Everyone who sells a home thinks to tidy it before potential buyers visit. But do sellers understand how to play up their home's assets and mask its flaws in order to sell it quickly and for top dollar? This is exactly what a home stager does. A home stager is a designer or stylist who suggests ways to make the home more appealing to potential buyers.
"When selling your house, you're emotionally invested in the home you've created," said Holly Slaughter, editor-in-chief of the RealEstate.com Tips and Tools. "Hiring a professional home stager, who is impartial, can help highlight your home's selling points and make it more appealing to a wide range of buyers."
When deciding whether or not to hire a home stager, consider:
Select your level
Home staging offers many levels of service. For $100 or less, a home stager will walk through your house and offer advice on what is the best way to present your home for your upcoming showings. You may be told to clean up the clutter, hang pictures or mirrors in new locations, repaint the walls or scrub those hard to reach areas of the floors. For a higher fee, a stager can perform a more hands-on role such as repositioning furniture, arranging flowers and suggesting great tips for highlighting your home's curb appeal. And then for an even higher fee, home stagers can redecorate your home from a warehouse full of furniture and decor items, bring in shrubs and annuals or clean out that one room collecting clutter over the years.
It may be worth every penny
Stagers say the cost is worth it. Some studies show that a house that has been staged is on the market for fewer days and sells for a higher price than comparable homes. Depending on the home and the neighborhood, a home stager may be just what you need to sell your home more quickly and get the top dollar you're looking for.
Your time is valuable
Consider your time. For busy people, hiring a home stager is money well spent. If you need to sell quickly, or if your house has been on the market for some time with little interest from prospective buyers, home staging might be the answer.
You can find home stagers through associations such as the International Association of Home Staging Professionals, Accredited Staging Professionals or the Interior Redesign Industry Specialists.
RealEstate.com Offers Advice
RISMEDIA, April 23, 2007
Monday, April 30, 2007
Sunday, April 29, 2007
Real estate and self-directed IRAs
By Laura Bruce • Bankrate.com
If you're tired of being limited to the typical lineup of stocks, mutual funds, bonds and CDs that most brokerages allow you to buy in your IRA, you might consider creating a self-directed IRA that enables you to invest in real estate.
The addition of real estate can diversify a portfolio and, to be sure, buying actual property to be held in your IRA is just one way to do it. The process is not terribly complicated, but as with any retirement account, you must follow the letter of the law or face penalties from the IRS. Additionally, unlike the run-of-the-mill self-directed IRAs that allow you to invest in the aforementioned stocks and bonds, a self-directed account that holds real estate arguably requires considerably more work on your part. It is also a much higher-risk investment.
In his book, "The No-Nonsense Real Estate Investor's Kit," Thomas Lucier writes, "... the real estate investment business is full of four-letter words such as: hard, work, risk and loss."
If you don't know much about real estate, if you're not willing to do a lot of so-called "due diligence," and if you're not financially or emotionally prepared to handle significant risk, don't attempt this. Sure, you can make painful mistakes in the stock market, but, generally speaking, your investments are liquid and you can cut your losses quickly if you feel it's necessary. The real estate market is not as forgiving.
What an IRA custodian does
But if you're determined, start by opening a self-directed IRA or self-directed Roth IRA with a custodian or administrator. Although this article focuses on real estate, a self-directed IRA can hold trust deeds, secured and unsecured notes, limited partnerships, private stock and other nontraditional investments. An Internet search will probably turn up a couple dozen companies that will handle these types of investments.
However, don't expect them to advise you on what properties to buy. A custodian is a neutral third party and it is not allowed by law to give that type of advice.
"We act only as the IRA custodian," says Kelli Click, vice president at Sterling Trust Company in Waco, Texas. "This is a simple illustration of what takes place, but an individual comes to us, sets up an IRA and tells us they want to purchase the property at 100 Main Street. They find the title company, get everything in place, tell us to wire the funds to the title company and here's the closing date. We purchase the property and make sure it's in the name of the IRA account. We hold the property and provide the account holder with a quarterly statement, and we provide any IRS reporting for the IRA account."
Fees for custodian services vary, so be sure to get a complete list of fees before hiring someone.
You can use your self-directed IRA to buy your future retirement home, but you can't live in the home until you retire. You also cannot put a piece of property that you currently own into your IRA.
If you're tired of being limited to the typical lineup of stocks, mutual funds, bonds and CDs that most brokerages allow you to buy in your IRA, you might consider creating a self-directed IRA that enables you to invest in real estate.
The addition of real estate can diversify a portfolio and, to be sure, buying actual property to be held in your IRA is just one way to do it. The process is not terribly complicated, but as with any retirement account, you must follow the letter of the law or face penalties from the IRS. Additionally, unlike the run-of-the-mill self-directed IRAs that allow you to invest in the aforementioned stocks and bonds, a self-directed account that holds real estate arguably requires considerably more work on your part. It is also a much higher-risk investment.
In his book, "The No-Nonsense Real Estate Investor's Kit," Thomas Lucier writes, "... the real estate investment business is full of four-letter words such as: hard, work, risk and loss."
If you don't know much about real estate, if you're not willing to do a lot of so-called "due diligence," and if you're not financially or emotionally prepared to handle significant risk, don't attempt this. Sure, you can make painful mistakes in the stock market, but, generally speaking, your investments are liquid and you can cut your losses quickly if you feel it's necessary. The real estate market is not as forgiving.
What an IRA custodian does
But if you're determined, start by opening a self-directed IRA or self-directed Roth IRA with a custodian or administrator. Although this article focuses on real estate, a self-directed IRA can hold trust deeds, secured and unsecured notes, limited partnerships, private stock and other nontraditional investments. An Internet search will probably turn up a couple dozen companies that will handle these types of investments.
However, don't expect them to advise you on what properties to buy. A custodian is a neutral third party and it is not allowed by law to give that type of advice.
"We act only as the IRA custodian," says Kelli Click, vice president at Sterling Trust Company in Waco, Texas. "This is a simple illustration of what takes place, but an individual comes to us, sets up an IRA and tells us they want to purchase the property at 100 Main Street. They find the title company, get everything in place, tell us to wire the funds to the title company and here's the closing date. We purchase the property and make sure it's in the name of the IRA account. We hold the property and provide the account holder with a quarterly statement, and we provide any IRS reporting for the IRA account."
Fees for custodian services vary, so be sure to get a complete list of fees before hiring someone.
You can use your self-directed IRA to buy your future retirement home, but you can't live in the home until you retire. You also cannot put a piece of property that you currently own into your IRA.
Monday, April 23, 2007
Fannie, Freddie Plan to Help Distressed Borrowers
The heads of Fannie Mae and Freddie Mac told a House Financial Services committee Tuesday that they are devising new types of loans to help distressed borrowers.
Richard Syron, Freddie Mac's chairman and CEO, says the company is developing more consumer-friendly subprime products that will provide stable financing alternatives. He expects them to be available by mid-summer. He says the new products will include 30-year and possibly 40-year fixed-rate mortgages as well as adjustable-rate mortgages with longer fixed-rate periods.
Fannie Mae, in a new program called "HomeStay," is offering new options so that lenders can help subprime borrowers refinance out of high-interest adjustable-rate mortgages or other difficult loans, says president and CEO Daniel Mudd.
He said the company plans to stretch the term on sub-prime loans to 40 years from the current maximum 30 years – which will reduce monthly payments for borrowers by about 5 percent.
Source: Associated Press (04/18/2007)
Richard Syron, Freddie Mac's chairman and CEO, says the company is developing more consumer-friendly subprime products that will provide stable financing alternatives. He expects them to be available by mid-summer. He says the new products will include 30-year and possibly 40-year fixed-rate mortgages as well as adjustable-rate mortgages with longer fixed-rate periods.
Fannie Mae, in a new program called "HomeStay," is offering new options so that lenders can help subprime borrowers refinance out of high-interest adjustable-rate mortgages or other difficult loans, says president and CEO Daniel Mudd.
He said the company plans to stretch the term on sub-prime loans to 40 years from the current maximum 30 years – which will reduce monthly payments for borrowers by about 5 percent.
Source: Associated Press (04/18/2007)
Sunday, April 22, 2007
New Credit Score Based on Rent, Utility Payments
Fair Isaac has launched the FICO Expansion Score to help prospective borrowers with minimal credit histories obtain loans and credit scores.
The Expansion score gauges a borrower's creditworthiness using timely utilities and rent payments and clean checking accounts, among other factors.
While car dealers and credit-card companies have already embraced the new scoring model, mortgage lenders are unlikely to do so unless Fannie Mae and Freddie Mac purchase the resulting loans.
Kiplinger's Personal Finance, Joan Goldwasser (03/07)
The Expansion score gauges a borrower's creditworthiness using timely utilities and rent payments and clean checking accounts, among other factors.
While car dealers and credit-card companies have already embraced the new scoring model, mortgage lenders are unlikely to do so unless Fannie Mae and Freddie Mac purchase the resulting loans.
Kiplinger's Personal Finance, Joan Goldwasser (03/07)
Friday, April 20, 2007
San Diego Plans for Population Boom
Daily Real Estate News April 20, 2007
San Diego Plans for Population Boom
With 1 million people expected to call San Diego, Calif., home over the next two decades, local county officials believe developers need to plan early so that enough housing is available to accommodate demand.
Tony Pauker, Urban Land Institute of San Diego/Tijuana chairman, says multifamily, high-density infill construction will account for many of these new units; single-family homes will make up only 30 percent of dwellings built this year.
"Within a decade, new single-family home developments will be the rare exception as we adopt development models more judicious of our precious land resources," Pauker says. County planners say developers should focus their efforts on erecting affordable housing near jobs and public transit.
"Well-planned compact growth can help provide more housing, while saving the region from the urban sprawl that has overrun and gridlocked other major metro areas," says Garry Bonelli of the San Diego Association of Governments.
Source: San Diego Daily Transcript, Jill Esterbrooks (04/19/07)
San Diego Plans for Population Boom
With 1 million people expected to call San Diego, Calif., home over the next two decades, local county officials believe developers need to plan early so that enough housing is available to accommodate demand.
Tony Pauker, Urban Land Institute of San Diego/Tijuana chairman, says multifamily, high-density infill construction will account for many of these new units; single-family homes will make up only 30 percent of dwellings built this year.
"Within a decade, new single-family home developments will be the rare exception as we adopt development models more judicious of our precious land resources," Pauker says. County planners say developers should focus their efforts on erecting affordable housing near jobs and public transit.
"Well-planned compact growth can help provide more housing, while saving the region from the urban sprawl that has overrun and gridlocked other major metro areas," says Garry Bonelli of the San Diego Association of Governments.
Source: San Diego Daily Transcript, Jill Esterbrooks (04/19/07)
Thursday, April 19, 2007
Californians Stretch Dollars to Buy a Home
Daily Real Estate News (Originally Published February 7, 2007)
Californians Stretch Dollars to Buy a Home
Even as the California housing market slowed in 2006, more people have taking on riskier mortgages so they can become a home owner.
More than 21 percent of buyers in 2006 chose mortgages with no down payment, up from 4.5 in 2000, according to a survey conducted for the California Association of REALTORS®.
The median down payment fell 8.8 percent to $73,000 last year from $80,000 in 2005, even as median home prices rose, at least modestly, in many parts of the state. It was the first annual drop in median down payments since 1995.
People purchasing their first home were four times more likely to take out a loan with nothing down than repeat buyers, according to the report. About 40 percent of first-time buyers opted for loans without down payments.
Even as many first-time buyers showed a willingness to take on higher debt, the overall percentage of first-time buyers fell, reaching its second-lowest level on record. Only 27.1 percent of purchasers last year were buying for the first time, down from 30.5 percent in 2005.
"The market is going to have to find a way to add new buyers," says Ed Leamer, director of the UCLA Anderson Forecast. "That's another symptom of a market gone awry."
Source: The San Francisco Chronicle, Marni Leff Kottle (02/07/07)
Californians Stretch Dollars to Buy a Home
Even as the California housing market slowed in 2006, more people have taking on riskier mortgages so they can become a home owner.
More than 21 percent of buyers in 2006 chose mortgages with no down payment, up from 4.5 in 2000, according to a survey conducted for the California Association of REALTORS®.
The median down payment fell 8.8 percent to $73,000 last year from $80,000 in 2005, even as median home prices rose, at least modestly, in many parts of the state. It was the first annual drop in median down payments since 1995.
People purchasing their first home were four times more likely to take out a loan with nothing down than repeat buyers, according to the report. About 40 percent of first-time buyers opted for loans without down payments.
Even as many first-time buyers showed a willingness to take on higher debt, the overall percentage of first-time buyers fell, reaching its second-lowest level on record. Only 27.1 percent of purchasers last year were buying for the first time, down from 30.5 percent in 2005.
"The market is going to have to find a way to add new buyers," says Ed Leamer, director of the UCLA Anderson Forecast. "That's another symptom of a market gone awry."
Source: The San Francisco Chronicle, Marni Leff Kottle (02/07/07)
Monday, April 16, 2007
Waterfront Homes Weather the Storm
Daily Real Estate News April 16, 2007
Waterfront Homes Weather the Storm
Even when the rest of the market is slipping, there's one way to find a property that's almost sure to hold its value: Head to the water.
“[Waterfront property] appreciates faster in good times and declines in value at a slower rate in bad times,” says Alan Hummel, past president of the Appraisal Institute and chief appraiser of Forsythe Appraisals.
What about the increased risk of storms and flooding on the coasts? That won't keep the market down, experts say. Robert Hartwig, president and chief economist with the Insurance Information Institute, told a U.S. Senate committee on last week that the value of insured coastal property will double within the next decade. Hartwig cited a growing number of people who want to live in coastal areas, including in hurricane belts.
The greatest resistance to price declines in a slowing housing market is in areas with limited supply of homes and where buyers are users, not simply investors, says real estate adviser Lewis Goodkin, president of Goodkin Consulting.
He cites such places as Palm Beach, Fla., Fisher Island in the city of Miami Beach and the Southern California coastal locales of Santa Monica, Newport Beach, and Laguna Beach as being the most desirable and the most-insulated from falling prices.
Source: Investors Business Daily, Marilyn Alva (04/12/2007)
Waterfront Homes Weather the Storm
Even when the rest of the market is slipping, there's one way to find a property that's almost sure to hold its value: Head to the water.
“[Waterfront property] appreciates faster in good times and declines in value at a slower rate in bad times,” says Alan Hummel, past president of the Appraisal Institute and chief appraiser of Forsythe Appraisals.
What about the increased risk of storms and flooding on the coasts? That won't keep the market down, experts say. Robert Hartwig, president and chief economist with the Insurance Information Institute, told a U.S. Senate committee on last week that the value of insured coastal property will double within the next decade. Hartwig cited a growing number of people who want to live in coastal areas, including in hurricane belts.
The greatest resistance to price declines in a slowing housing market is in areas with limited supply of homes and where buyers are users, not simply investors, says real estate adviser Lewis Goodkin, president of Goodkin Consulting.
He cites such places as Palm Beach, Fla., Fisher Island in the city of Miami Beach and the Southern California coastal locales of Santa Monica, Newport Beach, and Laguna Beach as being the most desirable and the most-insulated from falling prices.
Source: Investors Business Daily, Marilyn Alva (04/12/2007)
Friday, April 13, 2007
Foreclosures Reshape Neighborhoods
Daily Real Estate News April 13, 2007
Foreclosures Reshape Neighborhoods
Neighborhoods riddled with foreclosures quickly develop other kinds of problems.
In fact, one foreclosure will shave up to 1.5 percent off the value of the other homes on the same block, according to research by Dan Immergluck, associate professor of city and regional planning at Georgia Institute of Technology.
Other costs are harder to measure, but municipal governments, police departments, and neighbors observe that empty homes give rise to an increase in thefts and may encourage drug dealers and even violent criminals to take advantage of the situation.
As homes fall into foreclosure, a neighborhood frequently turns more transient, analysts say. Investors often buy homes in foreclosure and rent them out if they can't sell them.
"You end up with a very fragmented community," says home owner Ann Fulman of Atlanta. "When investors buy them and turn them into rental property … folks come in [who] don't have the means to keep up the place." I
n the Atlanta suburbs of Gwinnett County, the police department recently created a Quality of Life unit to address problems often associated with foreclosures. Working with other government agencies, the unit targets such issues as building-code enforcement, vagrancy, and graffiti.
Source: USA Today, Noelle Knox (04/13/07)
Foreclosures Reshape Neighborhoods
Neighborhoods riddled with foreclosures quickly develop other kinds of problems.
In fact, one foreclosure will shave up to 1.5 percent off the value of the other homes on the same block, according to research by Dan Immergluck, associate professor of city and regional planning at Georgia Institute of Technology.
Other costs are harder to measure, but municipal governments, police departments, and neighbors observe that empty homes give rise to an increase in thefts and may encourage drug dealers and even violent criminals to take advantage of the situation.
As homes fall into foreclosure, a neighborhood frequently turns more transient, analysts say. Investors often buy homes in foreclosure and rent them out if they can't sell them.
"You end up with a very fragmented community," says home owner Ann Fulman of Atlanta. "When investors buy them and turn them into rental property … folks come in [who] don't have the means to keep up the place." I
n the Atlanta suburbs of Gwinnett County, the police department recently created a Quality of Life unit to address problems often associated with foreclosures. Working with other government agencies, the unit targets such issues as building-code enforcement, vagrancy, and graffiti.
Source: USA Today, Noelle Knox (04/13/07)
Thursday, April 12, 2007
Is remodeling worth the expense?
Comparing project valuations (Originally Published Monday, February 19, 2007)
By Dian Hymer
Remodeling magazine's 19th annual "Cost vs. Value Report" could give prospective home remodelers a cause for concern. According to the report, the cost of remodeling increased at the same time that the return on the dollars invested decreased.
Like the recent correction in the home sale market, the remodeling boom of recent years appears to be returning to more normal levels. It was an adjustment that was bound to happen.
Remodeling magazine made changes in the way they analyzed data for the 2006 report, which is thought to have contributed to the higher, yet more accurate, remodeling cost figures. Estimates of resale value are also thought to be more accurate in 2006 than in previous years. A record 2,188 members of the National Association of Realtors completed the magazine's online survey.
Keep in mind that the valuations cited in the report are based on averages. In reality, factors like cost of finishes, the condition of the rest of the house and local market conditions can cause any given remodel project to deviate significantly from the average.
Still, the change from 2005 to 2006 in the national averages for remodeling costs and the amount recouped at sale is significant. For example, Remodeling magazine's 2005 report put the national average cost of a minor kitchen remodel at $14,913. The resale value of the improvements was $14,691, or 98.5 percent of the cost. A minor kitchen remodel consisted of updating, not redoing the kitchen from scratch. Cabinet boxes were left in place; only the doors and drawers were replaced. Appliances, countertops and floor covering were updated with similar materials.
In the 2006 report, the national average cost for the same project was $17,928, up over $3,000, or about 20 percent, from a year ago. The resale value of the improvements also increased, but only to $15,278 -- a 4 percent increase. The amount recouped couldn't keep pace with the increase in renovation costs, so the return on the investment at sale was only 85.2 percent -- a drop of 13.2 percent from a year ago.
According to the 2006 report, a major kitchen remodel returns even less on the investment. The national average cost of a major kitchen remodel was $54,241. The resale value of the improvements was only $43,602, or 80.4 percent of the cost.
HOME SELLER TIP: This report underscores the importance of remodeling with a long term perspective in mind. It doesn't make sense to embark on a major kitchen remodel just before selling your home. You'll recoup less than if you did a modified minor kitchen remodel consisting of painting and updating light fixtures, floor coverings and cabinet pulls.
In addition to national averages, the Remodeling magazine report gives statistics for remodeling costs and resale values for nine regions across the country. In some cases, there is quite a bit of variation from one area to the next. For example, for a minor kitchen remodel in the Pacific Region (Alaska, Calif., Hawaii, Ore., Wash.), the cost recouped was 106.4 percent. In the pricey San Francisco market, the percent recovered was 126.2. But, in the West North Central Region (Iowa, Kan., Minn., Mo., Neb., N.D., S.D.), the amount returned was only 73.4 percent of the cost.
The report covers 25 remodeling projects, and for the first time PDF files are available for the 60 cities that were surveyed. The report, as well as individual city reports, can be purchased and downloaded from www.costvsvalue.com.
THE CLOSING: Before you take on a remodeling project, talk to local contractors for input on costs, and to a trusted realtor for information on how much you can expect to recoup when you sell.
Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.
By Dian Hymer
Remodeling magazine's 19th annual "Cost vs. Value Report" could give prospective home remodelers a cause for concern. According to the report, the cost of remodeling increased at the same time that the return on the dollars invested decreased.
Like the recent correction in the home sale market, the remodeling boom of recent years appears to be returning to more normal levels. It was an adjustment that was bound to happen.
Remodeling magazine made changes in the way they analyzed data for the 2006 report, which is thought to have contributed to the higher, yet more accurate, remodeling cost figures. Estimates of resale value are also thought to be more accurate in 2006 than in previous years. A record 2,188 members of the National Association of Realtors completed the magazine's online survey.
Keep in mind that the valuations cited in the report are based on averages. In reality, factors like cost of finishes, the condition of the rest of the house and local market conditions can cause any given remodel project to deviate significantly from the average.
Still, the change from 2005 to 2006 in the national averages for remodeling costs and the amount recouped at sale is significant. For example, Remodeling magazine's 2005 report put the national average cost of a minor kitchen remodel at $14,913. The resale value of the improvements was $14,691, or 98.5 percent of the cost. A minor kitchen remodel consisted of updating, not redoing the kitchen from scratch. Cabinet boxes were left in place; only the doors and drawers were replaced. Appliances, countertops and floor covering were updated with similar materials.
In the 2006 report, the national average cost for the same project was $17,928, up over $3,000, or about 20 percent, from a year ago. The resale value of the improvements also increased, but only to $15,278 -- a 4 percent increase. The amount recouped couldn't keep pace with the increase in renovation costs, so the return on the investment at sale was only 85.2 percent -- a drop of 13.2 percent from a year ago.
According to the 2006 report, a major kitchen remodel returns even less on the investment. The national average cost of a major kitchen remodel was $54,241. The resale value of the improvements was only $43,602, or 80.4 percent of the cost.
HOME SELLER TIP: This report underscores the importance of remodeling with a long term perspective in mind. It doesn't make sense to embark on a major kitchen remodel just before selling your home. You'll recoup less than if you did a modified minor kitchen remodel consisting of painting and updating light fixtures, floor coverings and cabinet pulls.
In addition to national averages, the Remodeling magazine report gives statistics for remodeling costs and resale values for nine regions across the country. In some cases, there is quite a bit of variation from one area to the next. For example, for a minor kitchen remodel in the Pacific Region (Alaska, Calif., Hawaii, Ore., Wash.), the cost recouped was 106.4 percent. In the pricey San Francisco market, the percent recovered was 126.2. But, in the West North Central Region (Iowa, Kan., Minn., Mo., Neb., N.D., S.D.), the amount returned was only 73.4 percent of the cost.
The report covers 25 remodeling projects, and for the first time PDF files are available for the 60 cities that were surveyed. The report, as well as individual city reports, can be purchased and downloaded from www.costvsvalue.com.
THE CLOSING: Before you take on a remodeling project, talk to local contractors for input on costs, and to a trusted realtor for information on how much you can expect to recoup when you sell.
Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.
Wednesday, April 11, 2007
Daily Real Estate News (Originally Published April 5, 2007)
Lenders Reach Out to Troubled Borrowers
Mortgage lenders, faced with rising portfolios of problem loans, are seeking ways to work with customers to help them pay their loans and keep their homes.
For instance, EMC Mortgage Corp., which has 2.74 percent of its $78 billion portfolio in default, has launched a 50-person team it calls “the Mod Squad.” Its job is to answer calls from customers and work with them to modify their lending agreements so they can catch up.
“You can't just run this like a call center; it needs to be run like a counseling center," says John Vella, president and CEO of EMC.
The Mod Squad isn’t a charitable enterprise. EMC says it loses, on average, 40 percent of the value of a loan in foreclosure and also has to pay taxes and other expenses on the property. Keeping borrowers paying is much more profitable.
The Mod Squad is planning a six-city tour in the hopes of doling out helpful information to struggling home owners. The number is toll-free: 877/362-6631.
Source: Associated Press, Ellen Simon (04/04/2007)
Lenders Reach Out to Troubled Borrowers
Mortgage lenders, faced with rising portfolios of problem loans, are seeking ways to work with customers to help them pay their loans and keep their homes.
For instance, EMC Mortgage Corp., which has 2.74 percent of its $78 billion portfolio in default, has launched a 50-person team it calls “the Mod Squad.” Its job is to answer calls from customers and work with them to modify their lending agreements so they can catch up.
“You can't just run this like a call center; it needs to be run like a counseling center," says John Vella, president and CEO of EMC.
The Mod Squad isn’t a charitable enterprise. EMC says it loses, on average, 40 percent of the value of a loan in foreclosure and also has to pay taxes and other expenses on the property. Keeping borrowers paying is much more profitable.
The Mod Squad is planning a six-city tour in the hopes of doling out helpful information to struggling home owners. The number is toll-free: 877/362-6631.
Source: Associated Press, Ellen Simon (04/04/2007)
Tuesday, April 10, 2007
Daily Real Estate News (Originally Published April 2, 2007)
Can't Pay Your Taxes? Ask the IRS for Help
If you can’t pay your income taxes, don’t panic.
Asking the IRS for a payment plan can be the cheapest and least painful solution, say many tax experts.
The IRS will agree to an installment payment plan as long as you don’t owe more than $10,000, if you’ve filed your returns on time, and if you've paid all taxes due during the last five years. You cannot have entered into a previous installment agreement during that time, and you must pay what you owe within three years.
If you owe more than $10,000, you still can request an installment agreement, but you’ll have to submit more financial information and get approval from an IRS district office. Expect to late payment penalties and interest, as well as an administrative fee of up to $105.
Download an Installment Agreement Request, Form 9465, from the IRS Web site.
Source: Associated Press, Joyce M. Rosenberg (03/30/2007)
Can't Pay Your Taxes? Ask the IRS for Help
If you can’t pay your income taxes, don’t panic.
Asking the IRS for a payment plan can be the cheapest and least painful solution, say many tax experts.
The IRS will agree to an installment payment plan as long as you don’t owe more than $10,000, if you’ve filed your returns on time, and if you've paid all taxes due during the last five years. You cannot have entered into a previous installment agreement during that time, and you must pay what you owe within three years.
If you owe more than $10,000, you still can request an installment agreement, but you’ll have to submit more financial information and get approval from an IRS district office. Expect to late payment penalties and interest, as well as an administrative fee of up to $105.
Download an Installment Agreement Request, Form 9465, from the IRS Web site.
Source: Associated Press, Joyce M. Rosenberg (03/30/2007)
Monday, April 9, 2007
Most Popular Home-Staging Suggestions
Daily Real Estate News April 5, 2007
Most Popular Home-Staging Suggestions
In a slow market, it's particularly important to get a house ready to sell quickly. How do you help a client get their home in prime shape for showings?
Beverly Tracy of Beverly Tracy Home Design in Saratoga Springs, N.Y., walks through a client’s home and sticks Post-It notes on things she believes they need to do to get their home looking its best. Here are some of her most frequently made suggestions:
Fix any visible problems that might be a red flag for potential buyers, including repainting stained walls.
Cover damaged kitchen or bathroom floors with inexpensive peel-and-stick vinyl floor tiles — if a more expensive change seems out of the question.
Repaint public rooms that will garner a lot of a buyer's attention, including the kitchen, dining room, and living room.
Clean up the exterior of the house, added potted plants, repair damaged walkways, and put a fresh coat of paint on the front door.
Rent a storage unit and get rid of about half the furniture and most of the personal items.
When showing the property, turn on every light in the house and tune radios on each floor to the same classical music station.
Suggest that the owners refrain from doing much cooking (baking sweets is a good idea, however) and put good-smelling soaps in all the bathrooms.
Source: Albany Times Union, Stephanie Earls (04/05/07)
Most Popular Home-Staging Suggestions
In a slow market, it's particularly important to get a house ready to sell quickly. How do you help a client get their home in prime shape for showings?
Beverly Tracy of Beverly Tracy Home Design in Saratoga Springs, N.Y., walks through a client’s home and sticks Post-It notes on things she believes they need to do to get their home looking its best. Here are some of her most frequently made suggestions:
Fix any visible problems that might be a red flag for potential buyers, including repainting stained walls.
Cover damaged kitchen or bathroom floors with inexpensive peel-and-stick vinyl floor tiles — if a more expensive change seems out of the question.
Repaint public rooms that will garner a lot of a buyer's attention, including the kitchen, dining room, and living room.
Clean up the exterior of the house, added potted plants, repair damaged walkways, and put a fresh coat of paint on the front door.
Rent a storage unit and get rid of about half the furniture and most of the personal items.
When showing the property, turn on every light in the house and tune radios on each floor to the same classical music station.
Suggest that the owners refrain from doing much cooking (baking sweets is a good idea, however) and put good-smelling soaps in all the bathrooms.
Source: Albany Times Union, Stephanie Earls (04/05/07)
Friday, April 6, 2007
Buying Foreclosed Properties Can Be Risky
Daily Real Estate News April 2, 2007
Buying Foreclosed Properties Can Be Risky
With the NATIONAL ASSOCIATION OF REALTORS® estimating that over 1 million homes will end up in foreclosure during the next couple of years, prospective buyers might view the situation as a means of snapping up a residence at a bargain price.
However, experts note that foreclosure sales can be dicey, with the riskiest deals involving homes purchased at auction. While this format offers the greatest chance of a deep discount, buyers must provide payment at the time of the sale, making a deal without having the property inspected or an assurance that the current residents will vacate the premises.
Once the bank takes possession of homes not sold at auction, buyers can purchase directly from them in a real estate owned (REO) transaction.
While inspections and title insurance are possible, buyers are not likely to receive tremendous discounts or get lenders to respond in a timely manner to their offers under these circumstance.
Those who scan public default notices and approach struggling home owners to inquire about purchasing a dwellings before it ends up in foreclosure assume the least amount of risk; and in most instances, they need only offer more than the mortgage balance but less than the market value to secure the sale.
However, with large inventories of new homes in some markets providing leverages to those in the market for a property, buyers may not need to focus on foreclosures to get a good deal.
Source: USA Today, Christine Dugas (03/30/07)© Copyright 2007 Information Inc.
Buying Foreclosed Properties Can Be Risky
With the NATIONAL ASSOCIATION OF REALTORS® estimating that over 1 million homes will end up in foreclosure during the next couple of years, prospective buyers might view the situation as a means of snapping up a residence at a bargain price.
However, experts note that foreclosure sales can be dicey, with the riskiest deals involving homes purchased at auction. While this format offers the greatest chance of a deep discount, buyers must provide payment at the time of the sale, making a deal without having the property inspected or an assurance that the current residents will vacate the premises.
Once the bank takes possession of homes not sold at auction, buyers can purchase directly from them in a real estate owned (REO) transaction.
While inspections and title insurance are possible, buyers are not likely to receive tremendous discounts or get lenders to respond in a timely manner to their offers under these circumstance.
Those who scan public default notices and approach struggling home owners to inquire about purchasing a dwellings before it ends up in foreclosure assume the least amount of risk; and in most instances, they need only offer more than the mortgage balance but less than the market value to secure the sale.
However, with large inventories of new homes in some markets providing leverages to those in the market for a property, buyers may not need to focus on foreclosures to get a good deal.
Source: USA Today, Christine Dugas (03/30/07)© Copyright 2007 Information Inc.
Wednesday, April 4, 2007
Five Reasons You Should Never Sell a Vacant Home!
Five Reasons You Should Never Sell a Vacant Home!
by Jill Mendoza
It's not everyday you hear about a home selling within three days, with multiple offers, over the list price of $1.3 million in January! Michelle Minch of Moving Mountains Design in Pasadena took a vacant home, and transformed it into a home buyers fell in love with! Comparing the before-and-after photos reminds us why vacant homes generally take twice as long to sell, and are the most important homes to professionally stage. If these visuals aren't enough, here are five reasons why you should NEVER try and sell a vacant home:
1. People Don't Buy Houses, They Buy Homes The number one reason a buyer purchases a home is because it "felt home." It was warm, inviting and the buyer made an emotional connection with the home. When have you ever heard of an empty room described as warm and inviting? Sterile, cold and uninviting are the three most popular words to describe an empty room. Which room above feels more "home" to you?
2. Without Furniture, There Is No Frame Of Reference How big is the room? Without furniture it's incredibly difficult to tell the scale and size of a room. In the above photo, the room looks dark, long and narrow. When the buyer does not have answers to their questions...they walk away.
What is this room for? Many times a buyer can't even tell if it's the living room or dining room in an unfurnished home. Don't keep them guessing, it only distracts them from considering the home as a purchase.
3. When A Room Is Kept Empty, Buyers Focus On Negative Details Can you imagine a brand new Mercedes without a paint job? Do you think people would notice the beautiful car or the missing paint? In the above photo, buyers might be distracted and confused by the columns in the middle of the room.
It's so much easier to notice that crack in the wall, or the chip in the tile when there is nothing else to look at. Home Staging capitalizes on the positive aspects of a home, while de-emphasizing the negative aspects in order to position a home that will make an emotional connection with buyers. These rooms made obvious emotional connections with buyers, and in each photo can count the many ways the Professional Home Stager marketed this home emotionally.
4. Only 10% of Home Buyers Can Actually Visualize the Potential of a Home Nine out of every ten people walking in your home have no imagination of the wonderful possibilities your home has to offer them. In the above photo, buyers would not be able to realize that there is plenty of room for a table and chairs. They just can't picture it. Don't let a simple thing like no furniture or limited furniture ruin your sale. Don't take those odds; they will hurt you in the price significantly!
5. Paying For Two Mortgages Can Get Expensive! Let's look at the facts: a vacant home typically takes twice as long to sell, and the longer something "sits" on the market, the lower the sales price*. Why risk paying two mortgages longer, only to have the sales price lower than it would have been if you had the home professionally staged!
*According to a NAR survey
by Jill Mendoza
It's not everyday you hear about a home selling within three days, with multiple offers, over the list price of $1.3 million in January! Michelle Minch of Moving Mountains Design in Pasadena took a vacant home, and transformed it into a home buyers fell in love with! Comparing the before-and-after photos reminds us why vacant homes generally take twice as long to sell, and are the most important homes to professionally stage. If these visuals aren't enough, here are five reasons why you should NEVER try and sell a vacant home:
1. People Don't Buy Houses, They Buy Homes The number one reason a buyer purchases a home is because it "felt home." It was warm, inviting and the buyer made an emotional connection with the home. When have you ever heard of an empty room described as warm and inviting? Sterile, cold and uninviting are the three most popular words to describe an empty room. Which room above feels more "home" to you?
2. Without Furniture, There Is No Frame Of Reference How big is the room? Without furniture it's incredibly difficult to tell the scale and size of a room. In the above photo, the room looks dark, long and narrow. When the buyer does not have answers to their questions...they walk away.
What is this room for? Many times a buyer can't even tell if it's the living room or dining room in an unfurnished home. Don't keep them guessing, it only distracts them from considering the home as a purchase.
3. When A Room Is Kept Empty, Buyers Focus On Negative Details Can you imagine a brand new Mercedes without a paint job? Do you think people would notice the beautiful car or the missing paint? In the above photo, buyers might be distracted and confused by the columns in the middle of the room.
It's so much easier to notice that crack in the wall, or the chip in the tile when there is nothing else to look at. Home Staging capitalizes on the positive aspects of a home, while de-emphasizing the negative aspects in order to position a home that will make an emotional connection with buyers. These rooms made obvious emotional connections with buyers, and in each photo can count the many ways the Professional Home Stager marketed this home emotionally.
4. Only 10% of Home Buyers Can Actually Visualize the Potential of a Home Nine out of every ten people walking in your home have no imagination of the wonderful possibilities your home has to offer them. In the above photo, buyers would not be able to realize that there is plenty of room for a table and chairs. They just can't picture it. Don't let a simple thing like no furniture or limited furniture ruin your sale. Don't take those odds; they will hurt you in the price significantly!
5. Paying For Two Mortgages Can Get Expensive! Let's look at the facts: a vacant home typically takes twice as long to sell, and the longer something "sits" on the market, the lower the sales price*. Why risk paying two mortgages longer, only to have the sales price lower than it would have been if you had the home professionally staged!
*According to a NAR survey
Tuesday, April 3, 2007
Major Subprime Lender Files for Bankruptcy
Daily Real Estate News April 3, 2007
Major Subprime Lender Files for Bankruptcy
Subprime lender New Century Financial Corp., once the nation’s second-largest provider of mortgages to high-risk borrowers and the target of consumer and government criticism, filed Monday for bankruptcy protection.
The company, which fired 3,200 workers, says it intends to sell off its major assets. CEO Brad A. Morrice said in a statement that the company had made the decision after exploring a variety of ways to stay in business.
New Century said it agreed to sell its loan servicing business to Carrington Capital Management LLC and its affiliate for about $139 million, subject to the approval of the bankruptcy court. New Century has also agreed to sell certain loans and residual interest in some trusts to Greenwich Capital for $50 million.
CIT Group and Greenwich Capital Financial Products Inc. have agreed to provide up to $150 million in working capital to facilitate the reorganization process, the company said.
Source: Associated Press, Gary Gentile (04/02/07)
Major Subprime Lender Files for Bankruptcy
Subprime lender New Century Financial Corp., once the nation’s second-largest provider of mortgages to high-risk borrowers and the target of consumer and government criticism, filed Monday for bankruptcy protection.
The company, which fired 3,200 workers, says it intends to sell off its major assets. CEO Brad A. Morrice said in a statement that the company had made the decision after exploring a variety of ways to stay in business.
New Century said it agreed to sell its loan servicing business to Carrington Capital Management LLC and its affiliate for about $139 million, subject to the approval of the bankruptcy court. New Century has also agreed to sell certain loans and residual interest in some trusts to Greenwich Capital for $50 million.
CIT Group and Greenwich Capital Financial Products Inc. have agreed to provide up to $150 million in working capital to facilitate the reorganization process, the company said.
Source: Associated Press, Gary Gentile (04/02/07)
Monday, April 2, 2007
Color-coded Personalities
Color-coded Personalities
By Barrie Dolnick
RISMEDIA, Feb. 28, 2007-(MSN.com)-Most of us have a favorite color. Maybe you're drawn to sky blue because it makes your eyes stand out or you find forest green particularly comforting. Whatever the case, your preferred hue can reveal a lot about what makes you tick. And the same holds true for the people you date-you'd probably have a different impression of a date if he or she said, "My favorite color is yellow," versus "My favorite color is black." That's because color speaks a powerful, silent language. And I can help you understand it. I'm a success coach and best-selling author of Simple Spells for Love and other books, and I've studied color theory. So, look up your favorite color below - and your date's best-loved shade - and get some colorful insights that will benefit your romantic life.
Red
What it represents: Ah, the color of passion, anger and high blood pressure. Red is a primal color. It represents primal urges, like lust ("I must have you now!") and fury (you know the phrase, "seeing red," right?). Yes, red is a commanding color: Think of how stop signs get you to halt in your tracks and how you stand back when a red fire engine goes whizzing by.
Understanding people who love it: They act - sometimes without thinking - on immediate desires. In fact, they're usually the poster child for immediate gratification. It's up to you if you go for it… or proceed with caution.
Orange
What it represents: OK, orange is not exactly the easiest color to wear and it's not the most common favorite color, but guess what? Orange is as sexy as it gets. Orange is a mellowed red-and it takes primal, lusty urges and mellows them with a softer vibe. Orange is the color of early attractions, emotional responses, and inner magnetism. Oh, and one other thing: Orange is also close to gold, the color of success and wealth.
Understanding people who love it: Someone who likes orange is alive with feelings, the ability to nurture, and can intuit a path to success. If your favorite color is orange, you don't have an "off" switch when it comes to passion. This is all good stuff, but there's nothing casual about the connections this kind of person usually forges.
Yellow
What it represents: Yellow is the color of the sun, vitality, power and ego… but it's not a great indicator of romance. Watch out for self-centered, me-first energy when someone prefers yellow to the rest of the rainbow.
Understanding people who love it: If yellow is your favorite color, temper your use of the word "I" when you're interested in someone else. You can come across as too ego-centric. Now, if you're dating someone whose favorite hue is yellow, make sure to jump in and share stories about yourself, since this person may not give you much room.
Green
What it represents: Here is the heart of the matter. Green is the color of love. (It's no coincidence that we make our money in the same color…) Green is the color of life and abundance - leaves, grass, plants - it's all about growing, expanding, and living. So why don't we give ferns instead of roses on Valentine's Day? Because green is about expansive, humanistic love and acceptance, not bodice-ripping romance. What's more, green is a nice person color, a do-gooder, be-gooder kind of color. This person has a warm heart. Hot passion is probably in there somewhere, buried under the integrity and honor.
Understanding people who love it: If you love green, you put the greater good before your own good-but try a little selfish behavior once in a while.
Blue
What it represents: Blue is a color of clarity, communications and charm. And regardless of the shade, this hue says: "I like to be understood." On the downside, under stress, a "blue" person can send mixed messages, have trouble making up their mind, or just space out.
Understanding people who love it: If blue is your favorite color, you never run out of anything to say-expression is your strong suit. And if you're dating someone "blue"? The same holds true; you should always know where you stand.
Purple
What it represents: Purple evokes the energy of illusion, imagination and fantasy. Or should we say purrrrple? Purple tends to inspire foreplay, romance, flirtation and teasing-it builds anticipation with playfulness. The downside of purple is unrealistic expectation. Is it easier to live in your fantasy world than the real world? Some purple-lovers prefer it.
Understanding people who love it: If you love purple you can be an imaginative romantic or prefer imaginary romance-depending on how you feel.
White
What it represents: White is light-the combination of all colors. White symbolizes purity (the virginal bridal dress, the christening gown) and spirituality. There's a simplicity to it, too.
Understanding people who love it: People who love white are probably clean and orderly. While white isn't the sexiest color, it is certainly healthy.
Black
What it represents: Like white, black is a combination of all colors, but instead of purity, it represents the unknown, the unseen-mystery. Black basically holds back information… but there's no denying that it has strong associations in our culture with "the dark side" and evil.
Understanding people who love it: If your favorite color is black, you are more hush-hush than ha-ha. The silence of this color lets others fill in the blanks. Black says "I'm not telling you anything." People who love black can be tough nuts to crack, but quite possibly worth the effort.
Astro-coach Barrie Dolnick helps people find love and happiness by understanding their stars and their karmic energy. She is the author of twelve books, including Enlighten Up! and KarmaBabe.
Her Web site is www.barriedolnick.com.
Source: MSN.com.
By Barrie Dolnick
RISMEDIA, Feb. 28, 2007-(MSN.com)-Most of us have a favorite color. Maybe you're drawn to sky blue because it makes your eyes stand out or you find forest green particularly comforting. Whatever the case, your preferred hue can reveal a lot about what makes you tick. And the same holds true for the people you date-you'd probably have a different impression of a date if he or she said, "My favorite color is yellow," versus "My favorite color is black." That's because color speaks a powerful, silent language. And I can help you understand it. I'm a success coach and best-selling author of Simple Spells for Love and other books, and I've studied color theory. So, look up your favorite color below - and your date's best-loved shade - and get some colorful insights that will benefit your romantic life.
Red
What it represents: Ah, the color of passion, anger and high blood pressure. Red is a primal color. It represents primal urges, like lust ("I must have you now!") and fury (you know the phrase, "seeing red," right?). Yes, red is a commanding color: Think of how stop signs get you to halt in your tracks and how you stand back when a red fire engine goes whizzing by.
Understanding people who love it: They act - sometimes without thinking - on immediate desires. In fact, they're usually the poster child for immediate gratification. It's up to you if you go for it… or proceed with caution.
Orange
What it represents: OK, orange is not exactly the easiest color to wear and it's not the most common favorite color, but guess what? Orange is as sexy as it gets. Orange is a mellowed red-and it takes primal, lusty urges and mellows them with a softer vibe. Orange is the color of early attractions, emotional responses, and inner magnetism. Oh, and one other thing: Orange is also close to gold, the color of success and wealth.
Understanding people who love it: Someone who likes orange is alive with feelings, the ability to nurture, and can intuit a path to success. If your favorite color is orange, you don't have an "off" switch when it comes to passion. This is all good stuff, but there's nothing casual about the connections this kind of person usually forges.
Yellow
What it represents: Yellow is the color of the sun, vitality, power and ego… but it's not a great indicator of romance. Watch out for self-centered, me-first energy when someone prefers yellow to the rest of the rainbow.
Understanding people who love it: If yellow is your favorite color, temper your use of the word "I" when you're interested in someone else. You can come across as too ego-centric. Now, if you're dating someone whose favorite hue is yellow, make sure to jump in and share stories about yourself, since this person may not give you much room.
Green
What it represents: Here is the heart of the matter. Green is the color of love. (It's no coincidence that we make our money in the same color…) Green is the color of life and abundance - leaves, grass, plants - it's all about growing, expanding, and living. So why don't we give ferns instead of roses on Valentine's Day? Because green is about expansive, humanistic love and acceptance, not bodice-ripping romance. What's more, green is a nice person color, a do-gooder, be-gooder kind of color. This person has a warm heart. Hot passion is probably in there somewhere, buried under the integrity and honor.
Understanding people who love it: If you love green, you put the greater good before your own good-but try a little selfish behavior once in a while.
Blue
What it represents: Blue is a color of clarity, communications and charm. And regardless of the shade, this hue says: "I like to be understood." On the downside, under stress, a "blue" person can send mixed messages, have trouble making up their mind, or just space out.
Understanding people who love it: If blue is your favorite color, you never run out of anything to say-expression is your strong suit. And if you're dating someone "blue"? The same holds true; you should always know where you stand.
Purple
What it represents: Purple evokes the energy of illusion, imagination and fantasy. Or should we say purrrrple? Purple tends to inspire foreplay, romance, flirtation and teasing-it builds anticipation with playfulness. The downside of purple is unrealistic expectation. Is it easier to live in your fantasy world than the real world? Some purple-lovers prefer it.
Understanding people who love it: If you love purple you can be an imaginative romantic or prefer imaginary romance-depending on how you feel.
White
What it represents: White is light-the combination of all colors. White symbolizes purity (the virginal bridal dress, the christening gown) and spirituality. There's a simplicity to it, too.
Understanding people who love it: People who love white are probably clean and orderly. While white isn't the sexiest color, it is certainly healthy.
Black
What it represents: Like white, black is a combination of all colors, but instead of purity, it represents the unknown, the unseen-mystery. Black basically holds back information… but there's no denying that it has strong associations in our culture with "the dark side" and evil.
Understanding people who love it: If your favorite color is black, you are more hush-hush than ha-ha. The silence of this color lets others fill in the blanks. Black says "I'm not telling you anything." People who love black can be tough nuts to crack, but quite possibly worth the effort.
Astro-coach Barrie Dolnick helps people find love and happiness by understanding their stars and their karmic energy. She is the author of twelve books, including Enlighten Up! and KarmaBabe.
Her Web site is www.barriedolnick.com.
Source: MSN.com.
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