4 Tips to Make a Home More Inviting

Model homes are important tools for builders because they help buyers fall in love with a home. Phyllis Ryan, president of the model-home division of Interior Concepts, a Maryland design firm that specializes in furnishing new homes, has some tips that might benefit anyone who is selling a home.

• A stylish kitchen appeals to many buyers. If a sellers has upgraded cabinets and granite countertops, that’s good. If they don’t, it may help to display some stylish touches like an espresso machine, a retro toaster or just some luscious fruit.
• Lots of light makes spaces feel larger. Turn on all the lights even during the day and add a few extra lights if necessary.
• The master bedroom should seduce a buyer. Play soft jazz, pile the bed high with a cushy comforter and pillows. Stack plush towels in the bathroom.
• Add drama to a bottleneck or a dead end space. Prop an oversize mirror against the wall. It visually pops a space and adds drama.

Source: NAR & Washington Post, Elizabeth Razzi (03/14/2009)

How Will Foreclosure Effect Credit Scores?

Here is a short article that brings up a very good question…

The amount of damage to a credit score caused by foreclosure, deed in lieu or a short sale during 2008 and 2009 may be mitigated by the slower economic times, say some credit and legal experts.FICO may have to adjust its credit scores to lessen the impact of a foreclosure in the last two years, says Todd J. Zywicki, a professor of law at George Mason University.

''It just seems obvious that a foreclosure in 2008 or 2009 doesn't have as much information value as a foreclosure five years ago,'' he says. ''To the extent that foreclosure doesn't predict future behavior as much as it did in the past, you'd expect that the FICO algorithm would change to adjust for that.''

One of the country’s largest credit unions Golden 1 has already figured out a way to lend to people with a foreclosure on their record by offering a mortgage repair loan specifically for those who have lost a home to foreclosure and who want to buy a new one. BECU, another large credit union based in Washington State, is about to present a program to fellow lenders, ''How to Lend to the Newly Credit Impaired.”
Source: NAR & The New York Times, Ron Lieber (03/14/2009)

Housing Starts Unexpectedly Jump 22%

Nationally, housing starts are up in February vs January which is another good sign that the market could be finding the bottom. I have included the link to an article below that gives more detail and as it states, we will have to keep an eye on this to see if it is a trend or if the jump is due to warmer weather. Either way, it is great to see an increase instead of a decrease! For more information or to read the article click here.

Scammers Target Troubled Borrowers

We have been seeing a lot of strange things lately where borrowers in trouble are being taken advantage of by scammers. The newest one is where the scammers are taking advantage of borrowers that are interested in seeking relief that could be provided by President Barack Obama’s foreclosure-prevention plan. The company, or individual, collects money from the borrower, as much as $1,500, while promising to negotiate with the bank to get a quicker loan modification or short sale approval. Once they collect the money, they do nothing. The Federal Reserve recently issued this advice for people seeking to modify their mortgages:

•Work only with HUD-approved nonprofit counselors. (See www.hud.gov)
•Don't agree to pay a fee before you are provided with the promised service.
•Beware of people offering "guaranteed" results.
•Don't sign blank forms or documents you haven't read.

You can do a loan modification or short sale for free. In fact, under the program there could be an incentive for you to work with the bank to do so. If you ever have a question about what you are being told by someone, just give us a call at 463-1011!
Source: NAR & The Wall Street Journal, James R. Hagerty (03/11/2009)

Fed Prepares for Commercial Market Bailout

We haven’t heard much about the troubled commercial market but it looks like a bailout may be a possibility.

Last week, Federal Reserve Chair Ben Bernanke suggested at least $1 trillion in credit would be forthcoming in order to avoid a “looming crisis.” Analysts say that while delinquencies are few, office vacancy rates are nearing record levels. This leaves banks holding $1.72 trillion in outstanding commercial loans and many of them are on buildings that are nearly empty. In 2009, $300 billion of these loans are due to be refinanced by commercial banks, but the banks are reluctant to refinance because the properties are dropping in value.

Since both insurance companies and pension funds are heavily invested in commercial real estate, they, too, are at risk.
Source: NAR & Christian Science Monitor, Ron Scherer (03/09/2009)

$8000 Tax Credit Can Be Claimed This Year!

Great news for first time home buyers! If you close on a home before December 1, 2009 you can still claim the $8000 tax credit on your 2008 tax return. For more details please click here for the IRS pdf (Form 5405) explaining the tax credit. To see if you qualify and can get the tax credit, please talk with your accountant as tax rules often change.

‘Making Home Affordable’ Initiative

Have you heard about the new program to help assist home owners that need help in order to avoid foreclosure. There are a lot of home owners that can no longer afford their payments due to various reasons. They would like to refinance to take advantage of the low fixed rates available today, in turn lowering their payments, but are not able to because the value of their home as gone down.

There are two programs that make up this initiative. The ‘Home Affordable Refinance’ program and the ‘Home Affordable Modification’ program. There are incentives for both the lenders and home owners to participate in the programs.

Click here to check out the details and see if this could help you out.

What ANOTHER Plan - Introducing the Mortgage Modification Plan

Plans! Plans! Plans! We’ve had a stimulus plan, a bailout plan, an automaker survival plan, another stimulus plan, and on and on. How many plans will we have?!

Well here is another one. The Mortgage Modification Plan! This plan is designed to help people avoid foreclosure and stay in their homes by allowing them to refinance into better loans.

I found a great interactive tool that can help you get an idea of whether you would be eligible and if it would be of benefit to you. Click here to check it out!

Good News for First Time Home Buyers!

The $790 billion stimulus package hammered out by House and Senate conferees and signed by the President increases the home buyer tax credit to $8,000, from $7,500, and drops the repayment feature for buyers who hold on to their property for at least three years. The three-year minimum holding period is a safeguard against speculators' use of the credit.

The legislation also extends the effective date of the credit to December 1 from June 30, and extends eligibility to borrowers who buy their home with the help of state or local financial assistance that comes from the proceeds of tax-exempt mortgage revenue bonds. The credit remains open only to first-time buyers (those who haven't owned in at least three years) and some income eligibility restrictions apply, but those are unchanged from the existing program. It starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000, and buyers will have to repay the credit if they sell their homes within three years.

With the tax credit, low interests rates, and sales prices down to their lowest point in years, it is a great time to buy!

For more information on the stimulus package provisions please click here!

Source: NAR, AP, Washington Post, New York Times, Bloomberg, USAToday, and Wall Street Journal.

The Equity Savers Commercial!

The Real Estate Market in 2009

That is the big question that everyone is asking. We thought that 2007 and 2008 was a wild ride but 2009 is definitely turning out to be even wilder! To take a look at where the market is headed let’s go back and look at the past 10 years. The chart above shows what has taken place in our area since 1998.

As you can see we have enjoyed a steady housing market over the years until about the second quarter of 2005 when demand began to out pace supply. Prices soared as there were more buyers than there were homes for sale. After about a year of homes selling at a record pace the market began to slow up during the second half of 2006. Home prices have been declining ever since due to more supply and less demand.

Today, we are just back to where we were before home prices took a huge leap! That’s good news as homes are once again affordable for most Idahoans. Now that home prices are leveling out more buyers are beginning to take that step forward and purchase. The 2009 real estate market looks to be back to business as usual.

We are proud to say at The Equity Savers, even though home sales in 2008 are down 38% vs. 2007, our sales have increased by 11% during that same period! We contribute our success to our relentless marketing, giving your home the most exposure possible, our focused attention to customer service, and our experienced & knowledgeable representation. Oh, and by the way, all this for a low set fee that will Save You Thousands!