Covington Broker's Blog

10 Important Tips to Successful Real Estate Investing

2010-05-26T13:57:00.000-07:00

10 Important Tips to Successful Real Estate Investing

By Paige Tepping

RISMEDIA, May 26, 2010--When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:

1. Compare property values and rents

Financial statistics only go so far; the best measure of a property's market value is often the sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a must.

2. Pay attention to tax laws

Don't base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you should look for as an investor.

3. Specialize in something you know

Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you'll benefit from experience by specializing in one aspect of investment real estate properties.

4. Know the costs before getting started

Know the financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid investment.

5. Know where your tenants are coming from

If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants' security deposits at closing.

6. Assess the tax situation

Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor.

7. Investigate insurance coverage

If a seller's coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.

8. Confirm utility costs

Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant's rent.

9. Consult your accountant

Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code.

10. Inspect

Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In some cases, hiring professional inspectors to examine the structural mechanical system may be a sound investment.

7 Questions to Ask Before Buying a Condo

2010-05-21T08:18:00.000-07:00

7 Questions to Ask Before Buying a Condo

1. "What's the Beef?"

Look at the minutes of the condo association board meetings to see what the owners have been griping about. Any complaints will reveal any management difficulties. Reading the minutes will reveal the sorts of projects that are under way at the complex -- projects the seller may have neglected to mention.

2. "Who's Been Naughty and Who's Been Nice?"

Find out the delinquency rates of present owners. If people aren't paying their association dues on time, that is either a sign of discontent or an indication that the association might be underfunded.

3. "How Much Is In the Repair Fund?"

Ask if the community has done a reserve-fund review in the past five years. Lester Giese, the author of The 99 Best Residential & Recreational Communities in America, recommends the following formula: If the complex is one to 10 years old, the reserve fund should have 10% of the cost of replaceable items (roofs, roads, tennis courts, etc.). Between 10 and 20 years old, the repair fund should be at 25% to 30%. At 20 years, that amount should be 50% or above. Residents who brag that they don't pay much in maintenance may be in a complex that either is not being kept up well or is living beyond its means.

4. "Can You Cover Me?"

If you look at nothing else, get a copy of the certificate of insurance, which is a summary of the association's policy. First see if the replacement costs covered by the policy are an accurate estimate of the cost of rebuilding. Then make sure that the policy has a building-ordinance clause, which means that the insurance will cover the cost of bringing the building up to code if there is any rebuilding to be done. On older buildings, there may have been many code upgrades since the time of construction. If you have trouble understanding the insurance lingo, take the insurance certificate to an agent whom you trust and who understands the state laws.

5. "Does the Association Present Any Legal Problems?"

Buying a single-family home without a lawyer is no big deal for many people. But with a condo, there's so much more involved. Contact a local real estate lawyer and have him or her go over the bylaws of the association. Do they make sense? Are they consistent with the state laws? Benny Kass, a Washington real estate attorney, recommends that you also have your lawyer screen the association at the local courthouse, to see if any owners have filed suit against it.

6. "Is the Complex Renter-Friendly?"

If the renter population is over 10%, there should be clear rental policies, either listed in the bylaws or tacked on as an amendment. Does the management company find renters for you? If so, do they get enough good renters? Ask other tenants about their experience. In addition, ask to see the association's rental lease, and have a real estate lawyer look it over. Keep one thing in mind, though: An association can change its bylaws to prohibit or restrict renting at any time. The more owners who rent, the less chance that will happen.

7. "Am I My Community's Keeper?"

Watch out for a condo whose owners manage the place themselves. Although many are operated efficiently, self-management can lead to more hassles for owners -- especially those who live thousands of miles away. If the complex is professionally managed, check out the management company as thoroughly as you check out the association. Ask other owners. Ask people in nearby buildings. And be sure to interview the day-to-day manager directly. If you hook up with a bad manager, you can be sure of this: Your dream condo will keep you up at night.

Open House Tips For Selling Your Home

2010-05-20T08:32:00.000-07:00

Open House Tips For Selling Your Home

Tour Your Home. Critique your house: examine it inside and out, and smell for offensive odors. Ask a trusted friend to join you. Make note of any quick fixes to be made.

Declutter and De-Personalize. To make rooms feel more spacious, remove excess and oversized furniture. Consider rearranging remaining furniture to visually expand rooms. Clean out and organize your closets, garage, cabinets and pantry. Also, remove or hide items like family photographs, knick-knacks and toiletries. Let potential buyers imagine the space as their own.

Bring in More Light. The brighter your home is, the larger it will seem. Wash your windows and screens to let in more light. Repair or replace dingy, torn or sagging screens. Use higher wattage light bulbs to make rooms brighter, especially in basements. When you hold your open house, be sure all lights are on, and all curtains are open.

Get Rid of Odors. Steam clean your carpeting and drapes to eliminate smoke and pet odors. Change your bed linens and towels regularly. Keep the windows open, and keep pets outside as much as possible. On the day of your open house, light a scented candle. You can also simmer apples, cloves and cinnamon on the stove an hour before prospective buyers arrive.

Clean, Clean, Clean. A house that is extra clean makes a powerful first impression. Don't forget to look in places you might otherwise ignore: smudges on light-switch plates or dust on baseboards. And give extra attention to your kitchen and bathrooms, since these are the most important rooms to buyers.

Expose Desirable Features. Show off your house's best qualities: beautiful hardwood floors, custom windows or an amazing view.

Sell with Neutral Colors. Neutral colors like beige or cream help sell your house, even though they may not fit your aesthetic sensibilities. Paint to sell.

Give the Exterior a Facelift. Boost curb appeal with clean gutters, mown lawn and swept walkway. Power wash siding, sidewalks, deck and driveway. Add potted plants – suitable to the season – to your entryway, deck or patio. Let us recommend the right plants for your project.

Summer Open House Tips

When preparing for a summertime open house, you'll want to go that extra mile with your home's exterior:

Accent Your Entryway. Buy a new light fixture, install a new lockset and kickplate, and buy new house numbers.

Keep Your Lawn Impeccable. This is no time for dandelions, brown patches or bare spots. Get your lawn looking its best. Also, add a fresh layer of mulch. Try our Mulch Calculator to see how much you'll need.

Install a New Mailbox. If your mailbox is old and faded, take the time to replace it.

Refresh Your Deck. Rejuvenate your deck furnishings, and add playful items like a bright umbrella or potted plants.

Winter Open House Tips

With its inclement weather and shorter days, winter isn't the ideal time for house hunting. Create a warm, inviting atmosphere to sell during the more frigid months.

Check the Heating System. Replace furnace filters, fill oil or propane tanks, clean registers and air ducts, check your home's ventilation, and arrange a chimney inspection.

Improve Energy Efficiency. Caulk windows and pipes. Add weather stripping around doors, and insulate your water heater and attic. Consider using heavier drapes or insulated shades to block drafts.

Winterize Your Home. Put away summer patio furnishings, grills and garden houses. Close your pool (if applicable), and shut off the outside water.

Keep Up with the Weather. Clear snow, mud and puddles from all walkways and driveways.

Warm Up Your Home. Schedule your open house for high-daylight hours. Set the temperature at a comfortable level. If you have a fireplace, light a fire. Add cinnamon sticks or cloves to the fire for a soothing aroma. Note: Never leave a burning fire unattended.

Outdoors. Add a wind chime, birdbath or doormat to make your outdoor space more enticing.

Living Areas. Place fresh flowers in the living room and bedrooms, and softly play relaxing music during the open house.

Kitchen/Dining Room. In the kitchen, put out a bowl of citrus fruit. Run a sliced fresh lemon through the garbage disposal before the open house for a clean scent. Set the dining table with your favorite tablecloth and best china and crystal. And leave bottled water for your potential buyers.

Bed/Bath. Replace shower curtains and liners for a fresh look and that “new smell”. Put car wax on sinks and tubs to get a glossy sheen.

There are many things that can make an open house successful. Don't worry, your hard work will be noticed. Remember, it pays to help buyers envision the house as their home.

2010-05-19T10:47:00.001-07:00

From the Brochure: "The Four R's of Short Sales...and More - The Transparent Approach to a Real Estate-Related Crisis"

Homeowners... Recovering and regaining control

Q. What are my options as a home seller when my property is in or heading toward default?
A. In the event that you have been delinquent in paying your mortgage or anticipate that you will not be able to make payments moving forward, your options will vary based upon several factors or variables that are specific to you and your property. Always remember that each possible resolution will be evaluated on a case-by-case basis by all parties involved. When considering your options, you should take into account:

the amount of equity you have in your property compared to the outstanding loan balance
the additional financial resources you may be able to bring to bear
whether or not you live in a homestead state, and the nature and amount of the homestead exemption
and/or the amount of private mortgage insurance you have.
All of these factors should be taken into account along with many other variables and special conditions.
The most important decision you need to make is to "make a decision." Typically, when homeowners avoid confronting the serious lifestyle and financial consequences of defaulting on their mortgage, they end up with a significantly more deleterious outcome than they would have, had they taken charge of their own destiny while they could.

Once you decide to take action, we recommend that you contact a lawyer and a real estate agent qualified to assist with your special real estate needs. Top 5 in Real Estate members are not just committed to helping you pursue the potential option of a short sale, but to encouraging you to fully consider all other options that may be available.

Early on in the potential foreclosure process, all homeowners should not only contact an attorney, but also research all potential guidance and assistance available from the government, including the U.S. Department of Housing and Urban Development (HUD). HUD's Guide to Avoiding Foreclosure may be particularly helpful. HUD's toll-free telephone number is (800) 569-4287. Not all homeowners, however, can qualify for certain HUD programs.

Stage to sell your home fast

2010-05-19T10:17:00.000-07:00

Stage to Sell Your Home Fast

RISMEDIA, May 19, 2010--Surveys show that staging pays off and often helps to sell a home fast. But your clients don't have to spend thousands to make a big impact. Put the home center stage with these thrifty tips:

1. First Impressions Count. Roll out the red carpet for potential home buyers by sprucing up your entryways, especially the one on a lockbox. Welcome mats, planters filled with seasonal flowers, and clutter-free foyers and hallways set the stage.

2. Sell the Space, Not Your Stuff. Remember that the goal of a successful showing is to make a prospect feel at home – like it's theirs, not yours. Put away your extensive personal collections. Less is more: open up your space so prospects can actually see what they're buying.

3. Paint and Elbow Grease Work Wonders. Fresh paint and a thorough cleaning will give you the greatest “bang for your buck”. Remember that neutral walls are your best bet when staging a home for sale. Lowe's has all the right shades to make your home more inviting. Get started with Lowe's online Paint Visualizer.

4. Go with the Flow. Arrange furniture for easy traffic flow. Consider placing a major piece of furniture at an angle, such as a couch or desk. Angles add interest and can create a more open feel.

5. See the Light. Move lamps to dark corners and arrange window treatments so that natural light floods your rooms. Brighter is better, and your rooms will look larger. Visit Lowe's extensive lighting section for the latest in fashionable, functional lighting.

6. Go Green. Live plants can add decorative flair, without spending a bundle. Plants and cut flowers have a way of warming up a room.

7. Don't Forget the Outdoors. If you have a porch, deck or patio, clean the furniture and replace worn cushions. Give your deck a fresh finish with a new stain and seal.

8. Make the Kitchen Sparkle. Declutter the countertops by removing toasters, food processors, and other non-decorative items. If you have a breakfast table or counter, put out a couple of table settings complete with place mats, napkins, and dinnerware.

9. Warm Up an Empty Home. If your home is vacant, consider renting furniture for key rooms, but don't go overboard. Ask your real estate professional for advice, based on your home's unique features and selling points.

These home staging tips are a great place to start as you gather ideas for your open house. "For more tips, check out our articles about preparing your house for sale."

2009-10-30T16:46:00.001-07:00

Daily Real Estate News | October 29, 2009 | Share
Homebuyer Credit Gets New Life
Key lawmakers in the Senate have tentatively agreed to extend the existing $8,000 tax credit for first-time home buyers and also offer a new $6,500 credit for existing homeowners who have lived in their current residence for a consecutive five-year period in the past eight years.

Home buyers must be under contract by April 30, 2010, and close before July 1. House Democrats have expressed concern about the cost of the tax credit for the government, and allegations of abuse have resulted in an IRS probe of the program.

Source: Wall Street Journal, Corey Boles and John D. McKinnon (10/29/09)

Take Advantage of First-Time Home Buyer Tax Credit

2009-10-08T19:07:00.000-07:00

1.4 Million Families Have Taken Advantage of First-Time Home Buyer Tax Credit, More Claims Expected

RISMEDIA, October 8, 2009—With the First-Time Home Buyer Tax Credit deadline quickly approaching, the Internal Revenue Service recently reminded potential home buyers they must complete their first-time home purchases before Dec. 1, 2009 to qualify for the special first-time home buyer credit. The American Recovery and Reinvestment Act extended the tax credit, which has provided a tax benefit to more than 1.4 million taxpayers so far.

The credit of up to $8,000 is generally available to home buyers with qualifying income levels who have never owned a home or have not owned one in the past three years.

The IRS encouraged all eligible homebuyers to take advantage of the first-time home buyer credit but at the same time cautioned taxpayers to avoid schemes that help ineligible people file false claims for the credit. Currently, the agency is investigating a number of cases of potential fraud and is using computer screening tools to identify questionable claims for the credit.

Because the credit is only in effect for a limited time, those considering buying a home must act soon to qualify for the credit. Under the Recovery Act, an eligible home purchase must be completed before Dec. 1, 2009. This means that the last day to close on a home is Nov. 30.

The credit cannot be claimed until after the purchase is completed. For purchases made this year before Dec. 1, taxpayers have the option of claiming the credit on their 2008 returns or waiting until next year and claiming it on their 2009 returns.

For those considering a home purchase this fall, here are some other details about the first-time home buyer credit:

-The credit is 10% of the purchase price of the home, with a maximum available credit of $8,000 for either a single taxpayer or a married couple filing jointly. The limit is $4,000 for a married person filing a separate return. In most cases, the full credit will be available for homes costing $80,000 or more.

-The credit reduces the taxpayer’s tax bill or increases his or her refund, dollar for dollar. Unlike most tax credits, the first-time home buyer credit is fully refundable. This means that the credit will be paid to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

-Only the purchase of a main home located in the United States qualifies. Vacation homes and rental properties are not eligible.

-A home constructed by the taxpayer only qualifies for the credit if the taxpayer occupies it before Dec. 1, 2009.

-The credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on the taxpayer’s modified adjusted gross income (MAGI). MAGI is adjusted gross income plus various amounts excluded from income—for example, certain foreign income. For a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the range is $75,000 to $95,000. This means the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less.

-The credit must be repaid if, within three years of purchase, the home ceases to be the taxpayer’s main home. For example, a taxpayer who claims the credit based on a qualifying purchase on Sept. 1, 2009, must repay the full credit if he or she sells the home or converts it to business or rental use at any time before Sept. 1, 2012.

Taxpayers cannot take advantage of the credit even if they buy a main home before Dec. 1 if:

-The taxpayer’s income is too large. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.

-The taxpayer buys a home from a close relative. This includes a home purchased from the taxpayer’s spouse, parent, grandparent, child or grandchild.

-The taxpayer owned another main home at any time during the three years prior to the date of purchase. For a married couple filing a joint return, this requirement applies to both spouses. For example, if the taxpayer bought a home on Sept. 1, 2009, the taxpayer cannot take the credit for that home if he or she owned, or had an ownership interest in, another main home at any time from Sept. 2, 2006, through Sept. 1, 2009.

-The taxpayer is a nonresident alien.

For more information, visit www.irs.gov.

Read more: http://rismedia.com/2009-10-07/1-4-million-families-have-taken-advantage-of-first-time-home-buyer-tax-credit-more-claims-expected/#ixzz0TOs0w0Jr

Are you ready to buy an investment property?

2009-09-19T11:27:00.000-07:00

Are you ready to buy an investment property? Here are some things to consider.

1. Location, location, location. We’ve said it before and we’ll say it again. Invest in the best location you can afford. It will determine the kind of tenants you will attract, and how much rent you can charge. A property in a desirable location will also appreciate more over time and be less susceptible to the ups and downs of the real estate market.

2. Don’t go overboard when you’re fixing up an investment property. You don’t necessarily need granite countertops and stainless appliances. After all, you’re going to get some reasonable wear and tear when the tenants move out. Most renters are happy with units that are light, bright and clean.

3. Forget about flipping. Real estate today is a buy-and-hold investment—for at least five to ten years. You’ll face considerably more risk with a shorter time frame. Although your rental will almost certainly appreciate over the next 20 years, the next few years are anyone’s guess.

4. Think long term. For most small investors, long-term ownership makes the most sense. You’ll have plenty of time to ride out any swings in the market, and your rental income will be a nice supplement to your day job. Historically, real estate has been an excellent investment, always appreciating a few points over the rate of inflation.

5. Be prepared to have cash on hand. These days, buying a non-owner occupied property requires at least 25-30% down.

6. Calculate the cost of ownership. This includes all the expenses of owning and managing an investment property, not just mortgage payments. Common expenses include property taxes, insurance, utilities, maintenance, vacancies, and repairs.

7. Look for a property for what it can be, not what it is. Buyers with a little imagination can look past the cracked paint and overgrown landscaping and score a great deal.

8. Hire and pay skilled workers to do your renovations. Start collecting recommendations for electricians, plumbers, painters, and contractors.

9. Always screen your tenants. Run a credit check and call old landlords. Ask if they paid the rent on time, what condition the property was when they left, and if they caused any problems with the neighbors.

10. Read up on your rights as a landlord. Learn about the eviction process and other potential issues so you can do things right, saving time and money.

11. Carefully consider all options. In general, buildings with 3-4 units or duplexes pencil out best, followed by single family homes with 3 bedrooms. Some investors find it works out best to buy a duplex and move into one of the units.

12. Enjoy the advantages of your investment property. When managed correctly, investment properties are a great source of passive income—now, and when you retire. Take advantage of amazing tax benefits to make your investment pay off.

Read more: http://rismedia.com/2009-09-19/top-12-tips-for-buying-an-investment-property/#ixzz0RZunZcNx

Ho-hum. Do I Have to Exercise?

2009-04-25T22:37:00.000-07:00

It's easy to get excited for your annual vacation or a night out with friends. But why not about exercise? It's possible!

Build your enthusiasm for your workout with these tips.

Choose activiteis you enjoy. It's fun. you'll want to do it. Plan a variety of activities so that your workout doesn't get stale.

Pick a partner. Two can be more fun than one, so recruit a friend or family member and work toward your goals together.

Celebrate your achievements. When you reach a goal, reward yourself. Buy a new workout outfit or get a massage.

Train with your mind. Visualize yourself meeting your goals, whether it's crossing a 5K finish line, doing 50 crunches or dribbling a basketball. Let yourself feel the excitement of the activity.

Learn a new skill. Choose something that excites you and ups your adrenaline. Try something.

Housing Recovery

2009-04-10T12:23:00.000-07:00

Daily Real Estate News | April 10, 2009 | Share
Housing Recovery? Not This Year, Experts Say
One in every nine homes in the United States is sitting vacant, according to the U.S. Census Bureau. Economists predict that getting rid of this glut nationwide will take at least three years.

Here’s the math: The number of housing units in the United States increased by 8.65 million from 2002 to 2007. During that period, the number of U.S. households rose by only 6.7 million. Subtract a half-million homes that will be torn down or lost to fire, and that leaves an excess of 1.3 million units, not including vacation homes.

The country adds about 1.5 million households every year, but the recession and a slowdown in immigration is reducing that number. Additionally, Gen Xers, most of who are within the age range when people tend to have the most children, are relatively small in number and won’t create an enormous need for larger living space.

Factor in the number of new homes being built—about 700,000 this year, according to Arthur C. Nelson, director of the University of Utah’s Metropolitan Research Center— and the bottom line is a multi-year recovery.

As Robert Lang, head of the Metropolitan Institute at Virginia Tech, puts it, "Population is still growing, and sooner or later, you'll want to move out of relatives' basements."

Utah’s Nelson analyzed government and private housing data and predicts that hard-hit housing markets in the West and South will start to bounce back later this year and during the first half of 2010. The Northeast and Midwest will have the slowest comeback, possibly extending beyond 2012, he says.

Source: USA Today, Hava El Nasser (09/10/2009)

Considering a Short Sale

2009-04-08T16:08:00.000-07:00

For the homeowners out there who just can’t hang on anymore to their mortgages. There are options out there. Some of my clients, although they have heard of short sales, they don’t know about the process and that some lenders don’t make it easy for you to just walk away.

Banks out there are offering loan modifications. If you think a loan modification would not be appropriate for your individual needs, one solution to avoiding foreclosure could be a short sale. A short sale is an agreement from the lender to allow the you to sell the house for less than what is owed on the mortgage. They will have to consider your current hardship and if the property is worth less in today’s market than what is owed. Hardship include change of income due to job loss, reduction in salary, illness, death of an income earner, or divorce. It’s important to note the changes in your life, unlike a loan modification, a homeowner does not have to be delinquent to be considered for a short sale. However, a hardship should be demonstrated showing that the homeowner would not be able to remain current on the mortgage in the future due to mounting financial obligations.

Be warned that even though it costs lenders more to foreclose on a property than to approve a short sale, there will be cases with non-approvals from the lender. Working with a lender to negotiate a short sale instead of a foreclosure can also be more beneficial to your credit as well, especially if you want to buy another house in the near future when your finances have improved. According to Fannie Mae, one of the largest mortgage insurers in the country, a foreclosure on your credit record will likely mean it will be between 3 and 5 years before you’re able to borrow again. The typical timeframe to buy a new home with a short sale on your record, however, is only two years. A short sale also has a lesser impact to your credit compared to a foreclosure.

The first step of a short sale is to contact your lender and seek their assistance.

The second step is to enlist the help of an experienced real estate agent. An agent who is skilled at handling the negotiation process will not only minimize negotiation time, he or she will also help in limiting the time and costs of marketing the property.

~When selecting an agent, don’t be afraid to ask questions about their experience.

~How many of the properties are currently short sale properties?

~Does the agent have testimonial letters from short sale sellers?

~If an agent says they have sold a number of short sale properties, how many of the transactions were listings sold, not just where they had the buyer.

The third step is to price the house properly, according to the market. While many buyers would love to “steal” your property for the lowest price possible, remember that the lender is already going to incur a loss and they are not interested in losing more than they have to. I suggest pricing the home at the current market value and reducing it every 2 weeks at a consistent amount so that the lender will see that you’ve tried hitting the necessary price points until you get an offer. In order to trigger the lender’s approval process you need to have an offer/purchase and sales contract to submit to the lender.

The last step is to be prepared for challenges in both the short sale process and in the market place. It will take time to get a lender’s approval and to sell the house.

Be aware that, in some cases, not all, a lender will agree to a certain price, but only if the seller agrees to accept a promissory note for some amount of the deficiency - that means money that you will be responsible for paying back.Once you recognize that you are having problems keeping up with your mortgage payment, take action quickly. Decide whether you want to stay in the home or not. I hope this helps you, the consumer, to know about the short sales process.

**Please seek legal counsel whenever you are in doubt. I don’t claim to be an expert or a specialist in short sales, but only to share my knowledge.

Kent Condo For Sale. Price Reduced!

2009-04-03T15:14:00.001-07:00

Best Value, Twin Firs gated community. Ground level unit with own front yard and backyard for the garden-lover. 3 bedrooms/2 baths. Updated kitchen, baths, new carpets, paints, and plumbings. Best Value in town. $167,800. Keller Williams Realty. 206-498-5446

Why It's Still a Good Time to Buy

2009-04-03T14:45:00.000-07:00

The housing market is looking healthier.

Here are six reasons why now is the time to jump into the market.

1. Uncle Sam is willing to help. First-time buyers (defined as anyone who hasn’t owned a home in the last three years) are entitled to a maximum $8,000 tax credit; interest rates are at record lows; and the Federal Reserve is doing its best to make mortgage loans available.

2. People have to live somewhere. About 800,000 new households are formed each year in this country, ensuring that the housing market will tighten, even if the economy doesn’t soar.

3. Borrowers leverage their investment. If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 down on a home and its values increases 10 percent, you’ve made $10,000.

4. When prices come back up, you’ll have instant equity. In parts of the country where foreclosures have driven down prices, better times will mean the price of the home you buy will rise rapidly.

5. Mortgage costs stay the same. If you get a fixed-rate mortgage, the monthly payment stays the same – while everything else, including rent, goes upward.

6. You own it. There is something comforting in the notion that your home is your own. You can paint it any color you want, let the dog run in the back yard and hang a swing for the kids in the front.

Source: The Wall Street Journal, June Fletcher (03/27/2009)

Kent Condo For Sale, Price Reduced!

2009-04-03T13:42:00.001-07:00

Kent Home For Sale with Lake View

2009-04-03T13:29:00.001-07:00

Lake Meridian, Kent. 4 bedrooms, 3 baths, .48 acres.Only $349,950

What are Some Ways That You Can Prevent Foreclosure?

2009-04-03T10:49:00.000-07:00

1. You can cure the default by making up any delinquent payments plus costs related to the foreclosure and any lender's expenses related to starting the foreclosure process. (RCW 61.24.090 The borrower can do this up to 11 days before the trustee's sale (auction).

After the 11th day the lender is under no obligation to accept a cure of the defaults.

Upon cure of the default, the trutstee is required to execute, acknowledge and record a notice of discontinuance of the trustee's sale. RCW61.24(090(6)

2. Contact the lender and find out about alternative payment options.

3. Evaluate refinancing options.

4. File for bankruptcy. If the borrower is unable to arrange a workout agreement with his lender or other solution, he may consider filing for bankruptcy.

In a Chapter 13 bankruptcy, he can present a plan for catching up on his house payments. He may be able to prevent a foreclosure if the bankruptcy court accepts his payment plan.

A Chapter 7 bankruptcy might delay a foreclosure but will not prevent one indefinetely. Bankcruptcy will immediately put a temporary freeze on the foreclosure sale

5. Sell the home.

Search for Foreclosure Homes

Understanding Mortgages

2009-03-14T08:04:00.000-07:00

There are 4 basic mortgage lenders:

1. Large bank: Traditional lenders are mainly large banks. There have the strictest requirements and qualifying formulas but often the lowest interest rates.

2. Credit unions and hometown banks: These are more progressive than traditional banks. In addition to past financial history, they take into account your current financial sitruation, present ability to pay and your financial stability.

3. Mortgage brokers. Mortgage brokers are financial matchmakers between lending institutions and qualified matchmakers between lending institutions and qualified borrowers, and they closely resemble both tradional and more progressive lenders. They represent banks, organiztions and private individuals with money to lend. About half of all mortgages are nandled by mortgage brokers. However, with their expertise and convenience comes a fee for finding you a loan. Legitimate loan brokers usually collect their fee after they obtain your loan. An advance-fee loan broker, in contrast, collects before the loan is found. This is illegal is some states.

4. Government agencies. The Federal Housing Authority (FHA) and the Veteran Administration (VA) are the two chief lenders. The FHA and the VA are actually insurers, not lenders. They guarantee your loan (or part of the loan) in case you default. If you qualify, you may obtain an FHA guaranteed loan for as little as three and a half percent down payment. Althoughyou cna obtain a VA mortgage with no down payment, VA mortgages are only available to qualifying veterans.

State financing agencies provide low-interest home financing through mortgage revenu bonds. These are Housing and Urban Development (HUD) supervised programs that require applicants to be non-homeowners during the previous three years.

Staging the Outside of Your House

2009-03-12T15:32:00.000-07:00

As an Accredited Staging Professional, I was taught that the outside of your house is just as important. Everyone knows that Great curb appeal, and a memorable first impression is essential. In a hot market people will overlook the sight of your yard and the clutter on your house. Not these days, where there is much more to choose from So stage the outside of your house.

Start by looking at the outside of your home through a stranger's eyes. Go and stand outside in the street if you have to. Can you see your house or is it blocked by a big bush or a tree? If so, time to trim or wack it off. All windows should be clear of vegetations to allow maximum light into the house. Large, large trees overpower the house.

What about the grass? We are aiming for green and no bare spots. Remove all that is dead, even those that will grow back. Death to all weeds! Be ruthless. Cut back those jungle plants. If you can't be objective, hire a professional landscaper for his opinion. Pruned bushes should be round, because it is more modern looking and gives it a softer look. Pine trees or larger trees should be trimmed, so that the bottom five feet of the trunk is visible. It makes the yard appear more spacious.

New wood chips spruce up the garden and make it look professionally landscaped. Plant flowers in well-placed groups where the eyes are likely to rest. Remember to plant flowers with instant color. Unless it is in the fall, try to stay away from the colors yellow and orange.

We don't want prospective buyers to think you neglect your yard. Just as with the inside of the house, we need to make it look as spacious and manicured as possible.

The Short Sale Process

2009-03-06T13:26:00.000-08:00

In order to best contextualize or prioritize one's various opportunities or limitations with all other options, it is advisable that an attorney or other suitable counsel be engaged. Such counsel is vital in order to properly weigh all legal, financial, tax and lifestyle implications surrounding each option. Since this post principally focuses upon the subject of short sales as just one alternative, it is important to note that short sales usually benefit home sellers because they not only stop mortgage foreclosure, but typically prevent the lender from suing for deficiency. Deficiency refers to the difference between the outstanding loan amount and what the net proceeds are from the sale of the home, or in some cases, simply what the proceeds are that the lender receives from the sale of the home. During their short sale negotiating process, it is vital that homeowners have their attorney ensure that the lender agrees to forego suing for any monies that are written off due to the short sale.

Q. Within the short sale packet presented to the lender, there is a hardship letter that homeowners must provide. How important is this component in causing the lender to approve the short sale?

A. It is absolutely critical that the homeowner be able to document that they do not have the income or necessary assets to continue making payments on their home. Homeowners must be meticulously honest in documenting and presenting their "hardship case" so they do not implicate themselves in mortgage fraud; mortgage fraud results from inconsistencies between what the homeowner is now representing compared to the information provided at the time of the original mortgage application. This is why it is vital to work with a qualified attorney in the area of pre-foreclosure/foreclosure law during this process.

Q. What types of hardships would a lender generally consider conducive to a short sale agreement?

A. In the context of consideration for short sale approval, "hardship" is not defined by law. As such, there is no one definitive definition upon which you can rely. One would, however, anticipate that a lender would expect a hardship to result from the loss of job or salary reduction, divorce or separation, debilitating illness, medical bills, business failure, excessive debt, mortgage payment increase or the recent loss of a close family member, such as a child or spouse. Consult with an individual lender to determine the duration of the hardship, as lenders are unique in this regard.

Q. What are the tax consequences of a short sale?

A. The tax consequences for individual homeowners regarding short sales are different depending upon your financial situation. For that reason, it is critical to consult with a Certified Public Accountant.

Q. What is the Mortgage Forgiveness Debt Relief Act of 2007?

A. Prior to the implementation of this act, the law required taxpayers to include discharges of mortgage indebtedness as income for the calculation of income tax. This Act provides an exclusion for discharges of some types of mortgage indebtedness. Check with your tax advisor early on as to whether your transaction will qualify for income tax exclusion.

Q: What effect will each alternative have on my immediate, mid-range, and long-term credit?

A: There is significant confusion regarding the precise and relative proportionality surrounding how various pre-foreclosure/foreclosure and bankruptcy options affect one's credit score. It is therefore advisable that all property owners first check with their lender(s)', credit bureaus, future lenders, government agencies, and an attorney in order to best gauge how each prospective resolution may potentially affect their future credit rating.
Credit rating impact should also be evaluated contextually by considering the role of your credit rating regarding future financial and purchasing plans.

Q. How do I know if my property and I may be considered for a short sale?

A. Eligibility for a short sale resolution is determined by your lender's short sale policy. Your lender will also direct you as to what you must do to comply with their process and procedure. You can either contact your lender directly or authorize an attorney, real estate agent or other representative to contact them on your behalf.

Q. If a lender agrees to the short sale option on my property, can the bank still proceed with a foreclosure?

A. The foreclosure could be considered as a separate and distinct action taking place, even though the lender has agreed to the short sale proposal. This can easily occur when different departments of the same lending institution are seeking different outcomes, or simply because the bank, after agreeing to a proposed short sale outcome, but before signing a contract, believes that foreclosure would represent a more favorable outcome for the lender.

The submission of a short sale package/kit to the lender does not automatically stop a foreclosure action. Once a lender initiates a foreclosure action, the homeowner should consider that the lender will most likely retain this position until the lender has a signed contract in hand, has agreed to the short sale proposal, and has closed on the sale of the property.
At the time the lender agrees to the short sale proposal, the lender may or may not choose to terminate or postpone the foreclosure. A foreclosure may also proceed in the case of subordinate lien holders not having agreed to waive their lien on the property.
Because of the multiple stakeholders involved, and the complex nature of the regulatory environment, qualified, licensed counsel can be critical in taking steps to prevent a lender from not following through with the short sale process, especially in the case of a lender who has the intention of opting for a foreclosure-based resolution.

Q. How would I initiate the short sale process?

A. To initiate the short sale process, contact your lender(s). Typically, the department to contact is your lender's Loss Mitigation Department.
Either you or your authorized representative needs to ask the lender for a short sale package or kit. Most lenders will make their particular processing forms and procedures pertaining to their required short sale documentation available to homeowners.
Unlike what many people believe, some lenders will also allow you to apply and get approval for a short sale even when the homeowner has never been late or missed a mortgage payment. Please note that lenders will typically only consider a short sale after the borrower has: missed two mortgage payments; has no means to continue paying the mortgage; provided all the necessary financial and hardship documentation to the lender; agrees that they will not derive any proceeds from the sale.

Q. Should I contact a real estate agent?

A. Absolutely. But before selecting a real estate agent to represent you, determine whether or not they are knowledgeable about preforeclosure, foreclosure and bankruptcy options. Your agent should not be giving you advice regarding your personal financial situation.
Any real estate agent who asserts that he or she is prepared to assist you as a homeowner in a potential short sale outcome must also be willing to follow the specific administrative procedures of the particular lender involved. In addition, the real estate agent should also acknowledge that they essentially confine their guidance to determining the property's value and how to best market the property, versus advising the homeowner on the best preforeclosure/foreclosure resolution.

Q. Should I contact an attorney?

A. Absolutely. We recommend that you contact an attorney with the understanding that the attorney needs to not only be well versed in real estate law and foreclosure law in your particular state or province, but also needs to be a proven negotiator on behalf of their clients. Not all short sales or other pre-foreclosure or foreclosure options are structured alike. Therefore, the role of a highly competent attorney in such matters-one who can skillfully negotiate on your behalf-can make a world of difference.

Q. How would multiple liens on my property impact short sale approval?

A. Each lender must recognize how it is in their best interest to approve a short sale resolution versus a more costly and protracted alternative. Here again, an attorney/lawyer or real estate agent who possesses experiential knowledge in this particular multiple-lien scenario can be instrumental in developing a multi-party resolution strategy satisfactory to all.

Q. Am I responsible to continue to make mortgage payments if I have intentions of applying for a short sale on my property?

A. Unless you have received information to the contrary from the lender in writing, you are responsible to continue to make mortgage payments.

Q. As a homeowner, what incentive do I have to assist in the sale of my property if I am not going to receive any proceeds from the sale?

A. The authors of this publication believe that homeowners first and foremost have an ethical responsibility to expend the necessary effort to support as high a sales price as possible-even though they will not experience a financial gain-when expecting the lender(s) to forgive any and all of the homeowner's outstanding mortgage debt.

We also believe that the higher the realized sales price, the more likely the lender will be in granting a short sale outcome for the homeowner and possibly either fully or partially waive a deficiency judgment. Moreover, we also advise homeowners to be wary of any real estate agent who, for the sake of facilitating a guaranteed sale in order to collect a commission before a property is foreclosed (ruling out any possibility of a commission), demonstrates a less-than-professional marketing commitment. Such real estate agents will often justifies this lackluster attitude by saying to a homeowner, "No matter what the home sells for, it really doesn't affect your pocketbook-only the lenders." This disregard for marketing on behalf of some real estate agents seeking to facilitate a short sale at all costs (but not to them) is one that lenders readily recognize.

We find that this unprofessional approach to real estate marketing, notwithstanding the special circumstances surrounding a proposed short sale outcome, is to the detriment of well-intentioned homeowners who are hopeful of gaining lender cooperation. Lender cooperation is, without question, influenced by how honorable they believe both the homeowner and the real estate agent are, despite the difficult circumstances facing the homeowner and the challenging marketplace facing the agent.

Q. Does a "Listing Agent" represent me (as the homeowner) or the bank if I have intentions of gaining short sale approval from the lender?

A. The Listing Agent does not represent the bank.

Q. Is there a real estate commission paid in a short sale and, if so, who pays it?

A. Like all commissions, this has to be negotiated. Typically, the commission is paid from the proceeds of the sale. In the case of short sales, the home seller does not typically pay the commission. This is another incentive for a home seller to pursue a short sale remedy and use a qualified real estate agent. Moreover, many lawyers, although representing home sellers, are able to have the lender pay their fees. This makes it even more imperative that every homeowner considering any pre-foreclosure/foreclosure possibility-but especially where a short sale is the desired outcome-contact an attorney immediately. Homeowners should also encourage their attorney and their real state agent to meet as a group for the purpose of creating an effective overall short sale and marketing strategy.

Q. On average, how long does a short sale process take?

A. The time period will vary based upon circumstances, although the approval process and time to closing, in many/most cases, is longer than that associated with the sale of a property in a non "short sale" situation.

Q. Which process has a more adverse affect on my credit rating: short sale: foreclosure; bankruptcy; or deed-in-lieu of foreclosure?

A. It is critical that homeowners, either personally or through a representative, research their individual situation with the various agencies that determine credit ratings. Be careful of categorical representations and sweeping generalizations regarding the credit rating consequences of short sales, foreclosures or other homeowner options. There exists wide-spread confusion, oversimplification, and inadequate guidance presently being offered, especially by individuals purporting to be experts.

Q. What is a deficiency judgment?

A. A deficiency judgment is a court order authorizing a lender to collect part of an outstanding debt from foreclosure and sale of the borrower's mortgaged property or repossession of property securing a debt after a finding that the property is worth less than the book value of the outstanding debt.

Q. Should I take the word of my real estate agent if he or she tells me that I probably will not have a deficiency judgment, or should I have an attorney try to have this guaranteed as a condition of the short sale agreement?

A. Consultation with legal counsel on this matter is highly recommended.

Q. Am I more likely to be responsible for the deficiency judgment under a short sale or a foreclosure?

A. If we respond to this question with the belief and understanding that the waiver of a deficiency judgment would be a binding element in the short sale proposal and subsequent agreement, then the answer, of course, is that the homeowner in default of their mortgage would more likely be responsible for a deficiency judgment under a foreclosure. We recommend, however, that you consult with qualified legal counsel in this regard and investigate specifically whether or not steps can be taken to ensure that a waiver of the deficiency judgment can or cannot be incorporated into a final settlement. You should also determine whether or not the lender is likely to call upon a collection agency after the closing to pursue you for any outstanding sums due the lender. If you sense that an attorney should be representing your interests, we believe you instincts are correct.

Q. When is a bankruptcy preferable to a short sale or to a foreclosure?

A. This multiple choice question can only be answered after exhausting all possible outcomes as they relate to individual circumstances along with the meticulous advice of legal counsel.

Q. How important is the short sale package or kit when applying for a short sale to a lender?

A. Indispensible!

Q. On my own, can I prepare a short sale package/kit, and if so, how would I go about doing it? A. The short answer is yes, you can prepare your own short sale proposal and submit it to your lender. Some lenders may even assist you in the process. Just like preparing your own taxes, however, you might need help in this critical process. Real estate agents experienced in short sales understand that the bank will want to find out what efforts have been made or could be made to market the property for the highest price and best use of the property. In addition, most lenders will require Broker Price Opinions and or Competitive/Comparative Market Analysis to determine benchmark pricing.

Q. Will lenders tell me what I need to have prepared in a short sale, or do they only make this information available to real estate agents and attorneys?

A. While it is advisable to have a real estate agent assume this very time-consuming and administratively complex responsibility, homeowners themselves are recognized by lenders as being capable of dealing with short sale matters themselves. Lenders, however, are very vigilant regarding the information they require pertaining to marketplace pricing and related real estate information, and rely heavily upon the expertise of high-caliber real estate professionals.

Q. In selecting a real estate agent, when the prospects of a short sale are desirable, is it more important to choose a real estate agent who is very competent in overall real estate sales and marketing, and not as knowledgeable in the short sale process, or is it better to select a real estate agent knowledgeable in the short sale process, but very inexperienced or ineffective in real estate sales and marketing?

A. Obviously, home sellers should want a real estate agent who possesses significant expertise in short sales and in real estate sales/marketing. The greatest emphasis, however, should be placed upon selecting a real estate agent who is highly competent in the areas of marketing, merchandising (staging), negotiating, networking and information technology. The lender-required processes and information, although critical, represent more of a service. The aforementioned skills are indispensible in putting forth the best and most credible effort regarding the sale of the property.

Lenders can discern the difference between real estate agents who only represent pre-foreclosure strategic advice and assistance-ee.g., the performing of the required administrative tasks-from leading real estate agents who can perform the required administrative tasks and who possess short sale acumen while representing world class real estate marketing-related skills.

Lenders . . . Recoup . . . To recover all or part of a loss

Q. When a real estate agent deems it necessary to alert cooperating real estate agents that their listed property is a potential short sale, so that the buyer does not unknowingly enter into a conditional negotiating process, how does this announcement prior to a lender's consent impact the marketing, property value, and ultimately the negotiating position of the lender?

A. This practice of announcing a potential short sale "Sale," before a lender agrees to the short sale conditions is considered by many real estate practitioners who represent home sellers as a method of undermining the integrity and market value of that particular property.
Clearly, one can argue that by not providing this potential status to prospective buyer agents and thus, their clients, deprives them of a form of disclosure; this is why great debate exists surrounding the handling of a short sale situation.

Q. Should a lender do business with a so-called Short Sales Specialist who strategically advertises "Stop Foreclosures" to homeowners, when their intended approach is either most likely or solely a short sale outcome? Does the practice of labeling properties as possible short sales before they officially enjoy short sale status undermine the value of all homes within that marketplace?

A. We leave it to lenders to determine how they respond to the growing practice of homes for sale being labeled as members of either the troubled or the distressed property category, even though the property itself, and thus both the homeowner's and the bank's potential proceeds, is not troubled or distressed, but rather the homeowner and the lender. By categorizing properties as being distressed or troubled, it essentially undermines the underlying loan that supports the market value of the property.

Q. How can a lender best identify evidence within a short sale package/kit that the listing agent has placed much greater emphasis on supporting a lower short sale agreed-upon price than they have upon marketing for a greater selling price?

A. Lenders should respectfully challenge any real estate agent who supports any proposed sales price or offer as to the appraisal method they employ along with the specific and customized off- and online marketing methods they have designed for the subject property. In other words, evidence-based marketing versus merely evidence-based pricing.

Q. How can a lender best determine how dedicated a listing agent truly is to not just "Selling" a home but selling a home for more, in a climate where almost all low offers can be justified or rationalized as representing the best or the only possible offer that could be brought to the lender?

A. Simply ask the real estate agent what methods they employ to market homes for more. Otherwise, attention might be diverted to how they sell more homes versus how they sell homes for more. This is a powerful distinction that lenders must demand real estate agents respond to in order to best determine if the offer, which is part of the short sale kit, represents either optimum marketing or instead a convenient rationale for a significantly lower price.

Q. What can lenders do to prevent the real estate industry from becoming a "foreclosure-prevention" industry instead of an industry of world-class marketers dedicated to bringing back property values for both presently challenged and future home sellers?

A. Again, by communicating to the entire local real estate marketplace that any short sale packet being presented for short sale consideration must include an evidence-based marketing overview of the property, and not just a dazzling display of pricing data supporting a self-fulfilling prophecy of lower prices.

Q. When should a lender who holds a subordinate lien on the property being considered for short sale agree to or choose to resist a short sale resolution?

A. It would be presumptuous to suggest that lenders, given what is financially at stake for them, have not carefully considered the bottom-line implications of each and any lien position they hold as it relates to short-sale resolution and all other options available to the lender(s).

Q. When properties are promoted as being distressed or as potential "short sales," does such labeling stigmatize not only the subject property but all other properties, and does this practice potentially damage the lender's greater loan portfolio as well as the asset value of all homeowner properties? If so, should lenders communicate their concern to the real estate industry regarding how properties upon which they hold mortgages are being marketed given our economic climate?

A. We believe lenders should make it known to the real estate industry that certain marketing practices, which seem intended to exploit the current marketplace, are not being overlooked and will influence which real estate agents are selected to represent bank-owned/REO properties.

Q. Since a home seller does not stand to receive any money from the short sale, how can they best be motivated to enthusiastically support a marketing effort designed to realize an optimum sales price of their property?

A. As we responded to this question in the section for homeowners, the authors of this publication believe that homeowners first and foremost have an ethical responsibility when expecting the lender(s) to forgive any and all of the homeowner's outstanding mortgage debt to, in return, expend the necessary effort to support as high a sales price as possible (even though there is not a financial gain to the homeowner). We also believe that the higher the realized sales price, the more likely the lender will be in granting a short sale outcome for the homeowner and possibly either fully or partially waiving a deficiency judgment. Moreover, we also advise homeowners to be wary of any real estate agent who-for the sake of facilitating a guaranteed sale in the hopes of generating a commission before a property is foreclosed (where they might not gain a commission)-demonstrates a less-than-professionalor lackluster marketing posture or commitment. Such agents justify this attitude by saying to a homeowner, "No matter what the home sells for, it really doesn't affect your pocketbook, only the lender's."

This less-than-professional marketing commitment on behalf of some real estate agents seeking to facilitate a short sale at all costs (but not to them) is one that lenders readily recognize. We find that this unprofessional approach to real estate marketing, notwithstanding the special circumstances surrounding a proposed short sale outcome, is to the detriment of well-intentioned homeowners who are hopeful of gaining lender cooperation. Lender cooperation, without question, is influenced by how honorable they believe both homeowners and real estate agents are in spite of the difficult circumstances facing the homeowner and the challenging marketplace facing the agent.

Q. Should a lender be concerned when a real estate agent is representing both sides of the transaction against the backdrop of a seller desperately seeking to avoid foreclosure and a bank's predisposition towards short sales, versus the protracted, costly and legally cumbersome foreclosure/REO alternative?

A. Yes, lenders, more than ever, need to be circumspect regarding the individual circumstances surrounding how their mortgaged property is being recommended to "closure."

Buyers . . . Reap . . . Create Reward from the Benefit of A Short Sale

Before buying a property marketed in a "short sale" context, consider the following:

Q. How much less should I offer on a property once I learn that the real estate agent has "labeled it to fellow agents" as a possible short sale, even though the bank hasn't yet classified the property in such a fashion?

A. For the same reason that it most likely is not in the best interest of a lender or the ultimate sales price of a property when it is marketed as being "under duress," it oftentimes is to the significant benefit of the buyer when a property is being labeled as a potential short sale.
Any offer on any property in any marketplace should be made only after the buyer satisfies the need to thoroughly research what properties are selling for, how long properties are taking to sell, which way prices are trending, and to the degree possible, what pressures to sell might be facing the owner(s) of the property in question.

Along with this approach to a proper pricing/offer strategy, it is recommended that the buyer be as aggressive as possible and anticipate an inevitable negotiating process. To that end, if a property is labeled as a potential short sale that might enjoy a stronger negotiating position, that will be reflected in your offer. At the same time, it is unwise to risk a great sales price (especially when one is seeking the lifestyle benefits of a particular home for sale) by pushing too hard and too unrealistically.

It is recommended that when packaging the offer for a property that is being advertised as representing challenging circumstances, that the buyer make his/her case by understanding the position of the lender regarding a short sale outcome versus foreclosure or bankruptcy. The key is to not appear exploitive, but rather to appear as one who is willing to make a prudent decision, even while most others remain on the sidelines.

Q. Do some real estate agents make it a practice of building in preprogrammed or time-interval-based price reductions, and if so, can I assume that the longer I wait, the greater the discount I will enjoy?

A. Some agents do build in strategic price reductions to come at specific intervals and they see it as their earnest attempt to help their homeowner-client win the race against a foreclosure.
Other agents, however, view this systematic concession as a lazy method that doesn't require aggressive marketing (which is self serving to the agent who does not want to risk losing a sale before a foreclosure), even if it means contributing to the downward spiral of home values. If possible, buyers should try to determine if a particular real estate agent makes it a practice to systematically include interval-based price reductions when considering how to best "time" their offer, so it coincides with the agent's willingness to concede to a lower price as a foregone conclusion.

Q. As the contract is subject to third-party approval, who is the seller of the property and with whom am I doing business?

A. You and the agent representing you are doing business first with the home seller and marketing agent regarding your offer, but must realize that ultimately the business decision will be made by the lender(s), although the home seller does not have to agree with the lender's terms for the short sale approval.

Q. How can I, as a buyer, best determine whether or not the seller of a so-called potential short sale property significantly overpaid when they purchased the property?

A. Each property-although conveniently considered a comparable to other properties-is truly distinctive, and therefore, all pricing is subjective. Consequently, in order to best understand the relative value of a property and whether or not somebody overpaid or underpaid requires marketplace sophistication and savvy. The necessary marketplace information that is required to make the determination of what a property should have been bought for requires more than Internet-based research and statistics, but a thorough understanding and appreciation of the physical, exterior and interior condition and esthetics of a large number of properties that fall within the same range as the property being considered for purchase. We believe that an experienced real estate agent (like a Top 5 in Real Estate Network® member) can help buyers save tens, if not, hundreds of thousands of dollars by assisting them in determining how to best buy property in a financially challenged marketplace.

Q. Since short sale properties are expected to be purchased in as-is condition, given the lack of financial interest of a home seller regarding the outcome of their property, and considering the potential adverse physical effect that these circumstances have on the value of the property, how late in the negotiating process should my appraisal be in determining market value?

A. Any buyer for any property should be willing to pay for all relevant and necessary inspections and appraisals of the property, and have a pre-closing walk-through contingency as part of the sales agreement.

You should consider making any offer subject to the existing lender's acceptance to include not only a general home inspection contingency, but also, where applicable, satisfactory inspection reports for lead-based paint, natural hazard disclosure, pest/insect report, underground storage tank, septic/sewer inspection, well water and seller (conditions) disclosures. All of these contingencies should be in addition to the typical mortgage, appraisal and title contingencies.

Q. How should a buyer negotiate with a lender on a short sale property when the lender typically is not subject to property condition disclosures and the seller, given their financial situation, may not be a viable party regarding future recourse?

A. Buyers, especially with certain types of homes (e.g., age and condition), should most definitely include disclosure concerns as they prepare and present their offer to the lender and as an overall part of their overall negotiating strategy.

Q. How can I find out about subordinate liens or other claims to the property, and how will this impact my negotiations and the time necessary to close?

A. Ask your agent to have a title search conducted; it will include all the necessary information regarding lien holders. This should guide you regarding the estimated time it will take before a closing might be possible. Further research into the short sale practices of each lien holder, and the institutions they represent, might also reveal their relative willingness to accept lower offers. It is also recommended that the buyer title the property with title insurance, although without a strategy to remove all liens, no closing will be possible.

Q. Please explain what options, other than a short sale, the primary lien holder has with regard to the disposition of this property.

A. The other options include deed in lieu, loan modification, forbearance and foreclosure.

Q. When is a short sale the bank's better option, with regard to the disposition of the loan on this property?

A. When a lender deems that all other options are either too costly or carry with them a high level of financial uncertainty, the short sale represents closure and finality.
Lenders also often favor short sale resolutions because they are not in the business of, nor do they have expertise regarding, managing or owning properties. Moreover, short sales are typically less expensive for the lender than the foreclosure process.

Q. Where do you see my opportunity to reap a reward in the purchase of a property that is hopeful of a short sale resolution?

A. When your offer represents a quicker, cleaner and clearer financial outcome to the lender than the other options available to them.

Q. Under what circumstances would the bank reject or not consider my offer to purchase a short sale property?

A. The offer will not be accepted when it is considered to be either too low or not in the best interest of the lender. Mortgage preapproval, if possible by the lender, or a full-cash offer can eliminate the lender's concerns regarding last-minute credit issues. A high loan-to-value ratio will also offer the seller/lender a higher level of comfort, especially if their institution will be the mortgagee for the transaction.

Q. Strategically speaking, what can I do to best ensure the bank's acceptance of my offer to purchase the property?

A. From the lender's perspective, the greatest qualities of the short sale resolution are closure and finality. By accepting your offer, even if the price is lower than market value, due to the situation, the lender can close the file and move on. To best ensure a smooth transaction, do not muddy the waters with contingencies and time frames inconsistent with conventional closing times. The lender will likely need to take time to deliberate prior to accepting an offer. Once the offer is accepted, anticipate that the lender will want to close within 30 days. Consider including language in your proposal and contract that provides the lender with the time they need to review the offer and reach a decision. Then include an iron clad means of closing (i.e., paying for the property on your part). When you remove obstacles in any real estate transaction, you pave the way to a smoother closing.

Q. With regard to price, what would you recommend to best ensure that the bank accepts my offer, and at the lowest possible price?

A. By the time you come to realize that a given offer on a given property makes sense for you, either as a personal or as a business investment, you should have completed a significant amount of research. Your research, or the research of your highly skilled and specialized real estate agent, should be able to help you arrive at a point where you have a rationally supportable negotiating range in mind, based upon market conditions, market prices, the investment you'll be making and the return you are anticipating. We recommend that you consult with your real estate agent on how to best present your pricing rationale within the lender's context. If you are going to make an offer because it is a good investment in today's market and your offer is too low, the lender will likely reject the offer so they can gauge your perspective as a prospect.
Share your reasoning with the lender so they can see your perspective as a buyer or as an investor. Creditworthiness notwithstanding, when the lender/seller understands your rationale they will also understand why they should not likely be able to anticipate a better competitive offer. When their other, more ambiguous options are not financially viable (e.g., foreclosure, bankruptcy, deed-in-lieu), and when your offer makes sense, you will have the best opportunity to have your offer accepted at the lowest possible price.

Q. What is the bank's decision-making process in the consideration of my offer to purchase, and how long should I expect this to take?

A. The decision-making process varies, based on the institution. Here again, a highly skilled real estate agent experienced in this area can offer specific details regarding the details of the process in your situation.

The lender/bank needs a rationale to justify any write-downs/write-offs. This can often be subject to internal lender protocols, and this can add time to the approval process. The lender will need to rely upon appraisals and broker price opinions that they will most likely order themselves. Both can be developed quickly. Some lenders will have a monthly meeting in which they review proposals. If a short sale package/kit is incomplete, expect it to be rejected or returned to you for clarification or review. This can delay your process up to one month or more.
Lenders will generally need to negotiate to obtain releases from secondary lien holders. Anticipate that the time required for this process and subsequent negotiations have the potential to become protracted.

Anticipate that a "simple" title search should be expected to take approximately three to five days.

Remember, each lender has established their own rules for their short sale process, including what percentage of a debt-to-balance (ratio) payoff they will accept. The lender should also be expected to have internal guidelines for how much commission they will pay for real estate brokerage services and for attorney fees.

Q. What is an REO property?

A. The letters "REO," stand for real estate owned. These are properties owned by a lender, in most cases a bank, and become classified as REO typically after an unsuccessful foreclosure auction when the title to the property reverts back to the lender. Some banks, given the number of properties they now own, have established their own REO departments. In many cases, leading real estate agents have developed relationships to create opportunities for buyers and investors. Buyers/investors can also contact the REO departments of lending institutions to learn about available properties or visit various bank-created websites, which list their bank-owned or REO properties for sale.

Q. In general, would a buyer benefit more from buying a bank-owned (or REO property) or a short sale property?

A. There is no general rule that can, with any degree of certainty, state which category of real estate buying results in a more favorable outcome for a buyer. It is important, however, that buyers understand that lenders are extremely motivated to sell when they own the property (REO). As a buyer, it is also easier to identify the true condition of an REO as the property should be vacant.

Banks do not want to own properties and have a great incentive to not only sell their properties, but will actually offer credits to buyers, in some cases, if the buyer agrees to fix defects or perform renovations on the property.

Short sales offer many advantages as well as evidenced throughout this information; but again, it is very difficult for anyone to categorically assert that either foreclosures or short sales represent the best opportunity for a buyer.

Q. What is the estimated time between the acceptance of my offer and the closing?

A. There are no norms with which we can guide you. Each jurisdiction has required time frames for notification of the intent to foreclose and for the various steps in the process. Once again, we recommend that you work with qualified, licensed professionals, including attorneys with local experience in your market, for specific guidance in this are. As a generality, however, it is not uncommon for a lender to consider a proposal for approximately 60 to 120 days and anticipate closing 30 days after they accept your offer.

Q. Is it worth the wait?

A. In many cases, yes, it is worth the wait, but this depends upon each person(s) circumstances.

Q. What is the benefit of buying a short sale property as opposed to buying a conventional property?

A. For the buyer, it is a better or lower price, resulting from a stronger negotiating position; for the seller/lender, it is the opposite.

Q. How do I learn about the relevant local real estate market during the last year or so, and how can I get predictive data regarding estimates of future prices?

A. Contact a real estate agent and ask them to provide all past and present pricing data, absorption rate data (where available) and all other contextually relevant information they can make available to you.

Q. Can I benefit from buying a property that was marketed as a distressed or short sale property, and then turn right around and sell (flip) it for more by removing this stigmatized label?

A. When real estate prices were escalating rapidly, properties were being purchased and refinanced as the market continued to rise. This practice created equity leveraged by credit debt. Fearing a reversal of this trend and the resulting under-collateralized loans that would inevitably follow, the Federal Housing Administration (FHA) implemented "anti-flipping" regulations as a condition of the loan, which, under specific circumstances, require the owner to hold the property for a fixed amount of time prior to selling it once again. As of right now, these regulations have been temporarily waived. Check with qualified counsel for details on how this may or may not affect your investment decisions.

Benefiting from the purchase and subsequent sale of a distressed or short sale property would depend more upon what your purchase price was than on how the property was labeled. However, because the property was "labeled" and viewed by the marketplace as being a "distressed" property, it may have very well led to a much lower price when you bought it. Fully consider the tax implications as well.

Ask your CPA about the $250,000 home sale exclusion. In the case of an owner-occupied residence, under the current IRS regulations, you would have to live in the property for two out of the first five years of ownership to qualify for the $250,000 home sale exclusion. We highly recommend that you consult with qualified licensed professionals prior to making such purchasing or investment decisions.

Limit of Liability/Disclaimer of Warranty: The information and opinions expressed herein are presented with the understanding that they do not represent any or all of the opinions of the Top 5 in Real Estate member making this publication available to you. The information contained herein is not intended to be a comprehensive discussion of the strategies or concepts mentioned. Nor is any information or data discussed intended as tax, investment or legal advice. In pursuing any concept or idea presented, you should rely on your own due diligence and on your own attorneys, accountants and other professionals to determine if such ideas or concepts are appropriate for you. Although information herein has been obtained from sources believed to be reliable, RISMedia, Inc., the Top 5 in Real Estate Network® and its local member do not guarantee its accuracy or completeness and accept no liability for any direct or consequential losses arising from its use. RISMedia, Inc., the Top 5 in Real Estate Network® and its local member assumes no responsibility for any errors, omission or damages arising from use of information contained herein.

Ambitious Foreclosure Plan Revealed

2009-03-06T07:53:00.000-08:00

How Will It Help?
By Kevin G. Hall Print Article

RISMEDIA, March 6, 2009-(MCT/RISMedia)-The Obama administration on Wednesday detailed its ambitious $275 billion plan to halt soaring foreclosures nationwide, outlining the financial incentives it’s offering investors, lenders and their bill collectors to lure them into modifying distressed mortgages to keep Americans in their homes. The slump in home prices is the root cause of the global financial meltdown, so the success or failure of the administration’s housing plan is vital to ending the deepening economic recession.

Shortly before financial markets opened, the Treasury Department provided its long-awaited update to the Making Home Affordable program, which the administration thinks can help up to 9 million homeowners.

“It’s a major break with the past because it really takes up a multifaceted approach. It used several different carrots and a stick to come at a comprehensive plan to reduce the number of foreclosures,” said Kathleen Day, a spokeswoman for the advocacy group Center for Responsible Lending in Durham, N.C. “That’s the only way you’re going to stabilize the financial system.”

The plan’s details came out a day before the House of Representatives is expected to pass compromise legislation giving bankruptcy judges power that they now lack to modify the terms of certain mortgages. Bankruptcy changes are the stick to go along with the carrots-new financial incentives for lenders to modify mortgages instead of moving to foreclosure.
The Obama housing plan attacks two problems that are creating a vicious cycle in the nation’s housing market.

First, it offers $200 billion to provide refinancing for some homeowners who owe more than their homes are now worth-shorthanded as being “underwater” on their mortgages. To qualify, these homeowners-5 million of them by administration estimates-must have their mortgages in the hands of Fannie Mae or Freddie Mac, the mortgage finance giants that the government seized last September.

“We have been advocating for one unified approach to help modify or refinance delinquent and underwater loans and thus we think this program will undoubtedly help servicers keep more at-risk borrowers in their homes, which is a crucial step to helping stabilize the mortgage and housing markets,” stated John A. Courson, president and CEO of the Mortgage Banker Association (MBA).

Many of these homeowners would like to take advantage of today’s historically low interest rates and refinance but can’t, since the law prohibits refinancing if the current mortgages reflects less than 80% of the homes’ values. These homeowners now can seek to refinance if their mortgages are up to 5% higher than the present-day values of their homes. That helps some, but it won’t reach lots of homeowners in California, Florida and elsewhere whose homes are now worth substantially less than their mortgages.

Source: Kevin G Hall, RISMEDIA

Housing Trend Watching Expects Improvement in 2009

2009-03-05T18:51:00.000-08:00

NWREporter March 2009

New Home Trends, publishers of The Monthly Monitor report on housing, expects 2009 will be a better year than 2008

"If there is a positive aspect in the auctions we are seeing today, it is that it will help reduce some of the spec inventory that we so desperately need to shrink," observed Todd Britsch, president of New Home Trends. Even though new home spec inventory levels have come down from last year, Britsch believes further reductions need to happen before we will return to a healthier market.

In the Puget Sound region between December 2007 and December 2008, spec inventory dropped by 996 from 5,147 to 4,151, or 19.4%. Based on the sales over the past 12 months in the Puget Sound region, there is an 8.2 month supply of spec inventory.

New Home Trends, based in Bothell, tracks housing construction in six Northwest markets in Idaho, Oregon and Washington. Among data collected are sales, floor plans, lot sizes, amenities, square footages, selling prices, construction start dates, hearing results, prices and buyer preferences. "We all feel optimistic that 2009 will be a better year than 2008, and new opportunities will present themselves to all of us," Britsch stated.

2009 Predictions from New Home Trends

1. New single family home prices will drop another 10% before stabilizing
2. Sales will continue to be slow, but better than the last half of 2008
3. The stabilization of the market will begin in third quarter 2009
4. We will see additional job losses in our industry and others
5. New large investor groups will step into the game
6. New smaller more affordable product will be introduced
7. Interest rates will remain low

from The Monthly Monitor; for complimentary copy: http://www.newhometrends.com/

How To Stage A Room in 10 Easy Steps

2009-03-03T22:05:00.000-08:00

After
Before

Accredited Staging Professional

Here are 10 simple steps for Staging a room.

1. Stand in the doorway. See what buyers see before they step into a room so you can make the changes. The buyer will not buy the house if he or she won't step into a room. Staging draws them into every room.

2. Pick a Staging point. Ask yourself, " how will a buyer use this room?"
If it's a bedroom, the staging point is usually the bed. If it's a music room, the Staging point is probably an intrument of some sort. In a living room, the staging pint could be the beautiful fireplace. Stage the room around a focal point.

3. Make a plan. Don't worry that this plan will be casted in stone, it's made to be changed. It's only to help you to get started. Go with your feelings. If you don't like it as you planned, change it.

4. Clear the clutter. Take out all pictures, mirrors, and accessories. Put them in the hallway so you can see the "bones" of the room.

5. Divide things into piles. Pack away, trash, give away, and sell. (Some things will go back into the room as you finish Staging.

6. Get rid of some of the furniture. Does a piece of furniture crowd the room? Move it out! Sometimes one piece may work in another room, such as for example, a chair from the living room to the master bedroom may add a cozy touch.

7. Decide what furniture will stay. It's simple substraction, keep the basics; get rid of the extras. Some furnitures makes for fine living, but bad for Staging.

8. Arrange furniture the way you want it. Less furniture, more space. Move things around. There is no right or wrong. Work until the room looks spacious and open to you.

9. Rebuild with accessories. Staging is all about creativity. When you bring accessories back into a room remember that less is more. Find new use for something--for example, making a curtain rod out of a golf club or an oar.

10. Fine-tune. Stand in the doorway again. Is there anything else you can do, remove, or added? Have you cut the tags off the pillows and throws? Are the blinds hanging straight? Can you see any electrical cords?

I hope that this has simplified staging for you. Contact me if you need assistance in staging your home to sell in the market.

Choosing The Right Weatherstripping

2009-03-03T21:52:00.000-08:00

How to eliminate heat loss at exterior doors. By Paul Bianchina, Inman News

Air infiltration -- the movement of outside air into and out of your home -- can account for a significant amount of heat loss, and the resulting air currents can make a home feel uncomfortably drafty. When it comes to air infiltration some of the most common culprits are exterior doors, so a few weekend hours devoted to some new weatherstripping can have some pretty dramatic results.

Selecting the right weatherstripping
The type of weatherstripping to use depends somewhat on the type of door and frame you have, and also on how much time and effort you want to devote to the task.

The easiest and least expensive is foam, but, while it's better than nothing, foam doesn't form a tight, uniform seal and is also easily damaged. Foam weatherstripping comes in rolls of different widths and thicknesses, and is self-adhesive. It is applied to the inside edge of the door stop -- the wood strips mounted on the door frame that the door closes against -- and is designed to form a seal when the door closes against it. Select a foam that is the same width as the thickness of the door stop -- typically 1/2 inch -- and that is thick enough to close the gap between the door and the stop. Simply cut the foam to length with a pair of scissors, peel off the backing paper, and press it firmly against the door stop.

A better choice is a compression weatherstripping, which also fits between the door and the door stop to seal off air leaks, but has the advantage of being easier to adjust and considerably more durable. One type of compression weatherstripping is a semi-rigid, high-density foam strip that mounts into a slot in the door stop. Most new doors now come with this type of weatherstripping, and if you need to replace an existing piece on one of your doors, installation is simply a matter of cutting the replacement material to length and tucking the flange on the weatherstripping into the slot on the door stop. If your door does not currently have this type of weatherstripping, adding it would necessitate removing the door stops, cutting a slot along one edge, then reinstalling them.

Almost as effective -- and easier to install -- is vinyl bulb weatherstripping. Vinyl bulb weatherstripping has a tough, hollow strip of vinyl set in a rigid piece of aluminum, and a complete weatherstripping kit contains two long pieces for sides of the door, one short piece for the top, and all the necessary screws or nails for installation. To install, cut the short piece to fit between the door stops. Close the door, place the weatherstripping on the face of the door stop so that the vinyl bulb is slightly compressed against the face of the door, and nail it in place. Then simply repeat the process with the two side pieces.

To complete any door weatherstripping operation, don't forget the gap between the bottom of the door and the wood or metal door sill. The simplest way to close this off is to use a door sweep, which is a flat aluminum strip with a piece of vinyl weatherstripping in one edge -- simply screw the strip to the outer face of the door so that the vinyl makes contact with the sill and covers the gap.

More effective, however, is the door bottom, which is an L- or U-shaped aluminum strip with a curved vinyl insert on the bottom. The metal fits over the very bottom of the door, and is adjusted up or down so that the vinyl forms a complete seal against the sill. Installation may require removing the door and cutting a little bit off the bottom to accommodate the thickness of the metal and vinyl.

All of these types of weatherstripping are available at home centers, lumber yards, hardware stores and discount stores, and typically come with complete installation instructions and all of the necessary hardware for fast and easy installation.

Is A Short Sale Better Than Foreclosure For a Seller?

2009-03-03T19:57:00.000-08:00

In the mythical world where a sellers turn to short sales, there is no down side. In reality, the seller can face numerous potential, long term problems.

Sometimes, the debt that is released at closing is not forgiven. Seller's lender will ask seller to sign a short sale agreement in which the released debt becomes an on-going, unsecured obligation of seller. This could in turn constitute a judgement lien against seller for up to 20 years or until paid. If sellers take the foreclosure route, however, the debt would have been eliminated completely.

In some cases, the debt that is forgiven will be considered as seller's income by the IRS for which income taxes must be paid.

If seller is required to miss mortgage payments in order for lender to consider accepting a short sale, then a short sale reported on a seller's credit can have the same negative consequences to seller as a foreclosure.

Which one is better? That is up to the seller to decide who has to go through the stress of the process of either one in their lives.

Kitchen Floor Options

2009-03-03T16:36:00.000-08:00

Overwhelmed by kitchen floor options?
Resale value, cleanability among key selling pointsBy Paul Bianchina, Inman News

The floor in your kitchen has to wear a lot of hats. It has to be able to withstand the rigors of lots of foot traffic. It needs to be water-resistant and be able to stand up to repeated cleanings. It has to be able to withstand grease, spills, drips and other indignities -- and it has to look good doing it!

When you're ready to shop for a kitchen floor that can handle all those demands, you'll find that you have several choices. There's probably no single "perfect" flooring material, but by doing a little homework, you're sure to find one that will work beautifully in your kitchen.
Here are some great choices to consider, along with some of the pros and cons of each:
Sheet Vinyl: Sheet vinyl flooring is one of the most common choices for a kitchen floor. Sheet vinyl is very resistant to spills, grease and dirt, is very water resistant, and is also very easy to clean. There are hundreds if not thousands of patterns, styles and colors to choose from, as well as different weights and thicknesses. Vinyl sheets are available in 6-foot and 12-foot-wide rolls, so it's possible to complete most kitchens with few or no seams. It's also one of the less expensive flooring options, so it's easier on your wallet and also makes it a little easier to change if you redecorate.

On the down side, vinyl flooring is prone to wear and scratching over time, especially with the lower-end materials. And from a resale value, it may lack the appeal of some of the more expensive floors.

Vinyl Tiles: Vinyl tiles have some of the virtues of sheet vinyl, such as water resistance, ease of cleaning and low cost. Because these are individual tiles, they are the easiest of all the flooring products for the do-it-yourselfer to install. Another advantage is that if damage occurs, you can easily take up and replace the individual damaged tiles, without having to incur the cost of replacing the entire floor.
There is a very definite downside with vinyl tiles, however, and that is the dozens of dirt-catching seams you end up with. Vinyl tiles also have probably the lowest overall appeal from a resale standpoint.

Ceramic Tiles: Ceramic tile is one of the best overall choices for a kitchen floor. These hard, durable tiles will stand up to all sorts of abuse, from spills to heavy appliances, and the tile is completely waterproof as well. Ceramic tile is hard to beat from a decorating standpoint, as there are thousands of size, color and pattern choices available. You can also mix different types or colors of tile to form patterns, borders or even pictures. A quality ceramic tile floor, especially some of the new travertines in large squares, are currently very popular and will add to a home's resale value.

The downsides of ceramic tile seem to be a matter of personal preference. For one thing, tile is the hardest and coldest of the floors underfoot, with none of the resiliency of vinyl or wood. This can be offset to some degree through the addition of small, non-skid area rugs, and if you want to really warm up the floor, you can have radiant heat cables installed underneath the tiles during installation. The other issue that some people have with tile are the grout lines, which are a little harder to clean than the tiles themselves. Again, this problem can be minimized by using larger tiles with small grout spaces between them, and be making sure that the grout is sealed after installation.

Laminate Floors: Laminate flooring has become increasingly popular in the kitchen. There are dozens of patterns and colors now available, some of which mimic the look of real wood quite well. The laminate can be chosen to blend or contrast with the wood in the cabinets, and you can mix in some darker strips to create accents and borders if desired. Laminate floors have some "spring" to them, making them one of the softer and more comfortable floors to stand on. They can also be a very good do-it-yourself project, and a well-selected and well-installed laminate floor will also add resale value.

If you have a kitchen that sees a lot of use, especially if chairs or bar stools are present, the laminate can be prone to scratching. Laminate also requires specific cleaning products for best results and longest life, and may not stand up to a lot of water over time.

Hardwood Floors: Hardwood floors have long been a classic and desirable feature in living rooms and other areas of the house, but it was only through relatively recent advances in the quality of polyurethane finishes that wood has found its way into the kitchen as well. Hardwood is beautiful, durable, compliments virtually any style of kitchen, and typically adds to the resale value, although some people are still a little leery of it in the kitchen.
Hardwood flooring is not a very good do-it-yourself project, and requires proper sanding and finishing to look good and to hold up in the kitchen. It also has some of the same drawbacks as laminate, requiring special cleaners as opposed to simple damp mopping, and is prone to scratching and damage from excessive water.

Kent Condo For Sale

2009-02-27T23:39:00.001-08:00

Best Deal in Town. Ground level, 3 bedrooms, 2 baths, with own backyard and front yard. Updated kitchen and baths. Cozy living room with woodstove. Turn - key, new carpets and paints.

Twin Firs Kent Condominium

2009-02-26T23:48:00.001-08:00

Three bedrooms, 2 baths, Ground Level unit, $175,000.

FSBO Advantages and Disadvantage

2009-02-02T14:40:00.000-08:00

Advantages of a For Sale By Owner listing:

Saving the cost of the broker's commission
Maintain greater control and maximum flexibility over all aspects of the transaction
decide how and when to advertise
Decide how to price your home
Control when and to whom you show your home
Can remain on the premises to answer questions when buyers come to inspect it
Get immediate feedback from potential buyers and sellers
Are under no obligation to accept any offer
Do not have to keep a "lock box" on your door

Disadvantages

Buying or selling on your own can be frustration, time-consuming and expensive.

May wast time and energy seeing unqualified buyers or viewing unwanted homes
Will have little or no access to data about past sales, current market values and conditions, multiple lisitng service and broker contacts
Are responsible for deciding if yur initial strategy is working and preparing alternative plans if it isn't
Have to negotiate directly with concerned parties
Will need extreme patience in dealing directly with the public on a regular basis
Will need to pay for advertising, fact sheets and open house signs, in advance
Cannot show your home when your are not there
Put undue wear and tear on your vehicle.
Must seek out an dinvestigate qualified inspectors, repairmen, lenders, surveyors, insurance companies, appraisers, title companies and attorneys.

"Going it alone"

2009-02-02T14:20:00.000-08:00

About one in four homes in the U.S. is bought or sold "by owner." Buyers and sellers must beware of the usual pitfalls such as improper planning, insufficient time and lack of patience. but you can do it if you are market wise and adequately prepared. Before you"go it alone," learn as much as you can abut the responsibilities you will be facing.

Contact me for a FREE copy of "For Sale By Owner" Kit.

Home staging sins

2007-10-09T15:56:00.000-07:00

Accredited Staging Professional

The 7 Deadly Home Staging Sins You May Be Committing Right Now!

What if you just had five seconds to sell a house but you couldn’t say word? You are not allowed to say anything - no sales pitch, no comments, nothing. You just have to step aside and let the house sell itself.

Now…how would go about setting up the house? How do set the stage to impress people and make them fall in love with your listing? How do make a buyer say “Wow…this is a really nice!”?

Home staging is the answer. It’s the crucial step needed to help a buyer connect with a listing and visualize themselves living in the home. Staging showcases the house in the best possible light. After all, we never get a second chance to create a great first impression so it is imperative that the house is “dressed to impress.”

Unfortunately most listings suffer from one or more of the 7 deadly home staging sins. These are often made by agents and home sellers unfamiliar with home staging. Are you guilty of any of these potential deal breakers?

Failure to thoroughly deep clean the home – especially the kitchen and bathrooms.
A dirty house an immediate buyer turn-off. The two most important areas are the kitchen and the bathrooms. If you have not deep cleaned all counter and tile surfaces to a spotless condition, you stand the chance of having the buyers walk right back out the door. Another critical area is the floors - all carpets and rugs. Without question, they must be either replaced or steam cleaned as a dirty carpet is the number one buyer turn-off.

Failure to de-clutter the entire home.
Clutter, both inside and outside your home makes it extremely hard for the buyers to visualize moving into your home. The disorganization will directly affect the buyer’s ability to focus on your home and they will most likely overlook your key selling features. In addition, clutter has the affect of making your home appear smaller than it is as the “open” feeling is gone.

Failure to de-personalize your entire home.
Your home is your comfort zone and it is filled with all of your personal memorabilia, but to the buyers it represents a huge distraction. People are generally curious and when you want them to notice the beautiful entryway they may be focused on all the family pictures on the piano or all the “stuff” stuck to the front of your refrigerator. Your objective is to change the view of your home from “lived in” to “ready to move in.”

Failure to use neutral colors when painting both inside and outside.
While your favorite colors may be the exact complement to your living style, the shades and hues may be a complete distraction and turn-off to the buyers. Your favorite wall paper may not be on the buyer’s “best” list. The best way to present a home is for the wall colors to be painted a neutral color. This goes for the outside as well – a loud or non-neutral color may just keep the buyers from even stopping to see the inside.

Failure to spotlessly clean the windows and window coverings.
Nothing is more distracting to a buyer than to be looking at a view through a dirty window. This area, as in cleaning the carpets is best left up to the experts. The same can be said for the kitchen and bathroom counters and tile. A little investment here will pay big dividends … what you don’t see is often more important that what you do see.

Failure to make your pets disappear.
While your pets are a loving member of your family, for the buyers their presence, food and boxes are generally a turn-off. Every trace of their presence should be removed so, once again, the buyers are not distracted from the prime objective – viewing your home in the best possible light.

Failure to spruce up your calling card – your landscaping.
A healthy, neat, trimmed and well maintained yard and flower beds are the keys to getting the buyers up to the front door. The last thing they want to see is your “stuff” all around an uncut and untrimmed lawn. A little effort in this area with perhaps the help of a professional gardener will pay big dividends. A well maintained exterior plants the seed of a well maintained home in the mind of the buyer.

Feng Shui

2007-09-09T13:25:00.005-07:00

Today's Topic: Sacred Space

TRUTH: Sacred space replenishes our body, mind and soul.
The most important YIN room in the house is your bedroom. It's a sanctuary for rest, sleep, play, dress and for your dreams. Thus it's important to create sacred space in this room by balancing the 5 elements and incorporating soft, clean, fresh fabrics, (high thread count) linens, pillows, comforters and sleep wear. Creating a Zen-like environment without clutter, without loud noise, without harsh colors and/or offensive scents/odors allows the body, mind and soul to replenish itself at the cellular level.
TIP: The ideal YIN bedroom is one that is void of kitty litter, dirty clothes, offensive artwork, computers, files and exposed electronic wires and TVs. Soft (romantic) music or a fountain is appropriate and healing for cellular rejuvenation.
INTENTION: I am soothed, healed and embraced by gentle Chi..ENERGY..in my bedroom. I awake rested and refreshed, to take on the world in a powerful and empowering way.

Buffington Custom Home Resale

2007-09-09T13:25:00.003-07:00

$499,950. Price Reduced! 3008 sq ft. 4 bedrooms, 2.5 baths. Stunning custom home by Buffington Custom Homes-Street of Dreams builder.Elegant round foyer w/art niches.Brazilian cherrywood flrs. Granite island kitchen w/SS appls,downdraft cooktop,full height backsplashes,corner pantry.Fridge stays. Lrg great rm with granite frpls & niches. Main flr office.Spacious mstr suite & lrg mstr 5pc bath.Huge 4th bdrm.Extensive crown moldings.Bosch tankless on-demand water heater. Garage has seperate storage closet 1 yr home wrnty.Close to South Hill amenities. Keller Williams. MLS # 27129131 Call 206-498-5446 for more information.

Vacant Lot on Scenic Hill

2007-09-09T13:25:00.002-07:00

$175,000 Ready to build. All utilies in street. In established neighborhood. Near Kent Station, easy access to HWY 167. Buyers to verify all information. Keller Willliams. Mls #27135138

206-498-5446 for more information

Price Reduced! Close to Vancouver, WA and Portland!

2007-09-09T13:25:00.000-07:00

Close to Vancouver WA. and Portland Oregon. Affordable living and commute close to Portland and Vancouver.

Reduced price to sell under market value. Greatest value in the entire neighborhood. Highly MOTIVATED SELLERS, bring in an offer and we'll talk. This open, spacious, bright home. Immaculate and freshly painted interiors with upstairs loft. Granite kitchen counters with walk in pantry closet. Gas fireplace in living room with a niche above. High 9 ft ceilings. Central A/C-Trane unit. Large master bedroom with double doors & walk in closet. 5 BEDROOMS, 2.5 BATHS, LAUNDRY ROOM. $325,500

Feng Shui

2007-06-26T12:16:00.000-07:00

Today's Topic: Numbers

TRUTH: Every number COUNTS! From a "classical" Feng Shui perspective, each number represents a specific element.

Number 1 is the element WATER

Number 2 is the element EARTH

Number 3 is the element WOOD

Number 4 is the element WOOD

Number 5 is the element EARTH

Number 6 is the element METAL

Number 7 is the element METAL

Number 8 is the element EARTH

Number 9 is the element FIRE

The numbers 1, 4, 6, 8, and 9 are the most positive numbers in Classical Feng Shui, The most auspicious numbers are 8 and 9. The number 8 is about present money and wealth. Number 9 is about future money and fortune!

TIP: The reason why the number "4" is typically considered bad luck in Feng Shui is that it sounds like the word "death" in the Chinese language. Nonetheless, it is still considered a positive number when calculating the "unseen" energy inside a structure!

Phiroum has knowledge in Western Classical Feng Shui for your Real Estate needs. Whether it is selling or buying she can help you.

Introducing Phiroum Svy, Realtor

2007-05-18T15:43:00.000-07:00

WHAT'S IN A NAME?

Peacefulness, which is the meaning of her name in Cambodian, is a fairly accurate description for Phiroum (pronounced PE-ROME). Ironically though, until she immigrated to this country, peacefulness was nothing more than a dream for every resident of that war-torn country. Peacefulness was so foreign to most cambodians that her parents named her so in hope that someday she would grow up to experience it. With the peacefulness and freedom that America has offered her, Phiroum has strived to perform her best at all her endeavors. As peacefulness accurately describes her name, "Striving for Excellence" accurately describes her devotion. From struggling to learn her first English word to ensuring that her daughters are well prepared for adulthood, Phiroum can take comfort and pride in knowing that she has always tried her very best.

LIFE'S PRIORITIES...... Phiroum and her family have been living in the Covington area for the past two decades. When their first daughter was born, Phiroum decided to stay home and devote her time to raise her. In her mind nothing was more important in life than to ensure that her precious child would receive the care, the attention, and the support that she could provide. This was also the case when her second daughter was born four years later. She helped them with their school work, participated in their activities, and volunteered at their schools whenever possible. Regardless of her schedule, Phiroum alsways made time to play with her children. Besides being high academic achievers, both children have grown up to be very responsible individuals. Phiroum felt that it was time for her to find other ways to suppport her family including helping to pay for the kids' college education.

STRIVING FOR EXCELLENCE

That was when she discovered her passion for real estate. She felt that with the patience and the human skills she has learned in raising her children plus her natural ability to communicate should provide a solid foundation as an excellent Realtor. Just getting a license to practice was not sufficient for Phiroum. She constantly takes efforts to learn new skills to enhance her capability in marketing and property staging. As an Accredited Staging Professional, Phiroum maximizes the selling price of a home by utilizing available resources to enhance its appearance inside and out. She created and maintains multiple websites to showcase her clients' properties. She also has a unique perspective and sensitivity to deal with clients of various ethnic backgrounds and cultures. This is crucial in an area as ethnically diverse as ours. Phiroum always takes extra efforts to identify her client's needs and to deliver the quality service to ensure that her relationship with them continues even after the transaction ends. After all, clients' referrals are the basis of her business.

Areas of Expertise:
Lake Meridian, Kent East Hill, and the Covington Area. Accredited Sellers Representative, e-PRO Technology Cerified, Accredited Staging Professional.