Don't forget to set your clocks back 1 hour tonight

For those of you here on the west coast, don't forget to set your clocks back 1 hour tomorrow night.

Don't Be a Scaredy Cat About Selling Your Home

Happy Halloween folks!

Don't Be a Scaredy Cat About Selling Your Home


Selling a home is one of the most challenging activities we undertake in life. It’s a huge transaction with financial, emotional and practical implications. Not unlike meeting with your CPA or going to the dentist, the thought of putting your home on the market may be enough to make you run for the hills.

If this is true for you, rest assured — you’re not alone. Here are five big fears many sellers face, and ways to cope with them.

My home won’t sell

The home sitting on the market is the number one fear of most sellers. Particularly if they need the money to buy another house or move on, the fear of the home not selling can be overwhelming.

It might be helpful (or incredibly stressful) to know, but for the right price, and in the right condition, any home will sell. It all depends on local market conditions.

Don’t decide to sell at the last minute. Get with a real estate agent months or even a year before you think you need to sell, and plan ahead. In some markets, it could take six to nine months to get an offer.

I’ll have to do work to my home to sell it

Many sellers are embarrassed by their home and know that it needs work in order to bring in the masses. Yet homeowners often want to go from A to Z without having to deal with prepping the home for sale.

Sellers need to understand that the ultimate sale price of their home directly correlates with its condition. The more time and money you spend prepping your home for sale, the more money you’ll get.

If you’re fine with leaving some money on the table for the next owner, do the bare minimum. But with a little time and money spent on cleaning, replacing, storing and staging, you can get your home in tip-top shape.

Lean on your real estate agent for help. Good agents double as project managers for prepping homes for sale.

My home won’t sell by my target date

If a life event such as a job transfer, death in the family or divorce has you under the gun to sell in a certain time frame, this may be your leading fear. Trying to sell a home quickly can be incredibly stressful, not to mention disruptive.

If you need to move your home, you will need to price it at or below the most recent comparable sales. Buyers today look for value and will flock to a well-priced home.

Double points if you can get your home showing in amazing condition quickly. In some markets, well-priced homes in good locations sell with multiple offers.

My agent wants to price my home too low

Your real estate agent’s pricing strategy should be transparent, and together you should come up with a plan. A price reduction should never come as a surprise, and an offer within just two days of going on the market should not be a shock.

If you don’t trust your agent’s judgment on price, or you feel you and she don’t have aligned strategies, don’t list with her.

However, if you don’t agree with her price, but you hear the same number from multiple agents, that could be a sign that you aren’t being realistic.

I feel exposed with people walking through my home

Face it: To sell your home, you have to open it up to the masses. I once had a client completely break down when she came home to 10 people mulling around 10 minutes after the end of the open house.

Take down all of your personal belongings like photos, diplomas and the like. Remove all small and expensive items and put them in a safe.

While it’s important to have your home decorated for showings, it’s sometimes easier on sellers to depersonalize the home as much as possible, prior to listing. Some people prefer to move and sell the home empty or staged because they simply can’t deal with the headache. Put a safety plan in place with your agent if you have those concerns.

The whole idea of selling a home is stressful and most people fear it — and for good reason. Moving is very disruptive, and selling a home brings up lots of concerns.

Just know that you are not alone, and your fears are well founded. So, put them out there and approach them one by one. Planning and working with the right team can help make your home sale much less scary.

Source: Zillow Blog, Brendon Desimone
http://www.zillow.com/blog/scared-about-selling-home-185874/

Happy Halloween from the Mimi Wang Team

Why Halloween Scares Insurance Providers (and Should Scare You)

See the leaves change color and fall almost before your eyes. Taste the pumpkin spices featured in nearly every treat. Watch the horror movies dominating television. Yep, it’s October, with Halloween hype ratcheted up to full throttle.

Kids and adults alike dream — hopefully with no appearances from Freddy Krueger — about how they will dress on the one night of the year where anything goes. Spiderwebs and carved pumpkins decorate doorsteps, and grownups splurge for bowls full of fun-size candies for trick or treaters.

Before you get too carried away with thoughts of a thriller night, understand how real Halloween horrors can affect your home insurance.

Be cautious when carving

Carving pumpkins is one of the most fun Halloween activities, and allowing a child to carve one on his or her own for the first time is a noteworthy rite of passage. Still, children with knives should always be supervised. If you’re not dead-set on carving, a fun alternative is to paint pumpkins — brushes aren’t sharp.

Sinister flames

Pumpkin danger doesn’t end with a scary face. It’s customary, after all, to light a candle inside your jack-o’-lantern to give it an ominous flicker night after night. But the threat is real: Pumpkins can easily be knocked over and cause nearby decorations, loose-fitting costumes, plants and more to ignite.

About 33,900 fires were reported between 2009 and 2011 during the three-day span surrounding Halloween, according to the U.S. Fire Administration. Halloween fires caused 30 deaths, 175 injuries and $96 million in property damage per year during that time.

While fire damage typically is covered by standard homeowners policies, it’s vital to take steps to lower your home’s risk. Instead of placing candles inside your pumpkins, opt for battery-powered tealights.

Keep the beasts at bay

If you have dogs or other pets that may react poorly to trick or treaters, put them in a room that’s gated so you don’t have to worry about any biting scenarios.

More than one-third of all home insurance liability claims in 2014 involved dog bites, which cost insurance companies about $530 million, according to the Insurance Information Institute (III). Do yourself a favor and confine your pets.

Devious decorations

If Halloween is your favorite holiday and you like to transform your home into a haunted house, or fill your yard with spooky scarecrows, spiderwebs, and skeletons to greet trick or treaters, reviewing your home insurance policy is a must.

The common theme: liability.

If over-excited children sprint to your door in search of candy, trip on your porch step, and break a limb, you could be liable, since the injury happened on your property. Make sure your home is well-lit, and survey the yard for decorations or other items that could cause trick or treaters to slip and fall.

If you put on a haunted house — especially for children — you’re testing your guests’ fight-or-flight responses. When kids get scared, they run, and they could fall and hurt themselves. Don’t make your haunted house too scary for children to handle, and be sure you have plenty of liability coverage. The average bodily injury claim between 2009 and 2013 cost $19,466, according to the III.

The other issue with haunted houses applies to those who charge admission. Collecting a fee could transform your harmless haunted house into a business, and if you don’t have a business policy, your home insurance likely won’t cover costs in the event of an injury.

Villainous vandals

In many areas, the night before Halloween is known as “Mischief Night,” when teens and young adults often engage in pranks and minor vandalism such as playing ‘ding-dong ditch’ or toilet-papering yards. The fun can escalate to serious vandalism, such as smashing windows or dabbling in arson.

To avoid falling victim to vandalism around Halloween, keep porch lights on and consider adding motion-sensor lights around the exterior of your home. Park your car in a garage, if possible; test smoke alarms; and remind all members of your family about your emergency evacuation plan in case of fire.

Though standard home insurance policies typically cover vandalism, think twice about filing small claims — say for damaged decorations. For one thing, you’ll have to pay a deductible, which could be more than the claim. Plus, filing a lot of small claims could cause your premiums to rise when it comes time to renew your policy.

Spooky soirees

With Halloween falling on a weekend, a party featuring scary snacks and fun cocktails might be part of your plans. Whether you’re hosting the festivities or just attending someone else’s, consider the following factors.

The last time Halloween fell on a Saturday was in 2008, and the III reported that 58 percent of highway fatalities that night involved drivers with blood alcohol contents at or above the legal limit. Wrecks involving impaired or drunken drivers on Halloween kill three times more people as on New Year’s Eve, according to the National Highway Traffic Safety Administration.

If an impaired guest leaves your party and causes a crash that hurts or kills someone, you could be on the hook. A wise host collects guests’ keys as they arrive, and monitors their alcohol intake.

If you don’t feel comfortable cutting off friends or family, hire a professional to tend bar and shoulder that responsibility. Above all, make sure impaired guests have a designated driver or let them spend the night.

You can follow these steps and still have Halloween fun — plus you’ll minimize your chance of needing to invite a really scary guest: your insurance provider.

Source: Zillow Blog, homeinsurance.com
http://www.zillow.com/blog/halloween-scare-insurance-providers-185696/

ABC Nightline on Flipping

Here's a great video I found on RealtyTrac's website regarding the realities of house flipping. Over there years I have seen many so called "reality TV" shows on cable TV that portray house flipping as easy. Then I often hear radio commercials as I am driving in my car of some huckster or another promising real estate riches if you can just pay $100 for his guaranteed to work house flipping system. Well, if you're on the fence about flipping houses for profit, I suggest you watch the below video before you get suckered into something you're not prepared for. I am not saying buying houses, fixing them up, and selling for profits is not a way to make money, just know what you're getting yourself into.

Related:
5 Mistakes That Make House Flipping A Flop

Renting or Owning? Which costs more?

There’s more to comparing the costs of renting and owning than the dollar cost of payments.

Even with numbers like these, some still say renting is better:

“Investing in a home is riskier than renting.”
No risk, no reward. Besides, even studies conducted by the Federal Reserve show that owning can provide a net worth that is from several to hundreds of times higher than that of renters.

“Home values have dropped in recent years.”
Which is one reason why ownership may now be less expensive than renting. As well, recent price trends in many areas have reversed, and values are once again on the rise.

“The tax deductions aren’t worth it.”
Some people benefit from claiming deductions for mortgage interest and real estate taxes. Others find a standard deduction more valuable. Even if you exclude the tax benefit, the real cost of owning can still be less than renting.

Equity for you or equity for your landlord?
With more or less equal payments, owning will always have an advantage in that you’re paying down principal and earning equity in your own home rather than the landlord’s.

Still renting and want to explore the path to ownership? Reach out, and we'll be happy to help.

Factors used: $500,000 purchase price, 20% down, $400,000 30-yr. fixed loan at 4%/4.25% APR. Principal & Interest payment = $1909.66, taxes = $520.83/Mo. (1.25% of value), insurance = $120.83/Mo. ($2.90 per $1000 of loan amount) & maintenance = $208.33/Mo. (0.5% of value). Tax deductibility at 28%. Tax savings, principal paid and appreciation averaged over a 5-year period. Always consult with your tax advisor for tax advice specific to your situation. This is not a Good Faith Estimate nor an offer to lend. Rates, prices, taxes, insurance, etc., are subject to change at any time. APR calculations are based on closing costs of 3% of the loan amount. Actual fees can be less.

California September Sales

7 Ways to Get Top Dollar for Your Home During the Off-Season

After a record-setting summer selling season in many parts of the country, home sales have quieted down for the fall. If you’re putting your home on the market, you might see that as an obstacle, but it can be an opportunity. Even if there is less traffic, there’s less competition from other sellers. In a market where inventory is already tight, that gives you an even greater advantage.

Fall is a particularly good time to sell if you’re marketing to retirees, millennials, or those with very young children—they’re less concerned about tying a purchase to the school calendar. Going into winter, you’ll find that buyers who are willing to trudge through snow to see a home tend to be much more motivated to make a purchase than those who spend a sunny Saturday dropping into open houses.

If you’re thinking of listing your home in the next few months, follow these steps to ensure a quick sale at a great price:

1. Skip the holiday décor

Staging basics such as decluttering and depersonalizing still count during the holidays, so it’s best to keep the inflatable Rudolph and the tinsel in storage.

“You never know who your potential buyer is,” says David Peterson of Synergy Staging in Portland, OR. “We don’t want to pigeonhole or potentially turn someone off.”

2. Update your photos

Even without holiday decorations, photos can quickly look dated as the seasons change. It’s fine to lead your listing right now with a gorgeous photo of crimson- and gold-leaved trees on the front lawn, but once the leaves have fallen, you’ll want a new photo to keep the listing looking fresh, says Jan Niebauer of Niebauer Realty in Milford, MI. Try to snap photos on days when there’s a blue sky, which will pop against a blanket of white snow.

3. Keep the outside neat

Curb appeal is just as important but slightly more difficult to achieve in fall and winter. A leaf- or snow-covered lawn can be beautiful, but it can also get messy quickly.

“Make sure it’s neat and tidy,” Peterson says.

Put an added focus on raking and removing leaves, and consider hiring a snow-removal service to be sure that your driveway and walkways are clear and safe for visitors at all times.

4. Clear the entryway

You’ll want to make sure there’s space for a few people (like a couple and their agent) to stand in the foyer, shed their winter clothes, and stomp off the debris on their shoes, Peterson says. Provide an umbrella stand and shoe covers to keep visitors from tracking mud and snow through your home.

5. Make it warm—literally and figuratively

If you’re going to be out of the house, be sure that your Realtor® arrives early to crank up the thermostat before a showing (or leave it at a warmer temperature when you leave in the morning), which will help potential buyers feel more comfortable.

“It’s vital that a house be warm,” Peterson says, but “not too warm that people have to peel off all their clothes, but definitely not so cold that they want to get out as fast as possible.”

If you have a gas fireplace, make sure it’s lit, and enhance that warm, hospitable feeling with a tasteful throw blanket or area rug.

6. Be more flexible with showings

There are fewer hours of daylight, when your home looks its best, in the winter months, so try to accommodate potential buyers who want to come for daytime visits, Niebauer says.

7. Light it up

Even during the day, cloudy gray skies can make window-lined rooms feel gloomy. Adding floor lamps and turning on all the lights will make the property feel more welcoming.

“Light up every dark corner because they can make a room feel smaller than it is,” Niebauer says. If visitors are coming at night, you’ll want to turn on all your exterior lights as well.

Source: Realtor.com, Beth Braverman
http://www.realtor.com/advice/sell/seven-ways-to-get-top-dollar-for-your-home-in-the-off-season/

Selling Stocks to Buy a Home? How to Do It Right

I thought I'd take a moment to post this article since quite a few buyers here in the silicon valley, who work in the tech sector have had to cash in some of their stock options to buy that dream house. Quite a few of my past buyers have had to do this.


To cover the down payment required for a jumbo loan, some home buyers are borrowing money—from themselves.


When buying a home in Avon, Conn., Matthew and Shannon Carbray decided to sell some of their stock holdings to make a down payment on a $1.02 million, five-bedroom property. But initially, they couldn’t agree on the amount to put down.

Knowing that this is the home where the couple plans to stay and raise a family, Mr. Carbray, a 35-year-old managing partner at Avon-based Ridgeline Financial Partners, wanted to put down 20%, the minimum required down payment for most jumbo mortgages. He calculated that cash left in the stock market would make greater gains than the low cost of interest locked in for 30 years, and that interest also is tax-deductible, he says.

Ms. Carbray, a 32-year-old fixed-income portfolio manager at Hartford Investment Management Co., wanted to cash out more stock and put down 30% because she just felt more comfortable with lower monthly mortgage payments, Mr. Carbray says.

“I was looking at it mathematically and my wife was looking at it emotionally,” he adds.

In the end, they compromised and put 25% down to buy their home in March.

In 2014, about one-fifth of borrowers sold stocks or bonds or borrowed against their retirement accounts to finance a home purchase, according to the National Association of Realtors. (News Corp, which owns The Wall Street Journal, also owns Realtor.com, the listing website of the National Association of Realtors.)

There are no hard and fast rules regarding if and when to cash in stocks to make a home purchase. Lenders and financial planners, however, advise borrowers not to panic, just plan ahead, especially in periods of market volatility. They will caution against borrowing from a retirement plan, because homeowners risk hefty penalties and an income-tax bill if they fail to follow loan-repayment terms.

An alternative to selling stocks is getting a loan secured against assets, says Stephen Stabile, a financial adviser with Merrill Lynch Wealth Management. For example, Bank of America Merrill Lynch has a “loan-management account” that offers clients a line of credit based on their Merrill Lynch taxable brokerage portfolio holdings.

The funds can go toward numerous uses, including a mortgage down payment. Customers with substantial holdings currently may get interest rates that are lower than on 30-year, fixed-rate jumbo mortgages, but could be higher than on other types of mortgages, Mr. Stabile says. One recent borrower, a client who was buying a nearly $5 million New York condo, opted to borrow against her stock holdings instead of selling stocks in a down market.

Borrowers should keep in mind, however, that most banks require a greater collateral amount, usually 125%, for a securities-backed loan than for straight dollars in a bank account, to allow for market fluctuations, says Mike McPartland, head of investment finance for Citibank Private Bank North America. “So if it’s a $250,000 down payment, the bank would require that $312,500 remain in that investment account the entire time,” he adds.

However, should the stock market fall precipitously, borrowers could be subject to a margin call and forced to pay the difference between the required collateral amount and its current market value, Mr. McPartland says.

Here are a few more factors to consider:

• Don’t wait too long. Home buyers who wait until the last minute to cash in stocks—hoping that values will rise—risk delaying the home closing, since the sale and money transfer can take several business days, says Peter Grabel, managing director of Stamford, Conn.-based Luxury Mortgage Corp. Also, a stock-market drop amid a home purchase could affect a borrower’s ability to qualify for a loan, he adds.

• Liquidate early. Cash in a bank account is worth more than stocks or mutual funds when it comes to qualifying for a mortgage, because lenders typically value a portfolio at only 70% of its current monetary value, Mr. Grabel says.

• Long-term gains. Borrowers whose stock has appreciated significantly will likely face capital-gains taxes when they sell their holdings, adding to the cost of the home, Mr. Stabile says.

Source: Realtor.com, Anya Martin
http://www.realtor.com/advice/finance/selling-stocks-to-buy-a-home-how-to-do-it-right/

San Jose: Neighbors say six-story apartment proposed for Almaden Road is too big

A trend I've been seeing a lot of here in the Silicon Valley is developers coming in and building mega apartment buildings and then charging as much as they can for the rent on those units. Well now it seems at least some local residents in the Almaden Valley neighborhood are fed up with it.


A developer's proposal to build a six-story apartment complex on Almaden Road has drawn the ire of some Willow Glen residents who say it's too big and dense for their neighborhood.

However, city staff said during an Oct. 13 public meeting hosted by the developer, Cypress Group, that the project is needed to help ease San Jose's housing shortage.

Cypress Group wants a one-acre parcel at 1777 Almaden Road rezoned from multi-family/single-family residential to planned development so that 92 market-rate units could be built there. The new zoning would enable more units than allowed by the lot's current zoning, which limits apartment buildings to three stories or less.

Staff said the parcel was designated in the city's general plan for high-density residential use. That dismayed some of the residents, who questioned why such a use in their largely single-family neighborhood can't be revisited.

Willow Glen resident David Lasich said in an interview he was frustrated at being told that work done on the city's general plan 10 or 20 years ago can't be undone at this point. He said he doubts that such a plan would fly in other areas, such as Dry Creek Road.

"The fact of the matter is, it's poorly designed," Lasich said.

At one point during the meeting Lasich turned to Councilman Pierluigi Oliverio, who represents Willow Glen, and challenged some of his earlier comments that he had never seen a project on residential land rejected by the city.

"High density, that's never revisited?" Lasich said.

"No, in fact the densities only get higher," Oliverio said. "We just approved 144 units to the acre on The Alameda."

Oliverio told The Resident that the project is coming at a time when the city is experiencing a housing crisis and expects to see about 250,000 more residents by 2040. He said more high-density market-rate projects are needed to help the city make up a $100 million loss in park fees and to retain as much land as possible for commercial and industrial use.

According to Oliverio, similar developments pay six figures in road paving fees and annual property taxes, and seven figures in park fees. He said developers of the five-story mixed use building on West San Carlos Street and Meridian Avenue paid $2.8 million in park fees.

"If we're not going to convert industrial-commercial areas to housing when it comes to land already zoned residential, the city council will look to maximize those parcels so we can maintain land for jobs," Oliverio said.

"When you build single-family homes, you lose money," he added. "The higher the density, the more revenue it brings the city."

City planners told residents also worried about congestion that a traffic study was done and is under review. They said that segment of Almaden Road is envisioned as a multi-modal corridor because of its proximity to the Tamien and Curtner light rail stops and is slated to have bike lanes on both sides leading to those stops.

Lasich said he was still disappointed at the end of the meeting but recognized that the project is inevitable.

"You can't stop progress," he said.

The plan will go to the planning director and city council for hearings, although the dates are still undetermined.

Source: Mercury News, Julia Baum
http://www.mercurynews.com/san-jose-neighborhoods/ci_29004735/san-jose-neighbors-say-six-story-apartment-proposed

A+ Reasons To Hire A Real Estate Professional

Remember, if you're thinking of buying or selling, please keep yours truly in mind! 

Applying For A Mortgage: Why So Much Paperwork?

We are often asked why there is so much paperwork mandated by the bank for a mortgage loan application when buying a home today. It seems that the bank needs to know everything about us and requires three separate sources to validate each and every entry on the application form.

Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.

There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history.

1. The government has set new guidelines that now demand that the bank prove beyond any doubt that you are indeed capable of affording the mortgage. During the run-up in the housing market, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again
2. The banks don’t want to be in the real estate business. Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they need to double (maybe even triple) check everything on the application. However, there is some good news in the situation. The housing crash that mandated that banks be extremely strict on paperwork requirements also allowed you to get a mortgage interest rate probably at or below 4%.

The friends and family who bought homes ten or twenty ago experienced a simpler mortgage application process but also paid a higher interest rate (the average 30 year fixed rate mortgage was 8.12% in the 1990’s and 6.29% in the 2000’s). If you went to the bank and offered to pay 7% instead of <4%, they would probably bend over backwards to make the process much easier.

Bottom Line

Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates.

Source: Keeping Current Matters

Pics from the Women's Council of Realtors Great Gatsby Fashion Show in Cambell

I had a great time last night at the WCR fashion show in Campbell! It was great to see everyone there. Thank you so very much to everyone for your hard work and support. I am really proud to be a part of the WCR organization! Below are a few pictures of how glamours the event was and what a great time everyone had.

How Do Homeowners Accumulate Wealth?

How Do Homeowners Accumulate Wealth?

Lawrence Yun Contributor

Opinions expressed by Forbes Contributors are their own.


The differences between buying and renting are massive.  According to the Federal Reserve, a typical homeowner’s net worth was $195,400, while that of renter’s was $5,400.  The data reflects 2013 and the next survey of household finances, which is conducted every three years, will be out in 2016.

Based on what has happened since 2013 and projecting a conservative assumption of what could happen next year to home prices if we see only 3% price growth, the wealth gap between homeowners and renters will widen even further. The Fed is likely to show a figure of $225,000 to $230,000 in median net worth for homeowners in 2016 and around $5,000 for renters. That is, a typical homeowner will be ahead of a typical renter by a multiple of 45 on a lifetime financial achievement scale.

Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth.  The simplest math shouldn’t be overlooked. A vast majority of homebuyers take out a 30-year fixed rate mortgage to make a home purchase. After 30 years, there is no mortgage payment (nor rent payment). So the home price growth over that time period would be the equity that the homebuyer would have accumulated. For example, the median home price of a single-family dwelling in the U.S. thirty years ago in 1985 was $75,500. This year, it will be at least $220,000. That figure of $220,000 is the housing component of the person’s wealth. Even had home prices not risen, the person would still have $75,500 in wealth today – on top of not paying any further monthly mortgage after 30 years.

This simple example does not play out nearly as neatly in the real world, since people do not stay in one residence over the 30 year period. Almost all homeowners trade up, change neighborhoods, or move to a better school district at some point. However, they are able to make those residential relocations due to the housing equity accumulated, even over a shorter period, and can immediately apply that equity to the next home as a downpayment. Therefore the conditions of steadily building housing wealth still hold.

We also know that not everyone can or should be homeowners. The memories of easily accessible subprime mortgages and subsequent harsh foreclosure pains are still fresh, and remind us of the devastating impact on the families involved, local communities, and to the broad economy. In addition most young adults have not developed the financial standing or have found a stable, desirable career and, therefore, choose not be homeowners until later.  The homeownership rate among households under the age of 35 is 35% currently and rarely rises above 40% historically. For those under the age of 25, the current ownership rate is 23% and rarely rises above 25%. But the time will eventually come when people want to convert to ownership. By the time people are in their prime-earning years of 45-to-55, nearly three-fourths do eventually become homeowners. By retirement, nearly 80% are homeowners.

A recent survey of consumers commissioned by my organization revealed that 80% believe that purchasing a home is a good financial decision (2015 National Housing Pulse Survey). Most consumers appear to already understand the simple math and the benefits of homeownership. So don’t overthink the matter of whether now is a good time to buy, or whether stock market returns will be better. The exact timing of a home purchase will have little financial impact in the big scheme of things. Just know that homeowners generally do come out ahead of renters in the long run.

Women's Council of Realtors - The Great Gatsby Fashion Show on Tonight!

Big night tonight for the Women's Council of Realtors (WCR) with our fashion show! I am really, really excited! Pictures for follow tomorrow. . . 

Does your homeowner's insurance cover water damage?

Many a distraught homeowner has had to deal with water damage only to find out that their home insurance policy does not cover the damage. Here's how to make certain that you are not caught in that position.

Avoid water damage

Proper home and appliance maintenance is the best prevention to water damage. Have your heating, cooling and water heater serviced regularly. Don't leave an appliance such as a dishwasher or washing machine running while you're out of the house for a long period. Check occasionally under the sinks for leaks and that the pipes are dry. Stay in the room while filling a bathtub, it fills faster than you think.

Get regular inspections of plumbing and drain systems. Whenever the plumber is at your home, ask him or her to check on all the plumbing. Turn off the water supply to outdoor spigots before the first freeze of winter. Make certain all drains are clear and operating.

Repair any leak promptly. Even minor drips can grow into bigger problems, possibly hiding pipe leaks or worse, plumbing issues behind a wall. Mold and mildew issues usually stem from undiscovered and unrepaired leaks because it needs moisture to grow.

Carefully monitor your water bill for unusual spikes. You could have an underground pipe leak that will cost you thousands of dollars to repair. If the leak occurs on your property, it's your obligation to fix, not the city's water supplier. And don't expect the city to reduce your water bill because you unintentionally used too much water.

Get enough insurance

Don't be satisfied with basic or minimum coverage insurance contracts. Your idea of basic protection may differ broadly from your insurer. Many insurance providers charge extra for more complete coverage, and it can be surprising what is and isn't covered.

Read your policy carefully to make certain that your home has the coverage necessary for all kinds of situations, from a child flushing a toy down the toilet to a tree falling on your roof during a storm. Severe problems such as a sewer backup may not be covered and may require extra coverage.

Source: RealtyTimes, Blanche Evans
http://realtytimes.com/consumeradvice/homeownersadvice1/item/39419-20151022-does-your-homeowners-insurance-cover-water-damage

How to Escape a Home That You Can’t Afford

The housing market may have recovered (for the most part) since its disastrous crash in 2007, but in some markets, home values still haven’t regained their losses. If you bought at the wrong time or in the wrong place—or even just suffered a personal financial downturn—you might find yourself underwater and overwhelmed by the fees that come standard alongside a home sale.

So are you stuck with this home forever?

Luckily, the answer is usually an emphatic no: Every home has an escape hatch—several of them, actually. Yes, you may take a financial hit in the process. Only you can decide if sticking it out is a better option than going through the transitory stress of putting it on the market. Still itching to ditch? Here are your options.

1. Call a Realtor

Got a sneaking suspicion your home’s not worth much? Worried about the fees piling up at closing? If you’re not sure where your stand, getting in touch with a Realtor® (or two) is the first step, says MaryAlice Beevore, a Minneapolis agent.

“Sometimes people are pleasantly surprised their homes are worth more than they think they are,” she says.

Realtors may be surprisingly flexible, especially regarding the standard 6% listing commission.

“That commission is a sacred cow,” Beevore says. “But now, many of us don’t have the same amount of overhead.” And that can be good news for you in negotiating the fee.

2. Rent it out

Finding renters might seem like a headache, but consider this: With the assistance of a reputable property management company, you can get your home into rental shape and score some amazing habitants who’ll put care into its maintenance (and money, via rent, toward your mortgage). You can get tax breaks, too.

“Renting it out isn’t a bad option,” Beevore says. Not only does it provide a direct stream of income, it also offers tax breaks that can go a long way toward helping you regain equity in your property.

“It might even be a financial advantage,” Beevore adds.

She recommends discussing your options with your tax professional. If you’re really underwater—and really, really desperate to leave—renting it out might actually be your best option.

3. Consider a limited-service broker, with caution

If you’ve talked with a Realtor and still don’t think you can swing the financial side of the sale, you might be thinking of trying to sell your home yourself. Another option is working with a limited-service broker (some of these brokers are Realtors, too). While you won’t get the full-fledged brokerage experience, you will get your home on the multiple listing service, which is certainly better than just hanging a sign out front.

“If you just want to get your property on the MLS, a lot of brokerages will do that for a fairly low fee,” Beevore says. “It gets you broad exposure to the market. But don’t expect much service.”

Before electing to use a limited-service broker, make sure you’ve fully evaluated your financial position. The added attention from a full-service broker can really help you sell your home more quickly, and for more money.

4. Finance it yourself

If you’re struggling to find a buyer, you could consider offering a contract for deed, where you agree to finance the sale of your property. With this, you might get a little more money for your house—but it comes with a bevy of risks.

With this, you’re sacrificing the protections provided by a traditional bank loan. If your new buyers default, the mortgage (and the house) reverts to you. And since these situations tend to appeal to buyers who can’t obtain conventional financing, the chance that they do default is a little higher.

But if you need to sell, this can help you find a buyer quickly and skip the mortgage-associated fees that banks typically charge. With a good buyer, you can come out ahead.

5. Beg the bank

If you’re worried about foreclosure, you can talk to your bank about turning over the keys. This is called a deed in lieu of foreclosure, and it means walking away—and likely losing a huge chunk of money in equity. But if you just want to wash your hands of the whole sorry situation and truly can’t afford to sell, this may be your best option.

“The bank has to be willing to accept your offer,” Beevore says. “A lot of times, they aren’t.”

For banks, foreclosure often makes more sense, because they can continue to pursue the debt afterward. But some institutions offer a Cash for Keys program, in which they’ll literally pay you to leave quickly—if that’s the case with your lender, it’s worth investigating.

If you’ve already demonstrated that you can’t pay the mortgage, the bank may be willing to negotiate. Note that this will have a negative effect on your credit score—but it’s not as severe as a foreclosure.

6. Fix it up

Don’t go wild—a full “add a half-bath!” renovation won’t help you sell your home for more.

“The best things you can do to make your home attractive and more sellable are simple things,” Beevore says.

Adding new paint, replacing flooring, and hiring a stager can add value to your home without taking a huge chunk out of your pocket. That is, as long as you resist the urge to redo the whole home.

“For the most part, you don’t get 100% of the money back you put into renovating your home,” she says.

So skip the chef’s kitchen and major changes, unless you’re hoping to persuade yourself to love your home.

7. Hold tight

Speaking of: Maybe you don’t need to sell your home immediately. Can you live with its quirks for a little longer? While the market is a mystery, you can expect your home to appreciate 1% or 2% per year—so if you’re underwater by less than 10%, sitting still might be the best choice.

Beevore advises homeowners to “look at how far underwater you are. If it’s only 5 or 8%, you might just want to wait it out,” she says. “You’ll get there.”

If you’re getting into the double digits, “It’s going to be a long wait,” she says. In that case, you’re better off trying to sell or rent it out.

No matter what, don’t panic: If you want out of a home, there’s always a way that won’t leave you hanging.


Source: Realtor.com, Jamie Wiebe
http://www.realtor.com/advice/sell/trapped-in-house-cant-afford-to-sell/

Skip the Pain: 7 Things That Will Fill You With Buyer’s Remorse

Home shopping makes you a little (OK, a lot) house-obsessed. Between stalking online listings, flipping through all the design magazines, and gorging on HGTV marathons, you know exactly what you want in painstaking detail.

Ain’t nobody gonna say you can’t have what you want. And hey, we’re totally on board. You’ve earned this! Buy whatever you like (within your means of course)!

But we’re here to share an unsolicited word of caution. All those custom details you’ve dreamed about? Make sure you really, really want them before you put in an offer—and that, in order to get them, you’re not sacrificing other things that will ultimately drive you bonkers.

Is the big backyard really worth all the hours of mowing and landscaping? Is your desire for more space making your home feel less cohesive? Are those floor-to-ceiling windows, which made you fall in love with the home, a total PITA to clean?

We could go on and on about the flip sides that have the potential to fill you with regret. But we talked to some experts in the biz and boiled the list down to seven features. Pay close attention to these things that might set you up for the dreaded buyer’s remorse.

1. Don’t go big, just go home

You may want the space to spread out, but consider what rooms you’ll actually use once you move in.

Do you really need five bedrooms, a game room, an office, and two formal living rooms? If you buy too big a home, you might end up regretting it when it comes time to cool, heat, and clean the place.

And don’t forget room size. If the space is too big, your furniture will seem miniaturized. To avoid going too big (or too small), bring a tape measure and measurements of your own furniture to verify everything will look the way you want.

2. Don’t get boxed in

On the other hand, if you’re planning to stay put for a while, consider the home’s architecture. You may want to expand one day, and not all homes are set up for that.

“Many buyers of split-foyer-style homes—where you enter and you’re at midlevel with the stairs and must go up or down—complain that it is difficult to expand their home,” says Cathy Baumbusch, a Realtor® in the Washington, DC, metro area.

Instead, look for more flexible, one- or two-story homes where additions are easier.

3. Don’t let your stairs become an uphill battle

Finally, when you’re walking the floor plan, think of how you’ll use the space when you own it, especially if you’re looking at an older home.

“Most buyers in my area want the standard three-story—two upper floors and a basement—Colonial-style home,” Baumbusch says. “This type of home often has the laundry room in the basement, which means the family has to haul laundry up and down two flights of stairs.

“It can get old fast.”

4. Get off the island … maybe

What we often consider to be an amenity can create remorse. Take, for example, the kitchen island. It looks cool. It adds more prep space. We all want one. Or do we?

“Kitchen islands can be a mistake if you don’t take your ‘work triangle’ into account,” Baumbusch says.

Walk around the kitchen, following your usual prepping and cooking pattern. If you’re bumping into the island, you may end up hating it.

5. Pay attention to what’s missing

If the home is modern (or previous owners did some upgrading), take a hard look and ask yourself if anything is missing.

Often architects and remodelers will take something out to give a room a cleaner, more minimalist feel, and you may feel the loss after you move in.

“There is a trend to eliminate the bathtub in favor of just a shower,” Baumbusch says. “Some homeowners regret that decision, because sometimes they find themselves wishing for a nice long soak after a tough day.”

6. Pools may not be so cool

You step outside, see a pool and immediately picture all the backyard parties you’re going to have. We know, we know, pools are cool. But pools are also a huge expense.

On top of the regular monthly maintenance and cleaning (and there will be a lot of that), pools in seasonal areas are often opened and closed by a pro. Those costs add up.

“It can cost upward of $600 just to open a pool and prepare it for swimmers,” Baumbusch says.

Moral of the story: Pools are a big regret if the expenses cause a burden. Make sure you can comfortably afford the upkeep.

7. Don’t fall for fads

Today’s popular ice-white appliances, steel countertops, and Edison bulb light fixtures are yesterday’s saloon doors, linoleum, and brass hardware.

If you buy a house just for its trendy look, you may end up regretting it when the styles change, especially if you have to sell the outdated design. Instead, Baumbusch recommends looking for timeless features.

When all is said and done, look for a classic, well-designed home to ensure the smallest chance of stinging regret. It may not sound like as much fun, but you can always add a little (or a lot) of your style in the finishing touches.

Source: Realtor.com, Angela Colley
http://www.realtor.com/advice/buy/things-that-will-fill-you-with-buyers-remorse/

Investment Property ROI: Why going beyond your network of friends is critical

The recovering residential housing market continues to offer lucrative investment opportunities for first time and experienced investors looking to fix and flip a house. However, a new challenge is emerging out of the recovery: a shrinking tolerance for mistakes. The single largest mistake beginner real estate investors make today is trying to do it all themselves or relying too heavily on friends and family to execute on the real estate investment.

Sometimes a friend may have a knack for what color to refinish the hardwood floors, or who to use for repairing a roof, but rarely do these close acquaintances come to the table with the focus on return on investment (ROI) necessary to be successful today. First time investors often worry that going outside their circle of friends and family to find a vendor partner to run property rehabilitation might cut into profits. This wasn't as much of an issue when the fix and flip market exploded during the economic downturn and profit was nearly guaranteed. Investors who purchased properties in 2007 or 2008 were making money and gaining valuable experience -- the market was hot and purchase prices reasonable so novice investors could have made any number of mistakes and still realized great returns on their investments.

Assessing an Ever-Changing Market

Property values in many regions of the country have recovered and fewer distressed properties are making it to the market so the market is less forgiving. Those who were investing in the downturn learned their lesson and what mistakes not to repeat when the margins were far wider than they are today. Investors who are now counting their fix and flip successes in the double digits resoundingly say an investor must be able to make an accurate assessment of the property's value and calculate a realistic cost for the rehabilitation -- and execute to achieve the desired margin.  When it comes to investing, working with the right vendor partners -- from appraisers to contractors to suppliers -- was the hardest lesson learned.

There's no easy way; investors have to be ready to work and understand and mitigate risks across the investment lifecycle. They also need to know that their insulated network of family and friends may be free or ready to do a project at a discount -- but they may not be the best people to turn to. Many investors think the more work they can do themselves the more ROI they'll see. Evaluating new vendors takes time -- but it can be time well spent if it makes an investment much more profitable by avoiding lost time and revenue from the mistakes less experienced investors and their friends are likely to make.

Third party experts can provide immediate pay-off by utilizing proven best practices and proper planning which can go a long way towards avoiding big mistakes. Appraisers can help determine as-is and after repair values and a general contractor can ensure you are receiving a proper assessment of rehab costs.  Investors can use this information to determine whether the property has the potential to achieve the returns they are seeking before buying.

Once it is determined that the end product can achieve the desired ROI, a knowledgeable and reliable team of professional partners are critical for keeping a project on track to actually deliver those returns.  These include an array of service providers, such as valuation companies, real estate agents, materials suppliers and most important, a general contractor attuned to the local market.

General Contractors: The Key to Achieving ROI

The single greatest lesson successful real estate investors have learned is how to hire one of the most important vendors: the general contractor. To do this, an investor must look outside their network to evaluate contractors and find the right fit. The investor's cousin who is handy with a hammer may not be the right choice. Hiring an experienced, professional contractor at the outset ensures their experience in the market is going to help improve the bottom line when it comes time to sell or rent the property.

Choosing a contractor begins with a background check to identify if they have had a recent bankruptcy or foreclosure events, any fraudulent or criminal activity on record, and is financially solvent and capable of seeing your project through completion. The investor should ask for a minimum of 5 references and call each and every one of them. Let me repeat: yes, 5, and yes, call everyone one of them. Keep in mind that the references supplied by vendors are almost always likely to be positive, so as you narrow the list, be sure to go see some of their work in person.

When rehabbing a property the investor also needs to know they are hiring a renovator, not a builder. A novice investor should have someone running their project that has performed rehabs on similar properties. They want a contractor who knows the neighborhood. This is important as they will know the finishes that are consistent with the surrounding homes and won't recommend granite countertops when this would be the only house on the street with that expensive upgrade. Additionally, they should know the local climate enough to know there may be particular issues, such as mold. This may seem obvious, but investors moving from the Sun Belt to the Rust Belt -- following markets primed for fixing and flipping -- are not uncommon and unfortunately they are not aware of risks inherent in the new market as their knowledge doesn't always transfer seamlessly.

At the end of a project, when the property is sold, the lessons learned with a network of skilled vendors on the team will have  prepared the investor for their next project -- not sitting back reviewing the laundry list of mistakes and who to hire to fix them. By hiring the right experts, from appraisers to contractors to suppliers, investors can find success and then share it with friends and family as they choose -- a much better outcome.

Source: RealtyTimes, Thomas O'Sullivan
http://realtytimes.com/consumeradvice/buyersadvice1/item/39050-20151009-investment-property-roi-why-going-beyond-your-network-of-friends-is-critical

Infographic - New Home Sales

Happy Saturday everyone! Great info graphic about the status of new home sales.

4 Reasons to Buy BEFORE Winter Hits

It's that time of year; the seasons are changing and with them bring thoughts of the upcoming holidays, family get-togethers, and planning for a new year. Those who are on the fence about whether now is the right time to buy don't have to look much farther to find four great reasons to consider buying a home now, instead of waiting.

1. Prices Will Continue to Rise

The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released recently projects appreciation in home values over the next five years to be between 10.5% (most pessimistic) and 25.5% (most optimistic).

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Although Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have softened recently, most experts predict that they will begin to rise later this year. The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors are in unison projecting that rates will be up almost a full percentage point by the end of next year.

An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

3. Either Way You are Paying a Mortgage

As a recent paper from the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

4. It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But, what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.

Bottom Line

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Source: Keep Current Matters

My New Listing folks.

Open this weekend 10/17 & 10/18 from 1pm to 4pm

Convenience and Luxury - Well Maintained Condo Close to Santana Row

801 S Winchester Blvd #1111, San Jose, CA 95128

$553,999

KEY FEATURES
Year Built: 2005
Sq Footage: 986 sqft.
Bedrooms: 2 Beds
Bathrooms: 2 Baths
Floors: 1
Parking: 1 | Guest parking
Lot Size: 892 Square Feet
Property Type: Condo

DESCRIPTION

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What a luxury lifestyle! Beautiful gated 9 years young Villa Cortina community conveniently located close to Santana Row, Valley Fair, freeway, schools and park. The complex offers security gates, restricted vehicle access, recreational facility, elevators, pool, playground, BBQ area. First floor unit featuring two large dual pane windows, fresh paint, granite counter tops in kitchen and bath and nice floor plan.

Open House: 10/17/15 & 10/18/15 - 1pm to 4pm

PROPERTY FEATURES

---

• Living room
• Master bath
• Storage space
• Pantry
• Range / Oven
• Refrigerator
• Dishwasher
• Microwave
• Garbage disposal
• Stainless steel appliances
• Balcony, Deck, or Patio
• Heat: forced air
• Central A/C
• Ceiling fans
• Double pane / Storm windows
• Cable-ready

COMMUNITY FEATURES

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• Elevator
• Secured entry
• Controlled access
• Gated entry
• Disability access
• Shared pool
• Fitness center
• Clubhouse
• Playground
• Barbecue
• Guest parking
• Covered parking
• On-street parking
• Garage - Attached

Contact info:
Mimi Wang
Century 21 M&M and Associates
408-569-3808
mimi@mimihomes.com

5 Biggest Home-Buying Fears (and How to Face Them)

Buyers’ biggest real estate fears sometimes hold them back from buying — not just around Halloween, but throughout the year. The scary thing is, these fears are sometimes well-founded.

Here are some of the issues that commonly keep home buyers awake at night, and what you can do about them.

“The house has a cracked foundation, dry rot, or a leaky roof”

Renovating, fixing and repairing are on few buyers’ wish lists. When faced with the home of their dreams, they fear the inspection. What if there is dry rot, or a roof or foundation issue?

Most homes will need routine maintenance, and a good inspector will point this out. But it’s important not to let your fears get the best of you. Much of what the inspector comes up with during the inspection is for informational purposes only. Every problem does not need to be repaired right away.

The inspector’s job is to point out every issue he sees in the house. Ask him to explain how bad the issue is, and how long it can go before needing replacement or repair.

If an issue arises that needs immediate attention, go back to the seller and see if they will repair or credit you back to repair after you close.

“I’ll lose my deposit”

Buyers typically put in an earnest money deposit with a signed contract. Typically, this is 3 percent of the purchase price. The seller does not cash the check. Instead, the money sits in an escrow account and can’t be released without both parties’ signatures.

It’s nearly impossible for a buyer to lose their deposit. If you have an inspection, disclosure review or loan contingencies, work closely with your real estate agent to mark those timeframes.

If you need to remove these contingencies in writing, plan to firm things up a day in advance. If you are in negotiations around a contingency date, be sure to extend the contingency date to keep yourself under contract.

“I’ll lose the house”

If you find the home of your dreams, you may have to move fast. Particularly in competitive markets, many homes sell before the first open house to quick acting and super-motivated buyers.

If you see a new listing hit the market, be sure to let your agent know right away. Try to make an appointment to see the home as soon as possible.

Also, find out immediately how the seller’s agent plans to handle any offers received. Sometimes they will take the first offer, especially if it’s a good one. More often than not, the seller and the agent will have an offer date to review offers or ask for best and final offers by a certain day.

If you are travelling or busy with work, be sure not to miss out on your dream home. Be in constant contact with your agent, and flag potential homes that look like a great fit.

“My agent doesn’t have my best interest in mind”

Great agents are always on the prowl for new properties, checking out the market and protecting your best interest at all times.

Some buyers fear that their agent might have different motivations, or that they aren’t on the same page. If you have doubts, change agents. Never settle or take any random agent that comes along as your buyer’s agent.

You and your agent should be committed to each other. Sit down before you begin the process and speak to your agent, much like a job interview. And if you have any doubts about your agent’s abilities or motivations, find another agent.

“We’ll never find a house in time for…”

A real estate purchase should never be rushed. If you have a firm deadline creeping up, make a plan B.

For example, many buyers face an expiring lease or a school application deadline. If you are three months out from a deadline and you haven’t found a house, take the pressure off by putting an alternate plan in place.

Home buying is an expensive and complicated transaction. You don’t want to rush into a purchase and make a mistake. It’s much easier and safer to get another rental or find a temporary address or try some out-of-the-box idea. It may be a little inconvenient, but you can handle it.

If something scares you about a home, the buying process, or a third-party involved in the sale, voice your concerns. Listen to your voice of reason, and stick with your gut.

Many home buyers’ initial fears will fall by the wayside as the buyer gets into the market. Take it slow, and don’t be afraid to take a step back to allow time and space to think things through. It’s better to take your time than to let buying your dream home become a nightmare.

Source: Zillow Blog, Brendon Desimone
http://www.zillow.com/blog/biggest-home-buying-fears-184728/

Use Corporate Sales Strategies to Sell Your Home

Competition is keen in the corporate world. Just think of Apple VS Samsung or The Gap VS J Crew. McDonald's, Burger King and Wendy's. How do they make their phones, clothes, and burgers stand apart from each other? The answer is that they follow a strategy and you can do the same thing to sell your home.

Let's start with Apple and Samsung. Apple distinguished its products by going white when other hardware producers had black or metallic casings. Samsung imitated the success of Apple products by copying their interfaces, then took the inside lane by creating a bigger viewing screen. So what does that have to do with selling a home? Here are three ways you can use world-class corporate strategies to sell your home.

Paint it white. One reason Apple products are so hot is the cool factor. Their products are streamlined, minimalistic and great-looking. That's the same thing you should strive to do when selling your home. Like Apple did away with the hard drive, get rid of anything you don't absolutely need for a clean, uncluttered look. Paint your home a single color like white so your buyers can see the bones of the house.

Make it unique. There's a reason you can't shop anywhere else to get the fit you want. The great retailers like J Crew tell a story by creating their own branded clothes and accessories around a theme. You can do the same thing. Make your home stand out from the neighbors with a feature they don't have like a treehouse or a koi pond. Greet visitors with a tableau -- a porch swing decorated with fresh pillows and a tabletop with a tray of lemonades.

Add value. Recognize that competition is stiff, so you have to do something to make your home a little more attractive to buyers. While you can't supersize your home like a McDonald's burger and fries, you can offer more for the money like a meal deal -- a burger, soft drink and fries for less than they would cost separately. Offer touring bikes for the next family to enjoy around the neighborhood. Throw in the first year of HOA fees in exchange for a full-price offer.

You want your home to be memorable and inviting. Let the big corporations show you how it's done.

Source: RealtyTimes, Blanche Evans
http://realtytimes.com/consumeradvice/sellersadvice1/item/39051-20151009-use-corporate-sales-strategies-to-sell-your-home

Why You Shouldn't Hate Your Homeowners Association Dues

If you buy a house in a planned development, a subdivision or a gated community, you’ll likely have to join a homeowners association (HOA). Which means you’ll be faced with the prospect of paying annual dues, whether you like it or not. Condo owners often face these fees, too.

No one expects you to be happy about these payments, especially when they often come due right after the holidays. And it’s true that the dues can be spent for seemingly trivial events such as neighborhood parties, and that management fees for the associations can be steep.

The HOA can make and enforce rules such as what colors houses can be painted, what types and sizes of pets are approved, whether holiday decorations are allowed on properties — even what types of mailboxes are allowed. And it can enforce these rules with fines and threats of foreclosures.

These associations say their rules and methods are necessary to keep property values up and maintain or increase resale values of the homes in the community. You might question that. But the fact of the matter is that HOA dues also can benefit you greatly, in ways that you can see and in ways that you might never think about.

Visible benefits from your dues

In addition to enforcing some degree of uniformity in your housing or condo development, the best-known function of homeowners associations is taking care of the community’s common areas. That includes landscaping — mowing the grass, planting and pruning trees, and taking care of flowers, lakes and clubhouses.

HOAs also operate swimming pools, gyms, and other amenities open to residents. Most also schedule regular pest control in common areas, and some set up garbage and other services.

Seems like these are pretty useful benefits, right? And there’s more to come.

Not-so-visible benefits

You can understand easily how you benefit from landscaping and swimming pools and gyms and the rest. But one of the real advantages of paying HOA dues comes when the association uses them for insurance for the condo or housing development. Why does a housing or condo development need insurance? We’re glad you asked.

Property insurance

This protection covers residents for any physical damage that happens to the common areas — particularly those clubhouses and other amenities mentioned earlier. Much like standard homeowners insurance, this coverage will help when there is damage from fire, wind, hail, and other covered perils.

This is particularly important in condo developments, because it also protects the buildings that house the units from the perils mentioned above. It’s up to the condo owner, however, to protect the contents of the condo.

What if the housing or condo development didn’t have any or adequate property insurance? Then the HOA would level special assessments against all the home or condo owners. Depending on the nature of the damage, that could result in you paying far more than your dues to make the development whole again.

Liability insurance

This is one of the most important parts of an HOA insurance policy, because it protects residents of a development if someone gets injured on common property. An injury could result in HOA members being sued, and legal costs and any award in the case could run into the hundreds of thousands of dollars, possibly more.

Why is this your concern? Because, again, the HOA could levy special assessments to raise the money to pay for the case. And remember, you’d have no alternative but to pay the assessment — otherwise, your home could be in danger.

Directors and officers insurance

Again, if someone — say, another resident — sues the leaders of the HOA, you would face the wrath of the courts just as much as the directors and officers. And again, you could be subject to a special assessment.

Employee dishonesty insurance

This would replace your — and other residents’ — HOA dues in case an employee steals money from the association.

Give your dues their due, but …

The almost-bottom line: Your dues, especially the part of them that goes toward HOA insurance, protect you from the prospect of paying larger amounts. So the dues do perform a useful function.

But here’s the real bottom line: You shouldn’t have to pay any more than is necessary. That means you should take the initiative. Make sure the HOA is spending your money wisely. Is it soliciting bids for the landscaping business? Does it seek several quotes for the insurance coverage before committing to a provider?

In other words, don’t hate the fact that you have to pay HOA dues. But don’t let your association get away with wasting that money, either. Your dues perform an important function that could save you money in the long run.

Source: Zillow Blog, Shannon Ireland
http://www.zillow.com/blog/dont-hate-hoa-dues-184748/

First-Time Home Buyers Have One Big Hurdle to Overcome

It’s no secret: Housing costs are expensive. Rising rents and a strong real estate market are making it harder for first-time buyers to get a piece of the American dream.

Buying a home means getting these four areas of your finances in shape:

• Credit
• Debt
• Income
• Assets

If you do not know where you stand and if you want to make an offer on a home, getting pre-approved is an important first step. Getting your financial house in order should be priority No. 1 if you intend on buying a home now or down the line. A pre-approval involves having a lender ensure that your credit score is sufficient, you have the cash to close on the home, your income supports the debt load plus your other liabilities, and you have the financial character and capacity to make a big-ticket purchase. While credit score, income, and debt allowance are all important puzzle pieces, your cash to close reigns.

The hard reality

There are no more first-time buyer programs available. All the first-time buyer programs that did exist have long since expired.

While there is a possibility of finding a county, state, or HUD program to assist with down payment, the next order of business is coming up with closing costs, which equates to just about 2.5% of the home price (not the loan amount). For a $400,000 home, that’s $10,000 needed just for closing costs, independent of the monies used for the down payment. The challenge that first-time buyers face is having enough money both for the down payment and closing costs.

Here’s what will happen in the following situations:

If you have an excellent credit score, but you don’t have the cash…

Then your home-buying project will get put on hold until you have enough money to seal the deal.

If you have very strong income, even with little debt, but you don’t have the cash…

Then you’re still at Square 1.

To purchase a home, you’ll need at least a 3.5% down payment to get your foot in the door and enough income to support financing a high debt load, due to financing a bigger loan size because you have less cash down.

Here’s a quick cheat sheet for total cash to close on various purchase price points:

 Home price $200,000: down payment + closing costs = $12,000 needed
 Home price $300,000: down payment + closing costs = $18,000 needed
 Home price $400,000: down payment + closing costs = $24,000 needed
 Home price $500,000: down payment + closing costs = $30,000 needed


These examples assume using a 3.5% down FHA Loan. Notice for every hundred thousand dollars in purchase price change on an FHA 3.5% down loan, the total cash to close increases by $6,000. If you’re looking for a home in the midrange, say $350,000—that would be an additional $3,000 needed, totaling $21,000, to close escrow on such a home. Put simply, for every $50,000 increment in purchase price, you’ll need $3,000 more in cash to close.

Mortgage tip: A conventional loan with 5% down could be a better option for dropping private mortgage insurance in the future, as well as avoiding FHA’s upfront mortgage insurance premium, a pricey 1.75% of the loan amount.

Acceptable sources of cash

If you don’t have the cash, there are other practical sources of cash to consider for your home purchase:

• Gift monies—an excellent source of funds used to buy a home, as long as the money can be documented with an executed gift letter; there are no mortgage gift fund limitations.
• Retirement funds—this includes stocks, bonds, IRAs, and 401(k); all of these accounts are acceptable sources for borrowing funds should your financial situation merit doing so.
• Cash value life insurance—this is another form of acceptable funds to procure cash from for your big purchase.
• Security deposit rental—as long as this money can be documented, and you have a working relationship with your landlord, security deposits are acceptable.
• Changing jobs—This is not a lending red flag like it used to be, and, in fact, making the plunge could be to your advantage if you can generate more income to enhance your savings.

Home lending is getting easier

The mortgage requirements for buying a home are loosening. When buying your first home, consider whether you can support a mortgage payment and have the cash necessary for the big-ticket upgrade (this calculator can show you how much house you can afford). If you don’t have the money saved up, or if you don’t have access to the funds, or if the project is on the longer-term projection—that’s OK as long as you’re doing everything you can do to better your financial position by continuing to save, while keeping debts low and manageable. In the meantime, keeping your credit in good shape, or working toward better credit, can give you access to lower interest rates, which can also help the affordability of this big purchase. You can get your credit scores for free every month on Credit.com to track your progress.

Source: Realtor.com, by Credit.com
http://www.realtor.com/advice/finance/first-time-homebuyers-have-one-big-hurdle-to-overcome/

Home Buyers: Don’t Wait Forever for ‘The One’

I've had more than a few buyer clients who were too picky and had too unrealistic expectations for their own good. As a Realtor, I look at properties all the time and each one has its share of pluses and minuses. I always tell my clients that they are never going to get 100% of what you want for the property you are looking for.

For example, a first time home buyer client of mine found a property in the good school district neighborhood she wanted, within her price range, enough square footage, the number of beds and baths, updated kitchen, etc., etc., BUT this particular home didn't have hardwood floors. I had to remind my buyer that given the number of properties we both spent valuable time looking at, we both knew there wasn't anything out there that came this close to what she was looking for. Even though she was aware of this fact, she came VERY close to passing on the property. So I had to remind her that hard wood floors are a relatively easy fix for a few thousand dollars that she can always add later, but if she passed on this property, she'll never come this close again with a home in her price range, especially seeing how the market was appreciating in value and would quickly be out of her budget.



When you’re dating, you can spend years searching for the perfect relationship only to—possibly—wait too long and miss out on something great. Suddenly, over your sad microwave meal and bottle of cheap red, you’re looking back on your life choices, wondering what could have been if you hadn’t been so darned picky.

Well, the same goes for house hunting. You can drive yourself crazy searching for your dream home. You’ve found houses that have come close, after all. So the perfect one is bound to appear soon, right?

Not necessarily. We know the hunt can be emotionally draining, but at some point you have to go from house hunter to home owner.

We’re not encouraging you to make a choice that will fill you with buyer’s remorse. But to borrow a line from the Rolling Stones: You can’t always get what you want, but if you try sometimes … you get what you need.

We can’t give you love advice (and trust us, you would not want us to), but we do happen to know a few things about real estate. Here are three questions to ask yourself; the answers will help you determine whether it’s time to settle on a home that might not be what your dreams are made of.

1. Are my expectations realistic?

Everyone has a dream home. Mine is a Craftsman with Victorian high ceilings, art deco details, and a Mid-Century Modern feel. But here’s the thing. That Frankenstein of architectural styles doesn’t exist—and your dream home probably doesn’t either.

“There is no such thing as a ‘perfect home,’” says Ryan Fitzgerald, Realtor® and owner of Raleigh Realty in Raleigh, NC.

There’s always going to be something not so lovable in each house you view. The key to finding the right home is setting realistic expectations.

“You can find a home that meets almost all of what you are looking for,” Fitzgerald says.

Make a list of your dream features and amenities before you start house hunting—but be willing to let some of those features go once you start looking at properties. It helps to score each feature on a scale of 1 to 10—that way you (and your partner, if you have one) are on the same page about which amenities are deal breakers and which are simply nice to have.

2. How many properties have I viewed?

Once you’re house hunting, it can be nearly impossible to decide when you’ve looked at enough houses. After all, the perfect house could be listed any day now.

Go ahead and view online listings as much as you want. There’s no harm in real estate stalking in your spare time, but you should set a limit for actual viewings.

“If you go view more than eight homes [without finding anything], there’s a good chance you’re confused as to what you’re actually looking for,” Fitzgerald says. “You’re trying to piece together a home that doesn’t exist.”

If you find that you’re searching for your own Frankenstein (it won’t work, I promise), take a moment and ask yourself how many homes you’ve visited. Have you reached the (self-imposed) cap? If so, make a list of each property’s strengths and weakness, and then get ready to compromise.

3. What am I willing to compromise?

If you’ve set realistic expectations and looked at more than a few houses, it’s time to start making some tough decisions. It might feel like settling, but you’ll probably thank us later when you’re finally a homeowner.

Just make sure you’re not compromising on something you’ll regret later.

“If you’re going to compromise, do not compromise on location,” Fitzgerald says.

The real estate adage “location, location, location” bears repeating here. After all, a great house won’t matter much if you’re driving two hours to work every day or the only nearby grocery store closes at 7 p.m.

If you’re not sure where to compromise, ask your Realtor. That’s what they’re there for.

The exception to the rule

After months of searching (especially in competitive markets), you might feel the pressure to choose something—anything—just to achieve homeownership and stop throwing away your money on rent.

We’re going to contradict ourselves a bit here and tell you this: Sometimes it’s OK to keep looking. When you’re deciding on a home, you should always consider the current market, even if it means you’ll be shopping for a little while longer.

“If you are having trouble finding a home and you have proper expectations, don’t settle—especially if you’re in a hot market,” Fitzgerald says.

If you’re in a sellers’ market, homes can go quickly and you might just be missing the window of opportunity. It might make sense to wait a little longer than rush to try to beat out an overzealous buyer.

After all, competition can breed short-lived desire—and you don’t want to be stuck with a dud after the admirers have moved on to the next attraction.

Source: Realtor.com, Angela Colley
http://www.realtor.com/advice/buy/when-should-you-settle/