Finding The Right Agent

Choosing an agent can be confusing, especially when there are so many to choose from. Among questions about an agent's experience, local market knowledge credentials, cost and marketing plan, here are 13 questions to ask an agent before deciding he or she is the right one for you.

• Do you work full-time or part-time as a real estate agent? Full-time work typically means more attention for you.
• How many homes have you sold in my neighborhood? An agent who specializes in the area in which you are selling your home is preferable. This agent will be the most familiar with recent sales activity and will be able to recommend a good market price for your home.
• How many other sellers are you representing now? The busiest agents often are the most efficient.
• Will you handle all aspects of my transaction or will you delegate some tasks to a sales associate or administrative assistant? A knowledgeable assistant can be invaluable, but make sure you connect with your agent regularly.
• How much can I expect to pay? Commissions are negotiable depending on what kind of listing arrangement you have with your agent.
• At what price do you think my home can sell given the current market? This will allow the agent to display his knowledge of your market.
• Can you give me a comparative market analysis (CMA) of recent sales in the area and homes currently on the market? This should contain listing and sales prices for recently sold homes as well as listing prices and the listing dates of homes currently for sale. It also should include detailed property descriptions (such as square footage and numbers of bedrooms and baths).
• What does your marketing package contain in addition to a comparative market analysis? Listing presentations should also include a suggested asking price, information on the local housing market, advertising plans, a discussion of various listing agreements, and an analysis of sale proceeds at various price points and commission levels.
• Can I list the house with you for 60 to 90 days? Most consumer experts agree that a three-month listing period, or less, is best. You can always renew the listing agreement at that time.
• Is your license in good standing? You should check an agent's certification yourself with your state's Department of Real Estate. Many states provide this information online.
• How many years of education and experience do you have? Experience and continuing education typically make for better agents.
• Are you also a broker and/or a Realtor®? Brokers have more stringent licensing requirements and responsibilities. Realtors are voluntary members of the National Association of Realtors, a trade group.
• Can you provide me with the names and phone numbers of past clients who have agreed to be references? Insights from past customers can help you learn more about an agent and give you a greater comfort level.

Of course we would love to be your agents at the lake. Call the Spouses Selling Houses team and let us go to work for you. Until next time! Ebbie :)

Do I Need Flood Insurance?

Flooding occurs in moderate-to-low risk areas as well as in high-risk areas. Poor drainage systems, rapid accumulation of rainfall, snowmelt, and broken water mains can all result in flood.

Properties on a hillside can be damaged by mudflow, a covered peril under the Standard Flood Insurance Policy. Structures located in high-risk flood areas have a significant chance (26 percent) of suffering flood damage during the term of a 30-year mortgage. In a high-risk area, your home is more than twice as likely to be damaged by a flood than by fire.

For these reasons, flood insurance may bu required by law for buildings in high-risk flood areas as a condition of receiving a mortgage from a federally regulated or insured lender.

For all of your Real Estate questions please call the Spouses Selling Houses team. Until next time. Ebbie :)

Springtime is Staging Time

There may not be snow on the ground here at the lake, but if you're trying to sell a home this spring, it's not too early to start getting the house ready. One of the surest ways to speed a home sale is through artful home staging.

Home staging is more important than ever these days, when houses are not exactly flying off the shelves. "It's a tough market. The quicker your house sells, the better off you are," says Karen Eubank, Dallas chapter president of the Real Estate Staging Association. "You can't change the location of your house. You can change the price--though you probably don't want to--or you can change the condition. It's totally under your control to change the condition, so why not do it? It's very inexpensive, and the return on investment is phenomenal."


According to a HomeGain survey, simple staging techniques, such as cleaning and decluttering, can return up to 10 times the investment. Even more expensive jobs, like repainting rooms, can more than pay for themselves in increased sale price and reduced time on the market. One of the leading home staging companies found that houses that have been staged spend about a month on the market, versus more than four months for homes that haven't been staged.

For more tips on how to sell your home, contact the Spouses Selling Houses team. Until next time! Ebbie :)

12 Reliable Real Estate Tips for 2012

To buy or sell in 2012, what with Armageddon coming and all? Absent any ancient Mayan wisdom on real estate strategies, let's just hope the real cataclysmic event in the real estate market already has passed, even if the rubble from the bubble remains.
A stubborn overstock of households with loans higher than their value will continue to restrain prices and create some major obstacles for sellers in 2012, a year that's shaping up to be another homebuyer's market. In fact, recent studies indicate that more than 20 percent of all residential properties with a mortgage are still underwater, hinting that many foreclosures and workouts are still to come.

However, even the most conservative forecasts call for growth in home sales in 2012, with some select pockets around the country already busting out where there are competitive offers on new listings. More than one-third of home resales were made to first-time buyers in 2011 -- another good sign.
Meanwhile, here are 12 tips for 2012, aimed largely at the group that needs the most help -- home sellers.

Price it right from the get-go

The old-school strategy of real estate sellers crossing their arms and holding out for a better offer will be brushed off by most homebuyers. Consider that of the homes that took four months or more to sell in the past year, almost half of their owners accepted less than 90 percent of the asking price, according to the National Association of Realtors. For a gauge, have your agent produce the latest comparable sales including short sales and foreclosures as well as a recent summary of sales prices versus original list prices. But be wary that such information doesn't reflect the homes that failed to sell.

 

Put your best footage forward

Prep, paint, stage, scrub, improve, repeat. Efforts can include caulking, plastering, planting flowers, adding potted plants, making the windows spotless, pressure washing that oily driveway, edging the walks, trimming the bushes and trees, and mending the fences. None of these is excessively capital-intensive, but when applied en masse, they say "buy me."

Be flexible

I'm not saying bend over backward to accommodate real estate buyers. Bend forward and sideways, too. Be ready to negotiate and offer extras such as closing costs, paid property taxes, remodeling work (or a cash credit), appliances, paid condo association/homeowner association dues, a few months of mortgage payments or even seller financing. Home sellers who've been on the sidelines and who advised their agents to ignore offers by lowballers don't have that luxury now. Instruct your agent to listen intently to prospective homebuyers' misgivings about the home and adjust accordingly and immediately.

 

Trump your techno-fears

Hire a listing agent steeped in mobile platforms. Sellers and buyers are routinely using Facebook and other social media to sell and seek, not to mention dozens of online selling sites. There's also an abundance of smartphone apps cropping up to review real estate listings and refine searches.

 

Don't fall prey

Fraudsters are targeting distressed homeowners with "deals" that can sound perfectly legit. Some offer loan modifications for upfront fees while others offer fee-based "help" in navigating government housing assistance programs, sometimes claiming they're attorneys.
There are also con-artist "investors" compelling desperate owners to sign over their homes with quitclaim deeds in return for a typically empty promise to remain there indefinitely. Others are telling former owners they can get their homes back for a lump sum. Be forewarned: Never sign blank documents or documents with blank lines.
If you're unsure of an offer, have an attorney or other trusted adviser look it over. Keep in mind that a law barring firms -- except attorneys -- from charging upfront fees for mortgage relief or mortgage modification took effect in 2011. It's called the Mortgage Assistance Relief Services Rule.

Finance 101

Realize it's harder to qualify for loans these days. Credit records are under greater scrutiny, and lenders are often demanding a 20 percent down payment and some pricing flexibility from the sellers, especially if the lender's appraisal doesn't reach the asking price.
Consider cash offers, even if they're not the highest. Reject too-low offers from homebuyers gently and with encouragement, telling them they're oh-so-close. You don't want to give away the farm, but you don't want to give it back to the bank either. These days, meeting halfway usually means meeting buyers on their half.

Be your own spokesperson

Agents once advised home sellers to retreat from view during showings, lest they disclose something unsavory or otherwise botch the deal. That's changed. If you can control your ego and emotions and come off as an earnest, flexible seller, you can serve as your best spokesperson. Be ready to answer would-be buyers' questions about the neighborhood and area schools. Be careful about making verbal promises!

 

Flight to quality

Worried about durability? Buyers who place a heavier focus on brick or concrete-and-steel housing may find they're more enduring, safer and quieter.

Are you worried about sustaining value? Buy near a prestigious hospital, university, large government employer or newly vibrant central business district. These entities typically aren't going away, and the demand for good housing around them won't either.

 

Expand your buying universe

There's still an overabundance of well-priced inventory out there, which means you needn't immediately narrow your search to the first house you fancy. That's especially the case with short sale homes, which can be a nightmare to close in a timely manner. There are some for-sale gems that need only a little polishing.

Shop around. Don't dismiss foreclosures and other bank properties, pre-foreclosures, auction homes, for-sale-by-owner or lease-to-own homes. Pick at least three favorites and work from there.

 

'Site unseen' equals shortsightedness

Are you perplexed by the home valuation you did on your place on the website of a large, seemingly reputable real estate organization? Puzzled how that valuation can be 25 percent or more above or below a firsthand appraisal you've had done? Well, value estimates on these sites can vary widely, sometimes by hundreds of thousands of dollars, even by the admission of the companies themselves. There are way too many variables in the valuation game to give too much credence to blind, algorithm-based estimates that are impersonally calculated. Nothing beats a nuanced firsthand professional appraisal.

 

Expand your buyer's due diligence

Aside from the financial details, contracts, disclosures and protections you typically tend to as you prep to buy a home, add these to the list:

• Hire a title company to check the house for liens and tax arrearages.
• Hire you own inspector. Don't use the seller's!
• Have the inspector check for unpermitted work such as illegal room additions and garage conversions.
• Consider the overall energy efficiency of the home with an energy audit.
• Be sure property lines are accurate. If there's any question, hire a land surveyor to research the original deed and to stake out the property's lines and your neighbors' property lines to avoid future disputes.

Make a quality-of-life due-diligence checklist

• Spend some time around the neighborhood and briefly interview neighbors. Determine if there are noisy neighbors, signs of gang activity, nocturnal barking dogs, indigent lingerers, frequent loud parties and/or suspicious nighttime visits. Are there lots of rental homes? Is the block a cut-through point during rush hour? Does the school bus go past the block? Is there a restrictive homeowners association?
• Determine what types of buildings can be constructed on vacant lots adjacent to the neighborhood. This helps avoid unpleasant future surprises. Is there constant noise from a nearby highway or busy street? Are there odors from nearby industrial plants?

We can help make the entire process simple. Please call the Spouses Selling Houses team. Until next time! Ebbie :)

Construction Outlook for 2012

The construction industry has been through a tough 2011, ups and down, materials cost increase bankruptcies, double dipping and more. So what 2012 will be like? Another year where the construction forecast is not as good as expected, and while more numbers and studies are available, the general forecast for 2012 calls for steady growth. The McGraw Hill Construction forecast for 2012 predicts that construction starts will be near $412 billion, 4% less than the forecasted level for 2011.

Construction Forecast 2012 Key Findings McGraw-Hill

Based on significant research and in-depth analysis of macro-trends, the 2012 Dodge Construction Outlook details the forecasts for each construction sector, as follows.

• Single family housing in 2012 will improve 10% in dollars, corresponding to a 7% increase in the number of units to 435,000. This is still a low amount, as the excess supply of homes due to foreclosures continues to depress the market.
• Multifamily housing will rise 18% in dollars and 17% in units, continuing its moderate, upward trend.
• Commercial building will grow 8%. Warehouses and hotels will see the largest percentage increases, but improvement for offices and stores will be modest.
• The institutional building market will slip an additional 2% in 2012, after falling 15% in 2011. The tough fiscal environment for states and localities will continue to dampen school construction, and the uncertain economic environment will limit growth in healthcare facilities.
• Manufacturing buildings will increase 4%, following the 35% gain in 2011, as the low value of the U.S. dollar continues to support export growth.
• Public works construction will drop a further 5%, after a 16% decline in 2011, due to spending cuts and the absence of a multiyear federal transportation bill for highway and bridge construction.
• Electric utilities will retreat 24%, following a 48% jump in 2011.

if you are looking to build at the lake and are looking for a lot, please call the Spouses Selling Houses team. Until next time!! Ebbie :)

Bank of America to Slash Mortgage Balances

Bank of America will significantly slash mortgage balances for as many as 200,000 borrowers.

As part of the $26 billion settlement reached between the five major mortgage servicers, the federal government and the attorneys general of 49 states and District of Columbia last month, Bank of America (BAC, Fortune 500) customers who qualify could see their mortgages reduced by an average of $100,000 or more, according to bank spokesman Rick Simon.

Those principal reductions are much deeper than the ones originally announced as part of the robo-signing settlement deal.

When the settlement was first announced, the average principal reduction was expected to reduce mortgage balances by an average of about $20,000. Among the five biggest lenders, the reductions are expected to help roughly 1 million homeowners who owe more on their homes than they are worth.

 

Bank of America's deal only applies to the mortgages it owns and some that it services for private investors. Loans backed by government-controlled agencies like Fannie and Freddie or insured by the Federal Housing Administration are not eligible for the program.

Many of the mortgages Bank of America plans to refinance came to the bank through its 2008 acquisition of Countrywide Financial, which issued many high value loans called jumbo mortgages that exceeded the loan limits of Fannie Mae (FNMA, Fortune 500), Freddie Mac (FMCC, Fortune 500). A large percentage of those loans were issued in some of the country's hardest hit housing markets, including California, leaving many of Bank of America's mortgage borrower's deeply underwater on their mortgages, said Simon.

The bank has already identified the 200,000 or so borrowers that it will offer modifications to and will start to reach out to them as soon as a D.C. federal court approves the settlement.
"We expect to get off to a fast start with this program," said Simon.
There are incentives to do that. If the bank is able to demonstrate that it faithfully carried out the provisions of the attorneys general's foreclosure settlement -- as well as a separate settlement in which it agreed to reimburse HUD $1 billion to cover problems originating FHA loans -- over the next three years, it can be forgiven $850 million in penalty payments, said Simon.

The bank has also agreed not to pursue foreclosures against any delinquent borrowers who might be eligible for a mortgage modification as part of the settlement. It will also reform its foreclosure processing to avoid repeating robo-signing abuses, in which bank employees signed hundreds of documents a day, testifying to statements they had no knowledge of.

The deal is one of a series of government-led initiatives aimed at tackling the foreclosure crisis. The latest effort came on Tuesday when the Obama administration announced a plan to reduce refinancing costs for FHA-insured loans.

The U.S. Department of Housing and Urban Development (HUD) advises borrowers who believe they were subjected to foreclosure abuse and may be eligible for a mortgage modification under the settlement to call their servicers and ask for a review of their cases.
HUD said once the agreement was submitted to a court for approval, which was expected to happen on Friday, it would hold a press conference to go over the details.

Difference Between Short Sale and Foreclosure

Short Sale Benefits

Here are a few benefits for doing a short sale that may not have occurred to you:

• You are in control of the sale, not the bank.
• You may sleep better at night knowing who is buying your home.
• You will spare yourself the social stigma of foreclosure.
• Contrary to popular belief, you can be current on your payments and still effect a short sale.
• Your home sale will be handled like any other home sale.

Buying Again After a Short Sale

If your payments have never fallen behind 30 days late and the lender does not require that you pay back the loan, Fannie Mae guidelines may allow you to buy another home immediately. Finding a lender who will fund that kind of loan is very difficult. If you are current on your mortgage, you can qualify for an FHA loan immediately as well, but lender requirements can be weird such as you have to move more than 600 miles away.
If your payments are in arrears yet a short sale is granted by your lender, you may qualify to buy another home with a Fannie-Mae backed mortgage within two years, regardless of whether the home is your primary residence. The wait for FHA is 3 years.

Buying Again After a Foreclosure

With certain restrictions, you may be eligible to buy another home in 5 years if the home was your primary residence. Without restrictions, the wait is 7 years.
If you are an investor and do not occupy the home, the wait to buy with a Fannie Mae insured loan is 7 years.

Affects on Credit After a Short Sale

A short sale may be considered to be a derogatory mark on your credit even though credit bureaus do not show the word "short sale" on your credit report. It may say "paid in full for less than agreed" or "settled for less," among other categories. Some clients have reported negative FICO score drops from 50 points to 130 points.
Major point drops are typically due to being in default, meaning you have fallen behind on your payments.

Affects on Credit After a Foreclosure

Depending on your credit history and other guidlines, Myfico.com shows 2 examples in which a credit score could fall 105 points to 160 points after a foreclosure. Generally, a foreclosure will remain on your credit report in the tradelines section for 7 years.

Credit Reports After a Short Sale

All lenders report short sales differently, with many reporting "paid in full for less than agreed," and some report the short sale as a charge off. Negative credit, however, stays on your report for 7 years.

Credit Reports After a Foreclosure

If a prospective employer runs a credit check on you, your job application may be denied if you have a foreclosure on your record.

Deficiency Judgments After a Short Sale

Judgments are often negotiated between the seller and the short sale bank. In some cases, such as California, if the home is your personal residence and was financed through purchase money, there is no deficiency judgment.

Deficiency Judgments After a Foreclosure

Banks are generally unwilling to negotiate deficiency judgments with the homeowner after a foreclosure. In California, for example, according to the California Association of REALTORS, a deficiency judgment may be filed regarding a hard-money loan if the lender forecloses under a judicial foreclosure versus a trustee sale or if the second loan is a hard money loan and the sale takes place as a trustee's sale.

Loan Application Questions After a Short Sale

Loan applications do not ask questions about a short sale. You may report that you sold your home.

Loan Application Questions After a Foreclosure

You are required to answer the question: "Have you ever had a property foreclosed upon or given a deed-in-lieu thereof in the past 7 years." If the bank sees you have had a foreclosure, your loan most likely will be denied. If you lie, you may be subject to investigation by the FBI for mortgage fraud.

Length of Time to Move After a Short Sale

If you've had a foreclosure notice filed, you may be able to postpone that action while the bank considers your short sale. The wait for short sale approval can be from 2 to 3 months, or longer.

Length of Time to Move After a Foreclosure

Unless prior arrangements have been made, the bank may want you to immediately vacate the property and can commence eviction proceedings.

Taxation After a Short Sale

A personal residence is exempt from mortgage debt relief until the end of 2012 on a federal level. Some states will still tax you unless you qualify for an exemption. An investor is not exempt from mortgage debt relief, subject to certain conditions.

Taxation After a Foreclosure

Same as with a short sale. Except some lenders immediately send out 1099s, even if the owner is exempt.

For all of your Real Estate needs at the lake please call the Spouses Selling Houses team now. Untol next time! Ebbie :)