March, 2009

President Obama signs law, keeping banks out of real estate

A new law signed by President Obama will keep banks out of real estate Under the new law, which was part of the Omnibus appropriations bill, banks are prohibited from entering the business of real estate brokerage or management

The National Association of Realtors®, which has been fighting for this ban for eight years, says that the law is necessary to keep homebuyers’ costs down. Without it, banks could form anti-competitive and anti-consumer “concentrations of power” within the financial services sector.

Military families get a break in the stimulus

Many military families don’t live on the base where they’re stationed, buying homes instead in surrounding neighborhoods. Now, military families who are transferred and forced to sell their homes in a tough market no longer have to lose a lot of money. The stimulus bill includes a provision that will cover 95% of a military family’s loss on a home they sell because of a transfer.

Bad neighbor: Bob Dylan

Bob Dylan’s neighbors in Malibu are not happy with what they say is “Blowing in the Wind” from the singer’s house. Dylan keeps a Porta-Potty at the end of his driveway for his security guards. Neighbors say the breezes from the beautiful Pacific Ocean are carrying the stench of waste treatment chemicals downwind to other members of the Point Dune community. Residents contend that on warm nights, they have to evacuate their homes to get away from the odors. One family claims to have been made ill from all of the noxious fumes.

Good Neighbor: Playboy bunnies?

One of the most famous pieces of real estate in this country has to be the Playboy mansion. While plenty of men would love to live there, they now have an option for the next best thing: Next door neighbor. Hugh Hefner and his wife, Kimberly have listed the personal residence adjacent to the Mansion for sale at almost $28 million.

Aside from the amazing views, this two-storey, 7300 sq ft house built in 1929 includes:

• 2.3 acres
• a hand carved staircase
• a newly remodeled kitchen
• a library
• a pool

There are two options for at-risk homeowners under the plan: Refinancing, or loan modification.

To qualify for refinancing, you must meet these four requirements:

• My home is my primary residence
• My loan is from either Fannie Mae or Freddie Mac
  *Not sure?
  Click or Call Fannie Mae at 1-800-7FANNIE
  Click or Call Freddie Mac at 1-800-FREDDIE
• My outstanding mortgage is worth between 80% and 105% of my home value

If you meet all four of the requirements, gather as much of your financial information as you can, including:

• Tax returns
• Pay stubs
• Account balances on credit cards
• Student loan balances
• A second mortgage
• Information on any other debts

Then, simply call your lender. While some lenders are just starting to get the hang of the program, they may not be ready to accept applications. Take a deep breath, and be ready to call back.

If you don’t meet the requirements above, you may still qualify for a loan modification.

You can apply for a modified loan if you meet the following four requirements:

• My home is my primary residence
• I acquired this mortgage before January 1, 2009
• I’m having trouble paying my mortgage
• I owe less than $729,750
  *Remember, this amount is just for the first mortgage

Again, gather your financial information and contact your lender. If you stay up-to-date on your new loan, you may qualify for an overall mortgage balance reduction worth up to $1,000 a year for 5 years as an incentive for making your payments.

For more information, visit www.MakingHomeAffordable.gov, or call 1-888-995-HOPE.

In the Northeast, housing starts for privately-owned units jumped a whopping 88.6% in February over the previous month. (Apparently, it’s not too cold to start building). That number is still down 50% from the same time last year, but February’s big jump is good news.

In the Midwest, another big spike: New home construction was up 58.5% compared to January. Another huge increase, another bit of good news, even though construction is down compared to a year earlier.

In the South, construction was up more than 30%.

The West, however, was the one part of the nation that did not experience a jump. New home construction was down nearly 25% from January and 60% from a year earlier. But, this slowdown is offset by the increases in other parts of the country.

Nationwide, building permits were also up—3% from January. It’s too early to say whether this is the beginning of a trend towards recovery or just a flash in the pan. Most analysts were predicting further downturns in the market and were surprised by the February numbers. But it’s the kind of surprise we could use a lot more of.

Today’s figures come from the US Census Bureau and the US Department of Housing and Urban Development.

Many sellers put their trust in St. Joseph, the patron saint of home and family. Some people believe that burying a plastic statue of St. Joseph on the grounds of the property they’re trying to sell will bring the buyers, and the contracts, and the settlement.

CNN and MSNBC have both reported on the phenomenon; some sellers say burying the statue sold their home within the day. Even some REALTORS® bury the statue for good measure.

There are disagreements about whether the statue should be buried upright, upside down, in the front yard or the back. But everyone agrees that if it works, the statue deserves a place of honor in the successful seller’s new home.

In the book, St. Joseph, My Real Estate Agent, religious author Stephen Binz cites dozens of examples of sellers giving the credit to the statue. In one story, the statue didn’t work—a man buried it, saw no results, gave up, and threw the St. Joseph statue into the local dump.

And the next week? Somebody bought the dump.

1.  Take a market breather.  If your house has been on the market for months—especially over the holidays—talk to your agent about taking it off for a few weeks to give you a chance to spruce it up.  Buyers who were busy with the holidays may be coming back to the market, giving you more foot traffic:  they’ll look at a newly listed home more positively than one that’s sat for several months.

2.  Feed your buyers.  During your open house, fill up your kitchen sink with ice and stock it with bottled water and sodas.  Buyers may be exhausted from a day of viewing homes, and will appreciate that you care; it also gives them an excuse to linger in the kitchen and really imagine living there, instead of rushing through it.  

3.  Replace the doorknobs.  There’s nothing in your home that you touch as much as a doorknob.  Buyers will subconsciously appreciate a clean, new, shiny doorknob.  Also, make sure all of the drawer pulls and closet handles around the house are tight.  It’s a chore that takes three seconds with a screwdriver and will prevent a bad impression—a loose drawer pull makes a buyer wonder what else in the house is in disrepair. 

4. Deep clean.  Have the windows professionally cleaned, inside and out.  Polish all the mirrors and keep them polished.  Take down drapes, blinds, and shades and have them cleaned—they take a beating in the winter, and getting rid of the dust will not only make a visual difference, it will also give your home a clean, laundered smell.   

5. Remember—it’s not your home anymore. The moment you put your house on the market, you should be ready to give it up.  The sooner you get into the right mindset, the easier it will be to look at your home with a critical eye—and put that favorite ratty chair or the less-than-perfect, but sentimental, rug in storage.

“Design to Sell” with Shane Tallant shows weeknights at 8 p.m. on HGTV.