There are four key points to THE NATIONAL ASSOCIATION OF REALTORS® Code of Ethics.

1. Be honest with all parties in the transaction – not just with you, as his or her client, but also with the other real estate practitioner and his or her clients.

For example, if REALTORS® represent a buyer with a spotty credit history, they can’t be dishonest with sellers about this fact. At the same time, REALTORS® can help their buyer clients collect and assemble information, such as credit reports and audited tax returns, to demonstrate that the buyer has addressed the problem and improved their situation.

2. Put your interests ahead of his or her own, at all times.

A REALTOR® makes every effort to understand the housing needs of his or her client, thoroughly researches available inventory, and shares all relevant information with the buyer so that he or she can make an informed decision. This service is provided regardless of the compensation available.

3. Disclose all pertinent facts regarding the property and the transaction to both buyer and seller.

If a REALTOR® believes information provided by a seller is questionable, the REALTOR® is obligated to investigate. REALTORS® should recommend that buyers consult their own experts, such as home inspectors, to address concerns. For example, if a home seller asks his or her REALTOR® to conceal the fact that the roof leaks, the REALTOR® cannot comply; if the seller insists, the REALTOR® should end the business relationship with that seller.

4. Be truthful in all communications with the public.

When REALTORS® distribute newsletters, create Web sites, or place advertisements, they must be careful not to represent other real estate professionals’ work product as their own. If recently sold or listed properties in the community are publicized, it must be clear whether the REALTOR® was actually involved in the transaction, or whether that data came from the local multiple listing service or other source. This ensures that the public understands the REALTOR®’s experience and can make an informed decision when choosing real estate representation.

For more information on the THE NATIONAL ASSOCIATION OF REALTORS® Code of Ethics you can click here.

Backyard Living

No longer the domain of cheap lawn chair and plastic tables backyards have become extensions of the home. Large decks expand your living area at a smaller cost than adding an enclosed room to your house and make entertaining guests a real treat.

You may also want to consider the addition of a fire pit or outdoor fireplace to your outdoor space. Just make sure to consult with your local authorities before installing one.

Classic Neutral Colors

Deep gray browns, gray blues, muted beige, and chalky white have been touted particularly popular shades. Remember, if you are prepping your home for a sale stick with the neutrals and try to stay away from bright colors. Paint can be a relatively inexpensive home improvement that will refresh any home.

Backyard Gardens

First Lady Michelle Obama led the way in 2009 when she installed one at the White House and the trend continues in 2010.

Made in America

Support your local retailers and try and purchase products made in America. Purchasing these products supports employment, job growth and in the end benefits the economy for everyone.

DIY

With the economy still shifting, homeowners are doing more and more projects on their own to keep the costs down.

As a seller, there are some real benefits to selling your home through an auction. Unlike the usual home sale process there is no negotiation. You know your buyers are serious and the competition of an auction may increase the price your home sells for.

There are three common types of auctions:

Absolute Auction

- house will sell to the highest bidder, regardless of price.
- marketplace response is strong, as buyers know a sale will be made.

Minimum Bid Auction

- protects the seller from selling below a set price.
- usually has fewer prospective buyers

Reserve Auction

- the highest bid at the auction is considered an offer.
- seller has a couple of days to accept or reject the offer.
- down side of this type of sale is that not many buyers may be willing to risk the sale being turned down

Above all, always work with a REALTOR® who knows the auction process. He or she may already have a relationship with an auction company and can assist in organizing the sale. Remember, the property needs to be in saleable condition to get the best price; your REALTOR® can discuss staging the home with you.

Before you proceed with any rezoning application you will want to talk to your Real Estate Attorney and learn about the local laws for changing the “use” of the building. Be prepared to go through several months of reviews and hearings with local government. The neighbors will have a say in the process, as will your local municipality government. If that bureaucracy is something you’re willing to do, the builder you hire to convert the building to condos can also assist with the zoning application. Always consult with professionals when tackling a rezoning process.

Once the property has been zoned for multi-family use then the renovations can begin. Converting a business property to a residential property can be an expensive and time consuming undertaking. Remember, most business properties require a considerable amount of work to bring them up to residential standards that are mandated by your local municipality government.

In addition, when you are ready to sell the condos, you will have to set up a Condominium Association. You will be selling each owner both their space and access to common areas, shared heating units, etc… your attorney will need to draw up contracts.

Converting a property from business zoning to residential can be a long, drawn out and frustrating process. However; with patience, a trusted Real Estate attorney and a reliable builder you may be able to see a significant profit when those condos go to market.

So, let’s take a look at what you need to do to proceed with a short sale and not get yourself in hot water with the bank.

If you are planning on selling your house for less than it is worth keep in mind you will not be able to pay off the current mortgage nor will you have any collateral. Your options in this situation are a short sale, a foreclosure or a deed in lieu of foreclosure. All of these options will require that you prove to the bank that you do not have the ability to repay the debt owing on the mortgage.

Your bank may agree to a short sale as it is less costly than a foreclosure and does not require court action.

Keep in mind that proceeding with any of these scenarios will have an adverse effect on your credit score. Your credit score will drop between 200 and 300 points preventing you from garnering credit for several years.

Your first step should be to contact an experienced real estate attorney that specializes in short sale and foreclosure scenarios.
Your attorney will negotiate with your lender on your behalf and fully understands the process. Your lawyer will more than likely require their entire retainer up front; after all, you are having difficulty paying your bills as it is.

Providing proof of financial hardship is the key information required by your attorney. To do a short sale or a deed-in-lieu, you will have to show the bank that you cannot afford to make the mortgage payments, meaning that the house will go into foreclosure if the bank doesn’t allow you to proceed with a short sale.

Remember, depending on what state you live in, the lender could come after you for the unpaid debt that is outstanding on the mortgage. For instance, in you owe $500,000 and sell the home for $350,000 the lender could sue you for the $150,000 they have lost. The lenders recourse on the debt owed is dependent on the state that the mortgage was drawn in. In some states, known as “non-recourse” states the lender cannot sue you for the amount they have lost in a short sale or foreclosure.

Financial hardship can be an incredibly trying time. Keeping honest and open communication with your lender and consulting an experienced attorney will only make that hardship less traumatic in the end.

Answer:
Yes, manufactured and modular housing are both covered by the first time home buyer tax credit, as long as they are being used as a primary residence. According to the IRS, you can even use the credit on a manufactured home if you’re renting the land it sits on.

Again, the credit is for 10% of the purchase price, up to $8000. So if you buy a manufactured home for less than $80,000 — you’ll only be able to claim 10% of that. For example, if the home costs you $65,000 you’re only going to be able to claim $6500 for the tax credit.

However, in your case, you won’t be able to claim the credit at all, because you didn’t actually buy the house. Since you received it as part of a settlement and didn’t pay any money for the house, you don’t get to take the credit.

Have a question for Real Estate Today? Drop us a comment! It could be featured in a future show!

And therein lies the rub. Prices are down, and quite a few commercial properties are going into foreclosure so the banks are scrutinizing those loan applications extra hard. And, just like residential properties, lenders are looking extra-carefully at not only the borrower, but at the property as well. Does it have positive cash flow? Does it have a good track record of generating money? Is it likely to generate money in the future?

In terms of the borrower, they’ll be looking at your entire credit picture. Or, if you’re buying as a corporation or limited liability partnership, they’ll be examining the business’s books too.

Lenders are more skittish these days, because vacancies in a commercial property could dry up the owner’s ability to make mortgage payments. So you could be wise to check with a few commercial lenders to see what they have to say. If they all come back negative, perhaps you’re missing the message: It’s too risky.

Otherwise, ask the lenders exactly what they want to see from you besides a good credit score.

Have a real estate question for us? Drop us a comment!

What we’re seeing is a boost in the Pending Homes Sales Index for the month of April, meaning more homes are heading to closing. It’s a number that has grown steadily, right across the country, for the last three months.

Yun says there are three reasons for this: one, low prices; two, incredibly low interest rates; and three, the new federal tax credit for first time home buyers.

Of those three, Yun says he thinks first time home buyers are behind the surge in sales. He says he’s heard from Realtors all across the country that not only are they getting more phone calls from people interested in using the tax credit for first time buyers,, but that they are also seeing more foot traffic at open houses from first time buyers. Even California is beginning to see increased activity in their markets!

Affordability is very high right now, so that people who felt they were priced out of the market during the boom years, are taking advantage of this buyer’s market now.

Yun says, if you’ve got the financing, you should strongly consider buying now. There’s no point in waiting to see if prices are going to drop more, because in some markets, they are already beginning to bounce back. Not only that, but if you’re buying for the first time, you must close on your house before December first if you want to claim that tax credit.

Yun says things will keep improving through the end of this year, maybe even into the beginning of 2010. Maybe there really is a light at the end of the tunnel!