Real Estate Information

If your kitchen counters need some updating but replacing them is not in your budget you may want to consider countertop resurfacing. This is a much more economical and easier option for homeowners who are wanting a change or are trying to sell their home.

This is a much simpler process than completely replacing the counter tops because you will avoid the mess and time involved with removing and replacing them, not to mention you can save up to 70% off the cost of replacing your kitchen countertops. A refinished countertop is durable and can extend the useful life of your counters for 10-15 years or more with basic care and maintenance. 

The changing of the counter top surface can help to give your kitchen a fresh new, updated appearance that can help your home to sell. Homeowners have many options for materials, from simple laminates to granite and even 'faux' stone.

Kitchen countertops are an important part of a kitchen not only because of their functionality but it also sets the style. Kitchens are an important when selling your home as buyers look for updated and functional kitchens that are move in ready.  

A home warranty might be something to consider if you have just purchased a new home or are going to be buying a new home in the near future. A home warranty guarantees the property against failure of mechanical systems, such as plumbing, electrical, heating and installed appliances. Many first time home buyers go with a home warranty to help protect them against the cost of unexpected covered repairs or replacement on their major systems and appliances.

The cost for  a home warranty can vary but they are typically inexpensive, usually ranging from $250 to $600 annually, depending on coverage. There are many different plans with different requirements, most tend to operate the same way. If an appliance or item covered breaks or stops working, the home owner calls the home warranty company. The home warranty company calls a provider with which it has an arrangement and they contact the homeowner to come out to fix the problem.  Typically if the problem can be fixed per the contract coverage than the warranty company pays the contractor directly.

Each company is different in what items they cover but below are some typical systems and appliacnces that are covered and what are not typically considered to be included.

 Typically Covered

• Air conditioner system/ Furnace / heating
• Dishwashers
• Doorbells
• Water heater
• Garbage disposals
• Inside plumbing stoppages
• Ceiling fans
• Electrical systems
• Range and oven

Typically not covered

• Outdoor items such as sprinklers, or pool filters/spa systems
• Not all plans pay for refrigerators, washers & dryers or garage door openers
• Spa or pools, unless specific coverage requested

It is important to know that pre-existing conditions are not covered. The home warranty company expects to start with a clean sheet and they require home owners to fix any pre-existing issues before the new policy becomes effective. It is a good idea to get the home inspection done before you sign the contract, so that you have a proof if necessary.

When looking for a new home, the neighborhood that the home is in can be just as important as the actual property. Because each town has several hundred if not thousands of neighborhoods, it can be a very time consuming process to research which area offers what will meet your needs. NeighborhoodScout®is a web based neighborhood search engine that can assist you in your search. It is a useful tool for homebuyers that uses neighborhood statistics to build neighborhood profiles to help them to instantly find the best neighborhoods that fit their criteria in any part of the United States.

NeighborhoodScout uses the largest database of neighborhood statistics and characteristics so that the user can choose exactly what they want in a neighborhood by selecting lifestyle searches and key words. Homebuyers can search for neighborhood profiles that are linked to the local information such as school information and crime statistics for each neighborhood.

NeighborhoodScout uses nearly 200 characteristics to build a neighborhood profile for each and every neighborhood (census tract) in America. These include: school quality, housing costs, crime rates, income levels, the age, size and style of homes, the density of buildings, rental areas versus owner occupied, the proportion of families with children, ethnic and racial makeup, and many other demographics.

NeighborhoodScout reduces the amount of time spent searching  by pinpointing the locations that best meet your specific criteria. This unique search engine also assists by eliminating misguided location searches and reducing financial risks and uncertainties associated with buying real estate.

When you purchase a new home one of the documents you will sign when you go to closing is called a Deed of Trust. Many homeowners typically are unaware of exactly what it is. Below is more information on this important document.

What is a Deed of Trust?

A Deed Of Trust is the security for your loan. It is the document that is recorded in the public records.  A deed of trust contains three parties:

•The Trustor, which is the borrower

•The Trustee, which is an entity that holds "bare or legal" title

•The Beneficiary, which is the lender

The deed of trust identifies the following:

•Original loan amount

•Legal description of the property being used as security for the mortgage

•The parties

•Inception and maturity date of the loan

•Provisions of the mortgage and requirements

•Late fees

•Legal procedures

•Acceleration and alienation clauses

•Riders, if any, regarding such clauses as prepayment penalties or terms of an adjustable rate mortgage

Before you sign a Deed of Trust be sure to read all the fine print and pre-printed portions. It is a good idea to request a blank copy of the deed of trust beforehand to review. When you do go to closing be sure to make sure everything is correct before signing. Things such as the principal balance of the loan, the interest rate, and any pre-payment penalties should be reviewed for accuracy.

In today's current sagging economy, many homeowners are struggling to make the monthly mortgage payment and stay on top of their expenses. Foreclosures are in almost every neighborhood and plunging property values have made it harder to determine the amount of equity homeowners have.

However, the good news is that banks are more willing than ever to help homeowners avoid foreclosure. One of the ways you can do this is to renegotiate your mortgage. By doing this you may be able to get a lower finance rate as well as change your rate from a high fixed-rate mortgages or adjustable-rate.

In order to qualify, typically You’ll need at least 10 percent equity in your home. You can easily check the value of your home on sites such as Zillow.com and I can provide you with a free and quick estimate of your home’s worth. Today's lenders typically will require that you have a credit score of at least 720 to qualify for good rates.

Lenders are aware of the many fiscal difficulties borrowers have in making their mortgage payments when hardships arise. However, they typically won't volunteer or advertise their help. So if you are struggling to make your payments on time, it is vital that you take the initiative and contact your lender and give them a heads up on your current financial hardship before you miss payments.  Keep in mind that lenders have more incentive than ever to work with you. Plunging property values mean they’re recovering less now on foreclosures. Plus, many that received cash infusions from the U.S. Treasury are under pressure to show that they’re responding to the housing crisis.

If you are ready to think about listing your home for sale, there are different options that are available for listing agreements. Below are some options for you to consider when selling your home. Consult with your real estate professional with any questions you may have and what agreement is best for your situation.

Open Listing
An open listing is almost like a "for sale by owner" listing. It is a non-exclusive agreement, which allows the owner to execute open listings with more than one real estate broker and pay only the broker who brings an able buyer whose offer the owner accepts. However, no commission is owed if the seller finds a buyer on his own, without any agent's help. The open listing creates competition between the seller and agent(s) to find an willing buyer.

Exclusive Agency Listing
An exclusive agency listing contracts one agent to sell the home. If that agent, or any other licensed cooperating agent finds an acceptable buyer, the seller must pay a sales commission. The owner still reserves the right to sell the property by themselves and thus avoid paying a commission. The broker is free to cooperate with another brokerage, meaning the second brokerage could bring an able buyer whose offer the owner accepts. Typically, the broker is paid a listing commission that is shared with the selling broker, so the owner pays both fees.

Exclusive Right-to-Sell Listing
An exclusive right-to-sell listing is the most common, typically most real estate listings are this type. The listing agent has complete control of the transaction and so even if the seller, the listing agent or a cooperating selling agent finds an acceptable buyer, the listing agent will still earn the sales commission. However, when the listing expires the seller does have the option of finding another agent if they are not satisfied with their performance,

Multiple Listing
An important marketing tool for listing agents is the multiple listing service (MLS). This allows all the listing information as well as photos of the property to be shared on the computer others who are working with potential buyers. In addition, these listings are also available online to potential home buyers who are doing their own research. A MLS number is assigned to each listing, it is a unique number given to homes listed in the Multiple Listing Service (MLS) used by Real Estate professionals.

It is important to understand that a real estate listing contract is a legally binding agreement that sets out the rights and duties of the seller and the agent. It is important to consider your options when making your decision. Keep in mind that all listing contracts have expiration dates and you can change your listing choice when the contract expires.

The Federal Housing Administration (FHA) have announced a set of future changes to the FHA home loan program. These changes are aimed to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The agency hopes that these changes will help the FHA in a better position to manage its risk while continuing to support the nation’s housing market recovery.

Rising defaults on FHA loans have led to the FHA’s cash reserves falling below federally mandated levels.  FHA officials hope that policy changes will ensure borrowers have a stronger equity position and are less likely to default.

Policy changes include:

Raising the up-front mortgage insurance premium: The premium will rise to 2.25 percent from its current 1.75 percent.  HUD is expected to release a Mortgagee Letter on Jan. 21 making the premium increase effective in the spring.

Raising the minimum credit score requirements: New borrowers will be required to have a minimum FICO score of 580 to qualify for the FHA’s 3.5 percent down payment program.  New borrowers with less than a 580 FICO score will be required to put down at least 10 percent.  FHA expects this to take effect in early summer after it goes through the normal regulatory process.

Reduce allowable seller concessions:  The agency is lowering the maximum permissible level to 3 percent from its current 6 percent limit.  FHA expects this to take effect in early summer after it goes through the normal regulatory process.

In addition to the proposed changes,the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.

If you missed the government's Cash for Clunkers rebate program, you still have a chance to participate in the appliance rebate program that can help homeowners with some cash back this year.

The Energy Star Appliance Rebate program, passed last February as part of the American Recovery and Reinvestment Act. How it works is that it will give rebates to consumers who replace certain home appliances with energy-efficient models. The new program underscores the Obama Administration’s commitment to make American homes more energy efficient, while helping to support the nation’s economic recovery

This Energy Efficient Appliance Rebate Program began Jan. 1 and the U.S. Government has set aside $300 million for the appliance rebate program.Each state has their own appliance rebates programs and the authority to handle most of the details separately.  It provides rebates for qualifying energy-efficient appliances.select ENERGY STAR qualified appliances. These appliances may include:

• central air conditioners
• heat pumps (air source and geothermal)
• boilers
• furnaces (oil and gas)
• room air conditioners
• clothes washers
• dishwashers
• refrigerators/freezers
• water heaters

The U.S. Government has given each State the authority to develop their own government appliance rebate program using the government’s guidelines. Individual states can decide the amounts of the appliance rebates up to $200 (reported) per selected appliance that is Energy Star qualified. Each state develops it’s own rebate program and may choose which appliances to include as long as it is on the list of approved Energy Star appliances that the U.S. Government listed. States will receive formula-based funding in order to start or continue an already established ENERGY STAR appliance rebate program

A bridge loan is a short term loan that a borrower takes out against their current property to finance the purchase of a new property. This type of loan is also known as a swing loan, gap financing, or interim financing. When a home buyer is buying another home before selling an existing home, two common ways to find the down payment for the move-up home is through financing either a bridge loan or a home equity loan (or home equity line of credit).

Generally, a home equity loan is less expensive, but bridge loans contain more benefits for some borrowers. In addition, many lenders will not lend on a home equity loan if the home is on the market. It is a good idea to compare the benefits between the two loans to determine which is a better fit for their particular situation and plan ahead before making an offer to purchase another home.

How Do Bridge Loans Work?

To apply for a bridge loan, you must show that you are financially able to pay both mortgage payments in case the primary property does not sell right away. To ease the transition, most bridge loans will allow you to have a few months before your actual first payment is due. However, interest will accrue during that time.

Bridge loans are meant to be short term loans, normally coming due in a year or upon the sale of the primary property. Because it is a short term loan, the interest rates are usually quite a bit higher than regular mortgages and there are fees associated with it.

Pros of a Bridge Loan

• A bridge loan is a great solution if you want to purchase another home without having to sell your current property.
• The buyer can immediately put a home on the market without restrictions.
• Bridge loans may not require monthly payments for a few months.
• If the buyer has made a contingent offer to buy and the seller issues a Notice to Perform, the buyer can remove the contingency to sell and still move forward with the purchase.

Cons of a Bridge Loans

• Bridge loans cost more than home equity loans.
• Strict lending requirements. Buyers must be qualified by the lender to own two homes and many will not meet this requirement.
• If the buyer is unable to sell their primary property, they will have to pay 2 mortgages and risk foreclosure on the 1st.

As with any loan option it is a good idea to weight the pros and cons and consider all your options. If you think a bridge loan might be the solution for you, check out this Bridge Loan Calculator to see an estimated idea of payments. 

If you are planning to sell your home and want to know which room to put your most effort into, your best bet is the kitchen. The kitchen is the room of a home that will add the most value. Remodeling Online’s 2005 Cost vs. Value Report, even a minor kitchen remodeling project will return an average of 98.5% of its cost when it comes time to sell the home.

If your kitchen needs a better look, but you can't afford a complete kitchen remodel, consider these below kitchen fixes to help sell your home faster and for more money:

1. Paint or re-stain worn wood cabinets.

2. Install cabinet hardware. Stay with simple and neutral hardware, avoid large clunky designs.

3. Remove outdated or busy wallpaper and any bold, bright paint. Stick with neutral colors.

4. De-clutter all counter tops, keep them free and clear of appliances, butcher blocks and knickknacks.

5. Update the faucets. New faucets can make a outdated sink look revitalized. Faucet replacements are also fairly inexpensive and simple plumbing projects with all of the parts available at your local hardware store.

6. Remove photos, calendars and personal effects from the refrigerator door.

7. Updated and simple rugs and towels with a splash of color can bring warmth to a kitchen.

Replacing outdated appliances and flooring are great improvements that should be considered but may not always be part of your budget. Keeping a kitchen clean and maximizing space is key to getting buyers interested. Always remember to keep garbage cans, and pet bowls etc. out of sight.