Tips For Renting Out Your Vacation Property

Many vacation properties can get overshadowed by the big chain hotels but that doesn’t mean there isn’t a crowd looking for your home. The secret is, let them know what’s in store for them and inspire them with all the reasons they shouldn’t stay at a hotel.

One of biggest fears these days are picking up the dreaded vampire bug (bed bugs) from public places. Capitalize on this fact – while private vacation homes have a chance of becoming infected with these bugs, there’s less of a chance since your home is not as exposed as public hotels.

Another feature of Vacation homes is that it becomes more of a secluded getaway with lots more privacy. Guest will enjoy less noise, less stress but still lots of fun.

There are a variety of problems that can be easily overcome when renting out your vacation home;

• Lower the price. One big mistake people make is they don't price according to the season. Your vacation home may command top-dollar in the summertime, but fewer winter travelers will mean more hotels and vacation homeowners are competing for the same few customers. Likewise, winter travelers are often more budget-conscious than those who travel in peak season, so price may be an important factor in their decisions.

• Team up with local businesses. When you rent out your vacation home, local businesses can benefit from increased business. Call your local restaurants, ski resorts, marina, water parks, amusement parks, movie theaters and arcades for discount or free coupons to add to your vacation package. Tell those businesses how often you have renters and how many people tend to visit per vacation.

• Increase and update advertising. Though you may be tempted to cut back on advertising when there's less money coming in from your vacation property, the slow season is the time to ramp marketing efforts up. Find ways to make the property seem more enticing. Emphasize amenities such as a fireplace, Jacuzzi or hot tub. If you have these features, make sure that's front and center in your advertisements because it's something people are looking for. Also, if your property is near attractions, promote that fact.

• Know your audience. It's always easier to craft an effective sales pitch when you understand your customer. If you allow dogs, many times you can attract travelers who are having a difficult time finding a vacation home that accepts pets. Large families looking for more of a budget vacation can take advantage of private vacation homes.

When it comes to renting out your vacation home, go the extra mile to create an outstanding experience for the guest, whether it’s through price cuts or a stocked pantry. It's may mean more work, but it's definitely worth it.

Getting the Most Bang out of that Tax Refund Buck

Have you been anticipating receiving your tax refund this year? Perhaps you want to save it for another rainy day or year; maybe you’ve decided to spend it on home improvements. If you are planning to embark on a few home improvements, it's best to know which of them are likely to pay off if you decide to sell your home and which is a waste of money.

A return on your investment should play a part in your home improvement plan. Your ROI tells you how much money you could recoup when you sell your home. Will that minor bathroom remodeling job be a good investment or not? Should you spend the extra money to fix up the kitchen?

There are many factors to consider when making the decision to give your house a face-lift. Location is always a key issue; not only the neighborhood, but which part of the country. Some improvements are popular with buyers regardless of their region, while others seem to be in higher demand in certain areas of the U.S. But more often than not, sellers can get back a substantial percentage of their expenditure for a variety of well-executed improvements.

Keep in mind that spending more doesn't necessarily mean you'll get back a higher percentage later.

Take a look to see how much a home improvement will cost you versus how much you can recoup when selling your home and this is only a rough estimate;
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1. A Bathroom remodel job may cost $12,000 to $15,789 for an upscale master bathroom and you may only receive $12,000 on your investment.
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2. A major Kitchen remodel may cost you upwards of $20,000 but you may only recoup $12,500 on this investment if you sell your home.

If you're looking to get your money back when you sell, it's a good idea to avoid designs that are very abstract or unusual. Buyers look for a place they can move right into and call their own. When you deviate too far from the values of the everyday modern home buyer, you minimize the pool of potential buyers.

Features that are really customized to your personal taste such as a home theater or wine cellars may not appeal to as wide an audience. Depending on the neighborhood, most buyers may see these fancy add-ons as unnecessary and be unwilling to pay a premium for them, especially in less upscale areas. That's not to say you should not customize your home as you like but when it comes time to sell you shouldn't expect to recoup the money you shelled out.

Homeowners should definitely look around at other houses in the neighborhood to see what is popular. If the average home in your neighborhood has 2.5 baths and your house has 1.5, adding another bathroom could net you a better return than the average when selling.

While updating and renovating your house has personal value to you and something many do to attract more buyers, you should definitely remember that you're not always going to get back what you spend.

Think and choose wisely before spending that tax refund.

When Good Credit Marries Bad Credit

Each person has their own separate credit report, so you don't have to worry about your spouse' bad credit affecting your record the minute you get married. As long as you apply for a loan on your own, the lender can't check your spouse's credit report, too.

But the crux of the problem in today's financial environment is when purchasing a home. Most people are looking to purchase big homes where two incomes are needed to qualify for the mortgage. There isn't anymore creative financing terms like no-income verifications and sub-prime mortgages that allowed flexible credit terms. When purchasing a home today the borrower needs excellent credit so the spouse with bad credit will need some repair.

If you are able to purchase a home with one income listed then you should think about adding the second spouse name to the deed after the purchase. Title to the house will not be impacted by the mortgage.

However, most people are not aware that in certain states, any mortgage loan that is taken on within a marriage is considered a joint obligation. These nine community property states include: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Community property states include any type of real estate, physical assets and all earnings generated by both spouses while married. Any type of asset that is acquired as a result of a gift or inheritance, or any asset that was owned prior to the marriage is not considered community property.

Cleaning up bad credit is not as difficult as you think; it can be time-consuming and definitely a challenge if you have many negatives on your report but it's possible to clean up your credit within a year or less.

The first misconception that everyone has is the less debt the better; it’s sort of a catch 22 when it comes to debt and credit. It seems the less debt that you are responsible for the lower your credit score will be. For example, if you have no credit cards, no car notes, no loans for years it can decrease your credit score. However, if you have one credit card and a car note that reports payments made on-time each month; this will increase your score to a favorable number.

It seems so ironic -- a person who has favorable savings and checking accounts with no negative credit trade lines but chooses not to have a credit card and multiple responsibilities that decrease their disposable income are frowned upon.

Another individual who has the car loan, two or three credit cards, a past judgment that is more than 5 years old but paid off and they still have a credit score of 700 with a modest savings account is well-regarded.

Are they more responsible because they handle more debt or is it more responsible to stay clear of debt and save more income?

Well, according to the credit bureau you need good debt to show you can balance responsibilities and companies will have more faith in lending you more money. Go figure that terminology?

No matter what your circumstances are, work together with your spouse to build a credit history that shows that you are responsible and creditworthy.

Are Short Sales a False Sense of Security?

With the rise of falling home prices, home owners who have run into unforeseen circumstances, like unemployment, medical issues or divorce and can no longer sell their homes for what they owe.

As a result, short sales have become obligatory as opposed to foreclosure. But what becomes of the deficiencies?

After the banks foreclose or you decide to short sell, it's very common now to have large deficiencies with houses not worth the balances owed so banks have began to go after the borrowers and pursue a deficiency judgment.

Are You on the Hook for a Deficiency Judgment?

Whether banks pursue a deficiency judgment against the homeowner depends on many factors, including what state the borrower lives in and whether there's a second mortgage or other liens on the home. But keep in mind, once the bank gets a judgment against you they can pursue you anywhere.

Generally, a mortgage has two parts: a pledge of collateral, represented by the home, and a promise to pay off the loan.
Lenders may release property liens in order to facilitate short sales without releasing borrowers from their obligations to pay under the promissory notes.

Lenders can pursue mortgage deficiencies in most states, however some states are non-recourse and don't allow deficiency judgments. But, even then, if the original loan was refinanced, some or all of it may still be subject to claims. In many cases, extinguishing the debt is often a matter of negotiating with the bank.

There are many lenders willing to release borrowers from further obligations but many borrowers are unaware that they have to ask for this type of release. So, if you are pursuing a short sale, be sure your attorney or realtor asks the bank to release you from any further obligation and get it in writing.

Will they or Won’t they file for a Judgment?

Many home owners feel they can finally breathe after a short sale or foreclosure; believing the worst is over. But judgments don't have to be obtained immediately; with so many unfortunate cases lenders are really overwhelmed so it’s taking them longer to reconcile accounts. They also may wait until they believe the debtors have recovered financially before they swoop in to recover whatever funds they can.

Once the court grants a judgment, the lender may have anywhere up to 10 or 20 years to collect, with interest.

Before agreeing and signing on the dotted line make sure all past and future liabilities are covered in your agreement.

Overcoming Buyers Remorse

The only way to overcome remorse is through Change;

Many home buyers suffer from buyer's remorse after they complete the closing on their brand new house. This is common not only because it represents a significant change in your life but many people buy with thoughts of grandeur only to succumb to reality after buying the home.

If you're suffering from home buyer's remorse, try to follow these tips to deal with the regret you feel.
Remember why you fell in love in the first place…

Oftentimes, home buyer's remorse is a result of new problems you find in a home, so try to remember why you thought it was such a good idea during your first tour. In most cases, your fears are just products of stress and worry, which are making small problems seem like big ones. Take a deep breath and search to overcome before it becomes a bigger headache.

Get to Re-Decorating:…

Perhaps you're experiencing home buyer's remorse because your house just doesn't feel like home yet. If you start decorating your house - new paint, new floors, new window treatments, new counter tops - it will start to look like a place in which you want to live. If you don't have the cash to replace things just yet, start putting your own pictures on the walls and knick-knacks on the shelves.

Stop the...Would have, Should have...Thinking…

A major pitfall that can cause home buyer's remorse is the continual scouring of the Internet for other, better houses. You can't return the one you just bought, so stop looking at listings on the Internet.

Sure, that other house might have a bigger master bedroom or prettier landscaping, but that isn't the one you chose to buy. You'll sink yourself farther into regret by looking at houses you just can't have.

Home buying is a major decision and every aspect of living in the home should be contemplated. Not just the financial aspects of your new home but think about the impact on your family - will you be happy living in that neighborhood, next to those neighbors, in that environment?

Keep in mind, change happens and you can overcome the feelings you have now. Whatever is bothering you now, you are able to change it for the better.

10 Things You Should Not Do When Buying A Home

Even when you have great credit, there are things you can do to make lenders think twice about approving your mortgage loan.

Most people focus on the initial credit check when applying for a mortgage loan, but that's only the pre-approval stage; as underwriters scrutinize your history they'll ask for updated financial, employment and credit information.

There are plenty of things you should not do until you go to closing. Here's just a few:

1.Don't change your job before applying for a home loan. Along with that, now is not the right time to become self-employed or quit your job. You want to show lenders stability, which means you’ll be less likely to default on the loan.

2.Don't change banks; you want your history to show stability.

3.Don't buy a car or truck or any other form of transportation that you have to finance. Buying one increases your debt-to-income ratio and that's something loan officers don't want to see

4.Don't buy furniture on credit before buying your house. Like financing a car, charging big-ticket items increases your debt-to-income ratio and now is not the time.

5.Don't be late on your credit card payments or charge excessively. You need a track record of responsibility and show that you can manage your money.

6.Don't make large deposits into your bank accounts. Lenders like the money that will be your down payment to be sitting in your account for at least two months, what they call, seasoning;”so that the funds don't just appear out of the air.

7.Don't co-sign a loan for anyone. Even if you're not the one making the payments on that loan, it increases your debt-to-income ratio.

8.Don't have inquiries made into your credit. Looking for new credit translates into higher risk for lenders. If your inquiries are related to your mortgage search, it usually doesn't affect your credit score because the assumption is you’re rate shopping. But opening credit accounts within a short period of time represents some risk and your credit could take a hit. It's probably not a huge factor in your calculating your ability to repay a loan but why take a chance at this juncture?

9.Don't lie on your loan application. Sounds simple, right? But don’t leave out any debts or liabilities you have or fudge your income.

10.Don't spend your money savings meant for closing costs. Part of the price of financing a loan is the closing costs and you'll likely have some responsibility for paying them. Make sure you have enough for your share of the closing obligations.

It may be tempting to go shopping for wants and a few needs, but wait it out until the underwriting department has approved your loan application and you get the keys to your new home.

Does Your 2011 New Years Resolutions Include Your Finances?

Many of us have the urge each year to seize control of our financial house but we really don't know where to start.

You know, those well intended New Year Resolutions that start off with a bang and fizzle out a few weeks later?

Well if you're finally fed up and ready to say,"the buck stops here"; then here are some critical steps to help you:

1. ATTACK AND PRIORTIZE YOUR SPENDING

Budgets are not your enemy! To rein in spending, follow these tips; for a month, write down every last penny you fork over, so you can figure out where the leak is. Then cut out those items you want, as opposed to truly need. Also, pay cash for almost everything, because using credit cards becomes so painless in the beginning but it can really hurt when you get the bill; yes, it's easy to rack up huge bills.

2. START SAVING EARLY

Consider this scenario; if you begin saving at age 25 and contribute $2,000 a year you'll end up with more than $315,000 in savings by age 65.

3. DIVERSIFY, DIVERSIFY, DIVERSIFY

Unless you can somehow read the future, you should probably hedge your bets and spread your wealth among numerous asset classes. That way, if one area tanks--the stock market, bonds, or real estate--you won't be wiped out, and the other sectors will mitigate your losses. Younger investors are content with a healthy percentage of higher-risk equities, because they can weather any temporary storms. Those closer to retirement tend to lean more toward safer bonds or cash.

4. STOP BUILDING DEBT

Admit it; you haven't done this very well; new cars, consistent weekend entertainment, clothing and more; sounds like splurging on all wants and very little needs. Cut out the things you really don't need.

5. PREPARE FOR EMERGENCIES AND BUILD UP SAVINGS

Building your emergency fund as well as long-term savings is a good plan to help you prepare for the future. You never know what might happen. And what would happen if you suffered a job loss? Millions of jobs have already been lost, and more are likely to be lost so, what is your back-up plan?

So, if you're still thinking about your upcoming New Year Resolutions, consider taking control and changing your financial future for the better.

The Value of Your Front Door

Many homeowners invest a great deal of their time and money remodeling the interior of their home, keeping it repaired and up to date. A little time and attention spent on the outside of your home is also a good investment and a source of pride for many owners. You don't necessarily have to spend a lot of money to make the outside of your home look appealing; sometimes all it takes is a little time and effort.

The next time you're near the street, look at your house as if you were a stranger. Start with the yard; is it tidy and mowed regularly? Is the landscaping pleasing to the eye, and are the trees and bushes trimmed neatly? If so, you're doing a good job making your home a pleasing addition to the neighborhood.

Consider personalizing your home by planting your favorite flowers in strategic locations. Consider flowers of different colors and heights, mixing greenery and blooming plants to make the biggest impact.

Quite possibly the one most important feature viewed from the outside of any house is the front door and porch. The front porch provides the first impression to those who visit. Keep the porch clean and personalize the area with a potted plant or a seasonal wreath. Doors can be easily updated and repaired without being replaced, and it's well worth your time. Storm and entry doors should be clean, and torn screens should be replaced. Hinges should be clean and free of squeaks, and the door should swing smoothly. The elements of the weather will make any door dull and lifeless; regular cleaning and painting will restore its beauty. Consider using an accent color to provide even more appeal. You can update a door by replacing older door knobs with newer, stylish hardware. In less than one day, you can change the appearance of your home by spending a little time right outside your front door.

Sensible Living While Trimming the Fat

Not long ago, the idea of living well generally meant living large or, at least, as large as you could afford. The nations economic upheaval has changed priorities for many home owners and buyers, who are still focused on living comfortably but perhaps more prudently and efficiently than before.

So how do you continue to live well but live on less?

Slash and Stretch where necessary:

1.Give Up the Bottle and Introduce a Faucet Filter. Kill the bottled water and instead purchase a filter that can be installed on your kitchen sink. Reports tell us that most bottled water is not as sanitized as you would think you'll enjoy the same benefits from filtered tap water.

2.Cut your trips to cleaners in half. Most sweaters can go in the delicate cycle with some Woolite and most silks can be hand-washed and hung to dry.

3.Stop ordering movies off your cable channel, i.e. pay-per-view. Did you know that it costs more to order a movie from your cable provider than it cost to rent at your local video chain these days? There's an automated video vendor called Red Box and they only charge $1 per movie, per night. You can order 4 or 5 movies from Red Box for the same price as one movie on pay-per-view.

4.Re-think this summer's vacation. Put that Caribbean vacation on hold and take a road trip. You'll probably save 40%-60% and still enjoy your family time together.

5.Stay Away from the ATM. We tend to run to the ATM several times per week that adds up to over $20. Fees go to your institution for using someone elses ATM machine as well as the third-party machine you're using. At a combined rate of approximately $5 to $6 per transaction you can see just how much you may save by making one trip and obtaining enough to last all week.

6.Perhaps it's time to look at your auto and property insurance. Many times parents forget to call up their auto insurance agent to see if any deductions are available for teen drivers. Many insurance vendors have programs for first time drivers who complete defensive driving programs or after 6 months to 1 year of hazard-free driving. It never hurts to ask for discounts.

When you think about how much you spend each week and each month you can see everyone has some sort of money leak that needs to be plugged. The more we educate and learn how to rely on ourselves to overcome the more money we hold on to and the less debt we incur.

Trust Your Agent

The single most important factor to consider when selling your home is the price tag. I'm sure you have a selling price in mind but is the price tied to an emotional value or have you made an educated decision? Perhaps you should leave the pricing to the professionals.

Why should you trust your real estate agent when selling a home?

Well, a real estate agent has access to information not available publicly that can help in pricing the home or determining if the asking price is fair. Agents have access to proprietary information, only shared by real estate agents.

This proprietary information includes the actual sales price of each home sold, not just the listing price. Additionally, the MLS information will include the number of days a home was on the market prior to closing. Both pieces of information are valuable in knowing how to market your home or evaluate the price.

Comparable pricing is still only one piece of the puzzle; there are other criterions a real estate agent will consider before settling on a fair market price.

Real estate agents also pay attention to neighborhood dividing lines and physical barriers such as major streets and freeways. You could live across the street from identical homes and the price could still vary by $50,000.

Realtors will compare similar square footage, within 10% up or down from your property and similar ages. One neighborhood might consist of homes built in the 1970s next door to another area of construction from the 1990s; values between the two will absolutely differ.

Pricing is also adjusted for lot size variances, configuration and amenities and upgrades.

These are all things a novice home seller would never consider. A real estate agent is trained to use part art and part science before settling on a fair market value of your homes worth.
Most of you will want a pie-in-the-sky windfall that includes every bit of money you put into your home. However, keep in mind, your feelings are more emotional than objective.

Pinpointing the fair market value will make a significant impact on the sale of your home. It could mean the difference upon a quick sale or hanging on for months waiting for a buyer.

In the end, trusting your real estate agent is crucial to getting your home sold faster and efficiently.

Can't Sell Yet?...Rent It Out

For many people who cannot or don't want to sell their home in this depressed market, renting it out can be a practical option.

Many homeowners fail to get a bid that they're willing to accept so what do you do when you just can't afford the mortgage? If you're one of the many folks who are in this situation, you look into renting your home -- it can lessen the financial burden, and you might be able to turn a small profit.

Pros and cons of renting out your home include:

Pros
• You can keep your property to sell later at a better price
• The rental income covers mortgage, taxes, insurance, etc
• The tax breaks offset rent or other income

Cons
• You are the landlord
• Tenants may damage your property
• Could be taxed on gains if you later sell

But consider the tax breaks you can get from renting out your home. You can deduct pretty much any out-of-pocket expenses related to owning and managing your property when you rent it.

This includes deducting your mortgage interest payments, insurance, property taxes, maintenance, repairs, cleaning services and even the cost of travel and local transportation expenses incurred in the maintenance and management of the property and the collection of rent.

Then, there is the other deduction, called depreciation. This is the portion of the property value you can take as a deduction each year.

And the really good news is the amount by which rental expenses exceed rental income is a tax deduction that can be used to offset up to $25,000 of other income, including salary. This juicy tax break is available as long as your adjusted gross income is $100,000 per year or less (this applies to single filers as well as married individuals). For those with income above $100,000 this tax break begins to be phased out and is phased out completely above $150,000.

Keep in mind, renting a home will come with headaches and problems. You'll still need to maintain the property or pay someone else to do it for you. You'll also need to check with your home owners insurance company to make sure you are still covered for damages while renting your home. If not, then you'll need to revise or change your coverage.

Lastly, look to the tax benefits to sweeten your financial results and when the rental payments start to fall short of your out-of-pocket costs, It's time to sell.

Voting for HOA Board Members

Why do so many homeowners have issues with their home owner association and board members? Probably because you're voting in the wrong people who don't have a clue what your community needs.

Homeowner associations are designed to be representative democracies governed by a board of directors elected by the members. Electing directors to the board that can thoughtfully govern is extremely important. To accomplish this, elections must be carefully planned with the candidates thoroughly researched, not hatched at the last minute.

Here are important components of a successful election process:

Find Worthy Candidates. When seeking nominations, a job description should be prepared so potential candidates know what is expected of them. Some refuse to run because they fear the unknown or an open-ended commitment. The director job and term of office can easily be summarized in a paragraph as can the descriptions of officer jobs (president, treasurer and secretary). Take the time to make sure all potential candidates understand and commit to fulfilling the job description by informing them of expectations in advance.

Candidates are identified a number of ways:

1. By a Nominating Committee. The board can appoint a Nominating Committee which can identify, interview and recommend certain individuals for election. While the Nominating Committee's recommendations are worth considering, any member in good standing is still entitled to run for office even if not recommended by the Committee.

2. Nominated by Self or Others. Any member may nominate themselves or be nominated by another member. It's best to do this as soon as the nomination process begins, far in advance of the annual meeting, so the name and credentials can be known to all members. Since it is common for some members not to attend the meeting and to provide a proxy to someone that does, if a candidate is not known in advance, those not attending the meeting will not have the ability to support that candidate.

3. Nominated at the Annual Meeting. Nominations are usually accepted from the floor at the annual meeting. Unfortunately, this option fails to inform members who have not attended the meeting; it is often difficult to get elected when nominated from the floor unless there are not enough candidates to fill vacancies.

4. Write-in Candidate. Writing someone's name on a ballot does not ensure that person is actually qualified for the job or interested in running unless the person was nominated from the floor.

Candidate Qualifications. Candidates should present their qualifications and platforms to the members in writing. This can be done door to door, by email, by letter, in the HOA newsletter, by the HOA website and at the annual meeting where the candidates can also answer questions posed by owners. Since some members may not be able to attend the meeting, circulating candidate qualifications before the meeting is very important.

It is definitely in the community's best interest to identify candidates who have experience that will benefit the HOA such as:

-Having an organized president is essential. Seek those that are comfortable in that role. The president should also have experience in dealing with different personalities.

-Having a treasurer who regularly works with financial matters like a bookkeeper or CPA.

-Having a secretary who understands or can learn the art of minute taking.

-Having directors that are available and committed to attend all board meetings. This requirement cannot be understated. If board meetings fail to achieve a quorum or directors, official business cannot be done.

Good board members act to protect the interests of all members. Handle the candidate selection process carefully by seeking out the best candidates available. When it comes to board elections, rather than expect a train wreck, elect the right person for the job!

Fixed vs. Variable Interest Rates

The most confusing of all the steps in buying a home is probably deciding whether to choose a fixed or variable interest rate mortgage. Some lenders attract borrowers into variable interest rate plans with special offers that last for just 2-5 years. So, how do you decide between these two?

Variable Rate

Lenders and banks base their variable rates on indexes; for example, prime rate, treasury bills and Federal Reserve discount rate. To this figure a percentage or two is either added (which is most common) or deducted as a margin or points are charged. The net of these is charged as interest to you. This prime rate varies on a daily basis up or down - taking your interest rate with it.

Fixed Rate

Some buyers prefer the stability and predictability of a fixed rate to a variable interest rate, even if it's just a percentage or two more. The Truth in Lending Act requires that the rise in fixed rates be communicated to borrowers at least 15 days in advance.

However, once the special offer ends on the variable interest rate mortgage, borrowers usually forget to (or can't) refinance or move their mortgages and end up paying high interest rates. Variable rate mortgages are advantageous only when interest rates are low; however,these rates could overtake the fixed rate and you could end up paying even more that you originally planned.

Townhouse or Single Family Home?

Buying a home for the first time is riddled with so many issues: planning, searching and talking to real estate agents, banks and lenders. There is another aspect of the utmost importance that you may want to consider - deciding between purchasing a townhouse or a single family home.

Townhouse:

Townhouses today share common dividing walls and are built very stylishly. Condominiums are sometimes called townhouses. In an urban setting, townhouses are very much in demand and now identify with wealth. In rural areas, they are very affordable and so they are the first choice of low-income families. Townhouses provide an opportunity to live in a community with peace and security. Common yard and other amenities are shared, as are maintenance expenses.

Single Family Home:

A single family home is a separate dwelling that is neither attached to nor share any common walls with another home. Built over a large area for a garden and backyard, they are a bit more expensive. A rarity nowadays in city centers, single family homes are commonplace in suburbs. They offer freedom, are stylish and you can decorate them to your liking.

Decision making:

You should base your decision primarily on financial factors. If your credit (FICO) score is not excellent, and you don’t have much money for a down payment, you can opt for a townhouse in a suburban setting. This will help you save on monthly payments. Take care to check for any restrictions and regulations of townhouse associations. Some of them have lots of restrictions such as not allowing pets and small children to live in the townhouse community.

There are maintenance issues you also need to look into. Though the expenses are shared in a townhouse community, common walls and water supplies create maintenance problems at times. Often, what maintenance issue affects one townhouse will also create the same problem in the adjacent one.

Townhouses and condos are selling very well despite their shortcomings. Buyers preferred townhouses over single family home in the last couple of years across the country. Compromising on shortcomings is a small price to pay considering the savings you could make on your mortgage payments.

The Secret Weapon to Competing in a Renter’s Market

There’s an abundance of rentals and competition on every block so how do you make your home irresistible and market-ready? Comps and Extras speak volumes to those trying to get more for their money.

Apartment buildings do it; Commercial landlords are doing it; so why not follow suit and compete on the same level?

The secret weapon to renting out your home among the masses is to show it like it’s the last of its kind. Show prospective tenants all they can get if they were to rent out your home.

People are looking for value; they want to live like royalty while remaining within their budget but how many of us actually can find a place that luxurious with all the bells and whistles? As a landlord you must think outside the box to entice renters.

1.Less “stuff” makes a home seem roomier. Most homeowners believe a home that looks lived in will rent out quicker but that’s just the opposite. Homes that are empty allow prospective clients to visualize where their furniture and mementos can be placed. Empty fosters imagination. All you need is a good paint job and a clean bright home that welcomes you in.

2.Offer more than the landlord down the street; many landlords compare and then decide to lower their price to meet demand and while that may be smart it should be the last option. How about offering free cable with the monthly rent? You can negotiate a package deal with your cable company and offer the most basic package perhaps with 1 premium channel; that may run you $30 per month that can be integrated into the rent. How about free internet? Again, you can get a package deal from most vendors.

3.If you live near a community center with a fitness club think about throwing in a membership and it’s not as expensive as you think. Most community centers offer a monthly or 3 month package deal that may run you $50 for 3 months. You could offer prospective tenants a 6 month deal.

4.If your rental home is near a golf course a great enticement is a membership towards weekend golfing.

5.Think about offering maid service; call around to compare services and prices and perhaps offer a once-a-month service that’s included in the rent.

6.Offer military veterans a special – a lower monthly rent or smaller security deposit.

7.Offer uniformed police a deduction in rent for a longer lease.

You can always think of other services to offer that compliment your rental property. Finding renters is not difficult in this market but you must sell your property and let clients see all the reasons they should choose you over the rental next door.

The Allure of Walkable Neighborhoods

In suburbia there are rows and rows of little white identical houses and neat cul-de-sacs surrounded by grass and space in complete isolation. For many this sounds like a dream come true and the complete opposite from the concrete cityscapes but for other residents this type of planned development becomes a liability for social, economic and sustainable living.

More and more urban planners are dedicating new approaches to functionality, sustainability and family friendly Walkable Neighborhoods. The inviting character of any accommodating neighborhood impacts every resident in numerous ways.

Considering today’s common residential concerns choosing a walkable neighborhood can be advantageous to your waistline and your wallet.

Just think – a neighborhood with multiple destinations including clusters of grocery stores, banks, family parks, schools, daycare centers, pedestrian and pet trails, bus stops and all pertinent avenues to foster mixed-used development and less costs. How about less reasons to start up the car, go get gas and begin your lengthy ride to your next destination. These communities give consumers a wide range of choices including a more robust and diverse daily life.

Many reports that have been developed on the science and art of walkable neighborhoods echo the same sentiment; healthier lifestyles coincide with mixed-use communities. More parents will walk their children to school, spend less, economize and use public transportation more.

The benefit of nearby destinations encourages residents out of the home to interact with neighbors thus there’s a decrease of crime, a heightened awareness of whom is living in your neighborhood and a direct correlation to the quality of longer life for seniors.

Walkable neighborhoods are nothing new. Our parents sent us to the neighborhood store to pick up some sugar, eggs and milk as we passed by our neighbors chatting away on their front porch. Then along came the challenges of traffic, crime, more personal property full of grass and less sidewalks and there went the decline of our walkable communities. But these characteristics are becoming the newest trend once again.

The attractiveness of convenience is appealing to all age and socio-economic groups.

• Streetscaping for schools provide safer walkways with maximum sight distances.
• Roadways engineered with newer designs provide better designations for speed limits, intersections and raised crossings.
• Calmer vehicular traffic with safe routes for children, seniors, bicycling and walking.

• Eliminate car crashes and the potential of vehicle conflicts by introducing longer driveways, wider sidewalks and drop-off points.

• The introduction of more ramps, alternative curbs and heights and lower signals at intersections to accommodate disabled adults.

Every city in every state has a walkable neighborhood and as more developers embrace the thought of providing much more than just “another white picket fence” home buyers are embracing the thought of active living in functional communities.

Getting Past The Headlines

Surprisingly enough, in a time when the market seems unfavorable to many, it’s never been a better time for people to buy a home.

1. Interest rates are at all time lows. Currently for a 30 year fixed rate mortgage the average rate is approximately 4.375%. Rates do go up and down on a daily basis so don't be discouraged because one day they may be up and the next day they could be down. If you were to purchase a $150,000 home at a rate of 4.375%, 30 year mortgage and 5% down your monthly principal & interest payment would only be $711.48 (remember you need to factor in property taxes & insurance & PMI to get a true monthly payment). That is a great payment amount and many rental properties cost more than that each month.

2. You are able to save on taxes. The way the current tax structure is designed you are able to deduct your mortgage interest and property taxes. You can't do that while renting.

3. You gain an investment and equity. Each month when a mortgage payment is made part of that payment is for the principal balance. This means you own the property and can do almost anything to it instead of having to deal with a landlord. Also, that principal balance you are paying each month is equity. Over the long term home prices do appreciate (more than the stock market) which creates additional equity in your home.

4. New homes are energy efficient due to all of the code changes across the country homes built today are much more energy efficient and more up to date technologically (energy star appliances, higher efficiency furnaces and water heaters, high insulation values and more) than even 5 years ago. This means lower utility bills and costs for you.

5. New homes have more modern features today and offer a wide variety of floor plans and choices. Some of which include open floor plans, universal designs, home offices, egress windows making it easier to finish basements, flex space, low maintenance, innovative materials and construction techniques.

6. Builders of homes and housing complexes are offering bigger discounts on newer properties simply because people are buying less these days than before. These are the opportunities that you need to look out for because it may very well allow you to be a homeowner sooner

Don't be afraid to take advantage of the buyer's market that currently exists. After all, the current state of our economy and housing market benefits buyers and negotiating properly can mean a bigger difference of thousands of dollars in savings on a home.

Selling During The Holidays

Appeal! Giving your property that extra appeal will undoubtedly entice the masses. Holidays make buyers more emotional than usual, so use it to your advantage.

Buyers are attracted by the appearance of your property and when they inspect it, they are influenced by its atmosphere. The right appearance outside, followed by the right mood inside, gives you the best chance to get the highest price, fast.
You rarely need to spend thousands of dollars in renovations or repairs to make your property attractive. All you have to do is pay attention to obvious points, all of which can make a big difference to your price.

Remember the emotional aspect of buying a home? You had to picture yourself in the kitchen, the family room and cuddling up in the bedroom. Well, you have to create that atmosphere for potential buyers.

Buying a home is emotional. The feeling of a home drives the price tag. Their feelings will be the main reason they accept or reject your property.

The word ‘love’ is common with home-buying – and even with land, when buyers report loving the location. Buyers often say, “I fell in love with it as soon as I saw it and I pictured myself in the home, that’s why we bought it”. So make sure you present your property at its best. Remove or fix anything that might ‘turn-off’ the buyers.

First Impressions:

We are attracted to homes the same way we are attracted to people.

The first thing we notice is the outside. If the property is clean and neat and welcoming, we are interested. If it is scruffy or dirty, we are turned off.

To make your home look its best, attention to details is crucial. When you live in a property, you can overlook its little faults. It is now time to have a fresh look.

Try to judge your property by the standards of the buyers, not by your standards – try to see it through strangers’ eyes. The challenge is to make your property as attractive as possible without spending too much.

The Half-Way Point:

When buyers enter your property they should immediately feel at home. The inside atmosphere should be warm and appealing. A home should look and feel happily lived-in. Make the atmosphere natural and relaxed, but not gimmicky.

Remember, home truly is ‘where the heart is’ and anything that increases the emotional feeling of comfort is something we all love. Genuine appeal is what wins the buyers.

Important Factors Sellers Have to Consider

There are some important factors to keep in mind when putting your house on the market. A thorough understanding of these issues is necessary so that you can act as an informed seller.

1. Understand the Market

It is fundamental that you are aware of the price ranges in the immediate vicinity and surrounding areas and neighborhoods. Conduct your research on the town and state that you are selling in, especially in your neighborhood. Determine what sets it apart from other communities. As with any commodity, the quality of the market research is the primary consideration of success.

Ask your banker, neighbor or friends regarding the current housing market for valuable tips and information regarding your particular neighborhood. Check up on internet property listings located near your neighborhood in order to get a general pulse of the market specific to your area.

2. Timing Counts!

Proper timing, coupled with knowledge of current conditions, is the most critical factor to consider when dealing in real estate market. The quicker you need to sell your house, the less flexible you can afford to be, because you do not have the luxury of time to wait for a prospective buyer who would agree to your asking price. On the other hand, if you have all the time in the world, you can simply sit back, relax and wait for perfect buyer to come along.

3. Cleanliness is Important

All things being equal, almost all houses have the same basic amenities. In the real estate market however, the appearance of a well kept home invariably adds value and enables a house to be sold quickly and at a considerably higher profit margin.

Working With A Buyer's Agent

It is not entirely untrue that real estate agents invariably represent sellers. Agents owe their loyalty to the sellers they represent when they work with you as a buyer. It wasn't too long ago that buyers worked with these agents only. Then why was there a need for a buyer's agent?

If you are buying a home, you need to be represented by an exclusive buyer's agent to safeguard against certain things, such as a seller's agent who is loyal only to the seller. In contrast, a buyer's agent will be loyal to you, protecting only your interests during the real estate transaction.

Duties of A Buyer's Agent:

Your buyer's agent will make every effort to locate a home that suits your requirements at the lowest possible price. Since he is loyal to you, your agent will disclose all that he/she knows about the property that could benefit you, or prevent you from taking a loss during the transaction. Information such as the reason for selling the property, concessions the seller would make, and all conversations your agent has had with the seller will be disclosed to you. Information like this, however small it may seem, could potentially promote your interests as a buyer.

Some other duties of a Buyer's Agent:

1. Make a sincere and reasonable effort to find a home suitable for you
2. Follow all lawful instructions you may give
3. Should develop a CMA (Comparative Market Analysis) for you
4. Advise you on the property value
5. Handle all monies and keep records of all transactions

Hiring a Buyer's Agent To Work For You:

An agreement hiring a buyer's agent to represent you becomes necessary from the time you decide to buy a home. When you sign a contract with a buyer's agent, make sure that it clearly states both the agent's and your duties and obligations along with any fees charged to you, and how they will be paid. Typically, the buyer's agent is paid by the seller in the form of a commission.

Your Selling Price Must Be Realistic

When you are thinking about selling your house, don't set an unrealistic price. In my experience as a real estate agent, clients who were asking a very high price ended up with their house staying in the market for a very long time. This is true also for people who are selling their houses without a real estate agent, such as For Sale By Owner.

There are times when a real estate agent advises you to lower the price. The reason behind it is that they have knowledge of the market trends, access to accurate sales data, and know the realistic price ranges of the area at that point in time. Therefore, you would be well advised to rely on your agent's word and trust her recommendation, even if it is not exactly what you would have liked to hear.

If you are still unsure, you can also confirm the suggested selling price by checking the recently sold houses in your community (called "comparable sales," or "comps" for short). The bottom line is that the selling price of your house must be a realistic one if it is to have any chance of selling in this market.

Tax Planning

As soon as you have sold your property, you will have to determine if you have to pay taxes on your sales income!

The government has set certain criteria and requirements that you have to meet so that you can leave out a sizeable amount of your profit from taxes if the home you sold is your primary residence. If you meet the eligibility requirements, chances are may not have to pay taxes on your sales proceeds.

The Taxpayers Relief Act of 1997 specifically states that you do not have to pay taxes up to $250,000 per person (or $500,000 for a married couple filing jointly) on the sale of a primary residence. For example, let us say that the capital gain from the sale of your house is $300,000. If you are single (or divorced), the first $250,000 of the amount is exempt from tax; however, you have to pay applicable taxes on the remaining $50,000.

On the other hand, a married couple who file their income tax jointly would be exempt from paying taxes since their total net is lower than the $500,000 limit for married couples. For this rule to be applicable to you, you must have lived in your primary residence (the house that you sold) for a period of at least two years. There is no limit to the number of times you may claim this exclusion when selling your home and the law does not require you to invest this money into buying another home. You can spend the money as you see fit!

This tax exclusion is conditional on whether or not the house you are selling qualifies as your principal residence. To qualify as your principal residence it must be the house where you spend the majority of your time.

Get a Home Inspection Before You Buy

Your home investment is a big deal in your life - probably the biggest ever - and it is a decision that you must undertake wisely. Just remember that your real estate agent is on your side and can be a great resource during your transaction.

You will receive lots of advice (which you can use or not, of course), and you can ask questions about anything that you come up with. Most real estate agents advise their clients to pay for a home inspection before they get close to finalizing a deal or as a condition of an offer on the property they are interested in.

After a thorough and professional examination, the home inspector is going to give you a report on the condition of the house. This report is extremely important, since there might be conditions which were not obvious, or which you might have simply overlooked. Believe it or not, even buyers of brand new homes should invest in a home inspection. This can help you get issues resolved even before you have moved into the property.

After home inspection, you should know the issues related to that property. Knowing those issues beforehand can become a tool to help form your offer and negotiate to your advantage with the sellers.

DO YOU OWN THE FORECLOSURE YOU BOUGHT!

Thirty one percent of all homes purchased in the first quarter of 2010 were foreclosures, over the twenty nine percent for all of 2009. Buyers that have purchased a property in the past few years may wonder if they really own the foreclosure they purchased. After all, if the home was inadequately handled, the previous owners may just have a lawsuit ready to file against the lender and the attorneys that dealt with the foreclosed property. The advice from the legal side admits to such purchasers loosing there homes or could be liable for financial compensation to the buyer foreclosed property . Attorney Jonas Jacobson comments, "The biggest protection is the 'Bona fide purchaser' law that protects buyers from getting in trouble if they could not have known there was a problem with their purchase" Due to foreclosure paperwork mistakes, there is little danger of homeowners losing homes" says Steven Horne, an attorney and president. He also states there is a small chance that a homeowner can and may be involved in a lawsuit concerning there foreclosure.



The fear for buyers is minimal, yet there is an importance when it comes to protecting yourself with the purchase of a foreclosure. According to attorney Joseph Gentile, a wrongful foreclosure is the perfect example of why home buyers should buy owner's title insurance, which directly protects the owners in a title dispute. Owner's title insurance protects from any defect in the title. Gentile explains, " If a judge determines the foreclosure was not valid, the title company would have to work out the problem, not the homeowner" Homeowners should always know there title insurance status. Gentile recommends purchasers to check for the title insurance policy, especially if you have bought your foreclosure in the last few years. You still have the option of purchasing owners title insurance now, even on the property you previously purchased. Jacobson recommends homeowners review their settlement documents and contact their settlement attorney for reassurance.



Gentile also comments on the future sale of the home, " It is possible when the home is sold, a new title insurance policy would be more difficult to obtain." With the growing amount of foreclosures, the title companies will likely find a way to accommodate insurance in the future.

Competing With Short Sales and Bank Owned Properties

It is no secret that the home selling market is flooded with short sales and bank owned homes, so the question is how to compete with these homes when it comes time to sell your home.

Yes, it is a buyer’s market as some might say but the need or desire to sell your home may still be inevitable.

If you are in this situation then you need to understand your area and the competition. Do you need to price your home the same as a short sale home or a bank owned home? The answer is not likely.

First of all most bank owned homes are in need of much TLC and not necessarily a good comparison to yours. Short sales take so long and are not only in disrepair but the wait as well as possible rejection by the bank often times makes many buyers not willing to deal with these homes. While waiting on the bank’s response just imagine how many homes the buyer will miss out on.

This brings us to homes like yours that is a mainstream sale! Mainstream being an operative word here, basically, not a short sale or bank owned home.

Most home buyers today are looking for mainstream homes for many reasons. The obvious wait time and frustration in short sales has driven home buyers away from dealing with this type of sale.

The competition with cash buyers and investors on well maintained bank owned homes finds most mainstream buyers in an unlikely position to obtain the home.

Buyers have realized that a normal sale in which they can make a reasonable offer, get a response in a timely manner, have an inspection and actually ask for repairs to be done and expect to get the home in good condition is well worth it.

Competing with short sale homes and bank owned homes aren’t that difficult. Real estate agents are on top of the market and will know your competition and how well things are selling for in your area. Be reasonable when it comes to pricing because you still need to appraise when it comes down to it. Obviously, making your home look nicer than most of the competition should be the easy part; let your pride in your home show. Take the advice from your seasoned agent on how to stage your home.
Do not get wrapped up in the fact that you think your home is worth more than what it is likely to sell in this market or you will waste a lot of time with little to no showings. You need traffic, traffic brings potential buyers.

Make sure your home has several shots or pictures of areas in and around your property that makes a buyer want to see more! Neutral tones and less furniture and belongings make your home feel more open and spacious.

You can price your home higher than your competition of short sales and bank owned - just not so far out of reach that you are not going to get potential buyers interested in your home. Homes of all price ranges are selling in this market and yours can too.

Believe it or not, if you and your agent have done a good job, you are likely to sell your home very quickly in a market like this!

The Importance Of Property Management

Many landlords choose to manage investment properties on their own but sometimes landlords need more help, and that's when a property management company might make sense.

Management companies’ deal directly with prospective and current tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues, responding to the various tenant complaints, and even pursuing evictions. A property management company helps you avoid the hassles of being the landlord and focus on enjoying the benefits.

Why you should hire a management company:

A management company will mainly be handling the maintenance of your investment property. All properties require maintenance however when you have a paying tenant you’re required to resolve maintenance issues promptly. And, regular property maintenance can keep the value of your investment up and in many aspects, keep the property safer; this will actually save you cash in the long run as it will extend the life of your investment.

Depending on the age of a property you’ll probably find more issues; this is why it is crucial your property is thoroughly checked before tenants move in, thus any problems that are found will be sorted out in hopes to cut back the amount of issues and complaints that will occur once the property has been rented out.

There are various kinds of property maintenance that will need to be reviewed and this maintenance will vary from being major issues like roof repairs to minor jobs such as interior painting, carpentry work and landscaping projects.

When should you hire a management company:

You don't live near your rental property. If your rental property is located far from where you live, hiring a property management company can be invaluable in dealing with the many issues that you will not be able to handle from afar.

You're not interested in hands-on management. Many landlords look forward to the challenge of finding good tenants and the rewards of maintaining a safe and attractive property on their own. But if you view rental property ownership strictly as an investment and want little or nothing to do with the day-to-day management of your properties, consider hiring help to manage your property.

Your time is limited. Even if you enjoy hands-on management, you may not have much time to devote to your business, especially if land-lording isn't your day job.

Hiring a property management company is an attractive option if you can afford the fees, and they range from high to low. Some companies will charge a percentage of what you charge the tenant [perhaps 3% to 5%] while other property management companies will charge you a flat rate fee [$100 to $200 per month].

If you do decide to hire a property management firm, use caution in selecting one and ask questions to compare the services offered.

Why Your Lender May Choose Foreclosure Over Mortgage Assistance

The Treasury Department began a loan modification program in March 2009 to encourage lenders to modify troubled loans to prevent foreclosures. But from the beginning, the process proved slow, frustrating and for many non-existent. All the while, foreclosures continue unabated. But why the hesitation by lenders to help homeowners remain in the home?

Many mortgages are handled by loan service agents. They collect the payments and handle all the on-going business with your mortgage. But they also are the one constant villain in the foreclosure debacle.

The loan servicers lose paperwork, foreclose on homes they have no right to foreclose on, accept borrowers into modification programs while trying to foreclose on them at the same time, they deny borrowers a modification even when they shouldn’t, they’re impossible to get a hold of, and their communication with homeowners is appalling. And you know what, it’s depressing but loan servicers win in the end.

A loan servicers’ primary compensation is a percentage of the outstanding principal balance on a mortgage so the higher the outstanding principal the more their compensation package will be. This definitely presents a conflict of interest.

And while investors say they are all for helping out the homeowner, investors really look at the bottom line – are timely payments being made? So when the money is halted investors want to know that something is being done to recoup losses.

Under the government’s foreclosure program a service loan agent that modifies a loan for a homeowner can collect $1,000 from the government, followed by $1,000 a year for each of the next three years. While those sound like a meaningful incentive to help homeowners the government’s incentive cannot compare to what servicers collect by allowing properties to go into foreclosure.

So where should a homeowner start if looking for a modification?

The first thing that a homeowner should do is have an experienced mortgage attorney examine your loan documents for any potential violations of the lender. Lenders are not legally obligated to modify loans so it really is up to the lender to accept your request.

The more ammo you have to help them shift towards helping you the better.

Thinking Of Multi-Family Dwellings As Investments

Looking to branch out a little and invest in steady streams of income?

Think about multi-family dwellings.

What are tenants willing to pay to occupy a unit?

This is the cornerstone of your investment:

The most obvious advantage of buying any income property is real estate investors can grow wealthy in the long run. Holding on to investment property and simply allowing other people's money to payoff the debt, even if there is no immediate cash flow, is what drives people into real estate investing. Moreover, because multifamily properties serve a basic need in that they provide shelter to those who are not ready to purchase a home just yet, the downside risk to multi-family investing is very limited.

OK, there may be a scant downside to owning rental property; it mostly concerns the management problems associated in dealing with tenants. Multi-family properties can be management intensive, and often the reason why investors who purchase rental property hire the services of a professional property management company to deal with the day-to-day issues of running the property. So investors can choose to minimize this obvious disadvantage.

How can an everyday homeowner start investing in apartments?The first crucial piece to this puzzle is using other people's money. The success or failure of the investment depends on the income the property generates to meet your debt and other obligations required to keep the property. The second piece of the puzzle is to understand that when buying any investment property you must establish a sound financing package.

Given that lenders evaluate multifamily real estate based on income stream and generally will structure a loan based on the property's financial strength, keep in mind the significant role the principal of using other people's money plays in financing the investment.

When applying for a loan on a multifamily property, present lenders with a clear and concise cash flow report; you'll obtain a favorable financing package.

What are tenants willing to pay to occupy a unit? This is the cornerstone of your investment. It's crucial to understand local rental market trends for vacancies and rental rates when buying a multifamily property. Rental market trends are easy to recognize, just watch the newspaper or drive around communities noting all rental properties that have vacancies.

The bottom line here is straightforward -- Multifamily property provides investors the opportunity to build wealth and what a perfect time to start investing. Interest rates are low, there's a steady stream of available tenants which can only contribute to a profit.

Are Your Important Documents Organized in a Practical Location?

If you were faced with a sudden emergency could you gather all your important paperwork in less than 5 minutes?

Think about this, can you place your hands on your property titles, life and homeowner’s insurance policy or birth certificate? How about tax forms? There’s certainly nothing fun about organizing all your important papers but it’s definitely well worth all the effort.

Most of us have no idea of the legal shelf life of documents. And even when we do our very best of keeping abreast of important documents, they somehow become scattered around the house. The deed to the house and tax paperwork in the home office while the life insurance, social security cards and birth certificates in the upstairs bedroom.

Important documents should be kept in one significant place that can be obtained swiftly. Say you smelled smoke and had to run out of your home; you wouldn’t run around the house looking for paperwork to take with you. Purchasing a lock box can be one of the most important purchases you make – fire resistant and large enough to keep important documents.

Take a look at the length of time your important documents should be saved:

Tax Documents
Keep tax returns, as well as supporting documents like W-2 forms, receipts, and real estate closing statements for seven years. The IRS may audit you within three years if it suspects good-faith errors; six years if it believes you underreported your income by at least 25%; and unlimited time if you did not file a return or filed a fraudulent one.

Investment Records
Keep as long as you own the securities, plus another seven years. You'll need them to prove capital gains and losses.

Bank Statements
One month. You just need these long enough to check the accuracy of the transactions [Williams]. Unless the statement is your only record for a tax-related transaction, there's no need to keep them longer. Plus, your bank will have them available online.

Retirement Plan Statements
Most, one year, for tax purposes. Keep Roth IRA statements until you retire, to prove you already paid tax on your contributions.

Credit Card Statements
Shred immediately after checking the accuracy of the transactions. These documents are a prime source for identity theft. Unless the statement is your only record for a tax-related transaction, there's no need to keep them longer. Plus, your issuer will have them available online.

Paychecks
One year, until you receive your W-2.

Bills
One year, for tax purposes.

W-2 Forms
Until you begin claiming Social Security. They're the best estimate of your earnings and entitlements.

Most of your documents you’ll never lay hands on again however, should you need to lay hands on them, make sure they are safely stored in a practical location.

Combining Tax Credits with Style and Comfort

This is the perfect time to utilize the year-end energy tax credits and update your home. If you install replacement window or storm door windows and doors in your principal home by December 31, you can claim a federal tax credit of 30% of the cost – excluding installation. You can claim up to $1,000 for the years 2009 through 2010 combined.

Should you replace?

It all comes down to the age of your home and how well your windows have resisted moisture.

• If the original framing is sound and reasonably square, you can install a replacement window into the original opening, replacing the side jams and trim.

• If the original frame is rotted or significantly out of square a new window must be installed, which can cost 50% to 100% more than a replacement window.

Prospective buyers should calculate the payback of installing new windows. It’s not just about adding new style but insulating a leaky home. When replacing windows your energy bill should show an immediate savings.

Choosing the right windows

Are you familiar with the lingo? Double-hung windows may be opened from top and bottom. Casements open with a crank and make the window easy to operate. This is especially handy in those hard to reach places.

Double-pane windows are two pieces of glass that may have inert gas in between to better insulate the home. Tilt-out windows allow you to clean the exterior glass from the inside.

Comparing Window Energy Efficiency

You need to know two critical factors when choosing your windows based on energy efficiency;

• You choose based on the Ufactor and the Solar Heat Gain Coefficient; the lower the Ufactor number the better the window insulates and the greater the energy savings. The range is 0.25 to 1.25, however, to qualify for the federal energy tax credit the Ufactor rating must be less than or equal to 0.30

• The Solar Heat Gain Coefficient (SHGC) is rated based on how well the window blocks heat.

Windows are no longer that element to enhance the facade of your home; it’s the critical element that shields the sun and cold and insulates your comfort.

How the Front Yard Can Make or Break a Sale

The realtor called and they have someone who is really interested in your home. They want to see it this afternoon. So you get the house ready, and you clean up the bathroom and kitchen, and you see a few people pull up into your driveway.

These must be the people who are interested in the home. But wait, where are they going? Are these just strangers making a U-turn in my driveway, or did my front yard just scare them off? No, they were your potential buyers.

When you're selling a home, it's true that staging the inside of your home for interested buyers is important. However, first impressions are even more important. That's why you should pay close attention to sprucing up your front yard. You won't have a chance to make another first impression.

Any real estate agent will tell you when you sell a home, curb appeal and landscaping is key; it can attract the eye of a buyer, or send them back to the internet to continue their search. With so many homes available, there are plenty of homes with impressive yards.

Keep your front yard, and your porch neat, clean and tidy. Here are some easy ways to get your front yard up to speed:

1) Edge your flower beds, and your grass. By fixing many little things, you can improve the overall look of your home.
2) Mow your lawn and remove all the leaves.
3) Prune your overgrown shrubs and trees.
4) Use a weed killer like Roundup to kill the weeds growing through the cracks in your driveway.
6) Mulch is inexpensive. If you need to add mulch to your gardens or around trees, do it. It always looks messy when there are an enormous amount of weeds popping up around mulch that looks 10 years old. The color of the new mulch will also revitalize your yard.
8) Put a $50 bag of fertilizer on your yard. Scott's with weed and crabgrass control comes highly recommended. It won't take long to turn a healthy green color.

Don't leave your yard looking disorderly. Never assume that even if you're selling your house at a bargain price, that the new owners will want to tackle the task.

When the time comes to sell your home, you should always start with your front yard, and work your way in. As one realtor told me, "When your front yard catches their eye, they're always intrigued by what’s inside."

FORECLOSURES: 25% of Sales Are Repo Homes

Forclosure homes made up nearly 1/4 of all residential sales in the second quarter, according to a report Thursday from Irvine-based RealtyTrac Inc.

The foreclosures tracking outfit said 248,534 U.S. homes sold in some stage of foreclosure during the quarter, an increase of 5% from the previous quarter, but down 20% from a year ago.

Foreclosures on average sold at a 26% discount compared with properties not in foreclosures. That's down from 27% in the first quarter.

Nevada, Arizona and California recorded the highest percentages of foreclosure sales in the quarter.

Foreclosure sales in Nevada were 56% of all sales in the state during the quarter. That percentage was 47% in Arizona and 43% in California.

Ohio, Kentucky and California had the nation's best foreclosure bargains. Ohio foreclosures sold at a 43% discount in the second quarter, while Kentucky foreclosures sold 41% below the average sales price of homes not in foreclosure. California's discount was 39% in the quarter.

Where To Start When Looking For A Home

Congratulations on making that decision to become a homeowner; the first step is considering what is most important to you in a home. The process in front of you may seem like a daunting task but once you narrow down exactly what you want in a home this process will be easier.

How Much Home Can I Buy?

Meet with a mortgage lender to find out how much you can afford to buy. By getting pre-qualified through a mortgage lender you will be able to search for homes you can afford. The lender will provide you with a checklist of items to bring for pre-qualification, but typically you have to gather information about your finances: W2 forms, tax forms, recent pay stubs and bank statements. The lender will also secure a copy of your credit report after you sign a standard permission form.

Where Do I Want to Live?

Finding the right neighborhood is just as important as finding the right style home for you. Your options will be vast but a realtor can help you preview different communities that best suit you.
 What area do you want to live in?
 What kinds of home interest you? A townhome, a single family, or perhaps a condo.
 Do you desire a family oriented community or one with a more lively night life?

How Can I Find My Dream Home?

The wisest choice is to select a realtor to help you gain access to all the homes for sale that fits your needs and assist in negotiating a fair price. Additionally, a realtor is aware of incentives and programs that are offered, not to mention market activity and comparable area home values. Once you find your dream home your agent will work with you in putting together an offer to present to the seller.

Do I Qualify for any Home Buying Incentives?

You may be able to put more money toward your down payment or reduce your closing costs fees by getting money through a number of home buying incentive programs. Although some programs are only for first time home buyers there are others that have more flexible qualifications.

Closing the Deal

Once you have a signed sales contract it’s time to sit back and let the loan officer and underwriters take over. They will order an appraisal on the property, approve your loan and send you a commitment letter with terms and conditions of your loan. You should expect between 45 and 60 days between the time you sign your sales contract to the time you close on your home. After attending the closing/settlement meeting to sign all of the paperwork you'll get the keys to your dream home, Congratulations!

What's Ahead For The Home Market?

For a while it seemed as if the long awaited housing recovery was here. Home prices stopped falling and stayed pretty close to stable. But the pickup was short lived. Economists are predicting home prices to fall again and bottom out by early 2011.

We can place much of the blame on distressed properties; more than 3 million homes are expected to get foreclosure notices this year, as job losses are still straining the market. In addition, one in every four homeowners with a mortgage now owes more on the loan than the house is worth. And a growing number of these owners have made a strategic decision to default. Meanwhile, short sales have spiked to an all time high. There is now a streamlined approval process and a new government program that gives servicers financial incentives to arrange a short sale instead of foreclosing on a troubled property.

Tips on focusing towards bank-owned properties

Sure, there are some real gems in the mix but you've got to be prepared to listen to your realtor's recommendations and be ready to throw muscle int the clean up. These properties sometimes need serious repairs and you don't always have a fair chance to check the property out before bidding starts. You don't have to take on the risk of a distressed property to reap the benefits of bargains. If you're shopping in an area with a growing number of foreclosures, use that fact to get price concessions from anxious owners. Your realtor can insist the homeowner fix anything wrong with the house or provide a discount to you so you can fix it later.

Hoping to sell your home? Don't try to compete with foreclosed properties in your area. Instead, play up your advantages; a home that's in move-in condition and the possibility of a quick deal. And to speed up the deal even more you can reassure buyers with a warranty package that will cost you somewhere around $300-$400.

Which homebuyers are getting the best deals?

Trade-up buyers who want a bigger home are finding the best deals. That same house on the hill that sold for $500,000 can now be purchased for a mere $350,000; even the Mc Mansions that were selling for $750,000 can now be attained for $550,000.

Looking Ahead at Mortgage Rates

The best mortgage rates are now because the consensus is that by year end/early 2011 rates will climb up to 6%...maybe. While many people are in a hold pattern and not sure whether to lock into low rates or wait, consider this - mortgage rates are going to eventually climb and if today's rates are just one point below, you are looking at a decrease of about $300 in mortgage payments. Do you really want to pay more than you have to?

Budget Shopping for a Home

Wondering if you’ll ever reach your long-term goal of home ownership? That seems to be a primary concern today for prospective homebuyers. But even in a recession, the dream of homeownership doesn’t have to be unfeasible. While the reality of owning your own home may seem elusive there are steps you can take to realize this goal.

#1 – Review Your Credit ReportThis is the entry point for all prospective homeowners but many people still step over this important item. If you are not credit worthy then you must start proving yourself unless you can bankroll a hefty deposit to place on a home. Nowadays, credit restrictions are becoming more stringent because of the losses lenders suffered in recent years. Many people fear what their creditors have reported but you may be surprised at how easy it is to clean up your credit report. Either way, homeownership and FICO scores go hand-in-hand, so start reviewing that report sooner than later.

#2 – Not enough money for a down payment?Most people are aware of the acronym FHA but do you know they enable you to get a lower mortgage rate with flexible credit terms? The program is easier than banking guidelines and has less paperwork.

#3 – Consider Purchasing in Rural LocalesDid you know there’s a government program through the U.S. Department of Agriculture that helps you buy land in rural areas? This move may seem disheartening when you’ve had your eye on a urban home but a change in scenery can be beneficial for you in the long run.

#4 – Look into Short Sales and save a bundleWith an abundance of homeowners unable to keep up with their monthly payments it’s almost inevitable not to get an amazing deal.

#5 – Save by Buying a Fixer-Upper(HUD) has a 203(k) program that enables buyers to purchase a fixer-upper or handyman-home and roll the expense of repairs into the loan.As you can see, there are a number of ways to afford homeownership and several are provided by the government making it easier to get approved

Need-to-Know Items For Your Home Repairs And Rehabs

Whether it’s fixing up a kitchen, adding a half bathroom or performing a full-gut rehab there are many things to consider before taking on a renovation project; and no matter how many times you “think you’ve got it covered” nine times out of ten, you’ve got a hole in your plan.
Any contractor you hire must have insurance; must have references; and you need to see proof! You see, trust can be a dangerous thing in home rehab and repair jobs while knowledge is strength. Don't get me wrong...there are some wonderful handymen and contractors out there who basically get a bad name just because the last guy did a terrible job. But should you pay for this problem? No – always get the proof.
· Request references and check them out. Just receiving a list of names and numbers isn’t good enough· Ask your contractor’s to review a copy of his current liability insurance certificate
· Get a contract in writing, with specifics that you’re agreeing to
· You should never be required to pay more than one-third of the contract price as a down payment
· If a building permit is needed, ask to see the permit before the work begins
· Do not make payments unless work is proceeding by contract guidelines
· You should never rush into any renovation or remodeling job. By doing so you are relinquishing control to the contractor. You probably will not have problems with an honest contractor, as he should help you work within your budget.
· Rushing into your project only benefits the corrupt contractor who would probably try to sell you the rehab job with products that make him the most money... and not necessarily in your best interests

Rehab and repair doesn’t have to become an agonizing experience; the key to making sure your project runs smoothly is to do your homework ahead of time.

JUMBO Loans Making A Comeback

A year ago, even the most creditworthy borrowers struggled to secure home loans of more than $729,750 - the cutoff for conventional conforming loans backed by Fannie Mae and Freddie Mac. But since this spring, the interest-rate spread between conforming and jumbo loans has narrowed and the number of lenders offering the loans has jumped. As of late July, lenders were offering jumbo loans at a typical rate of about 5.5 %, down from almost 7 % a year earlier and not too different from what's available for conforming loans, according to data available on Bankrate.com. NAR Chief Economist Lawrence Yun said in a late-July press conference that sales of existing homes priced at $750,000 and above jumped 30% from mid-2009. Among the big players in the market: Citigroup, which says in a July 10, Wall Street Journal article, that it has seen a 30% rise in jumbo business, and Bank of America also claims a big push in the jumbo arena.

The Popularity of LEED Homes

With more people wanting to take an active role in "going green", there is growing interest in the concept of LEED homes.

This nationwide green building program can apply to any structure, from corporate buildings to private residences. There is a very precise certification system that allows a home to qualify as a green structure, and it can be an expensive endeavor. For many, the upfront cost can be a deterrent, but for anyone that cares about the environment and their health; it's a small price to pay.

Understanding the long-term benefits of a LEED home encourages many homeowners to take the plunge and go green. In fact, did you know that going green can solve many allergy problems? With childhood asthma and allergy problems on the rise, parents are readily considering the concept of living green.

It is expected that in the next few years green homes, like hybrid cars, will become more common. As popularity rises, upfront costs to go green will go down, allowing more people to enjoy the benefits of living this way. To achieve certification, a home must meet many criteria and be rated by a professional in the LEED industry. They will ensure that the home will operate under certain guidelines before they can deem it a green home.

Some of the qualities necessary to becoming a LEED home are water efficiency, energy efficiency, indoor environment quality, and innovation in design. It's also important that the home meet certain sustainability standards’, meaning it is built on land that was already developed and doesn't impact the environment in a negative way. Going green is something homeowners all over the country are considering. With so much opportunity for solar energy, it's no wonder homeowners continue to see more people opting to build LEED homes.

The benefits of a green home are numerous. For many people, the fact that they are making a positive impact on the environment is incentive enough, but it's nice to consider the other things that one can enjoy with a LEED home.

Lower energy bills, less risk of certain toxins, and improved resale value are some of the benefits. It's no wonder so many people are trying a cleaner green concept in all areas of their lives. From recycling to living green, you can save money and have a clear conscience at the same time.

Is it Easier to Get a Home Mortgage Loan with a Broker or Banker?

Times are tough especially those trying to purchase a new home with blemished credit; so would life and loan prospects become easier if you were to trust a mortgage broker or a banker?

The interest rate will be the same whether you use a broker or deal directly with the bank but the broker knows all the latest greatest programs, specialty lenders, qualifying clauses and in’s and out’s to get you connected with a lender that can approve you.

You see, if you have “A” credit then you really can go just about anywhere you want to get a home mortgage loan. If you have blemished credit you have to hunt and track down that 1 lender who is willing to give you a home mortgage loan with a decent interest rate. A mortgage broker has the inside track on who will be willing to underwrite your loan and which lenders are a waste of time to even ask for a loan.

But there are downsides to mortgage brokers; many of them have a bad name because of predatory lending however, many of the programs and bad financing loans are no longer in play and were eliminated due to the financial downfall of many institutions. Additionally, once you supply all your information to the mortgage broker you will not deal directly with them anymore – the lender then takes the lead and the mortgage broker collects his/her commission.

Finally, the mortgage broker may not have your best interest at heart – it’s simply the commission that they are fighting for. Their job is to find you a home mortgage loan that you can qualify for; it may not be the best program for you and many times the mortgage broker will not explain all the if, and or what-if’s.

So again, how do you know if you should go to a mortgage broker or banker? Well first, to protect against the less reputable brokers select a member of the NAMB (National Association of Mortgage Brokers).

Next, take a look at your credit report and determine how “blemished” your scores really are; if below 620 you should probably think about a broker who can put you in contact with specialty programs and lenders willing to take more of a risk. If your score is closer to 700 then why not try a banker? Go ahead and contact a banker to start your application for a home mortgage loan and see what happens.

TEN TIPS FOR FIRST TIME BUYERS

Every year thousands of all homes purchased are by first-time homebuyers. While it can be a daunting task, owning your own home is very rewarding. Listed below are ten tips to help make the process less intimidating.

Consider the following:

1. Your credit: Poor credit will make you a much larger risk in lender eyes and a larger risk means higher interest rates and higher monthly mortagage costs. Make a point of paying your credit card payments, auto loans, rent, and other payments on time, all the time, and in full. In addition keep your credit card balances low. Higher balances mean higher risk in the eyes of the lender.

2. Taxes and Insurance: Keep in mind that in addition to your mortgage payment you will have to pay taxes and insurance. Sometimes this is not included in your mortgage payment and can be quite a shocker when you see how much it increases your total monthly payment.

3. What about the real estate agent: Real estate agents are at the center of most property transactions. It's important for you to know what an agent does, who is represented, and how the system works. Be sure to ask the agent who they work for, who pays them and what your obligations are.

4. Consider what location will work best for you: Look at your needs, the needs of household members, and your preferences in terms of commuting, shopping, recreation, and other factors that are important to you.

5. Plan on getting a home inspection as part of any offer you make: A professional inspection can help you understand the condition of the property and any potential hidden defects.

6. Talk to a lender: Get pre-approved by a lender so that you know how much you can borrow and what you can afford. There is a big difference between pre-qualification and pre-approval. Ask your Lender about the difference.

7. Save money: You'll need money for a down payment, closing costs, moving and other expenses. Do anything and everything you can to reduce expenses and save money.

8. What type of loan is best: Consider FHA, VA, as well as conventional loans. Work with your lender to determine which loan is best for you.

9. Grants, gifts and potentially free money: Many first time buyers receive gifts from relatives and friends. Some companies also offer grants and other incentives to employees who are buying a first home. Community groups may also have prograams and financing in place for first-time buyers, while the federal government has established special programs for teachers and police officers. Search for these and ask your Realtor for programs that they may be familiar with.

10. The time is now! Start the search process now. Talk with an agent and start looking at homes. Make a point to search the Internet on a daily basis. There has never been a better time to be a buyer than right now. There is plenty of inventory to choose from and plenty of deals to be had?