3-2-1- LIFTOFF! Prevent Failure to Launch: Help Your Kid Buy A House This Year

It wasn't THAT long ago that we Baby Boomers worried a lot about our kids.

You know, those irrepressible Generation Y kids who were on the Internet at age 4 and who grew up clicking (my son says I grew up turning dials and that is why his generation is different).

Sitting on our own fat bubble- enhanced, low taxed properties, we watched prices spiral out of control here in the San Francisco Bay Area. We believed our children would either:

Never be able to afford a house
Move away forever
Move back in with us (eek!)

But post meltdown, all of that has changed. And in the wake of economic disaster lies a once in a lifetime opportunity to get junior into his very own house or condo.

This is the year to help your kid become a first time buyer. You snooze, you lose.

No, I cannot promise son will become a handyman or daughter will turn into Martha Stewart. But I can promise you that everyone in the family will look back someday (sooner than you think) and thank their lucky stars you took advantage of a 24 karat golden real estate opportunity to give your child financial stability.
Why this year? Here are 3 reasons that point directly to the stars being lined up perfectly:

1. Cheap properties (prices being driven down by foreclosures)
2. Low fixed rates on old fashioned 30 year mortgages
3. FHA financing finally has limits high enough to buy in California

As if that isn't ENOUGH, here is your amazing limited time BONUS OFFER: First Time Homebuyer Tax Credit of $8000 is good through the end of the year.

The strategy:

1. GIFT your child the down minimum payment (3.5% of selling price)
2. ASK the seller to pay the closing costs in your offer, so your kid needs NO cash at all.
3. SNAG a cheap property in the best location your kid can afford

Be prepared for this:

1. MULTIPLE OFFERS on lender foreclosed properties for sale
2. SELLERS insisting on an approval with a LENDER (not just a letter from the mortgage person)
3. A LONGER time line than you are expecting

10 things not to worry about:

1.Rates will go lower. FHA loans have the ability to be easily re-written if rates drop (streamline refinance
2. Real estate will be cheaper. So what? Think long term.
3. Your kid isn't "ready". Most first time buyers do not have the perspective to understand the benefit of the tax credit, or the silver lining of economic downturns. Come to think of it, you probably weren't "ready" when he was born.
4. Going on the loan with your kid. If your kid has no job now, or just can't afford to buy, you can co-sign.
5. Finding the "perfect" house/condo. It is a starter house, for crying out loud. Do not expect lender foreclosures to be pretty
6. FHA closing costs are "too high". Yep, FHA will have slightly higher closing costs than conventional. Seller may not pay closing costs. You can gift your kid closing costs, too.
7. What if my kid loses his job? "What if's" are the biggest reason for missed opportunities!
8. The real estate market is just too confusing! That is why you should find a great real estate agent
9.Getting a loan is a big hassle! Get preapproved first with a great mortgage person
10. Where will I get the cash to help my kid? How about an equity line or retirement account? Maybe Grandma has the money?

Get your kid set and maybe you could move in with him someday. (double eek!)
Maybe not.

This article was written by: Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area and was posted on Active Rain

Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com

Seller's Home Appeal for Today's Market

After years of hearing from successful sellers that they didn't have to do a thing to sell, they now need to understand how they can stand out from their competition. Here is a handy list to help sellers determine if some features in their home might need some attention.

• Test all door and cabinet knobs. Replace mismatched or inexpensive hardware for a quick update. Buyers rarely can get beyond a knob that comes off in their hand as they attempt to use a door.
• Take the time to paint walls, trim and ceilings. Keep adjoining rooms in one color palette, which will make your home appear larger. Clean up spills from messy painters. Hire professionals to paint mullions on windows and staircase spindles.
• Slipcover mismatched furniture in a room that requires visual unification.
  Discover ways to organize day-to-day room needs. Substantial wicker baskets or square stainless steel or brass containers can organize magazines, remote controls and toys. Books provide a good look, but vary them by laying some down and standing some up.
• Wallpaper is considered fill-in-the-blank decorating. No two people have the same taste in this instant decorator wannabee. If it's more than three years old, take it down and paint in a neutral color. And wallpaper borders are out.
• Simple furniture rearrangement can bring new life to a tired space. Float sofas and coffee tables away from walls for a designer look. Use area rugs to anchor furniture groupings on bare tile and wood floors. Place groupings of candles and clear glass bowls filled with natural potpourri, fresh fruit or glass crystals on side and coffee tables.
• Make sure there is balanced lighting in every room for dusk and evening showings. Dimmers help set the right tone.
• Polish and wax hardwood floors to brighten and blend an old finish.
• Clean every surface until it shimmers and shines. Clean can seal a deal. Don't forget the windows.
• Purchase the best quality carpet pad which can make any new carpeting "cushy," and home buyers love cushy. Stay away from shag styles; buyers know it won't be around long in style cycles.
• Streamline window fashions. Heavy drapes are in the minority. Think "let the light shine in" when placing blinds and shades. Light and bright can overcome other issues with a home.
• Freshen-up closets with closet organizers to maximize storage space and paint a neutral, washable color. Make sure buyers can see the back of all closets and cupboards. Lighting is an often overlooked feature in closets, but buyers will always turn on lights when viewing a closet, big or small. Thinning closets, cabinets, basements, attics and garages will also help your storage spaces look larger. If you can't part with items, rent a storage locker to hold items for decision making later.
• Don't forget the basement; dark, dirty and musty basements are a turn-off to buyers. Add extra lighting, paint the floor and vacuum out all the cobwebs. Organize storage areas and take the time to clean the washing machine and dryer. To spruce up the hot water heater and furnace, wipe down with a strong cleaner. Scrub the laundry tub and sweep left-over leaves out of exterior stairs and window wells. Run a dehumidifier to reduce basement moisture.
• Take a good look from the street or road at the front of your home. Look for shrubs that are overgrown or dead and remove and replace them with shrubs or plants that are to scaled to your home. Small inexpensive bushes send the wrong message.
• Limit yard ornaments to a favored few. Excess ornaments can make yards look busy and buyers might want them included in a purchase contract.
• Paint and refresh yard lights, flagpoles, mailboxes, window boxes, fences and trellis. Don't forget the swing set or play equipment.
• Replace broken bricks on terraces, cracked concrete patios and steps.
• Restore screens on porches and lanai's. Dirty, rusty and ripped screens limit functionality to homebuyers.
• Don't leave pets unattended for property showings, especially if you think they could be aggressive or territorial around strangers.
• Have carpets and area rugs cleaned before showing your home to potential buyers. Those allergic to animal dander and hair, even if they can't see your pet will know when their eyes and nose start to alert them to an allergic reaction. Many will not purchase a home that poses strong allergy issues.
• A barking dog or overly-friendly cats can kill a showing. Be pro-active and take your pets off site for showings. Hire a dog walker to occupy pets if you can't be home.

Written by: Mark Nash / Realty Times

Thinking about Buying or Selling?

Call Alvin's Team Today! 800-666-4718

Or visit our website: www.LivingLakeTahoe.com

Home Buying!

Whether you've spent years saving and preparing to buy a home, or you're unsure if you can afford it, the questions surrounding home buying can feel endless.You can find the answers - and peace of mind - by working with Coldwell Banker the industry leader in experience and service.Here are some tips to help you become your own landlord through home buying.

Hire a real estate professional.

An important first step is selecting a home buying professional to help you find your dream home and fine-tune your financial expectations. Working with a buyer agent is worth consideration because he or she is legally responsible for representing the buyer's interest in a real estate transaction. Before making a decision, however, have a realtor explain the pros and cons of using a buyer agent versus a dual agent. Your Coldwell Banker Associate can guide you through every step of home buying.

Shop for mortgage rates and terms.

A difference of even half a percentage point can mean a considerable savings over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35 per month. Over 30 years, that's $12,600.

Prequalify for a loan.

Also early on, you'll want to get prequalified for a mortgage loan, which determines how much you can afford. It allows you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious about home buying and can afford to buy the property.

Outline What You Want.

The next step in home buying is to create a realistic idea of the property you'd like to buy. What features are most important to you? Make two lists: one of the items you can't live without and one of the features you would enjoy. Refine the lists as you house-hunt. It is also helpful to search online to see what is currently available on the market. Your real estate professional can then show you houses that meet your expectations.

Visit properties.

Now you're ready to visit houses. Ask your Coldwell Banker Associate to help in your home buying process by arranging showings. Be sure to keep track of the properties you've seen. Each time you venture out to see more properties, revisit your notes to immediately eliminate any that clearly do not meet your standards.

Know the features that help or hurt resale.

In some areas, a swimming pool actually detracts from a home's value and makes it harder to sell. In neighborhoods with two-car, attached garages, a single-car or detached garage may affect the home buying prospects and future value. Your Coldwell Banker professional can point out features that hurt or help resale value.

Rate the houses you tour.

After touring each home, write down what you liked and didn't like. Develop a rating system that will help narrow the home buying field. For example, pick the house you like best on day one and compare all other houses to it. When you find a better one, use the new favorite as the standard. Avoid trying to track more than four top choices at any given time since this can quickly become overwhelming.

Make an offer.

Once you've pinpointed your dream house, it's time to get serious about the financial and contractual side of the purchase. Let your Coldwell Banker Associate guide you through this sensitive home buying process. Because you and the seller have different goals, rely on your Coldwell Banker agent's experience and expertise to bring order and calm to the process - and help both parties reach a favorable outcome.

Arrange for a home inspection.

After your offer is accepted, set up a home inspection. It's common to find problems, including leaky roofs, cracked walls, insect infestations and foundation problems. Your real estate professional can help find a reputable inspector, and will negotiate to get you the most for your money once the inspector's report is final. If you negotiate repairs as part of the purchase, ask for a "walk through" before finalizing the home buying paperwork. Ask your real estate expert about home protection plans, which may save you money in the near future.

Close.

Before your closing date, make sure you've made all necessary deposits and completed the paperwork - including mortgage, title, homeowner's insurance and any other paperwork required by local or state governments when home buying. Your Coldwell Banker agent will be there to help you complete that closing checklist and avoid any last-minute snags. You deserve to enjoy every moment of the home buying process.

Prepare for life in your new home.

Before rolling out the welcome mat, consider some moving basics: arranging for an alarm company, turning on electricity, water and gas, cleaning or replacing the carpet, and notifying your local post office of your new address. The best time for renovations is often before you move in.

Thinking about Buying or Selling?

Call Alvin's Team Today! 877-651-7810

Or visit our website: www.LivingLakeTahoe.com

Real Estate Outlook: Promising Numbers

The good news keeps rolling in about the small but important turnaround underway in the home real estate market.

Last week's headliner was the second straight monthly gain in pending home sales -- up nearly 11 percent in the Northeast, 15 percent in the Midwest, and 4.4 percent in the Southern states. Only the Western region saw a decline at 13.5 percent.

On top of that, the ability of consumers to buy a house, as measured by the National Association of Realtors' Affordability Index, hit a record new high last month thanks to declining home prices and record-low mortgage rates.

To put it bluntly: Median priced houses haven't been more affordable to more households in decades!

Mortgage rates continued to drop last week -- even from the record lows the week before, according to the Mortgage Bankers Association. Thirty year rates now average just 4.6 percent and 15-year fixed loans average 4.45 percent with about a point.

Not surprisingly, applications for new mortgages to buy houses and condos jumped again for the third straight week -- up about 1.4 percent for FHA loans and one percent for conventional mortgages.

Lawrence Yun, chief economist for the National Association of Realtors, agreed that the pending home sales and affordability numbers are promising, but he said the market still has a ways to go before it's really at rebound stage.

He also noted reports by realty firms of higher numbers of shoppers visiting open houses, checking online listings and following up with agents. Those "recent increases in shopping activity," he said, "are hopeful indicators that we'll see some additional sales gains" in the weeks ahead.

Meanwhile, there were other positive economic signs popping up like spring daffodils. For example, both the major indexes that measure consumer confidence, which is a key driver of home buying, were up slightly in the last month. The University of Michigan's survey and the Conference Board's index both registered small gains. Both, however, remain at low levels in comparison to non-recession periods in past years.

And consumer spending registered a small increase, up by seven tenths of a percent in the last month. Personal income was up slightly as well.

All in all not a bad set of reports in the middle of an economic recession and financial crisis.

That doesn't mean happy days are here again, but they do point to much better days for real estate as we proceed through the year.

Written by: Kenneth R. Harney / Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com

Investor Report: Refinancings

Small-scale real estate investors got a pleasant surprise last week when Fannie Mae and Freddie Mac said they'd refinance potentially thousands of mortgages on rental and second homes as part of the Obama administration's massive housing relief effort.

The White House had announced last month that its refinancing effort would be for owner-occupied principal residences whose loans are either owned or have been guaranteed by Fannie or Freddie in mortgage-backed securities.

But when the two companies sent details of their upcoming programs to lenders last week, investor loans and mortgages on second homes WERE included among those eligible for refinancings.

A Freddie Mac spokesman, Brad German, explained that investors loans were included because refinancings can “help reduce renter evictions by putting landlords in a (more affordable) refi that improves their chance of success.”

That's excellent news for some investors, but it won't help out everybody.

Here's a quick overview of who's eligible and how to apply:

First, your investment property or second home loan must be owned or guaranteed by either Fannie or Freddie. Ask your loan servicer. Or you can go to websites set up by the companies to speed the process - Fannie Mae or FreddieMac.

If your mortgage is in some other institution's portfolio ... or in a private mortgage security, this program isn't for you.

Next, make a rough estimate of your current loan to value ratio on the property. If your mortgage balance does not exceed your property value by more than five percent, you're eligible.

Say you bought a rental duplex a few years back for $500,000 with a first mortgage of $400,000 at seven and a half percent that was acquired by Fannie Mae. You'd love to refinance that to today's much lower rates in the fives or sixes to increase your cash flow.

Because of local property value declines, say your duplex is now worth about the amount of your loan balance. That precludes you from refinancing from most sources, but under Fannie's special program, you'll be eligible … PROVIDED your loan balance does not exceed the property value by five percent.

There's another hoop to jump through: Your payment history on the mortgage needs to be just about flawless -- no thirty day late payments during the past 12 months -- or you won't get a refi.

Two additional, positive details to be aware of: Your credit score WON'T be a problem because Fannie and Freddie have agreed to waive their usual minimums, and you WON'T have to pay for new mortgage insurance.

Written by: Kenneth R. Harney / Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or visit our website: www.LivingLakeTahoe.com

Choose your realtor wisely!

More than 2 million people in the United States have earned real estate licenses.
However, real estate is a tough business with a steep dropout rate, and the result is that only a small percentage of those with licenses actively help buyers and sellers.

The National Association of realtor (NAR) includes 1 million brokers and salespeople, individuals bound together with a strong Code of Ethics, extensive training opportunities and a wealth of community information. NAR members are routinely active in PTAs, local government committees and a variety of neighborhood organizations. Being actively involved in community affairs provides realtor with a better understanding of the area in which they are selling.

Why?

Buying and selling real estate is a complex matter. At first it might seem that by checking local picture books or online sites you could quickly find the right home at the right price.
But a basic rule in real estate is that all properties are unique. No two properties -- even two identical models on the same street -- are precisely and exactly alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike.

In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local realtors who serve your area.

How do you choose?

In every community you're likely to find a number of realty brokerages. Because there is heated competition, local realtor must fight hard to succeed in your community.
The best place to find a local realtor is right at you doorstep, at Coldwell Banker, with their extensive listing of community professionals and properties nationwide, there’s an agent for everyone! Other sources include open houses, local advertising, Web sites, referrals from other realtor recommendations from neighbors and suggestions from lenders, attorneys, financial planners and CPAs. The experiences and recommendations of past clients can be invaluable.

In many cases buyers will interview several realtors before selecting one professional with whom to work. These interviews represent a good opportunity to consider such issues as training, experience, representation and professional certifications.

What should you expect when you work with a realtor?

Once you select a realtor you will want to establish a proper business relationship. You likely know that some realtor represent sellers while others represent buyers. Each realtor will explain the options available, describe how he or she typically works with individuals and provide you with complete agency disclosures (the ins and outs of your relationship with the agent) as required in your state.

Once hired for the job, the realtor will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given situation. Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be set in stone. During your time in the marketplace Alvin Steinberg will keep you updated and alert you to each step in the transaction process.

Thinking about Buying or Selling?

Call Alvin's Team Today! 877-651-7810

Or visit our website: www.LivingLakeTahoe.com

Are You Really Ready To Buy A Home?

The news is all good, interest rates are lower than ever. Housing prices are down. The first time home buyers $8,000 tax credit is a great incentive to purchase a home this year. What to do first?

• Find a reputable lender. Find out how much you are qualified for, make sure that you look at what your mortgage payment will be per month, include your real estate taxes in this computation. You want to know this first, before even looking at homes. I insist on this with my buyers. Looking at homes with a price range you think will work often leads to heartache.
• Ask about first time home buyer programs. There are many good programs available to you, make sure you investigate all the options.
• Find a reputable Realtor. Remember, you will be spending time with this person, looking to them for advice, putting your trust in them to assist you with the largest purchase you will make in a long time. This is not a car, this is your home!
• Be ready to make changes. You should have a wants and needs list. But be prepared to make adjustments in these lists as you visit more homes. Perhaps the homes in your price range will not have that extra half bath you thought you couldn't live without. Maybe the home will not have a granite countertop. Be flexible and realistic.
• Be honest with yourself. If you fall in love with the idea of a particular home, but for instance it will require too much work that you are not capable of doing or paying for, move on.
• Don't assume that all homes are overpriced. Putting in low ball offers can really become problematic. Let's say you find the home of your dreams, you really want this home and put in an offer. Because you have read somewhere that all homes are overpriced by at least 25% you base your offer on that premise. The seller does not have to sell, and never responds to you. You may anger them so much they may not look at any other offer you make as serious. Ask your Realtor to do a buyers market analysis for you. Trust your Realtor to do their job! A good Realtor will tell you if the house is priced correctly or not.
• If you want that bargain priced home, look at foreclosures. Even short sales have to be approved by the bank, and they are not so willing to let it go for the price it might fetch when it has been foreclosed on and left vacant for a year. This is a reality of todays market.
• Be patient. It could take time, especially in the lower price range.

This article was written by: Andrea Swiedler and posted on Active Rain

Thinking about Buying or Selling?

Call Alvin's Team Today! 800-666-4718

Or visit our website: www.LivingLakeTahoe.com