How to Restore Your Credit Score Quickly

Buying a home is the American dream and you have decided that it is time to start looking into buying a home of your own. That's great! However, you probably know that there are things you should be doing before you begin your search - but where do you start? The first thing you need to get in order, before you do anything else, is to get a copy of your credit reports. That's plural - credit reports.

You need to get a copy of your credit reports from all three credit reporting agencies - Trans Union, Equifax and Experian. If you are thinking about buying a house, you may not realize the importance your credit reports hold in getting an approval for your new home.

 The mortgage companies are more concerned about your recent buying and repayment history than what may have happened years ago. If you have too many recent late payments or collections, there may not be anything you can do to get approved in the immediate future.

 However, there are some things you can do to clean up your report. So in six months to a year or maybe even two years, depending on how bad your credit is and how long it takes you to clean it up, you can apply for a home mortgage and get your approval.

 Here are a few things you can do to restore your credit and credit score quickly:

 1. Check your credit reports for errors. Again , that is plural so check all three of your credit reports for errors. If there are mistakes on your credit reports, you will need to start an investigation with the company or the source of the derogatory information. Contact them in writing and make sure you include all supporting documentation proving the information is in fact an error.

 2. Set up a timely repayment schedule. If you have any accounts that you have been late in paying, you will need to begin paying all of them on time. Paying your bills on time for a minimum of six months will go a long way in improving your credit rating.

 3. Collections. Try to avoid having your accounts turned in to collections. A collection is the most damaging of all credit issues. So work out a re-payment plan before your account turns into a collection. A credit improvement agency may be able to help you get your collections erased; but only if the creditor did not abide by all of the laws of the Fair Credit Reporting Act. However, this is generally not the case because most creditors know the laws and how to follow them. So don't count on this as a quick fix . Most collection accounts will stay on your credit report for a minimum of seven years.

 4. Keep a low balance on all of your revolving credit accounts. Try to keep your balances below 50% of your limit. The lesser the balance the better it looks to potential creditors.

5. Do some soul searching. Try to determine what caused your credit status to get out of control in the first place. Then do whatever you have to to amend your bad habits - if any.

 6. Get a secured credit card. Secured credit cards can be very helpful in improving your credit. There are many things you can do to get your credit report back on track quickly. So talk to your real estate agent for more information about how you should go about doing this.

 In the meantime, your Realtor will be able to get you started on your path to home ownership while you are working out your credit issues. Your agent has the experience and the know how to help you get into your new home as quickly as possible. So take advantage of all they have to offer you.

Existing Home Sales Improve

The conflicts in Ukraine and the Middle East had little impact on markets this week, while the economic data was slightly stronger than expected overall. As a result, mortgage rates ended the week a little higher. 

The housing data released this week contained mixed news. Fortunately, the good news came from Existing Home Sales, which cover roughly 90% of the housing market. June Existing Home Sales rose 3% from May to the highest level since October 2013, marking the third straight month of increases. Also, the inventory of existing homes for sale rose to the highest level since August 2012.

 Less encouraging, June New Home Sales, accounting for the remaining 10% of the market, declined 8% from May, and the May results were revised sharply lower. These figures are frequently volatile from month to month. New homes inventories increased as well to the highest level since October 2011. To summarize, the bulk of the housing market showed continued improvement, and the tight supply of homes for sale in some markets may be showing signs of easing.

While Fed officials have recently downplayed the risk of higher inflation, many investors are not quite so certain. The inflation data released on Tuesday eased some concerns, but just slightly. The June Consumer Price Index (CPI), one of the most widely watched inflation indicators, increased at a 2.1% annual rate. Core CPI, which excludes the volatile food and energy components, was 1.9% higher than one year ago. With CPI holding steady close to the Fed's stated target level of 2.0%, investors will be keeping an eye out for signs of rising inflation which could pressure the Fed to tighten monetary policy. 

Next week, investors will be watching both geopolitical events around the world and major economic news in the US. The next Fed meeting will take place on Wednesday. The first reading for second quarter GDP, the broadest measure of economic growth, also will come out on Wednesday. 

The important monthlyEmployment report will be released on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Core PCE inflation, ISM Manufacturing, Pending Home Sales, and many other reports will round out a very busy week. In addition, there will be Treasury auctions on Monday, Tuesday, and Wednesday. 

How to refinance your mortgage

Here are six tips to consider if you're looking for refinancing options outside of HARP by MSN Real Estate

By Juliette Fairley of MainStreet | MSN

http://realestate.msn.com/how-to-refinance-your-mortgage

1. Shop around. The job of the consumer is to find the best APR and the lowest fees. "They vary the most in the mortgage financing industry," said Steve Nakash, national retail manager with Nationwide Direct Mortgage.

2. Maximize your time. Mortgage brokers can check five or six banks to obtain the best rates of the day. "Bigger banks like Bank of America only have access to their own bank rates," said Tim Lucas, a former loan officer and editor of mymortgageinsider.com.

3. Protect your credit report. Narrow your choices down to three lenders before having your credit report pulled by any one of them. "If you get your credit report pulled too many times, it affects your credit score," Nakash said. "If you are not doing business with a particular bank, don't allow them to pull your credit."

4. Determine your mortgage options. "Credit unions are good for short-term fixed-rate mortgages at 10 or 15 years, but for a mortgage more than a million dollars, consider a private bank, especially for a 10-year or seven-year ARM, because the private banking departments of big banks have competitive rates for larger mortgages," said Michael Moskowitz, president of Equity Now, a direct mortgage lender.

 5. Seek continuity. When refinancing with an online lender, request to be handled by only one account representative to avoid being passed around from one rep to another. "Most online lenders will accommodate that," said Nakash, who services eight states online including California, Colorado and Washington.

6. Pay attention. When the loan-to-value ratio is more than 80%, secure mortgage insurance. "If you have a $375,000 loan, 80% would be $300,000," Moskowitz said. "Mortgages of more than 80% must include insurance, according to Fannie Mae, Freddie Mac and FHA requirements."

http://realestate.msn.com/how-to-refinance-your-mortgage

Biggest Home Seller Mistakes

1. Overpriced Home

Nothing shocking here. This was far and away the most common mistake sellers make that prevent them from selling their home. 

If you overprice your home there is a pretty good chance no one is going to want to buy it. Real estate agents do not set the real estate market. A great real estate agent will suggest a price at which to list your home based on comparable homes that have already sold in the market. Overpricing a home to 'see if you can get someone to bite' is not a strategy employed by someone really serious about selling. Overpricing a home will lead to missed opportunities with buyers that are serious about buying in the range at which your home should be listed.

The first week during which a home is listed will generally be the time that the most eyeballs are on the home and the largest potential pool of buyers will be exposed to the listing. Setting a price that reflects the market is essential to selling! This is exacerbated in a downward trending market. Many a seller has lost thousands, even tens of thousands of dollars chasing a market down after setting a listing price that was outside what the market was willing to bear.

Margaret Goss, a Broker with Baird & Warner on the North Side of Chicago gives you a few reasons that an agent will take your overpriced listing and then shares the repercussions of making the decision to price your home too high.

2. Showing Availability - It's Difficult to Set a Showing

The chances your home will sell when buyers can't get in to physically inspect the property are minuscule. Sellers need to understand that listing a home for sale is going to lead to some inconveniences in your normal routine. Many serious buyers may want to physically inspect a property during times which may not be convenient for the seller. Knowing this, motivated sellers need to understand that flexibility in when you allow the home to be sold could have a direct impact on the sale of your home.

It's not uncommon for sellers to see 8, 10, even 20 homes during a showing tour with their agent. If your house isn't on that list because you only do showings on Saturday and Sunday from 10am to 4pm, you will miss out on ready, willing and able buyers. 

As a seller, realize that the more people that can see the home in person, the more chance you have to find the buyer that wants your home. Eric Kodner, a broker with Madeline Island Realty in La Pointe Wisconsin shares a real life example of an unavailable seller costing herself a sale and a lot of money.

3. Cluttered Space - Unwilling to Depersonalize or Remove Clutter

Sellers are sometimes unwilling to either make the effort, or unwilling to compromise how they live in their home during the time the home is on the market for showings. Serious sellers realize that by depersonalizing the home and removing unwarranted clutter, it allows potential buyers to more easily visualize their own things in the house.

When you live in your home day in and day out, you become comfortable with your own 'things'. In many cases, however, your 'stuff' can make a room feel smaller than it actually is and in some more extreme cases, your 'stuff' can completely distract someone from visualizing the potential of a room. We know you are proud of your kids as the shrine in the living room displays all of their ribbons, trophies and diplomas from the last 20 years. But for a buyer, this is only a distraction. 

Many agents will make recommendations about ways to remove clutter or depersonalize your home. Some will even suggest that a professional homestager be brought it to completely maximize the space and create a setting maximizes the buyers ability to visualize their own things. The key thing to remember here is these suggestions are not personal and you may have to be a little uncomfortable so that your house puts it's best foot forward.

Ralph Gorgoglione, a real estate agent with the John Aaroe Group in Los Angeles reminds us that "as a seller, the most important thing to realize is that, yes, your crapola means a lot to you. But it means nothing to anyone else." Especially a buyer trying to visualize their own stuff in your house.
 

4. Unpleasant Odors in the House

"Mr and Mrs. Seller, your house stinks!"

Most agents aren't going to be this blunt. But in some cases they wish they could be. They'll take a more tactical approach and say something like.....'during the time your house is on the market, it might be a good idea to smoke outside'.

But what they know is that nothing will stop a potential buyer in their tracks faster than a strong odor of any sort. In some cases this could just be the left over smell from last nights dinner. In more extreme cases, agents tell horror stories of entering homes that have a bad smell of pet urine or smoking. 

The main concern for the buyer is, of course, "is the house going to smell like this once we move in?" Real Estate agents confirm that many a buyer has passed on a home after coming to their own conclusion on that answer. 

Your agent isn't suggesting a fresh coat of paint and new carpet because they don't like how things look. They are making this suggestion because they realize that the smoke odor in your home is going to be a major turn off for anyone thinking about buying your home.

Real estate broker Dick Greenburg with Elevations Real Estate, LLC in Fort Collins Colorado even goes so far as to suggest "homes with bad odors don't sell because buyers are having intense and complex negative reactions that are beyond working around."

5. Seller Unwilling to Make Repairs Prior to Listing

No seller wants to spend a few thousand dollars making repairs to a house you are about to sell. Agents understand that. But they also understand that few buyers want to move in to a house that needs a bunch of work done immediately upon moving in. 

One of your objectives to selling your home is to make it as appealing as possible to as wide of an audience as possible. If the seller is unwilling to make repairs, and a buyer doesn't want a bunch of work upon moving in, you've shrunk the pool of potential buyers for your property.

Some sellers may want to offer the buyer a credit at closing for certain repairs. Real estate broker Chris Ann Cleland, with Long and Foster in Gainesville, VA shares with us why that strategy isn't better thanmaking the repairs yourself before putting the home on the market.
 

6. Sellers Unwilling to Negotiate with Buyers

Setting a market price on a home is not an exact science. Many real estate agents will give the seller a range in which they predict the home will sell. As a seller, you should always want the most money the market will bear. That being said, the unwillingness to negotiate with buyers can turn away even the most serious buyers.

Price is not the only condition which is open to negotiation. Buyers and sellers can negotiate on dates, fixtures that might stay with the home, repairs and a host of other sticking points. Sellers that refuse to negotiate and are set on digging in their heels are much less likely to find a willing and able buyer.

Don't be insulted by low offers. Buyers want to get the home for the best price and on the best terms they can. Just like a sellers wants to sell for the best price on the best terms. It's rare that either party walks away from a negotiation with everything they want. Motivated sellers understand this and are willing to negotiate.

Debbie Reynolds, a broker with Prudential PenFed Realty in Clarksville Tennessee, cautions sellers against being unwilling to negotiate as well as second guessing your original listing price.

7. Bad Photos in the MLS

This one will most likely fall on your real estate agent. But knowing that bad photos in the MLS can be an impediment to the sale of your home, as a seller it's imperative that you demand great photography from your agent.

Studies show that greater than 85% of people are going online as a part of their research for buying a home. Most buyers will probably first be introduced to your home online. Poor photos could be cause for them to disregard your home before they ever set foot in it. 

The photos used to market your home are generally the first impression any buyer will have of your home. When picking an agent to list your home, ask to see examples of photos from previous listings. Do their photos make you want to take a look at the home?

Never let your home go on the market without photos! If it means waiting a day or two before listing, wait. A large number of potential buyers in your market will be exposed to your home the first day it goes on the market. Having great photos the first day the home hits the market is a must.

Tammie White, a REALTOR® with Benchmark Realty LLC in Franklin Tennessee tells us why "it is crucial to have professional photographs to show off your home."

8. The Home is Just Plain Messy

You were late for work this morning so you ran out of the house without picking up from last night's dinner. Not a big deal.....unless you have potential buyers that will be stopping by. 

Some people may be able to look past the dishes stacked up in the sink, but enough buyers won't be able to look past the mess. Remember, buyers want to envision their things in your house. The more obstacles you put in the way, the harder time they have connecting with the home emotionally.

Take the time every day to make sure everything is cleaned up and the home is in showing condition. 

Woody Edwards, a REALTOR® with First Choice Realty in Chesterfield Virginia is reminded of an old saying his grandmother used to have, "never leave home until the home is in dying condition". This couldn't be more true than when selling your home.

9. Sellers Who Like to Play Tour Guide During Showings

Almost every real estate agent who participated agreed that sellers should leave the house during showings. Some sellers want to stick around and make sure buyers see all the important features of a home. The problem with that.........as a seller you don't know what's important to a buyer. 

Sellers that hover around during a showing will make the buyer nervous. They won't feel comfortable discussing things they like or dislike about the house with their agent. In addition, most buyers like to explore a little bit. Interested buyers tend to do things like open cabinets and check in closets to get a better sense for the entire home. A hovering seller can make this very uncomfortable for some buyers.

Bottom line......leave the house when it's being shown. Your presence there will only make things worse. Karen Feltman, a real estate agent with Skogman Realty in Cedar Rapids Iowa gives you a couple ofspecific ways that a seller's meddling during showings can hurt or kill a deal.

10. Picking the Wrong Agent

You decided to list with your aunt or with your friend that just got in the business. You paid no attention to their experience or what they do to market a home. Maybe not the best idea. 

Real Estate agents will often suggest interviewing more than one agent. You'll never know if your aunt is going to do a good job of marketing your home for sale if you have nothing to which to compare her. 

Don't be scared to ask a real estate agent questions about why they are a better choice than anyone else you may be considering. Just like with any profession, there are good real estate agents and there are bad real estate agents. Anita Clark, a REALTOR® with Coldwell Banker in Warner Robins Georgia shares a great list of potential questions you will definitely want to ask before you pick an agent. 

Real Estate Hidden Gems

Mortgage servicer to pay $268 million to Californians

It's part of a $2.1-billion national settlement with Ocwen Financial, which is accused of breaking state law by denying loan modifications and charging unauthorized fees.

http://www.latimes.com/business/la-fi-ocwen-foreclosures-20140318,0,1317760.story#ixzz2wRSnOS7m

By E. Scott Reckard | LA TIMES

 

California victims of alleged foreclosure abuses will get $268 million in relief from a $2.1-billion national settlement with Ocwen Financial Corp., the nation's largest non-bank provider of mortgage customer service.

Ocwen broke state law by improperly denying loan modifications, failing to honor modifications granted by prior servicers and charging unauthorized fees, according to the California Department of Business Oversight.

"Californians should not lose their homes because of deceptive and poorly executed mortgage servicing practices," Commissioner of Business Oversight Jan Lynn Owen said Monday in a news release.

The announcement provided new details on how alleged victims would benefit from the settlement, finalized last month between 49 states, the U.S. Consumer Financial Protection Bureau and Ocwen. It also spotlights a growing controversy as major lenders outsource their mortgage servicing operations to Ocwen and other firms that specialize in collecting payments, pressuring delinquent borrowers and foreclosing on defaulted mortgages.

The banks are seeking to limit the hassle and cost imposed by tougher regulation of loan servicing in the aftermath of the mortgage meltdown. That's bringing a rush of new business to firms including Ocwen and Nationstar Mortgage Holdings Inc., which traditionally have specialized in handling subprime borrowers.

But as they have mushroomed in size, the specialists have become targets for foreclosure abuse complaints similar to those that have plagued the nation's largest banks since the housing crash.

Ocwen, an Atlanta company with a mortgage servicing arm based in Florida, began managing home loans in 1988. Thanks to an acquisition spree, the number of residential loans it services has grown from about 350,000 to 2.9 million over the last four years. The unpaid balance on these loans totaled $464.7 billion as of Dec. 31.

Mark Buchignani is among those accusing Ocwen of improperly threatening to foreclose on his home. He took a second mortgage of $39,500 when he bought a home in Phoenix in 2006. The original servicer, since replaced by Ocwen, was GMAC Mortgage, a spinoff from General Motors Corp. that had been a major player in home loans during the housing boom.

Buchignani said he never missed a payment until July, when automatic transfers from his bank account stopped going through for four months without his knowledge. He said he continued to receive emails saying the payments had been made. Since he discovered the problem, his offers to bring the account current have been met only with penalties, he said, and a recent threat to foreclose on the home.

"No amount of communication, calls or emails or faxes or letters, complaints or explanations has deflected them from piling on fees and interest and penalties and credit damage," said Buchignani, a video-game designer who recently moved to Southern California and is renting out his house in Arizona.

"They continue to forward my communications to 'Research,' who then issues letters saying they will respond within 20 days," Buchignani said. "But, of course, they don't."

Ocwen did not respond to requests for comment Monday.

In its recent annual report, Ocwen described itself as a leader "in foreclosure prevention and loss mitigation that helps families stay in their home and improves financial outcomes for investors."

But advocacy groups and state regulators have questioned whether it and other big independent servicers have been able to handle the influx of mortgages.

Ocwen said last month that it had indefinitely postponed a planned purchase of servicing rights on about 184,000 severely delinquent Wells Fargo home loans with a principal balance of $39 billion. The move came in response to pressure from the New York Department of Financial Services. Ocwen said it would work with the New York regulator "to resolve its concerns about Ocwen's servicing portfolio growth."

Many of the servicing rights Ocwen acquired came from such household names as Bank of America and Chase. The biggest deal of all was with Residential Capital, which owned the GMAC servicing rights, and while in bankruptcy proceedings sold Ocwen the servicing rights to more than 1.7 million loans in February 2013.

ResCap, as it is known, was among five lenders that signed the national settlement requiring them to provide $25 billion in relief to distressed borrowers; the others were BofA, Chase, Wells and Citigroup Inc. As a result, Joseph Smith, the former North Carolina banking commissioner overseeing the lenders' compliance with the settlement, has now been given authority as well over Ocwen.

In an interview Monday, Smith said he hadn't yet had time to test and report on Ocwen's compliance with stricter servicing rules contained in the settlement. "They're still new to the party," he said.

"My colleagues and I are going to be working on these kinds of issues with Ocwen for the next three years," Smith said, a reference to when his authority expires.

Copyright © 2014, Los Angeles Times

http://www.latimes.com/business/la-fi-ocwen-foreclosures-20140318,0,1317760.story#ixzz2wRSsXfpZ

March Real Estate

Millennials: How to Sell to Today’s Youngest Homebuyers

Posted by RE-Insider  • Categorized as Industry News

As with any generation, the Millennials have their own unique likes and dislikes – ranging anywhere from music to food – and one trend which seems to be significantly different from any of their predecessors is their preference in real estate.

In 2013, Generation Y accounted for roughly one third of all home sale, a number which will only rise as time goes on. While this can be a great thing for younger agents and brokers who can relate to these new homebuyers, this transition may not be the easiest for many of the seasoned veterans working in today’s market. The truth is that the median age of realtors today is 57 years old, a substantial difference from the median age of first-time buyers which is currently 31.

So to help adapt to this changing market, here are a few tips to use when finding the right property for the youngest of homebuyers:

1. The best things come in small packages
Keeping up with the Joneses – a race to prove cultural and socio-economic superiority through the purchase of material goods – was a common theme in the lives of many baby boomers, and as a result many of them have sought after a big home with a big price tag. While this behavior may not be a problem for some, it has caused numerous problems for Generation Y. Over 50% of Gen Y kids come from divorced homes. Why? Communication between family members and money problems are the most cited reasons, and many believe these problems stemmed directly from having a big house. As a result, the Millennials want smaller houses on smaller lots. This puts less financial strain on those with tighter budgets and also promotes more interaction between family members.

2. Diversity is key, so jump into the melting pot
Many members of Generation Y have been exposed to more culturally diverse areas, and as a result they look for similar diversity. Urban centers offer a buzz and culture which cannot be found in many suburbs – people from all over the world as well as the music, food and arts they bring with them – and the Millennials actively seek out these differences.

3. Look for a greener living
It has been reported 57% of all members of Generation Y prefer products that are environmentally friendly, and this number is expected to keep going up. Builders are responding to this trend by providing homes with energy-saving appliances, as well as insulation made from soy or other natural products, so keep these “bonuses” in mind when trying to sell a home.

4. A short walk can go a long way
One trend which has surfaced lately in the Millennial community is their interest in walkability. Many members of Generation Y would prefer to walk or ride a bike as opposed to driving to work, so keep in mind the different businesses, restaurants, bars, parks, or anything else that is in walking distance when trying to sell a home. Not only does walking or riding a bike encourage a healthier lifestyle, but it further supports the Millennials’ interest in an eco-sensitive living.

Have you noticed these changing trends in buyers today? What are your thoughts?

4 Ways You Can Get More Services From Your Real Estate Agent

4 Ways You Can Get More Services From Your Real Estate Agent

By Heather Levin | MoneyCrashers

Even with rock-bottom interest rates and a glut of bargain-priced homes on the market, qualified buyers are still in short supply. This is primarily because it’s hard to getapproved for a mortgage loan unless you have stellar credit and a hefty down payment. But even when buyers do qualify, they often feel skittish about investing in a home. After all, the economy hasn’t yet fully recovered, and the prospect of losing a job while responsible for a mortgage is enough to scare many people away.

One effect is that real estate agents are feeling the pinch, and therefore are willing to jump through hoops for buyers and sellers alike. In other words, a variety of extra services are to be had often at no charge and simply by asking.

How to Get More Out of Your Real Estate Agent

1. Home Staging
Home staging is the preparation of a home to make it appear as visually and aesthetically appealing as possible, therefore setting it up to be sold more quickly and for a higher amount. Done properly, home staging can transform a property into a welcoming, attractive place that makes the prospective buyer yearn to own it.

Back in the real estate market’s hey-day, home staging was typically an extra service that sellers had to pay for. However, some real estate agents now offer free home staging simply if you list with them. Sometimes, they do the home staging themselves, or they outsource it to a professional stager with whom they work regularly. In fact, last time I listed my home, my real estate agent offered this service for free, which saved me several hundred dollars.

If your real estate agent doesn’t currently offer this service, ask if they’d be willing to provide it free of charge – many will in order to keep your business.

2. Professional Virtual Tours
A virtual tour of your home is the new standard among real estate companies – at least, it should be. Instead of simply displaying static photos of your home online, a virtual tour utilizes new digital technology to take viewers through your home and property using videos, 360-degree panoramic images, and seamlessly stitched photographs, often also incorporating sound effects, music, narration, and text.

Unfortunately, many real estate agents, especially those in rural areas, still don’t offer this service to sellers. When you’re shopping around for an agent, look for one that offers this service as it alone can attract potential buyers who would rather take a “tour” than simply look at pictures. Ideally, your home should be photographed by a professional photographer and then submitted to major sites, such as YouTube, Trulia, and Zillow. If your current real estate agent doesn’t offer this service, request it anyway. If they still can’t provide it, you may want to consider going with an agent who can.

3. Neighborhood Analysis
If you’re shopping for homes in an unfamiliar area, you might feel overwhelmed by the number of neighborhoods. After all, neighborhoods are just like people; they can have very different characteristics, even within a few blocks. Some might be quiet and reserved, others might be funky and artistic, and yet others may be a mecca for young families.

Finding the right neighborhood can be vital to making sure you’re happy long-term, so create a list of priorities, and search accordingly. What is most important to you – proximity to work or proximity to stores? Do you prefer to live in an area with lots of parks, trails, and bike paths, or do you prefer a more urban environment? If you have children, it is especially important to consider the local schools and the crime rate. Remember, it’s much easier to update or remodel a house than it is to change an entire neighborhood.

While most real estate agents can give you an overview of each neighborhood you’re considering, few will provide an in-depth neighborhood analysis that includes detailed information about local schools, area parks, and crime rates. Other factors that may be included in a neighborhood analysis include land uses, such as whether the neighborhood is primarily residential or mixed use (residential and commercial), and property types, such as single-family homes, apartment complexes, and condominiums. However, agents are prohibited from providing specific demographic information – but they can give you an overview of the kinds of families they’ve seen living in and moving into an area. This insightful information can be invaluable for buyers looking for the best fit.

4. Relevant Discounts
In order to market themselves more effectively, many real estate agents establish relationships with other home-related businesses that can benefit their clients. For example, they may coordinate with the local hardware store to offer discounts to clients, or even with contracting professionals, such as roofers, plumbers, electricians, and painters, to provide services at a discounted rate. Other agents may even offer free services from an interior designer or landscaping company if you buy or sell through them.

When you’re shopping for a real estate agent, look for those who can offer discounts on other professional services. They’ll probably tout these discounts on their marketing materials, so it’s usually a perk you don’t have to request.

Additionally, you may be able to take the opposite approach and ask if your agent is willing to accept a smaller commission for fewer services. With the housing market still struggling, agents are more willing to compromise in order to get your business....

CONTINUE READING HERE...

http://www.moneycrashers.com/more-services-real-estate-agent/

Who should foot the bill for L.A.'s sidewalk repairs?

It's time for the city to finish the work it promised to do, then return the responsibility of long-term care to property owners.

By The Times Editorial board | LA TIMES

Is there a better symbol of Los Angeles' mismanagement than its miles and miles of sidewalks broken, buckled and twisted by tree roots? These concrete chasms and mini-mountains have made many of L.A.'s walkways nearly impassable for people in wheelchairs or those pushing strollers or those who are less sure-footed. Yet the mayor and City Council have consistently punted on long-term, politically difficult decisions required to address the problem, and their inaction costs taxpayers about $4 million a year to settle trip-and-fall lawsuits.

Now, it looks like the city is finally moving forward. There are an estimated 4,600 miles of sidewalk that need repair, and the city set aside $10 million this year for sidewalk reconstruction; officials anticipate spending the same amount in future years. That is a return to pre-recession funding levels. In addition, Councilmen Mitch Englander and Joe Buscaino are considering putting a $4.5-billion bond measure on the November ballot to pave streets and fix most of the damaged sidewalks...

Continue Article Here:

http://articles.latimes.com/2014/feb/23/opinion/la-ed-sidewalks-20140223

Seismic Work Finance Change Sought

L.A. building owners can pass on only 50% of the costs of seismic upgrades, but Councilman Bernard C. Parks wants to increase that to 100%.

By Rong-Gong Lin II and Rosanna Xia | LA TIMES

A Los Angeles City Council member wants to allow owners who seismically retrofit apartment buildings to pass on the costs to tenants.

Councilman Bernard C. Parks said he wants the city to explore exempting these apartment owners from the city's rent-control law as part of a larger effort by city officials to strengthen thousands of buildings vulnerable to collapse during a major earthquake.

Under existing laws, only 50% of the cost of major apartment rehabilitation projects can be passed through to tenants, Parks said. Parks wants city staff to evaluate passing through all the costs to tenants but do it "over a reasonable period of time."

The idea marks a new front in the decades-long debate in Los Angeles and elsewhere about who should pay for retrofitting dangerous buildings. Twenty years ago, the upper floors of the Northridge Meadows apartment complex collapsed during the Northridge earthquake, killing 16 residents on the lower floor.

Los Angeles officials have known about the dangers of older concrete and wooden apartment buildings for years, but concerns about costs killed earlier efforts to require retrofits of privately owned buildings. Many owners say they shouldn't have to pay for expensive fixes on their own.

The council is already looking into a state bond measure that would help owners pay to seismically retrofit their buildings. But Parks said the city should first consider other options....

CONTINUE ARTICLE HERE...

http://articles.latimes.com/2014/feb/23/local/la-me-quake-renters-20140224

New high-rise on Broadway would be one of tallest in Southland

The apartment and retail complex, called Broadway @ 4th, would house 450 units and fill in a key block in gentrifying downtown L.A., developer Izek Shomof said.

By Roger Vincent | LA TIMES

It's been generations since a high-rise building had its debut on Broadway in downtown Los Angeles, but the skyline is finally in for a dramatic change.

A local developer hopes to transform a homely corner of the city's famed commercial corridor early next year by leveling a drab one-story retail center at 4th Street and Broadway. In its place would be a 34-story apartment skyscraper more than twice as tall as most other buildings in the historic core of downtown L.A.

To be built at a cost of nearly $150 million, the apartment and retail complex called Broadway @ 4th would house 450 units and fill in a key block in gentrifying downtown L.A., developer Izek Shomof said.

To market observers who saw the city's former elite streets of Broadway, Spring and Main become run-down and plagued by drugs and crime during the latter decades of the 20th century, it's remarkable that an extravagant upscale apartment tower would even be built in the neighborhood, much less one that would stand taller than City Hall.

"It's a new day for Broadway that large-scale construction is even proposed," said property preservationist Adrian Scott Fine, director of advocacy for the Los Angeles Conservancy. "It wouldn't have even been on anyone's mind 10 years ago."

Most buildings in the historic core date to the early 20th century. The most recent high-rise was an office tower completed at Spring and 6th streets in 1961. Soon after that, Fine said, many businesses began leaving the city's historic downtown blocks for newer office buildings on Bunker Hill and other blocks near the Harbor Freeway.

But developer Shomof has enjoyed success in recent years renovating old office buildings on nearby Spring Street and turning them into apartments served by hip restaurants, bars, nightclubs and shops.

"I have over 2,000 units with no vacancy," he said of his properties around 7th and 8th streets. "Why not go for another 450?"

Shomof recently submitted plans for Broadway @ 4th to city officials and hopes to get the go-ahead to start construction early next year. The developer and his architect face the challenge of coming up with an appropriate design for a new building in an old part of the city.

The site lies in several overlapping city land use zones where development is restricted, property consultant Hamid Behdad said. Among the zones are the Broadway Theater and Entertainment District, the Bringing Back Broadway Corridor and the Historic Preservation Review Area.

Assigned the challenge of designing a new building for a classic old neighborhood was architect Douglas Hanson, president of HansonLA. Among the city requirements: The first 10 stories or so had to be flush with the sidewalk to preserve sight lines along Broadway. The next 14 stories are to be set back 30 feet from the street.

"These are really strict guidelines that we are the first to test," Hanson said. "Nowhere else in L.A. do people have these kinds of restrictions to make something."

The goal for his firm was to design a building that would look appropriate on Broadway but wasn't an imitation of a historic building in the way that some baseball parks, for example, are made to look as if they were built in an earlier era.

"We weren't interested in making it feel historical," Hanson said. Instead, they used some historic architectural traits such as deep-set windows and other indentations intended to create shadows and texture.

Unlike many historic structures, the new building would have parking spaces both underground and set behind apartments on floors two through six...

CONTINUE Article HERE:

http://www.latimes.com/business/realestate/la-fi-property-report-20140227,0,1145329.story#ixzz2uZOP8vAn

7 Home Improvement & Remodeling Ideas that Increase Home Value (And What to Avoid)

By Heather Levin | MoneyCrashers

7 Projects That Add Value to Your Home

Many projects do add value to your home, and improve your family’s quality of life. By working on these projects now, you can enjoy the benefits and updates. If you make green upgrades, then you can also start recouping your investment in these green energy technologies once you complete the projects.

1. Remodeling the Kitchen

Most people consider the kitchen to be the heart of the home, and because of this, updates in this room pay off. According to HGTV, you can expect to recoup 60%-120% of your investment on a kitchen remodel, as long as you don’t go overboard. You should never make your kitchen fancier than the rest of the house, or the neighborhood.

Why You Shouldn't Invest in a Deluxe Kitchen
For example, a historic home in my neighborhood has been on the market for more than two years. During the owner’s last open house, I went in to check it out, and immediately saw why the house hasn’t sold. The quaint Arts and Crafts style home was built in 1900 and has a lot of charm. Unfortunately, the homeowners had invested over $60,000 upgrading the kitchen.

The enormous kitchen, easily the size of the living room, features appliances and countertops that might look more at home in a fancy restaurant kitchen. The style, size, and quality of the kitchen don’t fit in with the rest of the house, or the neighborhood. If you plan on selling your home within the next five years, keep potential buyers in mind before you start on any major remodel; many people won’t pay for a fancy, deluxe kitchen.

A Little Paint Goes a Long Way
When it comes to how much you spend on a kitchen remodel, prices can run the gamut, from $5,000 to $75,000, or more. Get the biggest bang for your buck on a kitchen remodel by looking at color. Fresh paint, in modern colors, can go a long way towards updating the look of your kitchen. Plus, paint is relatively cheap.

You might want to consider using low-VOC paint; this makes your kitchen more eco-friendly, and helps your family avoid breathing in dangerous chemicals, like benzene, that off-gas from regular fresh paint.

Energy-Efficient Appliances
Replace old appliances with energy-efficient models. Energy Star-rated appliances are better for the environment, and they also help you save money, because they use less energy. Potential buyers often look for ways to save money when shopping for a new home.

If you’re looking upgrade your appliances to save energy, learn more about the the best time of year to buy large appliances.

2. Bathroom Addition

If your home only has one bathroom, you can recoup a large chunk of your investment by adding another one. HGTV estimates that you can recoup 80%-130% of whatever you spend adding a bathroom.

When it comes to finding room in your house for an extra bathroom, take a look at any extra rooms or underutilized spaces. Consider other spaces, such as closets or areas under the stairs, too. If you want a half-bath you need at least 18 square feet. If you want a full bath, including a stand-up shower, you need at least 30 square feet. If you want a bathtub, make sure you have at least 35 square feet to work with for a bathroom addition. See these bathroom design and remodeling ideas to get you started.

  

Like any project, the cost of adding a bathroom depends largely on the types of additions and accessories you want to use, and the cost of each of these items. You can save money by frequently checking Lowe’s and Home Depot; they often drastically reduce prices on sinks and toilets that have been floor models. You can also find great prices on tubs, doors, toilets, and fixtures if you shop at a Habitat for Humanity ReStore.

3. Reinventing a Room

Adding more square footage to your home with a new room can be an incredibly expensive project. Although you can recoup some of your investment, anywhere from 50%-83%, this project’s costs can quickly spin wildly out of control. Just turn on any of those home remodeling TV shows; projects that start off with a $15,000 budget quickly turn into $30,000 or more when homeowners and contractors run into unexpected problems.

Reinvent the existing space in your home to save money. Finish a basement, or convert the attic to a bedroom. Many homeowners can also add small apartments in, or over, their garages – which they can then rent out as a room.

Before you demolish walls and rafters, try to think about the ways that you, and potential buyers, can use the space:

• Versatile rooms have greater appeal to potential buyers.
• Basements frequently work well as second living rooms, or game rooms. Many people also turn this space into a small apartment for an aging relative or a tenant.
• Attic spaces often work well for craft rooms and game rooms, especially if they have high ceilings. If you have kids, you can add swings to the rafters, and create a cool play room just for them.

According to Remodeling Magazine’s annual Cost vs. Value report, an average basement remodel, with the addition of a wet bar, costs $64,000. You can save a significant portion of this by doing the work yourself, but even then, adding a new room can be expensive.

g Energy-Efficient Windows

These days, buyers shop for homes with energy efficiency in mind. Old, drafty single-pane windows are a major turn off. Energy Star claims that adding Energy Star-rated windows can save you up to $500 a year in heating and cooling costs by making your home more energy efficient.

According to HGTV, you can expect to recoup 60%-90% of your costs when you invest in energy-efficient windows. You can also receive a green energy tax credit of 10% for this upgrade, as long as you install Energy Star-rated windows. You might also qualify for additional credits from your state, or even your utility company.

Learn more about available offers and rebates in your area by visiting the Energy Star Rebate Finder. They have a searchable database that gives you specific information for your state. Just make sure you check “windows” so you get product-specific information. I searched for energy-efficient rebates in my zip code and discovered that my utility company, DTE, offers rebates to customers who install Energy Star windows.

Energy Star estimates that the average cost of window replacement in an average-sized home costs $7,500-$10,000, or more. If the new windows save you several hundred dollars a year, and you recoup a tax credit, you can eventually recoup your investment.

5. Deck Addition

Adding a deck increases the value of your home. Outdoor living spaces have become more desirable, especially since more people stay home for vacation (i.e. referred to as a staycation). If you make your deck and your backyard more appealing, your house will be more appealing to prospective buyers when you decide to sell. HGTV claims that homeowners recoup 65%-90% of their investment by adding a deck.

The cost of adding a deck to your home varies widely. Everything depends on its size, and how many bells and whistles you want added, like built-in seating, multiple stairs, built-in flower pots, and the size of the deck. Decks can cost anywhere from $1,200 to $10,000, or more. Again, it all depends on the design and materials used.

As you might guess, you can save a huge chunk of the cost, usually half, by doing the work yourself. Keep in mind, however, that deck construction isn’t easy. You need specific tools, such as a bandsaw, and the cost of the tools can be very expensive, especially if you don’t plan to use them again.

If you decide to hire a contractor, shop around before you choose someone to work with. Make sure you get at least three quotes, with specifics, from the contractors you interview. Thoroughly check references for the contractors before you agree to a contract or work order, and watch out for home improvement repair scams. Sites like Angie’s List can ensure you hire a contractor you can trust.

 

6. Energy-Efficient Insulation

If your home lacks basic insulation, and has old doors that let in plenty of hot and cold air, home inspectors working with potential buyers will include this in their reports. Homes that haven’t been modified with energy efficiency in mind cost more to live in and maintain.

Updating your home to save energy doesn’t have to cost a lot of money and can make your home more appealing to potential buyers. You can save $2,500 or more each year just by making some changes. For example, you can add extra insulation to your attic for $200 or less, and this small change can save you hundreds each year on your utility bill.

Seal cracks around the house to save even more money on energy costs, and to make your home more appealing to buyers. The U.S. Department of Energy (USDE) estimates that the average house has enough leaks to equal a 3×3 foot hole in the wall. You can find leaks in your home during the winter. Anytime you feel a draft or cold spot, you’re in an area that leaks air. You can purchase a thermal leak detector for $40 or less (e.g. Black & Decker TLD100 Thermal Leak Detector). These handheld devices alert you to temperature differences around your home. This then allows you to add caulk or insulation where you need it the most.

You can often discover leaks, and areas that need more insulation, in these areas:

• Around doors and windows
• Around electrical sockets and light switches
• In recessed lighting
• Around the attic hatch
• In the basement
• Anywhere ducts or wires go outside the house

Another easy retrofit is to use CFL light bulbs in all light fixtures. CFL bulbs use 75% less energy than traditional bulbs and each one saves, on average, $40 in energy over the course of its lifetime. You also save on cooling costs because CFLs emit 75% less heat than traditional bulbs. You can easily calculate how much you can save simply by counting the number of lights you have in your home.

You can also install a programmable thermostat. Most buyers expect to see programmable thermostats these days, and they can save you money. Energy Star estimates that installing a programmable thermostat will save the average homeowner $180 per year in heating and cooling costs.

If you need to replace your hot water heater, consider spending a bit extra to purchase a high-efficiency water heater. Savvy home buyers know these water heaters can really trim energy bills. If you use less than 41 gallons of water each day in your household, a tankless water heater saves you 24%-34% on your water heating costs. If you use more, count on a savings of 8%-14%.

7. Basic Updates

Basic updates add the most value to your home. Keep the paint fresh, fix the roof when it leaks, replace wood that rots, and get rid of any mold that you find. These types of chores keep your home from deteriorating over time. Buyers want a healthy, solid, safe home, and they look carefully for signs of routine maintenance.

I’ve replaced the electric wiring in my home, repainted the outside, replaced the plumbing, and repainted the interior. These projects keep my home in tip-top shape so that when I do decide to try and sell again, buyers will see a well-cared-for home.

10 Home Improvement Projects to Avoid

If you plan on moving in two to three years, don’t invest money in home improvement projects that won’t increase the resale value of your home.

Some of these low-value home improvement projects include:

1. In-Ground Swimming Pools

In-ground swimming pools cost $30,000-$75,000, depending on the type of pool installed. While installing a pool may seem like a good idea, a swimming pool makes your house more difficult to sell. Many people, especially families with small children, do not want to buy a house with a pool. Eliminating families with small children drastically reduces the number of people willing to buy your home. In addition, installing a pool increases your energy costs, and raises your homeowners insurance. A swimming pool also requires a lot of maintenance, and usually costs around $1,000-$2,000 or more to operate.

If you live in Southern California, the Deep South, or in the sunny Southwest, a swimming pool may positively impact your home’s value. You may recoup, at most, 30%-50% of your investment in a pool. If you live anywhere else, however, installing a pool may decrease the value of your home, due to the significant operating costs.

Invest in a pool if you plan to stay in your home for several years and use it often. Otherwise, a new pool can cause some significant financial headaches.

 

2. Gourmet Kitchens with High-End Accessories

While you may love your $10,000 commercial stove, and top-of-the-line Tuscan tiles, these costly additions don’t pay off when you list your home for sale. If you plan on moving within the next 3-5 years, and you want to remodel your kitchen, invest in quality, serviceable appliances that appeal to many people. In general, too much customization in a home turns buyers away.

Stay on par with your neighbors; too many high-end additions and you will own the most expensive home on the block. You can recoup a fair amount of money on a kitchen remodel, but expensive, fancy gourmet kitchens don’t help you attract that perfect buyer.

Of course, if you have a high-end home in an upscale neighborhood, then upgrading your kitchen to “gourmet” status may increase its value, since buyers expect to see a gourmet kitchen in a high-end home. But even in a high-end home, you may not recoup your entire investment in an expensive kitchen remodel when you sell your home.

3. Whirlpool Baths

It may sound fun and relaxing to take a hot bath after a long workday, but potential buyers will not pay extra for a newly installed whirlpool bath. In addition, the costs for installing a whirlpool tub can be prohibitive. Many homeowners install luxury bathtubs, only to discover they need to invest in a larger hot water tank for the tub to work properly. Furthermore, installing a tub may result in high energy bills, and additional monthly maintenance costs.

Think twice before installing a whirlpool bath. This project can cost you thousands of dollars, and if you run into problems, the costs climb even higher.

4. Sunrooms

This home improvement project goes straight to my heart; I really want a sunroom. Unfortunately, this expensive project adds very little to a home’s value. A sunroom only recoups $486 for every $1,000 spent on construction, or 49%-59% of the initial investment. In addition, glass doesn’t provide insulation, so a sunroom also raises energy costs in the winter and summer.

We ultimately decided not to add a sunroom to our home, since we know it won’t add to the value of our house. However, if you live in the South, or on the beach, where many homes have sunrooms, adding one to your home may actually help you stay competitive when and if you decide to sell. Plus, adding a sunroom to your home may make your house more attractive to a specific group of buyers, but you probably won’t recoup construction costs.

5. Expensive Landscaping

Landscaping can transform the way your house looks, especially to potential buyers. However, going over the top to create a backyard paradise, while nice, won’t add to your asking price. If you plan to stay in your home for a while, this project can improve your quality of life, especially in the warmer months. If you plan to sell your home, you won’t recoup the cost of expensive landscaping in the sale.

Instead of investing in expensive landscaping, make changes to your lawn to add curb appeal to your home. “Wow” potential buyers with a well-kept lawn, and some well-laced shrubbery or small trees. The Cost vs. Value report states that projects that boost the “wow” value of the front of the house recoup a decent percentage, depending on the changes made. Go for classy, subtle changes to the landscaping to really make your home shine.

6. Room Additions

Adding a room to your home can easily cost thousands of dollars. If you build a new master suite, you might see a 66% return on your investment. If add a family room, expect a 62% or less return on your investment. Many budget-minded buyers don’t want to heat and cool a huge house.

However, adding another bedroom to your home is the only exception to this rule. An extra bedroom makes your house appealing to a whole new group of buyers. Save money on renovations by dividing a large space with a wall, in order to form an extra room. In order to qualify as another bedroom, the room will need some other additions, including a window and a closet. You can also consider bedroom interior design ideas on a budget.

Your builder can help you navigate complicated building codes to determine the requirements for building a bedroom. If the room doesn’t qualify as a bedroom for the real estate listing, list the new space as a bonus room instead.

7. Home Office Remodeling

Most people don’t need luxury home offices. The average home office renovation costs around $28,000. You will receive about a 46% return on investment for this pricey remodel. Technology quickly becomes outdated, so investing in new wiring, and other home office components, won’t generate additional income at the time of the sale.

Most people only need good lighting, and room for home office furniture like a desk and a chair. Unless you work at home full-time, you may want to skip this upgrade.

8. Roof Replacement

We replaced our roof last year. When we listed our house, I thought we could raise the asking price by $6,500, to include the cost of the new roof. It hurt when our realtor told us we couldn’t raise our asking price to cover the cost of the new roof. A brand new roof was another feature we could add to our listing, but raising the sale price of our home was out of the question.

Roofs do need replacing eventually, and the consequences of waiting could be very costly, including ruined walls, mold, and mildew stains. Most experts say you only receive 55%-60% of the cost to replace a roof when you sell your home. Conversely, a damaged roof or an old roof may turn prospective buyers away. A new roof can make your home look crisp to prospective buyers, and help you stay competitive in the market.

9. Garage Additions

According to the Cost vs. Value report, homeowners who build a garage see a 62% return on investment. A garage addition can cost tens of thousands of dollars. Knowing that you only recoup a fraction of your investment, don’t build a new garage to increase the value of your home.

If you plan on staying in your home for a while, then a garage can greatly contribute to your quality of life. After all, you’d have someplace to park your car, and store your lawn and sports equipment. If you currently store these items under a carport or in a shed, a garage might sound like a great investment.

10. Necessities

According to real estate experts, some necessities, including a new septic system and new plumbing, do not generate more income when you sell your home. Buyers want to know that the sinks and toilets work, but most of them don’t concern themselves with the specifics.

A costly backup power generator might interest to buyers living in an area fraught with tornadoes or hurricanes. Otherwise, a new generator does not add value to your home.

Did any upgrades you made to your house pay off when it came time to sell? What home improvement projects will you work on this year?