Site to See: Federal Reserve's 'Credit Reports and Credit Scores'

There's a new source of credit score and credit report information in town and it doesn't try to sell you related services or use content to generate ad revenues.

While the federal government would like to sell you on the idea that it's on your side -- and convincing you your government is working for you often does take a bit of a hard sell these days -- the Federal Reserve's new credit score and credit report web site is worth the taxpayer dollars that financed it.

"Consumer's Guide to Credit Reports and Credit Scores" is a compendium of advertisement-free credit report and credit score content that earns the Feds a high score.

Among independent sources of like information, perhaps only Consumer Reportsand AARP offer similarly robust, independent information without a sales pitch.

Along with practical answers to questions about credit reports, credit scores, and the importance of protecting your credit history, the Fed's free online guide explains the contents of your credit report, tells you how and when a credit score is used, and discusses the role of credit bureaus in collecting and sharing your credit history.

You need this information because it can make or break you when it comes time to get a mortgage, personal loan, insurance, a job, or whenever some entity needs to determine if you are creditworthy.

If you are approved for financial services, your report and score also determine home much it's going to cost you to obtain credit and other financial services.

The Fed's web site reveals how you can improve your credit score (and lower credit costs) and it offers step-by-step instructions to help you correct an error on your credit report -- not an uncommon job for credit-active consumers.

What's more, the site couldn't have gone live at a better time.

Lenders are squeezing consumers for the best creditworthiness ever, just as the Feds are rolling out two related landmark regulatory overhauls for the greatest consumer protections ever and long overdue finance industry scrutiny.

Your credit standing is at stake.

One is the "Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010"(known as "Wall Street Reform"), which is heavy in mortgage lending rules.

Good credit scores are crucial to landing a mortgage, getting your mortgage refinance and getting a home equity line of credit or second mortgage.

The other regulatory newbie is the "Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009" and the site is embedded with related information:"New Credit Card Rules Effective Aug. 22, 2010" and "New Credit Card Rules Effective Feb. 22, 2011" to keep you apprised.

The new credit card rules heap on new and extensive disclosures credit card issuers must reveal to you and they limit the fees, interest rates and other charges credit card issuers can levy.

But it's still up to you to do the right credit thing and the site offers some pointers.

For example, to improve your credit score:

• Get copies of your credit report -- then make sure information is correct. The site tells you how.

• Pay your bills on time.

• Understand how your credit score is determined. The new site tells you.

• Learn the legal steps to take to improve your credit report. Again, the information is online.

• Beware of credit-repair scams. The web site keeps you up to date.

Also to get the most out of your credit card, the site advises:

• Again, pay on time. Don't be a deadbeat.

• Stay below your credit limit. How much below? Visit the site.

• Avoid unnecessary fees. You'll learn online which ones to avoid and how to avoid them.

• Pay more than the minimum payment. The more the better.

• Keep tabs and watch for changes in your credit card terms. Credit card companies continue to look for loopholes so they can take you to the cleaners -- for a fee.

The site is new and fresh with the latest government regulations dovetailing into your responsibilities, indicating it's not just up to the law to make sure creditors do the right thing.

You pay taxes for this kinda information. Pay attention.

Bookmark it.

"Site To See" is a DeadlineNews Group series of reviews of content-heavy websites deemed unique, consumer-friendly, informative and easy to use.


Written by Broderick Perkins
December 30, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Mortgage Advice: What is an ARM?

For those new to real estate, there are a hundred different terms to learn. It can be overwhelming, but if you take it a term at a time, you'll be just fine.

In today's column we are going to examine the term "Adjustable Rate Mortgage," better known as an "ARM."

There are very few buyers in the market that can pay for a house outright with cash, thus avoiding a mortgage loan. If you are one of those lucky few, congratulations! You can quit reading. If you will need to finance your home purchase, however, let's continue.

An adjustable rate mortgage is just that. You will have an interest rate that is adjusted by your lender over the life of the loan, depending on a variety of factors. This means that while you may start out with a low monthly payment of $1,000 it could easily rise by hundreds, or even thousands, of dollars.

What are the benefits of an ARM?

You will generally enjoy a lower initial rate. Additionally, these loans may be available for shorter loan periods. This is especially beneficial to buyers who plan on staying in a home for only a short period of time.

ARMs can also be a good option for those who expect a rise in their salary in the future. If a raise is in your future, you may be able to rest easier knowing your rate could rise.

What are the risks of an ARM?

Your rate could rise so high you would be unable to make your payments. Be sure to ask if there are caps on your loan. Another risk is prepayment penalties. Some, but not all, adjustable rate mortgages will charge you to pay off your loan early.

If interest rates remain low, then the risk from an ARM remains low. But by signing an ARM loan, you are gambling that rates won't rise. If they do, you will see your payments rise as well.

For more detailed information be sure to speak with a mortgage lender.


Written by Carla Hill
December 29, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Pros and Cons of Condo Living

As purse strings tighten across the nation, and aging boomers enter retirement, many homeowners are making the decision to downsize. One popular choice among consumers is condominiums.

Here are some pros and cons of condo living to consider before you make a move.

Pro

1. Affordability: Are you looking to buy in a specific neighborhood? A condo allows many buyers to live in a desired location, even if they can't afford a single family home.

2. Amenities: Many condominiums come with access to such things as fitness centers, pools, and club houses.

3. Low Maintenance: While you are still responsible for the inside upkeep, outdoor and community features such as the roof, foundation, sidewalks, pool, and yard are covered by the association. This means no mowing the yard in 100 degree heat!

4. Reserve Fund: The condo association collects funds and keeps them in reserve for larger repairs and upgrades needed down the road. If your association keeps accurate surveys and books, this means there should be no surprise expenses.

5. Safety: Many condos offer gated parking, security guards, and even doormen.

Con

1. No Storage: You may find the rare condo that offers access to storage lockers, but condo living generally means no storage. If you have items that will need stored, be sure to include a storage facility rental fee into your budget.

2. Lack of Privacy: You will most likely have neighbors upstairs or down, or at the very least right next door. Some people love the sense of community this creates, though!

3. Monthly Association Fees: Nearly all condo units require you pay a monthly fee that pays for upkeep around the community. This means even if you own your condo free and clear, you are still responsible for monthly fees.

4. Rules: Who likes to follow the rules?! But kidding aside, many condos have strict rules about guests, noise, decor, and even subletting.

5. No yard: While some homeowners love the idea of no yardwork, others enjoy planting and growing. Most condos have very little outside space, apart from small patios.

Be sure to take these elements into consideration when deciding whether a condo is the home choice for you.


Written by Carla Hill
December 15, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

The X Factor--Why Making An Offer On A Home Should Be Based On Value To You

Some people love negotiating and others hate it. Regardless of which side of the sold sign you fall on, the best possible deal is what both buyer and seller want. Arriving at that price can be a lesson in frustration or even cause a complete shut-out.

So what's the X factor? In real estate, many buyers will shop around, find the home they really like, and then, rather than make an offer based on the value of the home to them (taking into consideration comp prices too), they'll say, "How much less should we offer off the asking price?" That's the X factor.

It's as though there's a magical X percentage that should automatically come off the listing price, regardless of what the asking price is. Many times the home is priced realistically––right in line with the comps. Buyers still want a deal and may want to start with a low-ball offer. Doing this can slow the process and not necessarily result in the outcome the buyer wants–the seller, feeling insulted, may halt any negotiation. If you're a serious buyer looking to purchase a home, it's a good idea to really heed the comps, and consider the value of the home to you–especially if the home you found meets your needs and desires.

Arriving at a purchase price for a home is very personal. What one buyer would pay, another might not for the very same home. Of course, there are appraisals to make sure that the home's price is in line with how much the bank is willing to lend the buyers. But the buyers' needs, the home's location, amenities, and its overall appeal, significantly factor into its value. On the other side, the need to sell, the timeline, and the pressures of needing the money out of the home to purchase another property affect the sellers' decision to accept an offer.

All kinds of negotiations begin when it comes to buying a home. Art, drapes, dishes, timelines... many different things are thrown into the negotiating process. If there's something you absolutely must have, of course, negotiate to get it. Just understand that negotiation means compromise, so both sides will give a little and ideally both sides will win–not by a winner takes all stance but rather by each side getting their specific needs met through a compromise process.

If as a buyer you have a list of your top priorities jotted down before the process begins, it will be easier to keep them straight and ensure that those items are secured when the negotiating begins. Then, if suddenly, a non-top priority pops up and is causing the process to stall or come to a halt, you can re-evaluate your top priorities to see if this is truly a must-have or if, perhaps, you've fallen into the "winner must-take all" syndrome of negotiating. A lot of times emotions get ignited and sometimes the negotiation process becomes more about winning than really getting what the party needs or wants. In the end, that will create an unsatisfactory sale or no sale at all.

Meeting in the middle can often be a good tool for buyers and sellers who can't come to an agreement on things like who will pay for the recording fee or certain cosmetic repairs. Splitting the costs can be less expensive than haggling for weeks, losing time, money, and maybe even the deal.

If you reach a really sticking point in negotiations, table it for a bit. Move on to other negotiations and see how many areas there are that both parties can come to agreement. Often the issue that was holding things up will then appear in a different light to both buyer and seller once the bigger items are resolved.


Written by Phoebe Chongchua
December 17, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Holiday Home Safety

The Holiday season is upon us, and for most it is a time full of joy, fellowship, and family. But the unexpected can and does happen.

So, from stopping theft to preventing fires, here are a few tips from the experts that can help keep your family safe this time of year.

Fire safety comes with the territory of the holidays. Trees and lighting can both be dangerous if not done correctly.

When selecting a real tree, be sure to buy one that is fresh. This means you should look for a fragrant tree that is a rich, deep green color. Also, the trunk should still be sticky with sap. Old trees are dry and brittle, and thus can be very flammable.

To keep your tree fresh throughout December, be sure to keep it immersed in water at all times. If needles start to fall off, give it more water!

For those with artificial trees, don't use electrical lights on metallic trees! And be sure to always turn your lights off you go to bed or leave the house.

Another fire hazard are those beautiful, twinkling lights. Every year's decorating should begin with checking light strands for cut or frayed wires.

Also, be sure that lights are used as marked. Indoor lights are for use inside only. Outdoor lights are kept outside.

Next, don't overload your outlets. Three sets of lights to an extension cord is plenty!

Another looming threat during the holidays is home burglary. Thieves prey on those that travel during this season.

To prevent thieves from targeting your home, you need to make your schedule unpredictable. That means keep your routine varied. Come home randomly for lunch one day a week. Leave for work at different times.

And to give the appearance that someone is always home, leave on a tv or use lights that are on timers.

Never post on social media that you'll be out of town or away from your house for extended periods of time.

And as added measures of security, consider installing an alarm system, or having a house-sitter stay at your home or check on it periodically during your vacation.

Use these tips to have a safe and merry holiday season!


Written by Carla Hill
November 25, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Tips for Lowing Your Homeowners Insurance Bill

In today's economy, every penny counts. How can you lower the cost of your homeowners insurance? Here are a few helpful tips.

1. Bundling: Many companies offer discounts for customers who buy multiple policies, such as your car, boat, and home insurance.

2. Deductibles: If you can afford a bit more of a financial burden should something happen at your home, then consider raising your deductible. This can easily save you on monthly costs.

3. Buy Early: You must obtain insurance in order to close your sale. Give yourself plenty of time for price comparisons and to ensure you'll have coverage in time for the sale.

4. It Never Hurts to Ask: Be sure to ask your insurer what discounts they have available. Certain groups and associations you may hold membership in receive discounts on their insurance!

5. Right Amount: Homeowners insurance is in effect to cover the replacement cost of items and structures on your property. This cost is, however, not the market value.

6. Safety Discounts: Many times installing safety extras such as smoke detectors and alarm systems can reduce your monthly bill!

7. Good Credit: Did you know that your credit score can affect your rates? According to Yahoo! Business & Finance, "In general, people with low credit scores and problems on their credit report end up paying more for insurance than people who don't have those kinds of issues in their lives."

And be sure to review your policy each year before renewal time to be sure that you policy still accurately coverages your property. Have you made changes or modifications that would require more or less coverage? Do all or even a few of these tips and you could see your insurance bill decrease!


Written by Carla Hill
December 14, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Pros and Cons of Condo Living

As purse strings tighten across the nation, and aging boomers enter retirement, many homeowners are making the decision to downsize. One popular choice among consumers is condominiums.

Here are some pros and cons of condo living to consider before you make a move.

Pro

1. Affordability: Are you looking to buy in a specific neighborhood? A condo allows many buyers to live in a desired location, even if they can't afford a single family home.

2. Amenities: Many condominiums come with access to such things as fitness centers, pools, and club houses.

3. Low Maintenance: While you are still responsible for the inside upkeep, outdoor and community features such as the roof, foundation, sidewalks, pool, and yard are covered by the association. This means no mowing the yard in 100 degree heat!

4. Reserve Fund: The condo association collects funds and keeps them in reserve for larger repairs and upgrades needed down the road. If your association keeps accurate surveys and books, this means there should be no surprise expenses.

5. Safety: Many condos offer gated parking, security guards, doormen, and even keyed entry.

Con

1. No Storage: You may find the rare condo that offers access to storage lockers, but condo living generally means no storage. If you have items that will need stored, be sure to include a storage facility rental fee into your budget.

2. Lack of Privacy: You will most likely have neighbors upstairs or down, or at the very least right next door. Some people love the sense of community this creates, though!

3. Monthly Association Fees: Nearly all condos units require you pay a monthly fee that pays for upkeep around the community. This means even if you own your condo free and clear, you are still responsible for monthly fees.

4. Rules: Who likes to follow the rules?! But kidding aside, many condos have strict rules about guests, noise, decor, and even subletting.

5. No yard: While some homeowners love the idea of no yardwork, others enjoy planting and growing. Most condos have very little outside space, apart from small patios.

Be sure to take these elements into consideration when deciding whether a condo is the home choice for you.


Written by Carla Hill
December 15, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Use Experts to Navigate Homebuying Process

In a growing atmosphere of the do-it-yourself mentality, some wonder should I take on the homebuying process on my own. It's certainly been done, but, more often than not, homebuyers turn to the experts when it comes time to making, what will often be, their most expensive purchase.

Here are just a few reasons why it's a good idea to use an expert real estate agent to help you navigate the homebuying process.

1. Knowledge is power. Real estate agents work in the field every day. They're immersed in markets that buyers, likely, have less opportunity and time to study. Working with the right expert can not only speed up the homebuying process but also help you easily transition from your current living space to the home of your dreams.

You can also learn information that's not readily available from, say, an open house sign or a listing you may view on the Internet. Elizabeth Weintraub, About.com Guide, writes, “For example, you may know that a home down the street was on the market for $350,000, but an agent will know it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow.”

2. Help with paperwork chaos. If you've bought a home then you know that the paperwork is enormous. If you've never purchased one, get ready to be overwhelmed. But using an agent, helps you to understand what the paperwork is, when it needs to be in (so that you don't miss important deadlines), and its importance in the transaction.

3. Network of support. Real estate agents have a professional network of service providers to help with the homebuying process (and selling, of course, too). When it comes time to purchase your home, you'll find that being able to tap into that service provider network can be invaluable. Everything from reputable vendors to retail outlets that offer the best pricing for home decor, are often in the agent's contact list.

4. Negotiation. This is the area where an expert agent can really shine. For buyers, it can be difficult to negotiate (from a non-emotional standpoint) because they're really invested in the outcome. A top-producing real estate agent can represent buyers' needs and still stay emotionally removed enough to ensure the best outcome.

Negotiation is often the least favorite part of the transaction but the most important. Having an expert on your side, who is working for your success, can reduce the amount of frustration that can potentially arise during this process. Also, in sellers' markets, agents are tasked with helping position buyers in the best possible light to sellers in order to help the deal close for their client.

5. Pricing and value. Agents don't determine what buyers should pay for a home but they can show you the best value based on their price point. They have visited many more homes than most buyers because this is their job. They're in the market daily and they know when a home has recently been reduced or fallen out of escrow.

It's the knowledge, the experience, and the effort and dedication to helping you find your dream home, that ultimately is the reason most people seek out that expert real estate agent to help them navigate the homebuying process.


Written by Phoebe Chongchua
December 10, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

10 Reasons to Buy

Owning a home has been a part of the American Dream for decades. If you are still unsure, however, whether or not homeownership is the move for you, be sure to read these ten reasons to buy.

1. Low Interest Rates. It's true! Interest rates are currently at historical lows. This means over the course of your loan, you'll pay less interest. And it also means monthly payments will be a smaller, more manageable amount.

2. Mortgage Interest Deduction: While this deduction may not be available for much longer, for now you can still use this great tax advantage!

3. Stability: Studies have shown that homeownership not only increases community involvement, it also leads to safer neighborhoods, and higher graduation rates.

4. Affordability: Coupled with the low interest rates, affordability is the highest it's been in years. Prices fell in many areas and median incomes rose -- meaning you can get more bang for your buck.

5. Paying Towards Ownership. Instead of paying a landlord, you are making an investment in your future. Every month your payment goes towards something you'll eventually own and that will have worth and value. Renting only makes the landlord richer!

6. Appreciation: Average appreciation rates vary widely depending on the condition of the local market and demand, but anywhere from 4 to 6 percent annually is considered average. This means the longer you stay in your home, the more your home will be worth.

7. Home equity: This building of worth over time (see number 6) means that if you need to make improvements to your home, you will be able to tap into its equity to finance repairs and additions.

8. Gardening: Many households are embracing the organic movement, and families have begun again to raise their own food. Even the White House has its own victory garden. Owning your own home (in most cases) means you will have your own land to cultivate.

9. Roots: Young and old alike seek out places where they belong. Owning a property, and taking your first steps towards putting down roots, can mean the difference between a house and a home.

10. Monthly Payments: Once your home is paid off -- you won't have monthly payments anymore. Apart from insurance, property taxes, and repairs, monthly expenses are minimal. In today's market, many buyers are finding, as well, that their monthly house payments are less than what they'd pay in rent!


Written by Carla Hill
December 8, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Mortgage Tax Deduction

For months now, experts have been debating the fate of the home mortgage interest deduction (MID). So why exactly are politicians targeting the MID? With a federal deficit of around $13 trillion, officials are hard-pressed to find ways to curb the growing the debt.

The deduction, a pillar of the housing industry since 1913, could be on the chopping block. The Obama administration's deficit committee is currently reviewing it, along with other items, in order to scope out new ways to help reduce our budget shortfall.

The co-chairmen of the White House's bipartisan deficit-reduction commission said Tuesday they would propose a significant paring of popular middle-class tax breaks, including the mortgage-interest deduction, and push for an increase in the Social Security retirement age.

Some say there are better options available than keeping the MID, following suit of many European nations who have in recent years nixed the deductions themselves, but the National Association of REALTORS® (NAR) disagrees. They feel that this deduction is a strong incentive for homeownership. For nearly 100 years homeowners have been allowed to deduct the interest paid on mortgages for their primary residences, second homes and most home equity lines of credit.

"The tax deductibility of interest paid on mortgages is a powerful incentive for home ownership and has been one of the simplest provisions in the federal tax code for more than 80 years. In a new survey commissioned by NAR and conducted online in October 2010 by Harris Interactive of nearly 3,000 homeowners and renters, nearly three-fourths of homeowners and two-thirds of renters said the mortgage interest deduction was extremely or very important to them."

NAR President Ron Phipps, states, "Recent progress has been made in bringing stability to the housing market and any changes to the MID now or in the future could critically erode home prices and the value of homes by as much as 15 percent, according to our research. This would negatively impact home ownership for millions of Americans, including those who own their homes outright and have no mortgage."

He continued, saying, "Any further downward pressure on home prices will hamper the economic recovery, raise foreclosures and hurt banks' abilities to lend and likely tip the economy into another recession resulting in further job losses for the country. It will effectively close the door on the American dream."

Will Washington continue to allow taxpayers who own their homes to reduce their taxable income by the interest paid on the loan? Time will tell. It is dependent on finding alternative ways to curb growing anxiety over our growing debt.


Written by Carla Hill
December 2, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

The Federal Reserve on Homeownership

Homeownership has always been a hallmark of America life. In recent years, homeownership became more readily accessible. In fact, according to the Federal Reserve, "Tax incentives, mortgage insurance from the Federal Housing Administration, and other government policies all contributed to a long rise in the U.S. homeownership rate--from 45 percent in 1940 to a peak of 69 percent in 2004."

At first glance, this accessibility seemed like a positive step, since research has shown that high levels of homeownership can increase school and community involvement, lead to higher graduation rates, and of course neighborhood stability. But predatory lending and underwriting practices meant that many buyers became homeowners before they were financially ready.

Federal Reserve Chairman, Ben S. Bernanke, addressed the issue last week, saying, "... we have been concerned about reported irregularities in foreclosure practices at a number of large financial institutions. The federal banking agencies are working together to complete an in-depth review of practices at the largest mortgage servicing operations. We are looking intensively at the firms' policies, procedures, and internal controls related to foreclosures and seeking to determine whether systematic weaknesses are leading to improper foreclosures."

He noted, "Homeownership is only good for families and communities if it can be sustained. Home purchases that are very highly leveraged or unaffordable subject the borrower and lender to a great deal of risk."

What is being done to stave off further financial and housing crises?

In response to the fallout from the financial crisis, the Fed has helped stabilize the mortgage market and improve financial conditions more broadly, thus promoting economic recovery.

This week, The New York Times reported that the Fed is poised again to aid the economy through "quantitative easing, a strategy of buying Treasury securities to put downward pressure on long-term interest rates. The hope is that new action by the Fed will make a deflationary spiral of falling prices less likely, and make it somewhat easier for consumers and businesses to borrow and spend."

The Fed is also involved on local levels, with programs such as MORE and HOPE NOW.

According to Bernanke, "MORE involves all 12 Federal Reserve Banks and the Board of Governors in a collaboration that pools resources and combines expertise to inform and engage policymakers, community organizations, financial institutions, and the public at large. ... A number of Federal Reserve research projects also have been initiated as part of the MORE program. They include studies focusing on foreclosure prevention, financial education, and adverse neighborhood effects resulting from foreclosures."

The HOPE NOW Unemployment Taskforce helps unemployed homeowners keep their homes. How does it work? It is an alliance between counselors, mortgage companies, investors, and other mortgage market participants. This alliance maximizes outreach efforts to homeowners in distress to help them stay in their homes and creates a unified, coordinated plan to reach and help as many homeowners as possible.

To find out more about the HOPE NOW program, please visit hopenow.com.


Written by Carla Hill
November 3, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

New to the Neighborhood

Welcome to the neighborhood! You've just made a big move, and now you may be trying to figure out the lay of the land. So, how can you become a part of your new community?

The first order of business is to have an open mind. Your new neighborhood and even Homeowner's Association may function very differently from what you're used to. There may be new cultures, new rules, and (hopefully not) new cliques. By being open to new situations you may find yourself more able and willing to make new acquaintances.

This is not a time to be a recluse. Venture out on strolls through your neighborhood or take your dog on walks. Spend time in your yard, accept invitations to parties and events, and take opportunities to volunteer. As you meet members of your new community, you will surely find those you like ... and those you don't. But you'll never know if you don't put yourself out there.

A few great places to meet your neighbors are through the PTA, local HOA meetings, and community events, such as festivals, carnivals, and theater events.

Above all, being a part of your community means being a good neighbor yourself. Be sure to help your neighbors when they are in need. This can be as simple as helping change a tire, lending a tool, or bringing over food and flowers after a funeral.

Be willing to compromise during disagreements. You may want to cut down the tree that shades your garden, while your neighbor wants to keep that same tree that they planted 20 years ago with their children. Don't let anger get the better of you. Having neighbors means that you share property lines, streets, and communities.

And finally, a good neighbor is also on the watch. A good rapport with your neighbors can mean you watch their place, and they watch yours when you're out of town. That's a pretty good trade-off!

Above all, now is the time to be open and adventurous. Try new things, take up new hobbies, and find out how you can fit into your new community.


Written by Carla Hill
December 1, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

It's a Good Time to Buy a Vacation Rental

Right now, the languishing housing market offers some lingering upsides for those who have a pot of investment dollars to burn.

Home prices are low, financing is cheap and inventories are bulging.

The planets have aligned over vacation rental acquisitions.

The road's been rocky for real estate in recent years, but that means it's a buyer's market and good time to grab a piece of the American Dream as a solid, long-term investment.

"Vacation homes are almost always a good investment," says vacation rental guru Christine Karpinski, director of Owner Community for HomeAway.com, the global leader in vacation rentals, hosting some 540,000 vacation rental listings.

"First, if you're looking for a good long-term investment, real estate tends to be a good bet. Second, vacation properties have the ability to pay for themselves, and owners often earn a profit in rental income. Third, the investment comes with the desirable perk of having a place at the beach or in the mountains to call your own," says Karpinski, a vacation rental owner herself and author of "How to Rent Vacation Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your Vacation Rental Investment" (Kinney Pollack Press, $26.00).

Vacation rental space is the place more and more travelers opt for when they want a bargain getaway with accommodations that provide all the comforts of home.

According to Karpinski, here's why you want to move on that vacation rental now.

Prices are as low as they are going to go.

Property prices are as low as they've been in ten years. Procrastination won't keep them low. Analysts say the housing market is scraping bottom and poised to move up.

"I don't take the plunge now, I'll look back ten years from now and say, 'Why the heck didn't I buy back in 2010?'" says Karpinski

Interest rates are likewise as low as they are likely to go.

Erate.com had the interest rate for 30-year, conforming fixed rate mortgages at 4.23 percent on Oct. 25 and says rates on non-owner occupied properties is about a half a percentage point higher -- with a virtually mandated 20 to 30 percent down payment.

Markets are flush with inventory.

The slow economy and even slower housing market has left vacation markets brimming with buying opportunities, from sellers looking to move on or up, to foreclosures that warrant careful scrutiny.

"One caveat: Before you let yourself fall in love with a property, make sure it is legal to rent it out as a vacation home. Some areas and homeowners' associations do not allow short-term rentals," Karpinski warns.

Good help is easy to find.

The recession weeded out incompetent, fly-by-night real estate people who jumped on the booming market bandwagon. Those who survived have been around the block a few times and know the game.

Say Karpinski, "Real estate professionals still working today are the top in the business," says Karpinski.

Renting a vacation property is easier than ever.

Vacation rentals are more popular than ever, thanks to their home-away-from-home allure but also because the Internet has made them eminently more visible.

"More and more consumers are choosing to stay in cozy condos, cabins, and chalets instead of cramped, impersonal hotel rooms when they travel. And as market demand has surged, organizations like HomeAway.com have sprung up to help connect vacation homeowners with these potential renters," Karpinski said.

The online vacation rental portals help owners market homes by posting photos, descriptions, testimonials and other marketing information to attract vacationers.

HomeAway.com also offers vacation rental owner support. It's Owner Community offers property owners expert information about proven best practices, setting up your business, upgrading amenities on a budget, handling complaints and cancellations and more.

After the Gulf oil disaster, HomeAway.com set up the unique HomeAway Gulf Coast Response Center to fill a void left by major media and to help Gulf area vacation property owners through the lost income claims process, to provide insight from experts and to offer a forum for sharing concerns, stories and frustrations.

"Ten years ago vacation rental owners were on an island, but now it's easy to get the support you need," said Karpinski.

Buy now, beat the 2011 peak season rush.

The longer you wait to buy, the more likely mortgage rates and prices will rise and the good properties will be snatched up.

Buy now and you've got plenty of time to prepare yourself and your property for thepeak rental season. Seasoned vacation property owners' rental fees generated during the twelve weeks between Memorial Day and Labor Day pay their mortgages for an entire year. Most inquiries come in between January and March.

"By buying now, you will have a cushion of time to get the home ready for your guests, take great photos for your property listing, and start marketing it to potential renters," said Karpinski.

Published on Realty Times
Written by Broderick Perkins
November 25, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

10 Tips For New Buyers

It is a great time to buy for many would-be homeowners. The market offers historically low interest rates, as well as affordable home prices.

Here are 10 steps that buyers can take to make home dreams a reality!

1. Savings. You may already know how much monthly payment you can support (experts recommend no more than 1/3 your monthly income), but the buying process will also include upfront costs, such as a downpayment and closing costs.

2. Downpayment options. Do you qualify for downpayment assistance programs? Will you be able to get an FHA loan and pay 3.5 percent down? Do you have a relative that would like to make a downpayment gift? Many financial experts recommend a downpayment of 20 percent, so be sure to explore your options!

3. Check Credit Report. Your credit report says a lot about you. Lenders use it to evaluate your risk potential and to inform themselves on how responsible of a borrower you are. They use this report and subsequent score to figure your interest rate. The more stellar your report, the better your score and thus lower your rate. Be sure to check your report for accuracy, and report any errors to the credit reporting agencies.

4. Get Preapproved. It's time to talk to a lender! Pre-approval will give you a ballpark figure of how much the bank would be willing to lend you. Are you looking for a $100,000 house or a $300,000?

5. Get Prequalified. This is the official letter from the lender that says they will be willing to lend you money. Many sellers look for buyers who are prequalified.

6. Affordability. The bank may tell you that you can afford a home worth $300,000. This does not mean you want to borrow to your max. A more modest home may fit better in your financial plans.

7. Housing Criteria. You have a budget, now develop a list of what you need and want. This can include anything from "must have 3 bedrooms" to "hardwoods" or "granite".

8. Neighborhood choice. Location strongly affects prices. A 3,000 square foot home in rural Kansas costs a fraction of one in New York City. Decide what neighborhoods and areas are the best fit for you. This will help narrow your home search.

9. Hire an agent. An agent can help you navigate the entire process from searching, putting in offers, to where to hire an inspector or general contractors.

10. Start the search! The MLS is a wonderful place to begin your search. Eighty-four percent of buyers now start their search online, so you'll be in good company.

Written by Carla Hill
November 17, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

For the fourth consecutive month, price reductions have increased for home listings currently on the market in the United States. The reductions are now at an all-time high of 27 percent, according to Trulia.com

The record-high reductions amount to more than $30.7 billion nationwide. In a press release, Trulia concludes that there has been "a continual and dramatic price reduction increase in many cities that began in June 2010."

Anxious sellers, watching prices decrease, have gotten aggressive in their pricing. "We would normally expect to see a seasonal uptick in price reductions between June and October, as motivated sellers whose homes are still on the market after the summer selling season aggressively cut prices in an effort to get their homes sold before the holidays," said Tara-Nicholle Nelson, consumer educator, Trulia.com.

This is like Christmas coming early for buyers who are hoping to capitalize on a bargain-buy before the year's end. "Comparatively speaking, we've found that seasonal considerations combined with a lack of urgency on the part of would-be buyers and continued job market doldrums nationwide have led to more significant reductions during this time period than during the same time frame in 2009," said Tara-Nicholle.

Low interest rates and great deals on houses is making this an ideal time for some buyers to purchase a home. However, while buyers may think it's "their" market, it's important to remember that if you're an ill-prepared buyer, you could lose the deal of a lifetime and the home you really want.

Here are a few tips to keep you prepared for that perfect sale in the new market conditions.

Even if you're just browsing, get your pre-qualification for your loan. You might think, you're not really ready to buy but let's go shopping any way. Don't make this crucial mistake. Know your price point. Understand how much home you can afford and browse in that market range.

Since the mortgage crisis, getting loans and buying a home has gotten more complex and can take even longer than before. That shouldn't discourage you but rather encourage you to get everything in order to make the close of escrow simpler.

Act now. Timing the market and waiting to see if you can get the absolute rock bottom interest rate, can cause you to lose the home you love. Of course, we all want to save money and get the best deal but understanding that when you find a home you really like, trying to wait to see if the rates/price will drop, could cost you the deal. Certainly negotiating is always part of real estate, but just keep in mind that if you're not careful you could time yourself out of the home you really want.

Stay on top of your home sale. If you're in a situation like many buyers are where the purchase of their new home is depending on the sale of their current home, then you must stay on top of your home sale. Contingency sales are sometimes easier to negotiate in a buyer's market.

Keep in mind that the house-hunting process for your new home, is, of course, only part of the deal. That means that keeping up your own home while it's on the market is vital. Sometimes buyers get so busy shopping for their next home that they end up leaving their current listed home a mess. This could turn off a potential buyer; it happens all the time. So do the juggle--keep an eye on how appealing your home is to a buyer while shopping for your new dream home. 

Written by Phoebe Chongchua
November 5, 2010 

Thinking about Buying or Selling? 
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

Most Say it's a Good Time to Buy

Most Americans believe the housing market has hit the bottom and that it's a good time to buy, in part because many also think rents will rise faster than home prices.

Fannie Mae's latest nation housing survey found that 70 percent of Americans think it's a good time to buy a home, up from 64 percent in January.

By an overwhelming majority, 78 percent, also believe home prices will either hold steady or increase over the next year, compared to 85 percent believing the same thing about rental increases.

While Americans expect rents to rise by 3.6 percent on average, home prices are expected to turn up only by 0.9 percent, Fannie Mae found.

"Given the remaining level of shadow inventory, as well as the high number of adjustable rate resets still looming which could in turn lead to further defaults, it is difficult to see the supply of housing falling in an amount sufficient to move prices upwards in many parts of the country," said Nancy Osborne, chief operating officer of Erate.com, a Santa Clara, CA-based financial information publisher and interest rate tracker.

Also 67 percent believe housing is a safe investment, down three points since January and down 16 percentage points from a similar 2003 survey and the largest drop by far among all investment types tracked since then. Housing ranked second behind putting money into a savings or money market account (76 percent).

"Our survey shows that consumers see a mixed outlook for housing and homeownership," said Doug Duncan, Fannie Mae's vice president and chief economist.

"These findings indicate a return to a more balanced and realistic approach toward housing. While this will likely weigh on the housing recovery in the near-term, it should, over time, help to build a stronger and healthier market focused on sustainable homeownership," he added.

The Fannie Mae National Housing Survey polled homeowners and renters between June 2010 and July 2010 and compared the findings to similar surveys released earlier this year and 2003.

The survey also found:

• Mortgage borrowers (74 percent) and underwater borrowers (69 percent) are more likely to say owning a home is a safe investment than delinquent borrowers (57 percent) and renters (54 percent). However, this measure has fallen among all sub-groups since January, with delinquent borrowers and renters showing the largest declines, down eight and seven points, respectively.

• More than 70 percent of all respondents believe it will be harder for the next generation to buy a home, up three points from the beginning of the year.

• Fifty-four percent think it would be very difficult or somewhat difficult to get a home loan today, down six points since January.

• Thirty-three percent of all Americans said they would be more likely to rent rather than buy if they were going to move, up from 30 percent in January.

• Among renters, 60 percent said they would rent again if they were to move, up from 54 percent in January. However, 69 percent of renters think it makes more sense to buy a home than to rent.

• Mortgage borrowers (83 percent) and underwater borrowers (77 percent) remain bullish on housing and said they are more likely to buy in the future than rent — both groups increased two points from January.

"If you couple this (high inventories and rate resets) with the reality that it is far more difficult to obtain a mortgage as well as a job, when selling a home to someone who presumably needs financing to buy it, housing is still facing a conundrum." Osborne added. 

Written by Broderick Perkins
November 4, 2010 

Thinking about Buying or Selling? 
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

Value in Homeownership

Is there value in owning a home? The recently released 2010 National Association of REALTORS® Profile of Home Buyers and Sellers brings us some promising results. Today homeowners are living in their homes longer, and after several years of price declines, are seeing rises in home equity gains.

It was only earlier this decade that so many buyers jumped on the investment bandwagon. They bought and sold within incredibly short time frames, and walked away with profits. But as the booms busted, many sellers found they had bought at the top of the market and as prices corrected, they lost more than just dollars. Foreclosure rates skyrocketed. Historically, however, homeownership is a long term investment, and one that brings many rewards.

"Sellers who purchased at the top of the market and had to sell in a short time frame were hurt by the price correction, but the vast majority who are able to stay for a normal period of home ownership generally built enough equity to make a trade-up purchase," NAR 2010 President Vicki Cox Golder said. "Despite swings in the housing market in recent years, the fact is most long-term owners see healthy gains in the value of their property."

Golder also says the pattern of home buyers taking a long-term view has solidified over the past few years. "This underscores two simple facts – home ownership encourages stability, and the longer you own, the better your investment."

Current market and economic conditions have created a shift from the house flipping ways of the boom. "The primary exception is for experienced investors, many of whom pay cash and are making renovations or improvements after a careful study of properties, neighborhoods and market demand," Golder explained. "The house flipping and quick gains which occurred during the boom period were abnormal, driven by risky, easy-money financing that should never have been allowed in the market."

American are still buying, however. And surveys have found there are particular reasons behind these purchases. These include the desire to own a home, the desire for a larger home, a change in family situation and taking advantage of the home buyer tax credit, a job-related move, and then the current supply of affordable homes.

And once they buy, homeowners are staying put longer. A typical seller has been in their home for 8 years, but the survey reveals first-time buyers are planning to stay for 10 years, and repeat buyers for 15 years.

Even with several years of price declines, the typical seller who purchased a home eight years ago experienced a median equity gain of $33,000, a 24 percent increase, while sellers who were in their homes for 11 to 15 years saw a median gain of 40 percent. So, once again buying for the long-term is steering its way back into value. 

Written by Carla Hill
November 9, 2010 

Thinking about Buying or Selling? 
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

Real Estate Prices Fall, Will Sellers Take Note?

For the fourth consecutive month, price reductions have increased for home listings currently on the market in the United States. The reductions are now at an all-time high of 27 percent, according to Trulia.com

The record-high reductions amount to more than $30.7 billion nationwide. In a press release, Trulia concludes that there has been "a continual and dramatic price reduction increase in many cities that began in June 2010."

Anxious sellers, watching prices decrease, have gotten aggressive in their pricing. "We would normally expect to see a seasonal uptick in price reductions between June and October, as motivated sellers whose homes are still on the market after the summer selling season aggressively cut prices in an effort to get their homes sold before the holidays," said Tara-Nicholle Nelson, consumer educator, Trulia.com.

This is like Christmas coming early for buyers who are hoping to capitalize on a bargain-buy before the year's end. "Comparatively speaking, we've found that seasonal considerations combined with a lack of urgency on the part of would-be buyers and continued job market doldrums nationwide have led to more significant reductions during this time period than during the same time frame in 2009," said Tara-Nicholle.

Low interest rates and great deals on houses is making this an ideal time for some buyers to purchase a home. However, while buyers may think it's "their" market, it's important to remember that if you're an ill-prepared buyer, you could lose the deal of a lifetime and the home you really want.

Here are a few tips to keep you prepared for that perfect sale in the new market conditions.

Even if you're just browsing, get your pre-qualification for your loan. You might think, you're not really ready to buy but let's go shopping any way. Don't make this crucial mistake. Know your price point. Understand how much home you can afford and browse in that market range.

Since the mortgage crisis, getting loans and buying a home has gotten more complex and can take even longer than before. That shouldn't discourage you but rather encourage you to get everything in order to make the close of escrow simpler.

Act now. Timing the market and waiting to see if you can get the absolute rock bottom interest rate, can cause you to lose the home you love. Of course, we all want to save money and get the best deal but understanding that when you find a home you really like, trying to wait to see if the rates/price will drop, could cost you the deal. Certainly negotiating is always part of real estate, but just keep in mind that if you're not careful you could time yourself out of the home you really want.

Stay on top of your home sale. If you're in a situation like many buyers are where the purchase of their new home is depending on the sale of their current home, then you must stay on top of your home sale. Contingency sales are sometimes easier to negotiate in a buyer's market.

Keep in mind that the house-hunting process for your new home, is, of course, only part of the deal. That means that keeping up your own home while it's on the market is vital. Sometimes buyers get so busy shopping for their next home that they end up leaving their current listed home a mess. This could turn off a potential buyer; it happens all the time. So do the juggle--keep an eye on how appealing your home is to a buyer while shopping for your new dream home. 

Written by Phoebe Chongchua
November 5, 2010 

Thinking about Buying or Selling? 
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

Real Estate Outlook: Existing-Home Sales Rise Slightly

Are the economy and housing market finally showing marked improvements on the road to recovery?

The National Association of Realtors' latest survey shows that existing-home sales rose again in September, a positive sign that the market is moving in the right direction.

Lawrence Yun, NAR chief economist, said, "A housing recovery is taking place, but will be choppy at times depending on the duration and impact of a foreclosure moratorium. But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions."

Helping the market on it's way back to health are historically low interest rates, nearly half what they were a decade ago. And, according to NAR President Vicki Cox Golder, "Home prices are running about 22 percent less than five years ago when they were bid up by the biggest housing rush on record."

This means housing is affordable, with many areas seeing monthly mortgage payments less than monthly rent.

Lower home prices, however, have been linked with the foreclosures crisis. The uncertainty over the legal status of foreclosed homes in the nation could further depress home prices and delay the recovery of the housing market, the Obama administration said last week.

Distressed homes still accounted for 35 percent of sales in September. They were just 29 percent a year ago.

And the government's Troubled Asset Relief Program's special inspector general reported last week that 5.5 million homes had been the subject of foreclosure filings and that 1.7 million homeowners had lost their homes since January 2009.

Major banks held their own internal reviews of foreclosure policies and procedures in the last several weeks. But Federal Reserve Chairman, Ben Bernanke, remarks, "We have been concerned about reported irregularities in foreclosure practices at a number of large financial institutions. The federal banking agencies are working together to complete an in-depth review of practices at the largest mortgage servicing operations. We are looking intensively at the firms' policies, procedures, and internal controls related to foreclosures and seeking to determine whether systematic weaknesses are leading to improper foreclosures."

Hopefully these reviews will slow help in the housing market's recovery. In the face of this crisis, consumer confidence remains tepid.

Lynn Franco, Director of The Conference Board Consumer Research Center, says, "Consumer confidence, while slightly improved from September levels, is still hovering at historically low levels. Consumers’ assessment of the current state of the economy is relatively unchanged, primarily because labor market conditions have yet to significantly improve." Though new filing for unemployment have dropped to the lowest level since July.

She continues that "despite the uptick in Expectations, consumers continue to be quite concerned about the short-term outlook. Both present and future indicators point toward more of the same in the coming months." 

Written by Carla Hill
November 1, 2010 

Thinking about Buying or Selling? 
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

First-Time Buyers Do's

If you are ready to buy your first house, congratulations! This is an exciting time that can bring you sweet rewards. It's also a time, however, full of questions. Here are a few do's and don'ts to get you started.

Before you shop, you must decide what type of home is best. Are you looking for a condo, with a strong sense of community, extra amenities, easy maintenance, and willing to pay a monthly HOA fee? Would you prefer a larger house in the suburbs, even if it means a longer commute? Are you looking for older charm or newer construction?

After you've decided this, write down a list of your wants and needs. This is a time to be honest with yourself. Rarely does a homebuyer get everything they "want" in a home. You will need to compromise. For example, you may need 3 bedrooms, but want a fenced back yard. If push comes to shove, you may have to forgo the fenced yard to get the bedrooms.

When you begin to shop, have a budget in mind. While prices are always negotiable, you don't want to waste your or a seller's time. Be realistic about a home's price. Let your real estate agent compile a list of homes to visit that fit your criteria, as well as your budget. As you make your way to and through the homes, be sure you don't judge a home until you've been through the entire place. There are homes that seriously lack curb appeal, but with a few cosmetic enhancements can be real showstoppers.

Pay close attention to what repairs the home may need. Don't get swept up by fantastic staging. Keep your list of criteria in mind the entire shopping process.

Once you have decided on a home, it is time to begin negotiations. Do not hesitate. Desirable homes don't sit on the market for long. Hesitation may translate into missing out on a property that you really love. That said, you must be confident with your decision. This is not a time to buy a house simply because you feel pressured.

Your agent will help you put in an offer. By researching area comparables (that's other homes that have sold or are selling in the area), they can come up with a reasonable amount to pay. How much are you willing to pay for this home? Set a top number in your mind and don't let emotion push you to buy past your budget. And leave room in your coffers for closing costs, a down payment, initial repairs, as well as a home inspection.

Home buying can be a stressful process, but keep the end goal in sight and you'll do great! 

Written by Carla Hill
October 27, 2010 

Thinking about Buying or Selling? 
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

Why Buy A Home?

The past few years of rocky real estate markets has left some people wondering, why buy a home? If you find that thought running through your mind consider these things.

A recent survey commissioned by the National Association of Home Builders found that 72 percent of its respondents opposed any effort to get rid of the homeowners' mortgage interest deduction. That's despite the fact that doing so could help ease the nation's budget deficit.

Gil Gross host of Real Estate Today Radio reported that, "The survey cut across partisan lines, and even across homeowner status. 76 percent of Republicans and 64 percent of Democrats oppose eliminating the deduction, as do 75 percent of owners and even 55 percent of renters. They all recognize the importance of homeownership to the nation's economy."

But why when you hear the horror stories of markets crashing, housing underwater and homeowners facing foreclosure, would you want to buy a home?

The first reason, we just addressed. When you buy a home there are tax advantages. Effectively, homeownership provides an excellent tax shelter. But there are more reasons to trade your rent payment for a mortgage. Buying a home for this tax advantage isn't how you should look at it. Rather, think of it this way. You need a place to live. Receiving a tax advantage for the place that you choose to live in, is a nice bonus.

When carefully used, a home equity loan (line of credit that allows you to borrow against your home) can be a better way to carry credit. That's because home equity lines can have lower interest rates and are also deductible whereas typical credit card interest is not.

Owning your own home gives you more freedom and the opportunity to create a living environment exactly how you want it. There's no consulting with landlords to see if you can do something to the home or who will pay for the change. Of course, that means when you buy a home you should consider what additional changes you plan to make, so that you can appropriately budget. Also, keep in mind that with homeownership come unexpected expenses for repairs and maintenance. While that may sound like a reason not to buy, it shouldn't be. Think about owning a car. There are maintenance issues and expenses but most people still like to own their own vehicle.

Homeownership provides a sense of stability and security. Instead of wondering when the landlord might decide to sell the home, you are in control of that decision. Additionally, homeownership provides immeasurable values of belonging to a social community. Also, as a homeowner, you'll have a greater influence on community affairs. Renters, being usually more transient, have less influence on policymakers.

What it comes down to is how long you plan on staying in a particular home and area and what you can afford. Owning your home weds you to a property which some people feel limits them. However, many others see a home as their life and the legacy they'll leave behind... a place where they raise children, enjoy company, experience life's ups and downs, and eventually pass on their home to loved ones. 

Written by Phoebe Chongchua
October 29, 2010 

Thinking about Buying or Selling? 
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

Choosing Your Agent

It is recommended that you have a real estate agent help you with your transactions. But how do you know which agent to select? The choice can be difficult, but here are some questions to ask during potential agent interviews.

1. Do you have references from past clients? Ask their past clients if they were pleased with the service the agent provided them. Did they communicate in a timely manner, and were they kind and courteous?

2. What does being an agent mean to you? By asking this question you'll be able to see what their work ethic and business philosophy are. You want an agent that puts their priority on your happiness first, and their commission check second.

3. How long have you been in real estate? This is not to say that someone new to the business would not be a great asset. However, depending on the nature of your transaction, you may feel more comfortable with an agent with a proven record of sucess.

4. How many homes did you sell last year? Just because an agent has been in the business for a while doesn't mean they've been successful. You don't want to have your home on the market for months, when a savvy agent could have it sold in weeks.

5. What designations and certifications do you hold? Beyond holding a real estate license, agents can opt to expand their education and skills. There are a multitude of courses and programs available. In general, these certifications mean a more specialized agent.

6. What is your marketing plan? In an ideal world a house would just sell itself, right? But the market swings back and forth on a constant pendullum between being in favor of sellers and then buyers. If you are selling a house in a buyers market, then you need a solid marketing plan to make your home stand apart. Open houses, email campaigns, webcasts, and brochures are just a few of the items your agent may use.

7. Do you do dual agency? Dual agency is when the agent represents both the buyer and the seller. This is legal, as long as disclosed, but it may not be something you're interested in signing up for. Be sure to ask.

8. What are your home sales stats? It is important to ask them how long it takes them on average to sell a home. And then ask what the area average is. They should know this information off the top of their head, or at least have the statistics readily available.

9. How do you communicate with your clients? There is nothing worse than not being able to get ahold of your agent, with questions, for updates, and for feedback. In today's modern world of technology, there is no excuse for them not to stay in constant contact. There is email, texting, cell phones, and a myriad of other options. Ask what they use to stay in touch with their clients.

10. Do you have other connections? Meaning, will they be able to refer you to contractors, mortgage lenders, banks, landscapers, pool maintenance crews, and the like. This will be especially important if you are new to the area. 

Written by Carla Hill
May 17, 2010 

Thinking about Buying or Selling? 
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com