Selling Your Home?

April 30, 2012 By Leave a Comment

Here are Some Things to Look Out For

Selling your home is an emotional experience. You have your life tied up in this home; you have great memories of children and grandchildren in the home. It is human nature to look around and reminisce. It is hard to look at the wood work you painstakingly built in your home or finding just the right color for each room. You know this will be an emotional roller-coaster; so you have to safeguard yourself from making silly mistakes when trying to sell your home. Don’t let yourself get caught in the emotional trap. Here are some suggestions that can help you avoid your emotions from ruining the sale of your home.

Catch One:     Decide beforehand that this is just a business transaction. Use it as a daily mantra  – “Just a business transaction, no more, no less”. Concentrate on your new home and how excited you are to be on to something different. We have moved many times and you have to realize that change is good for the soul.

Catch Two:    And this one will actually be to your ultimate advantage. Go through your home and de-clutter. This is a time consuming job, but it will be most helpful when it comes to packing. Throw away all the old toys, stacks of papers, collections of silly things, clothes that no longer fit, old shoes, and stuff in boxes that have been stored in the attic or garage since you moved in twenty-five years ago. If you haven’t used it in the last six months; let it go. You can’t believe what a relief it will be to you later. Give it all to charity or sell it at a garage sale or on Craig’s List and make some money; but get rid of it. Clear your home of personal items. Pack them away now and you will have a head start. This gives you a chance to see your home, as not really yours anymore and makes it easier to let go.

Catch Three:    Clean and repair all that you can. Make your home sparkle like new. Clean grout and re-calk kitchens and bathrooms. Clean baseboards and lighting fixtures and don’t forget blinds, windows and sills. Repair any leaks and clean away any mildew smells with bleach products. Repair broken tiles and clean or replace stained carpet. A fresh coat of paint is inexpensive and can do wonders. Don’t forget your front and backyards. The greener the grass the more appealing it is. Plant flowers and hang baskets, use colorful pots and plants. And make sure all outdoor toys and bikes are in their place. Don’t forget to have the same sparkle when you have your home appraised.

Catch Four:    Don’t over price your home. In today’s market there is so much competition, so make sure you have it priced at market value. Give buyers full disclosure of your home’s flaws. No matter how much you love it; no house is perfect. Be honest and upfront. Hopefully, you have already taken care of any repairs that needed attending to.

Catch Five:    Here are two showing, don’ts. Don’t limit the showing times. I know, personally, how annoying and stressful this can be, but the more people into your home the better. If you make it difficult, it does make an impression on the buyers. And second, make sure that your realtor enforces that no one but pre-qualified buyers get into your home. There is absolutely no reason why they can’t screen them beforehand and save you all the stress of keeping your home spotless.

Catch Six:    This will really lessen the chance of you letting your emotions take over; leave the home when it is being shown. This will save you and the potential buyer a lot of stress. You don’t have to be hurt by any criticism of your home and the buyer can ask more questions and feel freer to talk about your home.

Catch Seven:    Don’t quibble over the little things. Many people have lost home sales by quibbling over what stays and what goes. Leave emotion aside and get back to the mantra—“Business transaction, no more, no less”. If it could kill the deal; let it go. Or if something needs repairing; negotiate civilly with the buyers. In this market, selling isn’t easy. So make sure you do all you can to make your home stand out amongst all the rest.

Filed Under: RateWindow Homebuyer's Guide Tagged With:

More Jobs Crushed On Obama’s Watch

April 30, 2012 By Leave a Comment

The Labor Department Hits Farmers With More Regulations

From the beginning of time, sons, daughters, cousins and neighboring youth have helped on the family farm. The Labor Union is now regulating that practice. They, of course know better than the Farmers who have worked the land for generations. These new regulations will not allow young people 12-16 to have summer jobs that they have had for centuries. This is usually the only income they have in the farming communities. Of course, there are dangers, but they could restrict the 12-16 year olds from operating the most dangerous of farming implements. And most farmers who have young people working for them are keenly aware of the most dangerous jobs and already give those jobs to employees, while the youth are assigned other jobs. Children will still be able to work on the family farm but will not get paid until they are 16 years of age. Now, I realize, like everything else, there is always some idiots who ruins it for everyone because they are either stupid or don’t care and I am sure this is why the Labor Department has come up with these rules. Farming is a dangerous job and farmers have to use good judgment. But for most of the family owned farms; farmers and their families have been doing this for generation after generation. According to the Labor Department, nearly 29 out of every 100,000 farm workers in the U.S. die on the job, according to the National Safety Council. Among workers ages 15 to 24, the rate is about 21 deaths per 100,000 workers. No one wants any child to get hurt or die. But, the rate of death for the same age group in car related incidences are infinitely higher. There are approximately 22 deaths per day for 15-24 years old.

The Farmer’s View

Many farmers are worried that these new regulations will affect the future of their farms. If their children and neighbor’s children are not able to experience farming and get interested in it at a young age they may leave the farm. And who will take over when their father’s retire? That would be the end of generations of family farmers who have worked that particular land for centuries. One fifteen year old, working on her father’s farm said, “Most kids my age don’t even have jobs….We already know what hard work is.” I think this statement says it all. Look around our Country. If even half of the 12-18 year olds were working on farms, how much better prepared for life would they be? And how much trouble they would avoid in their teen years? Think how much better our society would be with a generation of children who know how to work hard and have the self-esteem, knowing that they earned their own money (legally). Matt Muller, a farmer, says he worries about what these new regulation will mean to the future of farming. He said, “It’s very disheartening to me. Farming is not just a business. It’s a way of life.” Mr. Muller goes on to say, “They may have legitimate safety concerns, but I don’t think they’ve spent much time on a farm.” Mr. Muller took over his farm from his father and grew up driving tractors and sweeping out grain bins. He said farming is a lifestyle that he doesn’t think the Labor Department understands.

Safety vs. Self-Esteem and Hard Work

Mike Spradling, President of the Oklahoma Farm Bureau said that he didn’t think the rules were needed because farmers and rancher weren’t likely to assign teenager to the most dangerous jobs. He said, “Having young people around to help with the daily chores is a big help, and it frees up employees to do some of the more dangerous work.” Mr. Hancock of the Labor Department said that the regulations shouldn’t affect 4-H, Future Farmers of America or other educational programs. And they may, not keep children from helping on their grandparent’s or uncle’s farms if they are not paid. He also said, “I think there is a clear path forward for kids who want to pursue agriculture as a career.” So far the ideas of this Administration have not been good ones; this only cuts more jobs, I guess only time will tell.

Filed Under: RateWindow Homebuyer's Guide

Trying to Sell Your Home?

April 27, 2012 By Leave a Comment

Are Open Houses Worth the Trouble?

If you have ever tried to sell your home, you know that you need a realtor that will work for you. I know there are a lot of people out there that have sold their homes By Owner. I did it myself twice, after having  my home with a realtor for six months and longer with nothing to show for it, but my loss of sanity. Two weeks on my own and the job was done; signed, sealed and delivered. But, for the most part, it is a good idea to have an agent on your side; taking care of all the day to day advertising and showing the house for you. But, you must be wise in choosing a seller’s agent. You want someone who will sell your home quickly and be honest with you. You need to make sure that the agent doesn’t have his or her own agenda. We have sold many homes over the years as work has taken us across the Country and have held many Open Houses. We sold two houses that way, but these days things are much different. We have the Web and most people turn to the web first. You no longer have to look for open houses to see homes. You can see a home, a virtual tour, now with a click of the mouse.

The Emotional Toll

Open Houses cause an emotional toll on the sellers, especially, if you have children or animals or one in the same. The house has to be spotless and staged just right. Staging for the average home is about $1,800 and the more expensive the home the higher the price. You have to get rid of a lot of clutter, which is a good thing, although very time consuming. Everything must sparkle and shine. You have to find places to hide toys, clear kitchen counters, and wash windows so as much light as possible can enter the home. The yard must be weed free, green and trim. And after you have worked yourself to death; you are told to leave your home for four hours with all your children and animals and roam the streets; looking for some place that will be acceptable to everyone in your car. I mean, really, its torture. After years of realtors having open houses every other weekend; I would say, no. No, thank you, just put it on the internet and call it good.

The Only Good Open House

The only time I would suggest an open house would be when the realtor first lists your home. And allow him or her to have a broker walk through. It doesn’t take long hours, maybe one to two at most, where other realtors and brokers come through to see the home and then hopefully, they may have a buyer that will be interested. It is a good way to get your home out there and get more exposure.

Noisy Neighbors and Thieves

Open houses tend to be mostly attended these days, by noisy neighbors who just want to look into your home and see what you have done to the place. Also, thieves are eager to have the opportunity of just walking into a home that is attended by just one person. The realtor will try and watch your home during the open house; but cannot be in all places at all times. The realtor will advise you to hide all your valuables or take them with you. But, a lot of prescription drugs go missing as well as jewelry. The small things that can be pocketed unnoticed. Open houses are no picnic for realtors, either. So my advice, they’re outdated and counterproductive and the cause, of mental and emotional stress that will continue you to stay with you way after you have sold your home. Use the Internet!

Filed Under: RateWindow Homebuyer's Guide Tagged With: , ,

Oh, Give Us All A Break, Mr. Raines

April 24, 2012 By Leave a Comment

Go Back to Your Embarrassing Exile

In an article in the Wall Street Journal, Alan Zibel wrote about the former chief executive of Fannie Mae, Franklin Raines. Raines spoke to the National Community Reinvestment Coalition. He hasn’t been speaking much since his embarrassing, accounting scandal in 2004, where he was forced to leave Fannie Mae. By the way, Fannie Mae (you, Taxpayer) is still paying his mound of legal fees. He is back on the liberal bandwagon, blaming the housing crisis and therefore the entire financial crisis on investors and Wall Street.  It is a tired old line spun by the liberal democrats and the White House to disavow them from any blame. Their tired rhetoric that everything bad in this Country was Bush’s fault, or Wall Street’s fault or caused by global warming and many other such ridiculousness, needs to end.

Raines’ Rhetoric

It wasn’t our fault…. And then he tries to infer that the American home buyers are the culprits, that people are blaming them?! He says, “This (the mess we are in now) has nothing to do with the average American family wanting to own a home…This was rank speculation that was being financed out of Wall Street with no questions asked. That is what caused this crisis. Blaming people — ordinary people — who tried to own a home for this crisis is simply wrong.” Mr. Raines, just who is blaming the average American for this mess?  I think that would be, no one; except you and your liberal friends, using them as a scape goat. Really? This is even low for the crazy left fringe. He goes on to say that an influx of investors into the housing market — rather than the government policy –  was the main cause of the market’s collapse.

Who is to Blame? The Truth

First and foremost, let’s put the largest blame where it belongs; right in the lap of a liberal democratic Congress, who obviously does not understand the financial world. I am sure that is one of the major reason’s Harry Reid has not passed a budget for the last three and ½ years. They do not understand that you cannot keep spending when the coffers are empty. But, I digress.  The liberal Congress passed laws forcing the banking industry to lower its standards for obtaining a mortgage; especially for those who wanted a home but could not afford one. In essence, they weren’t helping low income Americans but, setting up these American families to fail. It goes back to the same financial principle: if you can’t afford it, you can’t buy it right now. You have to wait and save until you do have the money.  It must be something in the wiring of the liberal mind that makes it impossible for them to get that. Just look at the President. He says don’t worry, I’ll fix this and throws billions of dollars that we don’t have on the problem. Well, we have seen how well that works. It doesn’t, it is not a sound financial principle. And even crazier, when he is using money that we don’t even have, it is borrowed and the American debt grows every second of every day.

Now, I know that this crisis was not the result of just the inept liberal Congress. There were a myriad of circumstances that came together to cause this economic crisis. The housing bubbles causing outrageous home prices in many areas of the Country, Wall Street, does have its share of the blame, September 11, 2001 and the wars that followed, and many more things happening causing the perfect storm. But, first and foremost were the Congress and Fannie Mae and Freddie Mac and the absolute corruption between members of Congress (like Frank and Dodd) and the heads of these government- backed agencies. I am sick of this ridiculous blame game of the Democrats and the Whitehouse. Man up, and take care of the problem. Your way hasn’t worked; it is time to change tactics!

Filed Under: RateWindow Homebuyer's Guide Tagged With: , , ,

Drought is Not the Only Thing We Have to Look Out for This Summer

April 24, 2012 By Leave a Comment

The Insects are Already Moving into our Homes

With such a warm and dry winter for most of America, the summer months will be full of water restriction and pest control. In Texas, many cities have passed laws for permanent water restriction. In Plano, TX water restrictions have been in affect for over a year. People in the city are restricted to watering their lawn once every two weeks. And with an even worse summer predicted for Texas, I think Texans should take the summer off and head for cooler climates.

Spring is already here and the flowers and trees are blooming and the temperatures are warming and the nasty insects are here, ready to torment you and destroy your home. In all of the Country, except Alaska, termites are a great source of worry to homeowners. Unfortunately, it is not until most people actually see one that they call for the professionals. And by that time, those wood eating, home destroying insects could have caused great structural damage to your home. And if you see that your neighbors are having termites or carpenter ants problems; you can bet you do, too. Those tiny destroyers don’t stick to just one house but, infest whole neighborhoods.  Just writing this is making me itchy all over. Make sure that you do not stack wood against your home where termites would just love to live and hide on their way to your home.

Paint, Caulk and Fill the Holes

Make sure that all the wood on your home is painted, finished or treated to make it less attractive to wood destroying pest. It is always a good idea to check your home often for wasp and bee nests under the eaves, under roof shakes, wooden table or even barbeques. Buying a few wasp and bee catchers can’t hurt either. The same for flies. It will be a bad summer for flies because of the warm winter. And, don’t forget the mosquitoes. West Nile can still be passed on to you with an infected mosquito. Clear debris and any standing water that will attract mosquitoes and there are plants like rhododendrons that repel mosquitoes. You  are going to have to pull out the arsenal this summer.

Prepare For Ticks

It is also going to be a bad summer for ticks. They are usually found in tall brush or tree limbs. Most people think that they only bite pets, but they would be absolutely delighted to take a bite of you. These sick little insects are barely noticeable when they start out, some tiny as the head of a pin. If you spend a lot of time out of doors, you or your pet, check thoroughly before coming indoors. It is important to get them off you or your pet as soon as possible. Be careful, when pulling them off because it is easy to get the body and leave the head which will cause infection. Ticks carry Limes Disease, which is a serious long term and sometimes deadly illness.

Ants, the Old Reliable Insect

Ants, who burrow during the cold winter months are out busily swarming into your homes and patios. Most are harmless, but an incredible nuisance. Make sure that you do not leave any food out and keep counters clean and you should be good. Don’t forget the dog and cat food that can attract ants. You will also want to go around the outside of your home and fill in any areas where insects could get in, with caulk or cement. In the southern States, Fire Ants are a big and scarry problem. They can swarm up your leg in a matter of seconds of stepping on their mounds. They bite and the bites burn and swell and you are miserable for several days. And that is only getting a few bites. Many bites can cause anaphylactic shock and death. If you live in these States, keep a supply of hand sanitizer or liquid dish detergent on your person all spring, summer and fall. This will help with the burn. Experience tells me it is best to get a professional to take care of your insect needs. It could save you thousands in damage to your home.

Filed Under: RateWindow Homebuyer's Guide Tagged With: , , ,

Time Shares — An Anchor Around Your Neck

April 24, 2012 By Leave a Comment

It Seemed Like Such a Great Vacation Idea

It was a great vacation idea 4 years ago; but over the last 4 years it has become an anchor around the necks of time share owners. It was a great idea. You could drop everything and go to your vacation home and relax for a couple of weeks; no hotel bills, it was a home away from home in a wonderful place of your choosing. You could even swap locations with other time share owners. If Florida’s sun became old; you could change it for Aspen, Colorado and play in the snow and ski or even a quiet week at a lake. Your choices were endless. It was a great idea.

Four Years Later

It has become a noose around your neck. You can’t afford the maintenance fees (about $730 per year) and you can no longer afford to take a vacation. Many owners have lost their jobs over the last four years; costing them their homes to foreclosure. Many have been able to keep their jobs, but with fewer hours and a pay cut. The last four years have not been kind to millions of Americans. Every part of our lives have been changed for the worst either through job loss, foreclosure, very high gas prices, retirement funds wiped out, savings accounts wiped out, high food and clothing prices and much higher health care costs. And the list could go on and on. Let’s just suffice to say, the last four years have been abysmal.

It is Time to Sell the Time Share

With all the personal and countrywide calamities hitting us, it is time to rid ourselves of all unnecessary payments. And the Time Share is on the list. Your children don’t want it and trying to sell a time share is almost next to impossible. Many time share owners are giving them away. Many have been forced to sell their beloved time shares for $1 or $0 dollars. And many have had trouble even finding someone to take it for free. Few people want to pay the yearly maintenance fees. And many who are giving their time shares away are doing so with several years of fees unpaid. Nearly 50% of time share owners are delinquent on their fees. Just as the housing market has made it a bad time to sell your home; it is a bad time for owners of time shares and the time share business. The Time Share business is changing their demographics in order to boost interest and sales. They are pitching their vacation homes to higher income buyers.

Filed Under: RateWindow Homebuyer's Guide Tagged With: , ,

Cutting Tax Breaks for Second Homes

April 23, 2012 By Leave a Comment

Romney Mulling it Over

One of the ideas being mulled over by the presumptive Republican nominee, Mitt Romney, is cutting the tax break for the 1% when it comes to owning a second home. The idea he is considering is eliminating or limiting the mortgage interest deduction for high income individuals. These second homes include investment properties as well as vacation homes. These home purchases accounted for 38% of all home sales in 2011, according to the National Association of Realtors. The vacation states like Maine, Florida, Colorado and Michigan would be hardest hit, because of probable fewer sales. One expert from a housing and mortgage research firm said, “It’s a bad idea for all markets right now — what little activity is left on home sales is highly dependent on investment homes.” The Romney camp said it is only an idea being discussed to tackle the big issues facing America.

The Perfect Market for Investment Property

The sale of investment property had grown by 64% last year alone; whereas the purchase of primary residence homes fell nearly 16%. The timing is just right for the purchasing of investment property to use as rentals. The low interest rates combined with the low home prices creates the perfect time to get into the investment property business. And combine that with all the previous homeowners, who have lost their homes through foreclosure, the need for rental property is expanding. The National Association of Realtors is obviously against this idea, stating that it would lower home sales.

Paying Cash or Taking out a Mortgage

Most of the investment properties sold have been cash transactions and therefore there is no mortgage, making the tax deduction a moot point. Nearly 42% of the 64% of homes sold last year were all-cash purchases. Unfortunately, those that do buy investment property using a mortgage will be affected. The deduction helps lower the cost of the long term mortgage. According to Keith Gumbinger, of HSH Associates, a mortgage data firm; it is possible that the property investor would likely offer a lower price on the property and could bring down values of surrounding properties.

The Debate over this Proposal will Continue

This idea will be debated until the Election as Presidential hopefuls strive to come up with ideas to lower the Country’s deficit. Each side will be offering their own ideas on how to do this. Expert say that Romney’s idea is a good one and only affects a small group of high end earners (the rich) and could be a first step in scaling back this much debated tax perk for the wealthy 1%. Anything that can lower the incredibly out of control deficit is on the table.

Filed Under: RateWindow Homebuyer's Guide Tagged With: ,

Renting – Not a Bad Idea

April 23, 2012 By Leave a Comment

The Renting Culture

The culture of renting is beginning to change and the American Dream also has a new look over the last four years. Homeownership is not that inviting anymore and job and housing insecurities have greatly increased since 2008. The last four years have rocked the foundation of the traditional American Dream in this Country. Homeownership is no longer a number one priority to millions of Americans. We now have a Country of millions who have lost the ability to purchase a home of their own. They have lost their jobs and their homes and turn to renting as their only choice. Unfortunately, it is causing rental rates to increase throughout the Country.

Home Ownership

With the lowest interest rates and lowest home prices, in many areas still lowering, first time home buyers, who can qualify, are the ones who are buying the homes. These buyers, along with millions of property investors are taking advantage of the perfect real estate investing climate. They are the ones who are giving the horrible housing market a few glimmers of hope. If you are at all interested in investment property, now is the time to take advantage of this buyer’s market. It is more practical to purchase homes with a 30-year fixed mortgage and plan on renting for a long time, than to try and fix and flip. Although, if you have the skills and can find a home without too much damage and at a great price, you may still be able to make a nice profit for yourself. Unfortunately, most Americans are still a bit squeamish about purchasing a home right now. The job market is still unstable and no one wants to be stuck with a mortgage in case of job loss.

The Advantages of Renting

One of the greatest advantages of renting; is not having a mortgage payment and all the expenses that go with getting a mortgage, like taxes, insurance, closing costs, etc. And not being responsible for all the expenses that come with owning a home like repairs, maintenance, taxes, and even in some cases utilities. Also, renters insurance cost around $100 a year, whereas homeowners insurance costs anywhere from $700-$800 or more per year.

With the job market showing only tentative signs of recovery; the advantage of renting is one headache that renters will not have to deal with is moving and selling a home. Renters have mobility to come and go as they want or need to. They don’t have all the extra costs that also come with selling a home before they can move. And families have the advantage of moving together; without one spouse having to stay behind and sell the home by themselves. It relieves the family of a lot of stress; trust me, been there done that! According to some analysts it may never make sense, for many to buy a home. In other prosperous countries, it is the norm to rent. And if you are worried about the tax break on the interest on your mortgage, they say, most people do not itemize anyway and don’t get the tax break and as your loan grows older and smaller the tax break is hardly worth itemizing. I think for the next seven years at least, we will be seeing more and more renters. It takes seven years to have all the negative late fees and foreclosures to be removed from your credit report.  And perhaps when the millions of former homeowners, once again have good credit we may see an upswing in home sales. Or, many may never want to be in that position again and stay renters. Only time will tell.

Filed Under: RateWindow Homebuyer's Guide Tagged With: , ,

Top 5 Cities With the Most Depressed Housing Markets

April 23, 2012 By Leave a Comment

According to Kiplinger

Criteria for the dreaded list were: the metropolitan area had a population of at least 200,000 and the change in home prices reflects a one year period from September 2010 and September 2011. The national peak prices in 2006 were included, the unemployment rate and the number of foreclosures as of September 2011, which was one in every 213 homes.

 Number 1     Mobile, Alabama

Mobile, Alabama has the unwanted honor of coming in at number one. Most of the reason for Mobile’s problems has been the unemployment rate in the area. It has been hit hard with the BP oil spill, first and then the Whitehouse’s ban on drilling and permits to drill. This is the largest employer of the area. Since 2006 the home prices have plummeted by 30.6% and the unemployment rate is at 10%. Homes are selling slowly and the foreclosure rate has slowed. The 2010-2011 home prices dropped 16%.

 Number 2     Des Moines, Iowa

Des Moines, Iowa is number two on the list. Home sales have grown stronger compared with last year, but it is still a buyer’s market. Most of the recent sales have been for investment properties. The rental business is getting a boost and with unemployment low, just 5.5%; Des Moines is seeing some sunshine. The foreclosure rate is still very high; one out of every 183 homes has risen by 60% over the past year.

 Number 3    Roanoke, Virginia

Roanoke, Virginia rolls in at number three on the list. Its unemployment and foreclosure rates are fairly low, which is great. Most residents are retirees or government workers enjoying the beautiful area. Roanoke has lost 43.4% of its home prices since 2009; when its housing market bubble burst. It is definitely a buyer’s market. You can get a beautiful lakefront property for half of what it cost five years ago.

 Number 4    Trenton, New Jersey

Trenton, NJ has been a great affordable place for city workers to live. It is right between New York City and Philadelphia. Unfortunately, the unemployment rate is 7.4% and the home prices have fallen to a total of 41.4% since the boom years. The foreclosure rate is fairly low, which is a good thing. Lay-offs are starting to decline, but the Trenton area has at least a twelve month surplus of $600,000-$1million dollar homes that are just waiting to be snatched up for a real good price.

 Number 5    Shreveport, Louisiana

Shreveport rounds out the top five areas of depressed housing markets. Shreveport, like Mobile already had the cards stacked against them with the BP Oil spill and the Whitehouse’s ban on drilling and permits to drill. Luckily for the Shreveport area it has Harrah’s which brings in tourists and the Barksdale Air Force Base to boost their economy. But, as far as homes go, they have over a three year supply of homes in the $400,000+ price range. Over the last year prices have declined 14.7% which is more than its peak prices of 2006.

Filed Under: RateWindow Homebuyer's Guide Tagged With:
« Older Posts
Newer Posts »