- NUMBER1EXPERTS™ 
 |
|||||
|
|||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
 Home owner and Realtor safety is at the top of conversation lately with the Realtor attack last Friday, February 11, 2011 in Ottumwa, Iowa. The seller's home had been on the market since November with very little interest. When the Realtor received the call from a very interested prospect to view the home in the middle of the day, she did not expect to be physically detained by being tied up and threatened by knife and gunpoint. The realtor was able to email co-workers with smart phones of her situation and 911 alerted police to the residence. The two male attackers are in jail and the realtor is recovering from the incident. Real estate is considered a high risk profession according to Robert Siciliano author of the "Safety Minute: Living on High Alert." Could this have been you? Having your house for sale opens up the potential of allowing complete strangers at odd times into your home. When interviewing a real estate professional to market your home for sale, your safety should be a topic of discussion. How the agent qualifies buyers and when they allow access to your home are key points of discussion. Having a credit approval letter or photo identification from the requesting buyer prospect is a good company policy. The Supra Key lockbox system used by the Cedar Rapids Board of Realtors identifies the agent and time when the lockbox was opened. By logging the serial number of the lockbox with the home address, an email is sent to the agent and you the seller when someone enters your home. This also helps you know what time the realtor arrived so you may gauge when to return home from the viewing. If you are a seller with a vacant home, there are precautions that should be taken to protect your home and your Realtor. Call your local police department to let them know the house is vacant. They and your neighbors can monitor any suspicious activity, lights left on, or any maintenance items that need to be taken care of. Looking vacant attracts unwanted visitors. Be aware that a public open house invites anyone from buyer prospects to thieves that may want to harm you. 92% of buyers use the internet to view homes before picking up the phone to call a realtor, according to the National Association of Realtors. Being aware of the new home viewing patterns, Realtors place as many photos of your home as possible on-line. Be aware of this factor when hosting a public open house. Secure your valuables, jewelry, confidential documents such as bank and insurance statements. Home staging helps us neutralize your home to maximize the buyer pool however it also protects your family. Remove all photos that are personal especially with photos of your children. It is important to ask the Realtor you hire about their showing policy. Most people don't pick up hitchhikers, yet some agents will allow not bank approved buyer showings and public open houses thinking nothing of it. If you are going to sell your house on your own, ask for a bank credit approval. Once you receive it, call the bank to verify the accuracy. This will also reduce the potential of fraud. We have all heard the term buyer beware, now it is time to protect the seller as well. Heather Morris CRS, GRI, ABR, CLHMS, CREN Broker Associate to Skogman Realty The choice is yours. How do you want to be represented in your next real estate transaction? Before committing to a real estate relationship, make sure you understand and approve in writing the type of agency that you want. As a customer, the Realtor that you are working with will assist with the sale but not represent you. The Realtor must be honest, disclose material defects in the home, and use care in preparing your documents. As a customer you should not disclose personal confidences, negotiating strategy, or any financial information that may harm you when speaking with a Realtor. At the point you decide to move from customer to client, an agency form must be signed to protect you. As a client, the Realtor represents your best financial interest, works for you in confidence, and places your interests ahead of all others. Your private conversations and motivations in the sale are now protected. An example of specific performance that a Realtor can provide to you is any information that may help your decision to buy or sell, list to sale price ratios, absorption rates, history of the property, buyer and seller market analysis to negotiate the best price for you. Do not assume you are a client; this agreement needs to be in writing. There are many forms of agency relationships in the state of Iowa. Each real estate broker will need to disclose in writing how they will represent you. Before disclosing anything that may harm your negotiations, make sure to you know if you are a customer or a client. Best wishes in your next real estate transaction. For more information on real estate agency, please email Heather@HeatherMorrisRealtor.com. Heather Morris CRS, GRI, ABR, CLHMS Broker Associate Skogman Realty Alerting Homeowners with Septics Owning a home with a septic has a few additional responsibilities then a city sewer line. As of July 1, 2009, a DNR Time of Transfer law has been implemented called Senate File 261. Septic homeowners will want to be aware of the new regulations if they are considering selling the real estate in the next few months during freezing temperatures. Vacant properties and homes sold when weather does not permit the inspection will be affected financially. The regulation is called Time of Transfer because the recorder will not record the deed until the septic inspection has been done with repairs that may be needed completed or escrowed. The septic inspection must be completed by a certified inspector with a DNR certificate. Once completed, the inspection will be valid for two years. For real estate transfers when weather does not permit the septic inspection, a DNR recorded escrow agreement can be recorded with the groundwater hazard statement. The buyer must have a binding contract with the seller to have the inspection and any repairs if needed completed within a reasonable time. If you are the seller, an escrow agreement for the septic inspection and possible replacement may take away or diminish the proceeds of your sale. To protect your proceeds at closing, have the Time of Transfer required inspection before winter arrives or the property becomes vacant. If the property has not been occupied for thirty days, additional procedures to test the septic are required to inspect the distribution box and leach lines. This will cost the seller more money. After sixty days of vacancy, a septic meeting the Time of Transfer will not be accepted until a resident occupies the property for thirty days prior to the testing. Exclusions to the Time of Transfer septic regulations are real estate sales by court order, foreclosure, estate, transfer from marriage or divorce, and transfer between joint tenants in title. Senate File 261 is intended to bring current septic and leach fields up to code requirements protecting our groundwater. Heather Morris CRS, ABR, GRI, CLHMS Broker Associate to Skogman Realty Recently there has been allot of not favorable media attention nationally, from local broadcasts, and paper distributions reporting the negative number game related to housing. I still remember when I got into real estate in 1993, my mentors told of a time in the 1980’s with double digit mortgage rates. At our company sales meeting, an article in print was presented encouraging home ownership now that mortgage rates had fallen to single digits. Negative and positive media attention does affect consumer confidence and housing trends. I have been told I will not cheerlead my way out of this market, however I have a positive outlook for our local real estate market and have strong reasoning to the fact. At the NAR (National Association of Realtors) national convention in October, several credible government, banking, and real estate professionals agreed that the factors to buy real estate have never been better. The conclusion to the conference was that each real estate market will rebound when employment does. The national unemployment rate through third quarter 2010 is 9.6%. Our Cedar Rapids, Marion, and sister communities share a dramatically lower unemployment rate then this. An article published in October 2010 by Kurt Baderhaussen, Forbes Magazine stated, “Job outlook isn’t so grim and strong economic growth is on the horizon, Cedar Rapids is expected to see employment expand 14.2% over the next three years according to research from www.moodyseconomy.com. The article continued by speaking highly of our strong employment and higher education values. Another conclusion realized amongst the real estate community is that the increase in house prices in past years was not realistic or sustainable. Today’s homebuyer needs to have secure employment and good credit. Homeowners need to own for a few years and not count on their house as a quick savings plan. Several investors have said with the correction of home prices and a good supply of inventory, “buy now and buy allot.” If we buy stocks when the market falls why not buy real estate when the same thing happens? All markets are reciprocal and the pendulum has shifted to benefit home buyers. Locally, a market balance has already taking place in several price windows of homes. Today’s buyer benefits from historic low mortgage rates, affordable house prices, and a good selection of inventory. Numerous local incentives are offered such as the affordable housing 25% down payment assistance, the $6,000 first time local home buyer grant, $2,500 IFA (Iowa Finance Authority) grant, and the extension of the tax credit bill for qualified veterans. If you are a seller over the median sales price for our area or considered a luxury home, patience or tolerance must reside when you look at days on market. Perhaps a refinance to a lower mortgage rate is an option in lieu of selling today. For nay sayers relating to our local real estate market, please move aside for a more positive outlook to help consult, educate, and listen to today’s buyers and sellers. Our community bond has survived the farm crisis, double digit mortgage rates and predatory lending practices, and the most recent 2008 flood identified as a national disaster. Market correction is not a bad market, just a shift of balance. Consider consulting a full time Realtor and mortgage professional about your position in today’s market. Heather Morris CRS, GRI, ABR, CLHMS, CREN Broker Assocatiate with Skogman Realty With nearly 80 million baby boomers in the US as the largest generation, we must consider the impact on real estate their children will have. Generation Y, also known as the millennial, were born 1980-1995 and are currently 14-29 years in age. There will be a wave of change in real estate practices, home building trends, and communication styles as these new homeowners enter the real estate market. The National Association of Home Builders estimates the average age of the first time home buyer to be thirty three years of age. (We all know a family who still has their thirty-ish kid still living at home!) Generation Y is on the verge of lowering that statistic. 2009 home sales have been influenced by Generation Y purchasing real estate sooner due to low interest rates, attractive or regressing home prices, and the $8,000 first time home buyer tax credit. Generation Y is changing the expectations of Realtors and home buying trends. They want information, answers, and quick responses. The desired form of communication is usually email and text. Gen Y desires on-going communication and want Realtors to be a source of information, not a barrier to it. They will search for homes on various web sites, walk-through the homes interior on-line called a virtual tour, Map Quest the distance to work and social importance’s, and run their monthly house payment before requesting to “see” the house or a Realtor. This process is much different then the home buying practices of their baby boomer parents. Generation Y lifestyles are quick paced, technology friendly, and social driven. Town homes, condominiums, and urban loft lifestyles are more attractive then a single family home with a lawn to mow. They expect the features in their home that they grew up with. Examples include the latest technology, energy efficient products, and a computer solution area. They want a smaller more modern home. Amenities may include stainless steel appliances, hardwoods and tiles, and granite or designer counters. This high tech generation demands commitment and skill. Communication styles continue speeding up and they want Realtors to do the same. To date in 2009, the National Association of Realtors reports a loss of over 70,000 licensed Realtors. This drop out has confirmed the importance of Realtors commitment and the value of their service, skills, and knowledge. The evolution of real estate provides more information to the consumer faster. Heather Morris CRS, GRI, ABR, CLHMS Broker Associate / Skogman Realty Soon we will be closing up winter and moving towards warm weather, the smell of fresh cut grass, and spring cleaning. Keeping up on home tasks as a healthy practice makes the preparation to sell easier. Today's sellers find their house in a beauty contest. May the best house win the buyer. Start with landscaping and curb appeal. Capture photos as fresh buds arrive on perennials, shrubs, and flowering trees. Seasonal photos help sell homes with our changing climate. There have been many homes sold this winter that could have been showcased with spring photos instead of grey snow covered lawns. Spruce up decks with a power washer and add a fresh coat of seal and stain. While power washing, the garage could use cleaned up too. Moving inside the home, let there be light. Clean windows and the interior sills that may have dirt or chipping paint. Grab a paint brush and touch up nicks and drywall corners. Caulk counters that may have pulled away from drywall and run a dust mitten along trim, door jams, and the ceiling fans. Changing the furnace filter, replacing batteries in smoke detectors, and replacing light bulbs with energy efficient bulbs keeps you safe and saves a few dollars. Perhaps this is a good time for an energy audit by Mid American Energy to see if additional insulation or suggestions can be made to lower utility costs. To really clean your home and spirit, de-clutter and downsize. Cleaning closets allows you to donate items to organizations that help others not as fortunate and those affected by unemployment. Making spring cleaning an annual event helps you stay on top of maintenance and updates your home may need. Clean, efficient, and de-cluttered homes attract more buyers when you make the decision to sell. Pride of ownership is reflected and you only have one chance to make a first impression. Heather Morris CRS, ABR, GRI, CLHMS Broker Associate with Skogman Realty Two new federal lending regulations effective July 30, 2009 will tighten the belts on banks, brokers, and credit unions. In an attempt to protect home buyers from predatory lending practices, the HERA and HOEPA laws were passed. HERA, the Housing and Economic Recovery Act and HOEPA, the Home Ownership and Equity Protection Act will provide more information to home buyers prior to signing a mortgage. When interviewing lenders for a mortgage, have them provide a GFE, Good Faith Estimate and a TIL, Truth in Lending Disclosure. The Good Faith breaks down the out of pocket cost and monthly payment for the home. The Truth in Lending Disclosure provides the actual cost of borrowing the money over the term. The Final Truth in Lending Disclosure and costs must be given to home buyers 4 business days before closing or sooner. The APR, annual percentage rate will now requires the lender to disclose their fees and all third party costs placed on the closing statement. The appraisal process has also been modified to protect you. The lender you choose will not have knowledge to who will be selected to verify the value of your house purchase. The appraiser will review the last six months of similar closed properties to establish value. Any appraisal required repairs must be negotiated between buyer and seller, work completed, and re-inspected prior to closing. The new lending regulations are designed to help you avoid surprises at the closing table. Comparing lenders payment options with the Good Faith Estimate, determining the true cost of money with the Truth in Lending Disclosure, and tightening the appraisal process to determine a more accurate value, and providing the final numbers before closing all make you a smart home buyer. The state of Iowa is a leader in consumer protection. Originating your new mortgage in Iowa through a local lender you trust is another smart buyer decision.  Several times a week I will have someone ask me the difference between assessed and appraised value? Should they be the same or should one be higher or lower then the other? How does that affect me? These two words are commonly mistaken for each other and both are used frequently when relating to a homes value. As a homeowner, or soon to be owner, please make sure you understand the difference because it does affect you financially. The assessed value of a home is the valuation placed on a property by a public tax assessor and is the basis for property taxes. If you would like to keep the property taxes low, you would want your assessed value to be as little as possible. There are many cases where the assessed value of the home is higher then what the home could actually sell for. If you find this is true, please petition the assessor for a revised evaluation to lower your taxes. The assessed value of a home is not related to the fair market value of a property. The appraised value of the home is determined by the purpose of the appraisal. When purchasing real estate, the lender will want to make sure the amount you paid for the property is fair and current with market trends. The bank will hire an independent appraiser to protect themselves and the buyer from paying too much for the home. Buyers would typically like the appraised value to be what they offered for the home or higher. This new home purchase appraisal is related to the fair market value of the property. Buyer and seller beware however, if you have a refinance appraisal, this was not to determine fair market value. The re-finance appraisal is to determine the available amount of your new loan. Most owners of real estate want the assessed value low and the appraised value high. It is a good financial decision to know the value of your home and if you are taxed properly. A professional real estate agent can help you with questions you have about the fair market value of your property or the taxable assessment. I just keep thinking, who is buying all these condos? The new construction condominium is outperforming single family home sales and driving a strong portion of our local economy. What does a condo buyer look like and what do they do? Three demographic driving forces increasing sales are the e-life, security, and luxury buyers. The e-life, a convenient no hassle lifestyle for our on the go employee. The workforce of today is expected to travel to do their job. What about the lawn, the snow storm, the maintenance the house needs? The condominium lifestyle makes this convenient and cost effective by eliminating all of these concerns with a monthly “take care of it” fee. What about security buyers? Perhaps living on your own is not as comforting as you would like. Safety may be a concern and having someone a step away could ease your mind and help you sleep a little easier. Many buyers who have medical concerns also feel more secure knowing they have someone close if there is an emergency or a need. Condominium living may be a resource that is tax exempt instead of a nursing care facility. Luxury is a word that is rarely used in the same sentence as condominium. Today’s single family home market is tough! Homes need repairs, they are not efficient, and in may price ranges have environmental concerns that are expensive to remedy. New construction condominiums are energy efficient, the latest building materials, functional to today’s lifestyles, and have real estate taxes in arrears. You can see why they may be considered “luxury.” These demographic changes in the way people live today broaden the functionality of today’s condominium demand. This trend is here to stay.
Did you ever wonder why some homes sell faster and for more money then yours? One factor might be the other home was “staged” properly. Homes that have been prepared to sell often have more buyer demand regardless of the market conditions. Home staging has become more popular with owners, Realtors, and an increasing segment of television media. Staging a house to sell maximizes the emotional and décor sense of the largest buyer segment in the real estate market. As a homeowner, you may consider a few options and levels of staging. The least expensive, free, is to ask a non-biased friend or co-worker to walk through the house as if they were a potential buyer. They can give you their opinion and point out ideas to de-clutter. Professional real estate agents are very familiar with the staging concept and can provide references for painters, plumbers, fix it vendors, and potential buyers concerns. Realtors know the market and the condition of the homes currently for sale. Home staging vendors are also available for a consulting fee or hourly rate. The amount spent in hiring a professional home stage company is well spent when you arrive at the closing table! The luxury service of hiring an interior designer to vignette your home is the highest level of staging. An interior designer may suggest wall colors or replacing or moving furniture to create a more emotional appeal to buyers. A few tips when preparing your house for sale is to neutralize wall and flooring colors. De-clutter all kitchen counters, bath vanities, dressers, and remove the hall of fame from your refrigerator. We want the buyer to picture themselves there, not you. Ask someone who does not live in the house if there are any smells or dirty items they may see that you may not. Storage bins, closet organizers, and shelves create more sense of space. Remember, buyers are buying SPACE! Since you are moving anyway, start packing. One third less personal property and open closet space will make your house seem larger. For a quick sale and more money, consider the level of home staging that best suits you. References are available upon request. On line shopping saves you time and allows you to price compare in your convenience. Should your home mortgage be any different? Local buyers are finding the traditional safeguards are not applicable when shopping on-line. When shopping on line for your new home loan, research the following questions before making your decision. Is there a pre-payment penalty? The state of Iowa allows a consumer to pre-pay principle or payoff a loan without charges or cash-out fees. What if your internet mortgage is originated outside of Iowa? Many homeowners have their down payment or equity lost by these “surprise” fees when selling down the road. Does the good faith estimate include title insurance or the abstract extension fees? Iowa is the only state to have an abstract requiring an attorney’s opinion for clear title and title insurance. Make sure the closing cost fees quoted are all-inclusive for your area. Another traditionally undisclosed fee is the e-closing fee. Your internet mortgage lender will need a third party to receive and present all of your closing documents for you to sign. Would this internet mortgage meet Fannie Mae guidelines or is it Sub-prime lending? Sub-prime lending has created a new buzz word in the real estate industry, the ultra stretched consumer. Stretching your mortgage has become easier with forty year mortgages, adjustable rate mortgages (aka ARM loan or teaser rate) and stretched debt to income ratios. Compare your good faith estimate with a local lender that you can trust. Referrals by a professional real estate agent or closing company are excellent sources for lenders. Heather Morris Just in case you didn’t know, it’s a great time to buy a house! Whether you are renting, refinancing, trading up, or building, many factors are in your favor. Recent changes in home financing, tax benefits, and investment opportunities are keeping the real estate momentum moving forward. “Free Money” is one incentive for purchasing your first home. As a first time buyer you may qualify for local or state grants that assist with down payment and closing costs. With good credit, a down payment is not even needed to buy a home. Times are changing and the benefits to owning real estate keep getting better and easier. The stretch loan mortgages such as the interest only and the forty year loan are lending tools for a diverse buyer demographic. Need I mention that only a handful of times in the last thirty years had the fixed rate mortgage been this low? Great financial news for new and current home owners is the recent change in private mortgage insurance. For the first time in history, you may qualify to deduct your monthly mortgage insurance from your taxable income. When applying for your new home loan, ask your lender to prepare at least two Good Faith Estimates for your financing options so you can make the best financial choice for you. Have you ever considered a second home? If you qualify, the gain you would have from a second residence is tax exempt as long as you reside in it for two out of a five years. With many “snow bird” markets experiencing a pull back in pricing, this might be your time. In 2006, the National Association of Realtors reported that for the first time in history, the median sales price for a condominium was higher then the single family home. From first time buyers to secondary residences, it is your time to buy real estate. Lending options, home loan rates, and tax benefits are all in your favor. Make sure to review all of your financial options in your next real estate transaction. It may be easier then you think! “I’m so relieved, “says the seller, “no open houses!” So many times, we clean the house, pack up the kids and pets, and leave for the day to find that nobody came to the open house other then our neighbors and co-workers. Technology continues to change the way buyers research, educate, and buy real estate. Homes being sold today are found on multiple web sites with buyer benefit links to answer every and all questions buyers may have. An average of three out of four buyers view homes on line before calling a real estate agent or lender. The virtual open house is an amazing web marketing tool benefiting both buyers and sellers. One of the benefits sellers receive from an IPIX virtual tour is results based marketing. Realtors using this tool provide seller service reports with the number of “hits” compared to “ghost” buyers touring their home. Hits represent the amount of buyers who matched their personal wish list to your home. Ghost buyers are the buyers who download your virtual home tour and viewed links offered on your home. These buyer prospects can run a monthly payment, view your property disclosure, compare school statistics, and map quest options. As a seller, this is a hassle free way for buyers to view your home. Safety has also become an issue and hosting virtual open houses protects your family and assets. Non-qualified buyers can be eliminated and qualified and motivated buyers can view your house with a professional real estate agent. Buying real estate has also been made easier and faster because of the virtual tour. You can now search for a home on YOUR time and have your privacy respected. You receive immediate information with no down time. Buyers are now in the driver seat searching their price window, areas, and features they want in their home. Buyers can email or call the real estate agent for any questions they may have and schedule a home viewing. Being able to qualify themselves and the homes they want to tour saves buyers, sellers, and realtor’s time. With virtual tours, highly qualified real estate agents are meeting the needs of buyers and sellers more efficiently then ever before. Isn’t it frustrating when you are looking for answers and you can’t find them? I’m sure many of you have drove past a home for sale and wondered how much it was? Should you go look at it? What do you do? Back in the “day,” you would call the Realtor, the keeper of the keys. Today’s buyers and sellers are changing the real estate industry in how they search for homes and answers. Searching the internet has become the preferred shopping guide for real estate. The internet does not always answer your questions and can still be frustrating. What web site do you search first? Is the home still for sale? What if there was a superstore for home sales? This is IDX! The Internet Data Exchange link allows Multiple Listing Service home data to be shared publicly. Each real estate broker who chooses to participate must sign an IDX agreement with their local Board of Realtors. The IDX opens the door for consumers to search one site, all homes. Just a few years ago, when the MLS offered to share listing data with members, many Realtors and Brokers worked diligently to keep the Multiple Listing Service home data from being posted illegally on-line. Look how we’ve progressed form those days! The main advantage of the IDX is to provide buyers and sellers a chance to see all properties available in the market on one web site. You may ask about Realtor.com? Not all homes are posted to this website because there is a fee to the real estate broker and agents. Many agents choose not to spend the money to feature homes and the level of exposure on-line must be purchased by the agent. The IDX link for the Cedar Rapids Association allows people searching the internet to have up to date information with a direct link into the Multiple Listing Service Realtors use. A web page can be created by a professional real estate agent for you to view all the homes that match your search criteria and new listings as they hit the “hot sheets” with a property disclosure download. This link is your ability to have accurate and up to date home data when YOU want it. Skogman Realty has signed the IDX agreement and will share their entire home inventory publicly. For an IDX example, you may visit HeatherAhrensRealEstateTeam.com and click the Search the MLS tab. Homeowners and Radon So, if you can’t see it, taste it, or smell it, why do I care if my house has radon? Homeowners today are wondering why there is so much concern with radon testing. In 1998, the National Academy of Sciences (NAS) released a report that 12% of all lung cancer deaths are linked to radon. Radon has been determined the second leading cause of death due to lung cancer.Radon is a cancer causing radioactive gas in the air created from the natural break down of uranium in the soil, rock, and water. Radon can seep from the ground into your home through floor drains, sump pits, concrete cracks and other small spaces. These radioactive particles can attach to your lungs when inhaled causing health problems. I recommend you know the radon level in the home you live in. The EPA suggests reducing radon levels in your home to less then four picocuries per liter (pCi/L). The age of your home is not relative A radon test kit can be purchased for about twenty dollars or a radon specialist can be hired to test. Once radon has been detected, a mitigation system can be installed to lower the radon level to recommended EPA standards. When buying or selling real estate, a discussion of radon testing is recommended and an option on most real estate purchase contracts. Feel free to email me at hahrens@skogman.com with questions or concerns you may have about radon and your home. You can also research additional information at www.epa.gov. Heather Morris CRS, GRI. ABR, CLHMS Skogman Realty The choice is yours. How do you want to be represented in your next real estate transaction? Before committing to a real estate relationship, make sure you understand and approve in writing the type of agency that you want. As a customer, the Realtor that you are working with will assist with the sale but not represent you. The Realtor must be honest, disclose material defects in the home, and use care in preparing your documents. As a customer you should not disclose personal confidences, negotiating strategy, or any financial information that may harm you when speaking with a Realtor. At the point you decide to move from customer to client, an agency form must be signed to protect you. As a client, the Realtor represents your best financial interest, works for you in confidence, and places your interests ahead of all others. Your private conversations and motivations in the sale are now protected. An example of specific performance that a Realtor can provide to you is any information that may help your decision to buy or sell, list to sale price ratios, absorption rates, history of the property, buyer and seller market analysis to negotiate the best price for you. Do not assume you are a client; this agreement needs to be in writing. There are many forms of agency relationships in the state of Iowa. Each real estate broker will need to disclose in writing how they will represent you. Before disclosing anything that may harm your negotiations, make sure to you know if you are a customer or a client. Best wishes in your next real estate transaction. Heather Morris CRS, GRI, ABR, CLHMS If you’ve been sitting on the fence waiting for the right time to get into the real estate market, now is your time! There are many factors in your favor that get your more house, cheaper payments, and more tax deductions. This sounds too good to be true, let me explain. Have you looked outside lately? In our real estate market, temperatures can range from freezing cold to a high summer humidity with temps in the ninety’s. A maintenance free exterior is a key factor in the appreciation of your home’s value. An age old question in the real estate business is “If I remodel to meet my needs, will I get my money back?” The answer to the question is case by case. Home-owner motivators to remodeling usually include lot characteristics, school district, work commute, and family. Home-owner motivations to relocating are diminishing returns, functional obsolesce in the home, and construction and energy efficiency updates. Winter thaw and spring rains have caused home-owners grief with water entering their homes. I have a few recommendations for protecting your home and valuables from water. A Return to Traditional Lending In recent weeks, there has been another media frenzy causing a lot of homeowners concern. The latest changes in mortgage lending have many home owners and potential home owners asking the question, how will this affect me? There will be very little change for buyers who have good credit, a down payment, and stable job history. “Housing and Economic Recovery Act of 2008” We have all heard the buzz about economic recovery and would like to know, how does it affect me? A brief summary of this new legislation regulating Fannie Mae, Freddie Mac, and the Federal Home Loan Banks may answer a few of your questions.
A more recent concern to all homeowners is the vacant homes popping up in our neighborhoods. The market shift has made us very aware that the house we live next to or kids walk by, could be abandoned. Abandon houses raise red flags to potential buyers and neighbors.
There are more concerns when buying a vacant house. A whole house inspection should be completed to help you avoid owning the money pit. Prior to all inspections, make sure all the utilities are turned on. De-winterize the property if purchasing in cold months. Hire a wood destroying insect report to learn if there have ever been termites, carpenter ants, or other pests that cause structural damage. If there has been a lot of damage, require the seller to provide a structural inspection. Always test for radon gas. Radon is the second largest cause of lung cancer. You may not be concerned about the radon level, however when you sell it is most likely your buyer will want a radon test. If the level is above EPA standards, it’s now your mitigation expense.
Neighboring a vacant home also has concerns. I never thought this would happen, however I was recently called to one of my sale pending listings to find a squatter living in the house. I understand neighbors are not outside due to the cold weather but didn’t anyone notice? When you learn of a vacant house in your neighborhood, find out why? Communicate with the owners or the neighbors about safety of the house. You may want to alert the police if you see unusual activity. Vacant homes are also targets for illegal activities. If the property has a real estate sign, call or stay in touch with the listing agent. Foreclosed homes are traditionally vacant for one year allowing the owner to redeem the property. Neighbors beware is the best policy.
Legal and clear title is usually stronger possibilities with a vacant house. Estates, foreclosures, short sales may delay the closing for legal reasons. The CR Board of Realtors listing and purchase agreements require the seller to release all liens and title concerns so the buyer has a CLEAN deed. Use a professional Realtor or attorney in preparing the purchase contracts for vacant houses.
As vacant homes become more prevalent with the market shift, let’s be AWARE for our own personal safety.Return to top
Heather Morris CRS, ABR, GRI, CLHMS Broker Associate/ Skogman Realty Are you stimulated? To be stimulated is defined as a rouse to activity or heightened action, creating excitement.This is the plan to better our economy with the “American Recovery and Reinvestment Act of 2009 passed in February. This consumer benefit encourages us to move money by purchasing real estate, updating our home with energy efficient components, and is assistance to many distressed neighborhoods and home owners.Will you be stimulated by any of these opportunities? First time home buyers benefit with either 10% of their home purchase or $8,000 tax credit (refund) for homes purchased January 1, 2009 through December 1, 2009.Buyers are using the tax credit in many ways.Paying student loans, auto loans, and credit cards to lowering monthly debt.Another option amongst new home owners is to build up savings or replace the down payment they spent to buy their new house. Could a remodel or energy efficiency update be a consideration in the new future?To promote green and energy independence, 30% tax credit on new furnaces, windows, insulation, weatherization, and other efficiency updates.You must verify the components you agree to put in your house meet the requirements of the energy bill.This benefit for updates in your home is available through 2010.Energy efficient updates will save you monthly utility costs and be a benefit when you decide to sell. The stimulus bill also increases FHA loan limits to $271,050.FHA loans are government backed mortgages allowing fewer down payments, a low fixed rate term, more flexibility with your credit score for qualifying. Neighborhood stabilization for depressed markets, foreclosure assistance, and low income housing grants are available to balance home values. Our local real estate market will benefit due to the increase of buyers purchasing homes.For a summary of “The Recovery and Reinvestment Act of 2009” visit our e-newsletter at www.heathermorrisrealtor.com. Heather Morris CRS, ABR, GRI, CLHMS
Alerting Homeowners with Septics Owning a home with a septic has a few additional responsibilities then a city sewer line.As of July 1, 2009, a new DNR Time of Transfer inspection has been implemented called Senate File 261.Septic homeowners will want to be aware of the new regulations if they are considering selling the real estate.Vacant properties and homes sold when weather does not permit the inspection will be affected financially. The new regulation is called Time of Transfer because the recorder will not record the deed until the septic inspection has been done with repairs that may be needed completed or escrowed.The septic inspection must be completed by a certified inspector with a DNR certificate.Once completed, the inspection will be valid for two years. For real estate transfers when weather does not permit the septic inspection, a DNR recorded escrow agreement can be recorded with the groundwater hazard statement.The buyer must have a binding contract with the seller to have the inspection and any repairs if needed completed within a reasonable time. If you are the seller, an escrow agreement for the septic inspection and possible replacement may take away or diminish the proceeds of your sale.To protect your proceeds at closing, have the Time of Transfer required inspection before winter arrives or the property becomes vacant. If the property has not been occupied for thirty days, additional procedures to test the septic are required to inspect the distribution box and leach lines.This will cost the seller more money.After sixty days of vacancy, a septic meeting the Time of Transfer will not be accepted until a resident occupies the property for thirty days prior to the testing. Exclusions to the Time of Transfer septic regulations are real estate sales by court order, foreclosure, estate, transfer from marriage or divorce, and transfer between joint tenants in title. Senate File 261 will be implemented on July 1, 2009 to bring current septic and leach fields protecting our groundwater.For additional information on this new septic regulations or references of DNR certified inspectors email heather@skogman.com or call 319-350-7653. Heather Morris CRS, ABR, GRI, CLHMS The Shift – Stimulated Markets
A cooperating effort between the Federal government, NAR (National Association of Realtor) and increased FHA loan limits gives people the tools they need to buy today.The Federal government provided a needed stimulus for real estate sales for the bread and butter market; the market recognized as the median home values.The $8,000 first time buyer tax credit paired with historic low mortgage rates have created numerous new homeowners and move up buyers.The trickle-up of home sales in the median sale price have converted sellers into buyers for more expensive homes.
Second Home Market 09 Remember when second homes were for rich people.Today’s market conditions have opened the door for the savvy investor, baby boomers, and land lovers to get away.If you have ever considered a lake home, cabin, or flying south for the winter, now is your time! With nearly 80 million baby boomers in the US as the largest generation, we must consider the impact on real estate their children will have. Generation Y, also known as the millennial, were born 1980-1995 and are currently 14-29 years in age. There will be a wave of change in real estate practices, home building trends, and communication styles as these new homeowners enter the real estate market. The National Association of Home Builders estimates the average age of the first time home buyer to be thirty three years of age. (We all know a family who still has their thirty-ish kid still living at home!) Generation Y is on the verge of lowering that statistic. 2009 home sales have been influenced by Generation Y purchasing real estate sooner due to low interest rates, attractive or regressing home prices, and the $8,000 first time home buyer tax credit. Generation Y is changing the expectations of Realtors and home buying trends. They want information, answers, and quick responses. The desired form of communication is usually email and text. Gen Y desires on-going communication and want Realtors to be a source of information, not a barrier to it. They will search for homes on various web sites, walk-through the homes interior on-line called a virtual tour, Map Quest the distance to work and social importance’s, and run their monthly house payment before requesting to “see” the house or a Realtor. This process is much different then the home buying practices of their baby boomer parents. Generation Y lifestyles are quick paced, technology friendly, and social driven. Town homes, condominiums, and urban loft lifestyles are more attractive then a single family home with a lawn to mow. They expect the features in their home that they grew up with. Examples include the latest technology, energy efficient products, and a computer solution area. They want a smaller more modern home. Amenities may include stainless steel appliances, hardwoods and tiles, and granite or designer counters. This high tech generation demands commitment and skill. Communication styles continue speeding up and they want Realtors to do the same. To date in 2009, the National Association of Realtors reports a loss of over 70,000 licensed Realtors. This drop out has confirmed the importance of Realtors commitment and the value of their service, skills, and knowledge. The evolution of real estate provides more information to the consumer faster. Heather Morris CRS, GRI, ABR, CLHMS The extension of the tax credit for first time home buyers and new legislation for current homeowners passed on November 6, 2009 will stimulate the Cedar Rapids, Marion, Robins, and surrounding community real estate markets. It is important for you to understand the qualifications, benefits, and concerns regarding whether you qualify for the tax credit before writing a purchase contract. First time home buyers (defined as not owning real estate for the last three years) with an income of less then $125,000 qualify for the maximum tax credit of 10% of the purchase price or $8,000. A partial credit is available for the first time buyer with an income $125,000 to $144,999. Single tax file returns with income $145,000 do not have any benefits. For joint returns, the maximum credit will be provided if less then $225,000 is earned, partial up to $244,999 in income and no benefits with income over $245,000. The existing home owner tax credit is for current owners owning a primary residence that was occupied 5 consecutive years out of the last 8 year period. The new house does not have to cost more then the old house. The tax credit for current owners is $6,500. The maximum purchase price that qualifies is $800,000. This is over four times the median home price in Linn, Johnson, and Benton County creating an incredible opportunity for move up buyers. Low fixed interest rates create a winning equation for both home buyers and sellers. All offers must have a purchase contract date of April 30, 2010 or sooner with a closing date of July 1, 2010 or sooner. A key change to the 2008 tax credit is that there is not a repayment penalty unless the house is not owner occupied during the first three years of ownership or sold. Another modification to the tax credit is seller financing for contract home sales where the seller holds the title. The IRS has identified 7 qualifications for contract sales available on their web site or you may seek a tax professional. Verifying your eligibility by seeking a tax professional is important. Blood relative sales, non-resident alien sales, non-owner occupied sales are a few conditions that void eligibility. For a market conditions report of home sales and a buyer counseling interview, seek a professional Realtor. Heather Morris CRS, GRI, ABR, CLHMS
NUMBER1EXPERT® © Homes Media Solutions™, a division of Dominion Enterprises and/or its clients. All rights reserved. All information deemed reliable but not guaranteed. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
 |
