens. Fixing sagging, dirty or ripped screens is one of the easiest and most
inexpensive home improvements for home sellers. Take an afternoon and rejuvenate your windows and doors
with just a few simple tools
6. Patch Drywall Dings and Dents Imperfections like drywall divots suggest larger problems with the integrity of
your house. Patching dings and dents is crucial to a fast sell, especially if you plan on painting. Make your walls
flawless before showing the house
7. Unstick Stubborn Doors. Sticking doors are bothersome, and even more so to prospective buyers touring your
home for the first time. With some sanding and varnish, you can quickly eliminate this common irritation.
8. Repair Tile Grout. Make your bath and kitchen look brand new by ridding these rooms of shabby and
damaged grout. Repairing grout could take some time, depending on the magnitude of the project. But the
striking results will be well worth the time spent
9. Upgrade Kitchen and Bath Faucets. Replace faucets to give your kitchen or bathroom a quick facelift. A new
faucet can set a more contemporary aesthetic and pique interest from home buyers. If your current faucets are
leaking or worn, a new faucet is an absolute necessity.
10. Clean Your Gutters. Clogged gutters could make a great house look neglected. Clean your gutters twice a
year. While cleaning, look for trouble areas that need repair like holes and leaking joints. As a convenient perk
for the buyer, install gutter screens.
--------------------------------------------------
November 15, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010
Charlotte Statistics for October have just been released. Contact Jennifer Lew 704-591-5542 for more Real
Estate news.
Average List Prices Oct 2010 $231,491 vs. Oct 2009 $218,050 (+6%)*
Average Sold Prices Oct 2010 $202,840 vs. Oct 2009 $196,204 (+3%)*
with Current Average Days on Market 112.5 days (.30 day MORE than last month, 112.2 days)*
New listings Oct 2010 is 3,875 vs. Oct 2009 4,863 (new listings are down by 20%)*
*data comes from Carolina Multiple Listing Services, Inc. November 7, 2010
+Interest Rates have DECREASED from a year ago: Oct 2010 4.23% vs. Oct 2009 5.03% (FANTASTIC time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast November 7, 2010
--------------------------------------------
November 3, 2010: What it takes to Get a Loan
Lenders loosen their grip, but your credit history will decide whether you get a mortgage, car loan or credit card.
When the financial crisis hit, many banks became tightfisted, and plenty of potential borrowers walked away
empty-handed. But financial institutions have emerged from the recession stronger and ready to lend. "Credit is
available. No question about it," says James Chessen, chief economist for the American Bankers Association.
"Banks are being careful because the economy is still weak, but I don't know a bank out there that's not
anxious to make a loan."
Keep in mind that from mortgages to car loans, your credit history and score matter more than they did prior to
the crunch. Rates are at rock-bottom levels for borrowers with top-tier credit -- generally credit scores above
720. Before you shop rates, get your credit reports at www.annualcreditreport.com and check for errors. And buy
your credit score from Equifax for $7.95 (or get a free score that's similar to the ones that lenders use from
CreditKarma.com). That way you can see where you stand before you apply for a loan.
Mortgages: Stricter Rules
Mortgage lenders want to make loans now, and they may even bid against one another for your business. But
lending standards remain tight, and you must be prepared to produce a mound of paperwork to document your
income and assets.
Rates are as low as they were in the 1950s, so going through the motions could pay off. In mid September, the
average interest rate for a 30-year, fixed-rate conforming loan -- a mortgage of $417,000 or less -- was 4.5%,
according to HSH Associates, a mortgage-tracking firm. The initial rate for a 5/1 adjustable-rate mortgage (a
fixed rate for five years, followed by annual adjustments) was 3.6%.
Fannie Mae, Freddie Mac and the Federal Housing Administration continue to dominate the mortgage market,
setting the standards for the loans that lenders make and sell to investors. So lenders strive to dot every i and
cross every t when they qualify you.
If you're buying or refinancing the mortgage on your primary home, you'll need a minimum down payment of
5% to 10% for a conforming loan or 10% to 15% for a conforming jumbo loan (125% of a metro area's median
home price, up to $729,750). With 20% or more down, you avoid private mortgage insurance, which typically
costs 0.5% to 1.5% of your loan amount per year.
Fannie Mae and Freddie Mac allow a minimum credit score of 620 if you have at least 25% equity in the
property or a score of 660 with equity of less than 25%; you'll get the best rate if your score exceeds 720. The
FHA will soon require a minimum credit score of 580 to qualify with a down payment of 3.5%, but FHA lenders
often impose a higher minimum score of 670.
In addition to your credit, lenders will also scrutinize your ability to pay, starting with your ratio of debt to
income. Monthly housing expenses (principal, interest, taxes, hazard insurance, private mortgage insurance and
association fees) shouldn't account for more than 28% of gross monthly income. Total debt shouldn't exceed
36% of gross income, but in some cases lenders stretch the maximum to 45%.
Chris Bennett, a loan officer with HomeServices Lending, in Charlotte, N.C., says that he surprises borrowers
"all the time" with preapproval of their loan when they aren't expecting it. Even people with lower credit scores
may qualify if they have stable employment, a history of paying rent and credit lines on time, and money in the
bank or in a retirement account.
However, Bennett also counsels some borrowers to delay their home purchase long enough to improve their
credit score, eliminate debt, get a raise and save more money. They might earn a better interest rate, improving
their buying power. Plus, he says, "it's not good to lay out every bit of cash you have if you won't have money
for a rainy day."
Prove it. At a minimum, you must supply your pay stubs for the past 30 days and W-2 forms for the past two
years. Lenders will want to see bank, retirement-account and investment statements for the past 60 days.
Bennett says three types of borrowers will face additional requirements:
If you're self-employed or if 25% or more of your income is from commissions or bonuses, you must provide two
years of tax returns. Lenders will average your income over the past two years to figure your debt-to-income
ratio. If you have pursued opportunities to reduce your taxable income, you may not have sufficient income to
qualify even though you may have a lot of money in the bank. Community banks, credit unions and other
lenders that typically keep their loans on their own books are the best bet for borrowers with low incomes and
high assets, says Bennett.
If you want to rent out your home and buy a new one, you must provide a signed lease for a minimum of 12
months. You can use only 75% of rental income to help qualify for the mortgage, and you must have at least
30% equity in your former home.
If you and your spouse are relocating for work and your spouse doesn't have a job yet, you must qualify for the
loan based on one income unless your spouse has a signed agreement with an employer to begin work within 45
days of closing the loan.
Even if you qualify, you can throw a monkey wrench into the final loan approval if you take on new debt that
could affect your credit score or your debt-to-income ratio. Some lenders pull another credit report just before
closing. Another possible sticking point is the appraisal. Overly generous appraisals helped to fuel the housing
bubble.
by Jessica L. Anderson, Pat Mertz Esswein and Joan Goldwasser from Kiplinger.com
----------------------------------------------
RISMEDIA, October 27, 2010-- Majority of Americans think Buying a Home Is a Good Decision. Despite the
continuing challenges facing the U.S., nearly eight out of 10 respondents believe buying a home is a good
financial decision, according to NAR's eighth annual Housing Opportunity Pulse Survey.
The survey, which measures how affordable housing issues affect consumers, also found job security concerns to
be the highest in eight years of sampling, with 70 percent of Americans saying that job layoffs and
unemployment are a big problem in their area; eight in 10 cite these issues as a barrier to homeownership. The
telephone survey of 1,209 urban and suburban adults in the top 25 metropolitan statistical areas was conducted
for NAR by American Strategies and Myers Research & Strategic Services for NAR's Housing Opportunity
Program.
Some key results:
* Americans continue to believe that buying a home is a good financial decision (77 percent believe strongly or
not so strongly, 68 percent strongly so).
* More than two-thirds of respondents (68 percent) say that now is a good time to buy a home.
* Job insecurity and the lack of jobs continue to be the primary obstacle to home ownership and market
recovery.
* Respondents see the recession and job losses as the main reasons for the foreclosure problem, a shift from last
year when they were more likely to blame homeowners who bought homes they could not afford.
* A majority of renters say that owning a home at some point in the future is either one of their highest
priorities (39 percent) or a moderate priority (24 percent). Just 21 percent of renters say that owning a home is
not a priority at all.
* Frustration with banks is up: now a majority worry that banks have made it too hard to qualify for a home
mortgage loan.
* 51 percent of respondents say foreclosures remain a big or moderate problem in their area. While there has
been a significant drop in the percentage of those surveyed who say foreclosures have increased, 51 percent say
that the rate of foreclosures is about the same as it was last year.
* Most of those surveyed say that it is harder to sell a home in their neighborhood than it was a year ago.
* Looking forward, 70 percent expect real estate sales in their neighborhood to remain about the same over the
next few months. A nearly identical number (69 percent), also expect home values to remain the same.
* Nearly one-quarter (23 percent) are now very concerned about the number of homes and condos for sale in
their area—a number that is up 7 points from last year.
* Most respondents are more concerned about the drop in home values than they are about home costs being too
high. Still, cost remains the significant barrier to many who would otherwise like to buy a home.
http://rismedia.com/lowes/8355/10751
--------------------------------------------
Oct. 12, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010 Charlotte
Statistics for September have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Prices Sept 2010 $231,678 vs. Sept 2009 $219,925 (+5%)*
Average Sold Prices Sept 2010 $203,799 vs. Sept 2009 $196,760 (+4%)*
with Current Average Days on Market 112.2 days (5.50 days LESS than last month, 117.7 days)*
New listings Sept 2010 is 4,043 vs. Sept 2009 4,704 (new listings are down by 14%)*
*data comes from Carolina Multiple Listing Services, Inc. October 7, 2010
+Interest Rates have DECREASED from a year ago: July 2010 4.35% vs. July 2009 5.04% (FANTASTIC time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast October 7, 2010
----------------------------------
Oct. 12, 2010: Energy Efficiency Tax Credit
Residential Energy Property Credit (Section 1121): The new law increases the energy tax credit for homeowners
who make energy efficient improvements to their existing homes. The new law increases the credit rate to 30
percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for
improvements placed in service in 2009 and 2010.
The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-
efficient heating and air conditioning systems.
Click link to read more : http://www.irs.gov/newsroom/article/0,,id=206871,00.html
----------------------------------
Sept 29, 2010: Buying Your First Home
Finding the right first home starts with a price range and a short list of desirable neighborhoods. But there are
many other factors you'll need to consider before investing in what may be your biggest asset.
Yahoo Finance has a great article: http://finance.yahoo.com/how-to-guide/real-estate/12819
----------------------------------
Sept 22, 2010: 10 Reasons to buy a Home NOW
Today marks the first official day of Fall. If I haven't said it once, I have said it many times NOW is a perfect
time to buy a home. With historically low interest rates and fantastic list prices, this is a perfect time to find
your dream home. Below is a link from the Wall Street Journal with 10 Reason to Buy a Home:
http://online.wsj.com/article/SB10001424052748703376504575492023471133674.html?mod=djkeyword
---------------------------------
Sept 7, 2010: 10 Big-Impact, Low-Cost Remodeling Projects
1. Tidy up kitchen cabinets.
Potential buyers do open kitchen cabinets and look inside. Home owners can add rollout organizing trays so
when buyers peek in, they feel like there’s lots of room for their stuff.
2. Add or replace tile.
By retiling very inexpensively, you make a room look way cleaner that it was. Every city has stores that offer $1
to $2 tile, so home owners have to pay only for the low-cost tile and labor to replace a
dated backsplash or add a new one.
3. Add a breakfast bar.
When a wall separates a kitchen from a family room, suggest cutting out an opening to create
a breakfast bar. In this one in particular home, there was a cutout in the wall between the kitchen and living
room. The structure of the cutout was left and an oversized granite breakfast bar was added, and put chairs in
front of it. That cost about $600. This made a huge difference and a fantastic upgrade.
4. Install granite tile instead of a slab.
Everybody is hot for granite kitchen countertops, but that can be a $5,000 upgrade. Instead, home owners can
put in 12-inch granite tiles for about $300 in materials and get very high impact for little money.
5. Freshen up a bathroom without retiling.
With a dated bathroom, a recommendation would be putting in a new medicine cabinet for $100 to $150, light
fixtures for about $100, a faucet for $50 to $75, and a vanity for $200 to $300.
And instead of replacing the tile, the existing grout can be lightly scraped and regrouted, which leaves a haze
that can be buffed out and will make the tile look brand new. Also install glass shower doors. A French door adds
a lot of panache and elegance for $250, and people will notice the door, not the tile. With all that, you’ve done a
bathroom remodel for $1,000 to $2,000.
6. Freshen up the basement.
If home owners have cement block or poured concrete walls in the basement, suggest they have a contractor fill
in cracks with hydraulic cement and then paint with waterproofing paint. They can then add a top coat to add
color. They can also paint the basement floor with a good floor paint, which spiffs it up. The basement may not
be finished, but it’s no longer a damp dungeon.
7. Add a room.
Look for large spaces that can be enclosed to create a new bedroom for just the price of creating a wall. One
time, half-wall to an office was closed off and a door added to the other side of the room, thus creating another
bedroom. That $400 procedure, which took a contractor one day, netted about $40,000 in the sales price. You
can also add bedrooms inexpensively. In a two-bedroom house, there was an archway that led to a third room
that was used as a den. It had a dry bar where there would have been a closet, so we took out the dry bar and
created a closet so the owners had a third bedroom.
8. Spruce up cabinet fronts.
Suggest home owners update tired-looking kitchen cabinets. Reconditioning is the least expensive move for
under $1,000. If the wood is starting to look shabby from use or contaminants in the air, take out the nicks and
scratches, recondition it with oil, and put on new hardware. For $1,500 to $4,000, owners can replace the cabinet
doors and drawer fronts, and for $4,000 to $12,000, they can have all the cabinets refaced. With refacing, owners
can change the color of the cabinets by replacing the door and having a new skin put on the boxes. If they have
oak cabinets today, they can have cherry the next day.
9. Replace light fixtures.
In a foyer and in bathrooms and kitchens replacing overhead light fixtures provides a lot of pop for a little
money.If the kitchen has track lighting, spend $450 to $600 to have an electrician replace it with recessed
canned lights on a dimmer switch to add ambience. For about $700, install pendant lights over a kitchen island
or peninsula.
10. Tech-up the garage.
Sometimes replacing the garage door opener with a remote touch pad entry system can cost about $425 but it
makes it look like a high-end system.
www.REALTOR.24 REALTOR® JANUARY 2010 www.REALTOR.org/realtormag org/
---------------------------------------------
Sept 7, 2010 Tips for Getting Your Home Ready for Fall
Now that summer is beginning to wind down and cooler weather is on its way, it’s time to get some of the routine
home maintenance out of the way before it gets too cold. If you don’t prepare your home in the fall season, and
clean up the yard, when spring comes along, you could be left with an unsightly mess. Here are some tips to
prepare your home for the cold months ahead.
Clean out the rain gutters – If you have rain gutters on your home, fall is the best time to get them cleaned.
Cleaning rain gutters isn’t that difficult of a task, it’s just a tedious one. The easiest way to get rid of the junk is
to use a high pressure hose, and then use a small trowel to get rid of the rest of the debris. Once you have
gotten rid of all the debris, give your gutters a final spray.
Take care of your pots and planters – If you’re like most homeowners, you have some planters or potted plants
sitting around the yard. Before it gets too cold, be sure to empty the dirt out of any pots or planters and put
them in a place where they won’t freeze. If you don’t empty or store your planters, there’s a good chance they
will either crack or fall apart.
Rake the leaves – Keeping your yard free of leaves is an important task for homeowners. If you have numerous
trees in your yard and piles of leaves that you don’t take care of, you might find that your grass is dead once
spring arrives. Leaves can smother your lawn and replacing a lawn can cost a lot of money, so it’s a good rule of
thumb to get rid of the leaves in the fall.
Weed and feed the lawn – The best time to weed and feed the lawn is in the fall. If you add weed killer in the
fall, the weeds will store the poison in their roots during the winter season, and will prevent a breakout in the
spring. By feeding your lawn with fertilizer in the fall, you are promoting healthy root growth, and this will help
your lawn grow greener and faster in the spring.
Give your tools a tune-up – Once you have finished your fall maintenance chores, make sure you clean your
tools and store them in a dry place so they will be in working order once spring arrives. Be sure to store metal
shovels with the head upwards, as this will help detour rusting when it dries. Sheers need to be oiled up, wheel
barrels should be left upside down and don’t forget to spray off the underside of the lawnmower.
Daily Real Estate News written By Paige Tepping from RIS Media
------------------------------------
August 30, 2010 DIY Painting 101
Looking to spruce up your home, but don’t know where to start?
From molding to choice of color, there’s a lot to consider before dipping your brush in the paint. Does a room
really look smaller with a darker color on the walls? Should your ceilings be white? Do you want to add an accent
wall?
Here's some tips to get you started:
Getting Started
• Size up your room. How you use color depends on where you use color. Each room has its own unique elements
and function. First, think about the structure of the room. Consider its shape and size. A lighter color can make
a small room feel more spacious, while a darker color can help an immense room seem cozier.
• Take into account any architectural details, such as molding, trim, columns, and brackets. What's attractive
and what's not? Varied intensities and hues can complement architecture, furnishings, and art. Remember,
paint can accentuate a room's features or hide them.
• Your choice of color also depends largely on function. Will the main purpose of the room be eating, sleeping,
working, entertaining, or something else entirely? A warm hue in the living room gives a more comfortable and
inviting atmosphere for guests than a cooler color.
Selecting Interior Paint
• Before choosing your paint, think about where your room fits into the scheme of things. Where is it situated in
relation to other rooms? Is it a high- or low-traffic area? Flat paint, for instance, is best suited for ceilings, walls,
surface imperfections, and anywhere else that a muted low-reflecting surface is desired. Because it takes more
effort to remove stains from this type of paint, a flat finish is best suited for the low-traffic areas of your home.
• Use low-luster, satin, and eggshell paint on areas where a sheen is desired. These paints are easier to clean
than flat paint and hold up better under repeated washings. They withstand the wear and tear of high-traffic
areas-hallways, woodwork, kitchens, baths, children's rooms, and playrooms-more easily than other finishes.
• Semigloss and high-gloss paint and enamel are best suited for banisters, railings, shelves, kitchen cabinets,
furniture, doorjambs, windowsills, and any other surface you wish to accentuate. But be careful-the higher the
gloss, the more it emphasizes any surface imperfections.
Choosing a Palette
• Having trouble deciding on your paint palette? Choose a design direction. If you've already chosen an interior
décor or if you're working with a room that's already furnished, focus on a favorite fabric color, piece of art or
furniture, or other object.
• Have color confidence-don't be afraid to paint bold and bright. If your room is unfurnished, a vibrant color can
fill it until you can.
• Consider yourself above all. Paint color should reflect your mood and personality. What are your favorite
colors? If you're having trouble selecting a color, try looking in your closet. The colors you enjoy wearing are the
ones that make you feel good. You are the one who has to live with the color so live with the shades you love.
Making Your Purchase
• Water versus oil. When selecting an interior finish, try choosing a water-based enamel instead of an oil-based
gloss paint. Water-based gloss enamels have less odor than conventional oil-based paints. They are much easier
to clean up after, and they wear better over time.
• Don't purchase low-quality paint. High-quality paint performs better for a longer period of time. It's less prone
to yellow as it ages, goes on smoother, and won't leave brush marks. It is also easier to wash and dirt resistant.
• Purchase test quarts to review your color and finish selections at home. Paint a piece of scrap material such as
cardboard, or even a portion of your wall, to study the effects of various light conditions.
Daily Real Estate News written By Stephanie Andre from RIS Media
========================
August 23, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010 Charlotte
Statistics for July have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Prices July 2010 $247,660 vs. July 2009 $238,629 (+4%)*
Average Sold Prices July 2010 $217,320 vs. July 2009 $212,977 (+2%)*
with Current Average Days on Market 105.6 days (8.9 days LESS than last month, 114.5 days)*
New listings July 2010 is 4,995 vs. July 2009 5,195 (new listings are down by 4%)*
*data comes from Carolina Multiple Listing Services, Inc. August 6, 2010
+Interest Rates have increased from a year ago: July 2010 4.50% vs. July 2009 5.25% (FANTASTIC time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast August 6, 2010
=========================
August 16, 2010: This coming Saturday, August 21st is the 2010 Trail Run Challenge, presented by Jesse
Brown's Outdoors at the U.S. National Whitewater Center.
This Event is to raise funds for the Leukemia and Lymphoma Society efforts in the Carolinas. We need your
participation to reach the LLS's goals.
Sign up at www.trailrunchallenge.com or http://www.active.com/running/charlotte-nc/trail-run-challenge-
presented-by-jesse-browns-outdoors-at-the-us-national-whitewater-center-2010
This years event has Run For Your Life designing and managing the course, Jesse Brown's Outdoors providing
AWESOME prizes for age group winners, as well as great raffle items from brands like Mountain Khakis,
Outback Steakhouse, Timex Ironman and more. The only thing missing at this point is you! So sign up today!
This is a rain or shine event. Join us in the fight against cancer and remember to bring a friend!
Jennifer Lew is a Sponsor for the Trail Run Challenge
==========================
August 6, 2010 The Dr. Loan is back. This is a great product that allows for Dr’s and DDS’s to get approved up
to 95% LTV even if they carry large student loan balances. This loan can be done on Owner Occupied
Properties for purchase or refinances.
95% LTV up to $850K loan amounts NO Monthy PMI
Eligible Clients:
- Medical Residents
- Existing or newly licensed Medical Doctors (MD)
- Doctors of Dental Science (DDS)
- Doctors of Dental Medicine (DMD)
- Dental Surgeons specializing in oral and maxillofacial surgery (DMD)
- Doctors of Optometry (OD)
- Doctors of Ophthalmology (MD)
- Doctors of Podiatric Medicine (DPM)
- Doctors of Osteopathy (DO)
-------------------------------------------
July 26, 2010: Staying Green through the Move
RISMEDIA-Used mattresses are the bane of a landfill's existence. They take up a lot of space, give off noxious
gases as they decompose, and their springs can damage the machinery used to flatten them.
So what if, for a small fee, you could have your old mattress picked up by an environmentally friendly charity,
which would then tear it apart and find new uses for about 90 percent of the materials?
Would you do it?
The Mustard Seed of Central Florida — a furniture and clothing bank for families who have lost everything — is
hoping the answer is yes.
The 25-year-old non-profit already has begun recycling paper as well as used appliances, copiers, computers and
phone systems it once had rejected.
"We want to be good environmental stewards," said Michelle Lyles, the charity's new executive director. "And
we want to find a way to earn sustainable revenue so we can continue our mission of helping people."
Last week the Mustard Seed launched a 90-day pilot project to recycle mattress materials, selling off nearly all
of the components and becoming one of only a handful of businesses in the country to do so. If it's successful,
the enterprise could help create blue-collar jobs, earn revenue for the cash-strapped charity and get more beds
to families who need them.
"Before, when mattresses were donated," Lyles said, "we kept the ones that were in good shape and we threw
the bad mattresses away."
The practice not only placed a burden on the landfill, but it also cost money to haul the mattresses away. Worse,
it left the charity with a perpetual shortage of beds for needy families. But by issuing a call for all used
mattresses — good and bad — the charity expects to end up with more beds that are clean and sturdy enough to
be reused immediately.
The standard, Lyles said, is, "If it's something we would sleep on, we'll give it to our clients. If not, it's going to
get recycled."
The recycling process involves stripping the mattress down to its individual components — the quilted topper,
the polyurethane foam, the steel springs, the wooden frame and a rough-hewn interior pad that feels as if it is
made of horsehair. Those components, in turn, can be baled and sold for use in everything from carpet pads to
garden mulch to car engines.
"It can sometimes be difficult, but usually the components can be used somehow," said Celia Walker, project
manager for the St. Vincent de Paul Society in Eugene, Ore., a pioneer in the mattress-recycling business. That
organization, which started recycling mattresses 11 years ago, is now one of the largest such recyclers in the
world, and its representatives have been in Orlando helping the Mustard Seed learn the process.
Although a lot of businesses will strip a cotton top cover off a mattress, recover it and sell it as rebuilt, that is
not actually recycling, Walker said. For one thing, the material stripped off is typically thrown away. Rebuilt
mattresses — a potential next step for the Mustard Seed after recycling — involve stripping old mattresses down
to just metal and wood, then adding all new soft materials.
In Eugene, the mattress-recycling effort brought in $1 million in revenue last year.
Lyles doesn't anticipate that kind of return anytime soon, but the program is a major part of a whole new
direction for the Mustard Seed, whose founder, Carol Kane, retired in February after questions about how the
charity was run. Since then, Lyles has looked for opportunities not only to benefit the environment but also to
make the charity self-sustaining.
"It's a mantra of our times," said Terrence McDonald, executive director of Eugene's St. Vincent de Paul
Society, which earned $29 million last year for everything from its thrift stores to handcrafted glass art from
recycled windows.
"The message that is being driven home is that non-profits can't expect the same (donations) they received last
year or two years ago," he said. "We all need to find new and better ways to do things and raise money."
-------------------------------------------
July 19, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010 Charlotte
Statistics for June have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Prices June 2010 $241,039 vs. June 2009 $244,316 (-1%)*
Average Sold Prices June 2010 $215,559 vs. June 2009 $218,728 (-1%)*
with Current Average Days on Market 114.5 days (1.5 days LESS than last month, 116 days)*
New listings June 2010 is 4,692 vs. June 2009 4,551 (new listings are up by 3%)*
*data comes from Carolina Multiple Listing Services, Inc. July 7, 2010
+Interest Rates have DECREASED SIGNIFICANTLY from a year ago: June 2010 4.74% vs. June 2009 5.42%
( a FANTASTIC time to buy!)
+source: Freddie Mac, National Association of Realtors Forecast July 7, 2010
------------------------------------------
July 12, 2010: The Right Decisions Can Save Money During a Move -Moving a residence is often fraught with
high emotions and involves a to-do list a mile long. So, it's tempting to give only passing attention to hiring a
mover and the related incidental costs.By following the below tips, you can save some big money!
That could be a mistake — for your wallet and your peace of mind.
Moving can be quite expensive. A typical full-service interstate move costs about $4,300, while the same in-state
move might cost about $2,500, according to the American Moving & Storage Association.
And while the moving industry has many fine companies, it is notorious for fraud and dirty tactics by so-called
rogue movers.
Here are tips on making your move with lower costs and less hassle.
CHOOSE A TYPE OF MOVE: You have three basic choices: do-it-yourself, full service and a relatively new
hybrid of the two. Going it alone is cheapest, costing the rental price of a truck, gasoline, packing materials and,
perhaps, pizza and beer for friends you rope into helping.
With full-service moves, moving within a state is charged by the hour, while moving across state lines is charged
by weight and mileage.
With a hybrid move, a mover will drop off a large container at your home for you to pack. It will then load the
container onto a truck, drive the belongings to your new location and drop off the container for you to unload.
Because you're doing the manual labor of packing and unpacking, it's far less costly than a full-service move.
HIRE A QUALITY MOVER: If you hire help, get at least three price quotes and do homework. Seek
recommendations by talking with family and friends, even your Facebook circle. Investigate a company's
reputation with the Better Business Bureau (bbb.org), Yelp.com and possibly the paid-membership site Angie's
List (angieslist.com). Check a company's complaint history at the federal government site, ProtectYourMove.
gov.
"People think a good reputation equals expensive, but that's not true," said Laura McHolm, co-founder of
NorthStar Moving in Los Angeles. "You don't get a good reputation by overcharging people."
For interstate moves, a company's ProMover certification with the movers association is a good sign. The
organization in January 2009 started screening movers based on seven criteria. It kicked out some 220 of 3,100
members over the past two years because they didn't measure up, said spokesman John Bisney. See "Find a
ProMover" at Moving.org.
"The old rubric 'You get what you pay for' is true more often than not," Bisney said.
Look for two things: A full-service mover should visit your home in person, not give a quote over the phone or
online, and should provide a written estimate, experts say.
DECLUTTER: No matter what type of move you're making, taking less stuff is cheaper and less hassle. Set up a
staging area, perhaps in a garage, with various piles, such as throw out, recycle, donate and sell.
"If you really love those go-go boots from the 1960s but will never wear them again, take a picture of them and
get rid of them," McHolm said. For many items, use the rule of thumb, "If you haven't used it in a year, you
probably don't need it."
BE FLEXIBLE: Like airline fares, moving rates depend on when you book. The busiest time for movers, and
thus the most expensive time for consumers, is summer weekends near the 15th and 30th of the month.
If you have time flexibility, ask what rates would be for different days or seasons. If you have extreme
flexibility, ask about moving standby: waiting until the mover has extra space and needs to fill a truck.
SAVE ON BOXES: Buying new boxes from a moving company is the most expensive choice. Ask if you can buy
used boxes from your moving company. NorthStar, for example, gives customers 25 percent off used boxes and
then refunds 25 percent if they return boxes in usable condition.
Cheaper yet is finding free boxes, ideally from somebody who just moved. Ask your real estate agent to connect
you with other clients who recently moved. Or look on Craigslist.org. Specialty boxes, such as wardrobe boxes,
might be cheaper to purchase at a do-it-yourself moving store, such as U-Haul, than from your mover.
SAVE ON PACKING MATERIALS: If you're packing yourself, fill suitcases, laundry baskets and plastic
containers with unbreakable items. Use pillows, scarves and towels to wrap fragile belongings. And you might as
well empty your paper shredder into a box to add cushion.
MAIL BOOKS: If you have many books, pack them yourself and ship them at the postal media mail rate. It
might be cheaper than paying a mover. A 70-pound box would cost less than $30. You can't send anything with
advertisements, so magazines are out. Search USPS.com for "media mail."
CONSIDER CONSOLIDATION: For long-distance moves, ask about consolidating your stuff on a truck with
other people's. Most homeowners can't fill a full-size moving van. You might have to be flexible on delivery
dates and times, but consolidation can be cheaper. "Most times it's a huge price difference," McHolm said.
INSURE IT: Check your homeowner's or renter's insurance policy to determine whether it provides coverage for
your belongings while in transit. If not, you'll probably want more than the basic free valuation coverage a full-
service mover provides. The standard valuation is 60 cents per pound per item. That means breaking a 10-pound,
$1,000 stereo system would net you $6. You'll want full replacement-value insurance, which reimburses you
what it will cost to replace broken items. But don't necessarily buy that insurance from the moving company.
Moving insurance is likely cheaper from a third party, such as MovingInsurance.com, McHolm said.
Be aware that you probably cannot get insurance on boxes you packed yourself. A mover must pack them.
BE PREPARED: Plot out where furniture and boxes will go. The less time movers spend rearranging, the less
expensive it will be.
In urban areas, reserve a space or two in front of your new home for the moving truck by parking your own
vehicle there ahead of time. If the movers have to park too far away to unload, you could incur a "long carry"
surcharge, McHolm said.
STAKE YOUR CLAIM: If you're moving for a job, negotiate the best relocation package you can. Unreimbursed
expenses might be tax-deductible. For details, see Publication 521 Moving Expenses at IRS.gov.
TIP: Tipping each mover $3 to $5 per hour is customary, said Stephen Coady, marketing manager for Gentle
Giant Moving Co. in Somerville, Mass.
For in-depth information on choosing a mover, see the free, downloadable "Make a Smart Move" available at
Moving.org.
MOVING RIPOFFS:
—Furniture nabbing. A mover essentially holds your belongings hostage, demanding a higher payment to
release them.
—Lowballers. Beware of lowball price quote. They could end up costing you as the mover adds various surcharges.
—Instant quotes. Be wary of phone or Internet estimates. Get written, in-home estimates.
—Large down payment. Be suspicious of carriers seeking large deposits. They might take the money and run.
Legitimate movers require no deposit or a small "good faith" down payment.
Written By Gregory Karp
------------------------------------------------
July 5, 2010: After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax
Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies
only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The
legislation is designed to create a seamless extension. The new closing deadline for eligible transactions is now
September 30, 2010. There will be no gap between June 30 and the date the President signs the bill into law.
http://www.realtor.org/press_room/news_releases/2010/07/tax_flood_credits
----------------------------------------------
June 14, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010 Charlotte
Statistics for May have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Prices May 2010 $238,736 vs. May 2009 $223,470 (+7%)*
Average Sold Prices May 2010 $212,454 vs. May 2009 $199,243 (+7%)*
with Current Average Days on Market 116 days (6 days LESS than last month, 122 days)*
New listings May 2010 is 4,744 vs. May 2009 5,080 (new listings are down by 7%)*
*data comes from Carolina Multiple Listing Services, Inc. June 7, 2010
+Interest Rates have increased from a year ago: May 2010 4.79% vs. May 2009 4.91% (STILL a Great time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast June 7, 2010
--------------------------
June 4, 2010: Tips to Stay Cool This Summer
With the official start of summer just around the corner, DTE Energy is offering the following tips to help
customers save money and keep cool:
Around the house
--Close blinds, shades and curtains to keep summer heat out.
-- Keep the fireplace damper and doors tightly closed to prevent cooled air from escaping.
-- Run the dishwasher in the cooler part of the day when the lower temperature can better offset the heat and
humidity the appliance will produce.
Air conditioning
-- Set the air conditioner thermostat at the highest comfortable setting. When leaving home for more than five
hours, raise the thermostat five to 10 degrees. Raising the thermostat just a couple degrees can cut cooling costs
by as much as five percent.
-- Regular maintenance is important to operating air conditioners efficiently. Check filters at least once a
month. Dirty filters cause air conditioners to work harder and use more energy. Many filters can be removed,
washed and dried, and reinstalled. Check the owner's manual or contact the manufacturer for more information.
-- Keep air conditioning units free of obstructions, inside and out, so air can flow freely. Outdoor units should be
free of bushes, and leaf and grass debris. Indoors, move furniture and draperies to prevent blocking window
units, vents and air returns.
-- Position window air conditioners on the shaded side of the house, away from direct sunlight. Window units
generally are not designed to cool more than one room. Close the doors leading to uncooled parts of the house
for more efficient cooling.
-- In homes with central air conditioning, leave room doors and air registers open so the system can operate
effectively.
Fans
-- Make sure ceiling fan blades rotate clockwise in the summer months to draw cooler air up from the floor.
-- A window fan in an apartment or one-story home should be put in a window on the warmest side of the
structure; in a two-story home, put it in an upstairs window. Fans draw cooler air inside during the night and
circulate air during the day. Make sure draperies are secured away from the fan for better air circulation and
safety.
-- Prevent heat build-up in the attic by opening attic vents and making sure any lower vents are not blocked. A
cooler attic benefits the living area below. An exhaust fan or whole-house fan mounted in the attic will pull hot
air out of the attic and living areas and draw cooler air in.
-- Use an exhaust fan to blow hot air out of your kitchen while cooking. The savings in your cooling costs will far
outweigh the fan's electricity use.
----------------------------------------
May 28, 2010: Mortgage rates are at a all time low, Thanks for Europe's Debt Crisis. The current average rate
for a 30 year fixed loan is 4.87 percent, according to Bankrate.com. That's the lowest rate for the 30 years since
Bankrate started keeping track 25 years ago.
To read more, click here: http://www.cnbc.com/id/37315821
------------------------------
May 21, 2010: 7 Questions to Ask Before Buying a Condo
You've found your dream condo, and you're ready to relax among the mango trees and swaying date palms. Hold
everything. To keep from getting stuck with a lemon, you've got to do some homework. Here are the seven most
important questions you need to ask before buying a condo.
1. "What's the Beef?"
Take a look at the minutes of the condo association board meetings to see what the owners have been griping
about. If everyone was complaining about the faulty plumbing or the gardener's absence, you know that the
complex is having management difficulties. Even if there aren't any complaints, reading the minutes will reveal
the sorts of projects that are under way at the complex -- projects the seller may have neglected to mention.
2. "Who's Been Naughty and Who's Been Nice?"
Find out the delinquency rates of present owners. If people aren't paying their association dues on time, that is
either a sign of discontent or an indication that the association might be underfunded.
3. "How Much Is In the Repair Fund?"
Ask if the community has done a reserve-fund review in the past five years. Lester Giese, the author of The 99
Best Residential & Recreational Communities in America, recommends the following formula: If the complex is
one to 10 years old, the reserve fund should have 10% of the cost of replaceable items (roofs, roads, tennis
courts, etc.). Between 10 and 20 years old, the repair fund should be at 25% to 30%. At 20 years, that amount
should be 50% or above. Residents who brag that they don't pay much in maintenance may be in a complex that
either is not being kept up well or is living beyond its means.
4. "Can You Cover Me?"
If you look at nothing else, get a copy of the certificate of insurance, which is a summary of the association's
policy. First see if the replacement costs covered by the policy are an accurate estimate of the cost of rebuilding.
Then make sure that the policy has a building-ordinance clause, which means that the insurance will cover the
cost of bringing the building up to code if there is any rebuilding to be done. On older buildings, there may have
been many code upgrades since the time of construction. Finally, make sure that you understand exactly what
the association policy covers and what you are responsible for. The smart condo owner will insure his or her
personal belongings, along with any other items within the unit that are not covered by the association's policy.
If you have trouble understanding the insurance lingo, take the insurance certificate to an agent whom you
trust and who understands the state laws.
5. "Does the Association Present Any Legal Problems?"
Buying a single-family home without a lawyer is no big deal for many people. But with a condo, there's so much
more involved. Contact a local real estate lawyer and have him or her go over the bylaws of the association. Do
they make sense? Are they consistent with the state laws? Giese, the author, once found that the association
bylaws of a large garden-style condo complex had been lifted from the books of a high-rise condo, leaving
confused tenants with rules about shared hallway space and the correct use of garbage chutes. Benny Kass, a
Washington real estate attorney, recommends that you also have your lawyer screen the association at the local
courthouse, to see if any owners have filed suit against it.
6. "Is the Complex Renter-Friendly?"
If the renter population is over 10%, there should be clear rental policies, either listed in the bylaws or tacked
on as an amendment. Does the management company find renters for you? If so, do they get enough good
renters? Ask other tenants about their experience. In addition, ask to see the association's rental lease, and
have a real estate lawyer look it over. Keep one thing in mind, though: An association can change its bylaws to
prohibit or restrict renting at any time. The more owners who rent, the less chance that will happen.
7. "Am I My Community's Keeper?"
Watch out for a condo whose owners manage the place themselves. Although many are operated efficiently, self-
management can lead to more hassles for owners -- especially those who live thousands of miles away. If the
complex is professionally managed, check out the management company as thoroughly as you check out the
association. Ask other owners. Ask people in nearby buildings. And be sure to interview the day-to-day manager
directly. If you hook up with a bad manager, you can be sure of this: Your dream condo will keep you up at night.
------------------------------------
May 14, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2010 Charlotte
Statistics for April have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Prices April 2010 $225,108 vs. April 2009 $228,550 (-2%)*
Average Sold Prices April 2010 $201,410 vs. April 2009 $201,352 (EVEN)*
with Current Average Days on Market 122 days (4 days MORE than last month, 118 days)*
New listings April 2010 is 5,624 vs. April 2009 5,050 (new listings are up by 11%)*
*data comes from Carolina Multiple Listing Services, Inc. May 7, 2010
+Interest Rates have increased from a year ago: April 2010 5.06% vs. April 2009 4.78% (STILL a Great time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast May 7, 2010
-------------------------------------
May 7, 2010: CNNMoney.com reports that April Jobs have had the best gain in the last 4 years.
There was an increase of 290,000 jobs in the month of April, which is suprisingly better than the revised 230,000
jobs added in March. It was the largest number of jobs added to the labor force since March 2006.
After nearly two years of job losses, the economy has now added jobs in five of the last six months. With upward
revisions for both March and February, there has been a gain of 573,000 jobs since the start of the year.
http://money.cnn.com/2010/05/07/news/economy/jobs_april/index.htm
-------------------------------------
April 30, 2010: Tax Credit not deterring Home Buyers
Home buyer tax credits expiring today and is unlikely to deter home purchasing activity as consumers grow
more confident, according to a survey released on Wednesday.
Among consumers shopping for homes, 65 percent said the end of the tax credits will have little or no effect on
their interest in purchasing a home, according to the survey, which was conducted by Prudential Real Estate and
Relocation Services, part of Prudential Financial. Click the link below to read more.
http://finance.yahoo.com/news/Tax-credit-end-not-deterring-rb-4219545540.html?
x=0&sec=topStories&pos=3&asset=&ccode
-----------------------------------
April 9, 2010: Nearly two-thirds of Americans think the time is right to buy a house, with a majority believing
prices will be the same or higher over the next year, according to a Fannie Mae survey released Tuesday.
Click here to read more:http://www.cnbc.com/id/36192494
--------------------------------------
March 26, 2010: Did you know that you can get help for FREE to prevent Foreclosure? Most people are
embarrassed about even talking about the possibility of Foreclosure but talking about it could help you prevent
it. Here are some very helpful websites that give you assistance FOR FREE! Please keep in mind in the state of
NC, it is illegal to charge someone for advice regarding Foreclosure.
www.makinghomeaffordable.gov
www.fightncforeclosure.org
www.nccob.org
www.hopenow.com
www.nchfa.com
www.unitefamilyservices.org
---------------------------
March 19, 2010: Keep our Libraries Open - YOU Can help! 12 of our area libraries are scheduled to close on
April 3rd. These libraries include many that you live near, including Morrison Regional, Myers Park, Scaleybark
and the Carmel branch libraries. Donate what you can, click www.cmlibrary.org/donatenow
News Release
Library Board passes motion to lay off 148, close 12 libraries
On Thursday, March 18, the Charlotte Mecklenburg Library Board of Trustees approved a plan to lay off 148
employees and close 12 library branches in order to absorb a $2 million reduction in funding from Mecklenburg
County.
The branches that will close under the plan are: Beatties Ford Road, Belmont Center, Carmel, Checkit Outlet,
Cornelius, Hickory Grove, Independence Regional, Mint Hill, Morrison Regional, Myers Park, Scaleybark, and
Sugar Creek.
It will take approximately two weeks to complete the closings, with the selected branches closing their doors at
the end of the business day on Saturday, April 3.
Prior to the board’s decision, several community members made appeals to save those libraries. Friends of the
Library Chair Harriet Smith was one of those citizens and she issued a challenge to the community to raise the
$2 million dollars, or at least a significant amount, in order to avoid lay-offs and library closings for this fiscal
year.
Contributions received by March 24, 2010 will help lessen the severity of immediate library service reductions,
and even after that date all contributions will continue to help us provide the best possible library services to the
more than 17,000 adults and children we serve each day.
Library Board of Trustees chair Robin Branstrom cautioned that she did not want to get library employees'
hopes up, however, she suggested that the termination notice letters to laid-off employees be changed to add the
phrase, “unless circumstances change.”
Library administration cautions that even if the funds are raised to save Charlotte Mecklenburg libraries
through June 30, there is no guarantee for fiscal year 2011. There is also no guarantee that employee positions
and those libraries that were set to be closed will be saved for this fiscal year (2010).
Library closing decisions were made based on the overall cost of library operations, usage levels, proximity to
other branches and library size.
Phone calls will be made to those 148 staff identified in the lay-off process, followed by official letters. The
library will use its Reduction in Force (RIF) policy to determine layoffs.
In addition to fewer locations, hours and staff, library customers will notice other budget impacts, including less
frequent building maintenance, more limited technology resources, and longer wait times for books and other
materials.
The Library Board of Trustees voted at their regular meeting on March 18 at 12 p.m. in the Francis Auditorium
after hearing comments from members of the public. County Manager Harry Jones met with the board prior to
the meeting at 11:30 a.m.
To keep the public aware of budget updates as they occur, the Library has created a special budget page on its
website. Go to www.cmlibrary.org, click on "About Us," and then "Budget" to stay informed.
Those interested in making a financial contribution can visit www.cmlibrary.org/donatenow.
Those wishing to volunteer or learn other ways to support the library can go to www.cmlibrary.org/support.
Decisions on how Mecklenburg County taxpayer dollars are allocated to Libraries and other County-funded
agencies are made by the Board of County Commissioners. Any citizen may contact their County Commissioner
by visiting www.charmeck.org
http://www.charlotteobserver.com/2010/03/19/1322969/library-patrons-try-to-save-12.html
---------------------------------------
March 12, 2010: Short sale BEWARE!! It is illegal for companies to charge up front fees for foreclosure
assistance services in the state of NC. Lately, it seems that several companies are popping up to "help"
homeowners or offering to negotiate your short sales for a fee. They aren't worth the money they charge and if
something goes wrong, you will and your Realtor will be the one who takes the fall. Save your money now and
work with a Licensed Real Estate Professional. Contact Jennifer Lew for more information, 704-591-5542.
----------------------
March 5, 2010: 8 tips for First-Time Home Buyers
"Home ownership remains a good investment and a big part of the American dream,” says Ethan Ewing of Bills.
com. “You may be able to save thousands on your piece of that dream by buying a house this year -- but you
must act quickly."
Here are some tips for first time home buyers....
1. Double-check your credit report. The mortgage industry meltdown means the best deals go to buyers with
spotless credit. People with damaged credit might not be able to get a home loan at all, or may face high interest
rates. "Before starting house-hunting, check your credit report to be sure it does not show any incorrect
information,” says Ewing says. “If it has an error, dispute it immediately and make copies of evidence regarding
the error to discuss with your mortgage lender.” Knowing your credit report information can make a huge
difference when you're buying a home.
2. Talk to mortgage lenders. Ask friends and relatives for references to reliable mortgage lenders. Be sure the
lender you choose has the appropriate state licenses. Before you buy a new house, check rates and offers from
several mortgage professionals. Credit scores do not decline if multiple similar credit report requests are
submitted within a close time period (usually a few weeks), so it pays to shop around.
3. Buy a home while house prices are still low. Home prices have increased slightly since the beginning of 2009,
but they are still about 13 percent lower than they were a year ago. That means now is an excellent time for first
time home buyers to invest in real estate.
4. Buy a new house when interest rates are good. Mortgage interest rates have dropped again this fall, to about 5
percent annually for a 30-year fixed-rate mortgage. Again, this means it's an excellent time for first time home
buyers to invest in property.
5. Make sure you have enough in savings. A down payment is essential today. Ideally, first time home buyers
will put down 20 percent of the purchase price. If not, ask the mortgage lender about options before buying a
new house.
6. Know the costs of home ownership. The principal and interest on a mortgage payment is only the beginning.
Escrow payments - money set aside by the mortgage holder to pay insurance and taxes - and private mortgage
insurance, if it is required, can add a few hundred dollars or more per month to a mortgage payment. In
addition, home owners must pay for repairs and maintenance. A rule of thumb is to budget 1 percent of the
home's purchase price per year for upkeep.
7. Be wary of "bargains." To make owning a home easier, remember that some bargains on houses today are
"fixer-uppers" or homes sold "as is" because of foreclosure. Invest in a home inspection (about $400) before
buying a new house. The inspection will highlight any faults in the home and help estimate the cost to remedy
those problems.
8. Be wary of "short sales." A short sale is a home sale where the owner must sell the home for less than is
owed on the current mortgage. Because the bank must approve any such sale, a "short-sale" home may have a
sales and negotiation process that is too lengthy to be completed before the tax-credit deadline. Additionally,
short sales are usually "as is," which may carry more risk than makes sense for many first-time buyers.
---------------------------
Feb 26, 2010: 7 Important Facts about Claiming the First-Time Homebuyer Tax Credit
If you purchased a home in 2009 or early 2010, you may be eligible to claim the First-Time Homebuyer Credit,
whether you are a first-time homebuyer or a long-time resident purchasing a new home.
Here are seven things the IRS wants you to know about claiming the credit:
1) You must buy or enter into a binding contract to buy -- a principal residence located in the United States on or
before April 30, 2010. If you enter into a binding contract by April 30, 2010, you must close on the home on or
before June 30, 2010.
2) To be considered a first-time homebuyer, you and your spouse -- if you are married -- must not have jointly or
separately owned another principal residence during the three years prior to the date of purchase.
3) To be considered a long-time resident homebuyer you and your spouse -- if you are married -- must have lived
in the same principal residence for any consecutive five-year period during the eight-year period that ended on
the date the new home is purchased. Additionally, your settlement date must be after November 6, 2009.
4) The maximum credit for a first-time homebuyer is $8,000. The maximum credit for a long-time resident
homebuyer is $6,500.
5) You must file a paper return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the
Credit with additional documents to verify the purchase. Therefore, if you claim the credit you will not be able to
file electronically.
6) New homebuyers must attach a copy of a properly executed settlement statement used to complete such
purchase. Buyers of a newly constructed home, where a settlement statement is not available, must attach a
copy of the dated certificate of occupancy. Mobile home purchasers who are unable to get a settlement statement
must attach a copy of the retail sales contract.
7) If you are a long-time resident claiming the credit, the IRS recommends that you also attach any
documentation covering the five-consecutive-year period, including Form 1098, Mortgage Interest Statement or
substitute mortgage interest statements, property tax records or homeowner's insurance records.
For more information about these rules including details about documentation and other eligibility requirements
visit IRS.gov/recovery.
P.S. If you are applying for the $8,000. first time homebuyers tax credit or the existing home credit you
shouldn't do your taxes online. TurboTax and online services do not have the proper Form to apply for the tax
credit.
----------------------------------
Feb. 12, 2010: Fantastic news!! The latest Market statistics from the Carolina Multiple Listing Service shows
that the average closed price was UP again in January, this time 6.1%. January is the third month in a row that
the average closed price has been up!
Below is a great article written found in the Charlotte Observer:
Housing market logging gains. Charlotte area home sales, prices up again
By Stella M. Hopkins
shopkins@charlotteobserver.com
Posted: Wednesday, Feb. 10, 2010
The Charlotte-area housing market continued posting gains in January, with home prices and sales now showing
several months of steady increases.
The average sales price last month was $200,592, up 6.1 percent from January 2009, according to results released
Wednesday by the Charlotte Regional Realtor Association. That’s the third consecutive month with a gain and
slightly stronger than the December increase, for transactions through the association’s Carolina Multiple
Listing Services.
The number of houses, townhouses and condos sold last month rose 8 percent from a year ago during the
deepest part of the slump. January marked the fourth month of sales gains and is particularly notable because it
is typically a slow month.
The number of pending contracts – deals signed but not yet closed – was about the same as a year ago. However,
pendings were up 25 percent from December, a sign of rising demand. Experts expect sales will strengthen
through the spring, in part because of several hefty tax credits for deals signed by April 30.
--------------------------------------
Feb 5, 2010: Thinking about Foreclosure and forgetting the mortgage you owe? Well you still may be on the
hook if there's a difference between what you owed on your mortgage and what the bank could sell it for at
auction. And these "deficiency judgments" are ticking time bombs that can explode years after you lose your
home.
Can they come after you?
Whether banks can and will pursue deficiency judgments depends on many factors, including what state the
borrower lives in and whether there's a second mortgage or other liens. But if borrowers ignore the possibility of
deficiencies, it could haunt them.
"Once they have a judgment, they can pursue you anywhere," said Richard Zaretsky, a board-certified real
estate attorney in West Palm Beach, Fla. "They can ask for financial records, have your wages garnished and, if
you fail to respond, a judge can put you in jail."
In the case of foreclosure, lenders can pursue deficiencies in more than 30 states, including Florida, New York
and Texas, according to the U.S. Foreclosure Network, an organization of mortgage law firms.
Click the link to read more... http://finance.yahoo.com/news/Mortgage-lenders-pursue-cnnm-3107909798.html?
x=0
-----------------------------------
January 29, 2010: Are the Markets telling us anything?
RATES ~ Interest rates, moved little, though it is important to note that the week included the usual pendulum
swing among investors from confidence in the recovery to worry. The 10-year Treasury note yield stood at
3.818% as the week began, but concerns inspired by the prior week’s disappointing employment data (with the
reported 85,000 jobs lost in December) weighed on investor confidence in the economy, and the 10-year T-note
yield edged down to 3.722% by the end of Tuesday. At the same time, investors appeared to be moving their
money from the stock market to both Treasury securities and corporate bonds, having seemingly lost a bit of
their appetite for risk (briefly: for a day).
The pendulum swings from optimism to pessimism nearly daily. It may be important that the markets focused
on the poorer earnings report rather than on the stronger report. Since both seemed significant, concentrating
on the poorer earnings report may suggest a growing mood of pessimism. Still the movements of stock market
indexes and interest rates seem to tell us, since they are relatively small, that it isn’t time yet to rely on the
markets to tell us what’s coming next. It’s time, instead, to stay very light on our feet and take advantage of
opportunities, like low interest rates, as they appear. And without much delay.
---------------------------------
January 22, 2010: FHA has announced several important changes coming this year. Some sooner than later.
• The up-front MIP will be increased from 1.75% to 2.25%. Will be released January 21st and will take
effect in the Spring.
• Borrowers are now required to have a minimum credit score of 580. Will be posted in February and will go
into effect early this Summer.
• Seller concessions are being reduced from 6% to 3%. Will be posted in February and will go into effect
early this Summer.
For details open the link below:
http://www.mortgagenewsdaily.com/01202010_fha_increases_fico_mip.as
-----------------------------------------
January 15, 2010: Many ask "How's the Real Estate Market?" Well if you would like to know, 2009 Charlotte
Statistics for December have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Average List Prices December 2009 $239,062 vs. December 2008 $223,746 (+7%)*
Average Sold Prices December 2009 $211,705 vs. December 2008 $200,226 (+6%)*
with Current Average Days on Market 116.4 days (.3 days LESS than last month, 116.7 days)*
New listings December 2009 is 3,094 vs. December 2008 2,979(new listings are up by 4%)*
*data comes from Carolina Multiple Listing Services, Inc. January 11, 2010
+Interest Rates have increased from a year ago: December 2009 5.14% vs. December 2008 5.1% (STILL a
Great time to buy!)
+source: Freddie Mac, National Association of Realtors Forecast January 11, 2010
------------------------------------
January 11, 2009
Foreclosure, Short Sale and REO – What do these terms really mean?
I think we forget sometimes that not everyone is in the real estate business. We have seen terms pop up over
the last couple of years that we think we know, and some we might have never heard of. I thought I would take
a second and make sure we are all on the same page regarding the definitions of these terms. Our good friends
over at Wikipedia provided the definitions.
FORECLOSURE
Foreclosure is the legal and professional proceeding in which a mortgagee, or other lienholder, usually a lender,
obtains a court ordered termination of a mortgagor’s equitable right of redemption. Usually a lender obtains a
security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the
borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the
equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender
cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable
right of redemption. Other lienholders can also foreclose the owner’s right of redemption for other debts, such
as for overdue taxes, unpaid contractors’ bills or overdue HOA dues or assessments.
The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or
repossessing a parcel of real property (immovable property) after the owner has failed to comply with an
agreement between the lender and borrower called a “mortgage” or “deed of trust“. Commonly, the violation of
the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process
is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs,
and it is typically said that “the lender has foreclosed its mortgage or lien“. If the promissory note was made
with a recourse clause then if the sale does not bring enough to pay the existing balance of principal and fees the
mortgagee can file a claim for a deficiency judgment.
SHORT SALE
In real estate, a short sale is a sale of real estate in which the proceeds from the sale fall short of the balance
owed on a loan secured by the property sold.[1] In a short sale, the bank or mortgage lender agrees to discount a
loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done
through communication with a bank’s loss mitigation or workout department. The home owner/debtor sells the
mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to
the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have
the right to approve or disapprove of a proposed sale. Many Short Sales leave a deficiency balance for which the
Mortgagor / Borrower is still liable. In 99% of all cases it is not a settlement-in-full. A deficiency balance will
remain as a potential liability for the Mortgagor / Borrower. The bank’s opportunity of pursuit of a deficiency
judgment will vary from state to state.
REO (REAL ESTATE OWNED)
Real estate owned or REO is a class of property owned by a lender, typically a bank, after an unsuccessful sale at
a foreclosure auction.[1] A bank will typically set the opening bid at a foreclosure auction for at least the
outstanding loan amount. If there are no bidders that are interested, then the bank will legally repossess the
property. As soon as the bank repossesses the property, it is listed on their books as REO – Real Estate Owned –
and is categorized as an asset (non-performing).
As soon as a property goes into a distressed status (the borrower/home owner misses mortgage payments) the
bank will want to determine the amount of equity that the property has. A popular method to determine the
equity is to obtain a Broker Price Opinion BPO or order an appraisal. Based on the amount of equity that is
determined from the BPO, the bank will decide to try for a short sale or to allow it to go through the foreclosure
process. If the bank is able to sell the property through a short sale or at a foreclosure auction, then the
property will not become a REO property.
After repossession and the property becomes classified as REO, the bank will go through the process of trying to
sell the property on its own. It will remove some of the liens and other expenses on the home and try to resell it
to the public, either through future auctions or direct marketing through a real estate broker (REALTOR).
Generally speaking, bank REO properties are in poor shape in terms of repairs and maintenance; however, real
estate investors will often go after these properties as banks are not in the business of owning homes and so, in
some cases, the low price can more than compensate for the condition of the property.
Once a property is REO, the bank or lender will try to get rid of the property by either selling it directly
themselves or through an established broker. Many larger banks such as Bank of America and Wells Fargo
have REO/asset management departments that will field bids and offers, oversee upkeep and handle sales. The
majority of REO properties that are on the open market are listed in MLS by the broker/REALTOR that
performed the BPO.
--------------------------
December 11, 2009 : Many ask "How's the Real Estate Market?" Well if you would like to know, Charlotte
November Statistics have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Please see below:
Average List Prices November 2009 $216,507 vs. November 2008 $213,548 (+1%)*
Average Sold Prices November 2009 $195,244 vs. November 2008 $193,035 (+1%)*
with Current Average Days on Market 116.7 days (4.3 days MORE than last month, 112.4 days)*
New listings November 2009 is 3,614 vs. November 2008 3,978(new listings are down by -9%)*
*data comes from Carolina Multiple Listing Services, Inc. December 7, 2009
+Interest Rates have decreased drastically from a year ago: November 2009 4.78% vs. November 2008 5.1 (Great
time to buy!)
+source: Freddie Mac, National Association of Realtors Forecast December 7, 2009
-----------------------------------------------
December 4, 2009: Secretary Shaun Donovan of the U.S. Department of Housing and Urban Development met
with the House Committee of Financial Services to discuss certain reforms to FHA financing. Here are a few
highlights of what was discussed:
Setting credit score minimums
Increasing the minimum down payment
Decreasing the maximum seller contributions from 6% down to 3%
Increasing the UFMIP (Upfront Mortgage Insurance Premium) percentage
Holding lenders more accountable for defaults
The link to the full testimony is http://portal.hud.gov/portal/page/portal/HUD/press/testimonies/2009-12-02
------------------------------------------------------
November 30, 2009:
Mortgage bond prices rose last week pushing mortgage interest rates lower. The economic data continues to be
mixed. Personal income, outlays, and PCE inflation data were stronger than expected. Interest rates finished
the week improved by about 1/2 of a discount point.
The employment report will be the most important release this week. This is one of those weeks where there are
many economic releases classified as very important or important. The potential for market volatility is
increased when these types of reports are released. Be alert throughout the entire week.
=============================
November 16, 2009 : Many ask "How's the Real Estate Market?" Well if you would like to know, Charlotte
October Statistics have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Please see below:
Average List Prices October 2009 $218,050 vs. October 2008 $237,436 (-8%)*
Average Sold Prices October 2009 $196,204 vs. October 2008 $216,777 (-9%)*
with Current Average Days on Market 112.4 days (3.3 days LESS than last month, 115.7 days)*
New listings October 2009 is 4,863 vs. October 2008 4,682(new listings are up by 4%)*
*data comes from Carolina Multiple Listing Services, Inc. November 7, 2009
+Interest Rates have decreased drastically from a year ago: October 2009 5.03% vs. October 2008 6.46% (Great
time to buy!)
+source: Freddie Mac, National Association of Realtors Forecast November 7, 2009
===========================
November 6, 2009 HOMEBUYER TAX CREDIT EXTENDED!!
By Jim Abrams, Associated Press Writer
On 11:08 am EST, Friday November 6, 2009
WASHINGTON (AP) -- President Barack Obama is set to sign a $24 billion economic stimulus bill providing tax
incentives to prospective homebuyers and extending unemployment benefits to the longtime jobless who have
been left behind as the economy veers toward recovery. The White House signing ceremony Friday comes a day
after the House, displaying rare bipartisan agreement over the seriousness of the jobless situation, voted 403-12
for the measure. The Senate approved it unanimously on Wednesday.
The tax credits, added by the Senate, center on extending the popular $8,000 credit for first-time homebuyers
that was included in the stimulus package. The credit, which was to expire at the end of this month, will be
available through next June as long as the buyer signs a binding contract by the end of April.
The program is expanded to include a $6,500 credit for existing homeowners who buy a new place after living in
their current residence for at least five years.
The credit, said Democratic Rep. Shelley Berkley of Nevada, a state particularly hard hit by the recession, "will
allow more people to purchase a home in my district and help stop the continued downward spiral in housing
prices caused by the foreclosure crisis."
Prolonging the life of the homebuyer credit has been a priority of the real estate industry, which says it has been
instrumental in beginning to turn around a market that was a major cause of the economic downturn. About 1.4
million first-time homebuyers have qualified for the credit through August, and the National Association of
Realtors estimates that 350,000 of them would not have purchased their homes without the credit.
http://finance.yahoo.com/news/Obama-to-sign-homebuyer-apf-1073869353.html?x=0
--------------------------------------------
October 30, 2009 Clock is ticking...We haven't received confirmation about the extension of first time
Homebuyer the tax credit. So for now, the tax credit is still expiring on Nov 30th. So to have enough time to be
closed on a house by Nov. 30th, you have find your house NOW!!
That leaves only a handful of weekends to get you pre-approved by a mortgage lender and identify the right first
home for you. So you see we need to get started today to take advantage of this opportunity, call me today to
discuss in more detail, Jennifer Lew 704-591-5542.
Here is the fast, quick information you will need to see if you qualify for the $8,000 tax credit for first-time
home buyers from The American Recovery and Reinvestment Act of 2009.
You must be a first time home buyer, defined as not owning a home in the past 3 tax years.
Tax credit amount is 10% of the sales price of the home up to a maximum of $8,000.
There is NO price limit on the sales price of home.
Maximum income to receive FULL tax credit is $75,000 for a single person, the limit for married couples is
$150,000.
You can receive a PARTIAL tax credit for income levels up to $95,000 for a single person and $170,000 for
married couples.
There is no payback or penalty as long as you stay in home as your principal residence for 3 years.
You must CLOSE on your new home on or after January 1, 2009 or before December 1, 2009-NO EXCEPTIONS.
30 Days left!!
-----------------------------------------------
October 23, 2009:
Existing home sales rebound to 2-year high
By: Reuters | 23 Oct 2009 | 10:50 AM ET
WASHINGTON (Reuters) - Sales of previously owned U.S. homes surged to their highest level in more than two
years in September, a survey showed on Friday, providing further evidence the housing market and economy
were on the mend.
The National Association of Realtors said sales surged 9.4 percent to an annual rate of 5.57 million units, the
highest level since July 2007, from a downwardly revised 5.09 million units in August.
Analysts polled by Reuters had expected September sales to rise to a 5.35 million unit pace from the previously
reported 5.10 million units in August.
William Larkin, portfolio manager with Cabot Money Management in Boston, said home sales were bolstered by
a government program to give first-time buyers a tax credit.
"The existing home sales data is a good sign for the housing market. I would assume a lot of first-time buyers
have scrambled to get this $8,000 credit. That will be the part that is hard to define within the numbers," he said.
"It definitely looks like the stimulus that is going into housing is starting to form a bottom."
U.S. stock indexes briefly recouped losses on the data, while government bond prices were little moved.
But the housing market is gradually crawling out of a three-year recession, and analysts believe that in the third
quarter residential investment probably contributed to economic growth for the first time since the fourth
quarter of 2005.
Signs of recovery in the housing market, coupled with other fairly upbeat data, strongly suggest the economy
started growing again in the third quarter after four straight quarters of declining output.
Compared to September last year, existing home sales were up 9.2 percent.
Sales for both new and previously owned homes have boosted by a combination of a the popular $8,000
government tax credit for first-time buyers, low prices and mortgage rates.
But there are fears that the expiration of the tax credit at the end of November could hamper the recovery.
The Obama administration is still considering extending the program but is weighing that against efforts to bring
down the federal deficit, senior White House officials said on Wednesday.
"We are hopeful the tax credit will be extended and possibly expanded to more buyers ... because the rising sales
momentum needs to continue for a few additional quarters until we reach a point of self-sustaining recovery,"
said NAR chief economist Lawrence Yun
The national median home price fell 8.5 percent to $174,900 in September from a year-ago. That was the
smallest percentage decline in 13 months, the NAR said. Distressed properties made up 29 percent of sales last
month, with first-time buyers accounting for 31 percent.
The inventory of existing homes for sale in September dropped 7.5 percent to 3.63 million units. September's
sales pace left the supply of previously owned homes on the market at 7.8 months' worth, the lowest in two-and-
a-half months, from 9.3 months' worth in August.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
http://www.cnbc.com/id/33448854/for/cnbc/#
-----------------------------------------------
October 16, 2009; So with the clock ticking on the 2009 Home Buyer Tax Credit (which expires at midnight on
November 30), how much time does it really take to close on a home? In this market, it can take 45 to 60 days
to close on a home. So working backwards from the November 30 deadline, you’ll want to have an accepted offer
no later than mid-October (NOW). That leaves only a handful of weekends to get you pre-approved by a
mortgage lender and identify the right first home for you. So you see we need to get started today to take
advantage of this opportunity, call me today to discuss in more detail, Jennifer Lew 704-591-5542.
Here is the fast, quick information you will need to see if you qualify for the $8,000 tax credit for first-time
home buyers from The American Recovery and Reinvestment Act of 2009.
You must be a first time home buyer, defined as not owning a home in the past 3 tax years.
Tax credit amount is 10% of the sales price of the home up to a maximum of $8,000.
There is NO price limit on the sales price of home.
Maximum income to receive FULL tax credit is $75,000 for a single person, the limit for married couples is
$150,000.
You can receive a PARTIAL tax credit for income levels up to $95,000 for a single person and $170,000 for
married couples.
There is no payback or penalty as long as you stay in home as your principal residence for 3 years.
You must CLOSE on your new home on or after January 1, 2009 or before December 1, 2009-NO EXCEPTIONS.
45 Days left!!
-------------------------
October 9, 2009 : Many ask "How's the Real Estate Market?" Well if you would like to know, Charlotte
September Statistics have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Please see below Charlotte Regional Realtor Association September 2009 Real Estate Statistics.
Average List Prices September 2009 $219,925 vs. September 2008 $232,717 (-5%)*
Average Sold Prices September 2009 $196,760 vs. September 2008 $214,927 (-8%)*
with Current Average Days on Market 115.7 days (2.9 days LESS than last month, 118.6 days)*
New listings September 2009 is 4,701 vs. September 2008 4,909(this is actually a good thing since we have a lot of
inventory right now carried from last year, so new listings are down by -4%)*
*data comes from Carolina Multiple Listing Services, Inc. October 7, 2009
+Interest Rates have decreased drastically from a year ago: September 2009 5.04% vs. September 2008 6.09%
(Great time to buy!)
+source: Freddie Mac, National Association of Realtors Forecast October 7, 2009
----------------------------------------------
October 2, 2009: The clock is ticking down for first time home buyers. You need to act NOW to make sure that
you don't miss out on the $8,000 from Uncle Sam.
Here is the fast, quick information you will need to see if you qualify for the $8,000 tax credit for first-time
home buyers from The American Recovery and Reinvestment Act of 2009.
You must be a first time home buyer, defined as not owning a home in the past 3 tax years.
Tax credit amount is 10% of the sales price of the home up to a maximum of $8,000.
There is NO price limit on the sales price of home.
Maximum income to receive FULL tax credit is $75,000 for a single person, the limit for married couples is
$150,000.
You can receive a PARTIAL tax credit for income levels up to $95,000 for a single person and $170,000 for
married couples.
There is no payback or penalty as long as you stay in home as your principal residence for 3 years.
You must CLOSE on your new home on or after January 1, 2009 or before December 1, 2009-NO EXCEPTIONS.
60 Days left!!
Call Jennifer Lew TODAY 704-591-5542 to find out how to take advantage of the First Time Home Buyer Tax
Credit!
-------------------------------------
September 25, 2009 - First-time Homebuyers - Your decision to buy a home is both a sound financial decision
and a commendable achievement. Below we have listed 12 things you must do to prepare.
1. Consider these important questions:
Where will you be in 5-10 years?
Do you have kids or plan to have them?
Does your job require you to move around a lot?
Do you have time to maintain a home and yard?
Do you want to live near work?
Do you want to live near shops, restaurants and nightlife?
How much living space do you need?
2. Use our mortgage calculators to get an idea of what your monthly mortgage payments would be if you bought
today. (http://www.jenniferlew.net/calculator.html) Don't over-extend yourself. Also consider additional
expenses that come with home ownership:
Insurance
Property Tax
Private Mortgage Insurance
Homeowner's association fees
Utilities (increase with square footage)
Maintenance
3. Find out what your total monthly housing cost would be, including taxes and homeowners insurance.
4. Find out how much you'll likely pay in closing costs. The upfront cost of settling on your home shouldn't be
overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and
prepaid items like homeowners insurance or homeowners' association fees.
5. Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no
more than 28% percent of their income on housing costs.
6. Talk to a Realtor, Jennifer Lew 704-591-5542, about the real estate market.
7. Remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your
investment can be labor-intensive and expensive. Think about things that could be in need of repair or
replacement, i.e., the roof, new appliances, etc.
PREPARE FOR THE HUNT!!!!
If the numbers in 1 through 7 make sense for you, taking a few steps at the beginning of the home buying
process can save you time, money and aggravation.
8. Examine your credit. Right now, blemished credit or the inability to make substantial down payment can put
the kibosh on your homeownership plans. That's why it pays to look at your creditworthiness early in the home-
buying process. Get your free annual credit report at annualcreditreport.com and comb through it for errors and
unresolved issues. If you find mistakes, contact the credit reporting bureau to make sure they are corrected.
It's also a good idea to get your FICO score, which will cost you a small fee.
9. Get your documents in a row. Collect pay stubs, bank account statements, W-2s, tax returns for the last two
years, statements from current loans and credit lines, and names and addresses of your landlords for the past
two years. Have them ready to show to the lender. This may seem like a lot, but in this age of tight credit, don't
be surprised if your lender needs a lot in the way of documentation.
10. Find a lender and get pre-approved. Getting pre-approved for a mortgage helps you bargain from a position of
strength when you are house hunting. Start by filling out a loan application so we can review your qualifications.
11. If at first you don't succeed, try, try ... the government? If you can't find a bank willing to lend to you -- and
in the current tight credit market, it's possible you won't -- consider getting an FHA loan. The Federal Housing
Administration has a program that insures the mortgages of many first-time homebuyers. As a result of this
guarantee, lenders who might otherwise feel queasy about your qualifications will be more inclined to lend to
you. As a bonus, the FHA only requires a 3.5 percent down payment from first-time homebuyers.
12. Finally, don't forget about the first-time homebuyer tax credit. Get your hands on Form 5405 ahead of time
and send it in with your tax return immediately after your home purchase to ensure you receive the $8,000
credit as soon as possible. This credit is set to expire November 30, 2009!
----------------------------------------------------------
September 11, 2009 : Many ask "How's the Real Estate Market?" Well if you would like to know, Charlotte
August Statistics have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news.
Please see below Charlotte Regional Realtor Association August 2009 Real Estate Statistics.
Average List Prices August 2009 $234,504 vs. August 2008 $247,323 (-5%)*
Average Sold Prices August 2009 $209,245 vs. August 2008 $230,472 (-9%)*
with Current Average Days on Market 118.6 days (2.7 days MORE than last month, 115.9 days)*
New listings August 2009 is 4,953 vs. August 2008 5,558(this is actually a good thing since we have a lot of
inventory right now carried from last year, so new listings are down by -11%)*
*data comes from Carolina Multiple Listing Services, Inc. September 8, 2009
+Interest Rates have decreased drastically from a year ago: August 2009 5.14% vs. August 2008 6.40% (Great
time to buy!)
+source: Freddie Mac, National Association of Realtors Forecast September 8, 2009
----------------------------------------------------------
Sept 4, 2009 Celebrating First-time Homebuyers Tax credit! For the first 12 months ending in June 2008, first-
time buyers in Charlotte accounted for 37% of all sales, according to NAR's 2008 Profile of Home Buyers and
Sellers. We expect it to be a higher percentage as we get closer to the deadline of December 1, 2009.
A first time home buyer is defined as someone who has not owned a principle residence in the past three years.
Those three years are counted up to the date you take possession of the house you buy in 2009. This means that
even if you’ve owned a home in the past, you can still take advantage of the tax credit as long as you haven’t
purchased a primary residence since 2006.
The same goes for married tax payers - they must both be first time home buyers. For non-married joint
buyers, only one of them needs to be a first time home buyer, or someone who hasn’t owned a primary residence
in the past three years.
The main restriction is that the credit is only for those who buy a home as their primary residence. So investors
looking to buy a rental property would not qualify for the credit. However owning a vacation home or a rental
property already does not neccessarily disqualify you from taking advantage of the credit (as long as you haven’t
owned a primary residence in the past three years).
The tax credit is equal to 10% of the purchase price of the home, up to $8,000. The amount of the credit you
can qualify for is related to how much money you earn. Here’s how the credit is scaled:
Single home buyers earning 95K or less qualify. If you make 75K or less, you qualify for 100% of the $8000. If
you make halfway, 85K, you qualify for 50% or $4000. The credit phases out gradually between 75K and 95K of
income. For example, if you make halfway between the income limits, 85K, you qualify for up to half of the
credit.
The same rate applies for married couples and joint buyers whose incomes limits are doubled to $150,000 to
$170,000. Married couples or joint buyers whose incomes are less would receive the full $8000 credit. At an
income level of $160,000, halfway between 150 and 170, the buyers would receive half the credit – or $4,000.
And the credit phases out altogether at $170,000.
This credit represent a significant amount of money. One of the biggest points of difference for the new credit
from the one congress passed in July of 2008, is that the new credit does not have to be paid back.
In addition, it's refundable, which means that if you’ve paid all your taxes as you go with an automatic payroll
deduction, you would receive an $8,000 check from the IRS.
Qualifying home buyers will need to make their home purchase between January 1, 2009 and December 1, 2009.
And the home has to remain their principal residence for the following three years.
---------------------------------------------------
August 28, 2009: Would you like to replace those old appliances with new ones and get a tax break while doing
it? Well, this year and next year you will be able to do just that!
A tax credit for 30% of the cost of energy-efficient doors and windows, insulation, air conditioners, furnaces,
heat pumps and boilers, up to a lifetime cap of $1,500. This credit is available for 2009 and 2010.
That means if you spend $5,000 on new windows this year and claim a $1,500 tax credit on your 2009 tax return,
you won't be able to claim an additional credit in 2010.
This is a more generous credit than the one that was available in 2006 and 2007, which covered 10% of the costs,
up to a lifetime cap of $500. The old credits also contained individual caps, such as a $200 limit on new windows.
With the new credits, you can claim 30% of all your energy-efficient costs, up to the lifetime cap.
For windows, doors, insulation and other similar projects that tighten up the "shell" of your home, the credit is
limited to the cost of materials.
However, if you buy a new air conditioner, furnace, heat pump or boiler that meets the energy-efficient
guidelines, you can include the cost of installation in calculating the credit.
Only improvements to your primary residence qualify for the credits. Unlike other tax credits, there are no
income phase outs, In addition, taxpayers who are subject to the alternative minimum tax — a parallel tax
system that often affects people who pay high property taxes — will be able to claim the credits.
Starting in 2009, homeowners who install solar water heaters, geothermal heat pumps and wind energy systems
are eligible for a tax credit of up to 30% of the cost, with no caps. Previously, caps on these types of projects
ranged from $2,000 to $4,000. These tax credits are available through 2016, and both labor and materials qualify.
For more information about eligible energy-efficient home improvements, go to the website for the Alliance to
Save Energy, www.ase.org.
-----------------------------------------
August 21, 2009: Would you like $8000 back on your taxes this year?
There's been a lot of questions about the new tax credit. Who qualifies? How does it work? How long will it last?
Click the link below to learn more. In this special edition video, there is an in-depth look at the $8,000 tax
credit for first time home buyers.
http://www.kw.com/kw/2009TaxCredit.html
-----------------------------------------
August 14, 2009 July's Real Estate Statistics have just been released!
Charlotte Regional Realtor® Association reports on the residential real estate market in this region based on
Carolina Multiple Listing Services, Inc. Data.
The number of closings for July 2009 (2,223) rose 9.8 percent over last month when closings totaled 2,024.
The average sales price for July 2009 ($212,977) is down only 2.6 percent over last month ($218,728).
The average listing price of solds in July 2009 ($238,629) is also down slightly – 2.3 percent over last month’s list
price of $244,316.
Residential contracts reported in July 2009 (2,341) increased 8 percent over last month when contracts totaled
2,167.
New residential listings for July 2009 totaled 5,195.
The average days a property was on the market from the time it was listed until it closed (list to close) was 145.2,
which is two days faster than last month.
The average days a property was on the market (days on market), excluding the days the property was off the
market or pending, was 115.9, which is nearly the same as last month.
Donna Anderson, president of the association and Carolina Multiple Listing Services, Inc., says, “Nationally,
home sales have been up for the last four months and it’s reassuring to see that same trend here in our 10-
county service area. With inventories easing and pending contracts continuing to increase, we are beginning to
see positive indicators that the local market is moving toward stabilization.”
-----------------------------------------
August 7, 2009 - Home Burglaries on the Rise
In the current economy, there seems to be an increase in theft of property from businesses, automobiles and
homes.
Please be aware of your valuables and take special care to conceal them whether in your home, your office or
your car.
8 easy and inexpensive ways to prevent home theft:
1. Put a home security sign in your yard, even if you can't afford to actually purchase a system. Your home is
less likely to be targeted if a burglar thinks you are protected.
2. Keep your garage door closed! This is a common access point for burglars - occasionally even while the
homeowner is out in the yard!
3. Utilize your neighbors! If you are friendly with your neighbors, they are more likely to keep a watch out and
notify the police of suspicious activity.
4. Keep items such as jewelry and valuables outside the bedroom! Most burglars will search a bedroom for these
possessions first. Having a safe/vault in the home will also help to ensure your property stays safe. And don't
leave valuables in-sight in your vehicle.
5. Get rid of large bushes and areas where someone can plan a fast escape route! If your yard is relatively open,
a burglar may see that they don't have many options of getting away without being caught.
6. Lights! Lights! Lights! Deter burglars by installing motion detectors. If you are going out of town, you can
also install timers to turn lights on inside your home at night!
7. Turn the radio or TV on! Most burglaries occur during the day because they think no one is home. Trickery
is key!
8. Have a checklist before leaving your home! Make sure all doors and windows are locked. If you will be away
for more than a day, notify your local police department and ask them to stop by and do a check while you are
out of town. Stop your mail and newspapers and have a neighbor keep an eye out for package deliveries.
Click here for more information about Crime in Charlotte
--------------------------------------------
July 31, 2009 What's Involved in the Home Buying Process?
Not a first time home buyer? That's okay. Even veteran home buyers forget the particulars when pursuing the
purchase of a new home. You may need a refresher, or you may be a first-time home buyer who wants to know
the ropes. Either way, there are several items you'll want to be aware of even before you start looking for
another home.
Follow the steps below so that you don't skip a beat in the process. This will ensure you are getting the very best
deal possible on the purchase of your new home.
* Free credit report. Before you get started, order your free credit report from all three major credit reporting
bureaus. They are Equifax, Trans Union and Experian. You can get a free one from each at www.
annualcreditreport.com. By law, the credit bureaus are required to provide you with a free credit report every
twelve months. Your goal will be to make sure you have the highest possible credit score. A high credit score will
enable you to be approved for the lowest possible interest rate.
* Inaccuracies, negative info or inquiries. Comb through your credit reports for any information you perceive as
being inaccurate, negative information that is incorrect and inquiries that you did not approve. Send a letter to
each of the credit reporting bureaus with a copy of the credit reporting pages that apply, along with any support
documentation. Send a copy only, and keep the originals for your own files. The credit reporting bureaus have 30
days to respond.
* Ready, set, go! Once the credit reporting agencies make the updates and corrections, you are ready to move
forward.
* Home wish list. You'll want to identify everything that you want in a home. Include the geographic location,
school district or school, square footage, number of bedrooms/bathrooms/garages, style of home (ranch vs. multi-
level or others), hardwood floors, type of kitchen (eat-in vs. formal) and anything else you can think of. Include
amenities like a central vac, built-in microwave or heat pump. All this will allow you a basis to begin your house
hunting venture.
* Get pre-approved. Real Estate Agents will typically not help you look for a home without being pre-approved
for a home loan. Do yourself a favor in order to get the best rate possible by shopping around. If you request
interest rates from several lenders within a ten-day or less window, it usually does not negatively impact your
credit score. Check out the company's reputation. You can do a search on the FCC website at www.fcc.gov,
check with the Better Business Bureau and contact the Federal Banking Commission to see if you find any
negative information about the company. Make sure you get the interest rate in writing, along with ALL fees
prior to agreeing to proceed with the loan. Once you find a lender you think you can trust, get pre-approved for
your home loan.
* How much are you pre-approved for? Getting pre-approved for a home loan will tell you how much you are pre-
approved for and will give you a gauge as to how much you will want to invest in a new home. Decide how much
you will want to invest overall and how much your down payment will be.
* Contact Jennifer Lew! Call 704-591-5542 and sign the buyer's agreement.
* So many homes, so little time. Jennifer Lew can provide you with a list of homes that meet your criteria and
be willing to take you to shop around.
* Other offers? Once you decide to make an offer on a home, ask about whether they know the seller's
motivation - bankruptcy, estate sale, etc. Also, ask if there are any other offers, liens, easements, zoning
changes and neighborhood crime.
* Scrutinize the Seller's Disclosure. Make note of how old the following are: roof, central heat/air, electrical and
plumbing. Depending on the age and condition of each, these may be bargaining points in negotiations.
* Make an offer. At this point, you should have as much information as possible about the home prior to
inspections. You should be informed enough to make the first offer.
* Inspections, warranty, insurance, lead paint. Depending upon the inspections your lender will require, you'll
probably want to schedule a home inspection and termite inspection. Homeowner's insurance will be required.
* Be there. Be in attendance at all inspections.
* Negotiate. If you find anything that legitimately should be used in negotiations, then negotiate. Present a new
offer.
* Plan the move. Once your final offer is approved, you'll know the closing date. Prepare your family for the
move - e.g., boxes, take time off, and hire a moving company.
* Final walkthrough. When you do your final walkthrough, make sure to note anything that was not taken care
of. If there are repairs that were not completed as agreed upon, don't sign on the dotted until they are done.
* Closing. When you go to the closing, scrutinize your Declarations sheet to ensure that you are only paying for
what you agreed to pay for. If it looks good, give your John Hancock and close on your house.
* Happy home owning. This is a no-brainer. Time to move into that house and make it a home!
--------------------------------------------
July 24, 2009 :Wall Street Journal just released National Housing Data and it shows that there are figures all
over the map, i.e., some markets are doing better than others. For Charlotte, we were down and this has to do
with all the bank reorganizations and our increased unemployment levels. Click the link to read more.
In June, home sales were up sharply from the depressed year-earlier levels in Orlando, Minneapolis, Southern
California and the San Francisco Bay Area, according to reports from local Realtor groups and MDA DataQuick,
a research firm. But sales dropped 50% in Manhattan, according to Miller Samuel Inc., a New York-based
appraisal firm. Sales also declined in Long Island, N.Y., and Charlotte, N.C., among other areas.
Unemployment may be the most important factor in assessing a metro area's housing-market prospects, says
Mark Zandi, chief economist at Moody's Economy.com. "If people don't have jobs or fear losing their jobs ,then
buying homes is out of the question," he says.
http://finance.yahoo.com/real-estate/article/107398/home-sales-all-over-the-map.html?mod=realestate-sell
--------------------------------------------
July 17, 2009 : Possible increase in homeowners rates Homeowners across NC could face significant increases
in their homeowners' rates. The main cause of this is the NC Beach Plan is not properly funded. The state beach
plan has a possible shortfall of $6 billion from the impacts of a 1 in 100 year hurricane.
Some insurance companies have indicated as much as a 30% increase to their homeowner rates. Some
insurance companies have left the state and other companies are threatening to leave the state altogether.
The impact on all of us could mean higher rates.
A recent study showed that insurance rates could increase up to 200% for ALL North Carolina residents if
preventive measures aren’t taken to address the Beach Plan. To put this into perspective - if this shortfall were
covered by state funds, it would equal $1,555 for every taxpayer in North Carolina.
However, the state Legislature is considering House Bill 1305 to address the problem and move toward reform of
the Beach Plan.
Your voice can make a difference in the outcome of this debate. Please contact your lawmakers TODAY and
urge them to support House Bill 1305. Be sure to tell your elected officials that meaningful reform must:
• Ensure the Beach Plan has the financial resources to pay claims;
• Provide a strategy for the Beach Plan to minimize the financial impact of a large storm;
• Preserve competition and availability of homeowners insurance across the entire state.
Click here to email your state lawmakers on this issue TODAY - Ask them to support House Bill 1305! If the
link doesn’t work, here is the web address: http://www.fixthebeachplan.com/site/action/act-now
“The North Carolina Beach Plan remains a ticking time bomb until sufficient targeted reform is made,”
Insurance Commissioner Wayne Goodwin.
--------------------------------------------
July 10, 2009 : Many ask "How's the Real Estate Market?" Well if you would like to know, Charlotte June
Statistics have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news. Please see
below Charlotte Regional Realtor Association June 2009 Real Estate Statistics.
Average List Prices June 2009 $244,316 vs. June 2008 $248,044 (-2%)* we are improving!
Average Sold Prices June 2009 $218,728 vs. June 2008 $233,670 (-7%)*
with Current Average Days on Market 116 days (2.30 days MORE than last month, 113.7 days)*
New listings June 2009 is 4,551 vs. June 2008 5,874 (this is actually a good thing since we have a lot of inventory
right now carried from last year, so new listings are down by -23%)*
*data comes from Carolina Multiple Listing Services, Inc. July 7, 2009
+Interest Rates have decreased drastically from a year ago: June 2009 5.42% vs. June 2008 6.45% (Great time
to buy!)
+source: Freddie Mac, National Association of Realtors Forecast July 7, 2009
--------------------------------------------
July 2, 2009 Buyers- what you need to know when making a contract offer
A offer can be broken down into 3 parts: price, terms and conditions. A great article from Realty Times
written by David Failk gives great insight when writing an offer....
Be it the real estate market in 2009 or any other real estate market for that matter, the structure of a
real estate purchase contract offer can be the difference in it being accepted or rejected.
No, the offering price is not the only factor in negotiating a contract to purchase a home.
Regardless of the number of pages in the sales contract, a contract offer can be broken down into 3
separate parts which can be important to the seller: Price, Terms and Conditions.
Each has to be satisfactory in order to obtain seller acceptance. In some situations, full price offers are
not acceptable due to the buyer's terms and conditions in the contract offer. In other instances, contracts
get accepted and signed even though the offer was much lower in price than other competing offers, but
was more favorable for the seller in terms and conditions.
What then is the secret in preparing and submitting a contract offer to buy real estate? This is where the
value of an experienced REALTOR and Buyer's Agent is with providing assistance in preparing and
structuring the contract offer in a manner that does not create questions or concerns for the seller and
their listing agent when it is presented to them.
There is more to purchasing a home than just looking at houses, whether the home is in Iselin or Colonia,
New Jersey, in Middlesex County or any other state for that matter.
The first step toward purchasing a home is obtaining Mortgage Pre-Approval from a reputable
Mortgage Lender (Mortgage Pre-Approval Versus Mortgage Pre-Qualification), and be sure a copy is
included with the contract offer. Why? The first question to be asked by the seller and listing agent at a
contract presentation will be "Does the buyer have Mortgage Pre-Approval? And this is where the
benefit of a Mortgage Pre-Approval letter provides advantages over a standard Pre-Qualification letter.
Secondly, there is no cardinal rule that there must be some fixed amount that a seller will negotiate from
their asking price. Home buyers need to obtain factual sales information about the market area, and
section of Town, they are considering buying in before submitting an offer. While it is very likely that
sale prices have declined in the past few years, they have not dropped equally in all Towns and in all
neighborhood locations.
Remember Economics 101 from Grammar School: "What's true of the whole may not be true of the
parts." That is what I am referring to here. Real estate values are local, and various factors influence
market value such as buyer demand, amount of homes for sale, mortgage rates, local economic
conditions and so on and so on. As important, similar design and size homes may differ in value due to
condition and improvements.
In preparing a contract offer, it is important that a buyer obtain a Market Analysis for the property
being considered. A report like this can be prepared by the buyer's agent and it should contain
information comparing similar properties which are active on the market for sale, homes which expired
and did not sell in the past six months, under contract sales and closed sales in the past six months. This
information should also provide the asking price history and days on market before sold. With a report
like this, a buyer can then have a better understanding of the real estate market and be better prepared
when submitting a contract offer.
It is highly recommended that buyers obtain a blank contract of sale and addendums early in the home
searching process. Contracts can be intimidating to many buyers. It would be much better to review the
contract documents in advance of making a contract offer. Making a contract offer is an important
decision. Being properly prepared is an important aspect of making a successful contract offer.
Thirdly, buyers should be completely aware of their personal finances and the total costs of purchasing a
home. Buying a home involves down payment, expenses occurred during the purchase, such as mortgage
application fee, inspection fees, and closing costs. It is important for buyers to obtain the estimates
related to transaction expenses and closings costs. When a buyer is not properly prepared for expenses
like these, they could have an affect on exactly how much a buyer has for the down payment which then
could affect how much is needed in a mortgage to complete the purchase.
Buyers should be educated and informed when making an offer to buy a home.
Surprises are for birthdays, not buying a home!
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June 26, 2009 Mortgage Rates on a Roller Coaster
We have seen mortgage rates all across the board, i.e., a year ago we were in the mid 6's and now in the 5's.
Read the short, but interesting article from today's Wall Street Journal.
After spiking to six-month highs a couple of weeks ago, mortgage rates fell again last week only to rise again
this week.
Interest on 30-year fixed mortgages settled at an average of 5.42 percent this week, reports Freddie Mac, up
from 5.38 percent in the previous week but lower than the prevailing rate of 6.45 percent a year ago.
Five-year, hybrid adjustable-rate mortgages also bumped up a couple of notches to 4.99 percent, but 15-year
fixed loans and one-year ARMs moved in the opposite direction. The former slipped to 4.87 percent from 4.89
percent, while the latter fell to 4.93 percent from 4.95 percent.
Source: Wall Street Journal (06/26/09)
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June 18, 2009 Senator Howard Coble from Greensboro, has introduced legislation that would “extend the home
buyer tax credit through 2010, open it to all home buyers and eliminate income-qualifying limits.” Mr. Coble
said that the “economy thrives when the real estate market thrives.” Senator also stated, "Realtors, home
builders and mortgage brokers have all seen more business in recent months, in part, because the tax credit is
spurring some would-be buyers to jump into the housing market."
Very encouraging article and hasn't been approved yet, but good to hear our State Representatives are
interested in continuing the momentum we have in the housing market!
Click the link to read more
http://www.news-recordcom/content/2009/06/11/article/coble_seeks_to_extend_home_buying_tax_credit
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June 12, 2009 : Many ask "How's the Real Estate Market?" Well if you would like to know, Charlotte May
Statistics have just been released. Contact Jennifer Lew 704-591-5542 for more Real Estate news. Please see
below Charlotte Regional Realtor Association May 2009 Real Estate Statistics.
Average List Prices May 2009 $223,470 vs. May 2008 $237,884 (-6%)*
Average Sold Prices May 2009 $199,243 vs. May 2008 $223,946 (-11%)*
with Current Average Days on Market 113.7 days (LESS 3.50 days than last month, 117.2 days)*
New listings May 2009 is 5,080 vs. May 2008 6,388 (this is actually a good thing since we have a lot of inventory
right now carried from last year, so new listings are down by -20%)*
*data comes from Carolina Multiple Listing Services, Inc. June 9, 2009
+Interest Rates have decreased drastically from a year ago: May 2009 4.91% vs. May 2008 6.08% (Great time to
buy!)
+source: Freddie Mac, National Association of Realtors Forecast June 9, 2009
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June 4, 2009 Unfortunately, The $8,000 Fast Cash for down payment assistance for First-time Home
buyers is available towards the purchase of a FHA insured home IN OTHER STATES. THIS HAS
NOT PASSED IN NC OR SC YET. PLEASE CONTACT YOUR NC/SC GOVERNMENT TO
PARTICIPATE IN THIS BENEFIT.
PLEASE READ HOW HUD has announced that by making this change it should help stabilize the nation's
housing market by stimulating home sales across the country. Home buyers using FHA-approved lenders can
apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs,
which can help achieve a lower interest rate. To read the FHA's new mortgagee letter, visit HUD's website.
Please click on HUD's link to read more:
http://www.hud.gov/news/release.cfm?content=pr09-072.cfm
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May 29, 2009 Some good news to report!! Forbes.com has ranked Charlotte #3 in the Top 5 Cities Americans are
relocating! What great news since all other news has been about unemployment, tight credit, and the bad
economy. Want to read more? Click the link below:
http://realestate.msn.com/article.aspx?cp-documentid=19873357>1=35000
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May 22, 2009 $8,000 Fast cash for First-time Homebuyers. HUD plans to tweak the tax credit so it can use it as
down- payment assistance. Read the article below, great to know what HUD is working on, it could help the
market get the jolt it needs!
By Les Christie CNNMoney.com staff writer
Last Updated: May 19, 2009: 12:45 PM ET
NEW YORK (CNNMoney.com) -- Home prices are cheap. Affordability is at a record high. And the market is
littered with distressed properties looking for a buyer.
But there is one big obstacle for many first-time house hunters looking to take advantage of the market: cash
for down payments. The typical first-time buyer has only saved enough to cover 4% of the purchase price,
according to the National Association of Realtors.
As part of the stimulus package, Congress created a refundable first-time homebuyers tax credit in hopes of
helping on-the-fence buyers to take the home-purchase plunge. But buyers couldn't collect the $8,000 credit
until tax time, rather than at closing time - when it's needed.
Now the U.S. Department of Housing and Urban Development is planning to change that. The agency is working
on a plan that will allow Federal Housing Authority-approved lenders to provide buyers with the tax credit cash
up front.
"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so
that the cash can be used as a down payment," said Shaun Donovan, HUD secretary, in a speech last Tuesday
before the National Association of Realtors.
States first
Donovan did not reveal many details, but the plan could be modeled after programs in Colorado, Missouri, New
Jersey, Pennsylvania, Tennessee and Washington. To quickly infuse cash into their housing markets, these
states created "bridge loans" that allow buyers to borrow against the $8,000 credit and then repay it with their
tax refunds.
The first state to launch such a plan was Missouri, which rolled out its Missouri Housing Development
Commission Tax Credit Advance Loan program on January 14 - a month before Congress approved the stimulus
package. Since then, Missouri has approved applications by more than 300 borrowers and closed on 128 of them.
Lamar Cherry and his wife, Chrishanna, used the program to augment their down payment when they bought
their home in Kansas City.
The couple purchased a four-bedroom, three-bath split-level home for $150,000, putting about 6% down. Much of
that $9,000 came from the loan program, which they tapped so they wouldn't have to drain their reserves.
"We had money saved up that we were going to use for the down payment," said Cherry. "Now we can use some
of that to buy some things we need for the house."
At closing, the Cherrys, like all buyers in the program, signed for their first mortgage, plus a second mortgage
issued by the state. The second note is good for 6% of the price of the home, up to $6,750; there is a $350 set-up
fee, but no interest is charged if the debt is repaid by June 2010.
In Missouri, borrowers can only access $6,750 of the $8,000 credit for down payments. "We wanted them to have
a cushion below that $8,000 in case other tax liabilities show up," said Greg Spurgeon, the single-family
homeownership administrator for the Missouri Housing Development Commission.
If borrowers don't pay off the note, it becomes a 10-year fixed-rate mortgage with an interest rate one-half
percentage point above that of their first mortgages. For example, borrowers paying 6% on their first mortgages
would be charged 6.5% on the second.
So far, Spurgeon said, a significant proportion of participating homebuyers have repaid their loans. He expects
most of the others to do the same before the deadline.
Cherry has claimed the federal tax credit on his 2008 taxes, but he hasn't gotten his refund yet. He definitely
intends to repay the loan before the 2010 deadline because, he said, not doing so would add about $75 a month to
his house payments.
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May 8, 2009 Many ask, "How's the Real Estate Market?" Well if you would like to know, Charlotte April
Statistics have just been released. Contact Jennifer Lew for more Charlotte Real Estate news. Please see below
Charlotte Regional Realtor Association April 2009 Real Estate Statistics.
Average List Prices April 2009 $228,500 vs. April 2008 $235,127 (-3%)*
Average Sold Prices April 2009 $201,352 vs. April 2008 $221,497 (-9%)*
with Current Average Days on Market 117.2 days (3 more days than last month, 114 days)*
New listings April 2009 is 5,050 vs. April 2008 6,583 (this is actually a good thing since we have a lot of inventory
right now carried from last year, so new listings are down by -23%)*
*data comes from Carolina Multiple Listing Services, Inc. May 7, 2009
+Interest Rates have decreased drastically from a year ago: April 2009 4.78% vs. April 2008 6.03% (Great time
to buy!)
+source: Freddie Mac, National Association of Realtors Forecast May 7, 2009
--------------------------------------------
May 1, 2009, 5 tips on buying a Foreclosed Home from CNN Money.com and Money Magazine http://money.cnn.
com/2009/04/30/real_estate/buying_foreclosures.moneymag/index.htm?postversion=2009050106
Sure, there are great real estate deals to be had, if you know what you're doing.
By Amanda Gengler, Money magazine writer
May 1, 2009: 6:17 AM ET
1. Finding one has become easier
You don't need to show up at courthouse auctions or comb through legal filings. These days many banks sell
foreclosed homes through real estate agents. So call Jennifer Lew at 704-591-5542 if you are interested in
finding a Foreclosure.
2. It's best to buy from a bank
If you buy a foreclosed home at an auction before the bank repossesses it, you'll have to pay in cash, and you
usually cannot inspect the property. You may also later discover that there are liens against it.
When a bank takes back a home, however, it will clear any outstanding liens. Plus, when you buy a bank-owned
property, you can inspect it beforehand, and you can finance the purchase with a mortgage. Leave your suitcase
full of cash at home.
3. Bring in a contractor before you buy
Many foreclosed homes have been abandoned, some even vandalized, and they often require major repairs.
"One mistake a lot of people make is underestimating how much work it needs and the cost," says Rick Sharga
of RealtyTrac.
To avoid getting stuck with a surprise bill, ask a contractor to give you an estimate of how much the restoration
will cost and how long it will take. Many will do so for free in hopes of winning your business.
4. Bid low
Banks aren't necessarily selling foreclosures at fire-sale prices; some are listed at market value, says Gene
Hacker, a broker in Orange County, Calif. So be prepared to haggle. The bigger the inventory of foreclosed
homes the bank has and the longer the property has sat, the greater your chances of nabbing a great deal, says
Chris Matty of ForeclosurePoint.com.
Set your initial offer about 20% below market price - or more if your area has a lot of foreclosures.
5. Be prepared to wait
While some lenders are getting back to bidders within 36 hours, others are dealing with an enormous backlog
that can hold up their response for as long as three months. While you wait, someone can trump you with a
higher offer.
To boost your chances at scoring a home you love, have multiple properties in mind, and get your financing pre-
approved before you bid. Even if the lender says it has another offer, follow up every week - these deals can
often fall through.
*****************************
April 21, 2009 No longer is a bigger home better. We all want to live smarter and that means living smaller.
See below how to downsize and do more with less.
Here are 10 tips to help you cope with your smaller space:
1. Paint color: Open-plan rooms should have a single paint color to make them look larger.
2. Window treatments: Avoid heavy, elaborate curtains. Keep the window coverings close to the color of the
walls. Good choices to make a small room appear larger are plain linen or sheer panels.
3. Flooring: Avoid using too many area rugs that break up the space in homes with open plans. Leave all the
floors bare except for one rug in the living room to anchor the conversation area.
4. Unclutter: Take everything off the floor that’s not furniture. This means removing sports equipment and
stacks of newspapers and magazines.
5. Seating: Add additional seating with armless chairs or put matching ottomans on casters under the coffee
table.
6. Storage: Put trunks or baskets under tables to add storage.
7. Beds: Forget the footboard to make your bed look as if it takes up less space in the room.
8. Extra chairs: Place a pair of extra chairs for dining in the hall flanking a chest.
9. Lighting: Recessed and track lighting hug the ceiling and can make any space look more expansive. Avoid
chandeliers and ceiling fans.
10. Walls: Avoid hanging too much art on the walls. Instead, rotate your art from storage and leave one wall
bare in each room to allow the eye to rest.
By the numbers:
-89% of home builders are building lower-priced homes.
-88% of home builders are building smaller homes.
-58% of affluent Baby Boomers are likely or somewhat likely to move to a smaller home within 10 to 15 years.
-52% of brokers said the desire to downsize was cited by empty-nester clients as why they are moving.
Article taken from RIS Media: The Leader in Real Estate Information Systems http://rismedia.com/2009-04-
19/doing-more-with-less-downsizing-on-the-upswing/
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April 10, 2009 Charlotte Regional Realtor Association just released March 2009 Real Estate Statistics.
Average List Prices March 2009 $216,135 vs. March 2008 $233,882 (-8%)
Average Sold Prices March 2009 $191,433 vs. March 2008 $220,620 (-13%)
with current average Days on Market 114 days
New listings March 2009 is 5,223 vs. March 2008 6,746 (this is actually a good thing since we have a lot of
inventory right now carried from last year, so new listings are down by -23%)
Interest Rates have decreased drastically from a year ago: March 2009 4.85% vs. March 2008 5.85% (Great time
to buy!)
****************************
Great article from CNBC regarding US Economy Could Recover Much Sooner Than Expected
Topics:Economic Data | Interest Rates | Inflation | Ben Bernanke | Employment | Consumers | Federal Reserve |
Federal Budget (U.S.) | Economy (Global) | Economy (U.S.)By: Albert Bozzo, Senior Features Editor | 09 Apr 2009
| 11:55 AM ET Text Size
You've heard all the gloom and doom about this recession. Now here's some good news: the economic recovery
could happen much sooner—and be much stronger—than anyone thought possible.
Suddenly, a small but growing group of private-sector economists is disputing the idea that the recession will
drag on for months and that the rebound will be as weak as those following the the 1991 and 2001 downturns.
“Too many people’s idea of recession have been formed by the last two recessions,” says Robert Brusca of Fact
& Opinion-based Economics, referring to the 1991 and 2001 periods, which were both short and shallow. "I think
that's mistaken.” http://www.cnbc.com/id/30111906
______________________________________________
April 1, 2009 New home sales rebounded last month which was unexpected and was taken as a positive note!
Today’s reports, according to the Case-Shiller index which gauges home prices across the country, indicate that
home prices slid more than expected compared to last year, but most of those areas had such a huge growth rate
as well that just was not normal and healthy…so it just means that overall, the gains have been erased. There
are two ways of looking at this though…and it can be very exciting to think about what one can BUY at these
prices…AND combine that with today’s rates! This is a time of amazing opportunities!
Below is an excerpt from an article on CNBC that is good info to when comparing buying to renting:
Owning Costs Less
“’You can now own a home in so many areas of the country for less than it costs to rent,’ said Mollie
Carmichael, senior vice president at John Burns Real Estate Consulting in Irvine, California.
Out of the 76 metropolitan area markets across the United States tracked by the company, a whopping 50
percent show that a person can buy a house for less than renting when considering the after-tax cost of
homeownership, she said. “
New home prices were a big part of the downturn as many builders have cut…and cut…to reduce inventory.
Lennar, the second-largest U.S. homebuilder reported a wider quarterly loss as it scrambled to sell off its
inventory of homes in this current market which continues to take its toll on builders. There are deals out
there, but today’s deal could be a nightmare if the discounts continue to deepen.
Changes on the financing side to be aware of:
1-FHA cash out refinances used to be allowed up to 95%, but effective tomorrow, that all changes to 85%. This
is in response to the delinquency of those loans at the higher limits and mirrors more the FNMA
guidelines…even though they may get cut further on cash out refinances.
2-PMI companies have tightened as well. I have a loan that we got a clean FNMA automated approval on at 45%
total debt ratio, but we can’t get PMI on it because the max debt ratio on the remaining PMI companies caps at
41%...REGARDLESS of the DU findings. All the more reason to be prequalified up front to make sure you are
looking to buy in the right price range.
______________________________________________
March 27, 2009, Stocks retreat after the rally Wall Street pulls back after a three-week advance that sent the
major gauges up more than 20%. By Alexandra Twin, CNNMoney.com senior writer Last Updated: : 1:55 PM ET
NEW YORK (CNNMoney.com) -- Stocks slipped Friday as investors took a step back after a nearly three-week
long advance that has propelled the major gauges off of multi-year lows. The Dow Jones industrial average
(INDU) fell 180 points, or 2.3%, with about 2 hours left in the session. The S&P 500 (SPX) index lost 19 points,
or 2.3%. The Nasdaq composite (COMP) lost 41 points, or 2.6%. Stocks had rallied Thursday, extending the
nearly three-week old rally but Wall Street pled exhaustion Friday morning. All three major gauges have rallied
more than 20% in just three weeks. While the run could have another 10% to go, it's likely to peter out after
that, said Dean Barber, president at Barber Financial Group. "I think there is momentum here in the short run,
but this is the classic bear market rally and investors need to be careful not to fall into the classic bear-market
trap," Barber said. He said that the advance has been based on hope that the recession will soon end because a
lot of money has been thrown at the financial sector and the economy. However, fundamentally, the economy
remains in bad shape, as do the state of corporate profits. Financial and technology shares, which led the
advance on Thursday, led the retreat on Friday. But declines were broad based and 25 of 30 Dow stocks fell.
President Obama is meeting Friday with executives from JPMorgan Chase (JPM, Fortune 500), Citigroup (C,
Fortune 500) and the nation's other largest banks to discuss the financial crisis. Rapid rally: Since falling to
more than 12-year lows on March 9, the Dow had gained 21% and the S&P 500 had gained 23% as of Thursday's
close. Also on March 9, the Nasdaq touched a more than six-year low. Since then, it has gained 25%. But year-to-
date, only the Nasdaq has closed in positive territory, while the Dow and S&P 500 remain below early-February
levels. Better-than-forecast economic reports on housing and durable goods orders this week have added to
hopes that the economy is closer to turning around. Investors have also responded well to the latest plans from
the government to stabilize the financial system. On Thursday, Treasury Secretary Tim Geithner outlined a
huge overhaul of the regulatory system. On Monday, he detailed plans to purge bank balance sheets of up to $1
trillion in bad debt that is limiting lending. Economic news: Personal income fell 0.2% in February after rising
0.2% in January. Economists surveyed by Briefing.com thought it would fall 0.1%. Personal spending rose 0.2%
in February after rising 1% in January. Economists thought it would rise 0.2%. The University of Michigan
consumer sentiment index rose to 57.3 in March from 56.3 in February, versus economists' forecasts for a
reading of 56.8. Company news: Google (GOOG, Fortune 500) said late Thursday that it was cutting just under
200 sales and marketing positions worldwide. It is the second round of layoffs in Google history. General Motors
(GM, Fortune 500) shares gained on published reports that the government could extend the automaker's
restructuring deadline, giving it more time to gain concessions from unions and qualify for more taxpayer help.
The Wall Street Journal said that the government could extend the March 31 deadline by 30 days. On Thursday,
GM said that 12% of its U.S. workforce has taken its latest buyout offer. However, the company is still looking
to work with the union to alter retiree health care benefits, among other things. Market breadth was negative.
On the New York Stock Exchange, losers beat winners three to one on volume of 700 million shares. On the
Nasdaq, decliners topped advancers three to one on volume of 1.21 billion shares. Bonds: Treasury prices fell,
raising the yield on the benchmark 10-year note to 2.76% from 2.73% Thursday. Treasury prices and yields
move in opposite directions. Lending rates declined. The 3-month Libor rate fell to 1.22% from 1.23% Thursday,
according to Bloomberg.com. The overnight Libor rate fell to 0.28% from 0.29%. Libor is a bank-to-bank
lending rate. Other markets: In global trading, Asian markets mostly ended higher and European markets
tumbled in afternoon trading. In currency trading, the dollar gained against the euro and fell against the yen. U.
S. light crude oil for May delivery fell $2.44 to $51.90 a barrel on the New York Mercantile Exchange. COMEX
gold for May delivery fell $14.90 to $926 an ounce.
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On March 11, 2009, The Dangers of mixing Banking and Commerce: Banking Conglomerates Permanently
Barred from Real Estate Activities President Obama signed into law the FY2009 Omnibus Appropriations Act
that permanently prohibits banks from entering the real estate brokerage and management businesses.
Why should we care? If banks had been allowed to engage in real estate brokerage, it would have created anti-
competitive and anti-consumer concentrations of power within the financial services sector, which would have
ultimately increased costs for homebuyers. http://www.realtor.org/banks_and_commerce.nsf
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March 6th, EXCELLENT news for the Charlotte/Gastonia/Concord area as the new limit for FHA in our market
is now $303,750.
More updates on rates if you are still are holding out for the 4.5% range and, while there is a possibility of
getting there on a purchase loan even today, it is reserved for 20% down loans with an excellent credit score
customer and the customer will have to pay a point or so. Here is more on that and the link for backup.
Even borrowers with decent credit aren't immune to higher fees and mortgage costs. In general, to get the
low rates that make the headlines, borrowers often also are paying more points, or prepaid interest, to bring the
mortgage rate down. http://www.chicagotribune.com/business/chi-tue-t6-mortgage-fees-0303mar03%2C0%
2C4080670.story
"Making Home Affordable", from the Obama administration was unveiled and here are the basic points from it.
NOTE: Buyers who are holding out for lower rates, and those who are holding out to refinance at a lower rate,
should not hold their breath. Of course, it’s always their choice, but I’m afraid we’ll have a bunch of people
lying around either unconscious or blue in the face as the recent plan does mention making lower rates
available, but only for the select few that qualify…and it is geared more towards those who meet the following
characteristics:
*Mortgages for single-family properties that are worth more than $729,750 are excluded. Lenders could reduce a
borrower's interest rate to as low as 2 percent for five years. Rates would then rise to about 5 percent until the
mortgage is repaid.
*The Obama administration's program has two parts: one to work with lenders to modify the loan terms for up
to 4 million homeowners, the second to refinance up to 5 million homeowners into more affordable fixed-rate
loans.
*For the modification program, borrowers who are eligible will have to provide their most recent tax return and
two pay stubs, as well as an "affidavit of financial hardship" to qualify for the loan modification program, which
runs through 2012.
For more on this to pass on to your buyers who may call for help on their current mortgage: http://www.cnbc.
com/id/29511703
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Friday, Feb. 27th Forbes names Charlotte #3 market in Nation, click link to read more
http://realestate.msn.com/article.aspx?cp-documentid=18080758>1=35000
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Friday, Feb. 20th Stimulus Plan First-Time Homebuyer Tax Credit
A Special Update from MBSQuoteline
The Stimulus Plan was signed into law by President Obama on Feb. 17th. It contains a new tax credit for
first-time homebuyers. Essentially, first-time homebuyers within certain income limits who purchase a
home in 2009 before December 1, 2009 will receive a tax credit of up to $8,000. The program is similar
to the $7,500 tax credit which applied to home purchases made in 2008 after April 9. A comparison of the
two credit programs is outlined below.
While the Stimulus Plan was still being debated, the Senate version originally included a $15,000 tax
credit for all homebuyers. To lower the cost of the Stimulus Plan, the final version of the Plan contained
this smaller tax credit, and this tax credit is applicable only to first-time homebuyers.
To qualify as a first-time home buyer as defined in the programs, the purchaser (and the purchaser’s
spouse) may not have owned a home in the three years prior to the purchase date of the home. Single
family homes qualify for the program. The home must be the primary residence.
Both tax credits are subject to the same adjusted gross income limitations (full credit for AGI less than
$75,000 single/$150,000 joint, phased out for AGI up to $95,000 single/ $170,000 joint).
The amount for either credit is the lesser of 10% of the home purchase price or $7,500 or $8,000, as
applicable.
While a purchaser still owns the home, the $7,500 credit must be repaid in equal payments over a period
of 15 years, starting with the 2010 tax filing.
The $8,000 credit will not need to be repaid. Again, the $7,500 credit needs to be repaid, while the $8,000
credit does not!
Upon sale of the home, any portion of the $7,500 credit not yet repaid is due in full. No portion of the
$8,000 credit is due upon sale of the home, if the home is owned for more than three years. If the home is
sold within the first three years, the full amount of the credit is due upon sale.
The $7,500 credit was not available to any purchaser utilizing state/local revenue bond money to help
finance the home purchase. There is no such restriction on the $8,000 credit.
Under both the $7,500 and the $8,000 programs, the credit will be claimed on the purchaser's income
taxes. Any amount in excess of taxes owed will be refunded to the purchaser.
Additional information about the tax credit can be found on the websites of the National Association of
Realtors (www.realtor.org) and the National Association of Home Builders (www.nahb.org).
Commitment and support from the Treasury for the mortgage giants, FNMA and FHLMC, to "ensure
the strength and security of the mortgage market and to help maintain mortgage affordability,” In other
words, mortgage financing will be available and I continue to get comments from clients who believe the
required down payment is 20% across the board which is far from the truth.
Remember: A low down payment of 3.5% is allowed with FHA and that can be gifted 100% from family
members, can be from bonuses, etc. or available through the NC Bond program for 100% loans, in
essence. VA loans are excellent options for 100% financing. 5% down with PMI, which MAY be tax
deductible, is still available as well. Money is not as tight for mortgages as most would have you think! .
Refinancing will be more available and not tied to the loan to value and may be receiving lower
interest rates.
Common sense and conservative values were stressed by President Obama in his speech unveiling
the plan and that, long term, may be one of the most valuable lessons we all learn from this era!
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Five reasons to buy a home this year
Affordability returns to housing, and buyers have loads of negotiating power
By Amy Hoak, MarketWatch
Last update: 12:15 a.m. EST Feb. 6, 2009
Comments: 173
CHICAGO (MarketWatch) -- People are afraid to buy a home in times like these, with the economy tanking and
home prices continuing to fall. But if you're brave enough to stray from the herd, you might be in for the home-
buying opportunity of a lifetime.
Ask for price reductions, improvements, closing costs -- whatever -- and the seller, desperately trying to get a
contract, is very likely to work with you, said Jay Papasan, one of the authors of the book "Your First Home."
When the market starts improving, your negotiating power starts to diminish, he added.
"People can get a lot of what they need and almost all of what they want today," Papasan said. "Once a few
people get off the fence, there's safety in numbers and you lose your leverage."
If you're qualified to buy a home now, the purchase makes sense for your situation and you're prepared to live
in that home for at least five years, there are five reasons why you may be headed for a great deal:
1. Affordability is better than ever
According to the National Association of Realtors' housing affordability index, homes were more affordable in
December than at any other point since the group started the index in 1970. The affordability index is a measure
of the relationship between home prices, mortgage interest rates and family income.
John and Julie Chilman, for example, recently have been able to stretch their dollars in the Las Vegas area. The
listing price for the five-bedroom home they're buying was $265,000; they offered $250,000.
"Our Realtor was like 'Yeah, pipe dream. Like they're going to take that,'" John Chilman said. "And all they
did was counter $255,000... and they're paying all closing costs." The home had lingered on the market, and was
listed for $310,000 just six months ago, he said.
In Las Vegas, prices have fallen 50.7% from their peak and are now where they were in the second quarter of
2002, according to data from Clear Capital, a real estate valuation and data provider for banks and investment
firms.
A report from Moody's Economy.com, released this week, predicted that house prices will stabilize by the end of
this year, even though the Case-Shiller house price index will fall another 11% from the fourth quarter of 2008.
By the end of the real-estate downturn, prices will have fallen by double digits, from peak to trough, in almost
62% of the nation's 381 metro areas, according to the report. In 10% of the areas, declines will be more than
30%.
Not all markets have experienced huge drops, however, so it's wise to take a look at how far prices have fallen in
your area. The Office of Federal Housing Enterprise Oversight's Web site has a house price calculator that can
help. Visit the calculator.
2. You have a large inventory to choose from
In many places it is taking months to sell a home, creating loads of inventory -- from new homes to existing
homes to foreclosures. There was a 12.9-month supply of inventory in December given that month's sales pace,
according to NAR.
A large selection gives buyers more choices and drives down prices. And home sellers have gotten the picture.
It's fair to say that home sellers have become "increasingly desperate," Papasan said. "People who have had for-
sale signs in the yard for six months are starting to become in tune with the reality of the situation," he said.
Buyers can take advantage.
But if you put off a purchase until inventory shrinks substantially, you might not get as good a price, said Eddie
Fadel, author of the book "Don't Rent, Buy!" And be forewarned: It's nearly impossible to time the exact
bottom of the housing market and even if you do there's no guarantee you'll make a killing.
"You buy for quality of life... don't buy on speculation," said Duane Andrews, CEO of Clear Capital. "I wouldn't
buy a home expecting the housing market to rebound quickly in the next 10 years," he said, adding that he
expects moderate gains in values when the turnaround does happen.
Historically, real estate appreciates about 5% a year over the long term, said Nancy Flint-Budde, a Salem, N.Y.-
based certified financial planner. But as the country crawls out of a recession, many markets probably won't see
huge home-price gains any time soon.
3. Builders are offering big discounts
Home builders are getting even more aggressive with their pricing. In fact, Fadel recommends looking at
completed new homes first because builders are offering such steep discounts. Plus, you'd have a warranty not
only on the home itself, but also on the home's appliances, he said.
"[Builders] want to save their credit, save their brand, save their reputation and clear out inventory," he said.
"They can go buy cheap land today with that cash."
His advice: Walk in with a preapproval for a mortgage, make an offer, then walk away without making a deal if
you have to. Chances are, a builder will call back and reconsider that offer rather than let a potential buyer get
away. Read more on the outlook for home builders in the spring sales season.
4. Mortgage rates are historically low
It's not just the price of the home that will affect affordability; mortgage terms will also affect your monthly
payments. These days, rates are very attractive for conforming loans, those that can be purchased by mortgage
agencies Fannie Mae and Freddie Mac. (The current limit is $417,000, although that can rise as high as $625,500
in high-cost markets.)
Earlier this year, rates on the popular 30-year fixed-rate mortgage hit a level not seen in decades, and rates have
stayed relatively near that low for weeks. This week, the 30-year fixed-rate mortgage averaged 5.25%, according
to Freddie Mac's weekly mortgage survey. See full story.
More mortgage help could also be on the way. Last week, President Obama said that his new economic plan,
which Treasury Secretary Timothy Geithner is set to unveil Monday, would help lower the cost of mortgages for
home buyers, although he did not give specifics.
But low rates don't mean lenders are handing out mortgages easily. You'll need good credit, a substantial down
payment and a willingness to document your income in order to qualify for those great rates, if you can qualify
at all.
5. You can get a federal tax credit
There's currently a federal credit of up to $8,000 for home buyers who haven't owned a home in at least three
years. The credit needs to be paid back, although the repayment feature is removed in the economic stimulus
plan that passed in the House of Representatives.
That extra cash will come in handy: The average first-time home buyer spends about $6,000 in the first six
months of owning a home, said Flint-Budde.
The National Home Builders Association is pushing for more help for home buyers, including an even bigger tax
credit -- the Senate in its version of the economic stimulus bill is proposing a $15,000 credit. And both NAHB and
the National Association of Realtors want the incentive to help all buyers, not only those who are becoming
homeowners for the first time.
Waiting for further federal developments, however, might sap a buyer's negotiating power, as more people get
back into the market and competition returns, Fadel said.
"The more Washington gives, demand will increase," he said.
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