Will Maryland Pass a New Foreclosure Bill?

Some people have expressed some concern over possible ramifications of the new foreclosure bill that Maryland Governor Martin O'Malley would like to see passed in that state.

The basics are that the bill stipulates that lenders have to be able to verify that they made efforts to modify a loan before they begin the foreclosure process and give homeowners the paperwork necessary to contest the foreclosure. In addition to this, lenders would have to pay $100 each time they issue a foreclosure notice.

Most legislation is signed with the intent to do good and establish order, but there are always unintended consequences, no matter the purpose of a new law. While it seems clear that the idea is to help homeowners, lenders are not exactly thrilled about this bill. The idea is to stop predatory lenders. Some experts say it will discourage lenders from doing business in Maryland and that it puts all contracts on shaky ground.
What do you think?

Think Twice Before Adding Someone to Your Deed

The Washington Post’s newest real estate columnist, Harvey S. Jacobs, wants to rain a little on your post-Valentine’s Day love parade. In a column entitled Love’s red alert: Don’t add someone dear to your deed, he outlines reasons why you might want to think twice before adding someone’s name to the deed of your property.

Whether it is the relative that you want to inherit the home or girlfriend or boyfriend, anything that happens in that person’s life will affect your property. Even if you take a break-up or argument out of the equation, there is still the matter of having someone else who can control what happens to your property. You will not be able to refinance or sell without their approval. And whatever happens to their credit (good or bad) can alter what happens to your home.

We have seen couples who cohabitate purchase a home together or add each other to deeds, only to find that they split and that the law doesn’t view them the way it views married couples.

And for those of you who want someone to inherit your home, Jacobs recommends that you leave it to that person in your will.

Lenders Must Inform Consumers if Credit Rating Affects Loan Rates

A recent Washington Post column alerted readers to the fact now "rules require lenders to alert consumers whenever derogatory credit data cause them to be charged higher rates, higher down payments or less than optimal terms on a "risk-based pricing" system."

This will help protect not just the individual consumer in question, but other consumers as well. How? Well, what some of you may not have known was that some of the wave of foreclosures in the housing crisis was a result of lenders deciding that instead of rejecting applicants that did not fit their criteria, they would just give them loans at higher rates. Giving homes loans to high-risk borrowers at increased rates, masked problems that rose to the surface later.

You can take matters into your own hands by monitoring your credit own reports and making sure that they are free of errors. That way, when you go to get a loan, you will already know your rating, will have a good idea of where you stand, and will not need any alerts from a lender.

Benefits of the Propsed 'Cash for Caulkers' Program

Late last year, we told you about the possibility that the federal government would enact a 'cash for caulkers' rebate program that might work in similar fashion to the 'cash for clunkers' program that was initiated to help struggling automakers.

We have heard people wondering aloud just why the government would choose to help homeowners in this way--after all shouldn't they concentrate their efforts on sluggish home sales and not on helping people who already own homes to fix them up?

We can tell you that one of the reasons for the proposed program is that the construction industry is also seriously ailing. And putting people back to work is one way to assist all areas of the economy.

Another reason for this program is putting some action behind our nation's ongoing commitment to "going green." If we can get a large part of the American home-owning public to make their homes more energy efficient, this will go a long way towards cutting down on carbon dioxide emissions and conserving resources.

More First-timers Are Getting into Real Estate

Earlier this week, a friend of ours updated her Facebook status to announce that she was officially a homeowner. She had just closed on her house. For years, this friend had said she didn't see herself ever buying a home and she was content to rent. However, the tax incentives offered by the federal government had her singing a new tune.

According to the National Association of Realtors, first-time buyers have really stepped up and made a difference in the housing market. Data from a survey NAR conducted this fall indicated that the percentage of homes sales that went to first time homebuyers rose six percent (from 41 percent of all transactions last year to 47 percent this year).

If you are in Maryland and think you are finally ready to take the plunge, call John Day at 410-507-2909 and he can get you started. John Day is an experienced real estate professional who specializes in selling and buying homes in Anne Arundel County, Calvert County, Charles County, and Prince George's County.

Get a Second Opinion on Chimney Repair

If Santa slides down the chimney and in addition to gifts, leaves you a note suggesting that you might want to get your chimney inspected, you may want to pay attention, but don’t just take his word for it.

According to a recent article in The Washington Post (The chimney fix: How to keep it working without wasting money),
“Experts recommend hiring only industry-certified companies for inspections and being cautious when offered a discount on a routine cleaning.”

Unless you yourself are a chimney expert, it will be hard for you to determine just what is going on inside your chimney. So you should not be afraid to get a second or maybe even a third opinion. Although you are not a chimney expert, you can still arm yourself with information before having your chimney inspected because this may help you to at least have a general idea of the recommended repairs sound reasonable.
Also remember that when you sell your home, you will need to disclose any recommended repairs.

Buying a Home on a Busy Street

Conventional wisdom says that if there is one place where you do not want to buy a home, it is near any kind of highway or on a very busy street. Many times when driving down a major traffic artery, one feels for people who are attempting to get out of their driveways and cannot because there are so many cars whizzing by. But who’s to say that living on a street that sees a lot of traffic is all bad?

The Washington Post published an article (Life on the highway) to examine the pros and cons of buying a home on such a street. Some of the cons could include: noise pollution, compromised air quality and a lack of off-street parking.

One of the biggest pros is that the prices for homes on major roads may be lower that the prices for similar homes in the area. Other advantages may be access to the major road itself and to nearby commercial establishments, being a priority when it comes to snow removal and having a home that is simple for friends and family to locate.

New Gov't Program May Standardize Short Sales

The Washington Post recently reported that the federal government has plans for a standardized short sale plan that we will be hearing more about in the months to come.

If you did not know already, a short sale is when the bank agrees to accept less than what a homeowner owes on a mortgage. Why would a bank do this, you might ask--isn't their main goal to make money? Yes, but if a bank believes that permitting a homeowner to do a short sale will bring in more money than a foreclosure will, they are more likely to agree to a short sale.

The recent Washington Post article states:

"This usually means you need to bring in a real estate agent who knows the ropes..."

If you are considering a short sale and own a home in Maryland, then John Day is an knowledgeable agent with experience in negotiating short sales. Call him today at 410-507-2909 or click on the title of this blog post to learn more.

New Gov't Program Might Help With Energy Efficient Home Improvements

Of course we don't want to count any stimulus chickens before they are hatched, but some people were cheered at the news that President Obama is considering a new program that has been dubbed, "Cash for Caulkers." As you can guess, that name was modeled after the name of the “Cash for Clunkers” program that allowed people to get help in buying cars that were more energy efficient.

Under this new program homeowners who buy energy efficient appliances like washing machines, refrigerators or get new energy efficient windows and installation installed will be able to save money on both the products and the installation costs.

There are no firm guidelines yet, but it is believed that the cap for such a rebate will be $12,000.

In addition to the stimulus funds, energy-conscious homeowners would get under such a plan, they would also see energy costs do down over time. And they would get the added bonus of knowing that when they sell, energy efficient appliances and additions will be an important selling point.

FHA Gets Stricter with Condo Buildings Too

We have already mentioned that new rules and changes brewing at the FHA could have detrimental effects on the housing market and we must include condos in that mix, along with stand-alone residences.

The FHA will now limit the number of buyers in a condo building who can receive an FHA loan. This move will shut out many potential condo buyers, since the FHA is behind about one out of every four new loans. It also puts added pressure on developers—so much so that some developers may have to cancel new projects since they will not be able to be certain of finding enough buyers who do not need to rely on the FHA for a loan.

In addition to the rules that restrict the number of FHA-backed loans for a condo building, they agency has also decided to up the ante on the number of condos that must be pre-sold before they will insure loans in a condo building. For now, 30 percent of the units in a building must be pre-sold to get FHA backing; in 2011 that percentage will increase of 50 percent.

Read more on the stricter FHA guidelines:

Homebuyers Hurt if FHA Changes Rules

FHA Guidelines May Become Stricter

Recent Drop in 30-year Mortgage Rates

Last week some news outlets reported that the average interest late for a 30-year mortgage had dropped to a very low point-4.71 percent. If you were not already aware, this low rate is influenced by the fact that the federal government is really trying to encourage homeownership. Homeownership is the cornerstone of economic prosperity and the government hopes that an increase in homeownership will have a ripple affect throughout our shaky economy.

Although the federal government would love to see you buy a home, this does not mean that buying a home is without its challenges. Lenders have become stricter about lending people money to buy homes. After all that has happened with high numbers of people defaulting on their home loans, you can see why lending institutions are wary.

If you think you would like to buy a home and feel that you are financially stable, this is great time to consider homeownership. With low interest rates and owners who really want to find qualified buyers, you may be pleasantly surprised.

Also read:

Are You Ready to Buy a Home?

Creating a Home Office that Qualifies for a Tax Deduction

Last month, The Washington Post published an article about how people are choosing to take extra space in their homes and turn these spaces into home offices, rather than using them for recreation.

One of the upsides of the economic downturn is that many people who have lost jobs are taking this as an opportunity to start their own businesses. If you are one of those people and you did not previously work from home, you may want to do some research to see if you are eligible for a home office deduction.

This deduction is not for everyone and you have to do a lot more than place a desk in a corner of a room. And if you tend to do work at the dining room table, you cannot claim that you have a home office. The IRS has very specific guidelines (see the link below) and if you check them out before creating your home office, you can be certain that you meet the requirements to claim the home office deduction.

Claiming a Deduction for Your Home Office

Go Green when Choosing Items for your Home, pt. 2

Earlier in the week, we mentioned how reading an article in The Washington Post on how to go green in selecting countertops seemed to be a good primer on how to go green when looking at any product for your home. We recognize, of course, that some of these notions are ideal and not always possible. Still, it is good food for thought to consider-

How far the product traveled to get to you
The less traveling a product does, the better. This means that companies that are really into energy conservation will minimize how far raw materials travel and then do their best to sell their wares locally.

The product’s effect on indoor air quality
You will breathe easier if you know that while you are helping the environment, you are buying products that do not emit volatile organic chemicals (VOCs).

How long the product will last
As we try to do away with so many disposable things, you want to a)get things that you can use for a while and b) purchase items that can be reused by you or someone else when they do wear out.

Go Green when Choosing Items for your Home, pt. 1

Not too long ago, The Washington Post published an article on How to go green when choosing countertops. They tips and criteria they gave on picking out the most environmentally friendly and energy efficient countertops could actually be applied to any number of products that you want to include in your home.

Their recommendations included checking out--

The raw materials that are used to make the product
It is best to buy things made from renewable materials, but if you want to take it a step
further, try to buy objects made from material that had been recycled. This means that the object you buy is made with things that are being re-used rather than wasted.

The energy it took to make the product
This kind of information is not easy to find, but if you find a company that provides it, you know they are definitely concerned with caring for the environment. The idea would be if they told you how much energy it took to get the raw materials and the energy it took to make the product they are selling.

FHA Guidlines May Become Stricter

We've all tightened our belts recently, so as you would suspect businesses and government entities are doing the same thing. Even though some have declared the recession to be over, we are not in the clear yet.

The Washington Post recently reported that hopeful home buyers should "Expect Tightening from the Federal Housing Administration (FHA)" and gave its readers some idea of what this may look like, including:

Higher premiums for mortgage insurance-It may be possible to do this without adding a hefty cost to what borrowers each month.

Higher down payments-Those is favor say that this will cut down on the risk of foreclosure. Those opposed say that it put the FHA's mission of helping those who are not well-off in jeopardy.

Higher standers for credit-As lenders go, the FHA has been generous to those with less-than-perfect credit histories, but some in the industry say it is time to raise the bar, again to minimize the risk of foreclosure and late payments.

Congress Extends Home Buyer Tax Credit, pt. 2

On Monday, we talked about how the first-time home buyer tax credit has been extended into next year. It was originally slated to end November 30, 2009. This is good news for those who qualify who still want to buy their first homes.

The extension went beyond making things easier for first-time homebuyers; it also includes people who are not buying a home for the first time. If you have lived in your home for at least five of the last eight years, you too can get a tax credit, albeit a smaller one than a qualified first-time home buyer would get, but any break on taxes is a good thing, right? Those of you who fit into this category may be able to get a $6,500 tax credit on a home if you buy it between November 6, 2009 and April 30, 2010.

Those who take advantage of the first-time home buyer tax credit or the tax credit for those who are not first-timers, have to stay in the home for three years if they do not want to have to repay the tax credit.

Congress Extends Home Buyer Tax Credit, pt. 1

We've made a big deal of the tax credit that the government extended to first-time home buyers and warned you when time was running out to take advantage of this amazing opportunity--after all we could not be sure it would renewed.

Well, those of you that missed out can still take advantage of it because Congress has decided to extend the deadline. Now, eligible first-time home buyers who purchase a home can get the tax credit. And those who sign a contract by April 30 and close by June 30, 2010 will also be able to receive up to $8000 from the government.

So some who you who may qualify may have been in the middle of your property search and felt that you would not make the November 30 deadline. It is good that you did not try to rush and buy a property just to get a tax break. Now, you can continue to take your time and know that you can get some assistance from the federal government.

Going Green Needn't Take all Your Greenbacks

The Washington Post recently ran a set of articles all about how homeowners can make "green" improvements to their homes in order to save money and possibly get money back on their taxes. There are so many ways that you can “Go green and get green” that if you are able, you should definitely take the time to make your home more energy efficient.

But there was sidebar aimed at those who would love to benefit from such green improvements, but do have enough money to make the initial investment.

Before there were ever any special green products or tax incentives, there were plenty of ways to conserve money and save energy.

As the article noted, one of the simplest things you can do is seal any air leaks around your windows and doors. Caulk is not expensive, but you will find that sealing saves you money.

Check out the rest of the article:

These projects aren't in my budget. What can I do?

Open House Thieves Caught

Earlier this month, The Washington Post reported that are real estate agents were nervous because there had been a rash of thefts at open houses that were held on weekends. It was evident that whoever was committing these crimes knew what to do--they were taking things like jewelry that they could carry away easily, without being noticed.

When the thieves were caught and arrested earlier this month, there were nearly 20 open warrants out for their arrest. The police were able to arrest the culprits, in part because of the help provided be alert real estate agents. One of them had even written down the license plate of the men who were eventually arrested for the crimes.

We have mentioned before that it is very important that you protect your valuables before an open house. It is sad, but not everyone who comes to an open house is interested in real estate. You certainly should not leave any valuables lying around in the open, but do not think that putting them in a drawer will keep them safe. You should keep valuables under lock and key.

Once You Move, Don't Isolate Yourself

Last week, we recommended that you get the scoop on a neighborhood before you move. And this week, we want to remind you that although you may have purchased a gorgeous new home, you do not have to sit in it all the time.

The Washington Post recently ran an article about “Fighting isolation after relocation”. The DC area is full of transients—people who come here for work, but have no roots or family ties in the area. It is also a place where people who want a certain kind of house often decide to live further away from the city than they’d like.

People in both of these categories could benefit from joining groups like Area Newcomers Clubs, which are set up to help people adjust. Traditionally, moving is among the top situations that make it onto lists of what stresses people the most. You can ease your way into new surroundings by meeting people who are in the same boat.

And once you have adjusted, you can reach out to other newcomers. People who feel welcome make better neighbors and that makes for better neighborhoods.

Experts Expect More Foreclosurs Next Year

Sadly, despite all that we have been hearing about how the economy is poised to bounce back, experts are still predicting that foreclosures will increase in the coming year. At the same time, sales of foreclosed homes have helped to boost some ailing real estate markets.

Even with the rebound that is expected, we will still have some echoes of the recession to contend with next year. Financial experts also think that unemployment will rise. And as we have seen all too often, the loss of a job can lead to the loss of one’s home.

If you are worried that you might lose your home to foreclosure, it is better to take decisive action sooner rather than later. Some people who were to scared to do something might have been able to save their homes or keep their credit from being ruined had they acted sooner. You do not have to wait until things get really bad. Call John Day at 410-507-2909 and he can help you decide what to do.

You May Still Be Able to Get the First-time Homebuyer Credit

Right now the clock is ticking for those who think they want to take advantage of the first-time homebuyer federal tax credit. The media and nonprofits related to housing are really trying to get the message out so that people who are eligible can take advantage of this credit.

As you know, despite our best intentions things do not always go as planned, so if you were thinking about it and thought you’d get to it later, the time is now. If you didn’t know there are new guidelines regarding appraisals and that process might take longer than you expect.

If you were a first-time buyer thinking you might get a home via short sale, the window has closed to take advantage of these home-buying opportunities before November 30 since there is not time to hear from a bank and settle.

However, you may still be able to buy a house through a traditional sale—if you move quickly.

Organizations like the National Association of Realtors are working very hard to convince Congress that they should extend the deadline for this tax credit past November 30.

When People With Good Credit Default on Mortgages...

A study conducted by national credit bureau Experian and Oliver Wyman, a consulting company, came up with some surprising stats about people who walk away from their mortgages.

In addition to those who fall on hard times and walk away, there area number of people who “strategically default”—meaning that they walk away on purpose and not because they are overwhelmed. In fact, these people do not have sporadic records of payment; instead, they keep up with payments regularly until they decide to stop. The study found that people with high credit scores are 50 percent more likely to strategically default than people with low credit scores.

There are many indications that people who default strategically do so with full awareness that their credit records will take a hit, but they do it anyway because they think this decision will eventually pay off. The study simply gathered this information and did not pass any judgment on those who make a calculated decision to stop paying the mortgages on their primary homes and investment properties, but if the pattern continues, we are sure that someone will.

Use Social Media to Help Sell Your Home, pt. 2

Just last Friday, we suggested that you make use of social media as you sell your home. And we recently heard a few great stories about how people are doing just that using Twitter.

One of the co-founders of Twitter used his media platform to advertise the sale of his home, by mentioning the sale in a tweet. Tweets are limited to 140 characters, so your message needs to be simple and to the point. If possible link to pictures of the house--either those that are already online or using a photo application set up for Twitter such as Twitpic. Words are great, but a picture is worth a thousand words and you need to use every possible toll you can to attract buyers.

Another man found that he was having little success selling his home, so instead of just mentioning it in one tweet, he set up a Twitter feed with his home selling process as the main focus. This attracted the attention of local media who were more than happy to tell his story and give his house even more exposure.

There is Talk of Continuing the 2009 First-Time Homebuyer Tax Credit

Yesterday we reminded you that time is running out to take advantage of the 2009 tax credit for first-time homebuyers.

Unlike the recently ended Cash for Clunkers program which was designed to boost the auto industry and which some people love and others love to hate, there seems to be a general agreement that the 2009 tax credit for first time home buyers is a good thing. It is such a good thing that members of congress and real estate professionals would like to see it continue beyond its current deadline.

According to the National Association of Realtors the increase in home sales during the second quarter of the year is due, in part, to the tax credit.

It is great to see that this program has so much support in its present form. So what is even more exciting than that is knowing that there is talk of expanding it to go beyond first-time home buyers. No one knows what will happen, but there are some lawmakers who would like to see the this tax credit extended to all Americans who want to purchase a home and not just to those buying a home for the first time.

Take Advantage of New Reverse Mortgage Limits

The Washington Post recently reviewed new reverse mortgage laws, noting that for some senior citizens “Reverse Mortgages Come to the Rescue” since the recent financial downturn has taken a toll on their retirement funds.

In the past, reverse mortgages have been used for additional funds for people who plan to stay in their homes, but as the Post notes, you can also use a reverse mortgage if you plan to relocated or downsize to a house that is not as large as your current home.

Some of the stipulations to take advantage of the raise in the reverse mortgage limit (from $417,000 to $625,500) include a minimum age requirement of 62 years and taking out the mortgage on a primary residence that is completely (or close to being completely) paid off. That higher limit for reverse mortgages will only be in effect until the end of this year, unless the government decides to extend the program.

And note that getting a reverse mortgage is not free; there are fees to be paid, as there would be with a regular mortgage. Fees include closing costs, interest and an origination fee that is not to exceed $6,000.

A Cautionary Tale from One First-Time Home Buyer

The tax credit for first time home buyers are a great incentive, but your deal may not be so sweet if you are not careful. Even with the clock ticking on the time that the credit is available, you still want to be certain that you are getting the home that you really want.

In an article about Rookie Home Buyer Mistakes, The Wall Street Journal detailed one young person's hasty attempt to take advantage of the $8,000 that is available to those who fit the definition of first time home buyer.

This man quickly decided on a repossessed condo and he felt the pressure because a bidding war broke out while he was out of town. He mentions several things that he had not considered, but all of those would not have mattered as long as he was able to change his mind without penalty. One of the biggest regrets this man had was that he did not spend more time reviewing the contract. He realized that he could not back out of it without losing his earnest money deposit. He found a loophole that let him out of the contract, but everyone is not so lucky.

First-time Home Buyers Helped Recent Increase in Home Sales

The real estate industry has been cheered by June's double-digit increase in home sales and much of this increase has been fueled by first-time home buyers.

In Washington DC and its surrounding areas the homes that are selling the fastest are the ones that are priced at half a million or within about $100,000 of that price. These homes are attractive to young families since they often have the amount of space that these families want, but are not Higher-priced homes are not selling quite so fast, but they are still selling.

Another thing about our area is that while no one would say the job market is booming, we still have more job openings than other cities. With the government as one of the top employers, transplants are still coming into the area and they need places to live.

Whether you want to sell or buy, you should not fear if you feel that time is right for a real estate transaction. John Day specializes in helping people sell and buy homes in Anne Arundel County, Calvert County, Charles County, and Prince George's County.
Call John Day at 410-507-2909 if you are ready to buy or sell in one of these areas.

Home Sale Rates Have Increased Dramatically

Last month, U.S. home sales increased more than they have increased in the last eight years. According to the Commerce Department, rates for home sales went up by 11 percent in June.

This is very encouraging news for those of you who either have a home on the market or have wanted to put your home on the market, but have been reluctant to do so.

Good news in real estate is really good news for everyone. Whether you work in real estate or hope to sell or buy, it is easy to see how the recent uptick in real estate sales benefits you. But really, it is good news for all of us because of the way the real estate industry affects the economy as a whole. Empty homes are a blight on many neighborhoods. And with fewer people paying property taxes, municipalities have fewer resources. While it is possible for anyone, home owner or renter to be respectful of their property and area, it is accepted that home owners are more likely to take a much greater interest in their area.

New Loan Guidelines from the Federal Reserve

The rules in the real estate game change all the time, but sometimes they change in your favor. Prospective buyers will be pleased to learn that new guidelines from the Federal Reserve will offer them added protection. These new stipulations will be in place as of July 30.

-Your lender will be responsible for getting you the initial disclosures about mortgage expenses within three days of your loan application. You can walk away if they do not do this.

-Your lender cannot exact any fees (with the exception of a reasonable fee to check your credit) unless they have given you a disclosure about the costs associated with a loan.

-Your lender will also have to get a copy of the real estate appraisal to you three business days before the day that has been set for your closing.

-To give potential buyers more time to think about finalizing a property purchase, there will now be a mandatory waiting period between the time a potential buyer gets the early disclosures and the closing date. As a buyer, you will get seven days so that you can be certain that you want to make the deal.

These are just some of the changes that will start at the end of the month. For more information see this statement from the Federal Reserve regarding new loan guidelines.

How Newspapers Can Help your Garden

There is a lot of talk about how the newspaper industry is failing these days, which is unfortunate because newspapers are very useful to homeowners and to the real estate industry. In addition to newspapers being great sources of general information, a good place to advertise real estate sales and a useful for information on real estate, I've recently read (in a newspaper, of course) one more reason why we need to keep newspapers around: they make great compost.

Some gardeners have discovered that when it comes to compost, you should look no further than your local newspaper. One gardener found that where he used a newspaper for compost, the crops were bigger, and the ants were fewer. Apparently, newspaper compost also helps keep weeds at bay and keeps soil cooler and moister than some other kids of compost. No one has done a scientific experiment to figure out just why this is so, but the vice president of operations at the newspaper mentioned in the article I read, did say that his publication is printed on recycled paper using soy-based ink.

If you are looking to use recycled materials for mulch and do not regularly get a newspaper, you can also make mulch from leaves and old grass clippings.

New Home Appraisal Guidelines Cause Headaches for Some

New legislation often has unintended consequences. And this is certainly the case with new laws that were intended to lessen the chances of fraud when it comes to home appraisals. These new guidelines are called the Home Valuation Code of Conduct. The purpose of this new code of conduct was to make sure that appraisers do not assign inflated values to properties because they feel pressure from a lender, a mortgage broker or a real estate agent. Unfortunately these new guidelines are slowing down the home buying process for some people are frustrating real estate professionals, buyers and sellers alike.

The new guidelines stipulate that mortgage brokers cannot order appraisals on their own. Mortgage brokers have to rely on mortgage lenders to request appraisals. And the lenders and the brokers are not supposed to discuss property value with appraisers.

It seems that at one time many homes were given an inflated appraisal value. Now the problem is the opposite: people are protesting that home appraisers are undervaluing their homes. With so many foreclosures on the market, some appraisers are valuing brand new homes and homes that are going through a standard sale alongside the sale prices for foreclosures.

To learn more about fair market value, read:
Determining Your Home's Fair Market Value

If you want to sell your home today and are concerned about getting fair market value, contact John Day at 410-507-2909 or 301-395-1489.

Can a House's "Reputation" Affect Its Sale?

Do you think that a house's history can affect its sale?

It is true that people are sometimes reluctant to purchase homes that have a verifiable history of violence. On the other hand there are others who are eager to purchase such homes because of their notoriety.

But what about homes that have had, not a history of violence, but a history of discord? Right now, the former home of Jon and Kate Gosselin (the parents of twins and sextuplets who are the subjects of the television show Jon and Kate Plus 8) remains on the market. There is some speculation that it is not the so-so real estate market that has stood in the way of the sale. Instead, some think that the couple's unfortunately very public marital woes, combined with the fact that it a lot of the house of has been filmed that is a deterrent.

If you live in an area all your life, there is a good chance that you will know something about the owners of a home you are considering for purchase. Did you buy a house in your area that had a less than stellar reputation? Were you hesitant or did you dismiss speculation and focus on the house's location and desirable features?

First-time Buyers: Tips to Avoid Househunting Fatigue

Not too long ago, I mentioned the recent drop in foreclosure rates in the DC area. One expert attributed our area's drop in foreclosures to the fact that although things are not booming, our economy is stronger in comparison to other areas. We also have a large number of first-time home buyers who are starting to get less shy thanks to lowered prices and government incentives.

Some of you are ready to purchase your first home, but a little intimidated by all of the options out there. Don't worry, if you take it one step at a time, it won't seem so daunting. There are a lot of choices, but only so many that will really be a good fit for you. You will not find a perfect home, but you can find the home that is perfect for you without running yourself ragged. If you know what you want and are ready to view possibilities, you have to do more than just walk through. Here are a few tips--


1. Take advantage of technology--Use a digital camera to capture the houses on yout list.

2. Take Note--Write down your thoughts as well.

3. Don't Wait to Rate--Evaluate each home right after you leave.

DC Area Foreclosure Rates Drop

Some of us felt a little better after reading in the news last week that the foreclosure rate in the Washington DC area fell more than 30 percent from April of last year. Sadly, the foreclosure rates for the nation as a whole went in the opposite direction and have increased.

This is hopeful news, but it does not mean that we are out of the danger zone yet when it comes to foreclosures. If you are concerned that you may not be able to hold onto your home, be sure that you are getting help from a reputable organization. They may not be at the forefront of the news as they were in recent months, but dishonest people are still trying to take advantage of vulnerable people who seek assistance in avoiding foreclosure.

One way to steer clear of foreclosure is by selling your home through a short sale. If you are thinking about this option and have property in Anne Arundel County, Calvert County, Charles County, and Prince George's County and are thinking about give John Day a call at 410-507-2909. He can analyze your situation to determine if a short sale will work for you.

Take Advantage of 2009 First-Time Homebuyer Tax Credit

You are probably aware that Congress passed laws that would give first-time home buyers an $8000 tax credit. Perhaps you have thought about it, but have procrastinated about looking into whether or not you are eligible. To inspire you to make that move if you fit the bill, we have outlined some of the basic provisions below.

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You must purchase a home before December 1, 2009. (Eligibility began on January 1, 2009.)

Under this legislation, a first-time homebuyer is anyone who has not owned a home in the past three years. If you are married, your spouse also needs to fits these criteria for the two of you to buy a home.

You must buy a primary residence--this includes condos, townhouses, co-ops and single-family homes.

The $8000 that has been mentioned is the maximum; some people will qualify for less. The tax credit you get when you buy a home under this legislation will depend on the price of the home and your income.

You will not have to pay back the tax credit if you stay in the home for at least three years.

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If you are eligible, give some thought to buying a home this year. There is no guarantee that the government will offer a similar incentive the following year.

Home Staging...with Live Actors

When it comes to home selling trends, we are always amazed at some people's creativity. A while back we told you about homeselling sleepovers--where potential buyers asking to sleepover in homes that are for sale so that they could get a feel for what it would be like to live in them.

Well, now some builders and owners are hiring people to stay in unsold properties and taking home staging to a whole new level. The Wall Street Journal has reported that instead of just getting new furniture as a prop, people are hiring temps to stay in houses to give them that "lived-in" look. People hired for these jobs must be able to give it the ambiance of someone who can afford to live there, even if they can't. They add their own touches--magazines and photos and such--to make it seem less vacant.

One such temp hired by a builder said that she fields calls from real estate agents and tell them that she lives there because she does, at least temporarily. She auditioned for this job with includes making sure the house is pristine for 12 hours a day. She also has to light candles and turn on music and then leave prior to showings. When she has some warning, she will bake cookies before a real estate agents shows up with a prospective buyer.

And perhaps it works. If the One buyer who toured the property occupied by the temp mentioned above guessed that the house was being put up for sale by a wealthy world traveler.

An Inspiring Home Sale Story

With all of the economic uncertainty, we just wanted to let you know that some people are able to sell homes without feeling as if they gave it away and without having it on the market for what seems like forever.

There is one woman in Pennsylvania who has what can be described as a good problem to have: her property sold before she was able to arrange to purchase her next home.

She put her home on the market, despite looking around and seeing that her neighbors' homes languished on the market for as long as eight months. The home had been purchased 17 years earlier and the agent who sold it was a new to real estate and had been the woman's coworker.
That former co-worker, now an experienced agent, helped the woman set a price and after three showings the home sold for full price with a 3 percent seller assist.

The seller modestly said that she painted and kept up with repairs on the home that she bought brand new. Her real estate agent was less modest and called the home "spotless."

Lately, I've read about sellers being aghast at some of the repairs that potential homebuyers are requesting. This story goes to show that a home that is in excellent condition can sell and sell quickly.

Potential Buyers Are Hesitant

Over the weekend, there was an article by the Associated Press that had some good and not-so-good news about the real estate market. The good news is that according to their research more and more people are out there looking for homes. And this is great. The economy is not exactly booming, but it is encouraging to know that people are on the hunt for new homes.

The not-so-good part is that although sellers and real estate agents are seeing more people who have the confidence to come out and look, these people are not necessarily making offers. There are always some people who look at houses without any intention of buying, so that is not the troublesome part.

The troublesome part is that there are some people who are trying to time things just right so they can buy at the precise moment wen prices are at their lowest. You should be a careful consumer, but it is very hard to predict just when things will be at their lowest. And even if you think you have captured that moment, you may find that you were wrong or that some unforeseen factor complicates what you thought would be an amazing deal in real estate.

Is Job Loss Insurance Worth It?

Earlier in the week, I wrote about how job loss insurance is being used as an incentive to get buyers into homes. It sounds like a great idea. With financial uncertainty and many people finding themselves unemployed, many people would welcome such assurance.

At least one real estate expert does not feel that mortgage payment insurance is really all that is cracked up to be. This expert pointed out that plans, such as the ones that offer to pay your mortgage for six months if you lose your job, won't do much for you in the long run. He was of the opinion that since some people will spend more than six months on the hunt for a new job, this type of insurance will not save them. He recommended doing all you can to negotiate the best possible price, rather than opting for job loss insurance.

Only you know your financial situation and if you have a good amount of savings, six months or so of mortgage payments may be just the life raft you need as you look for a new job should you become unemployed.

As with any possible home buying incentive, you have to weigh the pros and cons and do your research to see if it will be of real benefit.

Mortgages with Job Loss Insurance

Both builders and real estate agents alike are offering a new incentive to lure buyers: mortgage insurance that is predicated on a buyer's possible unemployment. 

These mortgage protection programs help ease the fears of buyers who want to take advantage of the fact that home prices have dropped, but are unsure because the job market is not steady. Everyone keeps saying this is a good time to buy, but homeownership is a big responsibility. Everyone is nervous about signing those closing documents, even in good times. So potential buyers tend to be that much more nervous during a shaky economy.

Let's be clear: this insurance does not take over an entire mortgage. The plans vary in the amount of coverage, of course. Some of these stipulate that if a buyer loses their job, their mortgage will be paid for a certain amount of time, if the buyer loses their job within X years of closing on a home. 

One of these programs promises to refund a buyer's mortgage payments if their home falls below sale price X years after sale. This surprisingly generous program also lets people walk away from their home if they find that they cannot make mortgage payments.

Vegetable Gardens

These days everyone is looking to make the most out of the space that they have. And this means looking at ways to use the space inside your home, as well as the space outside of it.

One way to maximize the use of the space outside of your home and create a economical food source is to start a vegetable garden. Even The White House has a vegetable garden.

And no, vegetable garden need not be unattractive because it is functional. Looking up vegetable garden design on the internet will show you that even without lots of pretty blooms, a vegetable garden can still be pleasing to the eye.

One way to bring design to your vegetable garden is to create a pattern of beds that are filled with growing vegetables. This is an option for those who decide to plant their vegetables in raised beds, rather than directly into the soil. That way the pattern will be pleasing to the eye, no matter what has or has not sprouted.

You will have created something nice to look at and hopefully, you will also have something nice to eat at some point, as well.

Come back on Wednesday to get tips if you do not have adequate space for an actual garden.

Suburban DC Foreclosure Market is Hot

Just recently in the news, I read that the foreclosure market in our area, particularly in the suburbs of DC, is very hot right now. It really is a great time to buy a home, and with some many foreclosed properties on the market, there is an opportunity to get a home at a low price.

However, before you get excited, be aware that buying a foreclosed property is not like buying one in a regular sale. There are legal matters and considerations that come into play that are not a part of the average home sale. For example, it is possible that there are liens on the property that must be paid, but were not mentioned at first. So you will want to get a title search and get title insurance.

If you do your research and seek the advice of a reputable real estate professional, you can buy a foreclosed property at a price you will be happy with.

For those of you who are looking for a foreclosed property in Maryland, call John Day at 410-507-2909. He can answer your questions about the process of buying a foreclosed property, purchasing a home through short sale, or buying at an auction. You can also click on the title of this post to visit the Foreclosure Section of his website to view properties that are for sale.

Existing Home Sales Rose in February

There is no doubt that we all could use a little good news. Well, some uplifting news--both for real estate industry professionals and consumers--came this week.

Existing home sales went up in February. The National Association of Realtors reported that homes sales were 5.1% higher last month. In the country's Northeast region, home sales went up by 15.6%.

This increase in home sales was actually more than what financial analysts had foreseen, so even they were surprised. And since no financial event is isolated, news of the increase in home sales gave a boost to the Dow Jones Industrial Average as well. An increase in home sales is good for everyone, even people who are not in the market to buy or sell a home. Our economy needs a healthy real estate market and the recent rise in home sales is a positive sign. Although we really cannot look at one sector of the economy to find the reason behind the current economic downturn, many people felt that problems in real estate were a major contributing factor, so let’s hope that things are turning around.

So if you have a home on the market, take this as a positive sign. More homeowners were able to take down "For Sale" signs and sign that closing paperwork and soon you will be doing the same.

Maryland Has Seen Increase in Mortgage Fraud

It was very sad to read earlier this week in The Washington Post that mortgage fraud has increased in Maryland. This came from a LexisNexis study that was initiated by the Mortgage Bankers Association. Maryland was actually one of the top five states that are seeing more of this type of dishonest behavior. The Post drew information from a study that looked at what happened over the past year.

An overwhelming majority of the fraud can be traced to less than honest reporting about a borrower's income and ability to pay the costs associated with a home loan. Although this kind of fraud has increased, there has actually been a decrease in fraud relating to credit reports.

One expert noted that the economic downturn may have played a role in this, since people are getting desperate. At the same time, investigators may be uncovering more fraud because the real estate industry is being scrutinized more closely in light of the problems with people defaulting on mortgages.

If you are in any doubt about the terms of a home loan, don't be afraid to ask questions or consult a real estate professional. And if the first person you ask cannot help, ask them to refer you to a colleague. You can always call John Day at 410-507-2909.

The "Making Home Affordable" Initiative

Last week, the federal government announced a program called the "Making Home Affordable" initiative. This program will run until 2012. Estimates of just how many homeowners could be helped by this program have varied widely; some sources say 5 million, while other sources say 10 million. The program guidelines aim to help those who are struggling, while excluding those who have been negligent or greedy. Like most government programs, it is fairly detailed, but we've outlined a few of the terms below:

-To receive this assistance, the mortgage on a single-family property must be less than 729,750.

-The home in question has to be a primary residence and cannot be left empty or condemned.

-Only loans made on or before January 1, 2009 qualify.

-As a homeowner you may be eligible to have your principal payments reduced by up to $1000, every year, for up to five years.

-You may still be considered if you are in bankruptcy.

-You can only have your home loan modified once under this program.

You can go to financialstability.gov for more details and get access to self-assessment tools to see if you qualify for assistance under this program.

Competing to Conserve Energy?

Do you try to keep up with the Joneses? Do you think that people who find a sense of competition in the race for material goods will also compete to get the approval of their local power company, as the New York Times reported last month?

One company in California decided to test this out. Energy efficient customers received a smiley face on their bill. the smiley face was used to indicate to customers that they had done a good job with energy conservation in comparison to their neighbors.

A nonprofit in Massachusetts grouped neighbors into teams and these teams compete against each other to see who can be the most environmentally sound within categories like waste, food, electricity and heating fuel.

Perhaps this is the wave of the future as cities look for incentives to get residents to conserve more and be more environmentally aware. Sometimes it is not enough just to say that it is good for the earth that we try to hog energy and resources; we need more motivation than that.

White House Designer Will Mix Contrasting Elements

Although he did not have a huge name before being selected for the task of designing the private quarters for the new First Family, people in the design world feel that Michael S. Smith is up to the task.

One design expert proclaimed the Smith has the ability to execute 'The Mix.'

What exactly is 'The Mix?' It is a combination of contrasting design elements. These opposing pairs of design elements are:

Traditional and Modern- Rather than make a room wear a “costume” of old-fashioned dress, a good designer can include the old and the new.

Casual and Formal-Designers look for ways to relax rooms used for formal occasions and to give extra polish to rooms that are made for relaxing.

Varying Cultural Influences- Top designers know how to mix and match pieces and elements from different world cultures in a pleasing way.

Expensive and Affordable- There was a time when people shied away from mixing high and low end, but these days it is important to be able to seamlessly combine pricey pieces with inexpensive ones.

You are likely to hear more about Smith's design choices in the media, especially since he plans to use mainstream design brands while putting together the rooms for President Obama's two daughters. He will also be able to rely on the White House furniture that is in storage. This collection has been amassed from over 200 years of First Families that have lived at 1600 Pennsylvania Avenue.

Michael S. Smith Chosen as White House Interior Designer

While most of the world was concentrating their prediction energy on trying to guess what kind of dress Michelle Obama would wear to the Inauguration, the design world had a different question: What interior designer will be selected to dress the private quarters of the White House?

The word is in that Michael S. Smith of California was chosen. And really, people were surprised because they did not know very much about the designer, despite the fact that he has his own line of furniture, fabric and candles. Smith studied at the Otis College of Design and he started his design firm in 1990.

As a man in his mid-40s, Smith is in the same age group as The Obamas and this fits in with what people say is their relatively youthful style.

Experts advise that when looking for an interior designer, you should find someone whose personality will mesh well with yours. They needed be exactly like you; you just have to be able to work with this person on a very personal project (your home) for an extended period of time.

If you do not want to entrust your entire home to someone all at once, you can start by having a designer outfit a small area like a hallway and then move on the other parts of the house once you feel confident in that designer's abilities.

Think Twice Before Giving Up Your Home

The Washington Post recently reported that the individual stories behind those startling foreclosure figures you read about are not all stories of financial irresponsibility. Some people have simply decided it is time to walk away from their mortgage.

It is not that they cannot afford to pay their monthly mortgage, but they have decided that their goals have changed. And they no longer believe that home ownership is for them...at least not home ownership in that particular home. Perhaps they are not behind on payments, but they are financially strained and they feel that going into foreclosure and giving up the home will bring some relief.

This is a very tough decision. Some real estate experts warn that foreclosure can have a huge affect on your credit rating and may make it difficult to rent, obtain credit or buy another home in the future.

Another expert mentioned that with so many people going into foreclosure, the stigma may not be there after a while. However, stigma or not, foreclosure still has a damaging effect on credit. So consider carefully a decision to give up your home.

And if you are in Maryland and want a dedicated, veteran real estate expert to weigh in on your decision, call John Day at 410-507-2909.

The Inaugural Rental Market

For a while the market for inaugural rentals was so hot, it seemed to be an economy all of its own. In its early stages, the market for renting out a home, apartment or condo in the DC area seemed to surpass the regular real estate market even in its most flush times. People told many (presumably exaggerated) tales about people they knew who had rented just the space on their couch for $1000 a night.

But as we all know, nothing last forever and the inaugural rental market went bust.

People who advertised about renting their spaces early (early meaning very soon after the election) got takers and were able to charge quite profitable rates. Those who kept discussing it but were unsure about actually doing it have found that this once-lucrative market has dried up.

In an imitation of the actual housing market, it became a buyer's (well, actually renter's market): people wanted places very close to the U.S. Capitol that weren't charging exorbitant rates.

As in all of real estate, be it an inaugural rental or regular home sale--location counts and going for the easy money may not be the best way to make a sale.

Should You Join the Rush the Refinance?

Last week, I mentioned that there is a little boom in mortgage refinancing.
Because of the Federal Reserve's action of cutting interest rates, there is much more interest in refinancing home loans. As is always the case when it comes to money and loans, you do need to be careful. And unfortunately when people are eager to do something, there are always certain people who are just as eager to take advantage of them.

When you sit down with a mortgage broker to go over your options for refinancing, do not get pushed into a loan that does not feel quite right.

You need to make certain that refinancing will actually be of some benefit to you. Do not let the allure of lower interest rates blind you to the practicalities of your own situation. If the lower interest rate will not help you because the fees outweigh the benefits or you think you may not stay in your home, perhaps you should not refinance.

Remember that a mortgage broker gets a fee for closing a refinancing deal, so they are interested in seeing it through. And there are some mortgage brokers who will point you towards a loan that will not save you very much money.

Rate Cut Ushers in Rush to Refinance

In case you've been so busy with Christmas shopping or coupon clipping to notice--interested rates for 30-year fixed rate mortgages are at the lowest they have been in more than 30 years.

Last week record numbers of people called their mortgage brokers because of the changes in interest rates. If you were not one of them, you may be wondering if you need to go ahead and make that call.

Well, that depends...

Do you want to sell soon?
People who are refinancing their mortgages will see a drop in their monthly payment, but you have to remember that refinancing is not free.

If your refinancing costs are added into the total amount of your loan, then it will take time for you to break even.

How is your credit?
Just as you are thinking twice before you buy things--be they necessities or luxury items, banks are also being just as cautions. Although the Federal Reserve has paved the way for many people to refinance, it doesn't mean that everyone will be able to do so. A lot of people have refinanced already, but you have to remember that those people likely have good credit scores and a certain amount of equity in their homes already.

Check back on Monday for more information on the recent rush to refinance.

The Fine Print Makes a Difference

There has been a lot of talk about how to help financially-strapped homeowners weather the storm and keep their homes. Just today I read about how those who apply for some relief may find that it all boils down to the fine print.

If your lender owns your mortgage outright, then you may have an easier time working with them to alter the terms of your home loan.

Things get a little trickier for those who find that the contact institution for their home loan is actually owned by someone else. As you may have already learned, one company can administer a loan that is in fact owned by another company. This is called servicing. With some of the contracts tied to servicing, an institution is not allowed to make changes to an existing loan.

The government is becoming increasingly aware of the issues that are arising as a result of servicing and will likely consider legislation to resolve this. When these contracts were originally drawn up, no one foresaw the real need that people would have to modify home loans.

In the meantime, if you live in Maryland and want to find ways to avoid foreclosure, give me a call at 410-507-2909.

The Role of the Home Appraiser

In case you were unaware, a home appraisal is supposed help the lender decide whether or not to make a loan. It is not really a tool to give buyers the correct price.

Recently, The Washington Post had a brief article where they interviewed a real estate expert about the recent unrest surrounding home appraisals. The expert noted that although the foreclosure crisis has brought the home appraisal process to the forefront, that this is not the first time that this part of the real estate industry has come under scrutiny.

One big component to a home appraisal is looking at properties that are considered to be truly comparable to the property in question. Like all of us, home appraisers face pressure to do their job a certain away. Sadly, some appraisers have succumbed to the pressure to name a price that relied to heavily on what a buyer was willing to pay, and did not factor in the market and similar properties.

Just as there was talk of how there was hope that bankers and other people in finance would self-regulate, the same has been said of home appraisers. As the expert in the Post noted, we cannot rely on self-regulation alone.

To learn more about home appraisers, visit The Appraisal Foundation.

Older Americans Hit Hard by Foreclosure Crisis

Who do you picture when you think of the foreclosure crisis? Perhaps you envision someone who is young, someone who took a subprime loan because they figured they had the earning potential to cover the loan. But young people are not the only ones who have suffered as the result of predatory lending and subprime mortgages. And the older you are, the less time you have to recover from such a setback.

According to AARP this is not the case at all. The AARP Public Policy Institute has released a report entitled "A First Look at Older Americans and the Mortgage Crisis. The mortgages of people 50 and over represent about 28 percent of all delinquencies and foreclosures connected to the foreclosure crisis.

Many homeowners who are 50 and above have been really hit hard by the mortgage crisis. Sometimes they are buying another home, thinking that they'd finally get the home they really wanted. Others may have spent all their adult lives dreaming of homeownership, and bought their first homes using the less than favorable loans that were becoming easier to get.

Whatever the case, consider checking in on your relatives and friends that are 50 and above. If it is not too delicate a subject, ask them how they are managing their mortgage payments. If you or someone you know in Maryland is facing foreclosure, call me at 410-507-2909, if you need assistance.

Trump Helps McMahon Avoid Foreclosure

A little while back I reported that Ed McMahon was one of the celebrity faces connected to the foreclosure crisis. And now I am happy to report that Ed McMahon will most likely be able to keep his home.

Donald Trump has stepped in to save the day. But he is not paying for McMahon's home outright. Instead, Trump has agrees to buy McMahon's home and lease it back to him. Although the impending deal has yet to be completely finalized, the fact that the two parties are talking about it in the press means that it is very likely to go through.

At one time, the home's estimated value was $7 million; it was recently listed for a $4.6 million price tag.

Many people out there do not have the celebrity cache to attract the attention of Donald Trump, but that does not mean you have to lose your home. Seek the advice of a qualified real estate professional. If you are facing foreclosure in Anne Arundel County, Calvert County, Charles County, or Prince George's County call John Day at 410-507-2909--he and his team are happy to help.

Finance Expert Finds He Needs Real Estate Expert

I recently read an article by a personal finance reporter who was loathe to admit that he felt helpless with the recent changes in the housing market. He felt as if he was the one who should have had all the answers, but he didn't. It turns out that his wife, who was not the expert in personal finance knew a thing or two that he did not. But even his wife was unpleasantly surprised at how they much they had to lower their price.

He balked when she wanted to spend money on what he felt were unhelpful plants and other cosmetic touches. As it turns out, those extra touches were something that the family who eventually bought the house really appreciated.

Both the reporter's real estate agent and a friend who worked in real estate advised lowering the price. The reporter and his wife resisted, but they gave in and the house did sell.

Sometimes real estate takes a team approach. The writer says that he real estate agent left no stone unturned. The real estate agent's work, combined with his wife's extra touches (things he thought were unnecessary) were what got the house sold.

It Doesn't Hurt to Look

Last week the National Association of Realtors released a report that stated that the sales of existing homes have fallen nationwide. However, this storm cloud does have a bit of a silver lining: Washington DC and the areas surrounding it have not been hit quite as hard as other parts of the country.

The National Association of Realtors also conducts an online survey and one of the conclusions that came out of this was that a good number of potential homebuyers—about 25%—are sitting out in the real estate market.

Why sit out when this is a great time to buy? The economy is not great, but if you really want to have a home, you should not let that keep you from getting out there and looking at homes.

The best time to buy is when you are ready. Sure, some times are better than others, but conditions will never be perfect. If you feel that you are ready and financially prepared for the responsibilities of home ownership, explore it. It doesn’t hurt to look and you are not obligated to buy.

If you want to look in Anne Arundel County, Calvert County, Charles County, and Prince George's County, call John Day at 410-507-2909.

Home Selling Basics

On Monday, I talked about how a home sale is a business transaction. In light of some recent news stories about people attempting to sell their home and relationships at the same time, it is time to remember some home selling basics. Remember, nothing can beat a well-maintained home that is groomed for sale. Here are some other tips:

Price your home to sell
Making sure that your home is priced competitively is very important. If it is priced very differently from similar homes, buyers will be wary. You want the price to be worthy of the home and its amenities, but also in the range of the other homes in the neighborhood.

Try traditional incentives
Stick with incentives that are a part of the real estate negotiation. These include: paying some of the buyer's closing costs, an allowance for certain repairs, including major appliances in the deal.

Make the most of marketing
Use both traditional and more innovative techniques to market you home. Have an open house and make your home available for viewing. Work with your real estate agent on a personal web page.

Remember that a Home Sale is a Busines Transaction

Last month, a woman in Florida was in the news because she decided to put both her house and her heart up for sale as a package deal.

The woman is willing to sell her almost 2000 square foot home along with her hand in marriage. She was having trouble on the dating scene and anticipated trouble with selling her home in the current housing market.

A man in Australia has also made the news because he decided to sell his entire life, including his house, vehicles and introductions to his friends.

A while back, I wrote about some other unusual home selling incentives and it seems that these incentives are getting quirkier and quirkier.Selling a house is a business transaction. Yes, there is an emotional side to it, but it is best to remain professional.

With the expert advice of a good real estate agent, you should be able to sell your home, without offering friendship or romance along with it. If you are having trouble selling your home, feel free to contact John Day at: john.day@longandfoster.com.

Don't Fight Foreclosure On Your Own

Last night I saw a news segment about a family who fought foreclosure. According to the report at one point the process server stood outside of their home screaming that they were in foreclosure. This attempt to shame the family into giving in was shameless.
Please know that no matter how much you owe, you do not have to sit by and allow this type of harassment.

In this case the family says that at closing they were presented with a package that was very different from the one they were promised, but they felt pressured to sign.

The case went to court and a judge ruled in their favor, although the lender plans to fight this ruling.

The smartest thing this family did was to seek professional advice; they didn’t try to deal with the lender on their own. No matter how smart you are or how much you know about real estate, this is something you should not handle on your own. When a person is facing the loss of their home, that person is vulnerable in so many ways. You may think you are acting in your own best interest, unaware that you are not seeing the complete picture.

Bank of America is set to buy Countrywide

In case you haven’t heard the latest news in the finance and mortgage industries: Bank of America has announced plans to buy Countrywide.

Some experts feel that this buyout could give a tiny shot of confidence to an industry that has been badly shaken in recent months. In no way does this deal mean that everything is now okay, but every little bit helps.

If you are a Countrywide customer, you may notice nothing new, other than being asked to send your mortgage payment to a different address. Or the fact that you get more marketing mail from Bank of America.

Countrywide is the country’s largest mortgage servicer. One is six homeowners has a loan through Countrywide, a company that has a reputation for trying to work with customers to prevent foreclosure. There is some talk that Bank of America may be less accommodating, but no one knows that for sure.

One group of people that may be affected are those who have large accounts with Bank of America. It is possible that having a mortgage and banking at the same place could result in exceeding FDIC coverage limits. People in that situation do have options, however. There is extended coverage available, especially if you have more than one kind of account.