INFO THAT HITS US WHERE WE LIVE…Patience has certainly been needed to weather the ups and downs of the current U.S. housing market. But as we await strong recovery, we can take heart in positive signs when they show up. Last week we had the report that Pending Home Sales were up 2.1% in February. This measure of contracts on existing homes indicates sales should rebound in March following February’s drop.

Other tidbits of goodness included the news that the share of homebuyers for second homes held steady in 2010 versus the year before. But this report from the National Association of Realtors (NAR) did show overall sales volume somewhat declining. Meanwhile, the reverse of that is occurring on the luxury end of the market, where sales of homes priced at $1 million and above were up 3.9% in February versus a year ago.

Those market observers who seem dying to report a double dip in housing prices loved last week’s S&P/Case-Shiller Home Price Indices, which were down for January. But the 10-city composite Case-Shiller home price index is still 2.8% above and the 20-city is still 1.1% above their April 2009 lows. Seems the critics could do with a little patience too.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

20130 Lakeview Center Plaza
Ashburn, VA 20147
703-957-0197
Licensed in VA. Each office is independently owned and operated
 

Inman Newsâ„¢
By JACK GUTTENTAGA mortgage recast is an adjustment in the monthly payment that makes the payment fully amortizing. The recast will be a payment increase when the existing payment is less than fully amortizing, and a payment decrease when the existing payment is more than fully amortizing.

For example, let’s say your home loan has a balance of $100,000 at 5 percent with 300 months to go and a payment of $450 that, if continued, will not pay off the balance. The payment recast is an increase to $584.60, which will fully amortize the balance over 300 months. However, if the current payment was $650, the recast would be a payment decrease to $584.60.

Payment-increase recasts occur on two kinds of mortgages. One carries an interest-only option, where the required payment for some initial period, often 10 years, covers only the interest. The payment-increase recast occurs at the end of the interest-only period.

The second type of mortgage open to a payment-increase recast is the adjustable-rate mortgage (ARM) that allows payments that are less than fully amortizing. These ARMs sometimes have recasts at specified intervals, often every five years, or the recast may be triggered by the loan balance reaching some limiting value, such as 110 percent of the original loan amount. This can happen at any time, or it may not happen at all.

Payment-increase recasts are designed to protect the interest of the lender by making sure that the loan will pay off as scheduled. All interest-only loans and all ARMs that allow payments that are less than fully amortizing have explicit provisions for recasts in the loan contract.

Provisions for payment-decrease recasts, in contrast, which are designed to meet the needs of borrowers, are not included in loan contracts. The lender can agree to a recast; can agree subject to a charge, which can range from nominal to extortionate; or can refuse it. I have encountered all three such responses.

The borrowers who request recasts usually have fixed-rate mortgages (FRMs) on which they have been making extra payments in order to pay off before term, and then unexpectedly encounter a financial reversal. With their income reduced, their objective shifts from paying off early to reducing the payment, for which purpose they need a recast. They deserve it, and the cost to the lender is nominal, but some lenders will take advantage of them just because they can.

The borrower’s right to a payment-reducing recast ought to be mandatory for all home mortgage contracts. Borrowers should not have to grovel for what can be critically important to them and of little consequence to lenders. Making recasts into a right would have the side benefit of encouraging borrowers to make extra payments as a form of contingency insurance.

Note that payment-reducing recasts are needed for fixed-rate mortgages much more than for ARMs. The reason is that when the interest rate is adjusted on an ARM, the payment is automatically recast. On ARMs that reset the rate every year, no additional recasts are needed. On ARMs with initial rate periods of 5-10 years, however, the need for a recast can arise in the early years just as it does on FRMs.

Today, borrowers are motivated to make extra payments primarily by the hope of getting out of debt sooner. With a right of recast made explicit, they will also view extra payments as a worst-case backstop. The more you pay when you have the means, the larger the payment reduction you can command in an emergency. I can’t think of an easier way to motivate consumers to save more.

The writer is Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania.   Comments and questions can be left at http://www.mtgprofessor.com

 Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

20130 Lakeview Center Plaza
Ashburn, VA 20147
703-957-0197
Licensed in VA. Each office is independently owned and operated

Agency Relationships

by Carla Hill

www.MyNvaHomes.com

Understanding agency relationships can be difficult for those new to the real estate process. What does dual agency mean? Who is your agent representing? Who is responsible for what?

These details are crucial in helping you understand what your agent is responsible for and what they must disclose. Let’s look over some of the terminology.

First up is Dual Agency. This means that your brokerage firm or agency is representing both the buyer and the seller. And while there shouldn’t be a conflict of interest, dual agency must be disclosed and you must agree to work within the situation for it to be legal. In fact, written consent is required in many states.

One solution to this potential conflict of interest is a Designated Agent. This arrangement helps clear up an trickiness that might arise from dual agency. A brokerage will designate one agent as the seller’s agent and then another as the buyer’s agent.

A Buyer’s Representative, on the other had, works soley with the buyer. This means they have your best interest at heart during the entire process. They help you find a house, put in the offer, and close the deal.

A Seller’s Representative, sometimes known as the listing agent, is hired by the seller. The seller generally enters into a contract with the agent, agreeing to allow only that agent to sell the home. A seller is responsible for paying a commission to their agent upon sale, and sometimes negotiations with buyers mean the seller pays the buyer’s agent as well.

Finally, let’s look at Subagents. This can be a little complicated to understand, but the basic sentiment is this: A subagent is an agent from another brokerage that is supplying you with a service, such as showing you a house. The subagent is obligated to give you honest service the same as your regular agent. But on the flip side of the coin, they are not allowed to assist you in any way that would negatively impact the seller.

The key to understanding your particular situation is to ask questions. Be sure to ask your agent what sort of agency relationship they have with you.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

20130 Lakeview Center Plaza
Ashburn, VA 20147
703-957-0197
Licensed in VA. Each office is independently owned and operated

Agency Relationships

by Carla Hill

www.MyNvaHomes.com

Understanding agency relationships can be difficult for those new to the real estate process. What does dual agency mean? Who is your agent representing? Who is responsible for what?

These details are crucial in helping you understand what your agent is responsible for and what they must disclose. Let’s look over some of the terminology.

First up is Dual Agency. This means that your brokerage firm or agency is representing both the buyer and the seller. And while there shouldn’t be a conflict of interest, dual agency must be disclosed and you must agree to work within the situation for it to be legal. In fact, written consent is required in many states.

One solution to this potential conflict of interest is a Designated Agent. This arrangement helps clear up an trickiness that might arise from dual agency. A brokerage will designate one agent as the seller’s agent and then another as the buyer’s agent.

A Buyer’s Representative, on the other had, works soley with the buyer. This means they have your best interest at heart during the entire process. They help you find a house, put in the offer, and close the deal.

A Seller’s Representative, sometimes known as the listing agent, is hired by the seller. The seller generally enters into a contract with the agent, agreeing to allow only that agent to sell the home. A seller is responsible for paying a commission to their agent upon sale, and sometimes negotiations with buyers mean the seller pays the buyer’s agent as well.

Finally, let’s look at Subagents. This can be a little complicated to understand, but the basic sentiment is this: A subagent is an agent from another brokerage that is supplying you with a service, such as showing you a house. The subagent is obligated to give you honest service the same as your regular agent. But on the flip side of the coin, they are not allowed to assist you in any way that would negatively impact the seller.

The key to understanding your particular situation is to ask questions. Be sure to ask your agent what sort of agency relationship they have with you.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

20130 Lakeview Center Plaza
Ashburn, VA 20147
703-957-0197
Licensed in VA. Each office is independently owned and operated

 

What’s In, Out of Smaller Homes?

by Broderick Perkins

www.MyNvaHomes.com

www.RealtyTimes.com

Buy a super-sized, outdated home today and you could have a tough time selling it when it’s time to move on.

By 2015, new homes will be 10 percent smaller, greener and packed with more technology and “universal” features than today’s homes, according to a new study by the National Association of Home Builders.

The NAHB’s“The New Home in 2015″ alludes to the economic downturn for ratcheting up a “less is more” movement that includes everything from homes designed with fewer frivolities to small “pocket neighborhoods” with small homes.

The study says the lousy economy is the force behind the changing characteristics, features and sizes of homes to come, as well as the reason for the record low numbers of homes being built today.

The findings are answers from 238 home building professionals, among them home builders, architects, designers, manufacturers and others who say the average, new single-family detached home in 2015 will be about 2,152 square feet, 10 percent smaller than the average size of single-family homes started in the first three quarters of 2010.

That may yet be too large, given more than 60 percent of all U.S. households today are comprised of only one or two people, according to the U.S. Census Bureau.

Smaller homes cost less to build and maintain and today’s consumers are focused on reducing heating and cooling costs, they’ve don’t have the equity to buy up, and appreciation probably won’t come to their rescue for years. The aging population and tight mortgage money are also prompting consumers to buy smaller.

The Census Bureau also says the average size of single-family homes peaked in 2007, at 2,521 square feet, was virtually unchanged in 2008, and declined in 2009 to 2,438 square feet. Early data for 2010 shows a further decline, down to 2,377 square feet.

The report also says:

¢ The living room is dead. The living room will either vanish, merge with a “great room” or the kitchen, or become a smaller parlor, retreat, library or music room. Only 5 percent of those polled said the living room would remain as it is.

¢ Room for less. Other rooms to get the boot will include a third bathroom, fourth bedroom, unheated porch, dining room, three-car garage, media room and a second master bedroom suite.

¢ Greener living. Expect “low-e” windows, engineered wood beams, joists, and trusses, water efficient features and whole-home Energy Star ratings.

¢ Design for all. More technological and “universal” features will help better adapt the home for more people from kids to older people and people with disabilities.

Published: March 24, 2011

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

20130 Lakeview Center Plaza
Ashburn, VA 20147
703-957-0197
Licensed in VA. Each office is independently owned and operated

 

What’s In, Out of Smaller Homes?

by Broderick Perkins

www.MyNvaHomes.com

www.RealtyTimes.com

Buy a super-sized, outdated home today and you could have a tough time selling it when it’s time to move on.

By 2015, new homes will be 10 percent smaller, greener and packed with more technology and “universal” features than today’s homes, according to a new study by the National Association of Home Builders.

The NAHB’s“The New Home in 2015″ alludes to the economic downturn for ratcheting up a “less is more” movement that includes everything from homes designed with fewer frivolities to small “pocket neighborhoods” with small homes.

The study says the lousy economy is the force behind the changing characteristics, features and sizes of homes to come, as well as the reason for the record low numbers of homes being built today.

The findings are answers from 238 home building professionals, among them home builders, architects, designers, manufacturers and others who say the average, new single-family detached home in 2015 will be about 2,152 square feet, 10 percent smaller than the average size of single-family homes started in the first three quarters of 2010.

That may yet be too large, given more than 60 percent of all U.S. households today are comprised of only one or two people, according to the U.S. Census Bureau.

Smaller homes cost less to build and maintain and today’s consumers are focused on reducing heating and cooling costs, they’ve don’t have the equity to buy up, and appreciation probably won’t come to their rescue for years. The aging population and tight mortgage money are also prompting consumers to buy smaller.

The Census Bureau also says the average size of single-family homes peaked in 2007, at 2,521 square feet, was virtually unchanged in 2008, and declined in 2009 to 2,438 square feet. Early data for 2010 shows a further decline, down to 2,377 square feet.

The report also says:

¢ The living room is dead. The living room will either vanish, merge with a “great room” or the kitchen, or become a smaller parlor, retreat, library or music room. Only 5 percent of those polled said the living room would remain as it is.

¢ Room for less. Other rooms to get the boot will include a third bathroom, fourth bedroom, unheated porch, dining room, three-car garage, media room and a second master bedroom suite.

¢ Greener living. Expect “low-e” windows, engineered wood beams, joists, and trusses, water efficient features and whole-home Energy Star ratings.

¢ Design for all. More technological and “universal” features will help better adapt the home for more people from kids to older people and people with disabilities.

Published: March 24, 2011

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

20130 Lakeview Center Plaza
Ashburn, VA 20147
703-957-0197
Licensed in VA. Each office is independently owned and operated

I wanted to update you on the information for FHA mortgages coming to pass on APRIL 18th.Basically the monthly mortgage insurance is going up 25 basis points¦so on a 250k loan where it would have been $187.50 a month it will be $239.58.   Your client will have had to locate a property by April 18^th  in order for us to register it with FHA and get the lesser mortgage insurance.  If you have a buyer it is best to get the FHA case number before then and may help incent folks to find a home faster.   Please let me know if you have any questions on the information.  

Click Here for more specific information directly

 from FHA.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

20130 Lakeview Center Plaza
Ashburn, VA 20147
703-957-0197
Licensed in VA. Each office is independently owned and operated

Inman News examined housing, economic and demographic data for metropolitan areas nationwide in compiling a list of 10 housing markets that are showing signs of strength and may outperform other housing markets in 2011 in several key metrics. Inman News also asked a host of real estate search and data companies to share research and methodology to identify high-performing real estate markets across the U.S.

Real estate markets in the Midwest and Northeast dominated a list of 10 fast-rising real estate markets nationwide identified in the Inman News analysis, as many markets in the Sun Belt states are still struggling through the housing downturn.

The Midwest and Northeast U.S. accounted for eight of 10 markets on the list: Bismarck and Fargo, N.D.; Des Moines, Iowa; Bloomington-Normal, Ill.; Elmira and Buffalo-Niagara Falls, N.Y.; Portland-South Portland-Biddeford, Maine; and Burlington-South Burlington, Vt.

The other two markets on the list: Kennewick-Richland-Pasco, Wash.; and the Washington, D.C., metro area.

See the 10 markets

Nationwide, unemployment is high, home prices are flat and trending lower since the expiration of the federal homebuyer tax credits, and overall sales fell last year compared to the prior year.

Stan Humphries, chief economist for Zillow, said it’s unlikely that “substantial price appreciation” will occur “in any market nationwide in the near term.” Rather, the company identified some “stabilizing” markets in a chart provided for this report.

Article continues below

“Nationally, I don’t think we’ll see a bottom in home prices until later this year and once they hit bottom we’re looking at a prolonged period of time where housing appreciation is below historical norms,” Humphries said.

Nevertheless, Inman News identified some markets with significant price appreciation as well as a vibrant job market, a high level of home affordability, low foreclosure activity, and other indicators for a healthy housing market. Most have populations below 250,000. In addition, jobs in the health care industry and public sector, especially, buoyed employment in these areas.

To compile the list, Inman News considered markets with low unemployment rates, high median sales price growth, growth in the number of building permits issued, a rise in in-migration from other states, population growth, projected job growth, affordability, low foreclosure activity, median household income growth, fewer average days on market for for-sale properties, and growth in occupied housing units.

Among the findings in this report:

• Of the states represented in this list of market areas, North Dakota, Vermont, Iowa and, to a certain extent, New York, also shed fewer Realtors during the housing bust compared to other states.
• Two of the 10 markets on this list are state capitals and one is the nation’s capital — agents say government centers can lend job stability.
• Six of 10 markets had median sales prices below the national median in the fourth quarter of 2010, and seven out of 10 had median prices lower than the national median price for the full year in 2010.
• Where affordability rankings were available, the markets on the list had no less than 75 percent of homes affordable to those households earning the area’s median income.
• All had unemployment and foreclosure rates lower than the national average. None of the markets had unemployment rates higher than 8.2 percent.
• Only two of the markets had populations above 1 million. Six of 10 had populations below 250,000.
• Companies in the health care and medical industries were major employers in at least seven of the 10 markets.
• Seven out of 10 markets had some military presence. The Fargo, Burlington, Portland and Des Moines metro areas are each home to an Air National Guard base. The North Dakota National Guard Headquarters are in Bismarck. There’s an Air Reserve Station in the Buffalo market.
• Not surprisingly, the Washington, D.C., metro area had the largest military footprint of the 10 markets: the Pentagon, Bolling Air Force Base, Fort McNair, Walter Reed Medical Center, Marine Barracks and Washington Navy Yard are within its limits.

The 10 markets are ranked according to population, sales volume, and median sales price appreciation. Population was weighted most heavily in the rankings, followed by sales volume in proportion to population and rate of price appreciation.

THE 10 MARKETS

1. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.
2. Buffalo-Niagara Falls, N.Y.
3. Des Moines, Iowa
4. Portland-South Portland-Biddeford, Maine
5. Kennewick-Richland-Pasco, Wash.
6. Fargo, N.D.-Minn.
7. Burlington-South Burlington, Vt.
8. Bloomington-Normal, Ill.
9. Bismarck, N.D.
10. Elmira, N.Y.

ADDITIONAL DATA and CHARTS

• 2010 top 10 most searched real estate markets (Realtor.com)
• Top 10 states with shortest days on site: for-sale properties (Realtor.com)
• Top 10 fastest-moving markets on site in 2010 (Realtor.com)
• Top 10 MSAs: Fastest-rising median list prices in 2010 (Realtor.com)
• Inventory counts: MSAs with the fastest falling inventory counts in 2010 (Realtor.com)
• 2010 fastest-rising median list prices (Realtor.com)
• Markets with low price-to-income ratios (Zillow.com)
• Markets with low delinquency rates: November 2010 (CoreLogic)
• Markets poised to outperform in 2011 (Altos Research)
• Sales volume per population, Q4 2010 (Onboard Informatics)
• Percent change in sales, Q3 2010-Q4 2010 (Onboard Informatics)
• Percent change in median price, Q3 2010-Q4 2010 (Onboard Informatics)
• Top 10 U.S. markets for buying and investing in 2011 (RealtyTrac)
• Top 10 cities to buy vs. rent (Trulia)
• Top 10 cities to rent vs. buy (Trulia)
• Fastest-moving for-sale markets, January 2011 (HotPads)

REPORT METHODOLOGY

• Altos Research
• CoreLogic
• HotPads
• Onboard Informatics
• Realtor.com
• RealtyTrac
• Trulia
• Zillow

Inman News examined housing, economic and demographic data for metropolitan areas nationwide in compiling a list of 10 housing markets that are showing signs of strength and may outperform other housing markets in 2011 in several key metrics. Inman News also asked a host of real estate search and data companies to share research and methodology to identify high-performing real estate markets across the U.S.

Real estate markets in the Midwest and Northeast dominated a list of 10 fast-rising real estate markets nationwide identified in the Inman News analysis, as many markets in the Sun Belt states are still struggling through the housing downturn.

The Midwest and Northeast U.S. accounted for eight of 10 markets on the list: Bismarck and Fargo, N.D.; Des Moines, Iowa; Bloomington-Normal, Ill.; Elmira and Buffalo-Niagara Falls, N.Y.; Portland-South Portland-Biddeford, Maine; and Burlington-South Burlington, Vt.

The other two markets on the list: Kennewick-Richland-Pasco, Wash.; and the Washington, D.C., metro area.

See the 10 markets

Nationwide, unemployment is high, home prices are flat and trending lower since the expiration of the federal homebuyer tax credits, and overall sales fell last year compared to the prior year.

Stan Humphries, chief economist for Zillow, said it’s unlikely that “substantial price appreciation” will occur “in any market nationwide in the near term.” Rather, the company identified some “stabilizing” markets in a chart provided for this report.

Article continues below

“Nationally, I don’t think we’ll see a bottom in home prices until later this year and once they hit bottom we’re looking at a prolonged period of time where housing appreciation is below historical norms,” Humphries said.

Nevertheless, Inman News identified some markets with significant price appreciation as well as a vibrant job market, a high level of home affordability, low foreclosure activity, and other indicators for a healthy housing market. Most have populations below 250,000. In addition, jobs in the health care industry and public sector, especially, buoyed employment in these areas.

To compile the list, Inman News considered markets with low unemployment rates, high median sales price growth, growth in the number of building permits issued, a rise in in-migration from other states, population growth, projected job growth, affordability, low foreclosure activity, median household income growth, fewer average days on market for for-sale properties, and growth in occupied housing units.

Among the findings in this report:

• Of the states represented in this list of market areas, North Dakota, Vermont, Iowa and, to a certain extent, New York, also shed fewer Realtors during the housing bust compared to other states.
• Two of the 10 markets on this list are state capitals and one is the nation’s capital — agents say government centers can lend job stability.
• Six of 10 markets had median sales prices below the national median in the fourth quarter of 2010, and seven out of 10 had median prices lower than the national median price for the full year in 2010.
• Where affordability rankings were available, the markets on the list had no less than 75 percent of homes affordable to those households earning the area’s median income.
• All had unemployment and foreclosure rates lower than the national average. None of the markets had unemployment rates higher than 8.2 percent.
• Only two of the markets had populations above 1 million. Six of 10 had populations below 250,000.
• Companies in the health care and medical industries were major employers in at least seven of the 10 markets.
• Seven out of 10 markets had some military presence. The Fargo, Burlington, Portland and Des Moines metro areas are each home to an Air National Guard base. The North Dakota National Guard Headquarters are in Bismarck. There’s an Air Reserve Station in the Buffalo market.
• Not surprisingly, the Washington, D.C., metro area had the largest military footprint of the 10 markets: the Pentagon, Bolling Air Force Base, Fort McNair, Walter Reed Medical Center, Marine Barracks and Washington Navy Yard are within its limits.

The 10 markets are ranked according to population, sales volume, and median sales price appreciation. Population was weighted most heavily in the rankings, followed by sales volume in proportion to population and rate of price appreciation.

THE 10 MARKETS

1. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.
2. Buffalo-Niagara Falls, N.Y.
3. Des Moines, Iowa
4. Portland-South Portland-Biddeford, Maine
5. Kennewick-Richland-Pasco, Wash.
6. Fargo, N.D.-Minn.
7. Burlington-South Burlington, Vt.
8. Bloomington-Normal, Ill.
9. Bismarck, N.D.
10. Elmira, N.Y.

ADDITIONAL DATA and CHARTS

• 2010 top 10 most searched real estate markets (Realtor.com)
• Top 10 states with shortest days on site: for-sale properties (Realtor.com)
• Top 10 fastest-moving markets on site in 2010 (Realtor.com)
• Top 10 MSAs: Fastest-rising median list prices in 2010 (Realtor.com)
• Inventory counts: MSAs with the fastest falling inventory counts in 2010 (Realtor.com)
• 2010 fastest-rising median list prices (Realtor.com)
• Markets with low price-to-income ratios (Zillow.com)
• Markets with low delinquency rates: November 2010 (CoreLogic)
• Markets poised to outperform in 2011 (Altos Research)
• Sales volume per population, Q4 2010 (Onboard Informatics)
• Percent change in sales, Q3 2010-Q4 2010 (Onboard Informatics)
• Percent change in median price, Q3 2010-Q4 2010 (Onboard Informatics)
• Top 10 U.S. markets for buying and investing in 2011 (RealtyTrac)
• Top 10 cities to buy vs. rent (Trulia)
• Top 10 cities to rent vs. buy (Trulia)
• Fastest-moving for-sale markets, January 2011 (HotPads)

REPORT METHODOLOGY

• Altos Research
• CoreLogic
• HotPads
• Onboard Informatics
• Realtor.com
• RealtyTrac
• Trulia
• Zillow

Before You List Your Home For Sale

by Carla Hill

www.RealtyTimes.com

www.MyNvaHomes.com

Today’s market presents some very unique opportunities for buyers. With affordability near record highs and interest rates near record lows, many homeowners are making the decision to move up or on. Here a few simple tips to take into consideration when listing your home for sale.

1. Curb Appeal: Buyers make snap judgments about each home they view. These judgments are drawn largely from first impressions. Be sure your home has impressive curb appeal. Fresh flowers and mulched beds, along with trimmed hedges and grass are a must. If your home needs a fresh coat of paint, now is the time. And even if your paint or siding is in good repair, consider painting your front door an eye-catching color, such as red or blue.

2. Inspection: An inspection can make or break a deal. Even after they’ve fallen in love with your house, a buyer may decide foundation issues or faulty electrical are too much of a headache. The benefits of having an inspection done prior to listing can be two-fold. First, your buyers will be aware of what repairs are needed before they make an offer. Second, you can choose to address these repairs and therefore have them removed from the scenario altogether.

3. Repairs: Buyers are turned off by long lists of needed repairs. This goes double for time-consuming and costly repairs, such as roof work or foundation issues. By identifying and addressing the issues, you may be able to yourself save time and money in the long run.

4. Organize Paperwork: There may be contracts or warranties you have on your home that will transfer to a new buyer. These can include appliances, builder warranties, and even contracts with lawn and pool companies there were paid up-front.

5. Talk to your lender: How much new home can you afford? Are you able to sell your home for enough to cover the remaining balance of the loan? These are important questions to get answered prior to listing!

6. Prepare for showings: Staging a home for sale has multiple different layers. First, you should clean and organize. Have carpets cleaned and repaint dirty or loudly colored walls. Next, remove large and bulky furniture, as these make rooms appear smaller. And finally, take down personal pictures, trophies, and memorabilia that could distract the buyer from what they are actually interested in … your house!

Every seller needs a competitive edge in today’s market. By being prepared for selling prior to listing, you can gain an advantage. Talk to your real estate agent for more tips!

Published: March 10, 2011

30-Year Fixed-Rate Mortgage Holds Steady at 4.88 Percent

McLean, VA “ Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey ® (PMMS), which shows mortgage rates holding steady and below 5.0 percent.

30-year fixed-rate mortgage (FRM) averaged 4.88 percent with an average 0.7 point for the week ending March 10, 2011, up from last week when it averaged 4.87 percent. Last year at this time, the 30-year FRM averaged 4.95 percent.

15-year FRM this week averaged 4.15 percent with an average 0.7 point, the same from last week when it averaged 4.15 percent. A year ago at this time, the 15-year FRM averaged 4.32 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.73 percent this week, with an average 0.6 point, up from last week when it averaged 3.72 percent. A year ago, the 5-year ARM averaged 4.05 percent.

1-year Treasury-indexed ARM averaged 3.21 percent this week with an average 0.5 point, down from last week when it averaged 3.23 percent. At this time last year, the 1-year ARM averaged 4.22 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, reports, “Mortgage rates held steady amid a strong employment report . The private sector added 222,000 jobs in February, the most since March 2006 while the unemployment rate fell to 8.9 percent, the lowest share since April 2009.”

“Interest rates for 30-year fixed-rate mortgages have averaged at or below 5 percent in every week but one this year, contributing to record home affordability. The National Association of Realtors ®Housing Affordability Index rose to an all-time record high in January, based on figures dating back to 1971. More recently, mortgage applications jumped almost 16 percent over the week ended March 4, 2011 representing the largest percent increase since the week of June 11, 2009.”

Published: March 11, 2011

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

30-Year Fixed-Rate Mortgage Holds Steady at 4.88 Percent

McLean, VA “ Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey ® (PMMS), which shows mortgage rates holding steady and below 5.0 percent.

30-year fixed-rate mortgage (FRM) averaged 4.88 percent with an average 0.7 point for the week ending March 10, 2011, up from last week when it averaged 4.87 percent. Last year at this time, the 30-year FRM averaged 4.95 percent.

15-year FRM this week averaged 4.15 percent with an average 0.7 point, the same from last week when it averaged 4.15 percent. A year ago at this time, the 15-year FRM averaged 4.32 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.73 percent this week, with an average 0.6 point, up from last week when it averaged 3.72 percent. A year ago, the 5-year ARM averaged 4.05 percent.

1-year Treasury-indexed ARM averaged 3.21 percent this week with an average 0.5 point, down from last week when it averaged 3.23 percent. At this time last year, the 1-year ARM averaged 4.22 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, reports, “Mortgage rates held steady amid a strong employment report . The private sector added 222,000 jobs in February, the most since March 2006 while the unemployment rate fell to 8.9 percent, the lowest share since April 2009.”

“Interest rates for 30-year fixed-rate mortgages have averaged at or below 5 percent in every week but one this year, contributing to record home affordability. The National Association of Realtors ®Housing Affordability Index rose to an all-time record high in January, based on figures dating back to 1971. More recently, mortgage applications jumped almost 16 percent over the week ended March 4, 2011 representing the largest percent increase since the week of June 11, 2009.”

Published: March 11, 2011

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

30-Year Fixed-Rate Mortgage Holds Steady at 4.88 Percent

McLean, VA “ Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey ® (PMMS), which shows mortgage rates holding steady and below 5.0 percent.

30-year fixed-rate mortgage (FRM) averaged 4.88 percent with an average 0.7 point for the week ending March 10, 2011, up from last week when it averaged 4.87 percent. Last year at this time, the 30-year FRM averaged 4.95 percent.

15-year FRM this week averaged 4.15 percent with an average 0.7 point, the same from last week when it averaged 4.15 percent. A year ago at this time, the 15-year FRM averaged 4.32 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.73 percent this week, with an average 0.6 point, up from last week when it averaged 3.72 percent. A year ago, the 5-year ARM averaged 4.05 percent.

1-year Treasury-indexed ARM averaged 3.21 percent this week with an average 0.5 point, down from last week when it averaged 3.23 percent. At this time last year, the 1-year ARM averaged 4.22 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, reports, “Mortgage rates held steady amid a strong employment report . The private sector added 222,000 jobs in February, the most since March 2006 while the unemployment rate fell to 8.9 percent, the lowest share since April 2009.”

“Interest rates for 30-year fixed-rate mortgages have averaged at or below 5 percent in every week but one this year, contributing to record home affordability. The National Association of Realtors ®Housing Affordability Index rose to an all-time record high in January, based on figures dating back to 1971. More recently, mortgage applications jumped almost 16 percent over the week ended March 4, 2011 representing the largest percent increase since the week of June 11, 2009.”

Published: March 11, 2011

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Real Estate Outlook: Good News Across the Nation

by Carla Hill

www.RealtyTimes.com

www.MyNvaHomes.com

The market is changing out there, and the latest reports are showing that when it comes to buyers, less is more in some cases.

A recent study from the National Association of Home Builders (NAHB) indicates that the recent housing slump has meant buyers are looking for smaller houses. The McMansions of the boom era are quickly losing their style.

The NAHB reports that the builders they “surveyed expect homes to average 2,152 square feet in 2015, 10 percent smaller than the average size of single-family homes started in the first three quarters of 2010. To save on square footage, the living room is high on the endangered list “ 52 percent of builders expect it to be merged with other spaces in the home by 2015 and 30 percent said it will vanish entirely.”

Also a heavy influence on the housing front are green and eco-friendly features. The NAHB reports that “in addition to floor plan changes, 68 percent of builders surveyed say that homes in 2015 will also include more green features and technology, including low-E windows; engineered wood beams, joists or tresses; water-efficient features such as dual-flush toilets or low-flow faucets; and an Energy Star rating for the whole house.”

This is great news for eco-activists across the nation. The other great news this week? The Mortgage Bankers Association (MBA) reports that mortgage applications are at the highest level in months. They rose by 17.2 percent, that being the biggest increase since June 11th.

Michael Fratantoni, MBA’s vice president of research and economics, reports, “An improving job market is beginning to pave the way for an improving housing market. Additionally, mortgage interest rates remained below 5 percent for a second week, maintaining affordability for buyers and leading to an increase in refinance applications.”

The U.S. Department of Housing and Urban Development (HUD) had their own good news. Their latest February edition of the Obama Administration’s Housing Scorecard revealed that existing home sales are on the rise thanks in part to high home affordability levels.

And since April of 2009, record low mortgage rates have helped more than 9.5 million homeowners to refinance, resulting in $18.1 billion in total borrower savings.

They did report, however, that the “housing market remains fragile as data through January paint a mixed picture of recovery. Existing home sales ticked upward in January, but remained below levels seen in the first half of 2010. Mortgage delinquencies continued a downward trend compared to early 2010 and foreclosure starts and completions remain below peak.”

But not everyone is in agreement about what foreclosures mean for today’s homeowner. According to the New York Times, “All 50 state attorneys general, as well as a host of federal agencies, are pushing for a settlement over investigations into foreclosure abuses by major mortgage servicers that could cost the industry $20 billion or more. Much of that money would be earmarked to reduce principal owed by homeowners facing foreclosure.”

Many homeowners have weathered the storm, however, taking on heavy burdens in order to avoid foreclosure. Bank of America argues that by helping some and not helping others, we create an unfair system.

“There’s a core problem that if you start to help certain people and don’t help other people, it’s going to be very hard to explain the difference, said Brian T. Moynihan, the chief executive of Bank of America. “Our duty is to have a fair modification process.

Published: March 14, 2011

SEPTEMBER – 2010 Newsletter Housing Trends eNewsletter

Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you™re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS ®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more. Please click here to view the SEPTEMBER – 2010 Newsletter Housing Trends eNewsletter.

If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report.Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Fixed-Rate Mortgages Unchanged While ARMs Are Mixed

www.MyNvaHomes.com

McLean, VA “ Freddie Mac today released the results of its Primary Mortgage Market Survey ® (PMMS ®). The 30-year fixed-rate mortgage rate and the 15-year fixed-rate were unchanged; shorter-term rates were mixed.

30-year fixed-rate mortgage (FRM) averaged 4.37 percent with an average 0.7 point for the week ending September 23, 2010, unchanged from last week when it averaged 4.37 percent. Last year at this time, the 30-year FRM averaged 5.04 percent.

15-year FRM this week averaged a record low of 3.82 percent with an average 0.7 point, unchanged from last week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.46 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.54 percent this week, with an average 0.6 point, down slightly from last week when it averaged 3.55 percent. A year ago, the 5-year ARM averaged 4.51 percent.

1-year Treasury-indexed ARM averaged 3.46 percent this week with an average 0.7 point, up from last week when it averaged 3.40 percent. At this time last year, the 1-year ARM averaged 4.52 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, said, “In its September 21st policy committee statement, the Federal Reserve indicated that the pace of recovery in output and employment has slowed in recent months. In addition, inflation was at levels somewhat below its comfort zone. The perception of slow growth and low inflation removed any upward pressure on fixed mortgage rates this week.”

“Since 1975, fixed mortgage rates typically fall over the 12 months following the end of a recession; the one exception was the 1980 downturn. The National Bureau of Economic Research recently announced that the current recession ended in June 2009. Rates for 30-year fixed mortgages were 0.7 percentage points lower in June 2010, representing the largest decline during the first year of recovery over the last six recessions. With a weaker recovery, these rates fell by another 0.4 percentage points by September.”

Published: September 24, 2010

Use of this article without permission is a violation of federal copyright laws.

McLean, VA “ Freddie Mac today released the results of its Primary Mortgage Market Survey ® (PMMS ®). The 30-year fixed-rate mortgage rate and the 15-year fixed-rate were unchanged; shorter-term rates were mixed.

30-year fixed-rate mortgage (FRM) averaged 4.37 percent with an average 0.7 point for the week ending September 23, 2010, unchanged from last week when it averaged 4.37 percent. Last year at this time, the 30-year FRM averaged 5.04 percent.

15-year FRM this week averaged a record low of 3.82 percent with an average 0.7 point, unchanged from last week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.46 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.54 percent this week, with an average 0.6 point, down slightly from last week when it averaged 3.55 percent. A year ago, the 5-year ARM averaged 4.51 percent.

1-year Treasury-indexed ARM averaged 3.46 percent this week with an average 0.7 point, up from last week when it averaged 3.40 percent. At this time last year, the 1-year ARM averaged 4.52 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, said, “In its September 21st policy committee statement, the Federal Reserve indicated that the pace of recovery in output and employment has slowed in recent months. In addition, inflation was at levels somewhat below its comfort zone. The perception of slow growth and low inflation removed any upward pressure on fixed mortgage rates this week.”

“Since 1975, fixed mortgage rates typically fall over the 12 months following the end of a recession; the one exception was the 1980 downturn. The National Bureau of Economic Research recently announced that the current recession ended in June 2009. Rates for 30-year fixed mortgages were 0.7 percentage points lower in June 2010, representing the largest decline during the first year of recovery over the last six recessions. With a weaker recovery, these rates fell by another 0.4 percentage points by September.”

Published: September 24, 2010

Use of this article without permission is a violation of federal copyright laws.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Fixed-Rate Mortgages Unchanged While ARMs Are Mixed

www.MyNvaHomes.com

McLean, VA “ Freddie Mac today released the results of its Primary Mortgage Market Survey ® (PMMS ®). The 30-year fixed-rate mortgage rate and the 15-year fixed-rate were unchanged; shorter-term rates were mixed.

30-year fixed-rate mortgage (FRM) averaged 4.37 percent with an average 0.7 point for the week ending September 23, 2010, unchanged from last week when it averaged 4.37 percent. Last year at this time, the 30-year FRM averaged 5.04 percent.

15-year FRM this week averaged a record low of 3.82 percent with an average 0.7 point, unchanged from last week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.46 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.54 percent this week, with an average 0.6 point, down slightly from last week when it averaged 3.55 percent. A year ago, the 5-year ARM averaged 4.51 percent.

1-year Treasury-indexed ARM averaged 3.46 percent this week with an average 0.7 point, up from last week when it averaged 3.40 percent. At this time last year, the 1-year ARM averaged 4.52 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, said, “In its September 21st policy committee statement, the Federal Reserve indicated that the pace of recovery in output and employment has slowed in recent months. In addition, inflation was at levels somewhat below its comfort zone. The perception of slow growth and low inflation removed any upward pressure on fixed mortgage rates this week.”

“Since 1975, fixed mortgage rates typically fall over the 12 months following the end of a recession; the one exception was the 1980 downturn. The National Bureau of Economic Research recently announced that the current recession ended in June 2009. Rates for 30-year fixed mortgages were 0.7 percentage points lower in June 2010, representing the largest decline during the first year of recovery over the last six recessions. With a weaker recovery, these rates fell by another 0.4 percentage points by September.”

Published: September 24, 2010

Use of this article without permission is a violation of federal copyright laws.

McLean, VA “ Freddie Mac today released the results of its Primary Mortgage Market Survey ® (PMMS ®). The 30-year fixed-rate mortgage rate and the 15-year fixed-rate were unchanged; shorter-term rates were mixed.

30-year fixed-rate mortgage (FRM) averaged 4.37 percent with an average 0.7 point for the week ending September 23, 2010, unchanged from last week when it averaged 4.37 percent. Last year at this time, the 30-year FRM averaged 5.04 percent.

15-year FRM this week averaged a record low of 3.82 percent with an average 0.7 point, unchanged from last week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.46 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.54 percent this week, with an average 0.6 point, down slightly from last week when it averaged 3.55 percent. A year ago, the 5-year ARM averaged 4.51 percent.

1-year Treasury-indexed ARM averaged 3.46 percent this week with an average 0.7 point, up from last week when it averaged 3.40 percent. At this time last year, the 1-year ARM averaged 4.52 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, said, “In its September 21st policy committee statement, the Federal Reserve indicated that the pace of recovery in output and employment has slowed in recent months. In addition, inflation was at levels somewhat below its comfort zone. The perception of slow growth and low inflation removed any upward pressure on fixed mortgage rates this week.”

“Since 1975, fixed mortgage rates typically fall over the 12 months following the end of a recession; the one exception was the 1980 downturn. The National Bureau of Economic Research recently announced that the current recession ended in June 2009. Rates for 30-year fixed mortgages were 0.7 percentage points lower in June 2010, representing the largest decline during the first year of recovery over the last six recessions. With a weaker recovery, these rates fell by another 0.4 percentage points by September.”

Published: September 24, 2010

Use of this article without permission is a violation of federal copyright laws.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

“Just Say No” to a Seller

by Jennifer Allan

Www.MyNvaHomes.com

How to “Just Say No” to Your Seller without Sounding Lazy, Cheap or Disrespectful

God Bless ‘em. Our sellers just want to help. They have lots of opinions on how their homes should be marketed, advertised and promoted to agents and buyers, and they love sharing those opinions. And of course, they expect us to agree with their opinions and implement their ideas immediately!

Sometimes they’re right. Sometimes, though, they aren’t. No disrespect to homesellers around the world, but your agent does, or should, know more about selling houses than you do. They have tried and true practices of what works and what doesn’t.

Truth be told, there are things we do simply because they make our sellers happy. There’s nothing wrong with that. In fact, there’s a lot right about it. And many of these things we do to market our listings primarily promote ourselves more so than the property, and again, that’s just fine. Open houses, color brochures, single-domain websites, Craigslist postings and virtual tours might fall under one or both of these categories.

But what about ineffective marketing that is expensive or time-consuming? What if you know that, for example, broker open houses, magazine or newspaper advertising or city-wide flyer distribution simply do not work in your market?

How can you tell your seller “no” without sounding cheap, lazy or disrespectful?

“Well, Joe, here’s the thing. I want to sell your house as much as you do, so if I thought a particular marketing venue would work, I’d be all over it.”

Very simple. It reminds the seller that you’re on the same team, with a common goal of getting the home sold. And it’s true! If you believed that having a color ad in the local real estate magazine would sell the house, you’d do it, right? If you thought that advertising the listing in the newspaper would bring in buyers, you’d advertise in the newspaper all day long, wouldn’t you?

Of course, you certainly may do any and all advertising suggested by your seller; doing these activities certainly won’t hurt the chances of the home selling! But if you want to say “no” and haven’t figured out how, give this a try. If said calmly, confidently and non-defensively, the seller will usually understand and agree!

Published: September 27, 2010

 

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Did you know that ALL banks take into consideration all un-reimbursements declared on income taxes?  

This may adversely affect your clients ability to qualify for their home loan.   This is for ALL borrowers, salary, hourly and self employed.

 

Example:

 

·             A borrower who is Salaried and on their 2009 W2 made $64,000

·             On his 2009 Tax returns he declared $45,000 in unreimbursed expenses (yes believe it or not we see this a lot)

·             The guidelines state that the $45 will have to be deducted from his gross income of $64k worth of earnings, making the borrower™s income a total of $19,000 for 2009, and that the percentage of the write off will be deducted from their 2010 earnings!!!

·             What this means, is that the borrower will not qualify with a 2010 salary of $64k but only $20k!!!

 

Make sure they are turning in their taxes when getting fully œpre-approved. I have seen countless agents devastated, calling me at the last hour inquiring why their clients loan was declined by another bank after ratification of the contract. This goes back to the loan officer not reviewing all necessary documents before issuing the loan approval letter!!

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

28 Ways to Stage Your Clients Home

By Stephanie Andre

RISMEDIA, May 28, 2010”Homeowners looking to sell need to make sure their homes are as prepared as possible. Home staging is key toward that preparation.

Below are 28 key ways to stage a home:

1. Less is more – remove enough so that there is some empty space in closets, on shelves, and in cabinets.
2. Remove or hide all small kitchen appliances.
3. Remove all refrigerator art, family pictures, school schedules, magnets, calendars, etc.
4. Pack up all personal photos.
5. Remove personal necessity items from bathroom and enclosed showers¦ shampoo, toothpaste, hairbrushes, dirty towels, etc.
6. Remove and store seasonal clothes from closets.
7. Rent a storage space. Remove all visible storage boxes from closets and garage.
8. Remove unneeded furniture to make rooms look larger.
9. Remove dated or worn furnishings and accessories. Display only updated new looking items.
10. Remember the rule, œOne will do. When accessorizing surfaces, remember that for staging purposes one item is better than two or more. One vase or clock on a fireplace mantle shows off your home better that two or three items.
11. Use mirrors generously. A mirror at the end of a long hallway makes the home look larger and relieves any cramped feeling. A mirror opposite the bathroom vanity pushes walls back and makes small bathrooms larger.
12. Paint the interior of the house and the front door.
13. Repair, paint, or wash all exterior walls, doors, and trim.
14. Power-wash exterior concrete and other hardscape to unify surface color. It will make these areas look bigger.
15. Replace worn, stained carpeting and cracked floor tiles. Be sure that any remaining carpet, drapery or upholstery holds absolutely no odors.
16. Wash the windows, inside and out. Remove unnecessary screening.
17. Arrange a minimum number of towels in bathroom racks and put out fresh soap.
18. Inside, use fresh flowers in vases. Decorate outside with planters and potted plants.
19. Remove some furniture to open up the rooms. A good rule of thumb, consider eliminating half of all furniture and accessories.
20. Decorate the patio or deck with flowerpots and enough furniture to show that it is usable living space.
21. Furnish covered porches with small outdoor tables and chairs to turn them into obvious living spaces.
22. Landscape. Keep perspective in mind. From the house, looking out, plants and vertical elements should diminish in size as they retreat from the house. This elongates sightlines and visually moves property boundaries further from the house.
23. Air the home by opening windows and doors.
24. No drips! Repair all plumbing, faucets, running toilets.
25. Clean or repair/replace worn caulking around tubs, sinks, counter tops.
26. Deep-clean entire house, oven, fireplace, garage, etc.
27. Enhance fireplace firebox with candles or decorative logs.
28. Replace or supplement existing furniture and accessories with rentals From Brook Furniture Rental to achieve a desired appearance.Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

28 Ways to Stage Your Clients Home

By Stephanie Andre

RISMEDIA, May 28, 2010”Homeowners looking to sell need to make sure their homes are as prepared as possible. Home staging is key toward that preparation.

Below are 28 key ways to stage a home:

1. Less is more – remove enough so that there is some empty space in closets, on shelves, and in cabinets.
2. Remove or hide all small kitchen appliances.
3. Remove all refrigerator art, family pictures, school schedules, magnets, calendars, etc.
4. Pack up all personal photos.
5. Remove personal necessity items from bathroom and enclosed showers¦ shampoo, toothpaste, hairbrushes, dirty towels, etc.
6. Remove and store seasonal clothes from closets.
7. Rent a storage space. Remove all visible storage boxes from closets and garage.
8. Remove unneeded furniture to make rooms look larger.
9. Remove dated or worn furnishings and accessories. Display only updated new looking items.
10. Remember the rule, œOne will do. When accessorizing surfaces, remember that for staging purposes one item is better than two or more. One vase or clock on a fireplace mantle shows off your home better that two or three items.
11. Use mirrors generously. A mirror at the end of a long hallway makes the home look larger and relieves any cramped feeling. A mirror opposite the bathroom vanity pushes walls back and makes small bathrooms larger.
12. Paint the interior of the house and the front door.
13. Repair, paint, or wash all exterior walls, doors, and trim.
14. Power-wash exterior concrete and other hardscape to unify surface color. It will make these areas look bigger.
15. Replace worn, stained carpeting and cracked floor tiles. Be sure that any remaining carpet, drapery or upholstery holds absolutely no odors.
16. Wash the windows, inside and out. Remove unnecessary screening.
17. Arrange a minimum number of towels in bathroom racks and put out fresh soap.
18. Inside, use fresh flowers in vases. Decorate outside with planters and potted plants.
19. Remove some furniture to open up the rooms. A good rule of thumb, consider eliminating half of all furniture and accessories.
20. Decorate the patio or deck with flowerpots and enough furniture to show that it is usable living space.
21. Furnish covered porches with small outdoor tables and chairs to turn them into obvious living spaces.
22. Landscape. Keep perspective in mind. From the house, looking out, plants and vertical elements should diminish in size as they retreat from the house. This elongates sightlines and visually moves property boundaries further from the house.
23. Air the home by opening windows and doors.
24. No drips! Repair all plumbing, faucets, running toilets.
25. Clean or repair/replace worn caulking around tubs, sinks, counter tops.
26. Deep-clean entire house, oven, fireplace, garage, etc.
27. Enhance fireplace firebox with candles or decorative logs.
28. Replace or supplement existing furniture and accessories with rentals From Brook Furniture Rental to achieve a desired appearance.Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

28 Ways to Stage Your Clients Home

By Stephanie Andre

RISMEDIA, May 28, 2010”Homeowners looking to sell need to make sure their homes are as prepared as possible. Home staging is key toward that preparation.

Below are 28 key ways to stage a home:

1. Less is more – remove enough so that there is some empty space in closets, on shelves, and in cabinets.
2. Remove or hide all small kitchen appliances.
3. Remove all refrigerator art, family pictures, school schedules, magnets, calendars, etc.
4. Pack up all personal photos.
5. Remove personal necessity items from bathroom and enclosed showers¦ shampoo, toothpaste, hairbrushes, dirty towels, etc.
6. Remove and store seasonal clothes from closets.
7. Rent a storage space. Remove all visible storage boxes from closets and garage.
8. Remove unneeded furniture to make rooms look larger.
9. Remove dated or worn furnishings and accessories. Display only updated new looking items.
10. Remember the rule, œOne will do. When accessorizing surfaces, remember that for staging purposes one item is better than two or more. One vase or clock on a fireplace mantle shows off your home better that two or three items.
11. Use mirrors generously. A mirror at the end of a long hallway makes the home look larger and relieves any cramped feeling. A mirror opposite the bathroom vanity pushes walls back and makes small bathrooms larger.
12. Paint the interior of the house and the front door.
13. Repair, paint, or wash all exterior walls, doors, and trim.
14. Power-wash exterior concrete and other hardscape to unify surface color. It will make these areas look bigger.
15. Replace worn, stained carpeting and cracked floor tiles. Be sure that any remaining carpet, drapery or upholstery holds absolutely no odors.
16. Wash the windows, inside and out. Remove unnecessary screening.
17. Arrange a minimum number of towels in bathroom racks and put out fresh soap.
18. Inside, use fresh flowers in vases. Decorate outside with planters and potted plants.
19. Remove some furniture to open up the rooms. A good rule of thumb, consider eliminating half of all furniture and accessories.
20. Decorate the patio or deck with flowerpots and enough furniture to show that it is usable living space.
21. Furnish covered porches with small outdoor tables and chairs to turn them into obvious living spaces.
22. Landscape. Keep perspective in mind. From the house, looking out, plants and vertical elements should diminish in size as they retreat from the house. This elongates sightlines and visually moves property boundaries further from the house.
23. Air the home by opening windows and doors.
24. No drips! Repair all plumbing, faucets, running toilets.
25. Clean or repair/replace worn caulking around tubs, sinks, counter tops.
26. Deep-clean entire house, oven, fireplace, garage, etc.
27. Enhance fireplace firebox with candles or decorative logs.
28. Replace or supplement existing furniture and accessories with rentals From Brook Furniture Rental to achieve a desired appearance.Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

28 Ways to Stage Your Clients Home

By Stephanie Andre

RISMEDIA, May 28, 2010”Homeowners looking to sell need to make sure their homes are as prepared as possible. Home staging is key toward that preparation.

Below are 28 key ways to stage a home:

1. Less is more – remove enough so that there is some empty space in closets, on shelves, and in cabinets.
2. Remove or hide all small kitchen appliances.
3. Remove all refrigerator art, family pictures, school schedules, magnets, calendars, etc.
4. Pack up all personal photos.
5. Remove personal necessity items from bathroom and enclosed showers¦ shampoo, toothpaste, hairbrushes, dirty towels, etc.
6. Remove and store seasonal clothes from closets.
7. Rent a storage space. Remove all visible storage boxes from closets and garage.
8. Remove unneeded furniture to make rooms look larger.
9. Remove dated or worn furnishings and accessories. Display only updated new looking items.
10. Remember the rule, œOne will do. When accessorizing surfaces, remember that for staging purposes one item is better than two or more. One vase or clock on a fireplace mantle shows off your home better that two or three items.
11. Use mirrors generously. A mirror at the end of a long hallway makes the home look larger and relieves any cramped feeling. A mirror opposite the bathroom vanity pushes walls back and makes small bathrooms larger.
12. Paint the interior of the house and the front door.
13. Repair, paint, or wash all exterior walls, doors, and trim.
14. Power-wash exterior concrete and other hardscape to unify surface color. It will make these areas look bigger.
15. Replace worn, stained carpeting and cracked floor tiles. Be sure that any remaining carpet, drapery or upholstery holds absolutely no odors.
16. Wash the windows, inside and out. Remove unnecessary screening.
17. Arrange a minimum number of towels in bathroom racks and put out fresh soap.
18. Inside, use fresh flowers in vases. Decorate outside with planters and potted plants.
19. Remove some furniture to open up the rooms. A good rule of thumb, consider eliminating half of all furniture and accessories.
20. Decorate the patio or deck with flowerpots and enough furniture to show that it is usable living space.
21. Furnish covered porches with small outdoor tables and chairs to turn them into obvious living spaces.
22. Landscape. Keep perspective in mind. From the house, looking out, plants and vertical elements should diminish in size as they retreat from the house. This elongates sightlines and visually moves property boundaries further from the house.
23. Air the home by opening windows and doors.
24. No drips! Repair all plumbing, faucets, running toilets.
25. Clean or repair/replace worn caulking around tubs, sinks, counter tops.
26. Deep-clean entire house, oven, fireplace, garage, etc.
27. Enhance fireplace firebox with candles or decorative logs.
28. Replace or supplement existing furniture and accessories with rentals From Brook Furniture Rental to achieve a desired appearance.Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

28 Ways to Stage Your Clients Home

By Stephanie Andre

RISMEDIA, May 28, 2010”Homeowners looking to sell need to make sure their homes are as prepared as possible. Home staging is key toward that preparation.

Below are 28 key ways to stage a home:

1. Less is more – remove enough so that there is some empty space in closets, on shelves, and in cabinets.
2. Remove or hide all small kitchen appliances.
3. Remove all refrigerator art, family pictures, school schedules, magnets, calendars, etc.
4. Pack up all personal photos.
5. Remove personal necessity items from bathroom and enclosed showers¦ shampoo, toothpaste, hairbrushes, dirty towels, etc.
6. Remove and store seasonal clothes from closets.
7. Rent a storage space. Remove all visible storage boxes from closets and garage.
8. Remove unneeded furniture to make rooms look larger.
9. Remove dated or worn furnishings and accessories. Display only updated new looking items.
10. Remember the rule, œOne will do. When accessorizing surfaces, remember that for staging purposes one item is better than two or more. One vase or clock on a fireplace mantle shows off your home better that two or three items.
11. Use mirrors generously. A mirror at the end of a long hallway makes the home look larger and relieves any cramped feeling. A mirror opposite the bathroom vanity pushes walls back and makes small bathrooms larger.
12. Paint the interior of the house and the front door.
13. Repair, paint, or wash all exterior walls, doors, and trim.
14. Power-wash exterior concrete and other hardscape to unify surface color. It will make these areas look bigger.
15. Replace worn, stained carpeting and cracked floor tiles. Be sure that any remaining carpet, drapery or upholstery holds absolutely no odors.
16. Wash the windows, inside and out. Remove unnecessary screening.
17. Arrange a minimum number of towels in bathroom racks and put out fresh soap.
18. Inside, use fresh flowers in vases. Decorate outside with planters and potted plants.
19. Remove some furniture to open up the rooms. A good rule of thumb, consider eliminating half of all furniture and accessories.
20. Decorate the patio or deck with flowerpots and enough furniture to show that it is usable living space.
21. Furnish covered porches with small outdoor tables and chairs to turn them into obvious living spaces.
22. Landscape. Keep perspective in mind. From the house, looking out, plants and vertical elements should diminish in size as they retreat from the house. This elongates sightlines and visually moves property boundaries further from the house.
23. Air the home by opening windows and doors.
24. No drips! Repair all plumbing, faucets, running toilets.
25. Clean or repair/replace worn caulking around tubs, sinks, counter tops.
26. Deep-clean entire house, oven, fireplace, garage, etc.
27. Enhance fireplace firebox with candles or decorative logs.
28. Replace or supplement existing furniture and accessories with rentals From Brook Furniture Rental to achieve a desired appearance.Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Simple Way to Grow Healthy Lawn

by Phoebe Chongchua

www.MyNvaHomes.com

Landscape is one of the first things buyers see when they’re shopping for a home. That can be good or bad depending on the home’s curb appeal. If there’s a green, well-maintained lawn, it’s an indication that the inside of the home is likely equally cared for. But sometimes getting the lawn to stay green and healthy is a bit challenging. Whether it’s brown or yellow lawn or insect problems that are killing off your turf, there’s a way to combat the problem. Turf Revolution has a simple way to check the pH of the lawn. Yes, the pH, like with our bodies is important to the overall condition of your turf.

“Turf Revolution takes a proactive approach to lawn care,” says Tammy Lawrence. The company makes a soil testing kit that can be purchased for approximately $24.99. The first step in the kit is to take a couple of soil samples, mail them back in and wait for your customized report. “It’s done by an independent laboratory. So, it’s not Turf Revolution the manufacturer trying to sell one product. It’s done by an independent soil test facility that tells you exactly what’s happening and these people do golf course and agriculture so they really know what they’re talking about,” explains Lawrence.

Soil testing is meant to help give you a green thumb by letting homeowners know important information about their particular property and yard. Lawrence says that will save a lot of money.

“The first page of the report that you get back, we call it, ‘The Good, the Bad, and the Ugly’. It tells you exactly what’s happening in your soil. It’ll tell you where your pH levels are, your organic matter levels are, your sodium and a number of other things”that all sounds really complicated to people but it gives you a description about why these things are important to growing a healthy lawn,” says Lawrence.

The second page of the report gives homeowners a customized maintenance program that explains when, how much, and where to apply your fertilizer. “It’ll give you some corrective solutions as well. So if you have a very acidic soil”that’s a low pH”it’ll [suggest] a corrective blend of fertilizer to use to correct that problem,” says Lawrence.

Much like cooking a gourmet meal, growing a healthy lawn requires having the right ingredients. “It’ll give you a shopping list at the bottom so it takes the guess work out of it. It tells you how much you need to purchase and when to apply, just like a professional lawn care operator would do but it’s a do-it-yourself program,” says Lawrence.

Perhaps one of the biggest advantages is that through soil testing and obtaining the results, you can learn how to not waste product, time, and money. “One of the nice things about having this report is that you’re actually using what you’ve purchased more effectively. You’re not putting down more than what you need and you’re not putting down what you don’t need. Also, you’re reducing the use of chemicals and pesticides,” says Lawrence.

Maintaining a healthy lawn allows you to not have to be reactive. When the lawn gets in very poor shape and homeowners use chemicals and pesticides to kill off insects, much of those products end up in runoff to groundwater.

Additional maintenance tips about how to effectively water and mow your lawn are included with the report. So far, the kit is just for soil testing for lawns but the company is planning to release a soil testing kit for gardens and trees and shrubs, possibly as soon as this fall. For more information visit, turfrevolution.com.

Published: May 28, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Simple Way to Grow Healthy Lawn

by Phoebe Chongchua

www.MyNvaHomes.com

Landscape is one of the first things buyers see when they’re shopping for a home. That can be good or bad depending on the home’s curb appeal. If there’s a green, well-maintained lawn, it’s an indication that the inside of the home is likely equally cared for. But sometimes getting the lawn to stay green and healthy is a bit challenging. Whether it’s brown or yellow lawn or insect problems that are killing off your turf, there’s a way to combat the problem. Turf Revolution has a simple way to check the pH of the lawn. Yes, the pH, like with our bodies is important to the overall condition of your turf.

“Turf Revolution takes a proactive approach to lawn care,” says Tammy Lawrence. The company makes a soil testing kit that can be purchased for approximately $24.99. The first step in the kit is to take a couple of soil samples, mail them back in and wait for your customized report. “It’s done by an independent laboratory. So, it’s not Turf Revolution the manufacturer trying to sell one product. It’s done by an independent soil test facility that tells you exactly what’s happening and these people do golf course and agriculture so they really know what they’re talking about,” explains Lawrence.

Soil testing is meant to help give you a green thumb by letting homeowners know important information about their particular property and yard. Lawrence says that will save a lot of money.

“The first page of the report that you get back, we call it, ‘The Good, the Bad, and the Ugly’. It tells you exactly what’s happening in your soil. It’ll tell you where your pH levels are, your organic matter levels are, your sodium and a number of other things”that all sounds really complicated to people but it gives you a description about why these things are important to growing a healthy lawn,” says Lawrence.

The second page of the report gives homeowners a customized maintenance program that explains when, how much, and where to apply your fertilizer. “It’ll give you some corrective solutions as well. So if you have a very acidic soil”that’s a low pH”it’ll [suggest] a corrective blend of fertilizer to use to correct that problem,” says Lawrence.

Much like cooking a gourmet meal, growing a healthy lawn requires having the right ingredients. “It’ll give you a shopping list at the bottom so it takes the guess work out of it. It tells you how much you need to purchase and when to apply, just like a professional lawn care operator would do but it’s a do-it-yourself program,” says Lawrence.

Perhaps one of the biggest advantages is that through soil testing and obtaining the results, you can learn how to not waste product, time, and money. “One of the nice things about having this report is that you’re actually using what you’ve purchased more effectively. You’re not putting down more than what you need and you’re not putting down what you don’t need. Also, you’re reducing the use of chemicals and pesticides,” says Lawrence.

Maintaining a healthy lawn allows you to not have to be reactive. When the lawn gets in very poor shape and homeowners use chemicals and pesticides to kill off insects, much of those products end up in runoff to groundwater.

Additional maintenance tips about how to effectively water and mow your lawn are included with the report. So far, the kit is just for soil testing for lawns but the company is planning to release a soil testing kit for gardens and trees and shrubs, possibly as soon as this fall. For more information visit, turfrevolution.com.

Published: May 28, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Simple Way to Grow Healthy Lawn

by Phoebe Chongchua

www.MyNvaHomes.com

Landscape is one of the first things buyers see when they’re shopping for a home. That can be good or bad depending on the home’s curb appeal. If there’s a green, well-maintained lawn, it’s an indication that the inside of the home is likely equally cared for. But sometimes getting the lawn to stay green and healthy is a bit challenging. Whether it’s brown or yellow lawn or insect problems that are killing off your turf, there’s a way to combat the problem. Turf Revolution has a simple way to check the pH of the lawn. Yes, the pH, like with our bodies is important to the overall condition of your turf.

“Turf Revolution takes a proactive approach to lawn care,” says Tammy Lawrence. The company makes a soil testing kit that can be purchased for approximately $24.99. The first step in the kit is to take a couple of soil samples, mail them back in and wait for your customized report. “It’s done by an independent laboratory. So, it’s not Turf Revolution the manufacturer trying to sell one product. It’s done by an independent soil test facility that tells you exactly what’s happening and these people do golf course and agriculture so they really know what they’re talking about,” explains Lawrence.

Soil testing is meant to help give you a green thumb by letting homeowners know important information about their particular property and yard. Lawrence says that will save a lot of money.

“The first page of the report that you get back, we call it, ‘The Good, the Bad, and the Ugly’. It tells you exactly what’s happening in your soil. It’ll tell you where your pH levels are, your organic matter levels are, your sodium and a number of other things”that all sounds really complicated to people but it gives you a description about why these things are important to growing a healthy lawn,” says Lawrence.

The second page of the report gives homeowners a customized maintenance program that explains when, how much, and where to apply your fertilizer. “It’ll give you some corrective solutions as well. So if you have a very acidic soil”that’s a low pH”it’ll [suggest] a corrective blend of fertilizer to use to correct that problem,” says Lawrence.

Much like cooking a gourmet meal, growing a healthy lawn requires having the right ingredients. “It’ll give you a shopping list at the bottom so it takes the guess work out of it. It tells you how much you need to purchase and when to apply, just like a professional lawn care operator would do but it’s a do-it-yourself program,” says Lawrence.

Perhaps one of the biggest advantages is that through soil testing and obtaining the results, you can learn how to not waste product, time, and money. “One of the nice things about having this report is that you’re actually using what you’ve purchased more effectively. You’re not putting down more than what you need and you’re not putting down what you don’t need. Also, you’re reducing the use of chemicals and pesticides,” says Lawrence.

Maintaining a healthy lawn allows you to not have to be reactive. When the lawn gets in very poor shape and homeowners use chemicals and pesticides to kill off insects, much of those products end up in runoff to groundwater.

Additional maintenance tips about how to effectively water and mow your lawn are included with the report. So far, the kit is just for soil testing for lawns but the company is planning to release a soil testing kit for gardens and trees and shrubs, possibly as soon as this fall. For more information visit, turfrevolution.com.

Published: May 28, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Simple Way to Grow Healthy Lawn

by Phoebe Chongchua

www.MyNvaHomes.com

 

 

Landscape is one of the first things buyers see when they’re shopping for a home. That can be good or bad depending on the home’s curb appeal. If there’s a green, well-maintained lawn, it’s an indication that the inside of the home is likely equally cared for. But sometimes getting the lawn to stay green and healthy is a bit challenging. Whether it’s brown or yellow lawn or insect problems that are killing off your turf, there’s a way to combat the problem. Turf Revolution has a simple way to check the pH of the lawn. Yes, the pH, like with our bodies is important to the overall condition of your turf.

“Turf Revolution takes a proactive approach to lawn care,” says Tammy Lawrence. The company makes a soil testing kit that can be purchased for approximately $24.99. The first step in the kit is to take a couple of soil samples, mail them back in and wait for your customized report. “It’s done by an independent laboratory. So, it’s not Turf Revolution the manufacturer trying to sell one product. It’s done by an independent soil test facility that tells you exactly what’s happening and these people do golf course and agriculture so they really know what they’re talking about,” explains Lawrence.

Soil testing is meant to help give you a green thumb by letting homeowners know important information about their particular property and yard. Lawrence says that will save a lot of money.

“The first page of the report that you get back, we call it, ‘The Good, the Bad, and the Ugly’. It tells you exactly what’s happening in your soil. It’ll tell you where your pH levels are, your organic matter levels are, your sodium and a number of other things”that all sounds really complicated to people but it gives you a description about why these things are important to growing a healthy lawn,” says Lawrence.

The second page of the report gives homeowners a customized maintenance program that explains when, how much, and where to apply your fertilizer. “It’ll give you some corrective solutions as well. So if you have a very acidic soil”that’s a low pH”it’ll [suggest] a corrective blend of fertilizer to use to correct that problem,” says Lawrence.

Much like cooking a gourmet meal, growing a healthy lawn requires having the right ingredients. “It’ll give you a shopping list at the bottom so it takes the guess work out of it. It tells you how much you need to purchase and when to apply, just like a professional lawn care operator would do but it’s a do-it-yourself program,” says Lawrence.

Perhaps one of the biggest advantages is that through soil testing and obtaining the results, you can learn how to not waste product, time, and money. “One of the nice things about having this report is that you’re actually using what you’ve purchased more effectively. You’re not putting down more than what you need and you’re not putting down what you don’t need. Also, you’re reducing the use of chemicals and pesticides,” says Lawrence.

Maintaining a healthy lawn allows you to not have to be reactive. When the lawn gets in very poor shape and homeowners use chemicals and pesticides to kill off insects, much of those products end up in runoff to groundwater.

Additional maintenance tips about how to effectively water and mow your lawn are included with the report. So far, the kit is just for soil testing for lawns but the company is planning to release a soil testing kit for gardens and trees and shrubs, possibly as soon as this fall. For more information visit, turfrevolution.com.

Published: May 28, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Simple Way to Grow Healthy Lawn

by Phoebe Chongchua

www.MyNvaHomes.com

 

 

Landscape is one of the first things buyers see when they’re shopping for a home. That can be good or bad depending on the home’s curb appeal. If there’s a green, well-maintained lawn, it’s an indication that the inside of the home is likely equally cared for. But sometimes getting the lawn to stay green and healthy is a bit challenging. Whether it’s brown or yellow lawn or insect problems that are killing off your turf, there’s a way to combat the problem. Turf Revolution has a simple way to check the pH of the lawn. Yes, the pH, like with our bodies is important to the overall condition of your turf.

“Turf Revolution takes a proactive approach to lawn care,” says Tammy Lawrence. The company makes a soil testing kit that can be purchased for approximately $24.99. The first step in the kit is to take a couple of soil samples, mail them back in and wait for your customized report. “It’s done by an independent laboratory. So, it’s not Turf Revolution the manufacturer trying to sell one product. It’s done by an independent soil test facility that tells you exactly what’s happening and these people do golf course and agriculture so they really know what they’re talking about,” explains Lawrence.

Soil testing is meant to help give you a green thumb by letting homeowners know important information about their particular property and yard. Lawrence says that will save a lot of money.

“The first page of the report that you get back, we call it, ‘The Good, the Bad, and the Ugly’. It tells you exactly what’s happening in your soil. It’ll tell you where your pH levels are, your organic matter levels are, your sodium and a number of other things”that all sounds really complicated to people but it gives you a description about why these things are important to growing a healthy lawn,” says Lawrence.

The second page of the report gives homeowners a customized maintenance program that explains when, how much, and where to apply your fertilizer. “It’ll give you some corrective solutions as well. So if you have a very acidic soil”that’s a low pH”it’ll [suggest] a corrective blend of fertilizer to use to correct that problem,” says Lawrence.

Much like cooking a gourmet meal, growing a healthy lawn requires having the right ingredients. “It’ll give you a shopping list at the bottom so it takes the guess work out of it. It tells you how much you need to purchase and when to apply, just like a professional lawn care operator would do but it’s a do-it-yourself program,” says Lawrence.

Perhaps one of the biggest advantages is that through soil testing and obtaining the results, you can learn how to not waste product, time, and money. “One of the nice things about having this report is that you’re actually using what you’ve purchased more effectively. You’re not putting down more than what you need and you’re not putting down what you don’t need. Also, you’re reducing the use of chemicals and pesticides,” says Lawrence.

Maintaining a healthy lawn allows you to not have to be reactive. When the lawn gets in very poor shape and homeowners use chemicals and pesticides to kill off insects, much of those products end up in runoff to groundwater.

Additional maintenance tips about how to effectively water and mow your lawn are included with the report. So far, the kit is just for soil testing for lawns but the company is planning to release a soil testing kit for gardens and trees and shrubs, possibly as soon as this fall. For more information visit, turfrevolution.com.

Published: May 28, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

There are three important areas for Realtors to be successful in to survive in any market. First and foremost is lead generation. Without lead generation, you can have all the skills, knowledge and ability to be a success but without clients, you won™t make a penny in the business. The next one is being solution oriented and solving problems for your clients. When you resolve issues, you become a valuable resource to your clients and will receive leads on an ongoing basis. And the third key area is negotiation and that is what we are going to cover in this blog today.

Let™s review some of the important pieces of the puzzle to negotiating successfully. To know where we are going we must know where we are coming from. First, start by analyzing previous negotiations. What went well, what didn™t & why. What did you learn? What did your clients learn? Review this with your new clients to set expectations of success in their transaction. By having the proper expectations, your road to a successful end is much more likely to happen.

Next, assess your client™s situation prior to entering the negotiations. Do your research. Ask lots of questions because information is critical to successful negotiations. Who is involved? What is your strategy? Where will you give concessions? What are your best alternatives? Where do you want to end up? Also, through your research determine, do we want to work with them? What is the motivation of the other side? When do they need to move and why? Who is the other party involved in the transaction and what is their background? Discuss what your options are with your client? Determine the œwhat if™s. Then listen and take notes.

Also, remember, it is just as important to know what your side wants as much as it is to know what the other side wants. Do you know their position as well as your own? What are their objectives? How do you get the information? Ask the agent or lender about the client and their situation. Also, check them out on the internet, Google, social media outlets, DPOR and public records are just a few places to begin.

Who and how do you control the negotiations? The person who asks the most questions and gathers the most information and can build the bridge to a successful end. Plan your questions according to the situation so you can create win-win negotiations. Let™s review how you create win-win negotiations. Find common ground and build upon it to get the common goal of both parties. Discuss all options available to both sides to get resolution. If you come to a stall in the negotiations review how close you are to the final outcome, review how you got how you got where you are and why it is important complete the negotiations. Use your notes and remind the other side it is better to negotiate than not negotiate to get resolution on the issue creating the stall. Convey flexibility in one area over another. Ask other side to restate their position, gain understanding and restate your position as well. If the other side asks for a concession, say œyes if. Focus on the issues at hand and not positions and be tough on the issues but not the people involved “ separate them. Always seek to understand and be understood. Remind the other side of the mutual benefits of resolving the issue. Use we “ not us and them. Ask the other side, œWhat would you do? Never narrow it down to one issue “ keep the discussions open and fluid.

What to avoid: getting confrontational; giving up walk away power or getting to the point of no return; giving up control; negotiating against yourself; improper use of concessions; assuming the other side wants the same thing as you; missing out on clues (good cop bad cop, flinching, stalling, red herrings, nibbling, higher authority, hot potato, any others, etc.); getting to bottom line too quickly; negotiating with the wrong party; negotiating price too soon and too quickly; not explaining your value “ up front;

In addition to what we mentioned, we also need to strive for in negotiations are to keep an open mind “ think outside the box. Focus on what™s right not who™s right “ it™s not personal. If negotiations boil down to one issue “ it™s a win lose¦stay focused on give and take scenarios. Answer questions with questions to determine what they really want. Don™t pre-negotiate with yourself and don™t answer questions that weren™t asked. Keep your ego in check. You have more power than you think you have in the negotiations. Put things in writing so the issues are clear. No is just an objection that you need more clarification on “ ask why they are saying no. Start high or low depending upon the situation you are encountering. List your assumptions on what will happen and the scenarios that will happen as a result of each option. Build a relationship prior to beginning negotiations with the other side “ by having a relationship, the transaction will go more smoothly. Communication is the key “ ask permission to ask questions. Never say yes to the first offer and know the reason why. Give in diminishing chunks. Always give the impression you have other alternatives and this isn™t the only choice to gain leverage. Keep your client™s information confidential. Realize your strengths in your situation. After making offer, remain silent.

Practice negotiations all the time and in different situations. Also, it is also critical to rehearse with an accountability partner prior to presenting your offer to the other side as you need to be sharp with your presentation skills.

By exercising and utilizing these tips and tactics, you will have great success in real estate. Get it? Got it? Good!

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Rainy Day Kid Tips

by Carla L. Davis

www.MyNvaHomes.com

This season brings with it its share of rainy days. And while you and other homeowners may not be able to work on your yards, clean out gutters, or install that new walkway, a stormy day can be a perfect time to settle in to enjoy family and the home you’ve put so much effort in to. Here are ten great stay-at-home activities for you to try with your crew.

1. Plan a Scavenger Hunt. Hide a prize, such as a movie to watch or a treat to eat, in the final location, and then leave a succession of clues and riddles around your home for the kids to investigate and follow.

2. Go Camping. If you have the space, consider setting up your camping tent in a large room, such as your family room. If you don’t have a tent, use chairs and a large blanket to mock the structure. Make smores in the microwave and tells scary stories against the backdrop of rain and thunder.

3. Talent Show. Set up a “stage” in your family room, and then let everyone take their turn showcasing what they do best. This is a great confidence booster, and can provide even more entertainment years down the road if you take video proof! Your family is probably full of musicians, dancers, comedians, and artists, and now is their time to shine.

4. Arts and Crafts. Let your inner Picasso shine forth. From crayons, to paints, to Popsicle sticks, there is no limit to what projects you and your family can tackle.

5. Baking Cookies. There’s a reason that home stagers light cookie scented candles during showings; nothing is homier than an oven full of baking cookies. Pull out your dusty Betty Crocker cookbook and make the delectables from scratch. This can be just as educational as it is fun.

6. Bocce Socks! Bocce ball is a classic Roman sport, but a rainy day calls for a new twist. Use rolled up socks as substitutes for the wooden balls.

7. Card games and board games. One great thing about board games is they are offered for a wide range of ages. From “Chutes and Ladders” to “Risk,” there is a little something for everyone.

8. Reading aloud. Before the age of iPods, DVDs, and even Television, there was a family activity that brought a story alive. Reading aloud can be a great activity, and “research and practice show that …. reading aloud is the best way to prepare children for learning to read and to keep them reading as they learn and grow. ” (Reading is Fundamental.org)

9. Puppet shows. Dig though your dresser drawers to find old socks that need new life. Assemble the glue gun, markers, scrap fabric, yarn, and construction paper and make hand puppets.

10. Movie-a-thon. It’s a rainy day classic. Fix a tray of snacks, such as popcorn, “ants on a log” (that’s celery, peanut butter, and raisins!), or some of those cookies you made in number five. Have everyone pick out their favorite movie, new or old, and then settle in for an afternoon of classic cinema.

Use some of these tips and have a great rainy day!

Published: April 23, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Earth Day 2010

by Carla L. Davis

www.RealtyTimes.com

www.MyNvaHomes.com

Earth Day was founded 40 years ago by U.S. Senator Gaylord Nelson. And now, April 22 has become a day when countries and people all across the globe celebrate the Earth’s environment and focus on developing an awareness of how we affect it.

As homeowners, we consume a lot of energy, and leave one heck of a carbon footprint. From the moment our homes are constructed, we are consuming resources and emitting toxins into the air through paints and stains. Once in the home, we use a myriad of products every day in our normal routines, from dish soap, to laundry detergent, to sprinkler systems for our lawns, and all of which use, and sometimes abuse, mother nature’s resources.

Change starts with each individual person. And change is inspired by knowledge.

Did you know that Americans use and toss 2,500,000 plastic bottles every hour? And a plastic bottle takes around 1,000 years to biodegrade. That’s a lot of trash!

Did you know that just one quart of motor oil can contaminate up to 2,000,000 gallons of fresh water? You can properly dispose of your motor oil by taking it to your local Auto Zone, or similar stores. Every AutoZone store accepts used batteries for recycling and 95% of their stores accept used motor oil and other used fluids. The American Petroleum Institute says, “If you change your own oil, be certain that you take it to a collection center for recycling. If you take your car to an automotive service outlet, you can be fairly certain that they recycle the oil that they change.”

Did you know that every year, each American throws out about 1,200 pounds of organic garbage that can be composted? If you have the space, consider buying a composting bin for your yard. New designs are more ascetically pleasing than those of the past — and they don’t smell half bad, either!

One great step you can take to help preserve the environment, and to combat to above statistics, is to become proactive when it comes to recycling.

Contact your local waste disposal company and see what programs they may already have in place. If your community doesn’t collect at the curb, them simply save up your bottles and other recyclables (paper, plastic, glass bottles, cardboard, and aluminum cans) and take them to a local recycling center.

To take this process one step further, replace those plastic water bottles with a water filtration system. There are inexpensive ways to accomplish this, such as using Brita filters that attach directly to your faucet, or Brita water pitchers to be used and refilled. But if you want to it to another level, there are whole house water filtration systems that will even filter the water you shower in! There are systems that cost less than $1,000, and will last for years to come.

Have a great Earth Day this year, and to find our more tips on making your household green, visit the EPA’s Earth Day site.

Published: April 13, 2010

Thomas Merical

20130 Lakeview Center Plaza
Ashburn, VA 20147
Licensed in Virginia
703-430-9008

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Browsing For Housing Requires On-line, Off-line Smarts

by Broderick Perkins

www.RealtyTimes.com

www.MyNvaHomes.com

Nearly nine out of 10 home buyers can’t be wrong — browsing for housing online puts listings at their fingertips, speeds the home-buying process, and comes with an educational bonus.

“More informed buyers, improve the transaction process,” says Douglas de Jager, co-founder of DotHomes.com one of the newer online listing services on the block.

The California Association of Realtors (CAR) reports that 84 percent of home buyers use the internet as a significant part of the home buying process, according to its 2009 Survey of California Homebuyers.

“There is so much more information made available to us online, when you go to the actual home, it’s just a validation process for what you’ve seen online,” de Jager adds.

But transforming digital digs into a real home of your dreams isn’t just about bandwidth and educational content.

Using the Internet to buy a home comes with the same prerequisite necessary for any buyer — get financing locked down first.

Certainly, the Internet can help with financing too. There are numerous mortgage comparison sites, virtually every lender is online and finance and credit information portals abound.

A home buyer with an approved mortgage — obtained online or off — has a negotiating edge and the financial boundaries necessary to help keep focused on a home that’s truly affordable.

Only then is it time to surf for shelter.

DotHomes.com, a listing site with Google-like search features, offers these tips to help you get the most out of your online home shopping experience.

¢ Leverage the broker. Brokers and real estate agents are the housing market’s matchmakers. They use local expertise to connect buyers and sellers. They’ve honed online tools to help you research, browse and focus your online search. The tools put you in touch with all the information and resources the listing agent or broker has to offer — broker blogs, emailed updates tailored to your search, market reports tailored to your market, how-tos and other information.

¢ Search in real-time. Get property listings and other information electronically “fed” to you via RSS (really simple syndication) feeds, email alerts and Web updates. Electronic updates are an adjunct to your own time spent online. Alerts keep you abreast of the newest listings and reduce your need to manually check the Web again and again for updates. That’s especially true when you are on the go, say driving from open house to open house. Blackberries, iPhones and other smart phones keep you connected to your search.

¢ Search “fresh.” Avoid fringe listing sites that don’t update frequently and are far removed from the original online broker’s listing. If you don’t, you’ll miss out on listing changes and updates like new pricing information, new photos, open house dates and the like. Web sites that don’t link to the original listing, lock you away from updates. Nothing is more frustrating than to find online what you consider your dream home only to soon discover that the listing was sold, removed from the market or otherwise changed beyond your requirements — but not removed from an Internet server.

¢ Refine your search. Don’t get overwhelmed. With so many listings on the market, both traditional listings and distressed properties, quickly navigating them all is a chore. Use online tools and Web sites that allow you to refine your property search. If you are looking for a house on a particular street, search the street. If you need a pet friendly condo, ask. Whether you know exactly what you want or are just starting to figure it out, be specific with search terms like “new roof,” “three-car garage,” “established landscaping,” “new kitchen appliances,” etc. to find the property with the features you need.

Along with the well known national listing Web sites from trade groups, large private listing portals and real estate companies, the local multiple listing service’s (MLS) public access portal are among the best places to search on line because they use standard formatting and strict guidelines about adding and removing listings in a timely manner.

¢ Screen home movies. A picture is worth a thousand words, but a video, a virtual open house, looks like a million bucks. Kodak moments can help you get a two-dimensional feel for a property, but virtual tours add a third dimension. Videos offer a much better sense of the proportions and the feel of a property. They can also play the starring role — as a sort of 24-hour open house — on a Web site or blog dedicated to the listing.

Here’s another browsing for housing bonus: If you buy a home with its own Web site and virtual tour, you can ask the seller to gift the Web site or blog to you!

Published: March 18, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

All About Home Inspections

by Carla L. Davis

www.RealtyTimes.com

www.MyNvaHomes.com

If you are in the market to buy a home, then it is time to understand the basics of home inspections.

According to the National Association of Realtors, 77 percent of home buyers had a home inspection prior to purchasing their home, and Realtors report that 84 percent of home buyers requested a home inspection as part of their contract.

When choosing a home inspector, you want to find a qualified and experienced professional. In this field, that means having client contacts or testimonials to back up their work, as well as the appropriate state license to operate as a home inspector. Not every state requires a license, and if not, you can ask whether of not they are a member of the American Society of Home Inspectors or the National Association of Home Inspectors. In your inspector interview, ask about cost, whether they offer a guarantee on their work, how long their inspection should take, and how you’ll be receiving the report (written or otherwise).

Some inspectors charge a flat rate, but the cost can vary depending on the size of the job, the expertise level of the inspector, among many other factors. As a ballpark, an inspection can cost around $400.

You should expect a typical inspection to take several hours. Smaller homes take less time than larger or older homes. If you really want to be invested in this process, it is recommended that you are present for the inspection. Ask for things to be explained as you go “ including how certain things work and where valves, switches, and such are.

Be sure to ask for a written report,and consider asking for price estimate for repairs. A repair estimate is a good negotiation tool when it comes to settling on a final sale price for a home.

It is important to note that a home inspection is not a gold stamp of approval that your new home will be in perfect working order. Things break and items will need repaired. Your home inspector is not liable for repairs or damages.

You can, however expect an inspection of hundreds of items, including: Structural elements, exterior evaluation, roof and attic, plumbing, systems and components, electrical, appliances, and the garage.

Published: April 5, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

No Need to Hit the Panic Button Yet “ Added Jobs Push Mortgage Rates Up

by Ed Ferrara

www.RealtyTimes.com

www.MyNvaHomes.com

For those worried the end of government mortgage-backed securities purchasing  could spell a  dramatic increase in home loan rates, there’s no need to hit the panic button just yet.  A slight rise (+0.125) in long term interest rates Friday was more  the product of a Labor Department report showing that the US added 162,000 jobs in March, the biggest monthly gain in three years, than it was  a  direct  effect of the March 31st  Fed MBS exit.

Mortgage-backed securities prices, which drive mortgage rates in the opposite direction, have dropped twice in the past 10 days each time pushing conforming 30-yr fixed rates up 1/8, once before and once after March 31st.  

Reports  depicting the  up-tic in rates as the end of an era of low fixed mortgage rates are unfounded. While in a doomsday scenario it’s speculated the Fed exit from MBS buying could leave a void in MBS markets big enough that demand and prices plummet causing long term fixed rates to skyrocket, fed officials suggest private buyers are ready to step in and take their place.

According to FreeRateUpdate.com conventional 30-yr fixed mortgages are available today at 5 percent to well qualified consumers paying a standard .07 to 1 point origination. 15-yr fixed mortgages are now available at 4.375 percent, up from 4.25. Today’s 5/1 ARM rates are at 3.75 percent, up from 3.625. Despite the sub 4 percent 5/1 ARM rate, data shows borrowers are choosing fixed loans over adjustable loans at a record ratio and have been for several months (96 percent of new mortgages are fixed – Freddie Mac).  

FHA 30-yr fixed mortgages are available at 4.875 percent today, an 1/8 lower than conventional loans.  Securing FHA financing means a higher APR, despite the note rate and origination being the same, MI and other FHA fees charged on FHA loans drive up the cost. Increasing those costs  yesterday was  a boost to MI from 1.75 to 2.25 percent of the loan amount. The increase (+0.50) in the premium (MI) charged to borrowers at closing is part of an effort to help the Federal Housing Administration guard against losses from record high loan default rates.  

Jumbo mortgages remain available at a 30-yr fixed rate of 5.625, the same as last week.  

The benchmark 10-yr treasury yield, a leading indicator for fixed mortgage rates, is near a 1 year high.

Rates mentioned in this article  are available  to well-qualified consumers paying a standard .07 to 1 point origination as verified by FreeRateUpdate.com research of over two dozen wholesale lenders’ rate sheets. Conventional: Conforming Freddie Mac and Fannie Mae insured mortgages. FHA loans are backed by the Federal Housing Administration.

Today’s Mortgage Rates:

• 30 yr fixed rate – 5.000%
• 15 yr fixed rate – 4.375%
• 5/1 ARM rate – 3.750%
• FHA 30 yr fixed rate – 4.875%
• FHA 15 yr fixed rate – 4.500%
• FHA 5/1 ARM rate – 3.750%
• VA 30 yr fixed rate – 5.000%
• Jumbo 30 yr fixed rate – 5.625%
• Jumbo Conforming 30 yr fixed rate – 5.250%

Source: FreeRateUpdate.com

Published: April 6, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Benefits of Homeownership

by Carla L. Davis

www.RealtyTimes.com

www.MyNvaHomes.com

Homeownership can bring with it many blessings. Yet, the idea of caring for and maintaining a home, as well as affording a mortgage can seem daunting, but let’s review some of the many reasons that homeownership can be beneficial.

The most obvious benefit is building wealth. The U.S. Department of Housing and Urban Development (HUD) notes that “home equity is the largest single source of household wealth for most Americans.”

What is home equity? Home equity is the difference between the home’s fair market value and the outstanding balance of all liens on the property. Let’s say you have a balance of $100,000 left on your home’s mortgage, but the property appraises for $150,000. You now have $50,000 worth of home equity.

And let’s not forget about appreciation. While there is no set year-to-year rate that is considered normal, reports indicate that you can expect around a 6.5 percent average value increase in your home each year.

The National Homeownership Strategy cites that œthrough homeownership, a family … invests in an asset that can grow in value and … generate financial security.” This is what sets homeowners apart from renters.

Other wealth builders to consider are tax breaks and tax credits, such as the deductibility of property taxes and mortgage interest and the exclusion of capital gains, and the $8,000 first time home buyer and $6,500 home buyer tax credits.

But beyond the numbers and the long term investment benefits, studies have shown that owning a home can actually make you healthier, and make your children happier.

Homeownership allows people to have greater control and inspires responsibility over their living environment. It helps stabilize and strengthen communities. And it helps generate jobs and stimulate the economy (National Homeownership Strategy)

The U.S. Department of Housing and Urban Development (HUD) reports: œHomeowners accumulate wealth as the investment in their homes grows, enjoy better living conditions, are often more involved in their communities, and have children who tend on average to do better in school and are less likely to become involved with crime. Communities benefit from real estate taxes homeowners pay, and from stable neighborhoods homeowners create

And according to NAR™s Social Benefits of Homeownership and Stable Housing, homeownership brings with it:

• Higher educational performance and better behavior of children
• Lower community crime rates
• Lessened welfare dependency among households
• More household participation in civic affairs
• Better household health

These wonderful benefits only graze the surface of the world of benefits that awaits you in homeownership. Be sure to talk to your real estate agent about what other good things come your way when you buy a home.

Published: March 22, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Housing Affected by Demographic Trends

by Phoebe Chongchua

www.RealtyTimes.com

www.MyNvaHomes.com

The Urban Land Institute predicts there will be two major changes beginning in this new decade in our country that will affect the housing market.

The first is that home appreciation will slow. The report predicts annual appreciation of 1 percent to 2 percent. The second change is that the record-high U.S. homeownership rate will decline from 69 percent to 62 percent.

Four other demographic trends are likely to have an impact as well. Aging baby boomers, those 55 to 64 years old, will keep working, and, some may stay put in their current suburban homes until the values recover. And, just as I wrote about last week, those in this group who do move will look for comfortable, easy homes (first-floor master bedroom), but the report indicates they™ll look for mixed-age living environments that cater to active lifestyles.

The second major demographic trend could impact the second-home market. Those between the ages of 46 to 54 years old, according to the report, are in their prime earning years; however, they lack home equity and may not be able to afford second homes (unlike the older baby boomers).

There are approximately 68-million people that make up Generation Y. This group is even larger than the baby boomers. But the report indicates this group is less interested in homeownership. The author of the report, John K. McIlwain, wrote, œThey will be renters by necessity or choice for years ahead. Not surprisingly, this tech-savvy group places high value on communities”real and virtual”where information and ideas can be shared.

This generation likes walkable, close-in communities. They™re not seeking to escape to the outer edges of town, unless they can™t afford anything nearby. Another big draw”œnet zero homes”green and powered exclusively by alternative energy.

The fourth major demographic trend involves immigrants. This group is often attracted to multi-generational housing in areas that have a strong sense of community. So, larger homes are preferred, if affordable.

Overall, the lasting stability of the U.S. housing market, according to McIlwain, will depend most on the structure and revitalization of the private home mortgage finance system.

“Re-establishing a robust private mortgage market will require both strong market fundamentals and a reformed mortgage securitization structure that eliminates past abuses,” McIlwain said. Bye-bye suburbia, study says. Well, not completely. But the study does indicate that several factors are escalating the popularity of urbanization: two-person household growth (including those households without children), fewer baby boomers moving to the suburbs, Gen Y opting/forced to rent rather than own, and public policies that encourage compact development.

However, the author of the study says that urban infill development can™t accommodate all the housing demand from the demographic groups. McIlwain cautions that suburban development “must adapt or it will be obsolete. A new era is blossoming, œThe suburban century is over. This is the urban century.”

Published: February 5, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Short Sale Transaction a Tall Order

by Broderick Perkins

ReatltyTimes

 

Www.MyNvaHomes.com

A short sale could be a better deal than bankruptcy or foreclosure, but it can also sap your time, wither your credit score and well, cost you money.

To produce a down and dirty primer on short sales, we went to Intero Real Estate Services in Silicon Valley and checked in with other real estate and consumer professionals to get the experts to show us — and you — the ropes.

A short sale occurs when your lender agrees to accept a lower price on your home than the current mortgage balance, provided you meet the lender’s requirements and have a qualified buyer.

“Search for a buyer, especially those who have expressed an interest in buying short sale properties. The buyer must be willing to deal with extended deadlines and additional demands made by your lender,” said Julie Larsen Wyss, a RealtyU graduate and holder of its new Certified Short-Sale Professional (CSP) designation.

“Your lender is the key to a successful short sale transaction and it will need to feel confident in the new buyer,” added Wyss, also a real estate broker associate with Intero Real Estate Services in San Jose, CA. She’s also founder/broker of Vista Mortgage Solutions.

While recent cash incentives for you and your lender make short sales more enticing these days, incentives alone won’t get the job done.

To go the distance on a short sale, you must document you are a hardship case — but not because you falsified the original loan documents.

It can be a win-win scenario — the bank reduces a portion of “bad debt,” avoids foreclosure costs and keeps the home occupied, while you shed a housing payment you can’t afford.

“If done right, the short sale is a winning proposition for all, including the lender because the costs involved are certainly lower than that of foreclosing,” said Nancy Osborne, chief operating officer of Erate.com, a Santa Clara, CA-based financial information publisher and interest rate tracker.

Don’t come up short, prove your case

To prove your case, you’ll need to spend some time on a cover letter explaining your hardship and provide full financial disclosure; the original purchase contract; a balance sheet of your income and expenses; asset statements, proof of income; bank statements; two years of tax returns; and a professional who knows the ropes.

“Simply stating, ‘My house is worth less than the loan and I don™t want to pay any more,’ will not be acceptable. Lenders would rather foreclose than develop a reputation as an easy target,” said Zdenka Mahan, a real estate agent with Intero in Saratoga, CA.

Along with the required documentation, you stand the best chance of getting through the two- to seven-month short sale ordeal if the home is marketable; the second mortgage holder (if there is one) gets a cut or otherwise goes along with the deal; the same lender holds all mortgages; and there is enough time before foreclosure (at least about 4 months).

“A major reason why a short sale fails is the length of time it takes to get the lender™s approval. Long delays frequently cause the buyer to drop out of escrow and buy another home,” said Mahan, a short-sale experienced “Downtown San Jose (CA) Specialist.”

Buyers can also suffer lost opportunity.

“Buyers risk the opportunity cost of losing out on another property if they are tied up in a long, protracted short sale negotiation which could potentially go on for months,” said Osborne.

“The burden to make the deal work falls largely on the seller’s shoulders and their ability to do their homework up front, making things as easy as possible for a potential buyer,” Osborne added.

A short sale works in your favor if your mortgage debt is secured by your home and was used to acquire, construct or substantially improve your home.

Short sales that stop short

Wyss says don’t count on a short sale if you can’t prove hardship; you are current on your mortgage; are in bankruptcy; have recently completed a cash-out refinance or have a lien with a third party.

Because a short sale forgives a portion of the debt owed, that portion could be considered as taxable income and you should seek the advice of a tax attorney, certified public accountant, enrolled agent or other person fully schooled in the tax ramifications of a short sale.

According to FICO, the leading credit scoring system provider, there also may be some credit score implications.

While a short sale won’t be as damaging as a foreclosure or bankruptcy, expect some negative impact. Variables include how the lender reports the deal and what’s already on your credit report. Negatives compound.

Consumer Reports’ Money Advisor suggests that before you enter a mortgage modification or short sale, ask how the lender will report it so you can weigh your priorities.

If you need the break, take the deal sooner rather than later, even if it will hurt your credit score. Negatives on your credit file are removed after seven years. The sooner you get the clock ticking, the better.

Get a short sale team for the long haul

Wyss says the best approach to a short sale is by contracting with a real estate professional familiar with the transaction. As well as RealtyU’s CSP designation the National Association of Realtors offers a Short Sales and Foreclosure Certification Program (SFR).

However, the designations aren’t a guarantee you’ve found the most experienced short sale agent. Some agents without the designation are just as experienced, if not more so. Others are less experienced. Get referrals from friends, family members, co-workers and others you trust who have worked with an agent experienced in short sales or have a close friend with a satisfactory experience.

“A real estate agent needs to put together the most comprehensive short sale proposal possible to minimize the back-and-forth delays,” said Mahan.

You may also need legal and tax counsel. A solid professional team is best for determining the viability of the sale, assembling the package and pricing and listing the property to find a buyer.

Wyss says determine your home’s marketing position from comparative market analyses (CMA) used to price your home.

“If your home’s value is significantly less than debt tied to the property, you are a candidate for a short sale. Position your home so that it sells quickly, but at a high enough price so the lender will agree to the terms,” says Wyss.

Keep in mind, you don’t control the final decision.

You aren’t selling a home on the open market so much as you are selling your case to the lender.

“Lenders are under no obligation to accept a short sale and the terms will be examined closely by the lender,” Wyss added.

Published: February 18, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

FHA to Announce Significant Changes to Loan Programs

In October, the Federal Housing Administration (FHA) announced that its capital reserve fund had fallen below the congressionally mandated level of 2%. Although FHA has two reserves, the capital reserves and a cash reserve, with combined assets of $30.4 billion Congress and the Administration have called for changes to strengthen FHA.

FHA will announce major changes to ensure its long-term financial soundness. FHA is trying to balance three fundamental objectives: 1) financial soundness ” ensuring that its capital ratio returns above 2 percent, 2) fulfilling its mission of serving borrowers not adequately served by the private sector and 3) facilitating the recovery of the housing industry and the over-all economy.

NAR has crafted an issue brief outlining the changes to FHA. FHA will be transformed over the next few years. The changes outlined in the briefing document are the beginning of the process with additional changes expected during the tenure of FHA Commissioner Dave Stevens.

http://www.realtor.org/wps/wcm/connect/dd4ce500410d816592d4b208069f8e0c/government_affairs_fha_issue_brief_011510.pdf?MOD=AJPERES&CACHEID=

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Standardized Short Sale Process Will Benefit All Parties

by Bob Hunt

www.MyNvaHomes.com

www.RealtyTimes.com

Two years ago the National Association of Realtors ® formed a task force to address the vexing issue of short sales. A multitude of members had complained of lengthy and often incomprehensible processes that “ although they varied in detail from lender to lender “ all seemed to share the characteristics of being inefficient and irrational. Upon completing its studies the task force issued recommendations that the short sale process be standardized among lenders, that common forms be used, and that fixed time frames be adopted for various phases of the short sale process.

Fast forward to November 30, 2009 when the Treasury Department announced the Home Affordable Foreclosure Alternatives (HAFA), a program that features “ you guessed it “ standardized short sale procedures, common forms, and fixed time frames. The program is directed to lenders and servicers participating in the Home Affordable Modification Program (HAMP). It applies to non Freddie Mac or Fannie Mae loans. It covers liens on a borrower’s principal residence up to an amount of $729,750 (higher if the property is 2 “ 4 units).

HAFA is meant to help borrowers who either do not qualify for a HAMP loan modification or who have been unable to keep up their payments under such a plan. A major time-saving feature of the HAFA program is that the financial information already gathered in the loan modification application will be used to determine eligibility for the short sale program.

Prior to approving a borrower to participate in a HAFA short sale the servicer must determine the minimum acceptable net proceeds that the investor will accept. Each servicer must develop a written policy, consistent with investor guidelines, for making that determination. Then, once a borrower has been approved for the short sale program, the net requirement may not be increased for at least 120 days.

A borrower’s approval is expressed in a standardized Short Sale Agreement (SSA). The SSA must be good for at least 120 days. No foreclosure may take place while the agreement is in effect. The SSA requires that the property be listed and actively marketed with a “licensed real estate professional who is regularly doing business in the community where the property is located.”

Within three business days of an executed purchase agreement, the borrower is to submit a Request for Approval of Short Sale (RASS), which is also a standard form. Within ten days of receipt of a completed RASS, the servicer must indicate approval or disapproval. The approval cannot be contingent on a lowering of the real estate commission that had been agreed to. Also, the approval cannot require a closing in less than 45 days. Again, no foreclosure may take place during the period approved for closing.

One of the common hang-ups in short sales is the matter of junior liens. HAFA takes this into account, although perhaps not to a degree than junior lien holders might wish. The servicer may “authorize the settlement agent to allow up to an aggregate of $3,000 of the gross sale proceeds as payment(s) to subordinate mortgage/lien holder(s) in exchange for a lien release and full release of borrower liability.” Each lien holder may be paid up to 3% of their unpaid balance, but the aggregate of such payments may not exceed $3,000. They are paid up to 3% in order of their priority.

HAFA has financial incentives for all parties. The borrower receives a $1,500 relocation allowance, paid at closing. The servicer receives $1,000 for administrative costs. The investor will be paid one dollar for every three that had been paid to junior lien holders. If $3,000 had been paid to juniors, $1,000 would be paid to the investor.

The HAFA program will not apply to all loans, but it will cover a lot of them. Hopefully, it will bring a little more order and sanity to the process.

Published: January 26, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Washington Report:

Washington Report: FHA Tightening Standards

by Kenneth R. Harney

www.MyNvaHomes.com

www.RealtyTimes.com

FHA is tightening up its standards for home buyers – but the changes are not as tough as some analysts had feared – especially on downpayments.

FHA commissioner David Stevens outlined the agency’s new underwriting policies last week, including an increase in the “upfront” mortgage insurance premium charged all borrowers, and a decrease in the amount of financial inducements a home seller can provide a buyer.

The tightening of the rules come in the wake of findings by an independent auditor last Fall that FHA’s insurance fund capital reserves have fallen far below the congressionally-required minimums.

HUD Secretary Shaun Donovan promised in response that FHA would take steps early this year to begin building up its reserves with higher premium revenues and ratchet up its credit standards for some borrowers.

Under the new plan, which will take effect shortly, FHA applicants will be charged a higher entry fee on insurance: An upfront premium of two and a quarter percent (2.25%) of the loan amount, instead of the current one and three quarters (1.75%)percent premium.

On a $200,000 home purchase with a $193,000 loan amount, the new premium will add about $965 to an FHA borrower’s costs.

There will be no immediate increase to FHA’s current annual insurance premiums of zero point fifty five percent (0.55). But Stevens said the agency plans to ask Congress for a higher limit on annual premiums, which get tacked onto borrowers’ monthly mortgage bills.

Once FHA gets Congress’s okay, Stevens said he expects to boost the annual premiums and reduce the upfront premiums. That, in turn, will lower the cash borrowers need to bring to the table, and stretch out the higher premium charges over multiple years.

Stevens also announced that applicants with FICO credit scores below 580 will now have to make downpayments of at least 10 percent, up from three and a half percent currently.

That change shouldn’t have much of an impact, however, since most of the largest lenders offering FHA mortgages already require a minimum credit score of 620 for all applicants.

Now for the good news on downpayments: Though mortgage industry analysts had expected FHA to raise its minimum cash down requirement to five percent, Stevens said 3.5 percent will remain the standard.

On the other hand, Stevens also announced that the agency is lowering its “seller concessions” ceiling from six percent to three percent, effective immediately. Concessions include contributions at settlement from the seller to the buyer to help cover loan fees and closing costs. Critics say the concessions often get lumped onto the house price — thereby raising FHA’s loss exposure.

Published: January 25, 2010

by Kenneth R. Harney

www.MyNvaHomes.com

www.RealtyTimes.com

FHA is tightening up its standards for home buyers – but the changes are not as tough as some analysts had feared – especially on downpayments.

FHA commissioner David Stevens outlined the agency’s new underwriting policies last week, including an increase in the “upfront” mortgage insurance premium charged all borrowers, and a decrease in the amount of financial inducements a home seller can provide a buyer.

The tightening of the rules come in the wake of findings by an independent auditor last Fall that FHA’s insurance fund capital reserves have fallen far below the congressionally-required minimums.

HUD Secretary Shaun Donovan promised in response that FHA would take steps early this year to begin building up its reserves with higher premium revenues and ratchet up its credit standards for some borrowers.

Under the new plan, which will take effect shortly, FHA applicants will be charged a higher entry fee on insurance: An upfront premium of two and a quarter percent (2.25%) of the loan amount, instead of the current one and three quarters (1.75%)percent premium.

On a $200,000 home purchase with a $193,000 loan amount, the new premium will add about $965 to an FHA borrower’s costs.

There will be no immediate increase to FHA’s current annual insurance premiums of zero point fifty five percent (0.55). But Stevens said the agency plans to ask Congress for a higher limit on annual premiums, which get tacked onto borrowers’ monthly mortgage bills.

Once FHA gets Congress’s okay, Stevens said he expects to boost the annual premiums and reduce the upfront premiums. That, in turn, will lower the cash borrowers need to bring to the table, and stretch out the higher premium charges over multiple years.

Stevens also announced that applicants with FICO credit scores below 580 will now have to make downpayments of at least 10 percent, up from three and a half percent currently.

That change shouldn’t have much of an impact, however, since most of the largest lenders offering FHA mortgages already require a minimum credit score of 620 for all applicants.

Now for the good news on downpayments: Though mortgage industry analysts had expected FHA to raise its minimum cash down requirement to five percent, Stevens said 3.5 percent will remain the standard.

On the other hand, Stevens also announced that the agency is lowering its “seller concessions” ceiling from six percent to three percent, effective immediately. Concessions include contributions at settlement from the seller to the buyer to help cover loan fees and closing costs. Critics say the concessions often get lumped onto the house price — thereby raising FHA’s loss exposure.

Published: January 25, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

How to Repair Your Home Without Damaging Your Wallet

by Phoebe Chongchua

www.MyNvaHomes.com

Some homeowners have a long laundry list of to-do repairs and, interestingly enough, many of those items don’t get addressed until (or if at all) it’s time to sell the house. In hot real estate markets, repairs are sometimes not done before the sale. Remember bidding wars over properties that needed work? Well, today sellers are looking for the advantage that makes their home stand out. Even though housing inventory declined toward the end of last year, it’s expected to rise as more foreclosures tumble into the marketplace this year.

While fixing up a home to sell can be costly, there are some ways to reduce the damage to your wallet. Cheryl Reed from Angie’s List spoke to me about important repairs that shouldn’t be overlooked. They are: changing your furnace air filters regularly, fixing leaky faucets/toilets, repairing caulking issues in the bathroom and defective electrical outlets/wiring.

“Our experts in the heating ventilation air conditioning industry tell us that 60 percent of all their service calls start because it’s a dirty filter issue. If you have a dirty filter, it affects the efficiency of your furnace,” says Reed. She says that it’s a simple and easy repair that improves the air quality and saves you money.

“You can save about $100 a year if you just change those filters when you should.” She recommends checking your air filter every time you get your energy bill. “If it’s dirty and you can tell, you can see it; just switch it out. You can buy a number of air filters ranging from moderately good to really expensive and high efficiency, in terms of cleaning the air. You have a number of different options, depending on your budget,” says Reed. She also says, depending on health conditions of those living in the home, changing filters more frequently might be necessary. The second repair is annoying and easy to spot. “If you’ve got a leaky faucet or running toilet, that’s going to cost you,” says Reed. “If you don’t get it fixed you’re going to be paying more and more. It can also lead to mold damage. It can lead to a loss of your cabinetry”the flooring in your cabinetry can be rotted away and that can affect your floor underneath and the walls. So you can have a big issue if it’s not fixed soon,” says Reed.

If there are problems with your home when you begin to show it, buyers will spot them. Reed says, “People who come to your house to check out whether they’re going to buy it or not are looking really closely and they’re listening really closely too.” With plenty of housing inventory on the market, buyers are likely to move on if they feel the house needs a lot of repairs.

“You have to put forth your best impression. These small relatively inexpensive fixes are really important,” says Reed.

Dirty tiles and damaged caulking can send a message to buyers that the house may be in need of even bigger repairs. “You’re first going to have an aesthetic issue and second that’s an indication that you’ve got a problem that could lead to mold and nobody wants mold in their house anywhere at all”it will grow if you don’t have proper seals in your bathroom,” says Reed.

“Those are things that you can see every day”sometimes we get so used to seeing them that we forget about them,” says Reed. However, buyers don’t.

Reed offers this advice, “Pretend you’re going to try to buy your own home; what do you see that you wouldn’t tolerate?” She says it’s worth it to take the steps to fix the problems. Buyers don’t want to fix those problems any more than sellers do. Check for defective outlets. Electrical problems are not only irritating but also can be very hazardous. “An electrical fire can destroy your home,” says Reed.

Who should do the job? Of course, saving money is always key. Reed says some of these repairs might be suitable for a handyman but she cautions homeowners to be sure that the level of the repair matches the expertise of the person you hire.

“You’re going to pay more in the end if you don’t check out the person you hire to help you. Make sure that person has a good reputation and if it’s required for him or her to be licensed in your area, you really should [use] a licensed person, even if it’s more expensive,” says Reed. Reed says, you may pay more but you’ll get the job done right the first time.

Published: January 22, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Investor Report: Defaulted Mortgages

by Kenneth R. Harney

www.RealtyTimes.com

www.MyNvaHomes.com

Smart investors continue to prove that when it comes to troubled commercial real estate, it makes a lot of sense to buy defaulted mortgages from the bank, rather than wait for the bank holding the notes to foreclose.

Once you own the nonperforming notes, then you become the lender, you’re in the driver’s seat, and you can foreclose and take over the property yourself — often on unbeatable terms.

A San Francisco-based private equity investment group showed how that’s done late last month, when it acquired ten prime, cash-flowing apartment buildings in or near San Francisco for just fifty cents on the dollar.

Tribeca Companies, a privately-held investment group, acquired nine buildings in sought-after neighborhoods like Pacific Heights and the Van Ness corridor, plus another building in Burlingame -from international banking firm UBS, which provided the original financing on the properties for Lembi Group.

Until recently, Lembi was San Francisco’s largest apartment owner with a 300 building portfolio and 8,000 units.

Tribeca took over $62 million worth of nonperforming mortgage notes from UBS for an all-cash payment of $31 million. Immediately after closing, Tribeca filed for foreclosure against Lembi – effectively giving it control of the ten buildings.

A spokesman for Tribeca told Realty Times last week that the deal illustrates the company’s “opportunistic” strategy of acquiring high-quality assets in prime locations by targeting defaulted commercial notes that lenders are prepared to sell at deep discounts to face value.

Lembi Group, which defaulted on $300 million worth of loans during 2008, handed over 50 buildings securing these loans to UBS, which has since been attempting to dispose of them in package deals.

Ironically, Lembi’s strategy during the past decade had been opportunistic as well: It acquired dozens of buildings, persuaded or paid tenants to leave, then renovated units to produce higher rental revenues.

The problem with Lembi’s approach was that its purchases were highly leveraged –sometimes with loan to value ratios of 95 percent. UBS was its major financing partner.

When Lembi ran into financial difficulty, it reportedly stopped making payments , triggering its default problems with UBS.

A spokesman for Tribeca told Realty Times that the ten buildings have a 95 percent occupancy rate, and “are in great condition.” Though market analysts assume Tribeca will hold the buildings as rental investments, the spokesman said the long-term strategy has not yet been made public.

Whatever that strategy turns out to be, though, this much is certain: Anytime you can get prime, cash-flowing real estate in a magnet city like San Francisco for fifty cents on the dollar – you’ve done exceptionally well.

Published: January 8, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Generating Wealth by Understanding the Complexities of Bank REOs
by Peter L. Mosca www.RealtyTimes.com

www.MyNvaHomes.com
[Note: To follow is an excerpt of a radio show interview conducted by Peter L. Mosca, host of Income Property Investment Talk dot com, with Scott Griffith, President ERA Griffith Realty and co-founder of Rescue LLC, a real estate consulting firm that helps banks stabilize and develop a plan for the disposition of REO properties. Griffith details the ˜dos and don™ts™ for success and talks about his experiences over the years developing his REO business. To listen to the show archive or download an MP3, go to www.IncomePropertyInvestmentTalk.com/120909.]

 Mosca: Is right now an excellent opportunity to get into real estate?

Griffith: Yes, this is a time to be making an investment. Clearly the prices have reached a low point, not to say they won™t go lower but there certainly are many opportunities available at this time.

Mosca: Has anything changed since you were on the panel on Distressed Assets that I moderated at the NAR Conference in San Diego?

Griffith: What I™ve learned in the last month or so is that banks as sitting here in their last quarter of the year trying to evaluate whether they need to take write offs on their books with the REO properties, prior to the end of the year to change their balance sheets or if their going to sit on them. More and more banks wish to show some sense of stabilization or profitability and many are taking the position of keeping them on their books until after the first of the year. Even though we™re looking at three weeks left of the year, there are some opportunities that may still be right there for someone to grab if they are able to perform immediately, but there may also be a lot more activity after the first of the year as the banks say œOK its time to finally get these off our books this coming year.

Mosca: Some people say we™re going to get bombarded by commercial REO coming to the market and then other people say that is not going to happen. What do you think?

Griffith: The economists are quite split on it but there™s a lot of indication that there™s going to be a lot of loan renewals coming due this coming year, a huge percentage actually, and that those are going to trade a lot of REO property. At the same time the FDIC recently said that owners could renew commercial loans without going through a reappraisal and then telling the people that they need to bring money to the renewal process.

Mosca: Scott let me just back track a minute and go to the beginning level with this particular market and ask you to identify or define what an REO is versus a foreclosure. What is the difference between the two?

Griffith: A property in foreclosure is at the early stages of the financial institution or whoever is foreclosing taking it back. That is the process of foreclosure. At the final part where the title has passed to the person foreclosing, it becomes real estate owned and frankly what we™ve found in financial institutions is that they™re looked at two totally different ways. Once they are on their books they are looking to try to dispose of them as quickly as possible and they feel rewarded for getting them off their books. While they are in the foreclosure process, they are trying to get back the money that they have already loaned out and they are not as interested maybe in negotiating the price. Once they™ve agreed on a price, they want it off their books as quickly as possible to demonstrate they™re doing everything they can to get it off their books. We™ve even found that because banks typically use separate staffs for the two, the people who are working on the short sale process, if they™ve accepted the number of prices below what their lien was for, those people™s jobs are in jeopardy. The person, who gets it in REO, as long as they can get it off the books, is a hero. So they end up being more stable in their jobs. It™s a fascinating world.

Mosca: Is that why the process is so slow?

Griffith: Clearly, an organized bank is handling a lot of REO property. They have a specific methodology that they want to follow and they want everybody to follow. If they tell you what they are and if you choose to try to short cut it or your buyer wants to do it a slightly different way, they will reject them outright. They are bankers first and they™re trying to get rid of property second. They have processes they want to follow. There™s a second aspect of their decision process that relates to the value they believe the property is worth because of appraisals or what they™re carrying on their books. Just because you feel you have a grasp on the market, doesn™t mean that they™re going to agree with your market price even when you believe you™re right.

Mosca: Is it a good idea for brokers and agents to talk to the lending industry and start doing BPOs as a way to increase not only your exposure but eventually lead to securing some property listings?

Griffith: Yes, I agree with that. I think that to be able to start to get some of the REO business the banks and the financial institutions are going to look for leaders in the real estate community that they feel can demonstrate knowledge. The best way to do that would be to get in there and demonstrate your knowledge in the first area by showing how you establish value. Now BPOs are not a very lucrative business for REALTORS but it will lead you to be able to develop one, a relationship with that organization hopefully, and then secondly, maybe be able to help allow you to demonstrate some of your professional expertise. When it comes time you™ll be on the top of the list to be discussed for the possible sale of those properties.

Mosca: If you continue to do well with one particular institution, would it then lead to doing them for others?

Griffith: It™s a logical segway to be able to say, œ Here™s my resume. It™s like all businesses, its an ability to build a resume but you have to start somewhere and maybe the best place to start is demonstrating your knowledge through your ability to establish value through BPOs. The best way is to produce. Banks want to see regular reporting. They want to see the activity. Of course, they™d like to have results. Everyone wants results but being informative and keeping them informed is crucial to having you be front of mind and also demonstrating that your doing the work that you promised to do. They have systems for grading you and keeping track of exactly what you™re doing. Some will then take it to the next step and grade you as to your price, to the price that you listed and the timetable. There have been stories of people losing business because of one or two bad properties that just took forever. The professional who has a well-refined system in place is going to do the best. This is all about having good systems and good reporting and good follow up. Without those you™re going to get one chance and it™s much like restaurant business. There are many opportunities for other people. One bad meal can put you out of business. You have to be very careful.

Mosca: Systems, reporting and follow up. Is there anything on the market right now or are these internal systems that you develop on your own?

Griffith: There are industry providers out there but most experienced professionals have systems set up. The whole process that makes this work is communication. You need to talk to the people your working for and find out what they are looking for and how they want reporting. You have to refine your skills and the best way to refine your skills is from others and with others, and sharing. We all do better when we share information. For the professional looking for how to get into this market, there are a lot of opportunities for all aspects of the REO. Its not just the bank all of a sudden decides that they™re going to list the property. There™s managing the property, there™s stabilizing the property when the bank gets it back, there™s all sorts of other areas of opportunity, which open up as you get into this market. Bankers are truly bankers and they typically don™t have these. They have to hire all these services to get done. It gives the professional more areas to be able to meet face to face with the bank and represent them.

Mosca: So, ancillary work for banks and lending institutions is a way to increase business?

Griffith: Absolutely. The more services you can provide, whether you™re partnered with somebody or whether you™re going to do it yourself, the more marketable you™ll be for a new relationship with a bank or financial institution of this REO property because they have enough things to think about without having to think about all the minutia for every single property and every single property requires all sorts of management aspects.

Mosca: I™m guessing that if I™m an investor and I have those particular skills, this might be something that I can get into as well?

Griffith: Absolutely, it is the direction to go because for many in certain areas it™s a very challenging market. You™ve got to be looking at how many other options you can create. And again, don™t rule out the option of partnering. Somebody may be much more skilled at it but if you can agree that you™ll work together, why not create that coalition and work together.

Mosca: Scott a couple of times throughout the program I mentioned a company called Rescue LLC. I think at this particular time the way the conversation is flowing and what we™re talking about in terms of increasing or looking to increase your business or maybe setting up a side business, it might be a good idea for you to give us what I call a past, present, and future look about Rescue LLC. Why did you start it, where is it today, and what are you hoping to accomplish in the future with Rescue LLC?

Griffith: We are in Michigan and there was a recognition that the market was certainly going south fast with the economy. Me and a number of friends of mine who are leading developers and builders looked at the situation and realized we had a lot of information we could provide, and we could help out our friends who were bankers who were struggling with the amount of property they were going to get back. We thought that we ought to take advantage of the knowledge that we had and put together a consulting firm, which we could then offer them some services on helping to position their properties. The problem with an appraisal is that it gives you a flash of where the market was in comparison to other properties at a certain time point but it doesn™t say, œ How are you going to get out of this property? It just says what the value could or should be. We felt that there needed to be some more sophistication to the process of determining the value and the exit strategy for the property and typically the people we knew who were bankers were great at their job but weren™t necessarily good at that part.

Mosca: Are you reaching out to other states or regions? Is this something you plan on taking nationwide?

Griffith: What we™re finding is that nothing anymore is just local. We are now talking to other brokers throughout the country who might want to also link up and learn some of the information that we™ve learned and share their information and give some unity to the name so that when people go looking they can look up Rescue LLC and find a name that™s familiar with them. They may wish to learn how we set up the management arm for our business because the banks were seeking that, helping them understand how we set up a program to stabilize properties. They may want to also just to talk to us about our experience so far in actually getting in the door with banks and offering our services to them.

Mosca: So, it™s not just about the property sometimes. Is it?

Griffith: Exactly. We™ve found that we™ve had to stretch ourselves. Luckily by having a partnership of builders and developers we have the ability to have those people already at our fingertips that think that way. They were thinking that way before I had to learn to think that way. One of our bank presentations we™ve made to the Michigan Bank Association, and key statement was don™t do nothing. Bad grammatics but the reality of it is that just sitting on it isn™t going to get it done and having no plan to get rid of it is not going to get it done. You need to have a plan and that™s where the professionals we™ve become and others go in and give them a plan, give them something, a plan to put their hat on.

Mosca: If an investor came up to you and said, œ Hey Scott, you know I™m thinking REO. What would you say to that investor?

Griffith: The first thing you™re going to want to state to them right out front is they™re going to want to do homework. They™re going to have to be prepared to go do market research. I don™t care how they™re going to buy, whether they™re going to go to an auction, or whether they™re going to go into the local bank. They™re going to need to be ready to do homework and have a facility to do homework. That means they™re probably going to have to partner with some sort of professional who has access to real estate data and so forth so that they can make the investment that makes sense. Just because it™s REO doesn™t mean it™s going to be the right piece for you. You may want to change it or reposition it in the market and you may not be able to do that without knowing more about the financials of the market. Do homework and have resources available. It isn™t just a gift on a platter to you when you walk in.

Mosca: In other words you don™t have to assume what™s called inherent risk. You can actually do some due diligence ahead of time?

Griffith: The secret to any good investment is to take the risk out of it. The way to take the risk out of this one is to do the homework but you™re going to do it all yourself or you™re going to have to partner with someone who has the access to the information to reduce your risk.

Mosca: What do you say when hear the words ˜lowball offers?™

Griffith: Everybody has their definition and I™m sure we all know stories or heard a story about somebody who got this phenomenal deal but at the end of the day the banker is trying to realistically get rid of their property in a reasonable amount of time. They have an obligation to maximize the return for the corporation. It™s the corporate assets you™re playing with. To think that you can make a lowball offer and the bank will take it is totally a misnomer. In fact, many either won™t or can™t consider offers below a certain level that may have been established by an appraisal. We™ve been seeing banks actually ask for a second appraisal. So, you really need to get to as few conditions and as few contingencies as possible to make yours the best piece. Obviously at the end of the day, price is always trump. It™s about buying right but it doesn™t mean you have to buy at the lowest point.

Mosca: What is your golden nugget?

Griffith: The whole concept of the REO is a golden nugget for the investor. The investor needs to be in a position to be able to perform on it, and that may be to get you in a liquid position, to have the cash and be able to perform and be a credible buyer.

Published: January 7, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Mortgage Rates Start the New Year Slightly Lower Than They Ended the Old Year

www.RealtyTimes.com

www.MyNvaHomes.com

McLean, VA “ Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.09 percent with an average 0.7 point for the week ending January 7, 2009, down from last week when it averaged 5.14 percent. Last year at this time, the 30-year FRM averaged 5.01 percent.

The 15-year FRM this week averaged 4.50 percent with an average 0.7 point, down from last week when it averaged 4.54 percent. A year ago at this time, the 15-year FRM averaged 4.62 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.44 percent this week, with an average 0.6 point, unchanged from last week when it averaged 4.44 percent. A year ago, the 5-year ARM averaged 5.49 percent.

The 1-year Treasury-indexed ARM averaged 4.31 percent this week with an average 0.6 point, down from last week when it averaged 4.33 percent. At this time last year, the 1-year ARM averaged 4.95 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.) “Mortgage rates eased slightly this week after rising consecutively through December,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Current interest rates for fixed-rate mortgages are just about at their annual average for 2009, while ARM rates are considerably below their averages for last year.”

“As the economy strengthens further and the Federal Reserve (Fed) decides to raise its overnight target rate, ARM rates will follow suit because they are typically tied to shorter-term interest rates. However, the federal funds futures market does not anticipate any Fed action until the second half of 2010.”

Published: January 8, 2010

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

December 11, 2009

 

Timing is everything¦

 

I am often asked what is going to happen with interest rates and my typical response, œIf I knew the answer to that question, I would own my own island in the Caribbean and I would no longer be in the Mortgage lending business.

 

Typically that answer is not accurate because no one has a crystal ball as to what might happen in the economy and all the other things that affect mortgage rates.   Today, however, we do have some insight because of some actions that were taken by the Federal Government to reduce mortgage interest rates in the US.

 

Many people think that interest rates are tied to the rise and fall of the stock market or more often that rates are tied to the Federal Funds Rate which closely impacts the prime lending rate in this country.   This is not the case.   Interest rates are tied to the bond market which invests in mortgage back securities, and very simply, if the price of bonds goes up, the interest rates on mortgages will come down.   It is simply economics, the higher demand for bonds that invest into mortgage back securities, the lower the yield for return.

 

So why can we now predict something that we have been unable to predict before?  

 

Back when the stock market began its decline, many of the investors who pulled their money out of the stock market did not flood the bond market as they typically would and we did not see a decrease in mortgage interest rates.   The Federal Government was in the middle of trying to shore up the housing market and what they found was that all of the huge investors were taking money out of the stock market and investing into treasury bonds because they were not sure if mortgage back securities were a safe investment.  

 

The Federal Government made the decision to invest into mortgage back securities and did so in a big way.   This strategy worked, other investors begin to pull out of the treasury bonds and join the Federal government in buying bonds that invested into mortgage back securities.   As the demand increased, we began to see interest rates come down.   When all of this started, interest rates were around 6.5% for 30 year mortgages.   We have seen rates drop all the way down to 5% or less over the past year.   The Federal government now needs to restructure all of its debt it has accumulated over the past two years, so they have announced that they will stop investing into mortgage back securities by the end of March 2010.   This single activity will reduce the demand for bonds, thus lowering the price of bonds which will drive up the yield and alas we will begin to see interest rates go up.

       

This may be the last, best time to buy or refinance for many years to come.   Combine these low rates with the homebuyer incentive that ends in April and the fact that home prices seem to have stabilized and are poised to increase “ we have the triple play in real estate.  

 

If you have an adjustable rate mortgage or a current interest rate of over 5.5% – you should immediately evaluate your opportunity to refinance. (For many, the current value of their home does not permit them to refinance “ if your original 1^st trust was below $417,000, you still may be able to refinance despite the current value of your property).  

 

On the other hand, if you have been thinking about buying your first home or moving up “ don™t wait for the typical summer buying market “ do it now!   Take steps before interest rates go up; tax incentives disappear and before prices go any higher on real estate.  

 Doug EngerSenior Mortgage ConsultantWells Fargo Home MortgageM8604-021                                                                                       12701 Fair Lakes CircleFairfax, VA   22033(703) 502-1357 Tel(301) 237-2400 Cell1-866-622-0792 Faxengerteam@wellsfargo.comwww.dougenger.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Everyone in life wants to believe that they can do things better than the next person. Whether true or not, I shared this belief and to some extent, still do. However, at some point, you must decide what you Want to be good at. This is why we hire people to help us. Tiger Woods has 4 coaches, lawyers and doctors™ hardly ever answer the phone or do clerical work, and I would be willing to bet that Bill Gates does not write code for Microsoft. The business of Real Estate is a perfect example of this notion.

Lead with revenue and hold back expenses is a key principle for my company at Keller Williams and is a key principle to maximize profits through unnecessary expenses. To leverage oneself and ˜hand over™ responsibilities and/or duties can be tough for a personality that demands excellence. There is a point of diminishing returns on real estate duties and I would like to share with you a perfect example.

Here is the photographer that I have been using for quite some time now.

www.duytranphotography.com/

http://www.flickr.com/photos/duytranhomephotos/show

(For those that are hyper click sensitive, I have included the direct link) I pride myself in my photo taking abilities. Although I might feel like I am doing my clients a great service by purchasing a nice camera, taking classes in photography and looking for that great angle to show the home. As you can probably tell, I can™t compete with this quality.

Whether it is hiring some extra help around the house to spend more quality time with the kids or having œJiffy Lube service your vehicle, there are specialists that can help you keep your focus on what you do best. A am a Realtor, a marketing specialist, a contract and negotiation expert among other things, but I will most certainly never buy a $8k camera and am not planning on making a career change. My responsibilities™ and duties to my business and my clients made me realize that I can only do so many things at an expert level. Pick a few things you are really good at in life and delegate the rest to people that are willing and able.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Here is an EXCELLENT article that I found from VAR. These are some of the principles that are in “The Millionaire Real Estate Agent” by Gary Keller and are found in various training sessions from Keller Williams. Click the link below to find out more about KW and the Acrobat link is the article regarding the title. Hope you enjoy. www.YouDriveTheSuccess.com/

https://share.acrobat.com/adc/document.do?docid=baa0e127-c8dd-4162-b4e6-d9a0fd20ec46

Thomas Merical–CEO Keller Williams Fairfax Gateway

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

BREAKING NEWS: President Obama Signs Bill Expanding Homebuyer Tax Credit
11/06/2009 By: Carrie Bay
  President Barack Obama inked his approval of the bill extending and expanding the homebuyer tax credit incentive Friday morning.

The housing tax break, which was initially set to expire at the end of this month, is now available to buyers who sign a contract by April 30, 2010, and close by June 30.

The credit amount is based on 10 percent of the home™s purchase price. The maximum available to first-time buyers is $8,000. Other buyers, who™ve lived in their current residence for at least five years but want to relocate to a new primary residence can receive a credit of up to $6,500 “ the incentive for these so-called œstep-up buyers will begin on December 1 of this year.
The income limits for both first-timers and step-up buyers is $125,000 for individuals and $225,000 for couples “ up significantly from the current first-time buyer thresholds of $75,000 per individual and $150,000 per couple.

The tax break is only available on primary residences priced at $800,000 or less. Vacation or investment properties are not eligible. Beneficiaries who sell the home or stop using it as their primary residence within three years would be required to repay the credit.

œThe rebound in the housing market was one of the big factors that contributed to the growth of the economy last quarter, President Obama said at a national address in the White House Rose Garden Friday. œWe want to give even more families the chance to own their own home.

The expansion of the homebuyer tax benefit received widespread support from lawmakers, despite concerns over what it might cost the government in lost taxes.

The measure passed unanimously in the Senate earlier this week and cleared the House with a vote of 403 to 12.

President Obama assured the American people this morning that the homebuyer tax credit measure, which was attached to a larger bill extending unemployment benefits, would not increase the national deficit.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Market Conditions

www.RealtyTimes.com

www.MyNvaHomes.com

Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors ®.

Existing-home sales “ including single-family, townhomes, condominiums and co-ops “ jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.09 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007.

Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. œMuch of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home, he said. œWe are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.

Regionally, existing-home sales in the Northeast increased 4.4 percent to an annual level of 950,000 in September, and are 11.8 percent higher than September 2008. The median price in the Northeast was $234,700, down 7.0 percent from a year ago.

Existing-home sales in the Midwest jumped 9.6 percent in September to a pace of 1.25 million and are 7.8 percent above a year ago. The median price in the Midwest was $147,600, which is 1.0 percent below September 2008.

In the South, existing-home sales rose 9.0 percent to an annual level of 2.06 million in September and are 10.8 percent higher than September 2008. The median price in the South was $153,500, down 7.6 percent from a year ago.

Existing-home sales in the West surged 13.0 percent to an annual rate of 1.30 million in September and are 5.7 percent above a year ago. The median price in the West was $219,000, which is 15.0 percent below September 2008.

For more information on your local market, visit Local Market Conditions.

Published: October 27, 2009

Use of this article without permission is a violation of federal copyright laws.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Market Conditions

www.RealtyTimes.com

www.MyNvaHomes.com

Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors ®.

Existing-home sales “ including single-family, townhomes, condominiums and co-ops “ jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.09 million in August, and are 9.2 percent higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007.

Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. œMuch of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home, he said. œWe are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.

Regionally, existing-home sales in the Northeast increased 4.4 percent to an annual level of 950,000 in September, and are 11.8 percent higher than September 2008. The median price in the Northeast was $234,700, down 7.0 percent from a year ago.

Existing-home sales in the Midwest jumped 9.6 percent in September to a pace of 1.25 million and are 7.8 percent above a year ago. The median price in the Midwest was $147,600, which is 1.0 percent below September 2008.

In the South, existing-home sales rose 9.0 percent to an annual level of 2.06 million in September and are 10.8 percent higher than September 2008. The median price in the South was $153,500, down 7.6 percent from a year ago.

Existing-home sales in the West surged 13.0 percent to an annual rate of 1.30 million in September and are 5.7 percent above a year ago. The median price in the West was $219,000, which is 15.0 percent below September 2008.

For more information on your local market, visit Local Market Conditions.

Published: October 27, 2009

Use of this article without permission is a violation of federal copyright laws.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Investor Report: Investment Buying Tips

by Kenneth R. Harney

www.MyNvaHomes.com

Foreclosures and bank REOs are pulling a new wave of novice investors into the market, some of whom “are just plain clueless, to put it bluntly,” says Robert Cain, a long-time rental market and real estate management specialist based near Tucson, Arizona.

“They see the price and they way, wow! I can buy that house and turn it into a rental,” says Cain, who lectures around the country and online about investing intelligently.

“But they don’t understand the local market, they don’t understand landlording, and don’t even necessarily visit the property,” Cain said in an interview last week with Realty Times.

For example, a property manager in Tennessee called Cain for advice recently. The manager had a simple question: “Should I fire my client?” who lives in California and purchased rental real estate 3,000 miles away in Tennessee — sight unseen because the low price made it sound like a steal.

But the property had a long list of defects requiring costly repairs, and it was slow to rent – causing the absentee owner-investor to blame the property manager for the cash drain.

“We see it constantly,” said Cain. “New investors think it’s easy. They buy on emotion, on low pricing, rather than buying with a disciplined plan.

What are some of the key rules for freshman class investors? Here are a few of Cains’ that have served him well since the early 1980s:

Number one: Due diligence is never optional. You’ve got to understand the local market – and that includes not just where prices are headed, but specific market demand for rental real estate in this price segment, and even the local government’s plans for the area where you’re thinking of buying.

Number two: Buy with a written plan – that’s right, just like the large professional investors use, with an entry strategy and an exit strategy. How long are you going to hold onto the property, how much will it earn you during your period of holding?

And what’s the endgame – a sale to another investor? Conversion to condos? Tear it down and build something that’s closer to the underlying real estate’s highest and best use?

“Write it all down,” says Cain. That way you can analyze it better.

Number three: Calculate the actual costs of the property in advance – not just the bargain basement price, but how much you’ll need to fix it and feed it – the management costs, rental commissions, vacancy costs, taxes, to name just a few.

“If you don’t know these things up front,” says Cain, “you are flying blind. And there are no good surprises in real estate.”

Published: October 23, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

In The Millionaire Real Estate Agent, we declared you could be just three exceptional hires away from having the organization of a Millionaire Real Estate Agent. That™s still absolutely true. However, our ongoing research for both MREA and SHIFT has given us new insight into how these key positions evolve. Some of you got a sneak peak at Mega Camp 2009. For the rest, here™s a quick look at hiring and compensating a Showing Assistant.

Leverage is ultimately about focus. You hire talent to keep you focused on your most dollar-productive activities and they focus on everything else. After entrusting your admin and marketing chores to another person, you look for help on the buyer sales side of the business. Successfully showing homes can be extremely time intensive and help here should keep you focused on leads and listings. So who do you hire?

In the past, research pointed us to a licensed buyer specialist paid on a 50/50 commission split. Today, some successful agents are first hiring an unlicensed Showing Assistant to keep their costs of sale low and their productivity high.

A Showing Assistant can literally jump into the driver™s seat with your buyers while keeping you in the driver™s seat when it comes to converting buyer leads, getting signed agreements, identifying wants and needs and eventually writing and negotiating contracts. A good one should be able to successfully show homes to around three to four buyers a month while earning bonuses based on 25 percent of each deal. Based on a $5,000 average commission, a good Showing Assistant could earn $60,000 a year. This is a terrific opportunity for someone. Better yet, you get to stay focused and 75 percent of the buy-side income stays on your side of the ledger.

You are still looking for someone who has the ability to grow into your Lead Buyer Specialist. So when you have someone with the ambition and proven ability to succeed with a high volume of buyers over time, your Showing Assistant earns the right to be promoted to a licensed Buyer Specialist. Your Buyer Specialist would then handle buyers from the appointment to closing and now earn 50 percent of the commissions. Again, a good one should be able to handle three to four buyer sales a month without burning out.

Burnout is a key word. Once you have identified a great Buyer Specialist, you don™t want to lose them! When they burn out and walk out, guess who gets their job? You do. And you™ve already got a job.

When your business is generating enough leads on a consistent basis to push a great Buyer Specialist past their ability to successful manage them all, the Showing Assistant concept reenters the picture. Now your Buyer Specialist has the opportunity to hire a Showing Assistant of their own. The Showing Assistant is still paid on a 25 percent bonus; however, that money comes out of the Lead Buyer Specialist™s half of each commission. Effectively, you continue to earn 50 percent of each buyer transaction, while the Buyer Specialist earns 25 percent and the Showing Assistant earns the final 25 percent as a bonus. Any buyer transactions your Buyer Specialist closes without the help of a Showing Assistant would still be on a 50/50 split.

Now your Buyer Specialist might successfully help four buyers on their own and another four with the help of a Showing Assistant. That™s now eight closed buy-side transactions each month. And with an average commission of $5,000, your Buyer Specialist has the ability to gross as much as $180,000 a year while just personally showing three or four buyers a month!

Showing Assistants may come and go”each auditioning for a shot at being your Lead Buyer Specialist. But once you find one, hiring and managing Showing Assistants moves from your plate to theirs. You have found your leader for working with buyers. Any additional help needed to keep your buyer transactions on track becomes their issue and opportunity.

Showing Assistants can save you money on the frontend, reduce turnover on the backend, all the while providing the best possible service to your buyers.

Click here for a video highlighting The Organizational Model and MREA.

(with Jay Papasan)

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

10 LOW OR NO-COST STRATEGIES TO ATTRACT MORE BUYERS AND MOTIVATE SELLERSINCLUDING HOW TO CREATE BUYER URGENCY AND HELP BUYERS OVERCOME FEAR AND RELUCTANCE IN TODAY’S MARKET

Date: October 15, 2009 Time: Thursday 10:00am Location: 12700 Fair Lakes Circle #120 Fairfax, VA 22033
Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Unleash your productivity power through the daily discipline of lead generation Success begins with the Power of One, a precise focus on what matters most for your business “ lead generation. This course teaches you how to close at least 36 transactions in 12 months by developing and maintaining a habit of 3 hours a day of lead generation. Lead Generation 36:12:3 builds on the principles and practices of KWU™s foundational course, CAMP 4:4:3, and is specifically designed for someone in the growth stage of their career – closing at least 16 transactions per year.
Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Seven Ways to Attract First Time Home Buyers Today

Published

by

Jay Papasan, VP of Publishing and Executive Editor

on September 18, 2009

 

So with the clock ticking on the 2009 Home Buyer Tax Credit (which expires at midnight on November 30), how can you attract your unfair share of first time homebuyers? Here are a few ideas that can add a few closings to your list of things to be grateful for on Thanksgiving Day.

1. Create Urgency. In your marketing and prospecting, make sure potential buyers know there is still time and that they need to get moving today!

œMs. Buyer, 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. That leaves only a handful of weekends to get you preapproved 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¦.

Remember, they have 8,000 reasons to get moving.

2. Hold a First-Time Buyer Seminar. Work with other agents and your vendor network to make the presentation happen. The goal is to get face-to-face with potential buyers fast. You can host it anywhere”a library, community hall, school, place of worship or you can even turn an open house into a œFirst Time Homebuyer Tax Credit Info Center.

3. Exchange E-books and Books for Appointments. Use a special e-newsletter to your sphere, a Facebook or Twitter post or a Craig™s List ad to offer free copy of our e-book œ$8,000 Closer to Home or the book Your First Home in exchange for a free, no obligation consultation.

4. Target Your Buyers. Take advantage of our First Time Homebuyer Surveys to target a select audience for your offers. For example, the KW survey indicates that 51% of those buying a first home with the tax credit are aged 25 to 30 and fully 46% are married. A quick look on Facebook tells me there are more than 31,000 Austinites between 25 and 30 years old who are engaged or married. How about a Facebook ad with the headline œThere™s still time to claim your $8,000 Wedding Gift! Offer the book as a hook for a free consultation.

It™s as easy as clicking on the advertising link on the bottom of your Facebook homepage and just follow the queues.

5. Trumpet the Opportunity. Average home prices have fallen back to Earth. Mortgage interest rates are at historic lows. Homes today are at their most affordable levels in terms of the monthly payments since the 1970s. Toss in the $8,000 tax credit and the door to home ownership has been kicked off its hinges. Does your sphere know this or have they been reading someone else™s headlines? Tell them. Our monthly This Month in Real Estate videos will back you up.

6. Know the Facts. Your potential buyers will have lots of questions. Share the First-Time Homebuyer Video and the one-page fact sheet to answer their questions and get them on the path to home ownership.

7. Create an Action Plan Today. To earn your unfair share of first-time home buyers before the deadline, put a plan of action in writing. It™s as simple as picking one or two strategies you can implement in the coming week and then blocking time on your calendar to make them happen.

My wife, Wendy, and I still own our first home, a small bungalow in Central Austin. About two weeks ago our renters contacted us and said they wanted to buy. Wendy guided them through the process and just this week they made an offer on a new construction short sale marked down about $60,000. In the end, they didn™t qualify for the tax credit but the deals to be had were too much to pass up!

So don™t let your buyers (or yourself) think it™s too late. It™s not. Act today and you can still have a full plate of closings come Thanksgiving weekend.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Washington Report: Tax Credit Changes

by Kenneth R. Harney

RealtyTimes

www.MyNvaHomes.com

The first major change to the $8,000 home buyers tax credit began moving through Congress last week, giving hope to real estate and building groups pushing for extension of the entire program before it expires Nov. 30.

House Ways and Means Committee chairman, Congressman Charles Rangel, a New York Democrat, combined several smaller bills into the œService Members Home Ownership Act of 2009 late last week, with a floor vote expected this week.

The bill is intended to correct a flaw in the original tax credit legislation: By requiring buyers to occupy and own their first home for 36 months to fully qualify for the credit, the program creates serious problems when military, Foreign Service and intelligence agency personnel are transferred overseas.

During their absence, they are not occupants of their houses, and sometimes have to rent them out or sell. Any of these events make them ineligible to retain the $8,000 credit under current law. Ineligible buyers must then repay the credit to the IRS.

Oregon Congressman Earl Blumenauer, sponsor of one of the bills consolidated into Rangel’s, said œit is absurd that thousands of Americans serving our country, away from friends and family … must choose between their service work and home ownership.

The Ways and Means committee’s bill would waive the repayment requirement when a service member must sell a home within the 36 month period because of a transfer to a new duty station or overseas, and would count service-related absences toward the 36 month requirement.

Another provision in the bill would extend the $8,000 credit for another year for personnel who may have missed out on claiming the credit because they thought they wouldn’t qualify due to an overseas posting.

The credit for these individuals would be extended to November 30, 2010 from November 30, 2009, provided the served outside the U.S. for at least 90 days during calendar year 2009.

The bill, which has bipartisan support, could be sent to the Senate for action as early as next week, Congressional sources told Realty Times.

More important for the housing market overall, however, is the precedent set by the bill’s extension of the credit for an extra year. It’s not a far leap from that position to a general extension of the entire $8,000 credit program to the same date.

The National Association of Realtors, National Association of Home Builders and the Mortgage Bankers Association jointly sponsored an ad campaign last week aimed at convincing Congress to give the credit program another year.

Realty Times will keep you on top of this fast-moving issue as it develops.

Published: September 21, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Real Estate Investment 101

by Broderick Perkins

RealtyTimes

www.MyNvaHomes.com

It could be a good time to invest in real estate, given the abundance of foreclosures and other distressed properties with reduced prices.

It could also be a bad time to invest in real estate, if you don’t know what you are doing.

There’s the rub.

“It’s a good time to invest, but it is difficult. Now when you go out to invest you are competing with a dozen offers. The investors are back,” says Chuck Cryder, the broker for Century 21 A Property Shoppe in Salinas, CA.

Just like buying a home to live in, taking the real estate investment plunge requires taking stock of your financial goals, planning and lifestyle before taking the plunge.

Pretty much like buying any property.

If you’ve got the time, the money and the lifestyle that lends itself to managing a real estate investment, you are just about half way there.

However, both halves are pretty big halves.

The National Real Estate Investors Association says you’ve still got a lot of work to do.

Here’s how much.

¢ Buy your own home first. The general rule of thumb is that buying your own home will not only put a roof over your head, but also background you in the full experience of buying and owning property — financials, market conditions, maintenance and real estate professionals you’ll need along the way.

What’s more, your first home could later become your first investment property, a property in a market with which you are familiar.

“You could maintain your current residence as a rental and move up into a larger home or better location yourself. This keeps the basis on your original property intact, but gives you an opportunity to move should your life dictate,” says Kim DiBenedetto, president of the Monterey County Association of Realtors in Monterey, CA.

There is one exception to the buy-your-own-home-first rule says Cryder.

“If you live with Mom or the cost of your rental housing is low, stay there and purchase investment properties first. If you can rent way below market value, I wouldn’t disturb that,” said Cryder, who has been an investor since 1968, when he purchased his first property.

However, in today’s market, an existing stake in a home can have a down side.

“You will be required to put more money down, most likely a minimum of 25 percent and also have several months in reserves. If you are upgrading from your current residence, your lender will require a minimum of 20 percent equity in your current residence before they will loan to you for another property,” said DiBenedetto, also an agent with Coldwell Banker Del Monte Realty in Carmel.

¢ Go back to school. Turn to the Internet, reputable books, successful investment groups, college and university level courses, even your state’s real estate license program. You don’t have to actually get a license, but you can become just as educated as a licensed agent. Individual real estate investors, salespeople and others who you’ve met on the way to investing are also valuable educational resources.

¢ Get professional help. The same way you find any competent, trustworthy and honest professional is the same way to look for a mentor, investment partner with prior knowledge or investment group. Seek referrals from friends, family, professionals with whom you already conduct business, co-workers and others you trust who’ve had a satisfactory, successful real estate investing experience.

“Now, more than ever, you need the experience of a competent realtor and lender to guide you through the process,” said DiBenedetto.

¢ Learn your investment market. One market’s bubble could be one investor’s boom and another investor’s bust. A home in one market could give you vacation rental income in a half year sufficient to cover the cost of principal, interest, taxes, insurance, home owner association dues, upkeep and other costs, but still not appreciate. Another home in another market may not bring you sufficient rent in a year’s time to cover the cost of owning the property, but might appreciate more than enough to make up for your carrying costs over the long term.

The variables are endless and you’ll need to measure your capacity for risk against market conditions.

¢ Finally, while some experts say you’ll also need to develop an exit strategy in terms of unloading properties when they are no longer viable investments, Cryder says if you buy right and stick it out over the loan haul you won’t need an exist strategy.

“When you’ve got the goose that lays the golden egg, be satisfied with the golden egg,” he says.

Published: September 24, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

More Biz in a Tough Market: The One Question More Realtors Need to Ask

by Brian Hilliard

Realty Times

www.MyNvaHomes.com

Brian raises an interesting question that most Realtors aren’t asking when it comes to getting more business in today’s tough market.

With the market being as tough as it is, I’m often asked by Agents what they can do to get more business right away. And while I usually don’t like to answer a question with a question, I think in this case, a question is exactly what the Doctor ordered.

Here it is: Of all the people you’ve talked to this week, how many have you made feel like they should give you their business? In other words, a lot of times we can be so busy talking about what we’ve done, and are going to do for people, that we lose track of first creating an environment where this prospect (or Referral Partner) actually wants to work with us, or pass referrals in our direction. And when you think about it, that makes sense.

Because make no mistake about it: There are plenty of choices out there for people looking to buy a home. And if we accept the fact that you’re not the only Agent this person is talking to, then getting her to feel like she wants to work with you is absolutely crucial to closing the sale.

I’m talking about things like:

• Does she feel comfortable with your expertise in the area?
• Is she confident that you’ll do what you said you do?
• Does she feel “listened to”, even though she might be asking “stupid” questions?
• How confident is she that you’ll take care of her even after the sale?

All of this comes together to create a general “feel,” or “vibe” someone has about working with you. And the more positive you can make that initial feeling, the more likely you are to close the deal.

So what can you do to generate the right “feel”? Well, you’ll first want to make sure that you always “Do What You Said You Would Do.” That means sending out an email, returning phone calls in a timely fashion and showing up to meetings on time. A lot of times we can be so busy doing so many other things, that some of the “little stuff” can fall through the cracks.

And while that’s fine every once in awhile with people who know you, it’s an absolute killer during the introductory stages with a potential client.

I personally keep a small notepad on me at all times, and jot down little follow up items I need to take care of when I get back to the office. Things like, “send fax to Steve” or “email document to Sandy” all make the list.

That way when I get back to the office, I’ve got everything I need in one place (a small spiral notebook), and don’t have to worry about chasing around a bunch of sticky notes, or worse yet, letting something slip through the cracks.

Secondly, go out of your way to position yourself as a problem solver. In other words, if someone says they’re interviewing several Realtorsâ„¢, and she’d like to talk to you about the possibility of working together, go out of your way to understand her situation and add value where you can.

As an example, instead of just going to the house and answering question after question about your credentials, have a few of your own that get at their situation and what they’re trying to do. Questions like:

• What made you decide to move,
• What do you like about this house that you’d like to see in your next home, and
• On a scale of 1-10, how important are the following areas in your next home: Proximity to work, size of yard, quality of school systems, and the amount of work you’ll have to do on it after you buy.

All of these are things that other Agents might not be asking, and shows the prospect that you’re already thinking ahead. What you really want is the prospect to think, “Wow! I never thought about that before. If Sally is already working this hard for us now “ without even having a contract “ then imagine what she’ll do when she’s actually putting her mind to it.” And they’ll think that not because you dazzled them with all of your credentials, but because you created an environment where they felt comfortable in trusting you with their largest personal asset. Which obviously means more business for you.

You’ll also want to take the time to listen to their situation “ even if you think you’ve “heard it before”.

A lot of times we’ll be in such a hurry to show prospects how smart we are, that we forget to take a breath and actually let them get the words out on what they potentially need or want from an Agent.

However, by taking the time to listen to their situation, you’re showing that you really do understand where they’re coming from, and are in the best position to help them move forward. (Get it? “Move” forward?) Anyway, if you’d like some more ideas on how to get more business in today’s tough market, just email info@agitoconsulting.com (Subject: Today’s Tough Market), along with your name and zip code, and we’ll be sure to send out our free report right away.

Published: September 24, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Investor Report: IRS Changes Policy

by Kenneth R. Harney

RealtyTimes

www.MyNvaHomes.com

Commercial and investment property owners who are facing problems refinancing mortgages because of credit market conditions and declining lease revenues may have just gotten some important help from the IRS.

In a policy change outlined last week, the IRS said it is aware that the global capital squeeze is hurting investors who own income real estate and are finding it difficult to stay current on loan payments.

To help ease the burden, the IRS said it would relax current tax guidelines on commercial mortgage bond securitizations to allow more modifications of loan terms.

Commercial real estate, including multifamily apartment projects, has been struggling for the past year.

According to the Mortgage Bankers Association, more building owners are falling behind on payments and seeing property valuations decline as the result of the recession. Between the second and third quarters of this year, the delinquency rate on loans held in commercial mortgage backed securities more than doubled, from 1.9 percent to 3.9 percent.

In its policy change, the IRS noted its tax rules governing commercial property bonds allow for certain levels of loan modifications within loan pools in cases of financial distress and imminent default by borrowers. These modifications include interest rate reductions, extensions of loan terms, and forgiveness of principal debt.

But because IRS’s technical rules clamp certain limits on the extent of modifications in a given loan pool, one or more “significant” modifications can terminate the special tax benefits that are crucial ingredients in commercial securitizations.

For certain types of bonds, there is even a 100 percent tax on all net income that is derived from “prohibited transactions.”

To permit greater numbers of modifications to occur without triggering prohibited transactions penalties, the IRS said it will lighten up on its rules and not challenge commercial mortgage bonds’ tax status in some cases where there is a significant risk of default by borrowers.

Though the IRS’s approach is intended to open the door to more modifications for investment property owners in need of relief, mortgage servicing experts were cautious in their initial reactions last week. Jan Sternin, senior vice president of the Mortgage Bankers Association for commercial financing, said that because of the complexity of commercial bond structures, “it will take some time for servicers to determine how much latitude they have to implement the new IRS rules.”

Bottom line for income property owners facing loan problems: Get in touch with your mortgage servicer sooner rather than later. Do not assume that a loan modification or refi is out of the question.

In fact, there may be more room for negotiations than ever before.

Published: September 18, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Market Conditions

RealtyTimes

www.MyNvaHomes.com

Freddie Mac’s reports that increases in sales of new and existing homes over successive months, and favorable reports on home prices during the second quarter reinforces the message that housing markets are stabilizing.

These latest developments signal a shift in the risks to the economy.

A growing threat to the economic outlook now comes not from housing but from the weak labor market, as the housing recovery and consumer spending cannot be sustained without growth of jobs and incomes.

The employment report for August underscored the risks, as the unemployment rate jumped to 9.7 percent, the highest in more than 26 years, and the economy continued to shed jobs for the 20th straight month, with nonfarm payrolls down 216,000.

Nevertheless, the weak labor market does not damp the prospects for a gradual economic recovery over the remainder of this year, followed by a return to trend growth during 2010.

Published: September 15, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Federal Hiring Boom Would Benefit D.C. AreaQuicker Rebound Expected With More Jobs, Home Sales and Office Leases

By V. Dion Haynes

Washington Post Staff Writer
Tuesday, September 8, 2009

If projections bear out that the federal government will hire up to 120,000 people for jobs in the region over the next few years, the Washington area economy could be on its way to a rebound faster than most of the nation. Such a hiring boom would have widespread benefits, economists who study the region’s employment and housing patterns said. It could reduce the region’s unemployment rate, now at 6.2 percent, if jobless people here are hired, and it could revive stagnant home sales if people outside the area are hired. Moreover, as agencies expand to accommodate more workers, they could opt to lease space, boosting the moribund commercial office market. Partnership for Public Service, a nonprofit that helps find candidates for federal jobs, released a report last week that listed projected hires for hundreds of agencies between now and 2012. In total, the government is expected to hire 600,000 people, including 19,071 nurses at the Department of Veterans Affairs, 9,800 Border Patrol agents, 3,774 criminal investigators for the Labor Department, 6,282 contract representatives at the Treasury Department, and 3,500 claims assistants and examiners at the Social Security Administration. The report, called “Where the Jobs Are,” focuses on 273,000 “critical needs” positions that are necessary for the operation of the agencies — 45,000 of which would be located in the Washington area. Federal spending represents 33 percent of the region’s economy, and a surge in hiring “is important for the economic foundation of this area,” said Max Stier, president and chief executive of the partnership.  The hiring is intended to replace retiring employees and fill positions created as agencies expand to oversee new initiatives, such as economic stimulus programs. Even before the report was published, some experts were projecting that employment in the region would pick up next year, with net job losses becoming net job gains. By the end of the year, the area is expected to experience a net loss of 21,000 jobs, said John McClain, senior fellow at the Center for Regional Analysis at George Mason University. But in the next few years, McClain added, the region is expected to see net gains in jobs: 23,900 in 2010; 34,900 in 2011; 42,000 in 2012; 47,600 in 2013; and 53,300 in 2014. “We will recover somewhat in 2010,” McClain said, adding that his forecast does not take into account the dramatic hiring projected by the report. “In 2012 and ’13, we’re back to our long-term average growth.” “Our metropolitan economy will be first for having positive job growth. We will recover before the rest of the country,” he said, adding that he thinks the federal government will hire less than 120,000 because it doesn’t have the infrastructure for such mass hiring. To what extent the hiring boom benefits the region depends on whether a substantial proportion of new jobs would be created and whether many of them would be filled by jobless people in the region, scenarios that would reduce the unemployment rate. Officials at some of the agencies said they are recruiting in the region and around the world. But even an influx of hires relocating here could help by spurring demand for houses and apartments. Officials at the U.S. Agency for International Development said they plan to hire 1,690 people over the next few years, 550 of whom would work at the Washington headquarters. Most of the overseas and local positions are new, officials said, as the agency is doubling its foreign service staff who work on construction and diplomacy in developing countries. In addition to the civil service staff in Washington, “one-third of our foreign service workforce is stationed in Washington at any given time” for three years, said Ron Daniels, special projects officer for the agency. Many, he said, would be in the rental market “in short-term or long-term leases.” The Nuclear Regulatory Commission plans to fill more than 459 positions, largely to replace workers expected to retire in the next few years, said Miriam Cohen, deputy director of the agency’s human resources department. The bulk of the hires, she said, would be made for jobs at the agency’s headquarters in Rockville and a satellite office in Bethesda. “We need engineers who would be involved in the construction of new reactors,” Cohen said. Analysts said they expect the new jobs to drive demand for housing in the region, accelerating recovery of the market. July housing sales in the region were up 12.6 percent from the same month in 2008, according to the Center for Regional Analysis, and inventory shrank to 6.2 months in July from 11.5 months in January. “The job growth in D.C. will bring new people into the labor force and drive demand for apartments and houses,” said Frank Nothaft, chief economist at Freddie Mac. “That will have a ripple effect in [boosting interest in new houses] and creating construction jobs.” Gregory H. Leisch, chief executive of Delta Associates, a real estate and economic research firm in Alexandria, said several agencies, including the Justice and Treasury departments, have recently signed leases in the commercial office market to accommodate growth. He said he expects that trend to accelerate with the federal hiring, which could reduce the 47 million square feet of vacant space in the region.

The hiring “will translate into 2 to 3 million square feet of office absorption” by the federal government, he said.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Federal Hiring Boom Would Benefit D.C. AreaQuicker Rebound Expected With More Jobs, Home Sales and Office Leases

By V. Dion Haynes

Washington Post Staff Writer
Tuesday, September 8, 2009

If projections bear out that the federal government will hire up to 120,000 people for jobs in the region over the next few years, the Washington area economy could be on its way to a rebound faster than most of the nation. Such a hiring boom would have widespread benefits, economists who study the region’s employment and housing patterns said. It could reduce the region’s unemployment rate, now at 6.2 percent, if jobless people here are hired, and it could revive stagnant home sales if people outside the area are hired. Moreover, as agencies expand to accommodate more workers, they could opt to lease space, boosting the moribund commercial office market. Partnership for Public Service, a nonprofit that helps find candidates for federal jobs, released a report last week that listed projected hires for hundreds of agencies between now and 2012. In total, the government is expected to hire 600,000 people, including 19,071 nurses at the Department of Veterans Affairs, 9,800 Border Patrol agents, 3,774 criminal investigators for the Labor Department, 6,282 contract representatives at the Treasury Department, and 3,500 claims assistants and examiners at the Social Security Administration. The report, called “Where the Jobs Are,” focuses on 273,000 “critical needs” positions that are necessary for the operation of the agencies — 45,000 of which would be located in the Washington area. Federal spending represents 33 percent of the region’s economy, and a surge in hiring “is important for the economic foundation of this area,” said Max Stier, president and chief executive of the partnership.  The hiring is intended to replace retiring employees and fill positions created as agencies expand to oversee new initiatives, such as economic stimulus programs. Even before the report was published, some experts were projecting that employment in the region would pick up next year, with net job losses becoming net job gains. By the end of the year, the area is expected to experience a net loss of 21,000 jobs, said John McClain, senior fellow at the Center for Regional Analysis at George Mason University. But in the next few years, McClain added, the region is expected to see net gains in jobs: 23,900 in 2010; 34,900 in 2011; 42,000 in 2012; 47,600 in 2013; and 53,300 in 2014. “We will recover somewhat in 2010,” McClain said, adding that his forecast does not take into account the dramatic hiring projected by the report. “In 2012 and ’13, we’re back to our long-term average growth.” “Our metropolitan economy will be first for having positive job growth. We will recover before the rest of the country,” he said, adding that he thinks the federal government will hire less than 120,000 because it doesn’t have the infrastructure for such mass hiring. To what extent the hiring boom benefits the region depends on whether a substantial proportion of new jobs would be created and whether many of them would be filled by jobless people in the region, scenarios that would reduce the unemployment rate. Officials at some of the agencies said they are recruiting in the region and around the world. But even an influx of hires relocating here could help by spurring demand for houses and apartments. Officials at the U.S. Agency for International Development said they plan to hire 1,690 people over the next few years, 550 of whom would work at the Washington headquarters. Most of the overseas and local positions are new, officials said, as the agency is doubling its foreign service staff who work on construction and diplomacy in developing countries. In addition to the civil service staff in Washington, “one-third of our foreign service workforce is stationed in Washington at any given time” for three years, said Ron Daniels, special projects officer for the agency. Many, he said, would be in the rental market “in short-term or long-term leases.” The Nuclear Regulatory Commission plans to fill more than 459 positions, largely to replace workers expected to retire in the next few years, said Miriam Cohen, deputy director of the agency’s human resources department. The bulk of the hires, she said, would be made for jobs at the agency’s headquarters in Rockville and a satellite office in Bethesda. “We need engineers who would be involved in the construction of new reactors,” Cohen said. Analysts said they expect the new jobs to drive demand for housing in the region, accelerating recovery of the market. July housing sales in the region were up 12.6 percent from the same month in 2008, according to the Center for Regional Analysis, and inventory shrank to 6.2 months in July from 11.5 months in January. “The job growth in D.C. will bring new people into the labor force and drive demand for apartments and houses,” said Frank Nothaft, chief economist at Freddie Mac. “That will have a ripple effect in [boosting interest in new houses] and creating construction jobs.” Gregory H. Leisch, chief executive of Delta Associates, a real estate and economic research firm in Alexandria, said several agencies, including the Justice and Treasury departments, have recently signed leases in the commercial office market to accommodate growth. He said he expects that trend to accelerate with the federal hiring, which could reduce the 47 million square feet of vacant space in the region.

The hiring “will translate into 2 to 3 million square feet of office absorption” by the federal government, he said.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Federal Hiring Boom Would Benefit D.C. AreaQuicker Rebound Expected With More Jobs, Home Sales and Office Leases

By V. Dion Haynes

Washington Post Staff Writer
Tuesday, September 8, 2009

If projections bear out that the federal government will hire up to 120,000 people for jobs in the region over the next few years, the Washington area economy could be on its way to a rebound faster than most of the nation. Such a hiring boom would have widespread benefits, economists who study the region’s employment and housing patterns said. It could reduce the region’s unemployment rate, now at 6.2 percent, if jobless people here are hired, and it could revive stagnant home sales if people outside the area are hired. Moreover, as agencies expand to accommodate more workers, they could opt to lease space, boosting the moribund commercial office market. Partnership for Public Service, a nonprofit that helps find candidates for federal jobs, released a report last week that listed projected hires for hundreds of agencies between now and 2012. In total, the government is expected to hire 600,000 people, including 19,071 nurses at the Department of Veterans Affairs, 9,800 Border Patrol agents, 3,774 criminal investigators for the Labor Department, 6,282 contract representatives at the Treasury Department, and 3,500 claims assistants and examiners at the Social Security Administration. The report, called “Where the Jobs Are,” focuses on 273,000 “critical needs” positions that are necessary for the operation of the agencies — 45,000 of which would be located in the Washington area. Federal spending represents 33 percent of the region’s economy, and a surge in hiring “is important for the economic foundation of this area,” said Max Stier, president and chief executive of the partnership.  The hiring is intended to replace retiring employees and fill positions created as agencies expand to oversee new initiatives, such as economic stimulus programs. Even before the report was published, some experts were projecting that employment in the region would pick up next year, with net job losses becoming net job gains. By the end of the year, the area is expected to experience a net loss of 21,000 jobs, said John McClain, senior fellow at the Center for Regional Analysis at George Mason University. But in the next few years, McClain added, the region is expected to see net gains in jobs: 23,900 in 2010; 34,900 in 2011; 42,000 in 2012; 47,600 in 2013; and 53,300 in 2014. “We will recover somewhat in 2010,” McClain said, adding that his forecast does not take into account the dramatic hiring projected by the report. “In 2012 and ’13, we’re back to our long-term average growth.” “Our metropolitan economy will be first for having positive job growth. We will recover before the rest of the country,” he said, adding that he thinks the federal government will hire less than 120,000 because it doesn’t have the infrastructure for such mass hiring. To what extent the hiring boom benefits the region depends on whether a substantial proportion of new jobs would be created and whether many of them would be filled by jobless people in the region, scenarios that would reduce the unemployment rate. Officials at some of the agencies said they are recruiting in the region and around the world. But even an influx of hires relocating here could help by spurring demand for houses and apartments. Officials at the U.S. Agency for International Development said they plan to hire 1,690 people over the next few years, 550 of whom would work at the Washington headquarters. Most of the overseas and local positions are new, officials said, as the agency is doubling its foreign service staff who work on construction and diplomacy in developing countries. In addition to the civil service staff in Washington, “one-third of our foreign service workforce is stationed in Washington at any given time” for three years, said Ron Daniels, special projects officer for the agency. Many, he said, would be in the rental market “in short-term or long-term leases.” The Nuclear Regulatory Commission plans to fill more than 459 positions, largely to replace workers expected to retire in the next few years, said Miriam Cohen, deputy director of the agency’s human resources department. The bulk of the hires, she said, would be made for jobs at the agency’s headquarters in Rockville and a satellite office in Bethesda. “We need engineers who would be involved in the construction of new reactors,” Cohen said. Analysts said they expect the new jobs to drive demand for housing in the region, accelerating recovery of the market. July housing sales in the region were up 12.6 percent from the same month in 2008, according to the Center for Regional Analysis, and inventory shrank to 6.2 months in July from 11.5 months in January. “The job growth in D.C. will bring new people into the labor force and drive demand for apartments and houses,” said Frank Nothaft, chief economist at Freddie Mac. “That will have a ripple effect in [boosting interest in new houses] and creating construction jobs.” Gregory H. Leisch, chief executive of Delta Associates, a real estate and economic research firm in Alexandria, said several agencies, including the Justice and Treasury departments, have recently signed leases in the commercial office market to accommodate growth. He said he expects that trend to accelerate with the federal hiring, which could reduce the 47 million square feet of vacant space in the region.

The hiring “will translate into 2 to 3 million square feet of office absorption” by the federal government, he said.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Market Conditions

by Realty Times Staff

www.MyNvaHomes.com

www.FindaHomeSellaHomeNow.com

According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index, housing affordability remains near its highest level in 18 years.

“The increase in affordability, along with the $8,000 federal tax credit for home buyers, is stimulating demand, particularly among young, first-time buyers,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “But to keep the recent upturn in home sales going into next year, Congress will need to extend the tax credit for another year and make it available to all buyers in an effort to encourage activity in the trade-up market.”  

The HOI showed that 72.3 percent of all new and existing homes sold in the second quarter of 2009 were affordable to families earning the national median income of $64,000, down only slightly from the record-high 72.5 percent during the previous quarter and up from 55.0 percent during the second quarter of 2008.

Published: September 1, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Communication Within a Team

by Dirk Zeller

RealtyTimes

www.MyNvaHomes.com

A well-functioning team must have strong and constant communication. Communication comes in many forms including written, verbal, and both inter-office and intra-office e-mail. In order for the team to be highly efficient, communication among the members of the team needs to be tracked to keep the team members accountable for their assigned tasks. In the tracking process, both the receiver and the sender create a record of the task.

There are four keys that you and your office can use to help the flow of information throughout the office: regular staff meetings, request forms, listing out questions, and being aggressive.

You are a leader, not a manager “ there is a difference.

1. Regular Staff Meetings

Daily and weekly meetings strengthen communication with your team. The focus of the daily meeting is to set priorities for staff for the day. This meeting is an opportunity for you to coach and direct the members of the team. By not having daily meetings, you are allowing your assistant and the other members to set their own priorities, which may be different from yours. To be able to set your daily priorities with your team, you need to schedule fifteen minutes daily for a meeting between you, your assistant, and the other members of the team.

One of the frustrations assistants feel is being overwhelmed with work. An assistant who does not understand what the agent™s priorities are will feel even more overwhelmed with all the tasks that need to be completed. As the lead agent, you need to help the assistant define and determine what tasks need to be completed today and for the week. If you take ten minutes a day to walk through the priorities for the day, your assistant will be able to complete items in the order in which you want them done and will accomplish the most important tasks for the day and for the week. Daily meetings can mean the difference between business success and failure.

Weekly meetings with your assistant should focus on the overall goals and functions of the office. Use this meeting to look at and evaluate all of the activities scheduled during the week. This time will also be used to review the activities of the last month and to set new priorities for the month ahead.

There should also be weekly team meetings scheduled, which all members of the team are required to attend. These weekly meetings will allow all members to debrief their activities for the week and determine priorities for next week. It is a vital component of a strong team. It allows evaluation of the completed week and an investment in the new week. It provides a time for brainstorming to determine solutions for ongoing problems. It will also enhance the team-building spirit. This meeting will give the team an opportunity to put an exclamation point at the end of a great week.

2. Request Forms

Written request forms are crucial to an effective flow of tasks in the office. The requests are passed from one person to the next person in the team. These forms will enable you and your staff to set deadlines for you and for other members of your team. This information helps to avoid the occurrence of a œcold sweat night “ a mental wake-up call at 2 a.m. which finds you sitting straight up in bed, wide awake, wondering whether a particular task was completed or not. Once this happens, it becomes very hard to get back to sleep, since you cannot get that worrisome question out of your head. Many agents are using e-mail to direct assistants. I think that is a mistake in the short run. If you have a new assistant, use paper request forms. The tangible, physical paper carries a greater impact. It also doesn™t get lost in all the other spam e-mail we get. It also gives you a chance to check and see the progress on a regular basis. You can switch to the more efficient e-mail in a few months, once you are confident of their execution.

3. Listing Out Questions

The assistant should have their questions well organized, so that they can ask the agent all of their questions at the same time. The questions should be saved up and asked once or twice per day. This allows the assistant to stay focused on the tasks that they are completing. It also helps the agent to stay focused on sales without constant interruption. One appropriate time for the assistant to ask questions is during the daily meeting.

While the assistant is compiling their questions, they should also determine one or two solutions for each of the questions. This step gives the agent an understanding that the assistant is attempting to solve problems on their own, but they want to be sure what the correct solution is. It also it gives the agent an idea of possible solutions. Even if the agent then has to reject both solutions, the process of working out possible solutions and receiving the agent™s response to them will help the assistant understand why a solution will or will not work and why the task should be done in a particular way. This procedure gives the assistant an opportunity to learn how to solve the problem, so if it arises in the future, they will be able to handle it. This technique also reduces the chance the agent will get involved or take ownership of the situation. A good assistant will not allow their Champion Agent to engage emotionally with a problem. It hampers performance, and sales will drop.

4. Be Assertive

Another part of communication is being assertive. The assistant should be up front and direct with the agent or other team members if they need something explained further or if they are missing paperwork for the file. The assistant needs to be able to say, œI need this and not feel shy about it. Agents will sometimes be focused only on the sales aspect of the business and will not be aware of the work being done behind the scene. The assistant needs to be able to let the agent and other team members know what is needed

Published: July 31, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

SPECIAL ALERT

NOVEC Asks Customers to Use Less Power This Week

 NORTHERN VIRGINIA”The Northern Virginia Electric Cooperative asks all of its customers to reduce their power consumption at work and home as much as practical between 2 p.m. and 6 p.m. this week. The reduction will help the Co-op avoid excessive peak-use charges and save customers money.œThe amount of power customers collectively use during the five highest peak-use hours during the year determines the ˜peak demand charge™ the Co-op pays the following year, explains Ken Blaylock, manager, NOVEC Substation and Telecommunications department.Blaylock says peak-use hours in summer usually occur in the afternoon when air conditioners work the hardest to cool, and in the early evening when families turn on lights, prepare dinner, wash dishes, and take showers and baths.œIf customers use less electricity on the hottest days, they will help reduce the demand charges for next year, Blaylock states œBy shaving just 10 percent of their electricity use when temperatures soar, customers could realize a collective savings of about $4.7 million, Blaylock estimates. In 2008, the average annual cost per customer for the peak demand charge was $335.NOVEC passes the savings onto customers through the Power Cost Adjustment Charge on their bills and through a program called CashBack.Tips for Reducing Peak Electricity Use

• Turn the thermostat up to 82 degrees ” or turn it off ” between 2 p.m. and 6 p.m. and at all times when no one is home. A programmable thermostat will make adjustments automatically. When family members are home, run fans; the air movement will make them feel cooler.
• Close window shades, blinds, and drapes to block the sun™s heat.
• Delay running the dishwasher, clothes washer, and dryer until late at night or early in the morning.
• Turn off all unnecessary lights, electronic devices, and appliances.
• Cook with a microwave oven instead of the stove and oven. Grill outdoors.
• Spend time in a finished basement where temperatures are cooler.
• Consider going to the library, mall or the movies where it’s cool, and turn off the air conditioner before leaving.

For more peak-use reduction tips, visit www.novec.com/peak15.Customers can make additional changes in their energy consumption habits to save more energy every day. These changes include:

• Replacing or cleaning the air conditioner filter if it is not clean
• Replacing Incandescent light bulbs, which produce 10 percent light and 90 percent heat, with compact fluorescent bulbs, which create little heat and last much longer, and turning off lights when leaving a room

Many more long-term energy-saving tips are available at www.novec.com/useitwisely15.NOVEC is a not-for-profit corporation that distributes electricity and energy services to approximately 142,000 customers in Fairfax, Fauquier, Loudoun, Prince William, Stafford, and Clarke counties and the City of Manassas Park. It is one of the largest electric distribution cooperatives in the nation. For more information, visit www.novec.com or call 703-335-0500 or 1-888-335-0500.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Market Conditions

by Realty Times Staff

www.MyNvaHomes.com

The National Association of Home Builders is reporting that Nationwide housing starts and permits posted substantial gains in June as home builders responded to improved market conditions and the impending expiration of the first-time buyer tax credit. These stats comes from the U.S. Commerce Department.

“The upcoming expiration of the first-time home buyer tax credit on December 1st is encouraging some builders to get homes started now so that they can be completed in time for clients to take advantage of this attractive buying incentive,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “However, there is still much concern about the difficulty of financing new-home production and continuing weakness in the job market.”  

Commerce reported a 3.6 percent gain in overall housing starts to a seasonally adjusted annual rate of 582,000 units and an 8.7 percent gain in permit issuance to 563,000 units.

“Today™s report was in keeping with our forecasts for some glimmers of improvement on the single-family side in the second quarter, and also with the results of our latest builder surveys,” said NAHB Chief Economist David Crowe. “Many remain very cautious, however, in the face of the severe tightening of credit for acquisition, development and construction financing and increased instances of low appraisals tied to improper use of distressed properties as comps, both of which threaten to derail a housing and economic recovery going forward.”

Published: July 21, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

VHDA 1ST Time Home Buyer “ Tax Credit Plus Program

·             This loan has a built-in second mortgage to help cover the down payment and closing costs, with zero interest and no payments for the first 12 months.

·             The recent economic recovery legislation has created a tax credit incentive of up to $8,000 for first-time home-buyers. VHDA™s Homebuyer Tax Credit Plus loan lets borrowers take advantage of the federal First-time Homebuyer Tax Credit to finance the down payment and closings.

Choose the preferred payment plan:

·             Pay off the second mortgage-Build equity in your home.

·             Pay off the second mortgage over 29 years-Save the tax credit for a rainy day, home improvements or help pay existing debt.

·             make payments on the principal of the second mortgage before the repayment period begins; this will reduce the required monthly payments for the remaining 29 years on the second mortgage.

Program Features:

·             Affordable fixed-rate financing on both mortgages.

·             Repayment of the second mortgage begins one year after the first mortgage payment.

·             Interest rate of second mortgage: zero interest for the first year-beginning the 13th month, the same interest rate as the first mortgage.

·             Maximum loan amount: First mortgage-maximum FHA Mortgage

                        Second mortgage-up to 5% of sales price (no cash back)

·             Loan must close no later than November 30, 2009.

Guidelines and Details

·             Time Limit: Loan must close no later than Nov. 30, 2009

·             Eligibility Requirements:   Borrowers must meet federal First-time Homebuyer Tax Credit requirements as well as VHDA™s requirements regarding first-time homebuyer status, income limits, and sales price limits.

·             Maximum Income:   The combined income of all household members may not exceed VHDA™s maximum income limits.

·             Maximum Sales Price/   The combination of the first and second mortgage

·             Total Loan Amount:   may not exceed VHDA™s sales price/income limits.

Re: Regulation Z “ Federal Truth-in-Lending (TIL)

This is to inform every one of upcoming changes the Federal Reserve has implemented regarding the timing of TIL disclosures in order to be consistent with the new Mortgage Disclosure Improvement Act of 2008 (MDIA).   These changes apply to all loan applications received by the Lender on or after July 30, 2009.  

These changes apply to all mortgage lenders and may affect the settlement dates of loans.   The following is an overview of the new requirements:

·             An initial TIL (Truth in Lending) must be delivered to the applicant within 3 business days (excludes holidays and Sundays) of application AND at least 7 business days prior to settlement.

·             If the APR increases by more than 1/8th of 1% from the initial TIL, a corrected TIL must be delivered to the applicant at least 3 business days prior to settlement.

*** Settlement may not occur until both the 7 and 3 business day waiting periods have expired ***

It is therefore important to disclose to any potential applicants and the lender any fees that may be involved that could affect the APR (realtor, inspection, pest, etc.).

Caryn Grafton

Personalized Mortgage Lender

George Mason Mortgage

Office: 703-259-0746

Mobile: 703-786-5213

E-Fax: 703-738-7001

http://www.carynforyourmortgage.com/

4100 Monument Corner Drive I Fairfax I VA I 22030

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Determining When Prospects Become Clients

by Dirk Zeller

Realty Times

www.MyNvaHomes.com

How do you determine whether a prospect should become a client? What are the criteria of becoming a client? Have you created a series of questions to help you minimize the time invested, to determine if a prospect will meet your standard?

You need to create a systemized approach to determine if a prospect measures up to your specific criteria. This approach needs to be applied each and every time you come in contact with a prospect. I believe it doesn™t matter where the prospect comes from; he needs to be evaluated based on a standard. Even if the prospect is a referral from a “Raving Fan”, he still needs to meet the standard. If the prospect does not meet the standard, I would encourage you to gracefully decline the potential business.

There are eight questions that I used during my career in real estate to determine if a client would meet my standards. I will go through each question and explain why this question was important in making the decision of who to have as a client and who to pass on.

1. When is this prospect going to buy or sell? When is the prospect ready to move? The further out the move date, the lower the motivation of the prospect. You will have to follow-up more with the prospect, and you will have to invest more time to achieve a sale, if the moving date is far in the future. It is difficult to make a decent income chasing prospects that may buy or sell in the distant future.

2. Does the prospect have the ability to buy? Does the prospect have the cash down payment and is he able to be approved for financing? There are many Agents who show property to prospects for a week or two, only to find out they cannot buy. My suggestion is to find out if they are able to buy a home, before you even put them in your car. Require them to meet with your lender, or provide proof of being pre-approved from another lender, before you invest your time, effort, and energy in the prospects.

3. Does the client have reasonable expectations? This question is two-fold. Is the “wish list” of what the client thinks he can afford, and what he can actually afford, the same? Often buyers are not in the real world in regards to what they can afford to purchase. If you are chasing a prospect that is not in reality, you are truly wasting your time. In this situation you are going to either be the bad guy by telling him what he can really afford, or the client dumps you because you do not believe in his crusade. Either way, it is a difficult road to success and eventually leads to no commission.

The second part of this question is directed to the clients who try to beat the market. I always tried to avoid the seller who wanted more than fair market value for his property, and the buyer who wanted to steal the property. They both can be wastes of time for Agents. The odds are heavily weighted against this buyer and seller. You often will invest a tremendous amount of additional time to earn the same income. Not to mention, that often these people have the desire for an “I win – you lose” type of transaction. In my experience, those are the least enjoyable transactions to enter into, when one of the parties is only concerned about himself winning.

4. Does this prospect respect my time and me? Our time is our most precious commodity. Once it is gone we do not get it back. A prospect that does not value your time, by not keeping appointments and by showing up late, is clearly telling you that he does not value your service, or your time.

Often buyers and sellers will try to tell Agents what to do and how to do their jobs. They need to understand they are paying for your knowledge, advice, and professionalism. When they do not take your guidance, you need to decide if you want to continue to work with them. In my career, I chose not to do business with people who disregarded my guidance. If you acquiesce during the listing agreement period, once the listing expires you will still wear the black hat. The seller will still talk disparagingly about you and your service. How many times has this happened to all of us? I truly believe, if you are a professional REALTOR, your clients should regard your guidance, as they do that of their doctor, attorney, or accountant. I would not question my attorney or accountant™s guidance. It is rather presumptuous for me to think I know more than they do in their area of expertise. My best advice to Agents is to run away from this type of prospect quickly!

5. Am I being asked to compromise morally, or ethically, from my beliefs to make a sale? If we have to deviate from our business philosophy, we need to reevaluate this business relationship. Being able to stand tall and live with your decisions is better than any sale you might make. If a prospect requests you do something that would fall into a gray area, you should carefully evaluate it. What if the deal blows up, or the gray turns pitch black? Remember most buyers and sellers will immediately point the finger towards the Agents involved.

6. Can I create a satisfied client? Is this prospect the type of person who will never be satisfied? Do you want to be the next Agent he is complaining about? These are people who will never be satisfied, no matter what you do, or what level of service you provide. Remember people tend to know, enjoy, and develop friendships with people who are similar to themselves. Do you want more referrals like the current prospect? I urge you to carefully evaluate this question when you are determining who you want your current clients and future prospects to be.

7. Is the client willing to tell me the truth so I can help him? Sometimes people view us as the enemy, or as a necessary evil. Prospects can sometimes play “hide the ball” with an Agent. I think that open and truthful communication between the Agent and the client leads to a successful relationship and transaction. In the end it will lead to successful referrals. If a prospect can™t be honest with you, you should probably pass on him.

8. Is the commission that you will earn worth the trouble? Some Agents may be offended by this question. But the truth is, we are in this business to provide a service and to turn a profit. This is a question that must be asked every time. Are the dollars earned adequate for the time and effort you will be expending to put this transaction together and close? Maybe you would be better to invest the time to find a higher quality prospect or client. It is your time, so you are entitled to select in whom you invest your time.

It is all right to decide to go ahead and work with someone, even though you know the amount that you will earn may not be as high as compared to other transactions. In my career I entered into a handful of deals annually to help people. The key was, I accepted the fact that I would not be compensated for my time at my usual hourly rate, before I entered into the client relationship. I think that it is easier to accept when you understand it going into the relationship, rather than invest all your time, and then find out. It is easier when the choice is yours.

Develop your own list of questions to evaluate your prospects and clients. Make sure that the clients with whom you are spending and investing your time on measure up to the standard you have set. You will find an increase in your production and income, waiting around the corner, once the standard is established and met with all your clients.

Published: July 10, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Investor Report: Energy Efficiency

by Kenneth R. Harney

Realty Times

www.MyNvaHomes.com

For real estate investors buying houses at discount prices, it could be a hot new trend. Instead of simply doing the usual renovations, paint jobs and landscaping to turn around properties for resale or rental, growing numbers of investors are emphasizing energy efficiency improvements to increase market values and cut marketing times.

In Baltimore, A-Plus Neighborhood Homebuyers LLC is now acquiring central city rowhouses — spending thousands of dollars extra on eco-friendly upgrades they’d never done before — extra heavy insulation, bamboo flooring and high energy- efficiency appliances and lighting.

Three thousand miles to the west in Seattle, Aaron Fairchild of G2B Ventures is raising $50 million for the Efficient Real Estate Fund, the first limited partnership designed solely to buy urban houses at wholesale prices, perform major energy-efficiency retrofits on top of regular rehabs, then turn the properties around as rentals and for-sale houses.

In an interview with RealtyTimes, Fairchild said energy upgrades, documented by before and after audits, are a key new direction for investors, “even if it sounds like non-sexy stuff.”

Research studies have found that houses with high energy-efficiency ratings sell at premiums ranging anywhere from seven to 14 percent over comparable, non-efficient houses, and take fewer days on the market to sell.

He cited a recent study on Seattle-area single family houses constructed in 2007 or later and certified as “built green,” Energy Star and LEED (L-E-E-D), a top energy efficiency rating. “Green” certified properties of essentially the same size as non-certified units sold for seven and a half percent more per square foot and sold 24 percent faster – an average of 38 days versus fifty.

“It seems fairly obvious that if we spend two and a half percent extra” on renovations to achieve high energy efficiency,” said Fairchild, “that we will recapture much more than that” when the houses are remarketed.

“When you can show people that the house consumes less energy” and emits much lower levels of greenhouse gases — and you’ve got pre-renovation and post-renovation audits and operating numbers to prove it, “it only makes sense the property will have a competitive advantage in the marketplace.” Fairchild’s program is targeting houses in Seattle that can be acquired for 25 percent below current market value, primarily through short sales, bank-owned and pocket listing situations.

The renovations are intended to drastically lower energy usage and carbon emissions, and offer Energy Performance Scores from independent auditors.

Fairchild believes small and large-scale investors who ignore energy consumption and carbon emissions “are missing an important opportunity,” not only for profit, but to do the right thing for the planet.

Published: July 10, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Washington Report: Home Affordable Refinance Program

by Kenneth R. Harney

Realty Times

www.MyNvaHomes.om

The Obama administration’s latest expansion of its “home affordable” refinance program, outlined just before the July 4 holiday, could be huge news for tens of thousands of owners whose houses are seriously “underwater,” or where they’re worth a lot less than the mortgage balance owed on them.

Under the new rules, even where borrowers have negative equities of as much as 25 percent, they may be able to refinance into better loan terms, provided their mortgage is owned or guaranteed by Fannie Mae or Freddie Mac.

Under the original rules for the program, the cutoff point was just five percent negative equity — or a “loan to value” (LTV) ratio of 105 percent.

Though an estimated 80,000 owners already have been refinanced by Fannie and Freddie, HUD Secretary Shaun Donovan and Treasury Secretary Tim Geithner decided that the 105% LTV limit left too many borrowers out of reach.

In some parts of California, Nevada, Arizona and Florida, 40 to 50 percent of home owners are now stuck with negative equities, according to industry estimates. In Las Vegas, 67 percent of owners are underwater.

Zillow.com estimates that nationwide, 22 percent of all owners have negative equity in their properties – many of them by more than five percent.

The newly-expanded “home affordable” program opens the door not only to lower monthly payments for seriously underwater borrowers, but also to the possibility of shorter loan pay-off terms to reduce mortgage principal debts much faster.

Here’s an example of how the expanded program could work:

Say your house is currently valued at $240,000, but your mortgage balance is $300,000.

You are underwater by 25 percent.

If your loan is owned or guaranteed by Fannie or Freddie, and you’re not behind on your payments, you should be eligible for a “home affordable” refi.

Say your current payments are eighteen hundred sixty dollars a month. By refinancing into a new 30-year, $300,000 loan at five and a quarter percent, you could cut your principal and interest payment to about sixteen hundred sixty a month – a $200 saving.

Or you could shorten your loan term from 30 years to say, 15 years or 20 years at five and an eighth percent. If you could handle the slightly higher monthly payments, you’d accelerate your principal paydown speed, build equity and go from underwater to above water much faster, even without local market value appreciation.

To take advantage, contact your loan servicer to see if your mortgage is owned by Freddie or Fannie. Or you can check online at either fanniemae.com/loanlook, or freddiemac.com/mymortgage.

Published: July 13, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

The 1031 Exchange in Today’s Market

by Peter L. Mosca

www.RealtyTimes.com

 

www.MyNvaHomes.com

[Note: To follow is an excerpt of an interview with Michael A. Anderson, CES, Certified Exchange Specialist. Michael is president of Exchange Services, LLC, an affiliate of Zions Bank that serves the QI needs of the affiliate banks and national customer base. To listen to the show archive or download an MP3, go to www.IncomePropertyInvestmentTalk.com/052009.]

Mosca: Section 1031 of the Internal Revenue Code provides a series of different things for different types of investors. What is a 1031 tax-deferred exchange as it relates to the real estate investment and why is it so valuable?

Anderson: The point of owning real estate is to have it appreciate in value and if you want to change that or sell that property, you may have a substantial tax liability as a result through capital gains taxes, both state and federal. Section 1031 allows you to exchange one investment property for another and doing so appropriately defers the capital gains tax that might be due in such a transaction if it were a sale. As you near closing for the sale of your investment property, you have to decide whether to do an exchange or not before you actually close on your sale. As you near that point, you decide to call a qualified intermediary or QI like myself or any of my colleagues in the business and the QI will set up some documents for you which will convert your sale into an exchange. What that does is it transfers typically the right to receive the proceeds of the sale to the qualified intermediary, so when the sale closes the funds go to the QI to hold them for you while you go look for your replacement property. You have to acquire or identify your short list of replacement properties within 45 days of the sale and you have to actually close those properties you want to acquire within 180 days of the sale or the due date of the tax return for the year in which the sale took place including extension. Planning ahead always helps in life and this is another situation where planning ahead helps you avoid heartburn at the last moment.

Mosca: What separates or makes Zions Bank or your Exchange Services, LLC different or unique from the typical exchange provider?

Anderson: At Exchange Services, we use the qualified trust model, which means that we don’t own the funds. Typically the QIs in the past have used the safe harbor where the QI gets to own the funds in between and they get to do with it whatever they want in general. Under the qualified trust model, we create a trust for the taxpayer and the funds belong to the taxpayer but are restricted from their access according to the safe harbor for the qualified trust by means of the trust. We also invest the funds in separate bank accounts, which have the benefit of FDIC insurance.

Mosca: As an example, I am one investor of maybe 17 who has invested in a tenant in common property and that property is going to sell in September. I want to invest the gain again in another income property. What is the process from there?

Anderson: Basically what we do is compare some documentation to convert your sale to an exchange. Then, at the closing, the funds come to us and we hold them in a qualified trust account for your benefit while you go look for new property and you have up to 45 days to identify your short list and then you have up to 180 days to actually close on your replacement property.

Mosca: Another example, I am investor and I feel it does not make sense to exchange today with the way the market is and it is better to just pay the taxes. What do you say about that?

Anderson: Whenever you pay the tax, the tax money is gone and it is really hard to make up that loss from a return basis. Some people are saying tax rates may go up and there is a good chance that they will. We have even done some modeling here and it turns out that even if rates go up say to 35 or 39%; it’s hard to catch up once you pay that big chunk of capital gains tax. It doesn’t mean you shouldn’t do it in certain situations but it’s just giving yourself a handicap that’s hard to catch up with. A 1031 is a good way for people to create flexibility in their investor plans as they decide to go from one type of investment, say your duplex or into a TIC or other sort of vehicle. It’s a great way to do so without being penalized.

Mosca: One of the overriding themes of this program is the importance of relationships with experts in this business to success. Do you agree?

Anderson: This past weekend, I was at a conference of people in our industry — the Federation of Exchange Accommodators. We review there and talk to each other about what we are doing and about new authority and regulations and decisions on related parties and vacation homes and partnership return questions and it’s a fun time to get together and talk shop and catch up on things. It is important to look for people who have those professional qualifications and in our industry it for the Certified Exchange Specialist. I would encourage people to look for professionals as you say that are qualified and have made commitment to the industry.

Mosca: Mike, we are now in a global economy. Does the law apply to foreign properties?

Anderson: Generally, you can exchange domestic properties for domestic properties and foreign properties for foreign properties.

Mosca: Is there any discussion to change that or do you think it’s always going to stay domestic to domestic and foreign to foreign?

Anderson: It’s hard to know what Congress is going to do at any given time. There has not been as much pressure on that as there has been on other issues.

Mosca: What are some of the other issues coming up in the months or years ahead?

Anderson: There is concern about folks who are unwittingly involved as customers in failures and offering some sort of relief for them, especially those that lost a lot of money in capital and had to pay ‘boot.’ I’d like to see some support for those folks, but I don’t know what hope there is for that. Boot is income that is subject to tax; the tax liability is called boot in an exchange.

Mosca: Can you talk about some of the different ways to protect customer funds?

Anderson: Certainly. Some problems came as a result of honest mistakes and not necessarily unscrupulous activities. It happens either way. The most important thing is to understand who is holding your money, who they are, what their qualifications are, what their management strategy is, and what they’re holding strategy is. For example, there are three safe harbors the IRS allows for this kind of a procedure. One is the qualified intermediary, one the qualified trust, and the other, the qualified escrow. The qualified intermediary approach has been more common. Basically the qualified intermediary receives the funds and they are the qualified intermediary’s funds in the interim. The qualified intermediary can go invest those funds and if they pay that taxpayer 2% and they can make 4% or 5%, they keep the difference. Under the qualified escrow, qualified trust model the funds belonged to the taxpayer and are just held in escrow or in trust for the taxpayer. Again, in a situation where there is a bankruptcy or some question about who the funds belonged to, the qualified trust or the qualified escrow models are much clearer legally belonging to the taxpayer then the qualified intermediary approach. Most of the qualified intermediaries are very honest, very straightforward. It’s an actual layer of protection we give to our customers. We do not put them in pooled accounts. We put every single taxpayer in a different, separate bank account. Plus, we pay all the interest to the taxpayer.

Mosca: What is your golden nugget for today?

Anderson: Even though the economy has had some turbulence recently, don’t lose heart, look forward, be careful, think things through, don’t throw away your money needlessly, make good decisions, analyze, underwrite, ask questions, and we will all make it through this.

Published: June 18, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Investor Report: Residential Lots

by Kenneth R. Harney

www.Realtytimes.com

 

www.MyNvaHomes.com

It might sound a little surprising, but in investment real estate, residential lots are hot, especially in markets that saw the highest peaks and the worst busts during the past three years.

On Florida’s west coast, Gary Tasman of Cushman & Wakefield affiliate Commercial Property Southwest of Florida, says bulk purchases of developed building lots are œreally brisk right now with prices in some local areas nearly doubling from their low point.

The reason: Home builders are now looking ahead to 2010 and 2011. They see the rebound already taking shape. And they need well-located lots ready to go for the future construction they’re planning.

The best deals are bank-owned lots taken back in foreclosures from earlier, unsuccessful developers. They often come with bare-bones pricing, but Tasman warns that rising demand – from builders and investors – is putting pressure on those prices.

For example, in Cape Coral, some lots that once were selling at $5,000 to $6,000 now command $9.000 to $10,000 or more, Tasman told Realty Times in an interview last week.

In other boom-to-bust-to-rebound markets – Arizona and California for instance – similar land rushes are getting underway again.

Gregory Vogel, CEO of the Land Advisor Organization, based in Scottsdale, Arizona, says demand for bulk-sale, deep-discount residential lots is now, in his words, œnothing less than stunning.

Publicly-traded builders are scooping up developed lots by the hundreds in REO transactions, he told Realty Times, and are then œland banking them for their own building – or for resale to other builders or investors – in the coming several years.

In one recent sale, Communities Southwest bought 891 foreclosed single family lots from Bank of America for $8.3 million. A major land banker in its own right for the past two years, Communities Southwest now is marketing about 2,000 lots – primarily targeted at builders gearing up for better days ahead.

But there’s an important factor to keep in mind if you’re looking to invest in residential lots in the coming months: There is virtually no financing available for developed lots. So-called œA-D & C loans – that’s acquisition, development and construction – are few and far between from banks or other conventional lenders.

So buying lots at deep discounts – attractive as it may be — is an all-cash investment activity. You go in with your own bucks. Or you partner with equity investors who know good timing when they see it.

Published: June 19, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Here are a few reasons that this is a great time to purchase in Northern Virginia now.

1)Existing Home Sales rose 5.1% in February to a seasonally adjusted annual rate of 4.72 Million units.   First-time buyers made up about HALF of this number during the month.   The first-time buyer tax credit will stimulate the lower-priced homes first and then will help those seller’s move up.

2)New home starts are down, there will be less new home sales, less inventory will lead consumers to purchase re-sale properties.

3)The housing affordabitly index hit an ALL-TIME high of 173.5.   This affordability will alllow those purchaser’s who could not buy before enter the market.

4)Mortgage rates are at a FIFTY YEAR LOW.   A home that is purchased at 6% for 360k is equal to a 400k home at 5%.

5)Although unemployment has risen, it is still extremely low relative to National trends and norms.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

In recent times many clients of mine have come to ask what the meaning of the different status™ they see in the Multiple Listing Service  I  provide to them, www.FindaHomeSellaHomeNow.com .   Here is a summary of the different status™ and what they mean.

Listing Status Categories

As you look through the property listings, you will notice the Multiple Listing Service displays each listing as to its œStatus. Here is the list provided by our area MLS (MRIS).  

·   ACTIVE – Indicates that the property is available with no contingencies, contract or application registered against it.

·   CNTG/KO – (Contingent with Kick Out) – Indicates that the property is available but has a contract with at least one pending contingency that includes a kick out clause.

·   CNTG/NO KO – (Contingent with No Kick Out) – Indicates that the property is available but has a contract with at least one pending contingency and the pending contingencies do not contain kick out clauses.

·   APP REG – (Application registered) – Indicates that the property is available but a rental application has been registered on it.

·   CONTRACT – Indicates that the property has a ratified contract with no pending contingencies. If the only remaining contingency is financing the status should be contract.

·   SOLD – Indicates that the property is sold and settled.

·   RENTED – Indicates that the listing has been rented.

·   TEMPORARY OFF – Indicates that the property is not available for showing. This status is for short term use and must have seller approval.

·   EXPIRED – Indicates that the listing agreement has expired.

·   WITHDRAWN – Indicates that the listing agreement has been terminated prior to its original date

If you have any questions regarding the status of a listing, or more Real Estate information in general.   Please feel free to email or call at any time.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

 

 

I have been getting tons of calls and emails regarding the $8000 Tax Credit towards down payment & closing. To clarify, only non-profits, government agencies (Federal, State & local) approved by FHA/HUD can offer the $8000 as a second lien for the buyer.   The $8000 can NOT be utilized towards the 3.5% down payment. The $8000 can be used towards any additional down payment or closing costs.  Enclosed is the HUD mortgagee letter guides Using First Time Homebuyer Tax Credit.

 

Example:   Purchase price $250k, down payment 3.5% $8750 “ the $8750 MUST come from the buyer(s) OWN funds. The $8000 tax credit can be utilized to cover closing & pre-paids and any additional down payment.

 

Non-profits and other government agencies that are offering this will have their own guidelines as well.   The IRS has additional restrictions on income. Per IRS guides: The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers.  Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Helping Clients Estimate Their Affordability Range

by Ralph Roberts

www.RealtyTimes.om

Traditionally, real estate and mortgage professionals have encouraged homeowners to stretch “ to shop for homes at the upper end of their affordability range. We wanted them to maximize their investment, and we were seeing property values and incomes rise, especially for homeowners who were first starting out. It all made for a very sound investment in housing.

Recently, I have begun to question what an “affordable house payment” means. Even some of the major players in the mortgage lending industry have different ideas of what “affordable” means:

• U.S. Treasury: 31 percent front-end DTI (debt-to-income) ratio, and less than 55 percent back-end DTI
• FHA (Federal Housing Administration) Old: 29 percent front-end DTI, and 41 percent back-end DTI
• FHA New: 31 percent front-end DTI, and 43 percent back-end DTI
• Fannie Mae: 36 percent benchmark back-end DTI with a maximum of 45 percent with “strong compensating factors”
• Conventional loans: 28 percent front-end ratio, and a 36 percent back-end ratio My rule of thumb is a maximum 30 percent front-end DTI. This means that a homeowner’s monthly house payment or PITIA (principal, interest, taxes, insurance, and association fees) should be no higher than 30 percent of the gross monthly household income. For every $1,000 per month in household income, the homeowner should be able to afford $300 of house payment.

The trouble with these guidelines, even my guideline, is that they fail to take into account other mitigating factors. For example, couple with four children paying their own medical insurance premiums is probably going to be able to afford less house than a young couple with no children whose employers provide health insurance.

Likewise, a family that spends $400 per month to heat their home will have less money available for a house payment. Let’s look at a specific example. Suppose a family of four is pulling in about $6,000 per month. That’s $72,000 annually. To simplify, we’ll assume the family is debt free, except for the new home they are about to purchase. Based on a front-end DTI of 31 percent, the couple should be able to afford a monthly house payment of $1,860. That leaves them with $4,140 per month to cover everything else.

According to Ginnie Mae’s How Much Home Can You Afford? calculator, an annual gross household income of $72,000 can afford a monthly house payment of $2,235. This represents a 37 percent front-end DTI, which is outside most guidelines.

Before we encourage the couple to purchase a $200,000 plus house, let’s take a look at their current monthly budget. Assuming we were to sell them a house and saddle them with a $1,860 monthly mortgage payment, here’s where the rest of the money ($4,140) would be going each month:

Income taxes (28 percent) $1,160

Daughter’s college $1,000

Electricity (avg.) $250

Husband’s health insurance $160

Groceries $400

Auto insurance $180

Auto fuel $100

Auto license $28

Auto maintenance/repairs $200

Charitable contributions $100

Movies, TV, Internet $120

Medical/dental (un-reimbursed) $250

Clothing & shoes $80

Dining out $100

Gifts $50

Personal care $40

Pets $40

Total $4,258.00

Now, you wouldn’t exactly characterize this family as living large, yet if it had a house payment of $1,860, it would be seriously struggling every month to make ends meet.

What we as real estate professionals can learn from this example is that home financing eligibility guidelines are just that “ guidelines, ballpark figures to get the conversation going. Mortgage lenders, real estate agents, and other professionals who are providing guidance to homeowners on how much house they can afford do their clients a grave disservice by using these general guidelines to make recommendations to specific families about how much house they can afford.

Currently, we are doing this all backwards. We tell homeowners how much house they can afford and then expect them to make the tough budget decisions to make that payment affordable. When the family still can’t afford their house payment, we assume they are overspending and send them to credit counseling to become further humiliated.

Perhaps a better way to qualify homeowners for mortgage loans is to start with the family’s existing budget and projections and develop a realistically affordable house payment based on current and projected net income and monthly expenses. Remember, every family’s situation is unique. We need to tailor their house payment to their budget, not the other way around.

Published: June 1, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Millions of Foreclosures, More Renters and Multi-Family Sales

by Michael Minervini

www.RealtyTimes.com

Look around and you may notice that 40% or greater of your marketplace is distressed properties. These properties may be comprised of short sales, foreclosures, REO™s and even owners about to go into pre-foreclosure status.

According to some accounts, there may be over 8,000,000 projected foreclosures in the United States for the year 2009. In fact, according to RealtyTrac there were nearly 750,000 foreclosures filed in the 4th quarter of 2008 alone. To further illustrate this point, nearly 15.25% of FHA mortgages were in default in the first half of 2008 and nearly 33% of all mortgages were in default in the first 3 quarters of 2008.

With these staggering numbers being realized throughout the country, many visionary agents are taking aggressive actions to stay ahead of the curve. You may have noticed an increased amount of agents in your marketplace specializing in short sales and foreclosures. Since the marketplace looks to remain full of these types of sales for the next several years, this may prove to be a wise endeavor.

New Focus on Multi-Family Investment Properties:

Another smart decision that many agents are making is to become proficient in all aspects of multi-family sales. Agents are quickly learning that there is an undeniable direct correlation between foreclosures and multi-family sales. The fact of the matter is that due to home foreclosures, the following positive effects are taking place in the multi-family market:

1. There is an abundance of former homeowners becoming tenants
2. Rental prices have stabilized in areas where rental prices were statistically dropping
3. Rental prices have increased in stronger metropolitan areas
4. As a result of these factors, vacancy rates in multi-family properties have decreased
5. Also due to these factors, the value of multi-family sales have increased

In essence, the multi-family market is benefitting from the downturn of the general market. This means that educated agents in the field of multi-family homes are reaping large gains. Agents today seeking to learn all that they need to know about multi-family properties are earning the œMulti-Family Specialist ® real estate designation. They are choosing to earn this certification so that they can react intelligently to the positive turn in the multi-family marketplace.

Educational Solution: Multi-Family Specialist ® (MFS) is the only certification and designation available to real estate agents which is specifically geared toward multi-family properties. Multi-Family Specialist designees have the ability to differentiate themselves in this very competitive market. This is due to the fact that agents who previously only focused on single family sales can now confidently approach and target multi-family property owners and display the array of knowledge that they have in this specialized field. Additionally, MFS members can effectively demonstrate to investor purchasers their ability to translate facts and figures from an investment property to determine the true appeal of the subject property. Only until the introduction of this informative designation, many agents have avoided the multi-family market. By earning the MFS designation and adding this additional niche to their sales portfolio, agents are increasing their income dramatically. Earn the MFS designation today by logging onto www.MFspecialist.com and begin to tackle this untapped market today! Questions Answered:

Agents who earn the MFS designation will be able to respond intelligently to their client™s questions. Agent will be able to inform their buyer and seller multi-family clients about many important topics, such as:

• Determining the value of the investment property
• How to build value on their investment property
• How to obtain and retain tenants long term.
• How and when to sell their multi-family investment
• How to locate a multi-family property
• How to produce and understand a profit and loss statement
• The basics of 1031 tax deferred exchanges and much more!

Agents wishing to earn this powerful and timely designation can register for and take the online course at www.MFspecialist.com. The course is taken online in the comfort of your home or office and is done at your own pace. Agents will read course materials online with the assistance of the corresponding video that is segmented by chapter.

Published: May 27, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Wanted to share with you some valuable information that lenders must all abide by for Anti Flipping guides for purchase transactions:

 FHA LOANS:

·                 Foreclosures: if currently owned by a bank as a Foreclosure there is no Title seasoning required, buyer can purchase and close anytime.

·                 Private Investor Purchases Bank Owned/Foreclosure/Auction: If a private investor purchases a property from a bank/foreclosure/auction, and flips property, that investor must be on Title 90 DAYS before new purchaser can close.

·                 Private seller to another Private seller, (no foreclosure or short sale): Current owner must be on Title 90 days before new purchaser can close

·                 Short Sale: Current owner must be on title 90 days before new purchaser can close (most likely current owners already on title for more than 90 days)

 

CONVENTIONAL: No one standard flipping rule currently. However, most lenders will have internal flipping rules, that override Fannie Mae/Freddie Mac guidelines. If there has been a significant increase of value within a very short period of time, bank may request an independent field review of appraisal. Additional documentation may be requested if investor flips property and value is significantly increased. There are other additional requirements and each bank may have their own rules, so be vigilant of flips!

 

 

Got a call today with a very good question:  Question:   œCan a buyer purchase a home after relocating with a short sale on previous home?  Answer: œNo “ they can™t purchase until 2 years pass and no other delinquencies happen on credit HOWEVER they should have¦¦.      See below:  SOLUTION “ FHA & VA will allow current homeowner™s to utilize rental income to offset mortgage if they are relocating. FHA & VA also waive the requirement of having to demonstrate 75% equity in current home to offset current mortgage.  SUMMARY: If you are working with anyone relocating from another area (has to be a significant distance to qualify for relocation) and owns a home they can™t sell, they can rent existing property and may qualify for a new FHA/VA loan. The rental vacancy for this area is 15% (85% of total rental income can be used to offset mortgage per FHA guides). Must have signed lease and we may have to verify that deposit check or 1^st month™s rent check has cleared.  Call me with any questions, or email any scenario you wish to discuss,

 

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

If you are serious about building a business, YOUR business, then you owe it to yourself to learn more about Keller Williams. We take great pride in building a career worth having, business worth owning, and lives worth living. If you want to launch into a supportive and professional environment that is uniquely creative, give us a call today.
Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Investor Report: Bank of America Short Sales

by Kenneth R. Harney

www.RealtyTimes.com

Investors looking to acquire houses through short sales just might be in for some good news.

One of the largest holders of second liens in the U.S., the Bank of America, says it’s relaxing its policy on payoffs connected with short sales.

That’s important because large banks have been major impediments standing in the way of thousands of short sales, demanding money for home equity lines and second mortgages that would otherwise be worthless if the short sale property went to foreclosure.

Bank of America had been among the least cooperative of all banks in agreeing to short sale payoff terms, according to industry critics.

The company’s policy was blunt: Pay us 10 percent of what the homeowners owed on the equity line balance or second mortgage, or we won’t sign off on the short sale, which is necessary for the deal to go through.

Now the bank has adopted what spokesman Terry Francisco told Realty Times is “a less arbitrary, more rational” policy.

“What we’re saying (to short sale proposals) is — give us an opportunity to participate and gain at least some of the savings” that will go to the first lien holder — the primary lender on the property — by avoiding the high expenses and losses of a foreclosure, according to Francisco.

Bank of America is now asking for five percent of the sale proceeds on the short sale, net of realty commissions, closing and other costs.

The bank believes that should open the door to more successful transactions, as well as more fruitful negotiations with buyers and sellers to avoid foreclosures.

But not all short sale market experts are convinced that’s the case. Raffi Tal, CEO of Los Angeles-based I-Short Sale, Inc., one of the largest players in the field, says Bank of America’s new policy “will still jeopardize” many short sales that involve its second liens.

The bank’s previous 10 percent policy meant they’d demand $20,000 on a $200, 000 equity line balance, or they wouldn’t bless the deal. But their new policy still means “they want $15,000 if the net proceeds are $300,000″ on a short sale, Tal told Realty Times — even though the economic value of their holding may in fact be zero.

Bottom line for investors: If there’s a Bank of America second mortgage or credit line on the house you’re after in a short sale, work the new numbers. At least some of the time you might be surprised that the answer from the big bank is now ‘yes.’

And watch for other major banks to follow suit.

Published: April 24, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Six Characteristics of Champion Teams

by Dirk Zeller

www.RealtyTimes.com

Through the years of research and working with teams and coaching them to the Champion Team level, there is a repeating pattern of what they possess, implement, and do. They are focused on results and actions unlike lower performing teams.

Standards

There is a set of standards of production, performance, and conduct for each position on the team. These are established by position first at the Champion Performer level, so the employee knows clearly what is expected. They have a target to shoot for since most will not be there yet.

A second set of standards for staff members needs to establish a pathway to the Champion Performer level. What do they need to do, learn, and improve on? What responsibilities must they take over in what time frame? For production assistants, what sales, prospecting, lead generation, lead conversion, and sales ratios must they attain over time to hit the Champion standard?

Accountability

This is an established system of accountability through written reports that must be handed in at regular intervals either daily for new or under-performing people or weekly for others who are on track or doing well.

Champion Team Rule “ Performance improves faster when performance is measured and reported.

You must measure and report the performance of your team members. They need to know that you are watching and monitoring their activities. They must know that you are willing to hold them accountable to their commitments.

Cooperation

Everyone needs to be working toward a common set of goals. They all need to view the team win as the real win. They need to see that the individual win in their success or production, at the expense of everyone else, is a loss.

If there is an antagonist on the team, no matter how much they sell or produce in the administrative area, corrective action must be taken. If someone lowers the motivation of team members, a change is in order. If that person lowers your motivation, they need to be gone . . . now!

Caring

The best teams really care about each other and their clients. They cover, encourage, help, and support each other to achieve greater success. They care about the goals and objectives of the team and each other and work for a win for everyone on the team, the company, and the clients. They also band together during times of adversity to overcome all obstacles. You will never hear, œThat™s not my job.

Competitive

The purpose of a Champion Team is to win. The members of the team love to compete in the competitive game of real estate. All team members are competing to bring in more leads, provide greater levels of service to the clients, and position the team as the expert team and the only choice in the marketplace for real estate representation. Their philosophy is like Al Davis of the Raiders “ Just win, baby!

Value is shared

Everyone aligns with the values of the team. They embrace the business vision, core values, and envisioned future of the team. They understand, agree, and desire to live the values of the organization, both in their personal lives and business lives. It™s as if the team is a tug-of-war team pulling in perfect harmony and unison to win the tug-of-war.

Published: April 24, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Market Conditions

by Realty Times Staff

The National Association of Home Builders is reporting that production of single-family homes is unchanged, despite falling housing starts.

“Today’s numbers are right on target with NAHB’s forecast, which anticipates that housing starts will bottom out in the second quarter, after new-home sales have stabilized,” said NAHB Chief Economist David Crowe. “Single-family starts remained virtually unchanged over the past three months, indicating that we are closing in on a bottom. Multifamily starts “ which tend to bounce around from month to month — were responsible for the decline in total starts as they readjusted following a substantial gain in February.”  

Crowe noted that while builders have been seeing more sales office traffic and fielding more calls in recent weeks as consumers respond to historically affordable home buying conditions, many continue to grapple with a severe credit crunch for acquisition, development and construction financing (AD&C). “A substantial recovery in housing of the kind that’s required to help get the national economy back on its feet will not happen until the logjam in AD&C lending has been broken,” he cautioned.

Total housing starts were down 10.8 percent and multifamily starts were down 29 percent in March. The only region seeing a rise in starts was the Midwest, up 16 percent.

Published: April 22, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Can’t Sell Your Home? Why Not Rent it?

by Phoebe Chongchua

www.RealtyTimes.com

It may not always make sense to sell your home. If that’s the case, renting it could be a good option. But understanding the rental process and using expert help will alleviate extra stress.

Dr. Danielle Babb is the author of The Accidental Landlord. She shared five top tips for homeowners who are considering renting their home.

Emotionally disconnect from your home. As you can imagine, this can be a very difficult thing to do — especially if you’ve lived in the house for a long period of time and maybe your kids have grown up in it — but it’s an important step.

œIt can cause some emotional distress and you may find yourself too attached for the new tenants liking and their privacy rights. When you make the decision to rent out your home, it needs to feel similar to how it would if you were selling it to someone else, says Babb.

Screen your tenants. Don’t fast forward to thinking about having wonderful tenants in your home so much that you skip over the screening process. Attending to this process alone, can eliminate huge headaches in the future.

Babb cautions landlords about scams aimed at landlords who don’t screen. œThere are actually “professional tenants” out there that do nothing but find susceptible landlords, usually those renting without a management company, that don’t screen tenants. They will give a deposit, and live rent free (not paying rent), knowing you won’t know what to do or how to kick them out, says Babb.

She outlines several steps in her book that help landlords learn more about removing tenants but she says, œThe most important thing is not to let the bad ones in to begin with.

Babb says in her book as well as on the Landlord Protection Agency website there are screening worksheets that help landlords know what types of questions to ask and what red flags to look for.

œFor instance, are they not taking care of their car? Maybe they won’t take care of your house either and make sure you call those references! Compare what they tell you to what is on their credit report, and make sure you do a credit and background check. Know who you are renting to, and don’t be afraid to say no, says Babb.

Know the law. There are specific laws to protect the tenant. How much the tenant is protected differs greatly from state to state.

œThe laws you must abide by are the laws the home is in. You have to tailor your lease or rental agreement to that state’s rules. You can easily find these on the Landlord Protection Agency site and then modify the lease agreement accordingly, says Babb.

To learn more visit the LPA: thelpa.com

She says, œCommon changes are how much notice you must give for them to vacate, the maximum deposit you can collect, and notifications for entrance.

How much rent? œIt’s easy to say, ‘Okay, I have $2000 in expenses, Ill charge $2100,’ says Babb.

But just like when selling your home, it doesn’t work that way.

œThe market may only bear a rental comp of $1500. You have to make the decision if that $500/month is worth the long-term gain or whatever your initial reason was for holding rather than selling, says Babb.

Real estate agents can be a great resource for helping to determine what the best rental price should be. They can show you homes in the area that are also for rent and, just as when selling, taking a look, or at least, driving by the homes gives you an idea about the competition.

œYou may get more if you leave it furnished; sometimes you can lease furniture and up-charge and make a profit on it, particularly in areas where young families are starting out or college students frequently live. Just be sure you price it right — all of those extra months on the market eat into that profit or breakeven point. No matter what, be sure you collect a sufficient deposit — usually one months rent, plus a pet deposit and additional monies for other reasons, like appearing to be a risky tenant, says Babb.

Who is responsible for what? Important, but tricky question. Depending on which side of the fence you sit, you, of course, may see this differently.

Babb says, œIf something breaks, you have an obligation and lawful duty to fix it immediately if it affects quality of life or poses a hazard. But, if the tenant just wants something upgraded, that isn’t a requirement. You have to walk the line between having your tenant stay long term because you’re easy to work with and paying too much for little things. You can let the tenant make upgrades that they pay for if you wish.

Babb adds that incentive programs also help a good tenant to stay longer. œFor instance, I give my tenants a $25.00 or $50.00 off rent coupon if they pay 5 days early and pay direct deposit. This saves me considerable time. She says landlords should beware of partial rental payments such as a tenant paying only $100. œIf a tenant sends you a partial rental payment, say for $100, and you cash it, it may start the clock ticking all over again on evictions! These are the types of things that professional tenants do.

Renting doesn’t have to be a scary process; it does have to be a well-researched and carefully planned process to ensure the best outcome for all.

Published: November 7, 2008

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Housing Most Affordable: May be Time to Move from Renting to Owning

by Phoebe Chongchua

www.RealtyTimes.com

Falling housing prices, historically low interest rates, and tax credits are creating an enticing environment for renters to convert to homeowners.

“We are still going to have a tremendous amount of foreclosures, price declines, and best opportunities to buy properties at amazing prices,” says Bruce Norris of The Norris Group.

If that sounds like a mixed bag of bad and good, indeed it is. Consumers have been inundated with news about a troubled real estate market. “If you look at the closings for California, 55 percent or more closings every month are lender-owned properties; that ratio has never existed before. So, the lenders are really dictating the prices at this point and there are so many [lender-owned properties] that the appraiser almost has no choice but to give that comp a lot of credence,” says Norris. But the good news, especially for those who have been wanting to take the plunge into homeownership is that markets across the country are ripe for choosing the most suitable home.

“The affordability has never been this high. So, in relationship to income, California is the cheapest it’s ever been. The fact that prices will still go down kind of means nothing to the person who is going to live in a house for quite a long time — partly because the interest rates are also historically low,” says Norris.

He points to his own daughter as an example. She is getting married this year and buying her own house for the first time.

“I think it’s a very bright decision. Do I think her neighborhood might go down for another year-and-a-half, yeah”and to that I say, who cares! She’s tying up an interest rate that’s probably under 5 percent for 30 years and that may be the real bargain,” says Norris.

Her fiancé owns a home but Norris and the couple agreed that her buying a home now is a good opportunity. So after the couple marries they will live in the home in order to receive maximum financial benefits. His daughter is using an FHA loan and putting $4,000 down on a $110,000 California home that was, at the height of the real estate boom worth, $330,000. She will then get a federal tax credit for $8,000 and she can receive that money (in as few as 10 days) now rather than waiting until she files her 2009 tax return. Best of all, the mortgage [payment] is less than it would cost to rent.

This is a trend that is playing out in many areas across the country. “Fortunately, the interest rates are national so you have that incredible interest rate that is forcing the [mortgage] payment below rent in many locations, including California. So the area that my daughter is buying in, her rent would be $1,100 and her [mortgage] payment is going to be about $825,” says Norris.

Norris says that, coupled with the federal tax credit for first-time homebuyers, is making renters weigh their options, “It really is an inducement for people to go from being a renter to an owner.”

“There are lots of areas that didn’t go up as much as California. Let’s pick an area, Texas, for instance, you have houses selling for $110,000 to $120,000 range and the rents there are also pretty high–$1,100 – $1,200 or so”so payments there are also a lot less if they own it,” says Norris.

“It’s most affordable right now, so you would think that everybody would want in, but real estate right now has a lot of fear attached to it and a lot of uncertainty about jobs,” says Norris.

Some markets such as California are working to help alleviate barriers to home ownership. The California Association of Realtors in April introduced the Housing Affordability Fund’s Mortgage Protection Program. There are specific eligibility requirements; talk to your Realtor for details.

“People who buy property in 2009 have a safety blanket now of six months of up to $1,500 payments per month that the California Association of Realtors, out of some fund that it has, will pay the people’s payments,” says Norris. He adds, “I’ve never heard anything like it.”

Norris says while these programs to entice renters to become buyers are attractive, he says make sure you’re ready to buy. He says there are specific habits that you should have in place before buying a home.

“You should already have developed a savings habit and you’re ready to buy a home because you have a little bit of money left over in case something goes wrong,” says Norris.

Another affirming reason to move from renting to buying comes from statistics from John Burns Real Estate Consulting in Irvine, California.

The company reports that 50 percent of the 76 metropolitan area markets across the U.S. that are tracked show that people can buy a house (after tax cost of homeownership considered) for less than they could rent one.

Published: April 10, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Market Conditions

by Realty Times Staff

Most have heard about the $8,000 tax credit for first time homebuyers. Here are a few tips to see if you are eligible and how to go about claiming it.

According to the National Association of Home Builders, you must have purchased a home from January 1 to December 1 of this year. To be considered a first time homebuyer, however, you only need to have not owned a home in the last three years. This is great news for those who have bought before, but have been out of the homeownership game for a while. The buyer must also “have a modified adjusted gross income (MAGI) less than $95,000 for single tax payers or $170,000 for married filers.”

To claim the credit, buyers complete IRS Form 5405 to calculate the amount of the tax credit, and enter it on line 69 of the IRS 1040 income tax return. And you can only make a claim once the purchase of the home is complete.

More information on the first-time home buyer tax credit can be found at www.federalhousingtaxcredit.com.

Published: April 10, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Keller Williams Gets Agents, Brokers On Same Side Of The Table

by Blanche Evans

www.RealtyTimes.com

Profitability is the issue for both brokers and agents. When one makes more, the other makes less. Agents negotiate for bigger portions of the commission, yet they want more service from the broker. The broker wants agents to sell more and to recommend in-house ancillary services to consumers.

Are they adversaries or partners in each other’s success? Sometimes it’s hard to tell from the bitterness they show one another. Is there a better way?

The Keller Williams business plan puts brokers and agents on the same side of the table instead of negotiating against each other, explains Dave Jenks, vice president of research and development and dean of the Keller Williams University.

“Sometimes where people miss the point is they don’t take the big view,” says Jenks. “They stay in the nuts and bolts. We are excited to give them a big-picture look at what can happen to them in their real estate career. The issue about ownership is wealthbuilding.”

He says what prevents wealthbuilding is “Us VS Them” thinking.

“There are lots of complaints. I’m an agent and I think you are keeping too much of the money,” explains Jenks. “I can go down the street, and it will cost me half as much to be there because of the commission split. You don’t have enough staff. When I need a report or to put something in the MLS, I can’t get it done. This software is crap. We need better software. We need better fliers and information in our listing packages. We need a four-color brochure about how we are better. I need someone to help me design my own personal marketing.”

He continues, “A lot of traditional shops where owners keep more are starting to bill back, and the agent is saying you are nickel and diming me to death. You’re ripping me off for all these bill-backs. Why should I have an individual card for long distance calls? I have customers trying to reach me at night – how come someone isn’t here to answer the phone? I have been here seven years – why is my office so dinky? I need more space, and on and on.”

Broker/owners have their complaints, too. “Agents don’t appreciate what I do,” Jenks mimics. “They waste materials. They beat up on the staff. I keep putting supplies of brochures and if I did a trunk check, I’d be able to collect 5000 brochures that are getting warped and wet. What is happening to our lockboxes? We have 200 active listings and 300 lockboxes are unaccounted for? Agents want ads – I need my agents to get more listings.”

He says that if agents become owners, then they automatically want to be on the same side of the table as the broker/owner, especially while making decisions about how the brokerages’ resources are spent.

“You need to let agents make decisions with you,” suggests Jenks. “Brokers come up with a brilliant idea and change things in their office and change is always problematic if agents don’t have a say.”

Here’s how the Keller Williams plan works. Agents are paid as agents, but they have a second revenue stream as recruiters. Agents are paid a percentage of the production of their recruits and their recruits’ recruits – up to seven levels. The profits generated by the recruits can help pay agents beyond retirement and to the agents’ heirs after death. Any significant decision at a Keller Williams office must be made with a board of directors consisting of the owners and the agent leaders because they are given a stake in the success of the office through recruiting and through ancillary services which they also own part of.

“You have to be in top 20 percent of producers in the company, so that the decision making body is made of the people who do the most in production. That makes a lot of sense,” says Jenks

Then you have consensus between the owner and a body of agents, says Jenks. “The two things that I would say are fundamental is that the agent gets to keep more of the money, and if they have to spend money on their business, they get to choose how that money is spent.”

He explains, “If you are looking at another model where the brokers keep more, they have agents who expect more to be done for them, and they are justifying to the agent ‘That is the reason you want to be with us is because we do more for you. You don’t get as much commission, but we reduce your costs.’ We’ve found that the agent would rather spend the money than somebody else spend it for them. They get to promote themselves to a targeted client base instead of the company spending the money. They might spend the money differently, if it were their money to spend.”

“They can’t go spend the owner’s money but the owner’s decision needs to come by them when changes are made,” suggests Jenks, “then it is the leaders of the council who bring the idea back to the sales meeting. ‘Here’s what we decided and why.’ It is a good business decision-making system. It goes back to the original hook. It moves the agent more on the same side of the desk as the broker/owner and gives them a chance to understand why things are being run the way they are being run.”

Jenks report that profit-sharing was way up this year. “Through October, last year, profit-sharing was $6.3 million,” says Jenks, “and this year, it was $11.5 million, and it is on track to more than double in one year. Owner profits, and that is net profits (all losses against all gains) last year was $3.4 million. This year, it was $12.8 million. We have 284 offices. That’s about $50,000 profit per office, but that figure includes all offices, including 70 offices that just opened this year that aren’t profitable yet. Subtracting those losses, it is a net total.”

He says, “The trend that is important is the increase from $3.4 to $12.8 million in losses against gains. The average office total profit was $101,000. The top 25 office made $380,000. If owner profits have gone up that much in one year, that means that more and more, our model is working for people.”

So what are some ways brokers can get agents on the same side of the table?

“I call it the battle for company dollar and bottom line,” says Jenks. “From an owner’s point of view, that is what it is. You are battling how much can you justify having your agents pay you as a percent that you get to keep as company dollar and take the best to the bottom line. The struggle for most owners is the difficulty in getting agents to cooperate with them.”

A big issue is who pays for consumables. Keller Williams solves the problem with transaction coordinators, graphic artists and other professionals whose job it is to take the contract to closing. But how do you handle the people who waste resources?

“This is a bill-back-for-service model,” says Jenks. “The best offices are trying to run a similar model and we create an office environment where you can do that less expensively.”

So how do you get rid of the us VS them attitude? “You have to get your leaders to understand and trust how you keep your books,” suggests Jenks. “If they don’t know, they can think whatever they want, they see the broker’s success. If you are wiling to open your books and let them take a part in the finances of the company. the best producers will be the opinion leaders, and second you have to give them a reason to care. It is a relationship-based business. Owners who are respected and loved and trusted by agents have built an environment where agents aren’t working against them. It helps to give them a tangible financial reason to care about profitability of office. That is where sharing of profits gives that tangible evidence.”

Advises Jenks, “Another way is to teach them to run their practice like a business. As an owner, if you will step up and say, ‘My goal is to help you build your practice and I’ll teach you how to do it.’ Then take them as far as you can.”

Published: December 18, 2003

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

Blog@MyNvaHomes.com

Investor Report: Strong Segment of Market

by Kenneth R. Harney

www.RealtyTimes.com

Purchases of houses for investment purposes continued to be among the strongest segments of the real estate market last year — and accounted for more than one out of five of all home sales in 2008.

That’s a key finding of the latest annual study on second homes and investment purchases conducted by the National Association of Realtors.

The investor market share last year was 21 percent, the same as the year before, but down several points from the height of the housing boom in 2005 when it hit an all-time record of 28 percent.

Second homes and vacation property purchases, on the other hand, dropped last year to just 9 percent of the total market, down from 14 percent in 2006 and 12 percent in 2007.

What sort of properties were investors buying for rentals? Two out of three were detached single family units last year, while 22 percent were condos or duplexes. Eight percent were attached townhouses or rowhouses.

Investors kept their purchases pretty close to their home base — following the long-standing rule — œinvest where you know the local market best. Fifty four percent of all investment houses were located within 20 miles of the investor’s own home, and roughly two out of three were within 50 miles.

Investors also opted for considerably lower priced properties last year. The median sale price of a rental unit in 2008 was $108,000, according to the Realtors study. That compares with a $196,000 median for primary residences and $150,000 for second home and vacation properties.

During the boom years, by contrast, investors tended to buy much higher priced units, a median of $189.000 in 2004 compared with a median of $204,000 for vacation units.

Given last year’s credit crunch, more investors apparently avoided banks and mortgages altogether. Forty two percent paid all cash for their purchases, versus just 15 percent of buyers of primary residences and 31 percent of vacation home buyers.

Far larger numbers of investors bought their units in distress situations — one out of six was a foreclosure or trustees sale — which is no surprise given the huge numbers of R-E-O and auctions that dominated many local markets.

So what did the typical investor look like last year? They tend to be older — with a median age of 47 years compared with 37 for primary residence buyers.

But interestingly, they were not wealthier than other buyers. In fact, second and vacation home buyers had higher median household incomes — $97,000 – compared with $85,000 for investors.

Published: April 3, 2009

Thomas Merical

http://www.mynvahomes.com/

http://www.findahomesellahomenow.com/

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Mortgage Rates Fall Again This Week, Hitting Another Record-Breaking Low

McLEAN, VA — Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.78 percent with an average 0.7 point for the week ending April 2, 2009, down from last week when it averaged 4.85 percent. Last year at this time, the 30-year FRM averaged 5.88 percent. The 30-year FRM has not been lower in the life of Freddie Mac™s weekly survey, which dates back to 1971 for the 30-year FRM.

The 15-year FRM this week averaged 4.52 percent with an average 0.7 point, down from last week when it averaged 4.58 percent. A year ago at this time, the 15-year FRM averaged 5.42 percent. The 15-year FRM has never been lower in the life of Freddie Mac™s weekly survey, which dates back to 1991 for the 15-year FRM.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.92 percent this week, with an average 0.7 point, down from last week when it averaged 4.96 percent. A year ago, the 5-year ARM averaged 5.59 percent. The 5-year ARM has never been lower in the life of Freddie Mac™s weekly survey, which dates back to 2005 for the 5-year ARM.

One-year Treasury-indexed ARMs averaged 4.75 percent this week with an average 0.6 point, down from last week when it averaged 4.85 percent. At this time last year, the 1-year ARM averaged 5.19 percent. The 1-year ARM has not been lower since the week ending September 29, 2005, when it averaged 4.68 percent.

œMortgage rates followed other interest rates lower this week amid reports of slower economic growth said Frank Nothaft, Freddie Mac vice president and chief economist. œThe final estimate of economic growth in the fourth quarter was revised lower and personal incomes fell 0.2 percent in February, below the market consensus.”

œOn a positive note, pending existing home sales rose 2.1 percent in February, marking the second increase in three months as potential homebuyers are taking advantage of historically low mortgage rates and falling home prices. Serving as a spur to sales, housing affordability reached an all-time high in February 2009 since the series’ inception in 1971, according to the National Association of Realtors ®. By region, sales surged by nearly a third in the Northeast and Midwest, but fell in the West.

Published: April 3, 2009

Thomas Merical

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