Archive for February, 2009

First Time Home Buyer Seminar

Good Morning!

You are invited to our First Time Home Buyer Seminar.  Hosted by two of your very own Lister Sisters, Nicole and Michelle, and our fabulous in-office Edina Realty Mortgage Officer, Robyn Kellogg. Please join us for some Buca and great information. This is a pressure free information session. You won’t be asked to sign any contracts or anything like that. (We will have a drawing for a fun door prize or two, so you may want to sign up for that…) We just want to be your Real Estate Resource! Oh, and did I mention that it is 100% free to attend!

Here are the details…..

When: Tuesday, March 3, 2009 6:30 PM

Where: Edina Realty, Eden Prairie Office.  11800 Singletree Lane, Eden Prairie, MN 55344

Questions, Comments, Concerns? Contact us! We’d love to hear from you!

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Homeowner Affordability and Stability Plan Announced

Article produced by Bloomberg News overviews the (2 part) Homeowner Affordability and Stability plan from the borrower’s perspective.

I think you may find this to be a useful guide to help you formulate answers to questions your clients may soon begin asking.

Questions and Answers for Borrowers about the Homeowner Affordability and Stability Plan

Borrowers Who Are Current on Their Mortgage Are Asking:

1. What help is available for borrowers who stay current on their mortgage payments but have seen their homes decrease in value?
Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan. Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.

2. I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?
Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify. The current value of your property will be determined after you apply to refinance.
(more…)

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New Information on First Time Home Buyer Tax Credit

Both the house and senate have passed the new stimulus package, which is set to be signed by the president sometime in the near future. For all of you out there that have been following the first time home buyer tax credit, here are the proposed changes via www.realtor.org.

Highlights include:
Increase of up to $8000.

Income limits remain intact.

There is no repayment, unless you sell with in 3 years.

Check out all the comparisons of the current credit and the new proposed credit here:
http://www.realtor.org/wps/wcm/connect/b32db1004d05f6338052c5fd73e5610f/government_affairs_tax_credit_chart_021308.pdf?MOD=AJPERES&CACHEID=b32db1004d05f6338052c5fd73e5610f

As usual we are just an email away, so shoot your questions and/or comments our way. We’d love to hear them! :)

Happy Home Hunting!

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What we Do/Do Not know about the $15,000 tax credit

This is a note about the $15,000 tax credit from Robyn Kellogg with Edian Realty Mortgage.

Happy Friday-

This is what we DO know and what we DO NOT know………………..
 
As most of you are aware it appears that the tax credit for first time homebuyers
will increase from $7500-$8000 instead of the $15,000 that we all had been
reading and hearing about.
 
IF this passes, there would be no repayment as long as you stay in your home
for 3 years.  I have seen and heard of  different purchase contract dates.  I have
seen as long as you purchase between 1/1/09 and 8/31/09 and also 1/1/09 and 11/30/09.
 
Needless to say, we will need to see what actually passes and what is signed off by President Obama.
 
More details to follow.
 
Have a great weekend!

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Fannie Loosens Refinancing Rules

Daily Real Estate News 

Fannie Mae plans to eliminate some credit-score requirements, scale back income-documentation standards, and waive the need for appraisals in some cases, starting on April 4.

The mortgage finance company believes the changes will allow more home owners to refinance into new home loans at near-record low interest rates.

Analysts say the relaxed rules for loans that Fannie Mae owns or guarantees are unlikely to have a significant impact on mortgage-bond investors and mortgage insurers.

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Senate OKs $15,000 Bonus for Home Buyers

Housing could get a big boost from the latest addition to the mammoth stimulus bill working its way through Congress.

Senate legislators unanimously approved a proposal Wednesday that would allow a tax credit for home buyers of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time homebuyers.

“It is time to fix housing first,” said Sen. Johnny Isakson, R-G.

Isakson’s office said the proposal would cost the government an estimated $19 billion. In all, the stimulus is now topping an estimated $920 billion.

In an op-ed that appears in Thursday’s Washington Post, President Barack Obama painted a dire picture if Congress fails to move quickly to pass the stimulus bill.

“This recession might linger for years. Our economy will lose 5 million more jobs. Unemployment will approach double digits. Our nation will sink deeper into a crisis that, at some point, we may not be able to reverse,” Obama wrote in the op-ed titled, “The Action Americans Need.”

Source: The Associated Press, David Espo (02/05/09)

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Why use a REALTOR®?

Why use a REALTOR®?
All real estate licensees are not the same. Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. They proudly display the REALTOR “®” logo on the business card or other marketing and sales literature. REALTORS® are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reports that 84% of home buyers would use the same REALTOR® again.

Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.

But if you’re still not convinced of the value of a REALTOR®, here are a dozen more reasons to use one:

1. Your REALTOR® can help you determine your buying power — that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders — banks and mortgage companies — offer limited choices.

2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.

3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you’ll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date.

6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.

7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.

8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.

9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients.

10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

11. Your REALTOR® can help you objectively evaluate every buyer’s proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing — a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).

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8-Low cost Ways to spruce up a Home

8 No-Cost and Low-Cost Ways to Tweak Your Listings

Got a listing that needs a new look? Here are some inexpensive ways to make it shine.
By Maggie Sieger | February 2009
Chances are the decor in that listing you just took is a lot like most people’s wardrobes: There are a few items that went out of style a decade ago, but they’re so comfortable that it’s impossible to see them go.

 ”We grow accustomed to our space, and we stop seeing it,” says Melissa Birdsong, vice president of trend, design, and brand for Lowe’s, the home improvement giant. “People tend to become blind to their own things.”

 But everything needs updating eventually. Birdsong suggests home owners cast a fresh eye on their living space, pretending that they’ve just moved in and are assessing the previous occupant’s design choices.

 Betsy Westman, a broker-owner with Westman Realty in Grand Rapids, Mich., says real estate professionals can have a big impact on updating a home’s look by helping clients brainstorm new ideas and by being straightforward about outmoded design elements. The following tips can help get a home up-to-date without breaking the bank.

1. Move it.

Simply rearranging the furniture can reenergize a room. Add and remove furniture, lamps, rugs, and accessories from other parts of the house to create a whole new look. Mirrors are particularly useful when it comes to updating a room. Try one out in different rooms to see where it fits best. Even just moving a mirror to a different wall can create a more welcoming feel.

2. Plant it.

Houseplants are a generally undervalued design component that can add texture, warmth, and color to any room. Just drop plants in their store containers into decorative planters. Small plants can be moved easily and regrouped to change a room’s look, while larger ones make a statement on their own.

Group plants of differing heights, fullness, and color for the most dramatic effect. Jettison the scraggly specimens, Westman says. “It’s important to have plants that are well maintained and in tip-top condition.”

3. Paint it.

Paint is one of the easiest and most cost-effective ways to make a substantial change. Use dramatic colors in powder rooms and dining rooms, and more neutral colors in living spaces. When selecting colors, “be sure to ask, ‘What am I trying to do? How do I want this to feel?’” Birdsong says. “And always, always do a test before you paint the whole room.”

4. Organize it.

“Clutter just happens,” Birdsong says. “So neaten up!” She advocates a variety of organizing tools to make a space feel polished while maintaining utility. Hooks and shelves inside the door give people a place to hang coats and keys, while canvas bins or natural baskets help contain magazines and mail. “Just a row of hooks preattached on a board is so easy to install,” she says. “And shelves are a great way to neatly display collectibles.”

5. Hide it.

Have a banged-up wall? It may be easy to camouflage. Paintable wallpaper (available for as little as $16/roll from Creative Wallcovering) will smooth out an uneven wall or hide minor dents and dings. Adventurous home owners can even try a simple two-step painting process for a more complex finish. Birdsong suggests applying a solid base coat, then a glaze.

“These days, it’s pretty user-friendly,” she says. Caution: Your intent should never be to mislead buyers; be sure to disclose flaws that would affect home value.

6. Replace it.

Cabinet handles, switch plates, and other small pieces of housing hardware can update a home for just a few dollars a piece. Westman suggests scanning each room to see what looks worn or outdated and then replacing it. Inexpensive quick-connect faucets can make upgrading the look of your bathroom a snap. Just be sure to measure before you go to the hardware store. Some sinks are drilled for an eight-inch spread. Others require just four inches.

“And don’t forget the toilet seat,” adds Westman. “Fresh towels and a new toilet seat go a long way toward making a bathroom feel clean and new.”

7. Light it.

Lighting can have a major impact on a home’s look and feel. Whether a room seems dark or too bright and harsh, try “layering” the lighting by adding accent pendants and lamps. Make sure they have independent controls, so that you can turn them on and off at will.

“Light is such a mood setter,” Westman says. “You can create a cozy feel just by turning down the lights.” Add dimmers in the dining room, bathrooms, kitchen, and even the hallways for less than $4 each. Then adjust the lighting to create the mood you want.

8. Clean it.

Turn a critical eye to the flooring to make sure it’s up to snuff. Scrub grout and seal natural stone. Rub out scratches and nicks on wood floors with scratch cover. “Get down on your hands and knees and detail the floors,” Birdsong says. “It takes a little elbow grease, but the results are well worth it.” Vinyl flooring is a bit harder to spruce up but usually can be replaced easily and inexpensively

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