3 Ways Old Man Winter Can Rob You

With Old Man Winter getting ready to grasp your home in his icy grip for the next few months, it's important to inspect your home and take steps to winterize it while the sun still shines. For some, these winterization steps are jobs you can handle yourself; for others, it might be best to call in a contractor. Here are the three most crucial areas you need to inspect and protect: Wood siding: If you have areas of your home with peeling paint, it's imperative that you get the trim, fascia and siding covered with paint before the winter freeze sets in. Pete Peterson, counter salesman for Reno Paint Mart of Nevada, cautions homeowners about letting wood go exposed for another season before repainting. "Wood acts like a wick, and water vapor travels through the wood," Peterson says. "It will form ice crystals and separate the paint from the wood." Strip peeling paint with a scraper or power washer and paint your house before the temperature drops drastically. Cold weather significantly lengthens the paint's curing and drying time, and if the paint doesn't sufficiently cure due to cold weather, the water in the paint can freeze and separate from the solids in the paint. Even brands of exterior paint designed for colder-weather applications need to be applied while temperatures are warm enough to allow the paint to properly cure. Looking for certified painting specialists? Let us help Roof and gutters: Inspecting your roof is a crucial step if you live in an area where snow builds up in the winter. Leaves and branches that stack up in valleys and crooks of the roofline hinder proper snowmelt. You also want to ensure your gutters and downspouts are free of fall debris such as leaves and branches that can inhibit their efficiency. Lastly, check all penetrations in the roofline for signs of loose or cracked caulking or damaged flashing and replace as necessary. Heating system: Your heater is your lifeline to a cozy winter. Changing or cleaning the filter for the HVAC system is an obvious first step. Second, change out an old mercury-style thermostat for a newer digital model that has programmable features. You can save a great deal of money over time by having the thermostat programmed to shut off while you are away. Lastly, have a licensed HVAC technician inspect the system for air leaks and also to clean the duct work. Consider having the technician wrap the ductwork with insulation to increase the system's efficiency. Following these three steps can help you beat Old Man Winter and prevent expensive home repairs down the road.

Top 10 Hottest Housing Markets Predictions for 2014

For the upcoming year, Zillow has predicted that ten markets will soar above all the rest, and we are surprised and pleased to see that not all ten happen to be on the coasts, unlike other lists we’ve already seen generated for 2014.

In addition to outlining the 2014 housing market predictions, Zillow predicts home values will rise by 3.0 percent, mortgages will be easier to get, and rates will reach 5.0 percent before the end of the year. Additionally, they are predicting that home ownership rates will fall to their lowest point in nearly two decades.

• 10. Boston, MA
• 9. Portland, OR
• 8. San Diego, CA
• 7. Jacksonville, FL
• 6. Raleigh, NC
• 5. Miami, FL
• 4. San Jose, CA
• 3. Austin, TX
• 2. Seattle, WA
• 1. Salt Lake City, UT

Home values will rise nationally

Dr. Stan Humphries, Zillow chief economist notes that “In 2013, home values rose rapidly – about 5 percent nationwide and more than 20 percent in some local markets. These gains, while beneficial in many ways, were also unsustainable and well above historic norms for healthy, balanced markets.”

“This year,” Dr. Humphries added, “home value gains will slow down significantly because of higher mortgage rates, more expensive home prices, and more supply created by fewer underwater homeowners and more new construction. For buyers, this is welcome news, especially for those in markets where bidding wars were becoming the norm and bubble-like conditions were starting to emerge.”

Homeownership levels will fall

Despite values rising, Dr. Humphries notes that homeownership will likely hit 20 year lows in 2014. “The housing bubble was fueled by easy lending standards and irrational expectations of home value appreciation, but it put a historically high number of American households – seven out of ten – in a home, if only temporarily.”

“That homeownership level proved unsustainable and during the housing recession and recovery the homeownership rate has floated back down to a more normal level, and we expect it to break 65% for the first time since the mid-1990s,” Dr. Humphries concluded.

2014 Housing Market Predictions

1. Housing prices rose quickly

According to realtor.com research, the national median listing price was $179,900 in January 2012 and rose to $180,000 by December 2012, and the pace of price appreciation accelerated quickly over the year to reach a median list price of $199,500 by September 2013.
In 2014, economists agree that home prices will continue to rise, which homeowners that are still underwater desperately need, but no extreme surge is expected, so watch for a healthy pace of improvement to continue in the coming year.

2. Mortgage rates remained low

“We expected mortgage rates to rise in 2013, and they started to increase in the late spring, but they’re still very affordable when you look at rates on a historical basis,” Yun said. “They just aren’t at the super-low point we saw earlier.” According to Freddie Mac, 30-year fixed-rate loans were as low as 3.45 percent in December 2012 and rose to 4.49 in September 2013.
In 2014, some believe rates could dip, some believe they will jump, but the truth is that no one knows, because there are so many moving pieces that could shift the ultimate outcome, but based on 2013, we predict that they will remain low but will, in fact, increase slightly.

3. Bidding wars

The combination of rising prices, low mortgage rates and low inventory led to a sense of urgency among buyers and the return of bidding wars, said Don Frommeyer, president of the National Association of Mortgage Brokers. According to realtor.com research, inventory in 2012 reached a high of 2,083,710 homes on the market, then steadily declined to a low of 1,583,497 homes in February 2013. At the end of September 2013, 2,210,000 homes were for sale, approximately a five-month supply.
In 2014, bidding wars will become the norm in many cities, but not nationally. Smaller cities or areas with lower demand will not necessarily see bidding wars, particularly in the areas most hard hit by the housing crash. Consider this a San Francisco issue, not a Pierre, South Dakota issue.

4. Housing affordability

In one statement, Dr. Yun said, “Housing affordability has come down a little this year because of double-digit home value appreciation and the fact that income isn’t rising in comparable amounts. Rising mortgage rates, even though they’re still low, also have an impact. While affordability right now is at a five-year low, it’s still the fifth highest for the past 30 years.”
Later, he noted that a decline was expected. “Affordability has fallen to a five-year low as home price increases easily outpaced income growth,” he said. “Expected rising mortgage interest rates will further lower affordability in upcoming months. Next month we may see some delays associated with the government shutdown.”
In 2014, we predict that housing affordability will decrease, in fact, it will diminish in specific areas like San Jose or Stamford. Overall, housing will remain affordable, and may even inspire sales, but this metric will be inconsistent across the nation.

5. Cash buyers

Dr. Yun said a continuing surprise is that about one-third of all home purchases were made with cash, a market share that has been consistent for the past three years. While some of these cash buyers are from overseas and some are institutional investors, others are “mom and pop” investors who have had trouble getting financing.
“Even some owner-occupant buyers are cash buyers because of the excessively tight underwriting standards for loans,” Yun said. “Some people are getting help from relatives to buy, and then they plan to take out a home equity loan later to repay them.”
In 2014, cash buyers will remain around one in three, and not just for investment reasons, but because, as Dr. Yun mentioned, lending remains tight. Underwriting may loosen up a bit in 2014, but as an overreaction to the housing crash, it won’t be enough to get buyer behavior to a pre-recession norm this year.

7. Rents on the rise

“Right now we’re seeing replenishment of renters who want to buy homes,” Barry Habib, co-owner and chief market strategist for Residential Finance Corp., said. “At the peak in 2002, nearly 70 percent of people owned homes and 30 percent were renters; now 65 percent of people are homeowners and 35 percent rent. Not only are rents rising faster than home prices in many markets, but there’s pent-up demand from people who don’t want to live at home with their parents and who want to buy a home.”
In 2014, all economists agree that rents will increase, anywhere from 3.0 to 5.0 percent nationally as vacancy rates remain at their best levels in years. It will continue to be a landlord’s market.

So will 2014 be the year of recovery?

On all accounts, housing will continue improving, on that we all agree, but expect to see a steady pace of improvement in the coming year, not a spike – consider it more of the same. Home prices, sales, rents, and mortgage rates will all continue increasing steadily, and while 2014 will not mark a complete recovery to pre-recession norms, this future year does hold a healthy pace of improvement in store.

Is Your Home Ready For Winter

1) Furnace Inspection

• Call an HVAC professional to inspect your furnace and clean ducts.
• Stock up on furnace filters and change them monthly.
• Consider switching out your thermostat for a programmable thermostat.
• If your home is heated by a hot-water radiator, bleed the valves by opening them slightly and when water appears, close them.
• Remove all flammable material from the area surrounding your furnace.

2) Get the Fireplace Ready

• Cap or screen the top of the chimney to keep out rodents and birds.
• If the chimney hasn't been cleaned for a while, call a chimney sweep to remove soot and creosote.
• Buy firewood or chop wood. Store it in a dry place away from the exterior of your home.
• Inspect the fireplace damper for proper opening and closing.
• Check the mortar between bricks and tuckpoint, if necessary.

3) Check the Exterior, Doors and Windows

• Inspect exterior for crevice cracks and exposed entry points around pipes; seal them.
• Use weatherstripping around doors to prevent cold air from entering the home and caulk windows.
• Replace cracked glass in windows and, if you end up replacing the entire window, prime and paint exposed wood.
• If your home has a basement, consider protecting its window wells by covering them with plastic shields.
• Switch out summer screens with glass replacements from storage. If you have storm windows, install them.

4) Inspect Roof, Gutters & Downspouts

• If your weather temperature will fall below 32 degrees in the winter, adding extra insulation to the attic will prevent warm air from creeping to your roof and causing ice dams.
• Check flashing to ensure water cannot enter the home.
• Replace worn roof shingles or tiles.
• Clean out the gutters and use a hose to spray water down the downspouts to clear away debris.
• Consider installing leaf guards on the gutters or extensions on the downspouts to direct water away from the home.

5) Service Weather-Specific Equipment

• Drain gas from lawnmowers.
• Service or tune-up snow blowers.
• Replace worn rakes and snow shovels.
• Clean, dry and store summer gardening equipment.
• Sharpen ice choppers and buy bags of ice-melt / sand.

6) Check Foundations

• Rake away all debris and edible vegetation from the foundation.
• Seal up entry points to keep small animals from crawling under the house.
• Tuckpoint or seal foundation cracks. Mice can slip through space as thin as a dime.
• Inspect sill plates for dry rot or pest infestation.
• Secure crawlspace entrances.

7) Install Smoke and Carbon Monoxide Detectors

• Some cities require a smoke detector in every room.
• Buy extra smoke detector batteries and change them when daylight savings ends.
• Install a carbon monoxide detector near your furnace and / or water heater.
• Test smoke and carbon monoxide detectors to make sure they work.
• Buy a fire extinguisher or replace an extinguisher older than 10 years.

8) Prevent Plumbing Freezes

• Locate your water main in the event you need to shut it off in an emergency.
• Drain all garden hoses.
• Insulate exposed plumbing pipes.
• Drain air conditioner pipes and, if your AC has a water shut-off valve, turn it off.
• If you go on vacation, leave the heat on, set to at least 55 degrees.

9) Prepare Landscaping & Outdoor Surfaces

• Trim trees if branches hang too close to the house or electrical wires.
• Ask a gardener when your trees should be pruned to prevent winter injury.
• Plant spring flower bulbs and lift bulbs that cannot winter over such as dahlias in areas where the ground freezes.
• Seal driveways, brick patios and wood decks.
• Don't automatically remove dead vegetation from gardens as some provide attractive scenery in an otherwise dreary, snow-drenched yard.
• Move sensitive potted plants indoors or to a sheltered area.

10) Prepare an Emergency Kit

• Buy indoor candles and matches / lighter for use during a power shortage.
• Find the phone numbers for your utility companies and 
• tape them near your phone or inside the phone book.
• Buy a battery back-up to protect your computer and sensitive electronic equipment.
• Store extra bottled water and non-perishable food supplies (including pet food, if you have a pet), blankets and a first-aid kit in a dry and easy-to-access location.
• Prepare an evacuation plan in the event of an emergency.

Top 10 Tips for Selling Your Home During the Holidays

Attract homebuyers even during the holidays with these useful tips!

The holiday season from November through January is often considered the worst time to put a home on the market. While the thought of selling your home during the winter months may dampen your holiday spirit, the season does have its advantages: holiday buyers tend to be more serious and competition is less fierce with fewer homes being actively marketed. First, decide if you really need to sell. Really. Once you've committed to the challenge, don your gay apparel and follow these tips.

1. Deck the halls, but don’t go overboard.
   Homes often look their best during the holidays, but sellers should be careful not to overdo it on the decor. Adornments that are too large or too many can crowd your home and distract buyers. Also, avoid offending buyers by opting for general fall and winter decorations rather than items with religious themes.
   
2. Hire a reliable real estate agent.
   That means someone who will work hard for you and won't disappear during Thanksgiving, Christmas or New Year's. Ask your friends and family if they can recommend a listing agent who will go above and beyond to get your home sold. This will ease your stress and give you more time to enjoy the season.
   
3. Seek out motivated buyers.
   Anyone house hunting during the holidays must have a good reason for doing so. Work with your agent to target buyers on a deadline, including people relocating for jobs in your area, investors on tax deadlines, college students and staff, and military personnel, if you live near a military base.
   
4. Price it to sell.
   No matter what time of year, a home that’s priced low for the market will make buyers feel merry. Rather than gradually making small price reductions, many real estate agents advise sellers to slash their prices before putting a home on the market.
   
5. 
   Make curb appeal a top priority.
   When autumn rolls around and the trees start to lose their leaves, maintaining the exterior of your home becomes even more important. Bare trees equal a more exposed home, so touch up the paint, clean the gutters and spruce up the yard. Keep buyers’ safety in mind as well by making sure stairs and walkways are free of snow, ice and leaves.
   
6. Take top-notch real estate photos.
   When the weather outside is frightful, homebuyers are likely to start their house hunt from the comfort of their homes by browsing listings on the Internet. Make a good first impression by offering lots of flattering, high-quality photos of your home. If possible, have a summer or spring photo of your home available so buyers can see how it looks year-round.
   
7. Create a video tour for the Web.
   You'll get less foot traffic during the holidays thanks to inclement weather and vacation plans. But shooting a video tour and posting it on the Web may attract house hunters who don't have time to physically see your home or would rather not drive in a snowstorm.
   
8. Give house hunters a place to escape from the cold.
   Make your home feel cozy and inviting during showings by cranking up the heat, playing soft classical music and offering homemade holiday treats. When you encourage buyers to spend more time in your home, you also give them more time to admire its best features.
   
9. Offer holiday cheer in the form of financing.
   Bah, humbug! Lenders are scrooges these days, but if you've got the means, then why not offer a home loan to a serious buyer? You could get a good rate of return on your money.
   
10. 
    Relax — the new year is just around the corner.
    The holidays are stressful enough with gifts to buy, dinners to prepare and relatives to entertain. Take a moment to remind yourself that if you don't sell now, there's always next year, which, luckily, is only a few days away.
    

11 Reasons to List During the Holidays

11. By selling now, you may have an opportunity to be a non-contingent buyer during the Spring, when many more houses are on the market for less money! This will allow you to sell high and buy low.

10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year.

9. Even though your house will be on the market, you still have the option to restrict showings during the six or seven days around the Holidays.

8. January is traditionally the month for employees to begin new jobs. Since transfers cannot wait until Spring to buy, you need to be on the market during the Holidays to capture the market.

7. Some people must buy before the end of the year for tax reasons.

6. Buyers have more time to look for a home during the Holidays than they do during a work week.

5. Buyers are more emotional during the Holidays, so they are more likely to pay your price.

4. Houses show better when decorated for the Holidays.

3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home. Less demand means more money for you.

2. Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you.

And the number one reason why your seller should list during the Holidays …

1. People who look for homes during the Holidays are more serious buyers!

Dinner Table Chat!

Looking for a fun way to add conversation to your Thanksgiving table?  Check out these conversation starters!  Happy Thanksgiving!

Thanksgiving Food!

Mini Pumpkin Pies

Ingredients

• 1 package refrigerated pie crusts
• 1 can (15 oz) pumpkin
• 1 can (14 oz) sweetened condensed milk
• 2 eggs
• 1 tablespoon Pumpkin Pie Spice

Preheat oven to 425°F.

Mix pumpkin, sweetened condensed milk, eggs and pumpkin pie spice in large bowl until smooth. Pour into pastry lined muffin cups to the top. Top with a pastry leaf if desired.

 

Sweet Potato Casserole

Ingredients:

• 2 lbs sweet potatoes (about 5 medium), peeled
• 1/2 cup golden raisins
• 1 tsp agave
• 1/4 tsp ground cinnamon
• pinch nutmeg
• pinch allspice
• 8 oz can unsweetened crushed pineapple, drained
• 2 tbsp chopped pecans
• 1 cup mini marshmallows

Directions:

Cut sweet potatoes into large chunks; boil potatoes in a large pot covered with water until potatoes are soft if pierced with a fork. Drain and return to the pot.

Preheat oven to 400°.

Mash the sweet potatoes and add in raisins, agave, spices and pineapple

 

 

 

 

 

 

 

Homemade Cranberry Sauce

Ingredients

• 1 12-ounce bag fresh cranberries, picked and rinsed
• 
2 apples, peeled and diced

• 1/2 cup brown sugar
• 
1/2 cup orange juice

• 1/4 teaspoon allspice
• 
pinch salt

• 1 orange
  

Instructions

1. Stir together cranberries, apples, brown sugar, orange juice, allspice and salt in a large saucepan. Place over medium heat and bring to a simmer, stirring often. Continue cooking, stirring often until the cranberries have popped and the mixture thickens, about 5 minutes. Remove from heat.
2. Meanwhile, zest orange. To supreme the orange: Cut skin and white pith off the orange. Cut between membranes to remove individual segments, working all the way around the orange. Gently stir the zest and orange segments into the compote. Discard orange membrane and peel. Cool compote completely, about 2 hours.
   

Different Loan Programs:

VA loan

A VA loan offers the following benefits to service members looking to purchase or refinance a home:

• Low- or no-down-payment options
• Financing of VA funding fee¹
• Unlimited seller contribution to buyer's closing costs
• Gift funds allowed
• Allows for limited income and credit history
  

Recommended For
A VA loan might be right for you if you are:

• A retired veteran, active duty military, National Guard or reservist buying or refinancing a home
• Would like to make a low down payment
• Are interested in 100% financing¹
• Lack credit history
• Have income limitations
  
  

Affordable Housing loans

Affordable Housing loans offer first-time home buyers, buyers with limited credit history, and buyers with lower incomes the ability to own their own homes.

Benefits

Affordable Housing loans offer home buyers the following benefits:

• Low down payment
• Alternate credit histories acceptable
• Down payment can be combined with gifts or grants
  

Recommended For

An Affordable Housing loan may be right for you if you:

• Are a first-time home buyer
• Have limited employment history
• Have limited or alternative credit history
• Are concerned about qualifying income or earn less than the median income
  
  
  Federal Housing Administration (FHA)

Federal Housing Administration (FHA) loans are offered in conjunction with the U.S. Government to help home buyers overcome many of the obstacles to owning their own homes.

Benefits

FHA loans offer home buyers the following benefits:

• Low down payment
• Closing costs can be funded by gifts or grants
• No cash reserves needed
• Non-occupying co-borrowers are allowed
• Loan may be fully assumable depending on loan program
  

Recommended For

An FHA loan may be right for you if you:

• Are a first-time homebuyer
• Lack a sufficient down payment, or plan to use gift or grant monies for down payment assistance
• Lack credit history
• Are concerned about qualifying income
  

Property Types

The following property types are eligible for an FHA loan:

• Single family homes
• Townhomes
• Condos
• Doublewide manufactured homes on permanent foundations
  

Rural Housing loans

Rural Housing loans are designed to assist borrowers in qualifying rural areas to become homeowners. These loans offer a variety of unique and attractive features for qualifying borrowers.

Benefits

Rural Housing loans offer the following features to home owners:

• 102% financing options
• First-time home buyers and previous homeowners eligible
  

Recommended For
A Rural Housing loan may be right for you if you are:

• Purchasing a residence located in a qualifying rural area that may be attached to limited multiple acreage
• Concerned about qualifying income*
• Concerned about funding a down payment
  

Property Types

The following types of property are eligible for Rural Housing Loans:

• Single family homes
• Townhomes
• Condos
• Doublewide manufactured homes on permanent foundations
  

What Are My Loan Options?

The two most common types of mortgages are fixed-rate mortgages and adjustable-rate mortgages, known as ARMs.

A fixed-rated mortgage comes with an interest rate that remains the same for the life of the loan.

The life or term of a mortgage is 30 years by industry standards, but 15 and 20-year term loans are also available.Shorter term loans come with cheaper interest rates. A 15-year mortgage's interest rate is typically one-quarter to one-half percent lower than a 30-year mortgage. Both the cheaper rate and the shorter term mean you'll also pay less over the life of the loan than you would if you borrowed the same amount of money with a long term loan.Monthly payments of a shorter term loan, however, are generally higher than the same loan for a long term because the larger payments of

the short term loan are necessary to repay the debt sooner.A long term loan with smaller monthly payments can be easier to budget, but if you have a stable salary that allows you to afford the larger monthly outlay, the shorter term loan could be to your advantage.

Whatever term you choose, fixed rate mortgages protect you from the risk of rising interest rates. Of course, since you are locked in to a given rate, you could end up with a rate higher than the going rate should rates fall.The second major category of mortgages are ARMs. They come with interest rates that adjust up or down, depending upon current economic trends.An ARM's rate is based on a money market index. The one-year U.S. Treasury bill is commonly used because its yield is similar to the 30-year U.S. Treasury bill used to set rates on 30-year fixed mortgages. ARMs might also be tied to other indexes, including certificates of deposit (CDs) or the London Inter-Bank Offer Rate (LIBOR) rates, among other regularly published indexes.To come up with the ARM rate, the lender will add a "margin," usually two to four percentage points, to the index.Initially, the ARM rate is lower than the fixed rate, from about a quarter point to two points or more, depending upon the economy. When the first adjustment occurs (from six months to many years) and how often the rate adjusts, depends upon the terms of the loan. After the first adjustment occurs, subsequent adjustments can occur every six months, once a year, or during larger periods. The adjustment period is disclosed in the loan.

ARMs generally have limits or "caps" on how high it can adjust during each adjustment period as well as over the life of the loan.The caps protect you from drastic market changes, but ARMS don't offer the stability of a fixed rate loan.ARMs' lower initial rate, however, can help you qualify for a larger loan or start you off with smaller payments than you'd have to pay for the same mortgage with a higher fixed rate. And if index rates fall with an ARM, of course, so does your monthly mortgage. ARMs could also be a good choice for someone who knows his or her income will rise and at least keep pace with the loan rate's periodic adjustment cap. If you plan to move in a few years and are not concerned about the possibility of a higher rate, an ARM also could be a good choice.

Why Invest in Real Estate?

1. Gain more leverage. Real estate is one of the few investment vehicles where using the bank's money couldn't be easier. The ability to make a down payment, leverage your capital, and thus increase your overall return on investment is incredible.

2. Grow, tax-free. Buying rental property based on speculation of its value is a dangerous tactic since cash flow is the key. However, appreciation over the long-run is certainly realistic and at the least you should be considering a tax-deferred strategy. In the future, you may even consider a 1031 exchange, charitable trust, or an installment sale to lesson your tax liability further.

3. Tax free cash flow. It's no secret that because of depreciation and mortgage interest deductions (if you leverage your capital), your cash flow should be tax-free. That's right! The far majority of the time an investor will never pay taxes on their cash flow and can wait for capital gains on the sale of the property in the future.

4. The tax write-offs against your other income. Depending on your classification as an Active Investor or Real Estate Professional and your income level, there is a good chance your rental property will not only give you tax-free cash flow, but an overage of tax deductions you can use against your other income. With that said, this is something you want to discuss with your tax professional before investing so your expectations are realistic.

5. Increased tax deduction strategies. Rental property affords investors with another incredible opportunity to convert personal expenses to potentially valid business deductions. Don't forget that rental real estate is a business. This means that travel expenses to check on your properties and payments to family members who manage your properties (such as students away at college) can be deductible and increase the tax benefits when it comes to cash flow and the future sale of the property.

6. Rental real estate is a forced retirement plan. Americans are terrible savers. We lack the self-discipline to put a monthly deposit into our IRA, SEP or 401k as small-business owners. However, buying a rental property is a significant commitment that you are required to commit to and maintain. You will always be grateful in the long-run when you don't give up on it and build future cash flow and wealth.

How to Invest in Real Estate

 

 

1.  Build up your start-up capital by speaking to your bank about a savings or personal investment plan. Find ways to save your money, keeping in mind that you should have enough to put a 25 percent down payment on your first residential real estate investment. 2.  Take a reputable real estate investment training seminar. As a general rule, bigger is better: trust professionals who offer courses at well-known convention centers or training institutions. In general, it's also a good rule of thumb to head to your bookstore rather than the Internet if you want to read about real estate investing, as there are many websites that don't deliver what they promise. 3.  Learn to identify motivated sellers. A motivated seller is a person who, for one reason or another, has to sell her home relatively quickly. Often, you can buy a home for thousands less than its market value from a motivated seller, making what amounts to an instant profit. 4.  Make sure you have enough knowledge to be able to make your own assessment of a house's structural soundness. If not, bring along someone who does when you go house-hunting, or consider hiring an appraiser if you're serious about a particular property and want an independent evaluation of its value. 5.  Make a down payment on the home of your choice and rent it out as soon as possible, at as long a term as you can get at a rate that at least covers (if not exceeds) the sum of your monthly mortgage, fees and property taxes. 6.  Build up equity in the home by having your renters pay down the mortgage for you, making sure you keep a cash float fund available for contingency purposes. 7.  Use the equity you've built up in your investment property to put a down payment on another house, if you want to build your own mini-real estate empire. You can continue to buy and rent out homes in this manner to whatever degree you consider manageable in your present situation. 8.  Remember that buying, renting out then selling or using a home's equity for further investing is but one of many real estate investing strategies. You can also flip houses by buying them at below-market rates, having improvements made then selling them at a profit. You can also invest in commercial real estate, such as apartment buildings, mobile home parks, strip malls and other lands that businesses use.

Avoiding Foreclosure

Are you facing foreclosure? Avoid Foreclosure can provide the foreclosure help you need. We assist homeowners nationwide with just about any foreclosure related service you can think of. After years of research in the foreclosure market we have put together the very best list of resources can help you stop foreclosure.

Your Bank Won’t Help You Avoid Foreclosure

So you’ve missed a payment or two on your house. You have hit a roadblock in your personal finances and struggle to keep up with the bills that you receive each month. Your bank is calling everyday and demanding full payment and threatening foreclosure. You have never had a problem paying your house payment until now. Surely your bank will understand your situation and let you slide another month or two while you find a way to keep your head above water. Your bank had enough trust in you to help you finance your home. Shouldn’t they help you when you are struggling?

It is this way of thinking that traps homeowners and accelerates the process of foreclosure. Banks do not help you avoid foreclosure. You have a signed loan agreement that gives your bank the right to take back your home if you fail to keep up with the mortgage payments. Your bank is waiting to take your home away from you and sell it to someone else that is able to pay the payment each month. The cycle of selling, foreclosure and reselling will continue until your bank receives back its original investment plus two to three times that amount in interest.

You Have Limited Time to Avoid Foreclosure

No news is never good news when you are behind on your mortgage payments. Your bank could be starting the foreclosure process and completing the necessary documents to take your home away from you. You might have already received notification that your home is entering the first phase of the foreclosure process. This does not mean that you will lose your home forever. Many homeowners give up prematurely and do not try to avoid foreclosure because they are not informed of their foreclosure law rights. There is help available. You do have options to save your home. Every day that you wait to seek help reduces your chances of staying in your home.

We Help You Avoid Foreclosure and Penalty Fees

The first step to defeating foreclosure is learning about your rights as a homeowner. I have helped many people in Idaho in foreclosure stop the process and stay in their homes or find another alternative. You cannot sweep foreclosure letters under the rug and forget about them. Banks are vicious and know that you do not understand the foreclosure process or how to stop it. Let me, an experienced foreclosure expert go to work to help you avoid foreclosure and eliminate the penalty fees assessed to your mortgage. There are helpful programs that will be offered to you to stop the foreclosure process no matter what your personal situation is right now. Gain the peace of mind that you have a partner fighting for you instead of against you.

Happy Halloween

Happy Halloween from Renteria Real Estate!  Have fun and be safe!

 

Why Use A Listing Agent?

WHY USE A LISTING AGENT?

 

1.Education & Experience

You don't need to know everything about buying and selling real estate if you hire a real estate professional who does. Henry Ford once said that when you hire people who are smarter than you are, it proves you are smarter than they are. The trick is to find the right person. For the most part, they all cost about the same. Why not hire a person with more education and experience than you? We're all looking for more precious time in our lives, and hiring pros gives us that time.

 

2. Agents are Buffers

Agents take the spam out of your property showings and visits. If you're a buyer of new homes, your agent will whip out her sword and keep the builder's agents at bay, preventing them from biting or nipping at your heels. If you're a seller, your agent will filter all those phone calls that lead to nowhere from lookie loos and try to induce serious buyers to immediately write an offer.

3. Neighborhood Knowledge

Agents either possess intimate knowledge or they know where to find the industry buzz about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, crime or demographics. For example, you may know that a home down the street was on the market for $350,000, but an agent will know it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow.

4. Price Guidance

Contrary to what some people believe, agents do not select prices for sellers or buyers. However, an agent will help to guide clients to make the right choices for themselves. If a listing is at 6%, for example, an agent has a 6% vested interest in the sale, but the client has a 94% interest. Selling agents will ask buyers to weigh all the data supplied to them and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy.

5. Market Conditions Information

Real estate agents can disclose market conditions, which will govern your selling or buying process. Many factors determine how you will proceed. Data such as the average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.

6. Professional Networking

Real estate agents network with other professionals, many of whom provide services that you will need to buy or sell. Due to legal liability, many agents will hesitate to recommend a certain individual or company over another, but they do know which vendors have a reputation for efficiency, competency and competitive pricing. Agents can, however, give you a list of references with whom they have worked and provide background information to help you make a wise selection.

7. Negotiation Skills & Confidentiality

Top producing agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It's part of their job description. Good agents are not messengers, delivering buyer's offers to sellers and vice versa. They are professionals who are trained to present their client's case in the best light and agree to hold client information confidential from competing interests.

8. Handling Volumes of Paperwork

One-page deposit receipts were prevalent in the early 1970s. Today's purchase agreements run 10 pages or more. That does not include the federal- and state-mandated disclosures nor disclosures dictated by local custom. Most real estate files average thicknesses from one to three inches of paper. One tiny mistake or omission could land you in court or cost you thousands. In some states, lawyers handle the disclosures, thank goodness!

 

9. Answer Questions After Closing

Even the smoothest transactions that close without complications can come back to haunt. For example, taxing authorities that collect property tax assessments, doc stamps or transfer tax can fall months behind and mix up invoices, but one call to your agent can straighten out the confusion. Many questions can pop up that were overlooked in the excitement of closing. Good agents stand by ready to assist. Worthy and honest agents don't leave you in the dust to fend for yourself.

10. Develop Relationships for Future Business

The basis for an agent's success and continued career in real estate is referrals. Few agents would survive if their livelihood was dependent on consistently drumming up new business. This emphasis gives agents strong incentives to make certain clients are happy and satisfied. It also means that an agent who stays in the business will be there for you when you need to hire an agent again. Many will periodically mail market updates to you to keep you informed and to stay in touch.

The Basics of Paying For Your House-Mortgage V. Cash

MORTGAGES


Amortized Loans: Most mortgages are "amortized loans" where equal payments (usually monthly) of the principal and interest are made over a certain period (usually 15 to 30 years). The payments cover both the principal and the interest.

Adjustable vs. Fixed Rate: An adjustable-rate mortgage (ARM) changes the monthly payment based on fluctuating interest rates and usually offers a lower interest rate. A fixed rate mortgage locks in the payment and interest rate for the length of the mortgage. If you can lock in a mortgage at a low fixed rate, woohoo! You win. Interest rates are set by state laws, and charging over that rate is usury.

Pre-Qualified vs. Pre-Approved: Pre-qualification is when a mortgage broker informally lets you know how much money you can borrow based on factors including your debt-to-income ratio (see below). Pre-Approval is a more intense process where you have to submit financial documentation and then the lender will agree to the loan in writing in a commitment letter. This, of course, carries much more weight when you're making an offer on a house than just a pre-qualification. This letter has an expiration date, so make sure you know your timing.

Debt-to-income Ratio: Basically, the percentage of your gross monthly income that goes towards paying your debts. These could be housing related (rent, mortgages, etc.) and debts like school loans and car loans. Use this calculator to figure out some more details.

Point: Points are packets of extra prepaid interest payments that equal 1 percent of the loan amount. Do you get points for being bad? Some mortgage plans might lower the interest rate in exchange for extra points paid upfront, which is known as a buydown. Some buydowns don't last for the whole loan but rather for just the first few years, while others last the whole loan.

Remember, this is just very basic info. Mortgages are complicated to the average Joe, but explained in much more detail by a professional. Do some scouting, get a recommendation and call up a mortgage broker for the whole shebang.

PAYING IN CASH

The thing to remember is that your cash needs to stay in the bank. It's not a good idea to walk around with cash. It isn't safe and it won't be accepted by any ethical professional entity you are dealing with. If someone is taking your cash, don't give it to them. The transactions are done from bank to bank. Checks are certainly good as a source of deposit but when it comes to the closing table if you are buying property the best way is by wire transfer.

You should know in advance of your closing how much money needs to be transferred, and the seller will provide wire instructions so it can go to one bank from the other. For smaller dollar figures (less than a few thousand) you can use a personal check but in most cases - in the absence of a wire transfer - you can use a cashier's check. However, wire transfers are replacing checks more and more.

The process is exactly the same for foreign buyers, except that I recommend that foreign buyers open a local bank account so the local bank can do the wire transfer on the same day to the closing agent. In some cases, depending upon the country of origin, wire transfers from a foreign bank can take more than three days. Generally with foreign banks the wire transfer is not an instantaneous transaction.

Basically, if you're paying in cash, especially if it's coming from another country, the primary concerns are security and timing. And, preferably, a wire transfer from a U.S. bank is the way to go. Never, ever carry around suitcases full of cash. That may seem obvious, but this must be said.

In summation, if you can get a mortgage in this market, good for you If you can pay in cash, good for you!

The Pro's and Con's of Paying Cash For a Home

Pros




No Credit History Needed

A long time ago I read a story of a guy who avoided credit cards and loans like the plague so he did not have a credit history, but he had considerable savings. When he wanted to buy a house no one would give him a loan, so he bought a house outright with his savings. In situations where you do not have the ability to get a reasonable loan, then paying cash might be the best option.

Risk Free Savings

If a mortgage costs 7% and you pay cash, you would essentially be saving 7% in interest risk free. So in the case where mortgage interest rates are higher than what you can get on your investments, you would come out ahead by paying in cash.

You Actually Own Your House

I think psychologically there is a big benefit in knowing that you own your house free and clear. You also free up quite a bit of income because you will have no rent or mortgage.

You Are Not Leveraged

Buying a house with cash means that if the value of the home goes down by 10% then the money you put in also goes down by 10%. The most you can lose is the amount of money you put in. In the case of a 20% down mortgage, if the house's value goes down 10% then you lose 50% of the money you put in because of leverage.

Negotiate a Better Deal

When you have the cash to pay for the full amount of a house, it means that there will be no contingencies on getting a loan and the amount of time needed to close a deal is shorter. This generally gives you the buyer more negotiating power for a discount on the price of the home.

Cons

Less liquidity

Having a mortgage lets you free up your cash for other investments. It is also not wise to put all your liquid assets into buying a house with cash because it is harder to free up that money in case you need to use it. If you buy a house with cash, any new mortgages would be considered refinances and carry a higher rate than a first mortgage.

You Are Not Leveraged

Leverage goes both ways, so if the value of the home goes up, then the percentage gain of an all cash buyer would be comparably lower than the person who purchased with a mortgage.

No Tax Advantage

Mortgage interest is deductible on income taxes in the United States. If you are in a high tax bracket that benefit lessens the bite of the interest by quite a bit. In contrast, buying a home with cash does not give you any tax deductions.

Do You Need A Home Warranty?

What Is a Home Warranty?
A home warranty is not the same thing as homeowners insurance, nor is it a replacement for homeowners insurance. Homeowners insurance covers major perils such as fires, hail, property crimes and certain types of water damage that could affect the entire structure and/or the homeowner's personal possessions. A home warranty does not cover these perils. Rather, it covers specific components of the home.

A home warranty is a contract between a homeowner and a home warranty company that provides for discounted repair and replacement service on a home's major components, such as the furnace, air conditioning, plumbing and electrical system. A home warranty may also cover major appliances such as washers and dryers, refrigerators and swimming pools. Most plans have a basic component that provides all homeowners who purchase a policy with certain coverages. Homeowners can also purchase one or more optional components that provide additional coverage at additional cost.

Home warranty companies have agreements with approved service providers. When something that is covered by a home warranty breaks down, the homeowner calls the home warranty company, and the home warranty company sends one of its service providers to examine the problem. If the provider determines that the needed repair or replacement is covered by the warranty, he completes the work. The homeowner only pays a small service fee, plus the money she has already spent to purchase the warranty.

What Does It Cost?
A home warranty costs a few hundred dollars a year, paid up front (or in installments, if the warranty company offers a payment plan). The plan's cost varies depending on the property type e.g., single-family detached, condo, townhome, duplex, and whether the homeowner purchases a basic or extended plan. The cost usually does not vary with the property's age, unless the home is brand new, which increases the cost of coverage. The home's square footage also does not affect the price in most cases, unless the property is more than 5,000 square feet. Separate structures, such as guest houses, usually are not covered by the basic policy, but can be covered for an additional fee. However, garages should be covered by the basic policy.

In addition to an annual premium, home warranties charge a service call fee (also called a trade call fee) of around $60 every time the warranty holder requests that a service provider come out to the house to examine a problem. If the problem requires more than one type of contractor to visit (e.g., a plumber and an electrician), the homeowner may have to pay the service fee for each contractor.

 

Having a home warranty doesn't mean the homeowner will never have to spend a penny on home repairs. Some problems won't be covered by the warranty, whether because the homeowner didn't purchase coverage for that item or because the warranty company doesn't offer coverage for that item. Also, home warranties usually don't cover components that haven't been properly maintained. Furthermore, if the warranty company denies a claim, the homeowner will still have to pay the service fee and will also be responsible for repair costs.

The Benefits of a Home Warranty
Like all warranties, a home warranty is supposed to protect against expensive, unforeseen repair bills and provide peace of mind. For a homeowner who doesn't have an emergency fund or who wants to protect their emergency fund, a home warranty can act as a buffer. Home warranties also make sense for people who aren't handy or who don't want to worry about tracking down a contractor when they have a problem. Warranties can also make sense for people with expensive taste in appliances.

The subject of home warranties often comes up during the sale and purchase of a home. A home warranty can provide reassurance to a homebuyer who has limited information about how well the home's components have been maintained (or how well the home has been built, in the case of new construction). A warranty can also be helpful for someone who has just depleted their savings to buy a home and wants to avoid any additional major expenses. For home sellers, offering the buyer a paid-up, one-year home warranty with the home purchase may provide a measure of protection against buyer complaints about any home defects that arise after the sale closes. However, providing a home warranty does not exempt the seller from her legal requirement to disclose any known problems with the home.

What Is A Home Warranty?

The last thing a home buyer wants to worry about after closing is what could possibly break or malfunction in her new home. Since that can cover a multitude of items and systems, for peace of mind, it's a good idea to get a home protection plan. It's especially a good idea to obtain a home warranty if you're a first-time home buyer with no experience maintaining a home.

What is A Home Warranty? 
Home warranty is an appliance service protection plan that covers the maintenance expenses associated with household items such as refrigerator, dishwasher, HVAC units, plumbing system, electrical wiring etc. Your home owner’s insurance will insure against natural disasters such as fire and flood but it will NOT cover the maintenance and repair charges.
When your air conditioner or heater stops working, you will place a service request with a home warranty company who will send the technician out for repair. Home warranty plan will also replace the equipment if it cannot be repaired. Home warranty will essentially give you the peace of mind. You don’t need to spend thousands of dollars if your dying air conditioner breaks apart at the middle of the night. On this website, we help you choose the right plan that fits your needs.

How Do They Work?
Although specific plans provide for specific types of coverage, most operate the same way.

• If a home system or appliance breaks or stops working, the home owner calls the home warranty company.
• The home warranty company calls a provider with which it has a business arrangement.
• The specific provider calls the home owner to make an appointment.
• The provider fixes the problem. If an appliance is malfunctioning and cannot be repaired, depending on contract coverage, the home warranty company will pay to replace and install the appliance.
• The home owner pays a small trade service fee (less than $100).

What is Not Covered?

• Outdoor items such as sprinklers
• Faucet repairs are not covered under all plans
• Not all plans pay for refrigerators, washers & dryers or garage door openers
• Spa or pools, unless specific coverage requested
• Permit fees
• Haul aways

What Can Cause Denial of Payment?

• Improper maintenance
• Code violations
• Unusual wear and tear
• Improper installation

General Coverage

• Air conditioning
• Dishwashers
• Doorbells
• Furnace / heating
• Water heater
• Ductwork
• Garbage disposal
• Inside plumbing stoppages
• Ceiling fans
• Electrical systems
• Range and oven
• Telephone wiring

Because coverage's vary from state to state and from policy to policy, ask to see a sample copy of a policy before you commit.

The Home Warranty Protection policy is a wonderful way to guard you and your buyer from unexpected repairs that can and do crop up without warning. During the home buying /selling process is no time for either party to have to disburse more money, especially for repairs.

1. It will potentially save you money
2. It will repair or replace any covered item
3. The cost of a Home Warranty is only a small part of the cost of replacing a major appliance
4. It gives an incentive to the sale to any potential home buyer
5. The Home Warranty will reduce any buyers worry about purchasing your home, mainly if you have an older home
6. It also relives a buyer of any worries that you failed to disclose a material defect on the home disclosure
7. Moreover, it will help put off the buyer from trying to sue you for failing to reveal any of the homes major defects on the home disclosure