Annual Home Checkup

Once a year, it's a good idea to give your home a checkup. Finding problems or potential problems in their early stages usually gives you the best chance to make repairs more easily and less expensively than if problems are allowed to worsen over time.

The kinds of things you'll want to monitor in your home include:

* Gutters and downspouts: Inspect for leaf and debris buildup that can cause overflow problems.
* Paint: Make sure painted surfaces aren't peeling or cracked, exposing wood to weather damage.
* Windows: Check the weatherproofing and caulking and replace cracked panes.
* Roof: Inspect tiles or shingles and flashing to prevent leaks; clean off any moss.
* Appliances: Check and replace frayed electrical cords, damaged plugs, and cracked or leaking hoses.

Proper care and maintenance will keep your home safe, attractive, and comfortable. Taking good care of your home helps reduce the need for expensive repairs and ensures that your home will command top dollar when you decide to sell.

Is Re-financing for You?

When mortgage rates are low, you may want to refinance your home loan. Many homeowners have taken advantage of recent low interest rates to refinance and cash out some of the equity from their home to:

* Buy a rental or other investment property
* Remodel their home, such as creating the dream kitchen they've always wanted
* Buy a vacation home on the beach or in the mountains
* Pay for college tuition for a family member or meet other special expenses

If you're interested in refinancing, a home evaluation can give you a good idea of what your home is worth. I would be happy to provide you with a general price range based on recent sale prices of comparable homes in your area.

Or, for a more precise estimation of value, I can drop by for a quick review of your home. With this more detailed information, I can research the sale prices of properties similar in size and features to yours and provide you with a more accurate estimated price range.

Home Sales Rise 3% in January

Sales of existing homes rose in January by the largest amount in two years, raising hopes that the worst of the severe slump in housing may be coming to an end. Median home prices, however, fell for a sixth straight month.

The National Association of Realtors reported this week that sales of previously owned homes rose by three percent last month, the biggest one-month increase since a 3.3 percent increase in January 2005. Sales of existing U.S. homes rose three percent to a seasonally adjusted annual rate of 6.46 million in January, the highest in seven months.

The median price of an existing home sold in January dropped to $210,600, a decline of 3.1 percent from a year ago. It marked the sixth straight month that the median price has been down compared with a year ago. The January decline was the third-biggest drop in history.
Single-family home sales rose 3.5 percent to a seasonally adjusted annual rate of 5.69 million in January from an upwardly revised 5.50 million in December, but were 4.2 percent below the 5.94 million-unit level in January 2006. The median existing single-family home price was $209,200 in January, down 3.5 percent from a year earlier.

Existing condominium and cooperative housing sales slipped 0.1 percent to a seasonally adjusted annual rate of 767,000 units in January from a downwardly revised pace of 768,000 in December. Last month's sales activity was 5.7 percent below the 813,000-unit pace in January 2006. The median existing condo price was $222,200 in January, up 0.5 percent from a year ago.

Total housing inventory levels rose 2.9 percent at the end of January to 3.55 million existing homes available for sale, which represents a 6.6-month supply at the current sales pace - unchanged from the revised December level. Supplies peaked at 7.4 months in October.
Regionally, sales rose 5.6 percent in the West, 4.8 percent in the Midwest, 2 percent in the South and were unchanged in the Northeast.

10 Ways to Improve your Credit Score

When you apply for credit, your credit scores help lenders determine whether or not you are willing and able to repay the loan. With a higher score, you qualify for better interest rates, higher credit limits, and more types of credit than you would with a lower score.

Your score reflects the way you use credit, and there are no tricks or quick fixes to getting a good credit score. However, you can raise your score over time by demonstrating that you consistently manage your credit responsibly. Here are 10 things you can do to improve your credit score.

1. Pay your bills on time. If you have a history of paying your bills on time, you'll have an easier time getting a mortgage loan, car loans, and credit cards. Even if you've had serious delinquencies in the past, a recent history (24 months) of on-time payments carries weight in credit decisions.

2. Keep credit card balances low. High outstanding debt can pull your score down.

3. Check your credit report for accuracy. Inaccurate information on your credit report can be cleared up easily. Always contact the original creditor and the credit bureaus whenever you clear up an error, so that the inaccurate information won't reappear later.

4. Pay down debt. Consolidating your credit card debt or spreading it over multiple cards will not improve your score in the long run. The most effective way to improve your credit is by slowly paying down the amount you owe.

5. Use credit cards-but manage them responsibly. In general, having credit cards and installment loans which you pay on time will raise your score. Someone who has no credit cards tends to have a lower score than someone who has managed credit cards responsibly.

6. Don't open multiple accounts too quickly,especially if you have a short credit history. This can look risky because you are taking on a lot of possible debt. New accounts will also lower the average age of your existing accounts, something that your credit score also considers.

7. Don't close an account to remove it from your record. A closed account will still show up on your credit report. In fact, closing accounts can sometimes hurt your score unless you also pay down your debt at the same time.

8. Shop for a loan within a focused period of time. FICO scores distinguish between a search for a single loan and a search for many new credit lines, based in part on the length of time over which recent requests for credit occur.

9. Don't open new credit card accounts you don't need. This approach could backfire and actually lower your score.

10. Contact your creditors or see a legitimate credit counselor if you're having financial difficulties. This won't improve your score immediately, but the sooner you begin managing your credit well and making timely payments, the sooner your score will get better.

While these ideas won't create a dramatic improvement in your credit score overnight, it will over time. Remember that it takes time to develop a strong credit profile, but once you've done it, you'll find it easier to apply for credit.

Win-Win Negotiations

For most people, the equity in their home represents their largest financial asset. Therefore, buying or selling a home should be treated as a business transaction.

The best transactions are those with a win-win outcome, in which both parties feel they have been treated fairly. One of the best reasons to hire a real estate agent is that we represent you as we negotiate on your behalf. Agents act as buffers between the parties in the transaction, effectively minimizing the emotional component of the process.

When an offer is presented, the seller can accept, decline, or counter it. By pricing a home fairly, sellers usually receive offers that are close to or may even exceed fair market value. If you receive an offer that seems unusually low, look closely to see if the buyer has offered other concessions such as a quick closing.

If the offer is unacceptably low, then present a counteroffer instead of declining it outright. That keeps the door open to additional negotiations and extends the possibility of arriving at a win-win outcome.

On a Mission

If you want more focus and purpose in your life, try writing a personal mission statement. Most companies and organizations have these declarations as the foundation for their business. Do the same for your personal life by outlining in one or two sentences what impact you want to make in the world.

Safe Keeping

It is wise to keep important documents in a safe deposit or fire proof box. Some items to include: birth, marriage and death certificates, mortgage and property deeds, insurance policies, divorce and custody documents, citizenship papers, military records and heirloom photographs.

What's the Difference?

Not all prospects are qualified buyers. Simply put, some are more capable of buying your home than others. But how do you know the difference when a prospective buyer comes calling? Most serious buyers enter the house hunting process with a mortgage pre-qualification or a pre-approval. Each indicates a different level of buying power.

1. Pre-Qualified – This means a REALTOR®, lending agent, financial advisor or the buyer has done a general review of the finances without an in-depth examination of credit. A simple analysis of debt to income indicates how much money the buyer has to spend on a mortgage payment after all other monthly expenses are met. However, someone who is pre-qualified does not have a promise for funds from a bank or lender.

2. Pre-Approval – This indicates a more rigorous financial review. The bank or lender will carefully examine credit, income and debt. The buyer will need to provide documentation for each, making the pre-approval more telling than the pre-qualification. The lender will recommend different loan programs, tell the applicant what dollar amount they would be eligible for, and at what terms and rates it would be given. A pre-approval letter outlines all this information. If a buyer is serious about purchasing your home, this letter tells you they have the potential backing to make the purchase happen.

Know the Lingo

For most people, getting a mortgage is an integral part of purchasing a home. But if you are new to the process, you are likely to encounter industry-specific words you may not know.

Here are the basics:

• Deposit - The amount you agree to give the seller at the time the sales contract is signed.
• Principal – The amount of money a borrower owes on a mortgage. In other words, how much you will owe the bank or lender once the loan is assumed.
• Down Payment - The difference between the purchase price, the initial deposit and the mortgage principal balance. It's the amount of cash you bring to the closing table that is not financed.
• Private Mortgage Insurance (PMI) – Many lenders will make provisions for those who cannot afford the standard down payment of 20 percent of the purchase price. Instead, they will drop the required down payment, but charge a fee called PMI. This may require an initial up-front payment followed by monthly fees.
•Principal, Interest, Taxes and Insurance (PITI) – This acronym stands for the four parts of the monthly mortgage payment.
• Point – Some buyers are able to reduce their principal by buying mortgage points. This is prepaid interest given to the lender at the closing. Each point is equal to 1 percent of the loan amount.

Visit Century21.com for more mortgage terms and definitions. The online glossary contains more than 900 entries.

The Perfect Fit

More and more people are reaching retirement with their health, financial stability and a new perspective on aging. For many in this group, a home or condominium in an active adult community is the ideal setting.

The benefits of these communities include property management, social activities, being surrounded by peers and more. When looking to buy in a “55 and over” or similar style development the key to making a good purchase is research and comparison shopping. Each development is different and you want to choose the one that is right for you.

Here are several things to consider.

• In addition to asking price, inquire about related fees. There will likely be an association fee for services such as maintenance and snow removal. Other potential expenses include pool costs, clubhouse fees, and the like.
• Ask about penalties. Some associations charge if you sell the unit or home before a certain date. That timeline and related consequences are usually outlined in the contract.
• Investigate social outlets in the community and the surrounding area. Read the association newsletter and get a feel for what kind of clubs and gatherings are offered. Inquire about other opportunities, like area golf courses, lakes and beaches. Look for a community that has amenities that match your interests.
• Ask what type of medical provisions are available. Some developments have emergency call systems. See if rates increase as the need for assistance rises.
• Besides a vibrant development, you want to buy in a town or city that is strong and appealing. What does the area downtown have to offer? What is the local tax rate? Are there projects on the horizon that could boost taxes in the future?
• Finally, consider your proximity to loved ones. It can be a key factor in your decision.

A New Look

When the day of your Open House arrives you want your home to be warm and welcoming. You want prospective buyers to imagine what it would be like to live there and like what they see so much that they want to bid on the house. Home staging is the first step down the path to a successful home sale.

One of the best ways to pique buyer interest is to breathe new life into the home. This can be done with four simple steps. Applied to each room, the impact can be significant.

1. Start with a clean slate. You want each room to be clean and free of clutter. Identify unwanted items and sell or donate them. Things you want, but don’t necessarily need on a daily basis should be packed up and stored elsewhere. Next, give the room a thorough cleaning. Shampoo carpets. Clean draperies. Take the extra steps and make it shine. A clean home is always more appealing.

2. Once the room is clean, look at it with a fresh eye. Is there a piece of furniture that detracts from the space? Does the couch need a slipcover? A few simple changes can update the room.

3. Next, think about color. Nothing brings a room to life like a warm, inviting tone on the walls. A fresh coat of paint in a neutral tone can make the space more appealing. In addition, if you pick complimentary tones for each room it gives the home both character and a sense of continuity or flow.

4. Consider updating your accessories and wall art. Once you have decluttered, cleaned, made key changes and painted, you want to add in a few signature pieces to boost interest. For instance, an heirloom painting from your great aunt may have a lot of appeal to you, but it may not work in the room anymore. Replace it with a piece that is better suited for the space.

Home Maintenance Tips

To prepare your home for sale, you may need to perform some maintenance to get it into top shape. Here is a list of things you can do before your home goes on the market that will really make a difference:

* Replace cracked windows and torn screens.
* Fix or replace broken stairs or handrails.
* Fix plumbing fixtures, leaking faucets, and so on.
* Replace exterior lock sets and garage door openers if damaged.
* Repair worn or damaged flooring.
* Replace broken or leaking gutters and downspouts.
* Remove any soil or landscape mulch from contact with wood.
* Clean, repair, or replace the roof.
* Repair or replace worn boards on decks or porches.
* Have your heater and air conditioning units serviced and filters replaced.

Some sellers may hesitate to tackle these matters because of the cost, but money spent on repairs can make a difference in the final sale price. Moreover, some of these deferred maintenance items are safety hazards and others may be required by the buyer or lender before closing.

Buyers tend to overestimate the cost of performing repairs and thus reduce their offer by an amount higher than necessary to compensate. If the lender requires the repairs to be performed before closing, the seller can, in effect, end up paying for repairs twice: first in a lower sale price and second in the out-of-pocket cost of the repairs themselves.

A better strategy is to perform the repairs before putting your house on the market. By comparing estimates from several contractors, you can be sure to get a competitive price. And you'll eliminate potential reasons a prospective buyer might use to justify a lower price offer.
If you're thinking about selling your home, please call or email to discuss repairs your house might need. I may be able to save you time and money.

Considering Making a Move?

When you're thinking about making a move, the first steps in the home buying process are:

* Deciding when you want to make your move
* Considering how much money you would like to spend
* Thinking about what type of home you would like
* Deciding where you would like to live

The next step is usually finding out how much you can qualify for and deciding the type of financing that will work best for you.

If you're in the "thinking about it" stage, you will want to speak with a lender about receiving pre-qualification. If you choose to become pre-qualified, the lender will determine how much you can borrow based on financial information you provide to the lender. Pre-qualification is useful for making preliminary decisions about how much home you can afford, but does not assess your creditworthiness. You will need to fill out a loan application and go through the lender's loan approval process at a later date.

When you decide to buy a home, you will want to become pre-approved for a loan prior to beginning your home search. When you are pre-approved, the lender conducts a thorough credit check and verifies your employment and deposit. The lender's pre-approval is a commitment to loan up to a certain pre-determined amount. The only thing missing is the lender's appraisal of the home to confirm its value.

Why is pre-approval important at the beginning of the home buying process?

Pre-approval strengthens your offer and negotiating position. A home seller will often choose an offer that is pre-approved for a mortgage over someone whose financial picture is still in question.

Please don't hesitate to call or email me for additional information about the buying process. My goal is to provide you with practical information as you consider your next move. And, when you're ready to make your move, I'll help you find your dream home and handle all the details of the transaction, so all you need to do is pack!

Garage Sales

Is there too much clutter in your home? It can be a shock to see all the stuff most of us have accumulated through the years.

One of the best ways to clear out clutter is to have a garage sale. Here are some tips to making your garage sale effective:

* Advertise your sale in a local newspaper. Make sure to include your address and what days and times the sale will take place.
* Place directional signs at nearby key intersections.
* Place smaller items on tables.
* Be prepared in case of inclement weather.
* Put price tags on everything, but be flexible and ready to negotiate.
* Be prepared for early arrivals. Decide whether you want to allow early birds or if you will begin only at the specified time.
* Start with an adequate amount of change and small bills on hand. Decide whether you will accept checks.
* Have plenty of help--it's more fun that way!

Try to look at your home through a prospective buyer's eyes. Lack of clutter will help your home show better, and it will ease your move to a new place. And even if you are staying put, getting rid of clutter will allow you to enjoy your home more comfortably.

Get Your Free Homes Sales Alerts

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Send me your email address and property address and I can add you to my home sales alert list. Every 60 days you will be updated with what is selling in your area!

Also, contact me anytime for detailed information on any area in the country including:

*Demographics
*School Information
*Housing trends and values
*Crime and climate reports

Or simply click here!

Packing Tips

Decide whether you are going to pack yourself or hire movers to do the job. Some buyers opt to pack themselves to save money and then have movers load the truck. Whether you hire movers to pack or do it yourself, below are some do’s and don'ts to make your move more efficient:

* Buy quality supplies beginning with sturdy moving boxes in a variety of sizes. Have plenty of packing paper, bubble wrap, and packing tape on hand. Identify boxes with labels, stickers, or bold markers. As you pack, list contents of boxes in a notebook.
* Do not pack items that are flammable, corrosive, or explosive, such as gasoline, fireworks, aerosols, paints, pesticides, liquid bleach, paint thinner, pool chemicals, propane tanks, or Sterno.
* Hand-carry valuables or items of personal importance or sentimental value. This includes important documents, jewelry, collections, and family photographs.
* Pack in order. Top national movers suggest you start with out-of-season items. Next pack those items you use infrequently. Leave your daily needs unpacked until the last minute.

I hope you'll find these suggestions useful. My goal is to handle all the details of the transaction, so all you have to do is pack!

Home Equity

The largest single asset most people have continues to be a home of their own.

A recent survey found that the equity we have in our homes outweighs the value of our investment portfolios, on average, by a ratio of 3 to 1. With stock prices still volatile, many families remain focused on preserving and protecting the equity in their homes.

Therefore, home improvement and home maintenance have become extremely important to home sellers. Deferred maintenance definitely lowers a home’s value.

The three most common areas of deferred maintenance that affect a home’s selling price are:

* Water damage
* Pests
* Roofs needing repair or replacement

Refraining from deferring maintainance on these items will go a long way to helping you maintain your home's best value.

Minimize Stress

Did you know that for most people, moving ranks near the top of the list of stressful events? Here are some things you can do to minimize stress when you are ready to make a move:

* Choose a real estate agent who communicates clearly and frequently, keeping you up to speed on every step of the process.
* Consider how long it will take from the time you make an offer on a property until the transaction closes. Once an offer is received and accepted, it may take from 30 to 45 days to obtain financing. Being pre-approved for a loan can shorten that time frame considerably.
* Decide whether you want to move yourself or have professional movers handle the job. If you hire a moving company, be sure to book well in advance.
* Think about cleaning services. After everything is packed and moved is a great time to have someone come in and clean.
* Arrange at least two weeks in advance to have utilities and phone service disconnected at your old house and reconnected in your new home on the move-in date.

First Impressions

When you are ready to market your home, one thing to keep in mind is that you have only one chance to make a first impression--beginning the moment potential buyers drive up.

You can help create that good first impression by presenting potential buyers with a well-cared-for yard including a mowed lawn. Your front door and porch should be clean and neat, preferably freshly painted. Have snow removed in the wintertime and leaves raked in the fall.

These first important encounters create a positive impression that carries through to the rest of your home. An inviting atmosphere implies that your house has been well maintained and taken care of. Homes that convey pride of ownership usually receive the best offers.

If your home appears disheveled or uncared for, prospective buyers may quickly conclude it's been neglected and is in need of repairs. Such a negative impression can result in a less-than-generous offer--or possibly no offer at all.

Try viewing your home through a potential buyer's eyes. Would YOU buy your home?

What A Buyer Needs at the Closing Table

Once the contract has been negotiated and the closing papers are about to be signed, you will need additional items for the transaction to close. When you go in to sign the papers, you will need:

* Photo ID, either a driver's license or passport.
* A cashier's check for the down payment and closing costs. Personal checks are not acceptable because they take time to clear.
* A hazard or fire insurance policy ready to put in place upon closing.

Needless delays in closing have been caused by lack of insurance or waiting for a personal check to clear. Many buyers think that they will receive the keys to their new home when they go in to sign and pay their money. But it may take a few days past signing for the paperwork to be processed. Plan your moving date accordingly. Check the possession date on your contract.

Please don't hesitate to call or email me if you have any questions or would like me to review the details with you. Together we can work out a timeline to accomplish your real estate goals. I welcome the opportunity to help you when you are ready to buy a home.