Provided by Yahoo! Real Estate
Understand first of all that there IS a difference between price and value. Price is the amount you are asking for the property. Value is buyer perceived, and this perception of value is influenced by many factors such as location, features, condition, comparison to other purchase option, etc. By attending to details that can have a positive impact on the value, sellers can significantly increase their chance of attracting qualified buyers willing to pay the asking price.
Some tips to achieve a positive impact on value are:
Perceived size impacts value, even more so than actual square footage. Open floor plans make a room feel bigger than larger spaces with smaller rooms. Showing property that is furniture free, or at reduced clutter, helps to make the space feel bigger.
Vacancy increases sale-ability. Property is easier to show and easier to sell, and quicker to take possession of when it is vacant at the time it is offered for sale. Evidence of problems to take possession of the property -- such as encroachments, or tenants who wont allow buyer tours -- negatively impact value. Vacancy also helps the buyer walk through the property imagining ownership. Sellers should remove personal trinkets and family pictures as well as being conveniently absent during a buyer tour.
Cosmetics are important.
Fresh paint will always add more value than it costs.
Clean or new carpet/flooring adds more value than it costs.
Landscaping adds more value than it costs. At the very minimum, make the entrance area neat.
If you can, add some colorful flowers and new sod.
Take care of the obvious! The spot on the ceiling from the roof leak takes thousands of dollars from the perceived value and the offer price.
Condition affects value. Do a seller's home inspection to identify and fix the problem BEFORE closing. No point holding up your check a few extra days; plus a failed buyer's inspection could cost you the sale. Buyers will often bargain down your asking price to accomodate for property condition and repairs.
If you can, remodel/update the kitchen and master bathroom. These two areas have a big impact on home buying decisions.
Strategic renovations impact value and your bottom line. Don't spend more money to renovate the place than you can recapture in value on the sales price.
Friday, March 30, 2012
Wednesday, March 28, 2012
How Does Escrow Work?
Provided by Yahoo! Real Estate
If you've ever made an informal bet with a friend, you may have asked a third person to hold the money until the wager was resolved. When you take out a mortgage to buy a home, you're doing something similar by opening an escrow account.
How it works
When you put money in escrow it is held by a neutral third party (called an escrow agent) who works for both the lender and the borrower. The agent's role is to carry out the instructions agreed upon by both parties. The money is released when all the terms of the agreement are met. Escrow can be involved in anything from multimillion-dollar building projects to purchases made on online auction sites.
When it's used
When your mortgage closes, your lender will usually require you to open an escrow account to cover property taxes and homeowner's insurance. You'll make an initial deposit, followed by payments to the account every month. (Usually these are added to your regular mortgage payment.) The escrow agent will then release these funds as your taxes and insurance premiums come due.
Its purpose
The idea is to protect the lender by ensuring that you pay your taxes and insurance on time. If you default on your property tax, for example, your municipality can put a lien on the house, which would make it difficult to sell. Or if your house burns down and you've neglected to pay the insurance, the lender would be left with no collateral.
How you benefit
Escrow can benefit borrowers by helping them spread insurance and tax expenses evenly over 12 payments. For example, assume your yearly property taxes are two payments of $1,000 each, and your insurance is $400 annually. If you paid these directly, it would mean three large payments a year; your escrow costs, however, would be a manageable $200 a month.
Escrow payments
Your escrow account will have a built-in cushion -- if you miss a payment, the lender must still be able to pay your accounts on time. However, federal law prohibits lenders from requiring more than two months. expenses in escrow. And because your tax and insurance costs will change slightly from year to year, the lender will review and adjust your escrow payments annually.
When escrow may be waived
In most states, the money you place in an escrow account earns no interest for you. For that reason, many borrowers prefer to pay their taxes and insurance directly. Lenders may agree to this if your down payment is more than 20 percent, although some will raise your interest rate slightly to compensate. Once you agree to putting funds into an escrow account, however, it is difficult to cancel it, so make sure you fully understand the arrangement before your mortgage closes.
If you've ever made an informal bet with a friend, you may have asked a third person to hold the money until the wager was resolved. When you take out a mortgage to buy a home, you're doing something similar by opening an escrow account.
How it works
When you put money in escrow it is held by a neutral third party (called an escrow agent) who works for both the lender and the borrower. The agent's role is to carry out the instructions agreed upon by both parties. The money is released when all the terms of the agreement are met. Escrow can be involved in anything from multimillion-dollar building projects to purchases made on online auction sites.
When it's used
When your mortgage closes, your lender will usually require you to open an escrow account to cover property taxes and homeowner's insurance. You'll make an initial deposit, followed by payments to the account every month. (Usually these are added to your regular mortgage payment.) The escrow agent will then release these funds as your taxes and insurance premiums come due.
Its purpose
The idea is to protect the lender by ensuring that you pay your taxes and insurance on time. If you default on your property tax, for example, your municipality can put a lien on the house, which would make it difficult to sell. Or if your house burns down and you've neglected to pay the insurance, the lender would be left with no collateral.
How you benefit
Escrow can benefit borrowers by helping them spread insurance and tax expenses evenly over 12 payments. For example, assume your yearly property taxes are two payments of $1,000 each, and your insurance is $400 annually. If you paid these directly, it would mean three large payments a year; your escrow costs, however, would be a manageable $200 a month.
Escrow payments
Your escrow account will have a built-in cushion -- if you miss a payment, the lender must still be able to pay your accounts on time. However, federal law prohibits lenders from requiring more than two months. expenses in escrow. And because your tax and insurance costs will change slightly from year to year, the lender will review and adjust your escrow payments annually.
When escrow may be waived
In most states, the money you place in an escrow account earns no interest for you. For that reason, many borrowers prefer to pay their taxes and insurance directly. Lenders may agree to this if your down payment is more than 20 percent, although some will raise your interest rate slightly to compensate. Once you agree to putting funds into an escrow account, however, it is difficult to cancel it, so make sure you fully understand the arrangement before your mortgage closes.
Monday, March 26, 2012
First-Time Buyer Tips
Provided By Realty Times
Maybe you've been eyeing the real estate market and you think that you're finally ready to purchase your first home...if so, read on to be sure you're in the best position.
The rules have drastically changed in the real estate market. At one time, getting a mortgage seemed to require little more than just simply stating your income on paper. Today, the credit tightening continues. Banks want extra documentation that you can truly afford the home you want to buy.
But don't let that scare you. Your dream of becoming a homeowner is still a viable option. Here are a few tips to help you achieve your dream.
First take a good look at your credit. It's sad, but true, many people have no idea how their credit reports look. They can't remember if they've ever seen their report and they don't know their credit score.
Unfortunately, that puts buyers in a poor position. If there are errors on their credit reports, those must be handled before you try to purchase a home. Sometimes there are marks that truly shouldn't be on your credit. Other times there are knocks against your credit that you may be able to get removed.
Check your credit score at least three to six months before you apply for a mortgage. This will give you time to address any issues.
Start saving now. These days a downpayment for a home doesn't come easy. You may need as much as 20 percent down. However, there are still some loan programs that will allow you to put down much less.
Make sure you are working with an experienced team of real estate professionals. This kind of purchase requires lots of information, education, and knowledge. Having a team of industry professionals to guide you through the first-time home-buying experience will make the process so much easier.
When you're preparing to buy a home, if you haven't already, make a budget and start watching where every dollar goes. It's amazing how few people do this. It's even more amazing to see how much money is wasted. Those extra trips to the coffee shop, the donuts in the morning, the manicures, or shopping sprees, all are areas where you can likely cut back to save for your downpayment.
Picture your home. It might sound silly but you need to envision the home you want to buy. This will help you tremendously once you start your search. Start looking online, in magazines, and around your chosen neighborhoods.
You can even use online tools like Pintrest.com to pin images and videos you see on an online storage board to refer to later. This is a great tool for collecting photos of home decor.
The point here is to make sure you have an idea of what is important to you in a home. Since you've been renting, this might not be crystal clear at first. But as you make your list and explore homes with your agent, you'll begin to see which things are deal breakers and which things are a must-have.
Buying a home is like looking for the right relationship. It can be exciting at first, frustrating at times, and so comforting once you've finally found the right one. Happy house hunting!
Maybe you've been eyeing the real estate market and you think that you're finally ready to purchase your first home...if so, read on to be sure you're in the best position.
The rules have drastically changed in the real estate market. At one time, getting a mortgage seemed to require little more than just simply stating your income on paper. Today, the credit tightening continues. Banks want extra documentation that you can truly afford the home you want to buy.
But don't let that scare you. Your dream of becoming a homeowner is still a viable option. Here are a few tips to help you achieve your dream.
First take a good look at your credit. It's sad, but true, many people have no idea how their credit reports look. They can't remember if they've ever seen their report and they don't know their credit score.
Unfortunately, that puts buyers in a poor position. If there are errors on their credit reports, those must be handled before you try to purchase a home. Sometimes there are marks that truly shouldn't be on your credit. Other times there are knocks against your credit that you may be able to get removed.
Check your credit score at least three to six months before you apply for a mortgage. This will give you time to address any issues.
Start saving now. These days a downpayment for a home doesn't come easy. You may need as much as 20 percent down. However, there are still some loan programs that will allow you to put down much less.
Make sure you are working with an experienced team of real estate professionals. This kind of purchase requires lots of information, education, and knowledge. Having a team of industry professionals to guide you through the first-time home-buying experience will make the process so much easier.
When you're preparing to buy a home, if you haven't already, make a budget and start watching where every dollar goes. It's amazing how few people do this. It's even more amazing to see how much money is wasted. Those extra trips to the coffee shop, the donuts in the morning, the manicures, or shopping sprees, all are areas where you can likely cut back to save for your downpayment.
Picture your home. It might sound silly but you need to envision the home you want to buy. This will help you tremendously once you start your search. Start looking online, in magazines, and around your chosen neighborhoods.
You can even use online tools like Pintrest.com to pin images and videos you see on an online storage board to refer to later. This is a great tool for collecting photos of home decor.
The point here is to make sure you have an idea of what is important to you in a home. Since you've been renting, this might not be crystal clear at first. But as you make your list and explore homes with your agent, you'll begin to see which things are deal breakers and which things are a must-have.
Buying a home is like looking for the right relationship. It can be exciting at first, frustrating at times, and so comforting once you've finally found the right one. Happy house hunting!
Friday, March 23, 2012
Entryway Impressions
Provided By Realty Times
Homeowners who have decided to stay put as well as sellers looking for ways to impress should pay close attention to the look and feel of their entryways.
We all know the power first impressions has over our society. We make snap-judgements of books, homes, and people in the first few moments of meeting. This makes it even more important for homeowners to get entry-ways looking their best.
According to a recent national home valuation study conducted by Therma-Tru, even the simple update of installing a new entryway door can increase the perceived value of a home by more than $24,000 on average!
When it comes to entry doors, the sky is the limit these days. Manufacturers know the power of a showstopping door. This is why, according to Therma-Tru, "manufacturers offer a wide array of choices for entryways incorporating decorative glass doorlites, sidelites and transoms. These choices allow homeowners to create a custom look for the home while making a statement about the homeowner's personal sense of style."
More and more homeowners are choosing to stay in their homes to wait out the down market. Home prices have fallen across much of the nation. This has amped up remodeling across the nation.
Decorative glass entry doors are a great way to bring light into your entryway as well as add a spark of class to the exterior of your home.
Aside from updating your front door, a great tip for your entryway is to keep it organized. If you're not careful, your entryway can be come a dumping ground for keys, phones, paperwork, bags, coats, and other often used items. The key it to have a place for everything.
Invest in a suitable entry table that can house a docking port for phones as well as a hidden area for keys.
If your entryway has a coat closet be sure that it is cleared out to make room for daily use and for guest coats. Put in a shoe rack or bin for shoes, boots, and umbrellas. There shouldn't be anything cluttering up your space.
Add a few warm touches to this space by including an entry rug, which can also reduce slippage on tile floors. Place a warm lamp and some simple artwork on top of the entry table. Think about first impressions when you choose colors and styles. This space should make guests or prospective buyers feel warm and welcome!
If you're looking for a simple way to capitalize on your home's first impression, then consider adding a touch of class with some decorative glass as well as organizing your space.
Homeowners who have decided to stay put as well as sellers looking for ways to impress should pay close attention to the look and feel of their entryways.
We all know the power first impressions has over our society. We make snap-judgements of books, homes, and people in the first few moments of meeting. This makes it even more important for homeowners to get entry-ways looking their best.
According to a recent national home valuation study conducted by Therma-Tru, even the simple update of installing a new entryway door can increase the perceived value of a home by more than $24,000 on average!
When it comes to entry doors, the sky is the limit these days. Manufacturers know the power of a showstopping door. This is why, according to Therma-Tru, "manufacturers offer a wide array of choices for entryways incorporating decorative glass doorlites, sidelites and transoms. These choices allow homeowners to create a custom look for the home while making a statement about the homeowner's personal sense of style."
More and more homeowners are choosing to stay in their homes to wait out the down market. Home prices have fallen across much of the nation. This has amped up remodeling across the nation.
Decorative glass entry doors are a great way to bring light into your entryway as well as add a spark of class to the exterior of your home.
Aside from updating your front door, a great tip for your entryway is to keep it organized. If you're not careful, your entryway can be come a dumping ground for keys, phones, paperwork, bags, coats, and other often used items. The key it to have a place for everything.
Invest in a suitable entry table that can house a docking port for phones as well as a hidden area for keys.
If your entryway has a coat closet be sure that it is cleared out to make room for daily use and for guest coats. Put in a shoe rack or bin for shoes, boots, and umbrellas. There shouldn't be anything cluttering up your space.
Add a few warm touches to this space by including an entry rug, which can also reduce slippage on tile floors. Place a warm lamp and some simple artwork on top of the entry table. Think about first impressions when you choose colors and styles. This space should make guests or prospective buyers feel warm and welcome!
If you're looking for a simple way to capitalize on your home's first impression, then consider adding a touch of class with some decorative glass as well as organizing your space.
Wednesday, March 21, 2012
Swing into Spring: Five Easy Ways to Welcome Warm Weather
Provided By OrganizedHome.com
Blooming bulbs and Spring breezes signal that warmer weather is on the way.
Sure, many of us will do an all-out session of Spring cleaning, but even small, simple jobs can bring the season's freshness inside.
Shake the winter doldrums out of your organized home with these five easy ideas to swing into Spring:
Let the Light Shine: Wash the Windows!
Sunny days look brighter through clean windows, so tackle the grime that winter storms have left behind on interior and exterior windows now. Whether you're an advocate of the diluted-vinegar-and newspapers approach, or prefer to wield a squeegee like the pros do, choose a bright, still day to clean exterior windows.
Freed from their dark winter coats, clean windows spill sunshine inside, raising everyone's mood!
Catch the Breeze: Open Windows on a Warm Day
Cold weather brings shut windows and tightly-closed doors--which can create a build-up of stale odors in any home. When you live with them, your nose learns to ignore them, but nothing whispers "Spring is here!" like a freshly-aired house.
Solution: let breezes blow! Air out the house one sunny afternoon to bring Spring's freshness inside. Opening doors and windows to catch a breeze will chase away old cooking smells and any stale or musty odors that have built up during the winter months.
After an hour or so, close windows and doors, then tackle surfaces with an electrostatic cleaning cloth to capture any dust or pollen that's settled out in the breeze. Run the vacuum cleaner to remove dust from floors--and enjoy the Springtime freshness!
Blooming Wonder: Bring the Season Inside
Even if the budget won't stretch to regular purchases of cut flowers, Spring's blooming make it easy to spark up a home with fresh blossoms.
Cut small branches from a flowering tree, or gather ready-to-bloom daffodils and tulips from the garden.
Even an inexpensive bundle of cut flowers from the supermarket cooler can bring a welcome breath of Spring indoors.
Displayed simply, in a tall water glass, vase or mason jar, they'll add a splash of Spring color and fragrance to your home.
Fresh Start: Clean Out the Refrigerator
The arrival of a new season is a good signal to clean out stored food in refrigerator and pantry. As farmers' markets and roadside stands open to offer fresh food for the new season, create a good home by cleaning out the remains of winter.
Make a quick check of expiration dates of food stored in refrigerator or pantry, and toss expired foodstuffs.
Look sharp for the last survivors of holiday gift baskets! If you haven't eaten the smoked salmon spread or served the Texas Hot Chili Mix by now, donate these treats to the food bank, so they're enjoyed by others.
Give vegetable storage areas special attention. Bearded carrots, limp celery and shriveled onions can be tossed into a crockery slow-cooker overnight to make vegetable stock--or consign these items to the compost bin. Be ready to store Spring's bounty in a clean and roomy vegetable crisper!
Cull the Cuddly: Wind Down the Winter Warmers
Fall brings no greater pleasure than pulling out fleecy sweats, flannel pajamas and warm blankets--but by season's end, these cuddly favorites are frequently worse for wear.
As warm weather approaches, take a hard look at the family's cold-weather bedding and favorite winter warmers. Separate out the stained sweats, pilled flannel sheets and shrunken loungewear for recycling or donation.
As you return winter bedding and clothing to closet storage areas, make a quick list of any needed replacements. Look alert! End-of-season clearance sales make it easy AND cheap to replace worn-out linens and faded clothes.
Ready to swing into Spring? Welcome the season from your organized home!
Blooming bulbs and Spring breezes signal that warmer weather is on the way.
Sure, many of us will do an all-out session of Spring cleaning, but even small, simple jobs can bring the season's freshness inside.
Shake the winter doldrums out of your organized home with these five easy ideas to swing into Spring:
Let the Light Shine: Wash the Windows!
Sunny days look brighter through clean windows, so tackle the grime that winter storms have left behind on interior and exterior windows now. Whether you're an advocate of the diluted-vinegar-and newspapers approach, or prefer to wield a squeegee like the pros do, choose a bright, still day to clean exterior windows.
Freed from their dark winter coats, clean windows spill sunshine inside, raising everyone's mood!
Catch the Breeze: Open Windows on a Warm Day
Cold weather brings shut windows and tightly-closed doors--which can create a build-up of stale odors in any home. When you live with them, your nose learns to ignore them, but nothing whispers "Spring is here!" like a freshly-aired house.
Solution: let breezes blow! Air out the house one sunny afternoon to bring Spring's freshness inside. Opening doors and windows to catch a breeze will chase away old cooking smells and any stale or musty odors that have built up during the winter months.
After an hour or so, close windows and doors, then tackle surfaces with an electrostatic cleaning cloth to capture any dust or pollen that's settled out in the breeze. Run the vacuum cleaner to remove dust from floors--and enjoy the Springtime freshness!
Blooming Wonder: Bring the Season Inside
Even if the budget won't stretch to regular purchases of cut flowers, Spring's blooming make it easy to spark up a home with fresh blossoms.
Cut small branches from a flowering tree, or gather ready-to-bloom daffodils and tulips from the garden.
Even an inexpensive bundle of cut flowers from the supermarket cooler can bring a welcome breath of Spring indoors.
Displayed simply, in a tall water glass, vase or mason jar, they'll add a splash of Spring color and fragrance to your home.
Fresh Start: Clean Out the Refrigerator
The arrival of a new season is a good signal to clean out stored food in refrigerator and pantry. As farmers' markets and roadside stands open to offer fresh food for the new season, create a good home by cleaning out the remains of winter.
Make a quick check of expiration dates of food stored in refrigerator or pantry, and toss expired foodstuffs.
Look sharp for the last survivors of holiday gift baskets! If you haven't eaten the smoked salmon spread or served the Texas Hot Chili Mix by now, donate these treats to the food bank, so they're enjoyed by others.
Give vegetable storage areas special attention. Bearded carrots, limp celery and shriveled onions can be tossed into a crockery slow-cooker overnight to make vegetable stock--or consign these items to the compost bin. Be ready to store Spring's bounty in a clean and roomy vegetable crisper!
Cull the Cuddly: Wind Down the Winter Warmers
Fall brings no greater pleasure than pulling out fleecy sweats, flannel pajamas and warm blankets--but by season's end, these cuddly favorites are frequently worse for wear.
As warm weather approaches, take a hard look at the family's cold-weather bedding and favorite winter warmers. Separate out the stained sweats, pilled flannel sheets and shrunken loungewear for recycling or donation.
As you return winter bedding and clothing to closet storage areas, make a quick list of any needed replacements. Look alert! End-of-season clearance sales make it easy AND cheap to replace worn-out linens and faded clothes.
Ready to swing into Spring? Welcome the season from your organized home!
Monday, March 19, 2012
Ask the HOA Expert
Provided By Realty Times
Question: Our governing documents prohibit the use of clubhouse for any for-profit event. Many of our residents would like to have classes such as aerobics, art etc. However the instructors would charge and the board says that these types of functions are not allowed. Are there any guidelines to permit this type of use but still prohibit use for events where the primary intention is to sell something or other commercial uses?
Answer: If many owners support classes in the clubhouse and are willing to pay the cost, the board should establish a criteria which allows such events. The events should not monopolize the clubhouse in a way where non-participating owners are overly restricted from using the facilities.
Question: We are holding our annual meeting soon and will electing two directors. The board decided several years ago that nominees must submit a "Request for Nomination" two weeks in advance of the Annual Meeting endorsed by two other unit owners. We don't accept nominations rom the floor of the meeting. This has eliminated single issue candidates and grandstanders.
But what if only two nominations are submitted? Does the president declare their election by default or does someone need to make a motion to elect the two by acclamation?
Answer: Your nomination procedure is illegal unless it is described in your governing documents (doubtful). Even single issue, self serving members have a right to run for the board. The nomination procedure could easily be interpreted as an attempt to suppress dissent. (You pretty much admit that already.) The election process should follow normal procedures which includes being nominated at the meeting and no requirement to be endorsed by others.
If there are two positions and only two candidates, the president may ask for a motion to elect the candidates by acclamation. If he receives the motion, a second and a unanimous vote, there is no need to distribute ballots. However, if there is dissent, ballots should be distributed and counted.
Question: Our governing documents prohibit the use of clubhouse for any for-profit event. Many of our residents would like to have classes such as aerobics, art etc. However the instructors would charge and the board says that these types of functions are not allowed. Are there any guidelines to permit this type of use but still prohibit use for events where the primary intention is to sell something or other commercial uses?
Answer: If many owners support classes in the clubhouse and are willing to pay the cost, the board should establish a criteria which allows such events. The events should not monopolize the clubhouse in a way where non-participating owners are overly restricted from using the facilities.
Question: We are holding our annual meeting soon and will electing two directors. The board decided several years ago that nominees must submit a "Request for Nomination" two weeks in advance of the Annual Meeting endorsed by two other unit owners. We don't accept nominations rom the floor of the meeting. This has eliminated single issue candidates and grandstanders.
But what if only two nominations are submitted? Does the president declare their election by default or does someone need to make a motion to elect the two by acclamation?
Answer: Your nomination procedure is illegal unless it is described in your governing documents (doubtful). Even single issue, self serving members have a right to run for the board. The nomination procedure could easily be interpreted as an attempt to suppress dissent. (You pretty much admit that already.) The election process should follow normal procedures which includes being nominated at the meeting and no requirement to be endorsed by others.
If there are two positions and only two candidates, the president may ask for a motion to elect the candidates by acclamation. If he receives the motion, a second and a unanimous vote, there is no need to distribute ballots. However, if there is dissent, ballots should be distributed and counted.
Friday, March 16, 2012
8 Things Your Mover Doesn't Want You to Know
Provided By House Beautiful
You're stressed. They're tough and scary. And the clock is ticking. To ensure a hassle-free move, we asked industry veteran and former co-owner of Blue Chip Moving & Storage, Jack Doody, for his advice on how to hire a reputable moving company. Here, he reveals eight common scams you need to watch out for.
Your Bill Could Be Inflated
"A disreputable mover will give you a lowball estimate. Come the move, he'll walk around your house and say, 'Oh, some of these things need to be packed.' Then he'll charge you an exorbitant amount to do it. Or he might say, 'Gee, we're going to have to take that bed apart.' And then he'll tack on another ridiculous charge," Doody explains. The lesson? Be wary of any bill that doesn't match up to your original estimate.
It's Best to Move Little Things Yourself
"If you're going to have underpaid and undervalued and sometimes inadequately screened strangers move your jewelry, you're asking for trouble," Doody cautions. Other small items, like video games, tiny electronics, and CDs, you should probably move yourself to make sure they don't get.
There Should be a Refund Policy
A reputable company shouldn't charge you if you cancel, and they should return your entire deposit. Also, never work with a mover that only accepts cash. "Remember: You can't stop cash. You can stop a credit card," says Doody.
They "Punish" Pushy Clients
Rub movers the wrong way, and they might retaliate. "If they really feel they've been abused and disrespected, they'll want to get away from the bad client and get the job done as quickly as possible. They'll wind up putting a lot more boxes in the garage than there need to be and quietly mumble, 'Let them lug 'em in the house themselves.' As an added tweak, they'll flip the boxes so you can't read the labels to see what's in them or where they go," says Doody.
Reputable Movers Are Licensed
Never hire an unlicensed mover. "Your greatest nightmare is getting hooked up with an unlicensed mover. He not only lacks liability insurance, but also workers' comp. If one of these fellows trips and falls down your steps with a heavy piece, get out your checkbook, my friend," he says.
Never Get an Estimate Over the Phone
Doody cautions against any mover who doesn't want to come to your house to do an estimate. If they want to do it over the phone, "You're going to get screwed," he says. For an accurate total, always have a representative visit in person.
They'll Overcharge for Packing Supplies
A common scam is to bill clients for items that should be included. "He'll charge you for each moving pad — pads are free, by the way — and then $4 to tape the pads to the furniture. Or they'll say certain items suddenly need special boxes. And guess what? They're $12 each," cautions Moody. Always inquire ahead of time if any packing supplies will cost extra.
You Have the Right to Halt the Job
"If you don't like the way the movers are handling your things, then be direct. Say, 'Hey, you're making me nervous.' If they're throwing stuff around or seem to be careless, you stop the job. Alert your estimator that you don't know what's going on, but he's going to have a claim for damages if things don't improve. He'll get a supervisor out there, pronto. No reputable mover wants a problem," Doody says.
Keller Williams Realty has several trusted moving companies! Call us at 972.772.7000 or email us at frontdesk552@kw.com!
You're stressed. They're tough and scary. And the clock is ticking. To ensure a hassle-free move, we asked industry veteran and former co-owner of Blue Chip Moving & Storage, Jack Doody, for his advice on how to hire a reputable moving company. Here, he reveals eight common scams you need to watch out for.
Your Bill Could Be Inflated
"A disreputable mover will give you a lowball estimate. Come the move, he'll walk around your house and say, 'Oh, some of these things need to be packed.' Then he'll charge you an exorbitant amount to do it. Or he might say, 'Gee, we're going to have to take that bed apart.' And then he'll tack on another ridiculous charge," Doody explains. The lesson? Be wary of any bill that doesn't match up to your original estimate.
It's Best to Move Little Things Yourself
"If you're going to have underpaid and undervalued and sometimes inadequately screened strangers move your jewelry, you're asking for trouble," Doody cautions. Other small items, like video games, tiny electronics, and CDs, you should probably move yourself to make sure they don't get.
There Should be a Refund Policy
A reputable company shouldn't charge you if you cancel, and they should return your entire deposit. Also, never work with a mover that only accepts cash. "Remember: You can't stop cash. You can stop a credit card," says Doody.
They "Punish" Pushy Clients
Rub movers the wrong way, and they might retaliate. "If they really feel they've been abused and disrespected, they'll want to get away from the bad client and get the job done as quickly as possible. They'll wind up putting a lot more boxes in the garage than there need to be and quietly mumble, 'Let them lug 'em in the house themselves.' As an added tweak, they'll flip the boxes so you can't read the labels to see what's in them or where they go," says Doody.
Reputable Movers Are Licensed
Never hire an unlicensed mover. "Your greatest nightmare is getting hooked up with an unlicensed mover. He not only lacks liability insurance, but also workers' comp. If one of these fellows trips and falls down your steps with a heavy piece, get out your checkbook, my friend," he says.
Never Get an Estimate Over the Phone
Doody cautions against any mover who doesn't want to come to your house to do an estimate. If they want to do it over the phone, "You're going to get screwed," he says. For an accurate total, always have a representative visit in person.
They'll Overcharge for Packing Supplies
A common scam is to bill clients for items that should be included. "He'll charge you for each moving pad — pads are free, by the way — and then $4 to tape the pads to the furniture. Or they'll say certain items suddenly need special boxes. And guess what? They're $12 each," cautions Moody. Always inquire ahead of time if any packing supplies will cost extra.
You Have the Right to Halt the Job
"If you don't like the way the movers are handling your things, then be direct. Say, 'Hey, you're making me nervous.' If they're throwing stuff around or seem to be careless, you stop the job. Alert your estimator that you don't know what's going on, but he's going to have a claim for damages if things don't improve. He'll get a supervisor out there, pronto. No reputable mover wants a problem," Doody says.
Keller Williams Realty has several trusted moving companies! Call us at 972.772.7000 or email us at frontdesk552@kw.com!
Wednesday, March 14, 2012
What Can I Do To Sell My Home?
Provided By Realty Times
It's a question that all sellers ask, yet, many are still searching for answers. At one time, houses flew off the market but today's market conditions have changed.
With the flood of foreclosures, short sales, and excess inventory, some houses sit for a long time on the market. It could take years to move some of those properties and see the excess supply diminish.
However, if you take action and you have a plan, there's a good chance that your home will sell faster.
The first important action step is to bring in the most qualified expert to help. Finding the best agent to guide you through the real estate transaction can be the difference between a real estate dream or nightmare.
Make your home stand out. In a sea of homes for sale, you have to highlight and advertise what makes your home stand out. The upgrades, the location, the amenities, the curb appeal, the well-maintained landscape, the outdoor living space you've created, the "aging-in-place" remodeling you've done... you get the picture.
Take a pad of paper or your iPad and do a walk-through of your home. Look for all the things that a buyer would see as a benefit and list them. When you meet with your agent share these details. Your agent will be able to tell you which features are most important to highlight.
Get real on your pricing. It's hard to deal with this next action step but it's among the most important. Let your agent guide you to the right pricing. I've written columns in the past about how pricing a home too high and how it is a painful, humbling lesson. Your home will sit on the market and, in many cases, not even get walk-throughs, if it's not properly priced.
A qualified, experienced agent, studies the market and understands realistic pricing. The agent isn't emotionally vested in the price and therefore can help you compare your home to others that have sold or are currently on the market so that you can see how your home should be properly priced.
Then when an offer comes in be sure to give careful consideration to it. If it's reasonable take it. If the home is priced right, you will see offers come in and you must be ready to take action.
Depersonalize and declutter. You must realize when you're selling your home, that buyers want to see the home as their own. That's really hard to do when you have your personal mark all over it. Sellers often say, "But I live here." Yes, that's true, but you're now trying to sell the home.
So, pack up your personal belongings and declutter the areas so that the true value of your home can be seen. The rooms will look larger. Buyers will appreciate being able to see each room without getting lost in your pictures, memorabilia, and other stuff.
Also, some items that sellers have in their home might actually offend the buyer, such as game hanging on the walls. Professional stagers or agents, who also have a staging background, can help you easily decide which things should stay and which must go.
In the end, a little inconvenience for a faster sale is really worth it. Take the action steps needed, make your home stand out, and sell your home faster, even in a market that's saturated with homes for sale.
Need more advice on selling your home? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
It's a question that all sellers ask, yet, many are still searching for answers. At one time, houses flew off the market but today's market conditions have changed.
With the flood of foreclosures, short sales, and excess inventory, some houses sit for a long time on the market. It could take years to move some of those properties and see the excess supply diminish.
However, if you take action and you have a plan, there's a good chance that your home will sell faster.
The first important action step is to bring in the most qualified expert to help. Finding the best agent to guide you through the real estate transaction can be the difference between a real estate dream or nightmare.
Make your home stand out. In a sea of homes for sale, you have to highlight and advertise what makes your home stand out. The upgrades, the location, the amenities, the curb appeal, the well-maintained landscape, the outdoor living space you've created, the "aging-in-place" remodeling you've done... you get the picture.
Take a pad of paper or your iPad and do a walk-through of your home. Look for all the things that a buyer would see as a benefit and list them. When you meet with your agent share these details. Your agent will be able to tell you which features are most important to highlight.
Get real on your pricing. It's hard to deal with this next action step but it's among the most important. Let your agent guide you to the right pricing. I've written columns in the past about how pricing a home too high and how it is a painful, humbling lesson. Your home will sit on the market and, in many cases, not even get walk-throughs, if it's not properly priced.
A qualified, experienced agent, studies the market and understands realistic pricing. The agent isn't emotionally vested in the price and therefore can help you compare your home to others that have sold or are currently on the market so that you can see how your home should be properly priced.
Then when an offer comes in be sure to give careful consideration to it. If it's reasonable take it. If the home is priced right, you will see offers come in and you must be ready to take action.
Depersonalize and declutter. You must realize when you're selling your home, that buyers want to see the home as their own. That's really hard to do when you have your personal mark all over it. Sellers often say, "But I live here." Yes, that's true, but you're now trying to sell the home.
So, pack up your personal belongings and declutter the areas so that the true value of your home can be seen. The rooms will look larger. Buyers will appreciate being able to see each room without getting lost in your pictures, memorabilia, and other stuff.
Also, some items that sellers have in their home might actually offend the buyer, such as game hanging on the walls. Professional stagers or agents, who also have a staging background, can help you easily decide which things should stay and which must go.
In the end, a little inconvenience for a faster sale is really worth it. Take the action steps needed, make your home stand out, and sell your home faster, even in a market that's saturated with homes for sale.
Need more advice on selling your home? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
Monday, March 12, 2012
Tips On Buying
Provided By Trulia
Even with the help of an experienced real estate agent, the negotiating process can be frustrating and confusing. Many of us aren’t involved in high-level business negotiations in our day-to-day lives, and even buyers who are savvy businesspersons aren’t used to having a personal stake in the outcome. Good negotiating in real estate isn’t about coming out victorious over the other side, it's about understanding the seller's motivations and striking a deal that satisfies all parties as much as possible.
The following tips can help you survive the negotiation of a real estate purchase:
Don’t focus on price only
Many buyers make the mistake of thinking that price is the only point up for negotiation. Buyers can often negotiate quite a bit of value into a contract in addition to the number on the bottom line, such as a preferred closing date, the seller paying or contributing toward closing costs, concessions for home repairs, and so on.
Don’t move too slowly
Real estate can be an aggressive commodity, and buyers who rest on their laurels run the risk of losing out on desired properties. On the other hand, buyers who have their financing in order from the start are best positioned to make aggressive offers and negotiate from a position of strength. The first step to jumping on a hot property is having your ducks in a row from the start.
Should you find a property that matches many of your wish list items, don’t make the mistake of being overly hesitant. Make a firm, direct and quick offer to a motivated seller, stipulating a time limit for the response, and you just might get the terms you request.
Avoid responding on the spot
While you want to move fast, particularly in a hot buyer’s market, never respond verbally to an offer or counteroffer. Ask for all offers in writing and respond in kind. You can still move quickly and with the help of your real estate and legal representation, but don't make any “handshake agreements” on the spot that may lead to issues later on.
Keep negotiations professional
It can be difficult not to take negotiations personally, especially when your potential home is at stake. The need to stay calm and removed from the situation is a strong reason to have the guidance of a dedicated real estate professional who will represent your interests while keeping an even keel. As negotiations progress, remain composed and direct in all your dealings. Ask the seller to be specific about any terms they aren’t satisfied with and ask for simple clarifications regarding the changes they would like to see. If a seller doesn’t respond well to that sort of request, be prepared to walk away. Remember that ultimately this is just business, even if from a personal standpoint the stakes are raised.
Don’t make a lowball offer without a reason
There can be very valid reasons for making an offer significantly below the seller’s asking price. The home may be priced well above comparable homes in the market, may have recently been assessed at a lower value, or may require costly repairs or updates. Making a lower offer under these circumstances is well within reason and, if done tactfully, can persuade the seller to adjust their asking price down.
If you’re hoping to get the seller to greatly reduce the price simply to meet your budget or ensure a good “deal,” you’re not negotiating in good faith and risk alienating the seller entirely. Keep the seller’s desire to get a good value for their home in mind when submitting an offer below the asking price, and be prepared to justify the difference.
Don’t be afraid to ask
Shrewd negotiators assume that nothing is ever truly off the table, at least not entirely. When done correctly, it doesn’t hurt to ask the seller for special concessions. Interested in a piece of antique furniture or the barbeque on the back patio? Hoping the seller will pay to replace worn roofing or siding? Ask for what you want, within reason. As always, be prepared to remain flexible on other terms that the seller may ask for.
Don’t obsess
When it comes to the negotiation for what may be your next home, it's easy to become anxious and follow the process relentlessly. Try to remember to relax, and if at all possible leave as much of the process to your professional guides. Doing so will leave you less stressed and more able to approach the negotiation without frayed nerves.
Are you interested in purchasing a home? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
Even with the help of an experienced real estate agent, the negotiating process can be frustrating and confusing. Many of us aren’t involved in high-level business negotiations in our day-to-day lives, and even buyers who are savvy businesspersons aren’t used to having a personal stake in the outcome. Good negotiating in real estate isn’t about coming out victorious over the other side, it's about understanding the seller's motivations and striking a deal that satisfies all parties as much as possible.
The following tips can help you survive the negotiation of a real estate purchase:
Don’t focus on price only
Many buyers make the mistake of thinking that price is the only point up for negotiation. Buyers can often negotiate quite a bit of value into a contract in addition to the number on the bottom line, such as a preferred closing date, the seller paying or contributing toward closing costs, concessions for home repairs, and so on.
Don’t move too slowly
Real estate can be an aggressive commodity, and buyers who rest on their laurels run the risk of losing out on desired properties. On the other hand, buyers who have their financing in order from the start are best positioned to make aggressive offers and negotiate from a position of strength. The first step to jumping on a hot property is having your ducks in a row from the start.
Should you find a property that matches many of your wish list items, don’t make the mistake of being overly hesitant. Make a firm, direct and quick offer to a motivated seller, stipulating a time limit for the response, and you just might get the terms you request.
Avoid responding on the spot
While you want to move fast, particularly in a hot buyer’s market, never respond verbally to an offer or counteroffer. Ask for all offers in writing and respond in kind. You can still move quickly and with the help of your real estate and legal representation, but don't make any “handshake agreements” on the spot that may lead to issues later on.
Keep negotiations professional
It can be difficult not to take negotiations personally, especially when your potential home is at stake. The need to stay calm and removed from the situation is a strong reason to have the guidance of a dedicated real estate professional who will represent your interests while keeping an even keel. As negotiations progress, remain composed and direct in all your dealings. Ask the seller to be specific about any terms they aren’t satisfied with and ask for simple clarifications regarding the changes they would like to see. If a seller doesn’t respond well to that sort of request, be prepared to walk away. Remember that ultimately this is just business, even if from a personal standpoint the stakes are raised.
Don’t make a lowball offer without a reason
There can be very valid reasons for making an offer significantly below the seller’s asking price. The home may be priced well above comparable homes in the market, may have recently been assessed at a lower value, or may require costly repairs or updates. Making a lower offer under these circumstances is well within reason and, if done tactfully, can persuade the seller to adjust their asking price down.
If you’re hoping to get the seller to greatly reduce the price simply to meet your budget or ensure a good “deal,” you’re not negotiating in good faith and risk alienating the seller entirely. Keep the seller’s desire to get a good value for their home in mind when submitting an offer below the asking price, and be prepared to justify the difference.
Don’t be afraid to ask
Shrewd negotiators assume that nothing is ever truly off the table, at least not entirely. When done correctly, it doesn’t hurt to ask the seller for special concessions. Interested in a piece of antique furniture or the barbeque on the back patio? Hoping the seller will pay to replace worn roofing or siding? Ask for what you want, within reason. As always, be prepared to remain flexible on other terms that the seller may ask for.
Don’t obsess
When it comes to the negotiation for what may be your next home, it's easy to become anxious and follow the process relentlessly. Try to remember to relax, and if at all possible leave as much of the process to your professional guides. Doing so will leave you less stressed and more able to approach the negotiation without frayed nerves.
Are you interested in purchasing a home? Give us a call at 972.772.7000 or email us at frontdesk552@kw.com.
Friday, March 9, 2012
Insurers Shifting Catastrophe Costs to Consumers
Provided By Realty Times
Consumers in 11 states hardest hit by weather catastrophes in 2011 should brace themselves for homeowners insurance rate increases amounting to nearly $100 on every $500 in coverage.
Not that the hikes are necessary.In a recent study, the Consumer Federation of America (CFA) says insurers are more and more often shifting the cost of weather catastrophes onto homeowners as they "significantly and methodically" decrease their financial responsibility for weather catastrophes like hurricanes, tornados and floods.The scathing study says "the insurance industry has moved from its historic role as a calculated risk-taker to one of a risk-avoider, exposing consumers and taxpayers to much higher costs."
The report comes on the heels of insurance rating and information source A.M. Best reporting recent rate increase request filings of up to 20 percent or more from insurance companies in 11 states, including Alabama, Arizona, Colorado, Georgia, Kansas, Kentucky, Maine, South Carolina, South Dakota, Tennessee and Virginia. The rate increase requests follow a record year for major disasters. The Federal Emergency Management Agency (FEMA) reports the nation suffered 99 major disaster declarations in 2011, more than any other year since FEMA began recording the statistic back in 1953.Hurricane Irene slammed the Eastern Seaboard along with Tropical Storms Irene and Lee. Swarms of tornados also twisted through the Southeast and Midwest last year, taking lives and destroying communities."
Insurance commissioners should block many of these pending rate increases because they place an unwarranted financial burden on homeowners, many of whom are coping with severe financial difficulties in a bad economy," said J. Robert Hunter, CFA's Director of Insurance and a former federal insurance administrator and state insurance commissioner. "
In the last 20 years, insurers have been so successful at shifting costs to consumers and taxpayers that they are currently overcapitalized and cannot justify higher homeowners' rates," Hunter said.To demonstrate how much more consumers are paying for catastrophe coverage in recent years, CFA's study "The Insurance Industry's Incredible Disappearing Weather Catastrophe Risk" offered a hypothetical example of how much the owner of a home worth $100,000 with a typical policy would have paid for losses after Hurricane Katrina in 2005, compared to after Hurricane Andrew in 1992. Assuming that the home had a $500 deductible under Andrew and a 5 percent deductible during Katrina, if $10,000 in damages occurred, the homeowner would have paid $500 to repair the damage after Andrew, but $5,000 after Katrina. If the homeowner had to upgrade the home's electrical system, the insurance policy would have fully paid for these costs after Andrew, but paid nothing after Katrina.
If some water damage occurred at the same time, the policy would have fully covered the wind claim of $9,500 after Andrew, but paid nothing after Katrina. The study also suggests insurers are so over-capitalized the higher rates are unnecessary.The traditional measure of adequate financial solidity for property/casualty insurers was whether they carried $1 of surplus for every $2 they made in premiums. Industry experts says adequate solvency for property/casualty insurers is a surplus of $1.50 for every $1 they collect in premiums, but the current surplus averages about $1 for every 78 cents they collect in premiums - about double the required surplus."Even if insurers had to pay for all of the ten most costly catastrophic events in United States history, the property/casualty industry surplus would still be at an ultra-safe ratio of 1.2 to 1," according to CFA.
Consumers in 11 states hardest hit by weather catastrophes in 2011 should brace themselves for homeowners insurance rate increases amounting to nearly $100 on every $500 in coverage.
Not that the hikes are necessary.In a recent study, the Consumer Federation of America (CFA) says insurers are more and more often shifting the cost of weather catastrophes onto homeowners as they "significantly and methodically" decrease their financial responsibility for weather catastrophes like hurricanes, tornados and floods.The scathing study says "the insurance industry has moved from its historic role as a calculated risk-taker to one of a risk-avoider, exposing consumers and taxpayers to much higher costs."
The report comes on the heels of insurance rating and information source A.M. Best reporting recent rate increase request filings of up to 20 percent or more from insurance companies in 11 states, including Alabama, Arizona, Colorado, Georgia, Kansas, Kentucky, Maine, South Carolina, South Dakota, Tennessee and Virginia. The rate increase requests follow a record year for major disasters. The Federal Emergency Management Agency (FEMA) reports the nation suffered 99 major disaster declarations in 2011, more than any other year since FEMA began recording the statistic back in 1953.Hurricane Irene slammed the Eastern Seaboard along with Tropical Storms Irene and Lee. Swarms of tornados also twisted through the Southeast and Midwest last year, taking lives and destroying communities."
Insurance commissioners should block many of these pending rate increases because they place an unwarranted financial burden on homeowners, many of whom are coping with severe financial difficulties in a bad economy," said J. Robert Hunter, CFA's Director of Insurance and a former federal insurance administrator and state insurance commissioner. "
In the last 20 years, insurers have been so successful at shifting costs to consumers and taxpayers that they are currently overcapitalized and cannot justify higher homeowners' rates," Hunter said.To demonstrate how much more consumers are paying for catastrophe coverage in recent years, CFA's study "The Insurance Industry's Incredible Disappearing Weather Catastrophe Risk" offered a hypothetical example of how much the owner of a home worth $100,000 with a typical policy would have paid for losses after Hurricane Katrina in 2005, compared to after Hurricane Andrew in 1992. Assuming that the home had a $500 deductible under Andrew and a 5 percent deductible during Katrina, if $10,000 in damages occurred, the homeowner would have paid $500 to repair the damage after Andrew, but $5,000 after Katrina. If the homeowner had to upgrade the home's electrical system, the insurance policy would have fully paid for these costs after Andrew, but paid nothing after Katrina.
If some water damage occurred at the same time, the policy would have fully covered the wind claim of $9,500 after Andrew, but paid nothing after Katrina. The study also suggests insurers are so over-capitalized the higher rates are unnecessary.The traditional measure of adequate financial solidity for property/casualty insurers was whether they carried $1 of surplus for every $2 they made in premiums. Industry experts says adequate solvency for property/casualty insurers is a surplus of $1.50 for every $1 they collect in premiums, but the current surplus averages about $1 for every 78 cents they collect in premiums - about double the required surplus."Even if insurers had to pay for all of the ten most costly catastrophic events in United States history, the property/casualty industry surplus would still be at an ultra-safe ratio of 1.2 to 1," according to CFA.
Wednesday, March 7, 2012
How to maintain a healthy credit score
Provided By Trulia
When you're in the market to buy a home, your credit score is very important. Most lenders use this three-digit number (which is created by evaluating factors like how much debt you have, your payment history for things like credit cards and car loans, and the length of your credit history) to determine your credit risk. This number helps lenders predict whether you'll pay back your loans and if you'll pay them on time.
Mortgage borrowers with the best credit ratings generally get lower interest rates. Their monthly mortgage payments are also lower, according to myfico.com, the website for the Fair Issac Corp., which created the most-used credit rating, the FICO score. (Your FICO score can range from 300 to 850; the higher your score, the better. Credit scores tend to be better for people who have credit -- e.g., have credit card accounts -- and pay off their credit on time.)
Generally, consumers with ratings in the mid 700s or higher get the best interest rates. (But this depends on the economic climate -- 680 was once considered a good score.)
For example, when we last checked data made available on myfico.com, a person with a better FICO score (760-850) was able to get a monthly mortgage payment for a 30-year fixed mortgage that was about $41 lower than someone who had a credit score of 700-759, according to the website's calculations. That person with the better FICO score would spend $492 less on mortgage payments over a year's period than the person with a lower score.
So, if you can increase your credit rating, you could save money over the length of your mortgage. (We all like to save money!) But raising your credit score isn't easy and takes time. (Like getting into shape, or sticking to a diet.) But if you keep to it and are diligent about it, you can increase your credit rating. Here's how:Check your credit reportKeep tabs on your credit report by getting a free report once a year with freecreditreport.com (be careful of other scam sites). Go over it carefully, and make sure there aren't any errors, such as a payment that was reported late that wasn't, and mentions of accounts that don't belong to you. Report any errors on the provided form.
Pay bills on timeLenders don't like to see late payments -- even paying bills just a few days after the due date can negatively impact your score. Not paying your bills on time will lower your credit rating. Also, the longer you keep paying your bills on time, the better your credit score will be.Reduce credit card debtWork to keep the balances low on your credit cards -- try to keep them well below your credit limits. Pay off as much credit card debt as you can, paying off the cards that are closest to their credit limits first. (Lenders like to see credit activity, but it doesn't look good if it appears that you are stretched to your credit limits.)
Don't open/close accountsAlso, don't open new cards while trying to increase your rating, but don't close old accounts, either. (Both could negatively affect your score.) If you are new to credit, rapidly opening new credit accounts could make you look risky and will also lower your credit age. (Lenders prefer people with stable and lengthy credit histories.)Use your old cardsIf you have any credit cards you haven't used in a while, try using them again. By making charges on the cards that you took out a long time ago, you're improving the age of your credit history and will look like a more reliable borrower.
When you're in the market to buy a home, your credit score is very important. Most lenders use this three-digit number (which is created by evaluating factors like how much debt you have, your payment history for things like credit cards and car loans, and the length of your credit history) to determine your credit risk. This number helps lenders predict whether you'll pay back your loans and if you'll pay them on time.
Mortgage borrowers with the best credit ratings generally get lower interest rates. Their monthly mortgage payments are also lower, according to myfico.com, the website for the Fair Issac Corp., which created the most-used credit rating, the FICO score. (Your FICO score can range from 300 to 850; the higher your score, the better. Credit scores tend to be better for people who have credit -- e.g., have credit card accounts -- and pay off their credit on time.)
Generally, consumers with ratings in the mid 700s or higher get the best interest rates. (But this depends on the economic climate -- 680 was once considered a good score.)
For example, when we last checked data made available on myfico.com, a person with a better FICO score (760-850) was able to get a monthly mortgage payment for a 30-year fixed mortgage that was about $41 lower than someone who had a credit score of 700-759, according to the website's calculations. That person with the better FICO score would spend $492 less on mortgage payments over a year's period than the person with a lower score.
So, if you can increase your credit rating, you could save money over the length of your mortgage. (We all like to save money!) But raising your credit score isn't easy and takes time. (Like getting into shape, or sticking to a diet.) But if you keep to it and are diligent about it, you can increase your credit rating. Here's how:Check your credit reportKeep tabs on your credit report by getting a free report once a year with freecreditreport.com (be careful of other scam sites). Go over it carefully, and make sure there aren't any errors, such as a payment that was reported late that wasn't, and mentions of accounts that don't belong to you. Report any errors on the provided form.
Pay bills on timeLenders don't like to see late payments -- even paying bills just a few days after the due date can negatively impact your score. Not paying your bills on time will lower your credit rating. Also, the longer you keep paying your bills on time, the better your credit score will be.Reduce credit card debtWork to keep the balances low on your credit cards -- try to keep them well below your credit limits. Pay off as much credit card debt as you can, paying off the cards that are closest to their credit limits first. (Lenders like to see credit activity, but it doesn't look good if it appears that you are stretched to your credit limits.)
Don't open/close accountsAlso, don't open new cards while trying to increase your rating, but don't close old accounts, either. (Both could negatively affect your score.) If you are new to credit, rapidly opening new credit accounts could make you look risky and will also lower your credit age. (Lenders prefer people with stable and lengthy credit histories.)Use your old cardsIf you have any credit cards you haven't used in a while, try using them again. By making charges on the cards that you took out a long time ago, you're improving the age of your credit history and will look like a more reliable borrower.
Monday, March 5, 2012
30-year Fixed-rate Mortgage Averages 3.90 Percent
Provided By Realty Times
In Freddie Mac's results of its Primary Mortgage Market Survey® (PMMS®), fixed mortgage rates moved slightly lower for the week and remaining near their 60-year lows helping to keep homebuyer affordability high.
30-year fixed-rate mortgage (FRM) averaged 3.90 percent with an average 0.8 point for the week ending March 1, 2012, down from last week when it also averaged 3.95 percent. Last year at this time, the 30-year FRM averaged 4.87 percent.
15-year FRM this week averaged 3.17 percent with an average 0.8 point, down from last week when it averaged 3.19 percent. A year ago at this time, the 15-year FRM averaged 4.15 percent. 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.83 percent this week, with an average 0.7 point, up from last week when it averaged 2.80 percent. A year ago, the 5-year ARM averaged 3.72 percent. 1-year Treasury-indexed ARM averaged 2.72 percent this week with an average 0.6 point, down from last week when it averaged 2.73 percent. At this time last year, the 1-year ARM averaged 3.23 percent.
According to Frank Nothaft, vice president and chief economist, Freddie Mac:"Fixed mortgage rates bottomed out in January and February of this year which is helping spur the housing market. For instance, pending existing home sales rose in January to its strongest pace since April 2010 and sales figures for December saw upward revisions. In addition, the Federal Reserve noted in its February 29th regional economic review (or Beige Book) that residential real estate activity increased modestly in most of its Districts over the course of January and early February, with several reports of increased home sales."
In Freddie Mac's results of its Primary Mortgage Market Survey® (PMMS®), fixed mortgage rates moved slightly lower for the week and remaining near their 60-year lows helping to keep homebuyer affordability high.
30-year fixed-rate mortgage (FRM) averaged 3.90 percent with an average 0.8 point for the week ending March 1, 2012, down from last week when it also averaged 3.95 percent. Last year at this time, the 30-year FRM averaged 4.87 percent.
15-year FRM this week averaged 3.17 percent with an average 0.8 point, down from last week when it averaged 3.19 percent. A year ago at this time, the 15-year FRM averaged 4.15 percent. 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.83 percent this week, with an average 0.7 point, up from last week when it averaged 2.80 percent. A year ago, the 5-year ARM averaged 3.72 percent. 1-year Treasury-indexed ARM averaged 2.72 percent this week with an average 0.6 point, down from last week when it averaged 2.73 percent. At this time last year, the 1-year ARM averaged 3.23 percent.
According to Frank Nothaft, vice president and chief economist, Freddie Mac:"Fixed mortgage rates bottomed out in January and February of this year which is helping spur the housing market. For instance, pending existing home sales rose in January to its strongest pace since April 2010 and sales figures for December saw upward revisions. In addition, the Federal Reserve noted in its February 29th regional economic review (or Beige Book) that residential real estate activity increased modestly in most of its Districts over the course of January and early February, with several reports of increased home sales."
Friday, March 2, 2012
Painting Surfaces That Don't Need Painting
Provided By Realty Times
This just in from the Paint Quality Institute: you can paint "maintenance-free" building materials.
The same people who gave us a paint primer on using colors to manipulate moods and insight on slathering on acrylics to add action to seasonal decor also offers tips for painting materials that could do just fine without an extra coat.
Why?
Why not?
Perhaps blue has your bored, yellow isn't so sunny after all or white is just too, well, white.
Whether it's to spruce up the appearance or provide an extra layer of protection against a forecast for stormy weather you can paint vinyl siding, composite decking, fiberglass trim, factory-finished aluminum and other materials designed to hold up with little more than regular cleaning.
"Most of the time, you can paint these materials," says Debbie Zimmer, paint and color expert at the Paint Quality Institute.
"But it's important that you follow the right procedures when doing so," Zimmer added.
Just as you would prepare for any paint job, the first step is to make any necessary repairs.
Then, scrub clean and fully rinse the surface before applying any coating, says Zimmer.
You must also remove any mold or mildew with a water/bleach solution that's three parts water to one part bleach and, again, thoroughly rinse the surface with lots of water.
One more step before painting - apply a fresh top coat of quality acrylic latex primer -- especially on maintenance-free materials. A primer will give the paint a better grip on the surface and the final job will have more uniform color and greater sheen.
The paint should be a quality 100 percent acrylic latex paint for virtually any type of exterior painting. That's especially true when painting maintenance free surfaces. Maintenance-free materials typically are very smooth and slick.
"Top quality 100 percent acrylic latex paint produces a very durable paint film, and it has very consistent color and gloss," says Zimmer.
"By applying this type of paint, the surface will look great, and it will stay that way for years to come," she added.
The tools you use to prime and paint are just as important as the primer and paint. Use quality brushes and rollers to slather on thicker, more protective layers of the coatings and get the best possible appearance from the paint job.
Avoid doing the work on days that are too hot, cold, humid or windy. Chose moderate weather. Climatic extremes can have an adverse effect on paint as it dries and cures and compromise the integrity of the finished job.
Paint cans typically come with temperature guidelines to help you choose the best day to get to work.
The Paint Quality Institute offers a host of detailed, step-by-step painting times for work on interior or exterior surfaces.
This just in from the Paint Quality Institute: you can paint "maintenance-free" building materials.
The same people who gave us a paint primer on using colors to manipulate moods and insight on slathering on acrylics to add action to seasonal decor also offers tips for painting materials that could do just fine without an extra coat.
Why?
Why not?
Perhaps blue has your bored, yellow isn't so sunny after all or white is just too, well, white.
Whether it's to spruce up the appearance or provide an extra layer of protection against a forecast for stormy weather you can paint vinyl siding, composite decking, fiberglass trim, factory-finished aluminum and other materials designed to hold up with little more than regular cleaning.
"Most of the time, you can paint these materials," says Debbie Zimmer, paint and color expert at the Paint Quality Institute.
"But it's important that you follow the right procedures when doing so," Zimmer added.
Just as you would prepare for any paint job, the first step is to make any necessary repairs.
Then, scrub clean and fully rinse the surface before applying any coating, says Zimmer.
You must also remove any mold or mildew with a water/bleach solution that's three parts water to one part bleach and, again, thoroughly rinse the surface with lots of water.
One more step before painting - apply a fresh top coat of quality acrylic latex primer -- especially on maintenance-free materials. A primer will give the paint a better grip on the surface and the final job will have more uniform color and greater sheen.
The paint should be a quality 100 percent acrylic latex paint for virtually any type of exterior painting. That's especially true when painting maintenance free surfaces. Maintenance-free materials typically are very smooth and slick.
"Top quality 100 percent acrylic latex paint produces a very durable paint film, and it has very consistent color and gloss," says Zimmer.
"By applying this type of paint, the surface will look great, and it will stay that way for years to come," she added.
The tools you use to prime and paint are just as important as the primer and paint. Use quality brushes and rollers to slather on thicker, more protective layers of the coatings and get the best possible appearance from the paint job.
Avoid doing the work on days that are too hot, cold, humid or windy. Chose moderate weather. Climatic extremes can have an adverse effect on paint as it dries and cures and compromise the integrity of the finished job.
Paint cans typically come with temperature guidelines to help you choose the best day to get to work.
The Paint Quality Institute offers a host of detailed, step-by-step painting times for work on interior or exterior surfaces.
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