At this very special time of the year
the most sacred time for our Ancestors
I send to each of you
my beloved family and friends
this Blessing
with words taken from ancient Celtic prayers.
During this time of turmoil in our world
I ask you to send with me
your thoughts and prayers for wisdom
peace
and sanity
to prevail
for all Nations
for all peoples
I am grateful to have each of you in my life
I send my love and prayers to you
at this time of Thanksgiving and Harvest Blessings
May your life be enriched, as you have enriched mine.
~Anacoana~
Friday, November 26, 2010
Wednesday, November 24, 2010
I want to share my Thanksgiving email to the Sedona Verde Valley Association of REALTORS®. (Why should they get all of the fun?) While it's directed at real estate agents, anybody can enjoy it, so please do.
********************************************
Thanksgiving, yay! I love the idea of Thanksgiving. A day specially set aside to gather up our family and friends and loved ones and give thanks for our blessings and on top of that, eat a feast. How simple and elegant is that? My youngest son long ago designated Thanksgiving as his favorite holiday of the year. He says that it’s the purest of all days – no stress, no obligations, just the pure enjoyment of your loved ones, your blessings, and the feast.
I said this to a guy the other day. His response was along the lines of “Bah! What do I have to be thankful for? I’ve lost my investment properties, I filed bankruptcy this year, I had to accept a horrible loan mod on my house, I have 63 dollars in the bank and the bills are piling up, and if this next escrow doesn’t close I’m in big trouble! Thanksgiving, my…..derriere!”
Wow.
We all have stress. We’re all living in and trying to deal with this wretched economy. We all wish that the money situation throughout the whole world was better. However, I venture to guess that my son will pull out of his financial problems sooner than REALTOR® Scrooge because my son is focusing on his blessings, his “haves,” as opposed to his “don’t haves” and “used to haves.”
I learned a long time ago that when we notice a good thing it gets bigger. The problem is that when we obsess about a scary thing, it gets bigger, too. I’m not saying “Put on the rose colored glasses and be irresponsible - ignore the distress in our lives. Just pretend that it isn’t happening!” I am saying that the thing that we feed grows. The thing that gets our attention is the thing that thrives.
Can I give you an example? Let’s say that I have floor duty. Listen to this talk that I give myself while I’m drinking my coffee: “Oh, Boy. I am so freakin’ broke. I’m in deep doo-doo for sure! If things don’t turn around today I might as well just go put my head in the oven. I need a good escrow right now! Today! Yes! I will make somebody buy something! I will!” Or, let’s pretend that instead I think, “Wow. Great coffee! Look at that sunrise. Hi, bird! I am so lucky to live in a place that I can see this. I’m lucky to have eyes to see it with. Hey! Good job, God! You know, I hope that I can help somebody today. Those money problems? Whatever. I have faith that if I do the right thing it’ll all work out OK.” So when those buyers walk in, which attitude are they going to want to hang around and do business with? Who are they going to trust to take care of their best interests?
Is it really that simple? Yes, I think that it is. I do believe that good energy begets more good energy. I also believe that negativity attracts more negativity, and then we get even more negative and there you go – there’s a head in the oven.
Believe that happy thoughts bring happy things. What have we got to lose? Call me a crackpot and a Pollyanna if you will – I’m used to it. Whatever you choose to believe is up to you.
BUT…………let me give you another example of thoughts becoming reality. I have a shirt. I love this shirt – it fits perfectly, I adore the color, and whenever I wear it I feel good and get lots of compliments. You know what I’m talking about – we all have one of those shirts. Since I’m so attached to this shirt I take good care of it. If it falls off of the hanger it doesn’t lie crumpled up on the closet floor – it gets picked up and lovingly hung back where it belongs. This favorite shirt of mine has lasted for years, and it will still be around when I’m 60. I have another shirt that I don’t like one bit. It’s scratchy, it rubs the back of my neck, when I wear it makes my skin look green and it adds an easy 10 pounds. This one I let the children wear for dress-up and cooking and Easter-egg painting. When they’re done it gets tossed into the wash with the Levi’s, on hot. THIS shirt is obviously of shoddy workmanship and it has always been a waste of time and money because look – it’s stained and falling apart.
The thing is that these 2 shirts were almost identical. They’re the same brand and the same material - different colors and a little different pattern. I bought them on the same day. But since I value one and resent the other, my actions have made them into entirely different animals.
So what if the same principal is true of real estate or the people that we meet, or our careers, or buyers, or our listings? Take the paragraph about the shirts and substitute the idea of a spouse or a friend or a house or a client. The concept is the same, and so is the result. Negative thoughts and feelings can turn a simple thing into a pain in the neck that we’re glad to see go into the rag bag or the expired file. An attitude is all that it took to nurture one and ruin the other.
Some of you know that I volunteer for Trauma Intervention Programs. Not to add a downer, but I want to make an observation. I was at a home the other day to be with a woman whose husband had just committed suicide. The economy had gotten them. He left her a note that said that he had lost everything and so he was checking out. I hugged his wife who was inconsolable and crying her eyes out. I thought to myself that his priorities were skewed – he certainly had not lost everything. He just perceived that he had, and he forgot who and what are really important. He didn’t count his blessings.
I’ll start. My blessings are:
My family. I have a husband that is a saint, 2 wonderful sons, 4 amusing and adorable grandchildren, 2 daughters-in-law that complement the family beautifully, and in-laws that have accepted and welcomed me. I am blessed.
My health. Sure, it’s not perfect. Without medication my cholesterol goes astonishingly high. I need to go back on my diet and get back to the exercising. My eyes went south when I turned 40, and the readers are getting thicker and my arms seem to be getting shorter. My hair seems to have forgotten that it belongs on my head instead of moving to new and unfamiliar places. Gravity sucks, and that’s all OK. These are the worst of my complaints, and for that I am blessed.
My mind. As strange as my brain can be, I like it. It’s not schizophrenic or damaged (at least I don’t think that it is) and it usually operates pretty well. I am blessed with a working brain.
You guys. These past few years have been incredible. I am honored to have been part of your leadership team. I am amazed at the caliber of the people that I’ve gotten to work with – this includes staff, and the leadership ahead of me and those that are coming up, and you. I’ve learned, I’ve made friends, I’ve curled my lip a time or two. I grew mentally and emotionally. I’ve learned what I am capable of and I’ve learned restraint. I went to places that I would not have chosen for myself and absolutely loved. I have been blessed by you, my cohorts in SVVAR. Thank you.
My home, my neighborhood, my city, my community, my county, my state, my country. I love where I live. Even if we think that our elected politicians are idiots, we got to elect them and we get to say what we think about them. We are blessed.
Now - your turn. What are your blessings? I would love to hear about them.
Have a blessed Thanksgiving!
********************************************
Thanksgiving, yay! I love the idea of Thanksgiving. A day specially set aside to gather up our family and friends and loved ones and give thanks for our blessings and on top of that, eat a feast. How simple and elegant is that? My youngest son long ago designated Thanksgiving as his favorite holiday of the year. He says that it’s the purest of all days – no stress, no obligations, just the pure enjoyment of your loved ones, your blessings, and the feast.
I said this to a guy the other day. His response was along the lines of “Bah! What do I have to be thankful for? I’ve lost my investment properties, I filed bankruptcy this year, I had to accept a horrible loan mod on my house, I have 63 dollars in the bank and the bills are piling up, and if this next escrow doesn’t close I’m in big trouble! Thanksgiving, my…..derriere!”
Wow.
We all have stress. We’re all living in and trying to deal with this wretched economy. We all wish that the money situation throughout the whole world was better. However, I venture to guess that my son will pull out of his financial problems sooner than REALTOR® Scrooge because my son is focusing on his blessings, his “haves,” as opposed to his “don’t haves” and “used to haves.”
I learned a long time ago that when we notice a good thing it gets bigger. The problem is that when we obsess about a scary thing, it gets bigger, too. I’m not saying “Put on the rose colored glasses and be irresponsible - ignore the distress in our lives. Just pretend that it isn’t happening!” I am saying that the thing that we feed grows. The thing that gets our attention is the thing that thrives.
Can I give you an example? Let’s say that I have floor duty. Listen to this talk that I give myself while I’m drinking my coffee: “Oh, Boy. I am so freakin’ broke. I’m in deep doo-doo for sure! If things don’t turn around today I might as well just go put my head in the oven. I need a good escrow right now! Today! Yes! I will make somebody buy something! I will!” Or, let’s pretend that instead I think, “Wow. Great coffee! Look at that sunrise. Hi, bird! I am so lucky to live in a place that I can see this. I’m lucky to have eyes to see it with. Hey! Good job, God! You know, I hope that I can help somebody today. Those money problems? Whatever. I have faith that if I do the right thing it’ll all work out OK.” So when those buyers walk in, which attitude are they going to want to hang around and do business with? Who are they going to trust to take care of their best interests?
Is it really that simple? Yes, I think that it is. I do believe that good energy begets more good energy. I also believe that negativity attracts more negativity, and then we get even more negative and there you go – there’s a head in the oven.
Believe that happy thoughts bring happy things. What have we got to lose? Call me a crackpot and a Pollyanna if you will – I’m used to it. Whatever you choose to believe is up to you.
BUT…………let me give you another example of thoughts becoming reality. I have a shirt. I love this shirt – it fits perfectly, I adore the color, and whenever I wear it I feel good and get lots of compliments. You know what I’m talking about – we all have one of those shirts. Since I’m so attached to this shirt I take good care of it. If it falls off of the hanger it doesn’t lie crumpled up on the closet floor – it gets picked up and lovingly hung back where it belongs. This favorite shirt of mine has lasted for years, and it will still be around when I’m 60. I have another shirt that I don’t like one bit. It’s scratchy, it rubs the back of my neck, when I wear it makes my skin look green and it adds an easy 10 pounds. This one I let the children wear for dress-up and cooking and Easter-egg painting. When they’re done it gets tossed into the wash with the Levi’s, on hot. THIS shirt is obviously of shoddy workmanship and it has always been a waste of time and money because look – it’s stained and falling apart.
The thing is that these 2 shirts were almost identical. They’re the same brand and the same material - different colors and a little different pattern. I bought them on the same day. But since I value one and resent the other, my actions have made them into entirely different animals.
So what if the same principal is true of real estate or the people that we meet, or our careers, or buyers, or our listings? Take the paragraph about the shirts and substitute the idea of a spouse or a friend or a house or a client. The concept is the same, and so is the result. Negative thoughts and feelings can turn a simple thing into a pain in the neck that we’re glad to see go into the rag bag or the expired file. An attitude is all that it took to nurture one and ruin the other.
Some of you know that I volunteer for Trauma Intervention Programs. Not to add a downer, but I want to make an observation. I was at a home the other day to be with a woman whose husband had just committed suicide. The economy had gotten them. He left her a note that said that he had lost everything and so he was checking out. I hugged his wife who was inconsolable and crying her eyes out. I thought to myself that his priorities were skewed – he certainly had not lost everything. He just perceived that he had, and he forgot who and what are really important. He didn’t count his blessings.
I’ll start. My blessings are:
My family. I have a husband that is a saint, 2 wonderful sons, 4 amusing and adorable grandchildren, 2 daughters-in-law that complement the family beautifully, and in-laws that have accepted and welcomed me. I am blessed.
My health. Sure, it’s not perfect. Without medication my cholesterol goes astonishingly high. I need to go back on my diet and get back to the exercising. My eyes went south when I turned 40, and the readers are getting thicker and my arms seem to be getting shorter. My hair seems to have forgotten that it belongs on my head instead of moving to new and unfamiliar places. Gravity sucks, and that’s all OK. These are the worst of my complaints, and for that I am blessed.
My mind. As strange as my brain can be, I like it. It’s not schizophrenic or damaged (at least I don’t think that it is) and it usually operates pretty well. I am blessed with a working brain.
You guys. These past few years have been incredible. I am honored to have been part of your leadership team. I am amazed at the caliber of the people that I’ve gotten to work with – this includes staff, and the leadership ahead of me and those that are coming up, and you. I’ve learned, I’ve made friends, I’ve curled my lip a time or two. I grew mentally and emotionally. I’ve learned what I am capable of and I’ve learned restraint. I went to places that I would not have chosen for myself and absolutely loved. I have been blessed by you, my cohorts in SVVAR. Thank you.
My home, my neighborhood, my city, my community, my county, my state, my country. I love where I live. Even if we think that our elected politicians are idiots, we got to elect them and we get to say what we think about them. We are blessed.
Now - your turn. What are your blessings? I would love to hear about them.
Have a blessed Thanksgiving!
Tuesday, November 23, 2010
Totally plagiarized from Mark Miskiel.
Hey all,
If you have a transaction in the queue or a potential transaction that is ready to come together, you may wish to mention this to your clients to PROTECT YOUR TRANSACTION.
As black Friday approaches and the Christmas shopping season starts, caution your clients to resist the store promotions where you open a new credit account and get a big discount at the register for doing so.
While it may be tempting to take advantage of the in store promotion, opening that account could potentially harm their credit score enough to preventing closing their mortgage loan or making their pre-qualification null and void.
Opening “New Credit” accounts can impact a borrower’s credit score up to 85 points because the credit bureaus take the following into the consideration.
Number of recently opened accounts
Proportion of newly opened accounts to all open accounts
Number of recent credit inquiries
Amount of time since the recent inquiries
It’s no news that mortgage lenders have been increasing the minimum credit score to obtain a mortgage. Also, there is a new requirement for the lenders to pull a “soft” credit inquiry right up to the point of funding the loan to ensure the borrowers credit profile has not changed. While the in store promotions may look great, the borrowers may want to carefully consider if accepting such a promotion is worth the risk of no longer qualifying for a mortgage.
I am here to help if you have questions about this or other lending topics.
Happy Holidays!
Mark A. Miskiel - Residential Lending Specialist
The Lending Company – Verde Valley
Office: (928) 634-7987 (rings to cell when out of office)
e-Fax: (480)-371-1150
www.Lender4you.com
NMLS # 198563
Not all loan officers are required to be licensed.
I am proud to be a licensed loan officer!
Hey all,
If you have a transaction in the queue or a potential transaction that is ready to come together, you may wish to mention this to your clients to PROTECT YOUR TRANSACTION.
As black Friday approaches and the Christmas shopping season starts, caution your clients to resist the store promotions where you open a new credit account and get a big discount at the register for doing so.
While it may be tempting to take advantage of the in store promotion, opening that account could potentially harm their credit score enough to preventing closing their mortgage loan or making their pre-qualification null and void.
Opening “New Credit” accounts can impact a borrower’s credit score up to 85 points because the credit bureaus take the following into the consideration.
Number of recently opened accounts
Proportion of newly opened accounts to all open accounts
Number of recent credit inquiries
Amount of time since the recent inquiries
It’s no news that mortgage lenders have been increasing the minimum credit score to obtain a mortgage. Also, there is a new requirement for the lenders to pull a “soft” credit inquiry right up to the point of funding the loan to ensure the borrowers credit profile has not changed. While the in store promotions may look great, the borrowers may want to carefully consider if accepting such a promotion is worth the risk of no longer qualifying for a mortgage.
I am here to help if you have questions about this or other lending topics.
Happy Holidays!
Mark A. Miskiel - Residential Lending Specialist
The Lending Company – Verde Valley
Office: (928) 634-7987 (rings to cell when out of office)
e-Fax: (480)-371-1150
www.Lender4you.com
NMLS # 198563
Not all loan officers are required to be licensed.
I am proud to be a licensed loan officer!
Saturday, November 20, 2010
An email from a good lender.
Hey all,
Mortgage rates have reached a 3 month peak. If you have fence sitters, it may be prudent to let them know what is going on as they should seriously consider purchasing that home they were thinking of.
According to Bankrate.com, the benchmark 30-year fixed rate mortgage averaged 4.62 percent. This is despite the government purchasing of Treasury Notes that was supposed to keep the rates low.
For the complete article, the link is below. You may need to copy and past the link into your browsers window to make it work.
http://www.bankrate.com/finance/mortgages/mortgage-rates-leap-to-3-month-peak.aspx
Have an outstanding weekend!
Mark A. Miskiel - Residential Lending Specialist
The Lending Company – Verde Valley
Office: (928) 634-7987 (rings to cell when out of office)
e-Fax: (480)-371-1150
www.Lender4you.com
NMLS # 198563
Not all loan officers are required to be licensed.
I am proud to be a licensed loan officer!
Hey all,
Mortgage rates have reached a 3 month peak. If you have fence sitters, it may be prudent to let them know what is going on as they should seriously consider purchasing that home they were thinking of.
According to Bankrate.com, the benchmark 30-year fixed rate mortgage averaged 4.62 percent. This is despite the government purchasing of Treasury Notes that was supposed to keep the rates low.
For the complete article, the link is below. You may need to copy and past the link into your browsers window to make it work.
http://www.bankrate.com/finance/mortgages/mortgage-rates-leap-to-3-month-peak.aspx
Have an outstanding weekend!
Mark A. Miskiel - Residential Lending Specialist
The Lending Company – Verde Valley
Office: (928) 634-7987 (rings to cell when out of office)
e-Fax: (480)-371-1150
www.Lender4you.com
NMLS # 198563
Not all loan officers are required to be licensed.
I am proud to be a licensed loan officer!
Friday, November 19, 2010
Tuesday, November 16, 2010
Understand which mortgage loan is best for you so your budget is not stretched too thin.
By: G. M. Filisko
The basics of mortgage financing:
The most important features of your mortgage loan are its term and interest rate. Mortgages typically come in 15-, 20-, 30- or 40-year lengths. The longer the term, the lower your monthly payment. However, the tradeoff for a lower payment is that the longer the life of your loan, the more interest you’ll pay.
Mortgage interest rates generally come in two flavors: fixed and adjustable. A fixed rate allows you to lock in your interest rate for the entire mortgage term. That’s attractive if you’re risk-averse, on a fixed income, or when interest rates are low.
The risks and rewards of ARMs:
An adjustable-rate mortgage does just what its name implies: Its interest rate adjusts at a future date listed in the loan documents. It moves up and down according to a particular financial market index, such as Treasury bills. A 3/1 ARM will have the same interest rate for three years and then adjust every year after that; likewise a 5/1 ARM remains unchanged until the five-year mark. Typically, ARMs include a cap on how much the interest rate can increase, such as 3% at each adjustment, or 5% over the life of the loan.
Why agree to such uncertainty? ARMs can be a good choice if you expect your income to grow significantly in the coming years. The interest rate on some—but not all—ARMs can even drop if the benchmark to which they’re tied also dips. ARMs also often offer a lower interest rate than fixed-rate mortgages during the first few years of the mortgage, which means big savings for you—even if there’s only a half-point difference.
But if rates go up, your ARM payment will jump dramatically, so before you choose an ARM, answer these questions:
How much can my monthly payments increase at each adjustment?
How soon and how often can increases occur?
Can I afford the maximum increase permitted?
Do I expect my income to increase or decrease?
Am I paying down my loan balance each month, or is it staying the same or even increasing?
Do I plan to own the home for longer than the initial low-interest-rate period, or do I plan to sell before the rate adjusts?
Will I have to pay a penalty if I refinance into a lower-rate mortgage or sell my house?
What’s my goal in buying this property? Am I considering a riskier mortgage to buy a more expensive house than I can realistically afford?
Consider a government-backed mortgage loan
If you’ve saved less than the ideal downpayment of 20%, or your credit score isn’t high enough for you to qualify for a fixed-rate or ARM with a conventional lender, consider a government-backed loan from the Federal Housing Administration or Department of Veterans Affairs.
FHA offers adjustable and fixed-rate loans at reduced interest rates and with as little as 3.5% down and VA offers no-money-down loans. FHA and VA also let you use cash gifts from family members.
Before you decide on any mortgage, remember that slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment. To determine how much your monthly payment will be with various terms and loan amounts, try REALTOR.com’s online mortgage calculators.
The basics of mortgage financing:
The most important features of your mortgage loan are its term and interest rate. Mortgages typically come in 15-, 20-, 30- or 40-year lengths. The longer the term, the lower your monthly payment. However, the tradeoff for a lower payment is that the longer the life of your loan, the more interest you’ll pay.
Mortgage interest rates generally come in two flavors: fixed and adjustable. A fixed rate allows you to lock in your interest rate for the entire mortgage term. That’s attractive if you’re risk-averse, on a fixed income, or when interest rates are low.
The risks and rewards of ARMs:
An adjustable-rate mortgage does just what its name implies: Its interest rate adjusts at a future date listed in the loan documents. It moves up and down according to a particular financial market index, such as Treasury bills. A 3/1 ARM will have the same interest rate for three years and then adjust every year after that; likewise a 5/1 ARM remains unchanged until the five-year mark. Typically, ARMs include a cap on how much the interest rate can increase, such as 3% at each adjustment, or 5% over the life of the loan.
Why agree to such uncertainty? ARMs can be a good choice if you expect your income to grow significantly in the coming years. The interest rate on some—but not all—ARMs can even drop if the benchmark to which they’re tied also dips. ARMs also often offer a lower interest rate than fixed-rate mortgages during the first few years of the mortgage, which means big savings for you—even if there’s only a half-point difference.
But if rates go up, your ARM payment will jump dramatically, so before you choose an ARM, answer these questions:
How much can my monthly payments increase at each adjustment?
How soon and how often can increases occur?
Can I afford the maximum increase permitted?
Do I expect my income to increase or decrease?
Am I paying down my loan balance each month, or is it staying the same or even increasing?
Do I plan to own the home for longer than the initial low-interest-rate period, or do I plan to sell before the rate adjusts?
Will I have to pay a penalty if I refinance into a lower-rate mortgage or sell my house?
What’s my goal in buying this property? Am I considering a riskier mortgage to buy a more expensive house than I can realistically afford?
Consider a government-backed mortgage loan
If you’ve saved less than the ideal downpayment of 20%, or your credit score isn’t high enough for you to qualify for a fixed-rate or ARM with a conventional lender, consider a government-backed loan from the Federal Housing Administration or Department of Veterans Affairs.
FHA offers adjustable and fixed-rate loans at reduced interest rates and with as little as 3.5% down and VA offers no-money-down loans. FHA and VA also let you use cash gifts from family members.
Before you decide on any mortgage, remember that slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment. To determine how much your monthly payment will be with various terms and loan amounts, try REALTOR.com’s online mortgage calculators.
Monday, November 15, 2010
It’s All About Perception. By Dan Polimino.
I speak with a lot of real estate agents on a daily basis and they all seem to be talking about how many deals are falling apart over inspection items.
If you are not familiar with what I am talking about, it is when a buyer puts a home under contract and then terminates the contract after the home inspection. The question is, why is this a growing trend now?
To answer that question, let’s take a look at two different time periods.
It’s 2005 and it’s a hot real estate market. Bill Smith has a home for sale and Tom Jones puts it under contract. Jones has an inspection done, items come up on the inspection, some minor and some more serious in nature. Jones doesn’t object to the inspection items, he doesn’t even bat an eyelash and moves on with the purchase of the home asking for nothing to be fixed.
Fast forward to 2010 and Bill Smith is selling his home, Tom Jones put it under contract and orders his inspection. Items come up on the inspection, some minor and some more serious in nature. Buyer and seller argue, haggle, and fight over who is going to fix what and how much. Jones is not happy and terminates the contract shortly thereafter.
What’s the difference between these two scenarios? What happened between 2005 and 2010? Did all of the homes in America all of a sudden fall into serious disrepair? I think not! The answer is, “It’s all about perception.” In 2005, buyers looked the other way on inspection items or thought “No problem, I’ll fix them myself.”
Buyers did not want anything to get in the way of them getting the home they wanted, not even inspection items. Today the buyer perception is, “I have the seller’s over a barrel, I am going get what I want, when I want it, and if I don’t win, I’ll take my money and go home or elsewhere.”
In most cases, deals should not be falling apart over inspection items. This can and should be a give-and-take compromise with both parties winning. I understand what the market is right now and buyers have an advantage, but I think that we can make even more progress in the recovery of the real estate market if we can get to a more equitable “perception.”
Dan Polimino is a Realtor with Fuller Sotheby’s International Realty.
I speak with a lot of real estate agents on a daily basis and they all seem to be talking about how many deals are falling apart over inspection items.
If you are not familiar with what I am talking about, it is when a buyer puts a home under contract and then terminates the contract after the home inspection. The question is, why is this a growing trend now?
To answer that question, let’s take a look at two different time periods.
It’s 2005 and it’s a hot real estate market. Bill Smith has a home for sale and Tom Jones puts it under contract. Jones has an inspection done, items come up on the inspection, some minor and some more serious in nature. Jones doesn’t object to the inspection items, he doesn’t even bat an eyelash and moves on with the purchase of the home asking for nothing to be fixed.
Fast forward to 2010 and Bill Smith is selling his home, Tom Jones put it under contract and orders his inspection. Items come up on the inspection, some minor and some more serious in nature. Buyer and seller argue, haggle, and fight over who is going to fix what and how much. Jones is not happy and terminates the contract shortly thereafter.
What’s the difference between these two scenarios? What happened between 2005 and 2010? Did all of the homes in America all of a sudden fall into serious disrepair? I think not! The answer is, “It’s all about perception.” In 2005, buyers looked the other way on inspection items or thought “No problem, I’ll fix them myself.”
Buyers did not want anything to get in the way of them getting the home they wanted, not even inspection items. Today the buyer perception is, “I have the seller’s over a barrel, I am going get what I want, when I want it, and if I don’t win, I’ll take my money and go home or elsewhere.”
In most cases, deals should not be falling apart over inspection items. This can and should be a give-and-take compromise with both parties winning. I understand what the market is right now and buyers have an advantage, but I think that we can make even more progress in the recovery of the real estate market if we can get to a more equitable “perception.”
Dan Polimino is a Realtor with Fuller Sotheby’s International Realty.
Friday, November 12, 2010
NAR prohibits sexual orientation discrimination!
NAR Bars Sexual Orientation Discrimination!
The change to Article 10 of the REALTORS® Code of Ethics passed in a roll-call vote by a greater than 9-to-1 margin.
It had been previously approved by the Professional Standards Committee and the Board of Directors at the 2010 Midyear Meetings in Washington D.C.
Here is the amended language of Article 10:
REALTORS® shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, or national origin, or sexual orientation.
REALTORS® shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, or national origin, or sexual orientation.
REALTORS®, in their real estate employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, handicap, familial status, or national origin, or sexual orientation.
A related recommendation amending Standard of Practice 10-3 was approved as well:
REALTORS® shall not print, display or circulate any statement or advertisement with respect to selling or renting of a property that indicates any preference, limitations or discrimination based on race, color, religion, sex, handicap, familial status, or national origin, or sexual orientation.The amendment was discussed prior to the vote.
A few of the questions raised were:
1. Is "sexual orientation," without qualifiers or any further explanation, the right phrasing?
2. Is NAR denying private property rights (ostensibly, the right of property owners to refuse to do business with people of a certain sexual orientation due to their moral beliefs)?
3. Should NAR precede the federal government in adding sexual orientation as a protected class?
In response to the third question, a delegate from Minneapolis pointed out that the purpose of the Code of Ethics was to hold REALTORS® to a higher standard. Another delegate who approved of the amendment said the Code of Ethics was a living document. Delegates approved the Code change by voice vote, but one delegate called for a vote by ballot. In ballot voting weighted by size of local association, the amendment passed by more than 93 percent.
- Brian Summerfield, REALTOR® Magazine
Mold Remediation: What to Expect When You Hire An Expert
By: Karin Beuerlein
Published: October 13, 2010
Mold remediation can be a pricey venture. Here’s what to look for and expect when you call in the professionals.
Who you gonna call?
Mold remediation is the Wild West of home improvement. The field largely is unregulated, and anybody can call himself an expert and call just about anything mold. There’s no required separation between who diagnoses the problem and who fixes it. And home inspectors, who evaluate your home’s major systems, don’t necessarily know much about mold remediation.When you need professional mold remediation, look for an independent consultant with credentials in mold remediation and investigation. Such professionals should:
Demonstrate completion of industry-approved coursework in mold investigation given by the American Board of Industrial Hygiene or the American Council for Accredited Certification (formerly the American Indoor Air Quality Council).
Provide a written report that includes lab results of air and surface samples.
Work independently from a mold remediation outfit.
Refrain from selling you products.
Investigate the mold
Mold remediation begins with an eyeball investigation that takes anywhere from 20 minutes to 2 hours, depending on where the problem is hiding--in plain sight or behind walls.Next, the consultant may suggest taking air and surface samples, necessary only to identify your particular mold for health or legal reasons. Always ask the mold remediation consultant why he wants to take samples: He should be able to articulate whatever hypothesis he is trying to confirm.
Make a mold removal plan
If cleanup is a simple DIY project, the consultant will advise you about procedures, protective equipment, and tools. He should also tell you where/what moisture problem gave birth to the spores. If cleanup is beyond amateur status, the consultant should draw up a mold remediation and removal plan that a professional mold remediation company or trusted demolition and building contractor will follow. Make sure the professionals you hire have a long track record, provide references, and are bonded and insured.Cleanup can be as simple as spraying and disinfecting drywall, or as complex as:
HVAC disinfection
Drywall, stud, and insulation removal
Cleaning personal belongings
HEPA (high-efficiency particulate air) filtration
How much it costs
Mold consultant: $250-$500 (which might include air and surface samples: always ask).
Air samples: $18-$225 apiece, depending on the laboratory.
Simple mold removal: $500 for surface mold removal.
Extensive mold remediation: $6,000-plus for severe infections that require extensive demolition, disinfection, and restoration.
Check your insurance
Homeowners insurance typically covers mold remediation and removal only if the problem results from a sudden emergency already covered under your policy, such as a burst pipe. Insurance usually doesn’t pay if the mold resulted from chronic moisture, deferred maintenance, or floodwaters (unless you carry flood insurance).As always, consult your insurance agent before contracting for work.Karin Beuerlein has covered home improvement and green living topics for HGTV.com, FineLiving.com, Better Homes & Gardens and the Chicago Tribune.
By: Karin Beuerlein
Published: October 13, 2010
Mold remediation can be a pricey venture. Here’s what to look for and expect when you call in the professionals.
Who you gonna call?
Mold remediation is the Wild West of home improvement. The field largely is unregulated, and anybody can call himself an expert and call just about anything mold. There’s no required separation between who diagnoses the problem and who fixes it. And home inspectors, who evaluate your home’s major systems, don’t necessarily know much about mold remediation.When you need professional mold remediation, look for an independent consultant with credentials in mold remediation and investigation. Such professionals should:
Demonstrate completion of industry-approved coursework in mold investigation given by the American Board of Industrial Hygiene or the American Council for Accredited Certification (formerly the American Indoor Air Quality Council).
Provide a written report that includes lab results of air and surface samples.
Work independently from a mold remediation outfit.
Refrain from selling you products.
Investigate the mold
Mold remediation begins with an eyeball investigation that takes anywhere from 20 minutes to 2 hours, depending on where the problem is hiding--in plain sight or behind walls.Next, the consultant may suggest taking air and surface samples, necessary only to identify your particular mold for health or legal reasons. Always ask the mold remediation consultant why he wants to take samples: He should be able to articulate whatever hypothesis he is trying to confirm.
Make a mold removal plan
If cleanup is a simple DIY project, the consultant will advise you about procedures, protective equipment, and tools. He should also tell you where/what moisture problem gave birth to the spores. If cleanup is beyond amateur status, the consultant should draw up a mold remediation and removal plan that a professional mold remediation company or trusted demolition and building contractor will follow. Make sure the professionals you hire have a long track record, provide references, and are bonded and insured.Cleanup can be as simple as spraying and disinfecting drywall, or as complex as:
HVAC disinfection
Drywall, stud, and insulation removal
Cleaning personal belongings
HEPA (high-efficiency particulate air) filtration
How much it costs
Mold consultant: $250-$500 (which might include air and surface samples: always ask).
Air samples: $18-$225 apiece, depending on the laboratory.
Simple mold removal: $500 for surface mold removal.
Extensive mold remediation: $6,000-plus for severe infections that require extensive demolition, disinfection, and restoration.
Check your insurance
Homeowners insurance typically covers mold remediation and removal only if the problem results from a sudden emergency already covered under your policy, such as a burst pipe. Insurance usually doesn’t pay if the mold resulted from chronic moisture, deferred maintenance, or floodwaters (unless you carry flood insurance).As always, consult your insurance agent before contracting for work.Karin Beuerlein has covered home improvement and green living topics for HGTV.com, FineLiving.com, Better Homes & Gardens and the Chicago Tribune.
Thursday, November 11, 2010
Four years into the housing crisis, myths about foreclosure still litter the minds of even the smartest of real estate consumers. When it comes to matters as high stakes as your home, confusion can cost you thousands - or even your home. Whether you’re a buyer looking at foreclosures, a homeowner struggling to keep your home or a seller concerned making sure your home can compete with the foreclosed homes on your block, these foreclosure myths are prime for the busting, with no further ado.
Myth #1: Foreclosure happens fast. With unemployment and underemployment still affecting nearly 1 in every 4 Americans, no one is immune from fears that a pink slip might quickly turn into a foreclosure notice. According to NeighborWorks America, nearly 60 percent of families seeking foreclosure counseling cited a lost job or cut wages as the reason they were facing foreclosure. While the Obama Administration's Home Affordable Programs haven't been nearly as effective as predicted in actually preventing foreclosures, they have had the effect of extending the foreclosure process for many families. Even though the legal process of foreclosure can happen in as few as 6 months in most states, it is currently taking much longer for the average foreclosure to get to completion. Recently, JP Morgan Chase revealed that their average borrower who loses a home to foreclosure has not made any payments in 14 months nationwide; 22 months in FLorida and 26 months in New York.To be sure, some see this as a good, others view it as unnecessarily dragging out the overall market's recovery. Many insiders will point out that these delays in foreclosure may be calculated to save the banks the costs of owning and maintaining foreclosed homes, not to help homeowners. In any event, the fact that foreclosure does not happen nearly as fast, in many cases, as expected does give families who are temporarily down on their luck some extra time to try to get back on their feet and save their homes.
Myth #2: Buyers can’t get clear title or title insurance on foreclosed homes. When the foreclosure robo-signing scandal first hit, there was widespread concern that buyers would not be able to get clear title on foreclosed homes, because the former foreclosed owners might be able to come get their homes back when the improprieties in the bank's foreclosure documentation processes came fully to light. At the same time, several of the country's largest title insurance companies publicly balked at issuing policies on bank-owned homes until the issue was resolved. At this point, the banks claim they have revamped their processes, and all banks have stated that they have found not a single borrower whose home was repossessed without them having missed the requisite number of mortgage payments. Nevertheless, a number of governmental investigations are still in progress.The fact is, buyers of bank-owned properties in nearly every jurisdiction are protected from later title attacks by foreclosed homeowners by the bona fide purchaser rule, under which courts would prefer to simply award cash damages to be paid by the culpable bank to a wrongfully foreclosed-on homeowner, rather than reversing the sale or ownership to the new, innocent buyer. Additionally, the title insurers have now changed their tune and restarted issuing insurance policies on bank-owned homes which protect buyers' interests, after working with the banks for them to take responsibility in the event a former homeowner prevails in a wrongful foreclosure suit. While there are still many intricacies of title to be resolved for foreclosure buyers who purchase homes at trustee sales and auctions, or for cash buyers who often went without title insurance in the past, on the average, Trulia-listed, bank-owned property purchased with an average mortgage and title insurance, the chances a buyer's title will later be successfully challenged by the foreclosed homeowner on the basis of robo-signing? Exceedingly slim.
Myth #3: Buyers should wait for the shadow inventory to be released. Many a buyer, discouraged with the homes they see on the the form in their price range, has decided to sit still and wait for the banks to release for sale what is called their "shadow inventory" - rumored to be anywhere from 4 to nearly 6 million homes that have already been foreclosed, but not listed for sale, or will be foreclosed in the near future. The fact is, to the extent that the banks have acknowledged the existence of a pool of homes they own but are not selling, they have expressed that their reasoning for holding the homes off the market is to avoid flooding the market and driving home values down any further. For that reason, buyers should not expect to see a massive influx of these shadow homes onto the market anytime soon - if ever. The banks' current modus operandi is that as they sell a home, the replace it with another home in that market - if they sell 50 homes in a town that month, they'll put another 50 on the next. So, don't hold your breath waiting for a fabulous new flood of homes. Instead, set up a Trulia alert to notify you when homes that fit your search criteria come on the market, and be ready to call your agent and go visit any and every one that looks like it might be a good fit.
Myth #4: If you’re looking for a deal, you’re looking for a foreclosure. Despite what they may say, no buyer’s heart's fondest desire is to buy a foreclosure. But almost every buyer dreams of buying a great home - and getting a great deal on it. Many people think that to get a great value on their home on today's market, it means they must buy a foreclosure. As a result, the value and other advantages of buying an individually-owned home on today's market are frequently overlooked. Individual sellers with homes on the market right now are generally quite motivated, and understand that their homes are competing with discounted short sales and foreclosed homes. Many of these sellers are slashing prices in an effort to get them sold - the most recent Trulia Price Reduction Report revealed that 27 percent of homes on the market across the country have had at least one price reduction. Now that's what I call a sale!Further, individual owners are often much more negotiable on a wide range of contract terms than a bank which owns a foreclosed home. You can work with non-bank owners on things like repairs, closing dates, choice of escrow provider, closing costs and even included personal property much more flexibly than you can when the bank is on the other side of the bargaining table. On top of that, many individually-owned homes are in pristine, move-in condition; that is much rarer with foreclosures. So, don't underestimate the value of the deal you might be able to get on a non-foreclosed home. Just get clear on what you can afford and look at all the homes that are available in that price range, without discriminating against non-foreclosures.
Myth #5: Having a foreclosure on your credit history means it'll take years and years before you can buy again. One of the most Frequently Asked Questions in the Trulia Voices Community by homeowners who are facing or have just lost a home through foreclosure is how long it will take before they'll be able to buy again. Until recently, the standard wisdom was that 5 years, minimum, would have to have elapsed between the foreclosure and the new home purchase. Now, though, borrowers can obtain an FHA loan with the low, 3.5 minimum down payment requirement as soon as 3 years following a foreclosure. To do so, though, all your other ducks must be in a row. Post-foreclosure buyers need a credit score of 620-640 to qualify for an FHA loan; higher for a non-FHA loan - given that the foreclosure itself usually dings anywhere from 100-150 points off the credit score (not necessarily counting a full year or more of pre-foreclosure missed payments), former homeowners who want to buy again need to ensure they have no other late payments or credit dings after they lose thier home. You must have clean credit with no derogatory marks like late credit card payments following the foreclosure, and you may also be required to document 12 to 24 months straight of on-time rent payments after the foreclosure. Further, the bank may impose a lower debt-to-income ratio on post-foreclosure borrowers than on borrowers who have not had a foreclosure, in an effort to keep your mortgage payments low, keep you from overextending yourself and boost the chances you'll be a successful homeowner over the long-term this time around. The bank will also need to see 2 years of continuous employment history in the same field, and documentation that you meet other loan qualification requirements.
Thanks to Tara-Nicholle Nelson
Myth #1: Foreclosure happens fast. With unemployment and underemployment still affecting nearly 1 in every 4 Americans, no one is immune from fears that a pink slip might quickly turn into a foreclosure notice. According to NeighborWorks America, nearly 60 percent of families seeking foreclosure counseling cited a lost job or cut wages as the reason they were facing foreclosure. While the Obama Administration's Home Affordable Programs haven't been nearly as effective as predicted in actually preventing foreclosures, they have had the effect of extending the foreclosure process for many families. Even though the legal process of foreclosure can happen in as few as 6 months in most states, it is currently taking much longer for the average foreclosure to get to completion. Recently, JP Morgan Chase revealed that their average borrower who loses a home to foreclosure has not made any payments in 14 months nationwide; 22 months in FLorida and 26 months in New York.To be sure, some see this as a good, others view it as unnecessarily dragging out the overall market's recovery. Many insiders will point out that these delays in foreclosure may be calculated to save the banks the costs of owning and maintaining foreclosed homes, not to help homeowners. In any event, the fact that foreclosure does not happen nearly as fast, in many cases, as expected does give families who are temporarily down on their luck some extra time to try to get back on their feet and save their homes.
Myth #2: Buyers can’t get clear title or title insurance on foreclosed homes. When the foreclosure robo-signing scandal first hit, there was widespread concern that buyers would not be able to get clear title on foreclosed homes, because the former foreclosed owners might be able to come get their homes back when the improprieties in the bank's foreclosure documentation processes came fully to light. At the same time, several of the country's largest title insurance companies publicly balked at issuing policies on bank-owned homes until the issue was resolved. At this point, the banks claim they have revamped their processes, and all banks have stated that they have found not a single borrower whose home was repossessed without them having missed the requisite number of mortgage payments. Nevertheless, a number of governmental investigations are still in progress.The fact is, buyers of bank-owned properties in nearly every jurisdiction are protected from later title attacks by foreclosed homeowners by the bona fide purchaser rule, under which courts would prefer to simply award cash damages to be paid by the culpable bank to a wrongfully foreclosed-on homeowner, rather than reversing the sale or ownership to the new, innocent buyer. Additionally, the title insurers have now changed their tune and restarted issuing insurance policies on bank-owned homes which protect buyers' interests, after working with the banks for them to take responsibility in the event a former homeowner prevails in a wrongful foreclosure suit. While there are still many intricacies of title to be resolved for foreclosure buyers who purchase homes at trustee sales and auctions, or for cash buyers who often went without title insurance in the past, on the average, Trulia-listed, bank-owned property purchased with an average mortgage and title insurance, the chances a buyer's title will later be successfully challenged by the foreclosed homeowner on the basis of robo-signing? Exceedingly slim.
Myth #3: Buyers should wait for the shadow inventory to be released. Many a buyer, discouraged with the homes they see on the the form in their price range, has decided to sit still and wait for the banks to release for sale what is called their "shadow inventory" - rumored to be anywhere from 4 to nearly 6 million homes that have already been foreclosed, but not listed for sale, or will be foreclosed in the near future. The fact is, to the extent that the banks have acknowledged the existence of a pool of homes they own but are not selling, they have expressed that their reasoning for holding the homes off the market is to avoid flooding the market and driving home values down any further. For that reason, buyers should not expect to see a massive influx of these shadow homes onto the market anytime soon - if ever. The banks' current modus operandi is that as they sell a home, the replace it with another home in that market - if they sell 50 homes in a town that month, they'll put another 50 on the next. So, don't hold your breath waiting for a fabulous new flood of homes. Instead, set up a Trulia alert to notify you when homes that fit your search criteria come on the market, and be ready to call your agent and go visit any and every one that looks like it might be a good fit.
Myth #4: If you’re looking for a deal, you’re looking for a foreclosure. Despite what they may say, no buyer’s heart's fondest desire is to buy a foreclosure. But almost every buyer dreams of buying a great home - and getting a great deal on it. Many people think that to get a great value on their home on today's market, it means they must buy a foreclosure. As a result, the value and other advantages of buying an individually-owned home on today's market are frequently overlooked. Individual sellers with homes on the market right now are generally quite motivated, and understand that their homes are competing with discounted short sales and foreclosed homes. Many of these sellers are slashing prices in an effort to get them sold - the most recent Trulia Price Reduction Report revealed that 27 percent of homes on the market across the country have had at least one price reduction. Now that's what I call a sale!Further, individual owners are often much more negotiable on a wide range of contract terms than a bank which owns a foreclosed home. You can work with non-bank owners on things like repairs, closing dates, choice of escrow provider, closing costs and even included personal property much more flexibly than you can when the bank is on the other side of the bargaining table. On top of that, many individually-owned homes are in pristine, move-in condition; that is much rarer with foreclosures. So, don't underestimate the value of the deal you might be able to get on a non-foreclosed home. Just get clear on what you can afford and look at all the homes that are available in that price range, without discriminating against non-foreclosures.
Myth #5: Having a foreclosure on your credit history means it'll take years and years before you can buy again. One of the most Frequently Asked Questions in the Trulia Voices Community by homeowners who are facing or have just lost a home through foreclosure is how long it will take before they'll be able to buy again. Until recently, the standard wisdom was that 5 years, minimum, would have to have elapsed between the foreclosure and the new home purchase. Now, though, borrowers can obtain an FHA loan with the low, 3.5 minimum down payment requirement as soon as 3 years following a foreclosure. To do so, though, all your other ducks must be in a row. Post-foreclosure buyers need a credit score of 620-640 to qualify for an FHA loan; higher for a non-FHA loan - given that the foreclosure itself usually dings anywhere from 100-150 points off the credit score (not necessarily counting a full year or more of pre-foreclosure missed payments), former homeowners who want to buy again need to ensure they have no other late payments or credit dings after they lose thier home. You must have clean credit with no derogatory marks like late credit card payments following the foreclosure, and you may also be required to document 12 to 24 months straight of on-time rent payments after the foreclosure. Further, the bank may impose a lower debt-to-income ratio on post-foreclosure borrowers than on borrowers who have not had a foreclosure, in an effort to keep your mortgage payments low, keep you from overextending yourself and boost the chances you'll be a successful homeowner over the long-term this time around. The bank will also need to see 2 years of continuous employment history in the same field, and documentation that you meet other loan qualification requirements.
Thanks to Tara-Nicholle Nelson
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