MyHouseValue.com

If you want your home to present it’s best … take action on the following items :

1. Keep your lawn cut and edged.  Trim trees and the shrubs, remove all dead limbs and debris
2. Add a little color to your lard … especially the front porch.
3. Arrange out door furniture and such neatly.  Put away any lawn equipment or toys.
4. Repair anything that is broken or stands out negatively … fencing, deck, patio.  make sure that these areas are clean and in great shape.
5. Review all of your exterior items like: siding, window sashes, trim, shutters, gutters and down spouts.  Clean these areas and or paint … they must shine!!!
6. Make sure that your gutters are clean … no weeds or trees should be growing here.  Make sure that your gutters are straight and tight to your home.
7. Check the roof …. are you missing any shingles?  How about your flashing is it tight and caulked?  Repair or replace anything that is not right.
8. Replace any broken window, doors, screens.  Make sure that your windows are freshly cleaned and remove your screen.  A clean window lets in more light.
9. Wash driveways and side walks … consider putting down a new coat of sealant if you have blacktop.  Patch any holes and remove any stains.
10. touch up the “little things” that make a big difference.

Remember … it is not one thing … it is a combination of everything.  Your specific attention to detail will go a long way.   Your buyer will start buying your home or canceling it out the second they pull up out front.   Your first impression is the lasting impression; so, make every effort to put your best foot forward.

Jim Bim

Jim@MyHouseValue.com

SOURCE : NATIONAL ASSOCIATION OF REALTORS

Help is on the way for many homeowners who are facing foreclosure, thanks to new details under the Making Home Affordable Program announced today by the U.S. Treasury and the U.S. Department of Housing and Urban Development.

The Making Home Affordable Program is designed to help homeowners obtain modifications to their loan so they can afford to stay in their home. Where a modification is not possible, new incentives encourage the “quick private sale or voluntary transfer of property, which will save homeowners money and protect their financial future,” according to U.S. Treasury Secretary Timothy Geithner. The National Association of Realtors® expects that a uniform process for handling short sales and financial incentives will facilitate this process. View a summary of the incentives and process (PDF)

“NAR is pleased that the government is stepping in to help prevent foreclosures by streamlining the short-sale and deeds-in-lieu process,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “NAR has been calling for uniform short sales procedures and other initiatives that will help today’s homeowners in challenging economy.”

Short sales occur when a bank agrees to let homeowners who have fallen behind on their mortgage to sell their home for less than they owe on their mortgage. Visit www.treasury.gov for detailed information on the program changes.

“Many families are finding themselves with a mortgage that is higher than their current home value, and they are struggling,” said McMillan. “As Secretary Geithner noted, and as NAR has been advocating for many months, stemming the foreclosure crisis and stabilizing the housing market are critical to our economic recovery.”

“We have heard from Realtors® that the extensive delay in the short sale process had caused many buyers to go elsewhere and have left many would-be sellers with no option but foreclosure. We are all pleased that the government has stepped in to help homeowners and those wishing to buy a home,” McMillan said.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Pending home sales rose with many first-time buyers taking advantage of historically good housing affordability conditions, according to the National Association of Realtors^®.

The Pending Homes Sales Index, a forward-looking indicator based on contracts signed in March, increased 3.2 percent to 84.6 from a level of 82.0 in February, and is 1.1 percent higher than March 2008 when it was 83.7.

Lawrence Yun, NAR chief economist, said it should take a few months for the market to gain momentum. “This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a downpayment,” he said. “We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around.”

SOURCE : National Association of Realtors

NAR’s Housing Affordability Index remained near record highs. The affordability index was 166.7 in March – down from an upwardly revised record of 174.4 in February due to higher home prices in March. The index remains 30.8 percentage points higher than a year ago. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income; tracking began in 1970.

The Pending Home Sales Index in the South rose 8.5 percent to 93.2 in March and is 7.7 percent above a year ago. In the West the index increased 3.9 percent to 93.1 and is 1.7 percent higher than March 2008. The index in the Northeast fell 5.7 percent to 59.5 in March and is 24.1 percent below a year ago. In the Midwest the index slipped 1.0 percent to 82.3 but is 8.2 percent higher than March 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said the increase in buying power is quite remarkable. “Compared to a year ago, the typical family can pay much less in mortgage costs for the same home, or buy a better home without necessarily increasing their monthly payment,” he said. “For buyers who’ve been on the sidelines and have good jobs, the market has never looked more favorable. Homeownership has always offered immediate benefits and long-term value, but the advantages in today’s market are unique.”

A median-income family, earning $61,100, could afford a home costing $291,600 in March with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of that amount. The affordable price was notably higher than the median existing single-family home price in March, which was $174,900.

The National Association of Realtors^®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

NAR’s Housing Affordability Index² remained near record highs. The affordability index was 166.7 in March – down from an upwardly revised record of 174.4 in February due to higher home prices in March. The index remains 30.8 percentage points higher than a year ago. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income; tracking began in 1970.

The Pending Home Sales Index in the South rose 8.5 percent to 93.2 in March and is 7.7 percent above a year ago. In the West the index increased 3.9 percent to 93.1 and is 1.7 percent higher than March 2008. The index in the Northeast fell 5.7 percent to 59.5 in March and is 24.1 percent below a year ago. In the Midwest the index slipped 1.0 percent to 82.3 but is 8.2 percent higher than March 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said the increase in buying power is quite remarkable. “Compared to a year ago, the typical family can pay much less in mortgage costs for the same home, or buy a better home without necessarily increasing their monthly payment,” he said. “For buyers who’ve been on the sidelines and have good jobs, the market has never looked more favorable. Homeownership has always offered immediate benefits and long-term value, but the advantages in today’s market are unique.”

A median-income family, earning $61,100, could afford a home costing $291,600 in March with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of that amount. The affordable price was notably higher than the median existing single-family home price in March, which was $174,900.

The National Association of Realtors^®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

Bank of America Revises Short Sale Policy

Bank of America, one of the country’s largest mortgage lenders, says it is loosening its policies on short sales in response to the U.S. Treasury Department’s announcement last week that it would increase incentives for lenders to work out short sale deals.

The government’s plan is a boon to banks, says David Sunline, BofA’s real estate management executive, because it provides guidance when there are multiple liens, a potentially litigious issue for lenders.

In the past, the bank followed Fannie Mae’s policy of giving second lien holders about 10 percent of the second mortgage balance in a short sale. Now when it holds the second lien, BofA will accept 5 percent of the net proceeds of the short sale, Sunline says. When it is the first lien holder, it will offer 5 percent to the holder of the second lien.

Sunline says home owners considering short sales should contact the bank within five days of getting an offer on the home and expect its cooperation as long as the offer is within the range of other sales in the area and the borrower can demonstrate financial hardship.

Source: The New York Times, Bob Tedeschi (05/15/2009)

The new rules also allow for fees like “no show” penalties if the borrower misses an appointment with the appraiser. There also are extra charges for mortgages greater than $500,000. Appraisal costs under these rules must be paid for up-front with a credit or debit card rather than deferred until closing.

Meanwhile, experienced appraisers say they are being forced to work for less while appraisal management companies are picking up the lion’s share.

Appraisal management companies say that analysis isn’t fair.

Rich Kuegler, a vice president at MDA Lending Services Inc., a national appraisal management company, says new fees compensate his and similar firms for “processing and administrative” duties that used to be handled by mortgage brokers and lenders. He also says that appraisers can expect greater volume working for an appraisal management company, which should compensate for lower fees.

Source: Washington Post Writers Group, Ken Harney (05/17/2009)

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

Don’t forget to wish Mom a Happy Mother’s Day … and maybe go buy a house!!!

Suggestions for consumers:

• Know your score. Check your credit score before you make any decisions. Credit scores range from 300 to 850. The median U.S. credit score is about 693, according to Experian, one of the three main credit reporting agencies. A score below 680 usually results in a borrower being charged a higher interest rate or being denied credit. In this economy, you will need a good score to qualify for a mortgage. If your score is lagging, wait a few months. In the meantime, pay every bill on time, pay down as much debt as possible and increase income if possible to improve your chances. If possible, ask creditors for increases on your credit limits to help out the “credit available” aspect of your credit score - but do not tap into the addition.

• Do not stretch too far. Often, borrowers are told they can qualify for a higher mortgage than they can comfortably pay. It is wise to keep housing expenses below 35 percent of your total income. Leave breathing room in your budget so that if something unplanned does occur, you will be able to keep your home. If you are not certain, wait to buy.

• Know the full costs of buying. The down payment and principal and interest on a mortgage payment are only the beginning of home-related costs. For a typical mortgage payment, “escrow” payments, or the costs of home insurance, property taxes, and, in some cases, private mortgage insurance, can total hundreds of dollars per month in addition to principal and interest. Determine the property tax amount - the largest part of the escrow payment - by checking with your real estate agent or county property tax assessor before your buy.

Be sure to not deplete savings or cash on hand when making a down payment, since new homeowners often must complete initial work on the home, such as painting, flooring, landscaping or bringing an older house up to date. After that, a rule of thumb is to budget 1 percent of the home’s purchase price per year for home repairs and upkeep.

• Understand private mortgage insurance. Mortgages with less than a 20% down payment require PMI in case the owner defaults on the loan. When the home owner pays the mortgage down to 80% or less of the home’s value, the home owner can request the lender to cancel the PMI on a conventional mortgage and stop paying the additional amount. Meanwhile, PMI is tax-deductible, at least through 2010.

• Check for prepayment penalties and other provisions. If your loan has a prepayment penalty, borrowers face hefty charges if they pay it off early. This provision also can apply to future refinancing, so be forewarned. To determine if there is a prepayment penalty, review the Truth in Lending disclosure or ask your lender to find out.

Prepayment penalties have come under increased scrutiny since the mortgage crisis began, so if you find your loan has one, voice your dissatisfaction directly and clearly to your lender or broker.

• Consult a tax advisor. First-time home buyers - including people who have not owned a home for at least three years - qualify for a tax credit of up to $8,000 if they purchase a home before Dec. 1, 2009. The credit does not have to be repaid if the buyer keeps the home for at least three years. In addition, all homeowners qualify for tax credits for certain home energy efficiency improvements made in 2009.

• Buyer beware. Some of the lowest prices on homes today are “fixer-uppers” or homes sold “as is” because of foreclosure. Invest in a home inspection before agreeing to purchase any home. You may even be able to split the cost of this inspection - typically less than $400 - with the seller. The inspection will inform you of any faults in the home and help you determine the approximate cost to remedy those problems. Without an inspection, you could wind up owning a home that requires thousands of dollars of repairs.

One of the biggest questions i get as a real estate agent is what can i do to improve the value of my home and at the same time one of the biggest mistakes i see home sellers make is spending money in the wrong places before they put their home on the market to sell.  So when you are ready to determine your homes value know what makes a home sell!  Your ready to get your homes value!!!  You are ready to net top dollar on the sale!!!   Then follow these steps because here are 4 major guidelines that every homeowner should clearly know before they fix-up their property for sale:

1. Cost Doen’t Equal Value- if you finished off your basement last year for $50,000 - that does not mean that you can simply add $50,000 to the value of your home.  In other words, it does not necessarily add the value of what you spent in the eyes of your home buyer.   It could be more or less.  Before making any major improvements, take the time to discover what home buyers want in your market.   For example: spending big money on a fancy upgraded 40 year or more roof single will not bring you nearly the return on investment that putting in a new kitchen will (if done right)
2. Put Your Money Where Buyers Will See It!!!   For example - fresh paint, new carpeting / flooring, new countertops and re landscaping the yard.  I would not expect a great return on, for example, fresh insulation or new plumbing or wiring.
3. Do Not Over Improve!!!  The addition of a master bedroom and a private full bath in a community of home that does not have 2nd baths will get you a nice return but doubling the size of you home will just burn your money!
4. Most Quality Home Improvements Cause a Property to Sell Quicker but Not Necessarily for More Money.  A timely sale will lesson the carrying costs and stress.  Don’t underestimate the overall value of “smart” improvements.  For example : fresh landscaping, mulching and such may not bring you more money money but your home will stand out and sell faster than if you did nothing to make the exterior shine!

Before you sell you home get great advice from a proven professional as to how you can “stage” your home for sales success.  Then, determine the fair market value and price it to sell.  Follow these simple steps and your home selling experience will be a pleasant one!