The True Secrets of Staging

1. Declutter: Clutter can be one of the most distracting aspects of showing a house. Instead of a buyer focusing on the unique architectural details of your room, they focus in on your trinkets and trash. You don’t have to toss your decor, just put it away for now.

2. Make rooms true to their purpose: You may have your dining room set up as an office or a second bedroom set up as a craft room, but buyers need to see homes true to their purpose. They want to see the formal dining room that was advertised on the MLS. They want to see 2 bedrooms, not one and a craft room.

3. Furniture matters: Large, oversized furniture can makes rooms look smaller than they are. The opposite is true as well. Small furniture in large rooms looks disproportionate.

4. Repairs: Many buyers aren’t interested in fixer-uppers. They want homes that have been well-maintained. You may have to spend a little time and money to fix broken doors, drawers, and windows. Buyers will notice every loose board and trim piece. Fix it before you start showings!

5. Fresh flowers: It’s all about things smelling fresh and clean. Flowers add life and fragrance to a room!

6. Keep it neutral: It is much easier to imagine putting your mark on a neutral room than it is to imagine yourself living in someone else’s Hawaiian paradise. Paint is relatively inexpensive. Play it safe and pick out neutral tones.

7. Proper lighting: Good lighting makes everything look better. CFL lights in “daylight” color makes rooms look light and bright even during the evening hours. Be sure all rooms are well lit, including laundry rooms, garages, and closets.

8. Staged dining area: You can really make a room pop by setting a formal place setting. Outdoor dining spaces also look great set with placemats, chargers, and proper plates and glasses.

9. Hotel inspired bedrooms: Boutique hotels do a great job of making bedrooms feel luxurious. You can do the same by updating your bedding and having a liberal use of pillows.

10. Thorough cleaning: Clean from top to bottom. The basics mean having dishes and laundry done. Deep cleaning means cleaning carpets, removing stains, and scrubbing that bathroom until it sparkles.

Information from Realtytimes.com – 10 Secrets of Home Staging by Carla Hill

How to Pick the Right (and Best) Real Estate Agent by Asking These Questions:

1. What makes you special? You need to know what sets this agent apart from another. Are they going to provide you with superior customer service, get you the best deal on a home (if you’re buying) or highest sales price (if you’re selling)? What do they do differently and how are they successful at it?

2. Are you a solo agent or do you work with a team? There isn’t a right or wrong answer to this question. Many agents partner with someone else, or a team, and find it helpful to have the team comradery and feeling of being held accountable for their work. For example, our team has several agents, a managing partner, managing owner, transaction coordinator and marketing coordinator. All of these people work together to help the sales process run smoothly. For agents working on their own, they may just prefer to control their own schedule, marketing and finances. It’s completely up to the agent and what works best for them.

3. What can you tell me about the neighborhoods I am interested in? If you haven’t narrowed down what neighborhoods you want to look in, but have a vague idea of what you want, you’ll want an agent who is familiar with a large portion of the city or county. If you’ve already decided where you want to live, the agent you choose  should be able to tell you what homes are selling for in a particular neighborhood, what the community offers its residents (amenities, parks, schools) and should have done business in the area recently. If you really like a particular agent, but are aware they don’t know an area as well as you’d like them to, ask them to do as much research as possible or refer you to another agent in that area that they trust.

4. How many transactions did you complete last year? Be sure to ask for transactions and not specific numbers related to the homes they have sold. Most agents don’t memorize the figures such as the average square footage or median sales prices of homes they sold last year. However, they more than likely have a ballpark a figure of how many they have sold. The more they have sold, the better chance that they are good at what they do. On the other hand, keep in mind the following: if they are dominating the market, that also means that there is a better chance that less individual attention will be spent on you. Some of the best agents are not the highest producing. Look for someone who falls somewhere in the middle of what you consider selling few and selling many.

5. How often will I hear from you? Each agent and client have a different communication style. Some agents contact their clients several times a week to follow up or let them know about new inventory on the market. Some agents prefer to contact their clients only as needed. The more ready and able you are to buy or sell, the more often you’ll hear from them. If you’ve already indicated that you aren’t ready to buy or sell for another six months, expect that you’ll hear from your agent a few times between now and then…but don’t expect that they will be contacting you often until it gets closer to the six month mark. It’s also important to clarify how you like to be communicated with - either via email, phone or in person.

6. If you’re selling my home, what type of marketing do you provide? No agent can guarantee that they will sell your home, or sell it for the price that you want. They can, however, tell you what they do differently from other agents to sell homes and how effective it has been. If they tell you they will put a sign in your front yard and that’s all it will take, run quickly from this person.

7. Can you provide me with references? If you want to know what it’s like to work with this agent from the get go, it’s acceptable to ask for references or testimonials from past clients. If the agent isn’t brand new to the industry and still cannot provide you with a past client you can speak with, run quickly from this person.

8. What is your commission? Commissions are often variable, but usually fall between 5 and 6 percent. Sometimes the commission is split evenly between the Listing and Selling Agent, but more often than not, the Listing Agent will take a larger percentage of commission for the expense of marketing the property. If you are selling your home, the commission percentage may be negotiable. Just remember that you get what you pay for. If you’re paying a high commission, expect excellent service! If someone is willing to accept a 1% commission (who isn’t your family) to list your home, run quickly from this person as well.

Most agencies would say that if you want to work with the best agents out there, “just call us!” We’re not like every other agency, so this list is truly to help you find the best agent for your needs. Hey, if you’re not going to work with us, you might as well be working with someone else who knows what they’re doing!

Many times as Real Estate Agents, we see couples struggle with what amenities they individually value in their new home, over what their mate does. She wants a larger kitchen, he wants a three car garage. She wants granite counters, he wants space over the mantel for a flat screen TV. It’s not always easy to see the other person’s perspective; which can ultimately lead to a stressful and tense home buying experience for the buyers.

So on this Valentine’s Day, we have to stop and ask ourselves – what is more important: love or lovely amenities?

One might argue that material items won’t buy happiness (or love). Another might argue that material items may not buy happiness, but they sure can add to it. Either way, most would agree that a happy purchasing partner equals a happy purchasing partnership. If both parties are able to get a few of their “must haves”, then overall, it will be a happy transaction…even if there are a few disagreements along the way.

Unfortunately, even couples who have been together for several years or who have purchased homes together in the past struggle with what is most important to them. This affliction is so common that it has been given a name: The Feature Conflict.

We’re not trained therapists and we cannot always resolve quarrels, but we can help to distinguish between the “wants” versus “needs”. By showing buyers a variety of homes, it’s usually possible for each party to get a few of the “wants”…without having to compromise so much that someone becomes resentful. We’ve said it before and we’ll say it again: buying requires compromise.

When all else fails, The Houston Team recommends a very romantic Valentine’s Dinner for two. It may be just what the couple needs to rekindle their happy home buying relationship…

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According to an article from Kiplinger Finance, he does!

Based on recent statistics, housing prices are predicted to finally stop falling in the Spring. While that may not make buyers keel over with excitement, it’s a good thing for sellers and our economy overall.

The article states, “Look for prices…to drop an additional 2% or so in the early months of 2012 and then recover the lost ground by the end of the year.” However, it also states that while prices will rise by 3-4%, the growth won’t be dramatic.

We’ll try to remain cautiously optimistic, but feel that any growth is good growth!

Check out the full article for why, and how, this might affect you!

Strategically defaulting (as explained below) is never an easy decision for any family and knowing the financial and legal ramifications is important. This article by Yahoo! Finance really spells out the pros and cons of walking away and can help you to determine whether or not it’s a good option for you.

What Happens When You Walk Away From Your Home?

By Chris Taylor, 1/32/2012

It was just last summer that Charlotte Perkins made the hardest decision of her life as she and her husband Jim were caught in the vise of the housing bust.

Wanting to downsize their lives as they headed toward retirement, they bought a new house in Mesa, Arizona, before they sold the old one, also in Mesa. Their previous home had been appraised at nearly $400,000 at the height of the market, but as the housing crisis ravaged Arizona, they were told they’d be lucky to get $200,000 for it.

They were carrying a loan of $260,000 on their original home alone, meaning they were well ‘underwater,’ owing much more than it was worth. Combined with the mortgage on the new house, their housing payments had become an “anchor around our necks,” she says, threatening to gobble up all their retirement savings and leave them with nothing.

The couple made a difficult call: They would do a ‘strategic default,’ and simply stop paying the old mortgage. “We really had to wrestle with it,” said Perkins, 60. “We had worked all of our lives to build good strong credit, and we’re proud people. But it came down to, ‘Can we keep doing this?’ We had to say ‘No.’”

As the housing bust drags on, many homeowners are thinking like Perkins. Almost 11 million homes are now underwater, says financial information provider CoreLogic. Around 3.5 million homeowners are behind in their payments and another 1.5 million homes are already in the foreclosure process, according to online marketplace RealtyTrac.

As banks start to work through their backlog of distressed properties, the New York Federal Reserve estimates that 3.6 million foreclosures will take place during the next couple of years.

So, the question is: Does it make sense to keep paying a massive mortgage, knowing that it might be decades before a home regains its prior value? Or is that akin to – as columnist James Surowiecki recently wrote in the New Yorker – “setting a pile of money on fire every month”?

“I constantly get the saddest e-mails from people saying, ‘I’ve exhausted all my life savings, my retirement is gone, and now I have to default,’” said Jon Maddux, CEO of YouWalkAway.com,

a foreclosure agency that helps clients with strategic default (and charges a fee for it). “But if they had seen the writing on the wall a couple of years earlier, stopped paying the mortgage and stayed in the home throughout the whole process, they would be in a much better financial position.”

Moral Quandary

There’s a moral component to that decision, of course. People naturally feel embarrassed about breaking a contract and not paying their bills; no one wants to be branded a deadbeat. But remember that companies default on their obligations when it makes financial sense for them to do so, via the bankruptcy process. Even the Mortgage Bankers Association itself, in a flourish of irony, arranged for a short sale of its Washington headquarters.

It’s not personal; it’s business. So think of strategic default as a business decision, and do a cold-eyed cost-benefit analysis of whether it makes sense for you, advises Carl Archer, an attorney with Maselli Warren in Princeton, New Jersey.

“People think it reflects on their integrity, and say ‘I wasn’t raised this way,’” said Archer. “But the more businesslike attitude is to say that there’s a contract, there are penalties for violating that contract, and sometimes it just makes financial sense to break it.”

The penalties largely revolve around your credit record, which admittedly gets blown up in the near-term. For a few years you can likely forget about qualifying for a mortgage or a car loan. When lenders are ready to take a chance on you again, you’ll have to pay for the privilege, with stiff interest rates due to your default history.

What Happens to Scores

Charlotte Perkins watched her credit score go from a pristine 800 to 685, dropping every time she missed a payment. Credit-scoring firm FICO estimates that someone with a 680 score would see that number sink between 85-100 points after a strategic default, and someone with 780 could crater 140-160 points.

Not desirable, of course, but not the end of the world either. For Perkins, for instance, she already had a loan on her Ford Escape, and the mortgage on her new house, before she even started the default process. She hasn’t seen any changes on her credit cards since, in terms of limits or interest rates.

Now that the previous home was auctioned off in December, she can start slowly rebuilding her credit, a process that should take about seven years.

Strategic default isn’t a decision to be taken lightly, of course. If everyone did it, the housing market — and the banks — would be in much worse shape than they already are.

The following are some of the issues to keep in mind:

1. Look to it as a last resort, not a first option. Your financial troubles could be alleviated with a simple refinancing, especially since 30-year mortgage rates are near record lows of below 4 percent. If the banks are hesitant to rework your loan, look into the number of government programs designed to keep you in your home, which can be researched at MakingHomeAffordable.gov.

2. Location, location, location. Each state has its own rules and regulations regarding foreclosures, which affect both the length of the process and what you could be liable for in the end. In so-called ‘non-recourse’ states like Arizona, California and Texas, a lender cannot come after you for any deficiency (for instance, if your mortgage was $300,000 and they’re only able to sell the property for $200,000). In other states they can pursue the difference, in theory – which is why some homeowners opt to file for bankruptcy, to free themselves from those potential obligations as well.

3. Use the interim to save like a demon. If you’re in a state like New York or Florida, which require a judicial review of every foreclosure, it might be a couple of years before you actually have to pack up. In the meantime, be extremely disciplined about stockpiling cash. That will help you with a down payment for a rental, to pay for a car in cash if you need to, or to clear up other debts you might have. “Save money as if you were still paying the mortgage,” says Archer. “If you don’t, then you’ll run out of both time and money, and then you’ll be in a real tough spot.”

4. Know the tax implications. Historically, if you have a debt that’s forgiven, the canceled amount is considered taxable by the IRS. In the wake of the housing bust, though, the Mortgage Forgiveness Debt Relief Act was drafted to spare you those taxes. That legislation expires at the end of 2012, though – so if it’s not extended, you could potentially face a tax bill for the difference.

5. Talk to a professional. A bankruptcy or real-estate attorney can help you through a very tricky process. The National Association of Consumer Bankruptcy Attorneys, for instance, has a searchable database of lawyers at www.nacba.org.

“Strategic default is not an easy decision, and there’s a cost either way,” said Gerri Detweiler, director of consumer education for Credit.com. “Would you rather be $200,000 underwater, or would you rather have seven years of damage to your credit report? It depends whether you’re finally at the point where enough is enough.”

So what can you do to make your home more secure when you’re away…and even when you’re home?

Yahoo! has offered these 5 Steps to Make Your Home a No-Go Zone for Bad Guys:

1. Lock Up – When is the last time you took a look at your door and window locks? Really, how well will they hold up if someone has some handy tools and a few minutes? Consider placing deadbolt locks on your exterior doors to lessen the chances of someone being able to gain access. Also, sliding doors should have a lock system that prevents them from being pried open or lifted off their tracks. What’s an easy, temporary fix? Place the pole from a broom or mop (or some PVC pipe) in the sliding track while you’re gone.

2. Talk with Your Neighbors – If you have a good relationship with your neighbors and trust that they won’t share your information with others, let them know when you will be out of town. Exchange emergency information with one another and ask that they text or call you if something, or someone, around your home doesn’t look right. Even better, ask that they keep an eye out for deliveries made to your home while you’re gone! Nothing says “No one is home” than a week’s worth of newspapers, mail and packages piling up on your door step. Most importantly, be sure to offer to do the same for them! One quick note: unless you feel confident that your neighbor won’t misuse the trust you’ve put in them, do not give them an extra key. You never know when it could go missing…or what in your home could go missing because of it!

3. “Ruff, Ruff” – Whether or not you have a dog, pretend you do when you’re not home! How? A “Beware of Dog” sign hung on your side fence can do the trick. Want to make robbers seriously think twice? Place a large dog bowl outside your door with the name printed “Kujo” or “Killer”.

4. Keep Your Home Looking Like, Well, You’re Home! – Keep your grass trimmed and the leaves raked. Why? These are immediate signals to robbers that you haven’t been home for a while. Making it appear as if you’re home can also be as simple as leaving the TV or radio on; or adding timers to your lights so that they turn on and off at different times of the day or night.

5. Get Tech-Savvy - If you have the financial capabilities to do so, we seriously recommend installing a security system. Security companies like ADT provide the technology and will call you (as well as the cops) if your alarm goes off. While there is a monthly fee, it’s worth it if you want peace of mind that at least someone is looking out for your home while you’re away. Nowadays, you can even install your own security systems that have apps for your phone! Forgot to set the alarm when you left for the mall? No problem, just do it from your phone while you’re shopping.

For more tips on how to make your home a safe haven, visit http://realestate.yahoo.com/promo/5-ways-to-make-your-home-safer.html

This Saturday, January 21st, is the 6th Annual and 2012 San Elijo Hills 5k Marathon! The event begins at 8am, with check-in beginning at 7am.

Not much of a runner? Sign up with your family and walk the route together. What could be a better way to jump-start your way to healthy 2012?

Plus, if you can’t make the race, but would still like to participate, you can drop by the Street Fair along Schoolhouse Way in San Elijo Hills Road from 9am-4pm. There will be music, food, vendors, games for the kids and more!

If you thought it was too late to sign up, think again and hurry to it!

Join in the fun by visiting the San Elijo Hills 5k Sign Up Page.

Why More Should Buy – Never in history has the average rate on a long-term fixed mortgage been as low as it is now: 3.91% for a 30-year home loan and 3.21% for a 15-year home loan. Rates continue to hover below 4%, but there is no guarantee that they will stay this low forever. These amazing rates also make now a great time to refinance!

Why More Aren’t Buying – Too many potential buyers can’t afford the required down payment, are out of work, lack a sufficient income or are burdened by large debt loads. Home prices have sunk at least 31% since the housing boom four years ago, leaving many Americans fearful that prices have yet to bottom.

If you’re at a time in your life where it is financially possible to buy a home, and you’re still renting, think about the pros and cons:

Renting

Advantages

• More fixed costs for the term of the lease
• Not gaining equity, but not losing it either
• When the lease is up, you can just move
• There is generally less work in maintaining a home or apartment you don’t own
• Smaller amount of “up-front” cash needed

Disadvantages

• No matter what happens with the value of the home, you will never gain equity
• Limited -or no- ability to personalize your living quarters
• No tax advantage to renting. Your landlord gets any and all tax breaks that are available
• Variable costs

Buying

Advantages

• Over time, the mortgage balance decreases and equity builds, even if the value of the home does not increase
• The ability to remodel and redecorate the home to match your needs and desires
• There can be tax advantages attached to home ownership – consult competent legal and/or accounting advice for details on your situation.

Disadvantages

• Equity may go up, or down, or stay stagnant
• If you want to move, the home generally must be sold or leased to renters
• Work needs to be done by you — or paid for by you
• Generally a larger initial investment (down payment)

Why Buy As Opposed to Renting?

We’ll break it down -

1. It’s not as expensive as you might think. Mortgages are cheaper now and it’s easier than ever to get a 30-year loan for less than 4.0%; the lowest rates on record.

2. You will save on taxes. You can deduct the mortgage interest from your income taxes and real estate taxes and you’ll get a tax break on capital gains -if any- when you sell. The breaks are more valuable the more you earn; as well as the bigger your mortgage. Many people have found that these tax breaks are one of the greatest benefits to buying.

3. You can paint the walls! The home will be completely yours to renovate, paint, put in a pool….or do just about whatever else it is you’ve been dreaming to do. For most rental properties, these changes are often impossible.

4. Good rental properties are hard to come by. In many parts of the country, it can be tough finding a good rental; as many of the most desirable properties out there are not for rent.

5. It’s a smart financial investment. According to Professor Karl Case, “studies have shown that over the long-term, housing has tended to beat inflation by a couple of percentage points each year.”

6. There are plenty of options out there. The National Association of Realtors puts the current inventory at approximately four million homes, but more continue coming onto the market as banks slowly unload their inventory of unsold properties. This means great choices as well as great prices.

So think about it…but don’t think too long. Who knows how long these rates (and prices) will last?

Information taken from Derek Kravitz December 23, 2011

http://newsok.com/with-mortgage-rates-at-a-record-low-is-now-the-time-to-buy-refinance/article/3634262

So, instead of making another resolution about dropping those five extra 5 pounds, how about making a few that will really do you some good?

Top 10 Resolutions for Your Home

1. Bring the Power – Power washing is a fast, effective way to blast mold and mildew off of your home’s exterior, driveway and more. At roughly $100 for a basic pressure washer, or by renting one from a local home improvement store, the results are definitely worth the cost. Be careful, and make sure to avoid windows, light fixtures and anything else that could break under the pressure.

2. Safety First – Take the opportunity this time of year to test your smoke alarms and detectors to ensure they will all work properly and have new batteries. Remember, these are your best defense in case of fire. Also, make sure you have the recommended number of carbon monoxide and smoke detectors and that they’re placed in the right locations throughout your home.

3. Organizational Situation – With the holidays almost over, decorations must go back to their places. While removing your snowmen and Santas, take the time to de-clutter any rooms or areas that may have been neglected through the seasonal rush. Focus on one room at a time and schedule different rooms for different days.

4. Be Prepared – You never know when an earthquake or fire will hit, but waiting until the last minute to be prepared is never a good idea. Be sure to make disaster planning top priority this year and assemble a household emergency kit for your family. Have one already? Check that it is still intact and sufficient.

5. Cool Breezes – A properly maintained air conditioning system will run more efficiently, use less energy and lower your utility bills. For window air conditioning units, clean the filter and coils. With central air conditioning units, we recommend you contact a professional to inspect your system. Always be sure to change your air conditioner filters regularly, which will cut down dust and allergens in the home.

6. Energy Saving is In – With electric bills constantly on the rise, look at ways of cutting costs while still enjoying the benefits appliances bring to your home. Replacing large appliances? Watch for the Energy Star qualified rating for maximum energy savings.

7. Wet Paint – As we have mentioned in the past, a fresh coat of paint is the easiest and cheapest way to dramatically change a room’s appearance. It not only adds to your home’s appeal; it can even make it look cleaner. Try using painters’ tapes to make decorative vertical or horizontal stripes. A bold accent wall can add drama to a room.

8. Steam Therapy – They may appear clean and tidy thanks to your regular vacuuming, but carpets can absorb dust, dirt and odors that a vacuum just can’t reach. Deep clean your carpet by renting a carpet cleaner or steamer, which can be found at a number of local home improvement and grocery stores. You may be amazed at the difference it will make.

9. Closet Space – Clean out your closets and any other space packed with things that you haven’t seen or used in a while. While there, take inventory on what you have and decide if you need it or not—most likely you’ll find that you don’t. If you can’t fit into a garment, donate it. If the item is damaged, repair it or toss it. It may be easiest to have a friend or family member help you make hard choices. For the things you can part with, try turning them into cash by holding a yard sale or posting them on eBay or Craigslist. Why not use the extra money towards a home improvement project that you’ve been putting off?

10. Clean Green – If you haven’t already, swap out your harsh chemical cleansers for gentler, earth-friendly products this year. You’ll be helping the earth and it will reduce your family’s risk of accidental poisoning.

Who knows? Maybe after all of this hard work around the house, you’ll have already burned off those five pounds???

Resolution list taken from John Butzko on Michael Saunder’s Real Estate Blog – http://www.thesaundersblog.com/a-new-year-for-clean-top-10-resolutions-for-your-home/