Rio Vista Blog

My New Blog

Staging Tips for Selling Your Home

March 19th, 2010 8:12 AM

Tips for staging a home:

Get it clean. If your house isn’t clean, it instantly sends up negative thoughts that the home is not well maintained. If your house is spotless, the first impression will be positive.

Basically, you want to strip the house to its bare essentials, depersonalize it so potential buyers can superimpose themselves and their lifestyle on the house. Here are some current ideas.

1. Visit model homes and examine shelter magazines for inexpensive decorating ideas. Always keep in mind you are not decorating for yourself but for the general public.

2. Start with the outside. Give the house a fresh coat of paint, add shiny hardware to the front door and plant a few flowers to send a message the house is loved and well cared for.

3. Declutter every room to make it look larger. Get rid of family pictures, trophies and knickknacks. Closets and drawers should be no more than 30% full.

4. Invest in eco-friendly but bright lights. Open the drapes or remove them completely. Light, bright rooms give the impression this is a happy place and everyone wants to move into a happy place.

5. Feature only a few pieces of furniture with mainstream appeal. Pull pieces away from walls to make rooms look bigger.

6. Make sure a room’s primary use is obvious. A bedroom should look like a bedroom, not an office, hobby center or gym.

7. Bedrooms and kitchens are difficult to stage because they are in daily use, but make the effort. Clear everything off the counters and nightstands, roll up the rugs and hide the laundry hamper. Buff the cabinets with car wax and clean under the sinks. Invest in pristine white bed linens and towels.

8. Minimize the pet effect. Remove food bowls and litter boxes to the utility room. Deodorize thoroughly.

9. Organize the utility room and garage. Hang up the bicycles, roll up the hose. Renting a storage locker is worth the cost if it helps you sell faster and for a higher price.

10. Once your house is staged, invite your friends or Realtor over and walk them through to get an objective opinion.

Posted by Carla Harden on March 19th, 2010 8:12 AMPost a Comment (0)

Credit Consequences of Home Loss

March 23rd, 2010 9:00 AM

Credit Consequences of Home Loss

Financially distressed homeowners not only face painful personal circumstances, but also they must consider choices that have both tax and credit implications. Recently, the legal department of the California Association of Realtors® issued a memorandum titled "Credit After Foreclosure, Bankruptcy, or Short Sale." It is an extremely useful document for those who have questions about how credit is affected by the various ways in which one might lose his or her home.

In large part the memo is based on the 2008 update of Fannie Mae guidelines so it should be clear that the explanations are not completely general or unqualified. When, for example, it is said that a person is not eligible to obtain a home loan for a certain number of years, that means that Fannie Mae won’t buy a home loan made to that person during that time. Granted, most lenders want to be able to sell their loans to Fannie Mae or Freddie Mac (whose rules tend to be similar), but there might be portfolio lenders or other institutions that would make such a loan. The following are contents of the memo:

Five years after a foreclosure, a consumer may be eligible to obtain a home loan. Of course, certain restrictions may apply. At least a ten percent down payment is required, and a minimum credit score of 680. Also, purchase of a second home or investment property is not permitted.

A consumer may be eligible three years after foreclosure if "extenuating circumstances" had led to the foreclosure. Extenuating circumstances are "nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations."

Four years after giving a deed-in-lieu of foreclosure, a consumer may be eligible for a home loan. If there had been extenuating circumstances, that period is shortened to two years.

In the case of a short-sale, when the mortgage had been delinquent, a consumer may be eligible for a home loan two years after completion of the short sale. There are no exceptions due to extenuating circumstances.

If the consumer had executed a short sale, but had not been delinquent on his or her mortgage, then there is no two-year period applicable. To be eligible for a home loan, the borrower must not have had any mortgage delinquencies of sixty days or more during the past twelve months, and the borrower must not have "entered into any agreement with the short sale lender to repay any amounts associated with the short sale, including a deficiency judgment." FHA may require a three year period.

In the case of bankruptcies, other than Chapter 13, there is a four year period from the discharge or dismissal date of the bankruptcy before the consumer may be eligible to obtain a home loan. With a Chapter 13 bankruptcy, the period is two years.

It is frequently said that short sales have a less damaging effect on credit than do foreclosures. While this may be true with respect to the length of time before one can obtain a home loan again, it should also be noted that a short sale has no greater effect than a deed-in-lieu when there are extenuating circumstances. Moreover, it is certainly not true with respect to one’s FICO score. A deed-in-lieu, a foreclosure, or a short sale all have the same impact as far as FICO is concerned. Some people will not believe this. They should visit the FICO web site and look at the question regarding alternatives to foreclosure.

Posted by Carla Harden on March 23rd, 2010 9:00 AMPost a Comment (0)

Preparing to Buy, the Step by Step Process

March 12th, 2010 8:18 AM

How to begin the home search process step by step:

Realtor: Search for a real estate professional who has experience and knowledge with the location, area, development and property type you value. Don't just go with the first professional you bump into.
Research: Get to know the neighborhood you want to live in. Once you know generally where you want to be, concentrate on looking at homes as they come up in your selected area. You will get to know what you like and don't like and utimately be able to recognize the house that is special once you see it.
Inspect: Seek out a knowledgeable, reliable home inspector who can address quality of construction and property devaluators. Determine if the home is outdated and whether or not the items found are costly to fix. Get estimates and then decide if you are up to the task of hiring someone to change out troublesome items. Siding, the roof and wiring are some examples.
Be Financially Ready: Get pre-qualified with a lender before you look. Know what your costs will be for closing and what the costs of your loan will be. You want to request a good faith estimate so you will not have any surprises later. A good credit score may get you a lower interest rate.

Will you recognize the right house when you see it?

Evaluate: Know what you "need" and what you "want". Prioritize the items on these two lists. Buying real estate is all about compromise. Take the time to know what you like. No home is ever perfect. Select the features that mean the most to you and find the home that emphasizes those features.
Decor distractions: Notice how the current owner has decorated and furnished the property. Pay close attention to what can easily be changed and what cannot. Try to see beyond what is in the house and look at the structure and space.
Location: Location remains the main value criteria as property cannot be moved away from the bad things around it or toward the good things in the area. Some things will not change like power lines or a noisy road.
Liveable space: A house can be made larger, but at the cost of considerable time, money and inconvenience. Make sure you can envision your belongings in the home, how they will fit and where you will put them.
Expensive problems: Consider the cost to fix or replace what you don't like. What can you solve yourself? With the help of your real estate professional and the home inspector, determine what items are necessary and cost them out. Then weigh the benefits against expensive repairs at the price you are paying.

When you're well prepared you will be able to make a sensible decision that you can live with and with little effort. You will know it when you see it.

Posted by Carla Harden on March 12th, 2010 8:18 AMPost a Comment (0)

Get Closing Costs and Appliances with Home Path

March 5th, 2010 10:40 AM

Fannie Mae wants to sell its housing inventory that it acquired through foreclosures. The properties are listed for sale on HomePath.com. To do so, it's offering buyers incentives for those properties.

The new incentives recently began and are eligible for buyers who will live in the home. According to Fannie Mae, the offers must be accepted on or after January 28, 2010 and they have to close before May first for properties on its site: Homepath.com

So what's the special offer? Buyers can receive up to 3.5 percent of the sales price for closing costs or the purchase of a new Whirlpool appliance or even a combination of the two.

There are more incentives. The government's current buyer incentive programs include the extension of the First-Time Homebuyer Credit through April 20, 2010 (there's a 60-day cushion to complete closing beyond that date). This program broadens the reach to include existing homeowners. Here is a quick look at eligibility and the incentives:

$8,000 tax credit for first-time homebuyers
$6,500 tax credit for existing homebuyers who have lived in their current residence for at least five years but want to relocate to a new primary residence
Increased income limits for individuals and couples Tips for buying a home owned by Fannie Mae.

What you see is what you get. When you are buying a property owned by Fannie Mae, there are a few things that you should know. According to its website, Fannie Mae may make some repairs to a property but probably not much. "Fannie Mae sells each property "as is," which means that the buyer accepts the property "as is." Fannie Mae is not responsible for fixing any problems after settlement."

Home inspections Fannie Mae also recommends what I have written about for years—hire a qualified home inspector to give you an accurate report on the current condition of the home. For a relatively small amount of money, this can save you a lot and give you a greater understanding of what problems exist currently or might soon develop.

No contingencies If your home is on the market and you're shopping for a new one but need to close on your primary residence, Fannie Mae isn't the way to go. "Fannie Mae will not accept offers contingent on the sale of your current home. Other types of contingencies will be considered on a case-by-case basis."

Get prequalified Knowing that you're prequalified to purchase a home at a specific price will make shopping for the home that fits your budget easier. But Fannie Mae cautions, "A loan prequalification doesn't mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted."

Making an offer Just as with most real estate transactions, making an offer on a home requires a lot of research. Your real estate agent can get you vital information and when you're ready, the offer is submitted via your agent. "Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through our real estate listing agents. You may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property." Buying a home has become more affordable than ever and, with more incentives, it may be time to do some spring house hunting.

Posted by Carla Harden on March 5th, 2010 10:40 AMPost a Comment (0)

Mortgage Rates Make Homes Affordable

March 5th, 2010 9:07 AM

Freddie Mac today released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 4.97 percent with an average 0.7 point for the week ending March 4, 2010, down from last week when it averaged 5.05 percent. Last year at this time, the 30-year FRM averaged 5.15 percent.

The 15-year FRM this week averaged 4.33 percent with an average 0.7 point, down from last week when it averaged 4.40 percent. A year ago at this time, the 15-year FRM averaged 4.72 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.11 percent this week, with an average 0.6 point, down from last week when it averaged 4.16 percent. A year ago, the 5-year ARM averaged 5.08 percent.

The 1-year Treasury-indexed ARM averaged 4.27 percent this week with an average 0.6 point, up from last week when it averaged 4.15 percent. At this time last year, the 1-year ARM averaged 4.86 percent.

"30-year fixed mortgages fell below 5 percent to match levels seen two weeks ago and are helping to maintain affordable home-purchase conditions," said Frank Nothaft, Freddie Mac vice president and chief economist. "In fact, monthly principal and interest mortgage payments for a typical family buying a median-priced home of $163,800 were just $709 in January, the lowest amount since February 1998, according to the National Association of Realtors. For first-time homebuyers, the fourth quarter of 2009 was the third most affordable quarter since 1981 behind the first and second quarter of 2009."

"The federal tax credit for homebuyers, which expires on April 30th, may make housing even more affordable for some families already in the middle of the home buying process. In fact, the Federal Reserve's March 3rd regional economic review noted that several districts attributed stronger home sales to the homebuyer tax credit.

Posted by Carla Harden on March 5th, 2010 9:07 AMPost a Comment (0)