THE IMPORTANCE OF STAGING!

3 tips for staging your home to sell

Decluttering has financial upside

By Dian Hymer, Monday, December 19, 2011.

Inman News®

Paint brush image via Shutterstock.com.

Today's buyers are looking for turnkey homes. That is, they want to move right in without having to do a lot of work. Buyers with busy lifestyles pay a premium for listings that are in prime condition. Staging can make the difference between a listing selling or not, the time it takes to sell, and the ultimate sale price.
Sellers who are financially strapped often have a hard time accepting that they'll need to invest in preparing a house for sale even though they may sell for less than they paid. Fix-up costs can mount up; your agent can help you prioritize so that you don't waste money. It's important to keep your goal in mind, which is to sell your house in a difficult market.
Recently, a home in Piedmont, Calif., an affluent city neighboring Oakland, came on the market in "as is" condition. It had been lived in for decades without much upgrading. Although located in a desirable area, the listing was vacant, dark and showed poorly. The sellers refused to do any work to improve its appeal.
After months on the market with no significant interest, the sellers pulled the house off the market and made improvements. The wall-to-wall carpet was pulled up to reveal hardwood floors that were then refinished. Painters lightened the interior and a professional stager was hired to bring in furniture, artwork, house plants and accessories. The listing was put back on the market with a fresh look and sold right away.

RATES!!!

Mortgage rates dip below 4% — again

by KERRY CURRY

Thursday, December 8th, 2011, 9:03 am

Fixed-rate mortgages rates were largely unchanged and near record lows, according to Freddie Mac and Bankrate mortgage surveys.
The 30-year fixed dipped to 3.99% for the week ending Dec. 8 with an average 0.7 point, and at 3.27%, the 15-year, fixed-rate mortgage with an average 0.8 point, was just slightly above its all-time low of 3.26%, which it hit on Oct. 6, according to Freddie Mac.
The 30-year FRM dipped from last week when it averaged 4%. Last year at this time, the 30-year FRM averaged 4.61%, the GSE said.
The 15-year FRM is down from last week's 3.3%. A year ago it averaged 3.96%.
Freddie said the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.93%, up from last week's 2.9% but down from 3% a year ago.
The 1-year Treasury-indexed ARM averaged 2.8%, up from last week's 2.78% but down from 3.27% a year ago.
"These low rates and home prices have pushed housing affordability to record highs this year," said Frank Nothaft, vice president and chief economist at Freddie Mac.
Bankrate reported that the benchmark 30-year, fixed-rate mortgage fell 1 basis point this week to 4.24%, according to its survey of large lenders.
Mortgages in the survey had an average total of 0.36 discount and origination points. One year ago, the mortgage index was 4.89%.
The benchmark 15-year, fixed-rate mortgage was 3.48%, unchanged from last week. The 5/1 adjustable-rate mortgage fell 3 basis points, to 3.18%.

CAN RENTERS HELP SOLVE HOUSING SLOW DOWN?

How Can Renters Solve the Housing Crisis?

  ^[1]Residential real estate is not rocket science. We know that this housing crisis is:
1. Explainable – bad lending, mad speculation, wild expectations, government meddling
2. Isolated – bad mortgages, negative equity, strategic default, government meddling
3. Temporary – demand for housing always catches up to supply eventually

SELLING YOUR HOUSE?

5 Things to Do Now to Get Your Home Sold in 2012

 

It’s that time of year when most of us start to count our blessings, look back at what we’ve accomplished in 2011 and think about what we’ll get done in 2012. If selling your home is part of your resolution list for next year, there’s plenty of prep work you can do to set yourself up for home selling success.

Here are 5 things you can and should start working on without further ado, if you want to get your home sold - smoothly and for top dollar - in 2012.

1. Put your intentions in writing. The first step to any real estate transaction - actually, to anything important in life! - is to get clear on your goals. Unexpected challenges and situations might very well come up in the course of selling your home, so having a clear idea of your ultimate goals at the outset is a must to help you make the right decisions along the way and to remind you when you might need to course correct.

When you’re setting your objective and writing it down, it’s critical to be specific and holistic, drilling down to the details of what result it is you want your home sale to achieve in your life.

Also, establish where your priorities lie: with speed or with dollars? For example, your goal might be to sell your house as quickly as possible so you can relocate your family by spring. Or, your goal may be to sell your house at the best possible price no matter how long it takes.

Getting as clear as possible from the very beginning on your priorities and ultimate life objectives for the sale will allow you to communicate these crucial things clearly to your agent, and will power your decisions on issues like:

• which home improvement projects, if any, to complete before you sell;
• whether to accept a particular offer; and
• how aggressively to negotiate counter-offers, and on which points to push back against a buyer’s offer.

2. Study the local market. The most successful home sales are the listings that are priced right from day one. Ask any agent: even in the toughest markets, there are listing that sell quickly, mostly because the one-two punch of the property and its price look to buyers like a very strong value.

In order to position yourself and your property at the point of pricing nirvana, you’ll need to do some leg work. stat. You don’t need to pick an exact price this moment, unless you’re planning to list your home super soon, but you can get started on what I like to think of as the ‘thinking seller’s’ three-pronged approach to pricing now, by:

• visiting open houses,
• studying nearby listings, and
• talking with local agents.

Before the year is up, try to visit a handful of open houses in your neighborhood. This will help you get a sense of the types of homes that are on the market, what condition they’re in, and how they are priced. Keep in mind that no home is going to be exactly like yours, but if it’s similar in size, location and features, then buyers that see that property will probably be the same buyers that come to see yours - and they will be comparing list prices.

Another great prep tool in gearing up to sell your home in 2012 is to study similar homes for sale on Trulia! Pay particular attention to what features they have, how they are described and priced, any incentives the sellers are offering (e.g., closing cost credits, etc.) and how long they’ve been on the market. (Hint: you might not want to price your home right in line with one that’s been on the market over a year. Obviously, that home is overpriced, and that is NOT a result you want to replicate!)

Finally, one of the most efficient and nuanced ways to get to know your local market is to begin speaking with agents who sell homes in your area. Get a few referrals, call them up and tour them through your home. Then, ask these pros for their opinion on what you should list your home for, what recent sales they think are the most comparable (and why), and how long they would expect your sale to take given their experience and current conditions.

You can use these same home tours to get a head start on selecting your listing agent by asking the agents you interview to give you a preview of what they would recommend in the way of preparing your home, timing your listing and marketing your house to achieve the objectives you set in Step 1.

3. Gather your paperwork. In planning for your sale next year, you can get a great head start by pulling together the necessary paperwork now. Keep in mind that the specific requirements vary by state, so this is not an exhaustive list. In general, you’ll need to have these ready:

• Disclosure documents: This includes any documentation of anything that might impact a buyer’s decision about your home, whether it be inspection reports, repair receipts or estimates for repairs you haven’t actually had done yet. Your local real estate pro will help determine what exactly is needed here.
• Compliance certificates: In some cities, the local government will require certain conditions be met before a property is transferred to another owner. Examples of these requirements include sewer line condition guidelines, and energy conservation ordinances that require low-flow toilets and shower heads to be installed. Again, your  real estate agent and your city’s website can help you figure out which, if any, of these types of ordinances might apply to your home.
• Mortgage statements: Before the property’s title can transfer to another owner, the escrow or title company will need your mortgage statements to order payoff demands from any mortgage holder who has to get paid before that can happen.
• Financials: If you’re planning on a short sale, you’ll have a lot more paperwork to gather in your process, including paycheck stubs, bank and investment account statements, and two years’ W-2 forms or tax returns - the bank will review these to determine whether they will authorize you to sell the home for less than what you owe.

4. Prep your listing plan and timeline. After you’ve done all your pricing homework and have chosen a listing agent, you can create a plan and timeline for how all the moving pieces will come together - including who is responsible for getting which tasks done. At minimum, your plan should specify:

• prep work you’ll be doing to your property before it’s listed for sale - including decluttering, staging and any repairs or cosmetic power-tweaks you plan to make;
• if you’re planning a short sale, a timeline for submitting an application to your lender for approval (this might be before or after the property is listed - consult with your lender and your agent on the matter)
• planned list price (based on current local market conditions - this could change if you don’t plan to list your home for several months);
• the target date on which your home will be listed for sale in the local MLS; and
• how showing arrangements will work so that local agents can get prospective buyers into your house to see the place, and what.

Agents: What other elements do you encourage sellers to include in their listing plans?

5. Get a head start on your ‘home’work. How much prep work your home needs really depends on its current condition. A good starting point for many sellers is to order an inspection. Most buyers will get their own inspection before closing a deal, but getting ahead of them with your own will help you avoid any unwanted surprises later on in the transaction. An inspection will give you a reality check on your home’s condition, enabling you to decide upfront whether it’s worth it to fix something now or simply reduce the price in consideration thereof.

Your holiday vacation from work is a great time to:
     (a) obtain any advance inspections your real estate agent recommends,
     (b) have any reasonable repairs completed,
     (c) pre-pack and declutter your place, and
     (d) prettify your home’s curb appeal - painting the shutters and sprucing the landscaping goes a long way toward attracting buyers.

Kudos, in advance, for taking the time now to prepare for your home sale in 2012!  Selling in today’s market is no easy task, and doing the heavy lifting now - before your home goes on the market and, hopefully, while you're on vacation! - will help tremendously in making things go as smoothly, and profitably, as possible.

GET YOUR ENERGY TAX CREDITS BEFORE IT'S TOO LATE

Last Call for Energy Efficiency Homeowner Tax Credits

 The Alliance to Save Energy urges American consumers to give themselves the gift of energy efficiency this holiday season—and reap the benefits when they file their 2011 federal tax returns—by taking advantage of tax credits for energy efficiency home improvements.

FHA LOAN LIMITS RETURN!!!

SOURCE: National Association of Realtors

November 17, 2011 20:38 ET

Realtors® Applaud Congress for Reinstating FHA Loan Limits

WASHINGTON, DC--(Marketwire - Nov 17, 2011) - The National Association of Realtors® commends Congress for reinstating the loan limit formula and maximum cap for Federal Housing Administration-insured loans for two years.
"As the nation's leading advocate for homeownership, we applaud members of Congress for restoring FHA's previous loan limits, which will help reduce consumer cost burdens, stabilize local housing markets and allow qualified, creditworthy borrowers to access affordable mortgage financing," said NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami. "The reinstated loan limits will help provide much needed liquidity and stability to communities nationwide as tight credit restrictions continue to prevent some qualified buyers from becoming home owners and the housing market recovery remains fragile."
The provision reinstates the FHA loan limits through 2013 at 125 percent of local area median home prices, up to a maximum of $729,750 in the highest cost markets. The floor will remain at $271,050. The loan limits for Fannie Mae- and Freddie Mac-backed mortgages will remain at 115 percent of local area median home prices, up to $625,500.
NAR believes the reinstated loan limit formula and cap change will help make mortgages more affordable and accessible for hard-working, middle-class families throughout the country, not just wealthy individuals or those in costly markets. Nearly two-thirds of buyers who will be helped by the loan limits provision have incomes below $100,000.
"It's a misconception that only wealthy borrowers benefit from the maximum cost loan limits; middle-class home buyers living in all areas of the country deserve the same access to affordable mortgage financing and the same opportunity to achieve homeownership that home buyers enjoy in the most affordable regions of the country," said Veissi. The legislative action will have an impact even in communities with loan limits well below the maximum cap; the reset last month impacted 669 counties in 42 states and territories, with an average loan limit reduction of more than $68,000.
The bill also provides for a short-term extension of the National Flood Insurance Program through December 16, 2011. NAR strongly urges Congress to use the additional time to complete work on a five-year reauthorization of the program, which ensures access to affordable flood insurance for millions of home and business owners across the country.
The National Association of Realtors^®, "The Voice for Real Estate," is America's largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

GETTING CLOSER!

Why We Need the Housing Market to Hit Bottom

Written by: Brian O'Connell 11/11/11 - 12:01 PM EST

NEW YORK (MainStreet) -- With home values in decline, down about 29% since 2006 according to Zillow.com, you might think that affordability alone would make the housing market a good bet. But it isn't. And that is weird.

When the price of most commodities goes down, such as gasoline or oranges, the tendency is that consumers buy up more of those commodities. But that hasn't happened in the U.S. housing sector.

A bottom in the housing market has been a long time coming, and new numbers may make the picture clearer.

Even though housing prices, on average, have fallen almost by one-third in the past five years, housing purchases just haven't budged.

Pending home sales were down by 4.6% in September, according to Realtor.org, while existing homes sales fell by 3% (although sales for the year in both categories are up moderately). That's been the case for most years during the Great Recession, as sellers outnumber buyers.

But as any homebuyer could tell you, it's not easy getting credit for a $500,000 home -- or even a $300,000 home. In addition, high unemployment has made buyers nervous. Few consumers want to take on a massive source of debt when they're uncertain about their job prospects. In addition, consumers don't want to buy a home that may not appreciate in value all that much during the next 10 years.

But affordability may finally help get some homes off the market, albeit at a slower pace than homeowners and real estate professionals might like. Numbers from Fiserv Case-Shiller show that lower home prices may finally be triggering "price stability" in the U.S. housing market.

The Fiserv home price insights index shows three fairly major developments in the housing sector, one for the long haul and two happening right now:

Home prices in the U.S. are expected to decline 3.6% into mid-2012, and then rebound 2.4% in the second half of 2012 through the first half of 2013.

Price declines and low mortgage rates have resulted in dramatic improvements in housing affordability.

Fiserv estimates that the ratio between mortgage payments and housing income has fallen 40% from its peak in 2006.

"Housing affordability has improved dramatically because of declines in both prices and mortgage interest rates," explained David Stiff, chief economist at Fiserv, in a statement. "The monthly mortgage payment for a median-priced single-family home is now $700, compared to $1,140 in 2006 -- a decline of nearly 40%. Nationally, purchase mortgage payments now account for only 13% of monthly median family income, the lowest percentage on record (since 1971), and compared to 23% in the first quarter of 2006."

Both pricing declines and low mortgage rates may finally be gelling enough to where people should start to feel more comfortable buying a home, although the data show that lower-priced homes are more attractive than median-priced ones these days.

Of course, any pickup in "affordable" home purchases depends on the health of the U.S. economy -- an uncertain proposition as the U.S. and global economies struggle to emerge from recession. Stiff, for one, thinks the odds of that happening are pretty good.

"If economic growth picks up in the second half of 2011, then home prices should stabilize early next year," he says. "New housing construction is at an all-time low and inventories of foreclosed properties are starting to shrink. Lower levels of housing supply and more steady demand next year will reduce downward pressure on prices. As homebuyers become more confident, many who are sitting on the sidelines will begin to enter the market and prices will start to increase."

That would be a welcome prospect indeed for homeowners, and for buyers itching to get into a home of their own. We'll know a lot more by next spring, but for now, the outlook for housing is as good as it's been in a long while.

PRE-LISTING INSPECTION...NOT A BAD IDEA

3 must-knows about prelisting inspections

REThink Real Estate
By Tara-Nicholle Nelson
Inman News™

Q: Recently, I read an article of yours in which you told a seller to have her home inspected before putting it on the market. I will be putting my mom's house on the market, and in watching many of the real estate TV shows, I had never heard or seen this idea before.
Can I really obtain the home inspection in advance? The process always seems to have problems after the prospective buyer gets the mortgage and then pays for his or her own inspection. It would seem like a good selling point if the property already had a clean inspection or the indicated repair were already taken care of. --Albert W.
A: You absolutely can -- and possibly should -- obtain an inspection on your mother's home before you put it on the market. Given the way mortgage lending guidelines have tightened up and the fact that appraisal and condition issues are killing a larger number of transactions than at any time in memory, obtaining prelisting inspections differentiate your home from the overwhelming competition and boost your home's chances of selling by helping satisfy prospective buyers that the property will:

• pass the lender's and appraiser's condition guidelines;
• not have surprise condition issues arise midtransaction; and
• be in a condition that maps to the price they've agreed to pay for it.

Here are some things you should think about as you decide whether to move forward with obtaining prelisting inspections and figure out a plan around how to leverage the reports.
1. Prelisting inspections won't make the deal, but they can help optimize your chances of closing the deal. Buyers are not going to buy a house they wouldn't consider otherwise because it has reports, but if they are debating between your mother's home and another property, a clean bill of house health, documentation that needed repairs have been completed, or even reports showing what needs doing and a corresponding discount can help push buyers off the fence.
As you noted, many homes fall out of escrow because of condition issues not discovered until the transaction is partially underway. Sometimes, advance inspection reports can surface issues, allow you to get repairs completed and thus avoid that issue.
However, at other times, prelisting inspections show issues too big for you to have repaired that will be deal-killers for almost any mortgage lender. In this case, you do yourself the favor of forgoing even bothering trying to get it past a mortgage lender and empower yourself to list it as a cash-only sale for a fixer-upper price.
2. Having prelisting inspections may change your disclosure requirements. You don't mention whether your mother has passed away, but if so, and you are selling her home on behalf of her estate, you could very well be exempt from many disclosure requirements, depending on your state's law. (Consult with a local real estate agent to find out.)
However, once you obtain prelisting inspections, you will have a legal duty to provide information about any defects turned up to prospective buyers. That still might make sense, especially if the home is in great shape or you do elect to invest in necessary repairs. Just be aware that by obtaining the inspections you might heighten your own legal duties vis-à-vis making disclosures about the condition of the home.
3. Your prelisting inspection won't replace the buyer's inspections. To be clear, whatever inspection(s) you obtain won't be the inspection -- it will just be an inspection. You'll want to expressly advise the buyer that the prelisting inspections -- and I would encourage you to consider a pest inspection, property inspection and a roof inspection -- are for his information only.
You don't want the buyer to rely totally on it and forgo his own due diligence for liability reasons; your aim is to either verify the place is in good shape, clear the place of major repairs or brief them on why the property is being priced in that way and what they'll need to do (or won't need to do) later, assuming you can negotiate an as-is offer.
But you also want the buyer to still obtain his own inspections, so he can attend, ask questions, select the inspector and not fault you for anything that is missed. And you should work with your listing agent to require that the buyer sign your written advice to get his own inspections, as well as to make the property available to the buyer for just that purpose.

NEW FHA LOAN LIMITS

 As the housing market and the overall U.S. economy continue to falter, a group of real estate industry executives recently took the time to draft a letter to John Boehner, Speaker of the House; Nancy Pelosi, Office of the Democratic Leader; Majority Leader Harry Reid and Minority Leader Mitch McConnell

RATES KEEP GETTING LOWER!

- RISMedia - http://rismedia.com -

RISMEDIA, August 11, 2011—The average rate for a 15-year fixed loan dropped to 3.54 percent last week from 3.66 percent the week before, according to Freddie Mac—the lowest result since 1991.

RENTAL SCAMS....BE AWARE!

Beware of renting an apartment that's not for rent

Published 11:10 p.m., Wednesday, July 27, 2011

Page 1 of 1

Here's a scam that local police tell us is all too common, and it's been a good deal more common since websites like Craigslist appeared on the scene.

It's the apartment rental scam, and it goes like this: You're looking for an apartment in, say Fairfield, so you log onto New York Craigslist>Fairfield>Housing>apts by owner. You see just the perfect place, complete with pictures and dozens of amenities -- pool, spa, Jacuzzi, mood fountain, the works.

So you email the landlord. When the "landlord" replies, he tells you that he's out of the country "on business" and there are five other people "just dying" to get the place, but you can nail it down by wiring him $2,500.

So, you give him a call, naturally, and he still sounds pretty convincing. You drive by the place to check it out, and it seems on the up and up.

So, you wire the "landlord" the $2,500 and you call him for a meeting so you can get the key.

When the day and time arrives to meet him, he's nowhere to be found. You call him on his cellphone. Disconnected.

You knock on the door and, to your surprise, someone is living there with no intention of moving out anytime soon. And, the occupant tells you the name of the real landlord, which is different than the guy you're dealing with.

You're out $2,500, and there's nothing anyone can do to get your money back.

"We get these complaints all the time," said Sgt. Sue Lussier of the Fairfield Police Department. "First of all, never complete a transaction like that without meeting the landlord in person."

She said it's also a good idea to check websites like www.visionappraisal.com to see if your "landlord" really does, in fact, own the place. It's also an excellent idea to rent through a real estate broker.

As for the five other people "just dying" to rent the place, she warns: "Actually, if you check, there are dozens and dozens of apartments for rent in Fairfield alone, so don't feel under pressure to wire anyone money," she said.

"Also, in the first place, you should never be wiring anyone any money," Lussier said. "Once you do that, the money is theirs, and there's nothing we can do about it. A lot of times they'll tell you that they're in Africa doing missionary work."

To make matters worse, the scammer will tell you, "Look, I just want to make sure you have $2,500 so I know you're not wasting my time. So wire any of your friends the money using MailGram, and email me a scan of the receipt."

But the way MoneyGram works, once he has a copy of the receipt, he can intercept the cash at any MoneyGram outlet in the world, and you're out the $2,500.

In many instances, scammers will simply pirate information off a legitimate Craigslist ad, as well as the pictures, and just substitute their own contact information. Also, beware of spelling and grammatical mistakes, which could be a tip off that you're dealing with an overseas operation.

Unfortunately, people looking for an apartment are often from out-of-town, so they're more vulnerable to the apartment scam.

We'd like to add that renting from a classified ad in the newspaper is always a much safer bet, because the person placing the ad with us (or another paper) is leaving a paper trail (a canceled check or credit card record) that makes it easier for law enforcement to track down the suspect.

We learned about this after getting in touch with a scam victim who found out she was had after wiring money to secure an apartment in Fairfield. When she went to collect the key, the guy she wired the money to was nowhere to be found, and there was someone living in what was supposed to be her new pad.

"If they say they're out of the country, it's always a scam," Lussier said. "We get these complaints all the time. And there's not much we can do for the victims."

Read more: http://www.ctpost.com/local/article/Beware-of-renting-an-apartment-that-s-not-for-rent-1619104.php#ixzz1TSCX1UxM

Who To List With??

7 qualities of a top listing agent

REThink Real Estate
By Tara-Nicholle Nelson
Inman News™

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Q: I'm preparing to list my home, and am starting to research listing agents to represent me. Besides being comfortable with my broker, what is the most important quality I need from them: negotiating skills or marketing skills? Both are very important to me. Frankly, I'm afraid of being "roughed up" by aggressive buyers in this market. --Michelle
A: You're spot on, Michelle. Both marketing and negotiating will be uber-important to have in the broker or agent you choose to list your home and get it sold.
Some might see marketing as the most important because, to put it plainly, if your home is not exposed widely and aggressively to prospective buyers, you'll never have the buyer viewings and offer(s) that must come in for you to even be faced with the high-class problem of negotiating the price and terms of a sale.
However, I don't see marketing skills as the requirement so much as your listing agent having a clear, comprehensive marketing plan that she is able to present to you with case studies or specimens of marketing she's done for recent properties somewhat similar to yours. It's critical that an agent's marketing plan for your home include details such as:

• how she would help you prepare or stage your property for sale;
• what her plans are for listing the property on the local multiple listing service(s) and publicizing it to other brokers;
• what onsite marketing she would recommend (i.e., yard signage and/or open houses); and
• how and where she would place your home's listing online, down to which sites she'd list it on and how many pictures she would include.

All essential.
But negotiating is essential too -- especially if you're very concerned about being bullied or taken advantage of.
Ultimately, though, when it comes to negotiations, you're going to be faced with making the ultimate decisions about what your bottom-line price and other terms are, including whether you're able to offer incentives like closing-cost credits or whether you can afford to contribute to any repairs the buyer's inspectors require.
What I suspect you want is to feel like you're protected, which will come from having an agent you trust who's "got your back," but also has the experience and knowledge of local standard negotiating practices and buyer psychology that comes only with experience -- and I mean recent experience getting homes sold in today's market climate.
I cannot emphasize enough that one efficient method of finding such a listing agent is to get referrals! Look to any family members, friends, work colleagues and neighbors whose homes are on the market now and ask them if they would strongly recommend their agent, and why.
If it's tough to get referrals, go into the various online real estate websites and their local discussion boards, and see which local agents are giving sensible, knowledgeable answers to consumers' questions in those forums. During your interview process, ask for references -- and call them! Speak to their recent past seller clients, to see how happy they were with the agents' service.
And I'd suggest you look for several other items beyond marketing and negotiating skills, or even trustworthiness and experience.
If I were listing my home one of my top priorities would be to find an agent who seems to have nailed the art and science of pricing their listings -- I'd want to find an agent whose listings regularly sold quickly, relative to other homes in the area, and for sales prices that were at, near or even above the asking prices.
That's an agent whose pricing recommendations you can trust, and an agent who likely has another strong skill you need: the skill of being able to have frank, tough conversations with their clients about what their homes are worth, and can support those list-price recommendations with facts and sound reasoning.
I'd also prioritize an agent with strong relationships: with their past clients; with mortgage professionals; with other agents in the area; with property preparation vendors (like stagers, painters, handymen/women, landscapers and such); with inspectors, engineers and contractors; and with local escrow companies.
And, if I were listing my home as a short sale, I would absolutely limit my listing agent search to agents who have a strong, proven track record of getting short sales closed -- ideally short sales that involved the same bank or banks as my mortgage lender.
This is by no means an exhaustive list of questions to ask and traits to seek in your listing agent candidates, but these are certainly where my top priorities would lie.

NEW CONVEYANCE TAX INCREASE

REMINDER…. CONVEYANCE TAX INCREASE EFFECTIVE 7/1/11
The Connecticut General Assembly adjourned its 2011 Regular Session on Wednesday, June 8. The following material highlights a number of important pieces of legislation that were enacted in the session.

Conveyance Tax

• Public Act 6: Section 102 of this act increases the state's portion of the tax by ¼ of one percent. This increase will go into effect on July 1, 2011, and will be applicable to conveyances occurring on or after that date. The act was signed by the Governor on May 4, 2011.
• Residential property (and vacant land) will thus be taxed at ¾ of one percent (instead of ½ of one percent).
• Residential property that is conveyed for more than $800,000 (the so-called "mansion tax") will be taxed at ¾ of one percent up to that amount, and then at 1 and ¼ of one percent on the excess.
• Nonresidential property that is currently taxed at 1% will instead be taxed at 1 and ¼ of one percent.
• Conveyances to a financial institution of property on which mortgage payments have been delinquent for not less than six months will be taxed at ¾ of one percent, instead of ½ of one percent.
• Section 103 of the bill provides that the revenue attributable to the increase in the state tax rate shall be deposited by the Department of Revenue Services into a municipal revenue sharing account, with funds used for municipal grants.

Note: The legislature did not enact a bill that would have allowed municipalities to impose a "buyer's tax" on the conveyance of real property.

Foreclosures
House Bill 6351: This bill extends the sunset date of the foreclosure mediation program from July 1, 2012 to July 1, 2014. The bill also extends the program to include the owners of property occupied by a religious organization. Other changes made to the mediation program include new restrictions on the making of motions and new documentation requirements.

Other matters covered by the bill include the protections afforded to certain tenants of foreclosed homes; the registration requirements imposed on those who bring foreclosure actions and on those in whom title vests following a foreclosure action; and overtime requirements applicable to certain mortgage loan originators.

Recording Fees
Public Act 48: Section 134 of this act amends Conn. Gen. Stat. § 7-34a to make permanent the ten dollar surcharge on recordings that was first established in 2009. That surcharge was due to expire on July 1, 2011. Revenue raised by the surcharge is to be dedicated to the uses set forth in Conn. Gen. Stat. § 4-66aa, as amended by Section 133 of the bill. The act has not yet been signed by the Governor.

FIRST TIME HOME SELLER TIPS!

3 Tips for the First-Time Home Seller

  ^[1]RISMedia, June 14, 2011—Today’s buyer-take-all bonanza is a boon for fence-sitters and buyers with great credit and deep pockets. But sellers are steeling themselves to new realities that include paying (rather than making) money at the closing table, providing extras to sweeten the deal, and spending more time and cash making the home camera-ready.

For first-time sellers who have never been through the process before, it’s a different world. One where the value of the house isn’t measured in the profit made on the sale, but by the enjoyment the owners had from living in the home.

UPSIDE DOWN OWNERS

DAILY REAL ESTATE NEWS June 9, 2011

40% of underwater borrowers took cash out of homes CoreLogic: Owners with home equity loans more than twice as likely to be upside down By Inman News Inman News™ Share This Homeowners with home equity loans are more than twice as likely to be "underwater" as those who didn't take cash out of their homes, according to statistics compiled by real estate and loan data aggregator CoreLogic. CoreLogic estimates that at the end of March, 22.7 percent of homeowners with mortgages -- about 10.9 million borrowers -- owed more on their mortgage than their home was worth. That's down slightly from an estimated 11.1 million underwater borrowers at the end of December. Falling home prices can put borrowers who have little equity in their homes underwater. By allowing homeowners to convert equity they have in their homes into cash, home equity loans reduce the cushion borrowers have against price declines. CoreLogic said that 38 percent of borrowers with home equity loans were underwater at the end of March, compared with 18 percent of homeowners who had no home equity loan. More than 40 percent of all underwater homeowners (4.5 million) have home equity loans, CoreLogic said. As might be expected, CoreLogic found that the presence of a home equity loan also increased the amount of negative equity. Underwater homeowners who had taken out home equity loans owed $83,000 more than their home was worth, on average, compared with $52,000 for those who hadn't taken cash out of their home. Past studies have shown that the higher a borrower's combined loan-to-value ratio (CLTV), the more likely they are to stop making payments on their loan. In many cases, borrowers will opt for a "strategic default" -- not because they can't afford the monthly payments, but because they don't believe their home will regain its value anytime soon. CoreLogic found that borrowers with home equity loans were slightly more likely to default at "moderate" levels of negative equity, up to 115 percent CLTV. Beyond that point, the relationship reverses, and default rates were slightly higher among homeowners without home equity loans. Among all underwater borrowers nationwide, the average amount of negative equity was $65,000. In states with higher-cost housing, the average was considerably higher. In New York, underwater borrowers had an average of $129,000 in negative equity, followed by Massachusetts ($120,000), Connecticut ($111,000), Hawaii ($98,000), and California ($93,000). At the other end of the scale, underwater borrowers in Ohio had the lowest negative equity -- $31,000, on average -- followed by Indiana ($34,000), and Minnesota ($38,000). Nevada led all states in the proportion of underwater borrowers -- 63 percent of Silver State homeowners with mortgages owed more than their home was worth -- followed by Arizona (50 percent), Florida (46 percent), Michigan (36 percent), and California (31 percent). At the metro level, Las Vegas led the nation, with 66 percent of mortgaged properties underwater, followed by Stockton (56 percent), Phoenix and Modesto (55 percent), and Reno (54 percent). Metropolitan markets located outside of the five states with the highest negative equity shares include Greeley, Colo. (38 percent); Boise (36 percent); and Atlanta (35 percent).

INTEREST RATES MAKE IT A GREAT TIME TO BUY!

Mortgage rates ease again to new 2011 low

Demand for purchase loans up slightly from year ago
By Inman News

Rates on fixed-rate mortgages dropped slightly this week, hitting new lows for the year, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey.
While lower rates often trigger applications for refinancing, purchase loan demand also picked up last week and was slightly stronger a year ago, a separate survey by the Mortgage Bankers Association showed.
Freddie Mac's survey showed rates on 30-year fixed-rate mortgage averaged 4.6 percent with an average 0.7 point for the week ending May 26, down from 4.61 percent last week and 4.84 percent a year ago.
Rates on 30-year fixed-rate mortgages hit an all-time low in Freddie Mac records dating to 1971 of 4.17 percent during the week ending Nov. 11, 2010, before climbing to a 2011 high of 5.05 percent in February.
Rates on 15-year fixed rate mortgages averaged 3.78 percent with an average 0.7 point, down from 3.8 percent last week and 4.21 percent a year ago. Rates on 15-year mortgages hit an all-time low in records dating back to 1991 of 3.57 percent in November.
For 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans, rates averaged 3.41 percent with an average 0.5 point, down from 3.48 percent last week and 3.97 percent a year ago. The 5-year ARM hit a low in records dating to 2005 of 3.25 percent in November.
Rates on 1-year Treasury-indexed ARM loans averaged 3.11 percent with an average 0.5 point, down from 3.15 percent last week and 3.95 percent a year ago.
Looking back a week, the MBA's weekly Mortgage Applications Survey showed applications for purchase loans climbed a seasonally adjusted 1.5 percent during the week ending May 20 compared to the week before. Purchase loan applications were up 3.1 percent from the same time a year ago.
Demand for refinancings was also up slightly, to the highest level since Dec. 10. Requests for refinancings accounted for 66.8 percent of all mortgage loan applications, the highest share since Jan. 28.
In a May 18 forecast MBA economists said they expect rates on 30-year fixed-rate mortgages to rise to an average of 5.5 percent during the final three months of this year, and continue a gradual rise to an average of 5.9 percent during the fourth quarter of 2012.

PAY ATTENTION TO YOUR NEIGHBORS!

TAKE ADVANTAGE OF NICE WEATHER FOR EXTERIOR REPAIRS

Now Is the Time to Get Your Home’s Exterior in Tip-top Condition

RISMEDIA, March 31, 2011—According to DIY shopping and support website Trades Supermarket, the improved spring weather means more than giving the lawn a trim for homeowners; it signifies the time to undertake necessary repair and maintenance checks, not only to make sure

ENERGY HOME LOANS

latimes.com/business/realestate/la-fi-harney-20110501,0,6800872.story

latimes.com

FHA and Fannie Mae offer loans for home energy improvements

The FHA's PowerSaver program allows eligible owners to borrow up to $25,000 at fixed rates for as long as 20 years to finance energy-conservation retrofits. Fannie Mae has an energy-improvement mortgage add-on program.

By Kenneth R. Harney
May 1, 2011
Reporting from Washington

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If you've been looking for a way to pay for energy improvements to your house, two little-publicized new mortgage programs could provide the cash you need.
Both the Federal Housing Administration and mortgage investor Fannie Mae recently have launched options in the energy conservation arena. Here's a quick overview, with some pros and cons:
The FHA's PowerSaver program allows eligible owners to borrow up to $25,000 at fixed rates between 5% and 7% for as long as 20 years to finance high-efficiency windows and doors, heating and ventilating systems, solar panels, geothermal systems, insulation and duct sealing, among other retrofits.
Although PowerSaver is officially a pilot program, Shaun Donovan, secretary of Housing and Urban Development, estimates that 30,000 such loans will be closed in the next two years. It eventually could become a major national program for residential energy upgrades, with total loans extending into the millions, he said.
One important element in the program is energy audits. Although they won't be mandatory, most participating lenders are expected to encourage owners to sign up for an energy efficiency analysis by a certified specialist. The audit should pinpoint where your house is leaky or otherwise inefficient in energy use, and should recommend the specific types of upgrades or additions that could help cut your bills and reduce greenhouse emissions.
The FHA will insure loans to cover the improvements up to the $25,000 maximum under the following guidelines:
•The house must be your principal residence, detached and single-family only. No rentals, no investor homes, no second homes.
•You'll need to demonstrate that you are a solid credit risk. Minimum FICO credit scores of 660 are required, plus your total household monthly debt-to-income ratio cannot exceed 45%.
•Houses with negative equity will not qualify. You'll need some level of equity in the property; there is no mandatory minimum stake, but the combined primary mortgage debt plus the PowerSaver second lien cannot exceed 100% of the appraised market value of the house. You could, for example, have a 10% equity position in a $200,000 home, and still qualify for up to $20,000 in a PowerSaver.
•Lenders are likely to take an extra hard look at all your income and asset documentation because, unlike other FHA-insured mortgages, PowerSaver will cover only 90% of the lender's loss or insurance claim in the event of a default.
Eighteen lenders around the country have signed up so far to participate, including giant Quicken Loans — a Top 10 national mortgage originator — and local players such as California-based Sun West Mortgage, Seattle's HomeStreet Bank, the Bank of Colorado, Stonegate Mortgage in the Midwest, Pennsylvania-based AFC First Financial Corp. and the University of Virginia Community Credit Union. A spokesman for Quicken Loans said the company hoped to offer PowerSaver in as many as 34 states during the pilot period.
Some pros and cons of PowerSaver: The biggest plus is its low fixed interest rate and long term — especially in comparison with most homeowners' alternative options such as bank home equity loans and lines of credit, which typically cost more and may have less favorable payback terms.
The main potential drawbacks center on the program permitting total household mortgage debt loads of up to 100% of market value. Some borrowers could encounter payment problems if they experience even slight income declines. If property values in the area decrease, the loans could put owners into negative equity territory.
Fannie Mae's "energy improvement" mortgage add-on program is significantly different from the FHA's. Rather than a separate loan to finance the energy retrofits, Fannie folds the cost of the improvements — capped at up to 10% of the estimated market value of the home following the energy-efficiency enhancements — into the mortgage amount itself.
In effect, Fannie's program, which is available through participating lenders nationwide, allows you to buy an existing house and improve its energy usage significantly with one mortgage at current market rates. Most single-family properties are eligible for the program, except for manufactured houses and cooperative units.
Be aware that Fannie requires an audit by a certified Home Energy Rating Systems expert upfront to justify the proposed modifications to the house as truly cost-efficient. The audit must be paid for by the borrower, but Fannie will credit an extra $250 through the lenders to partially defray this expense

EXPENSES TO CONSIDER WHEN BUYING A HOME

 How to Manage Unexpected Home Expenses

  ^[1]RISMEDIA, April 15, 2011—(MCT)—Homes are more affordable these days, the selection is abundant, and interest rates are still fairly low. For some people, it could well be a great time to buy.

But as too many struggling borrowers now realize, the cost of owning a home is hardly limited to paying the mortgage. There are a host of other checkbook-sapping details—both recognizable and unexpected—that can get overlooked in the excitement of buying a house, especially if it’s your first.

Foreclosure: Buying Tips

What to Watch Out for When Buying a Foreclosure: Help Your Clients Know Which to Buy…and Which to Walk By

  ^[1]RISMEDIA, April 7, 2011—The economy is improving overall and, as a result, some bright spots are showing up in the real-estate market. However, the foreclosure spike, which began around the same time the recession did, isn’t a distant memory just yet. In many areas, foreclosures are still happening; in some areas, those numbers have increased. Surprisingly, foreclosures have even encroached into some key cities that were formerly thought to be unshakable real-estate markets — like San Francisco, where foreclosures actually rose in 2010 (including in luxury neighborhoods like Pacific Heights, where a condo that sold in 2007 for $2.3 million recently sold for $1.44 million as a foreclosure).

BUYER'S MARKET!!

Buyer’s Market Spurs Confidence in Young Professionals and Affluent Homeowners

  ^[1]RISMEDIA, April 4, 2011—As the cold temperatures become a distant memory, and the spring selling season gains momentum, consumers have come to agree on one thing—now’s a good time to get off the fence and into the real estate market. This is the overall theme in the latest American Express Spending and Saving Tracker survey, a monthly survey that tracks the spending and saving habits of consumers in order to get an indication of what’s happening in the market. “This month’s Spending and Saving Tracker provided an up-to-date look at various consumer trends and gave us the opportunity to assess how consumers are feeling about the current market in addition to gauging homeowner confidence,” says Leah Gerstner, vice president of public affairs at American Express.

NEED FLOOD INSURANCE?

How Well Are You Insured Against Flooding?

  ^[1]RISMEDIA, March 23, 2011—(MCT)—The frightening images of Japan’s tsunami wiping out homes, roads and entire cities are vivid reminders that a natural disaster can strike at any time.

And whether it’s an earthquake, a wildfire or flooding, being covered against severe damage to your home or business is essential.
Across the United States, flooding is the No. 1 natural disaster, according to the Federal Emergency Management Agency.

VACANT HOMES CAN BE COSTLY

 RISMEDIA, March 19, 2011—(MCT)—More and more houses sit unoccupied these days, left behind by their owners in this still-tough economic climate. In 2010′s fourth quarter, the Census Bureau reports 12.1% of all U.S. residences, or 18,394,000 homes, were vacant. Record foreclosures

HELPFUL INFORMATION FOR FIRST TIME HOMEBUYERS!

First-Time Home Buyers Prepare for Best Buyer’s Market in Recent History Posted By susanne On March 17, 2011 @ 4:10 pm In Luxury Real Estate,Real Estate,Real Estate Information,Real Estate News,Real Estate Trends,Today's Marketplace,Today's Top Story,Today's Top Story - Consumer | Comments Disabled

^[1]RISMEDIA, March 18, 2011—While affordable housing prices, ample inventories, and historically low interest rates signal ‘buyer’s market’ for investors or move-up buyers in many U.S. markets, inexperienced first-time buyers may not know if the time is right to make a move into real estate.
“It’s not about timing the market. It’s about time in the market,” says Steve Berkowitz, chief executive officer at Move, Inc., a leader in online real estate. “Once you know how long you expect to own a home, look at the historical value performance of properties in the neighborhood.

THE NEED FOR HOMEOWNERSHIP!

Homeownership Essential to Job Growth and Economy, Say REALTORS®

Posted By susanne On March 10, 2011 @ 5:05 pm In Home Owner News,Real Estate,Real Estate Information,Real Estate News,Real Estate Trends,Today's Marketplace,Today's Top Story,Today's Top Story - Consumer | Comments Disabled

^[1]RISMEDIA, March 11, 2011—Testifying before a Senate panel, National Association of REALTORS® President Ron Phipps recently told members of Congress that sustainable homeownership must be the goal when considering future federal housing policies.
“As the leading advocate for homeownership, NAR wants to ensure public policies that promote responsible, sustainable homeownership and that any changes to current programs and incentives don’t jeopardize a housing and economic recovery,” Phipps told the Senate Banking, Housing and Urban Affairs Committee.

OVERCOMING HOME SALE IMPEDIMENTS

For Your Clients: Common Impediments to Selling and How to Overcome Them

  ^[1]RISMEDIA, February 1, 2011—Even with the economy improving overall, it would be false to say the real estate market is booming, especially for home sellers. Unfortunately, negative financial headlines are causing some potential sellers to needlessly hide in fear. For many, it truly is not the ideal time to put their home on the market. But, even in a less-than-robust economy, you might be in the right—perhaps even the ideal—situation to sell. Unfortunately, some common impediments may make you run from doing so. Here are a few of those mental roadblocks, and how to overcome them:

DO'S AND DON'TS ON GETTING READY TO SELL!

Pre-Sale Renovation: Home Seller Do’s and Don’ts

  ^[1]RISMEDIA, January 25, 2011—You’ve probably seen those depressingly cheery home-themed TV shows: a couple needs to sell their house, they have an outdated kitchen, and a designer comes in and proceeds to convince them to renovate the kitchen into a stainless-steel-clad shrine to culinary greatness—for tens of thousands of dollars. In an ideal real estate market, that would add value, but in today’s market, expensive pre-sale renovations, for the most part, aren’t worth it.

THE FIGHT FOR MORTGAGE TAX BREAKS

Housing Industry Readies Mortgage Tax Break Fight

 RISMEDIA, January 18, 2011—(MCT)—The housing industry is girding for a fight in Congress to protect the mortgage interest deduction, along with a number of other housing-related tax breaks. The National Association of Home Builders is putting a high priority on lobbying in favor of

Home Health Tips

Around the Home: How to Clean Your Fruits and Vegetables

^[1]RISMEDIA, January 15, 2011—(MCT)—Recent reports of illness caused by fresh produce have upped awareness on the need to wash before eating. Each of the basic rules from the U.S. Department of Agriculture is “equally important,” says Robert Buchwald, environmental health

2011 MARKET PREDICTIONS

2011 Housing Market to See Stable Pricing, Increased Mortgage Rates and Escalating Foreclosures

 RISMEDIA, January 11, 2011—The federal tax credit extension, coupled with an uptick in seasonal buying, helped keep the real estate market on its tracks in the first two quarters of 2010, according to RE/MAX of New England. Single-family home sales across New England showed the

DON'T MISS THE OPPORTUNITY TO BUY NOW!

What Home Buyers Can Expect from the Real Estate Market in 2011

  ^[1]RISMEDIA, January 7, 2011—(MCT)—The drumbeat from the housing community was loud and clear in 2010: There was never a better time to buy a home. For most of the past 12 months, home prices tumbled, mortgage rates ticked downward, and the inventory of available traditional and distressed homes was plentiful.

But would-be buyers, even if they were able to overcome job worries, found that the hurdles to obtain a loan were formidable. They remained on the sidelines, and housing analysts opined that if the broader economy improved and unemployment fell, pent-up demand would be unleashed, credit guidelines would ease and home sales would improve.

FRESHEN UP WITH FRESH PAINT!!

  ^[1]RISMEDIA, January 4, 2011—Individual style, mixed with budget-conscious decorating will drive 2011 paint color trends, according to Debbie Zimmer, paint and color expert at the Paint Quality Institute.

“There’s no escaping the state of the economy, even for homeowners who want to beautify their homes,” says Zimmer. “Rather than diving into large-scale renovation projects, in the coming year, consumers will search for inexpensive ways to freshen and update their homes. Many will conclude that painting is the perfect solution.”