Puppy Trick or Treat

We did a little puppy "Trick or Treat" at our house today. Eeyore's real name is Dobe...and the Fairy is Tinkerbelle. I call them my "fuzzy kids." They enjoyed all of the "ghosts, goblins, and witches" that stopped!

Real Estate 411

When you’re buying or selling, the obvious source to get your real estate question answered is your agent but where do you go the rest of the time?  As a homeowner for many years to come, you’ll need reliable help and solid suggestions.
Our business goal is to have a select group of our friends and past customers who consider us their lifelong real estate professional. We want to earn that trusted position so they’ll enthusiastically refer their friends to us.  Our plan to achieve this is simply to help these people with all of their real estate needs not just when they buy or sell but for all the years in between.
Throughout the year, we offer reminders and suggestions by email and social media that benefit your homeowner experience.  When we find good articles to help you be a better homeowner, we’ll pass them along.  You’ll discover new ways to maintain your property, minimize expenses and manage debt and risk.
We want to be your “Go-To” person for everything to do with real estate.  If we don’t have the answer you need, we’ll point you in the right direction to find it.
We’re here for you and your friends…now and in the future.  Please let us know how we can help you.

Why Borrowers Pay Different Rates

Lenders, like any business, have to make a profit.  The cost of acquiring the funds, the operating costs to service and the expected profit margin are easily identified.  The variable in pricing is the type of mortgage and the credit worthiness of the borrower.
A loan with a 3.5% down payment is riskier than a loan with 20% down payment.  If the lender has to take the property back to recover their expense, the margin is greater between what is owed and what the property is worth on an 80% mortgage.
Credit scoring is a risk-based pricing method that allows a lender to be competitive in the market for the best loans from different borrower groups.  Individual lenders set their own levels for what they consider “A” credit which is reserved for the best rates.  If good credit is approximately 710 to 740, scores below that are considered higher risk and will have higher rates.
Risk must be assessed for both the borrower and the property that collateralizes the loan.  The borrower’s credit history and income stability are strongly evaluated by the lender but if a default should occur, the property must secure the loan to avoid a loss to the lender.

The challenge for some buyers is they are unaware of what their credit score is and how it will affect the interest rate offered by the lender.  It is to the buyer’s advantage to be pre-approved by a reputable lender prior to starting the process of looking for a home.  In some cases, the lender can actually improve the borrower’s credit score to help them qualify for a lower interest rate.
Contact me for a recommendation of a trusted mortgage professional - Paige@RealEstatePaige.com

Lower Anxieties/Improve Marketability

One of the anxiety highpoints during the sale of a home is waiting for the buyer’s home inspection report.  Most sellers willingly disclose what they know about their home to any potential buyers.  The concern stems from the inspector finding something that they’re totally unaware of and that it will either cost them a lot of money to correct or the buyer will simply use it to void the contract.
If the inspection does reveal some unknown problem with the home, it’s probably as big a surprise to the buyer who is not as emotionally or financially invested as the seller.  It is human nature to fear what you don’t understand and when a report identifies defects, they may simply opt-out of the home.
The solution to the situation may be for the seller to have the home inspected prior to putting it on the market.  There is still a risk of becoming surprised by an unknown defect which at that point, would have to be disclosed to potential buyers or repaired by the seller.  The advantage is that it creates a baseline to compare discrepancies that may arise when a future buyer has the home inspected.
If the seller’s inspection report is made available during the marketing process, it could give buyers a sense of confidence about the home even though they may still choose to have the home checked by their own inspector.
The cost of the inspection, possibly $500, keeps some sellers from taking this initiative when selling their home.  In an effort to minimize their expenses, they forego getting valuable, disinterested 3rd party advice that could help sell their home.  On a $175,000 home, the fee for the inspection will probably be less than 3/10 of one percent of the sales price.
Another option to the seller to increase marketability of the property and bolster buyer confidence in the home would be to offer a home protection plan.  Generally, the seller doesn’t incur cost for this coverage until the home is sold and there may even be some coverage for the seller during the listing period.  The benefit to the buyer is avoiding unanticipated expenses for specific items that are covered during their first year of ownership.
Contact me for recommendations of home inspectors or home protection plans.

#Homeinspection #sellingahome

Rating Your Best Friend

Man’s best friend enjoys many of the benefits of his master’s home besides food and shelter and a comfortable place to live and play.  In return, dog owners expect companionship and possibly, protection; after all, even a small dog can bark to signal intruders.

Few people doubt that most dog owners love their pets and treat them well.  The costs associated with having a dog can include medical and dental that rivals human expenses, premium food, toys, grooming and license fees.  However, one of the expenses not anticipated by pet owners is a higher homeowner’s insurance premium.

There are almost five million dog bites a year with children being the main victims.

“Dog bites accounted for more than one-third of all homeowner’s insurance liability claim dollars paid out in 2012, which amounted to more than $489 million,” said Peter Robertson, representing the Property Casualty Insurers Association of America, testifying against the bill at a hearing of the Committee on Financial Services.  He said, “The total cost of dog bite claims increased by more than 51 percent between 2003 and 2012.”  It is now estimated that dog bites cause losses of over one billion dollars a year.

Some insurance underwriters have denied or canceled coverage or increased the premium of the owner’s liability insurance based on the homeowners’ specific breed of dog such as Pit Bulls, Dobermans, Akitas, Mastiffs, Malamutes and even German Shepherds.  The aggressive nature of certain types of dogs combined with specific training or lack of training, abuse or neglect are identified by insurer’s refusal to provide liability coverage.

If you are considering what insurers identify as a high-risk pet, you might want to visit with your insurance agent prior to acquiring your new best friend to see if it affects your rates.

Underwater Homeowners May Qualify...

Underwater Homeowners May Qualify for a Mortgage Sooner Than Expected with HUD’s Back to Work Extenuating Circumstances Program

On August 15, 2013, FHA launched the FHA Back to Work - Extenuating Circumstances program, also known as the FHA's "second chance" for mortgage applicants who have experienced financial hardship as a result of unemployment or severe reduction in income.

This program aims to help people who experienced a foreclosure, short sale, or bankruptcy due to what they consider a “negative credit event.”

In order to be eligible for this program, applicants are going to need to prove four things.

• First, they’ll need to prove that your income declined by 20 percent or more for a six month period and that those circumstances were the result of a negative credit event.
• Second, they’ll need to be able to provide documentation if the negative credit event qualifies under the “Job lost beyond applicant’s control” category. This might include publicly available information on a reduction in workforce or that a company closed. Applicants can also look to see if they had unemployment compensation.
• Next, applicants have to prove that, over the course of the last twelve months, they haven’t had any credit hiccups like a late installment or any new collections or judgments. Applicants also have to have a clean credit record for the last 12 months. So, they’ll need to show that they’ve had a positive rental history or that, if they’re living with their parents, they haven’t had any other credit issues.
• The last criteria is that applicants will have to go through Housing Counseling with an approved counselor no later than six months from the application date and no sooner than 30 days from the application date.

If you or someone you know experienced a foreclosure, short sale, or bankruptcy, they may be in a position to buy again through this new program. You can learn more by watching this video: http://www.youtube.com/watch?v=ldoWQSykQos.
 

Don't Do It!

You’ve seen lists telling buyers what to do to find the right home but knowing what not to do can be just as important.  After finding the right home, negotiating a contract, making a loan application and inspections, buyers, understandably, start making plans to move and put their personal touches on the home.
In today’s tenuous lending environment, little things can derail the process which isn’t over until the papers are signed at settlement and funds distributed to the seller. Verifications are made by a lender at the beginning of the loan process to determine if the buyer qualifies for the mortgage. The verifications are usually done again just prior to the closing to determine if there have been any material changes to the borrower’s credit or income that might disqualify them.
Simply stated:

1. Don’t make any new major purchases that could affect your debt-to-income ratio
2. Don’t apply, co-sign or add any new credit
3. Don’t quit your job or change jobs
4. Don’t change banks
5. Don’t open new credit accounts
6. Don’t close or consolidate credit card accounts without advice from your lender
7. Don’t buy things for your new home until after you close
8. Don’t talk to the seller without your agent

Your real estate professional and lender are working together to get you into your new home. It’s understandable to be excited about one of the biggest decisions you’ll make and that you feel you need to be getting ready for the move.
Planning is smart but don’t do anything that would affect your credit or income while you’re waiting to sign the final papers at settlement.

Tips for a WILDLY Successful Yard Sale

Carrie MakingLemonadeBlogger Blue Bell, PA

Thanks to our frenzied summer to declutter, we needed to get rid of all our extra stuff– and there’s no better way to do so than having a yard sale that will leave you with room to breathe AND loads of cash in your pocket!  We had a garage sale this past weekend and counted up almost $900 buckaroos at the end of the day– WAY more that we expected, especially since we only sold one big ticket item.  There were several tricks and tips that I believe led to our success so I wanted to share them with you– and hear your tips as well!

Your Stuff:  One thing that helped was to systematically declutter each nook of our home this summer.  Each time I found items for the sale I place them in a pile in our basement.  That pile was OUT OF CONTROL, yo.  Like, ready to invade our home at a moment’s notice.  It was either have a yard sale or star-on-an-episode-of-Hoarders type pile.  Even if you don’t have time to totally declutter, hit the major areas: kitchen cabinets, clothing, bookshelves, garage, basement.  Do you have extra furniture hanging out?  Toys that are outgrown?  Now’s the time to let them go.

Know your Goal:  Why are you having a yard sale?  To get rid of stuff or make money? A little of both?  Knowing your objective will help when you are pricing, negotiating, and packing up the leftovers.  On the fence with a price and just want to get rid of stuff?  Go lower.  Are you a serial yard saler and will have another sale next year?  Price what you’d like to get and hope to get it.  Our goal was to get rid of stuff, so when negotiating we knew to let it go rather that haggle too much.

Advertising: These days, your best (and FREE) advertising will probably be Craigslist.  I also paid $5 to advertise online in my local newspaper (print ads are outrageously priced here).  Here’s my tips for the perfect online Craigslist ad:

• Upload photos of some of your items for sale, put don’t have them look creepy or disgusting.  Seriously, you want people to be attracted to your sale and not report you to the authorities.  If you need to crop or style it then do so, but make sure the photos look inviting!
• Make it snappy.  Put some personality into the ad.  People commented on how much they enjoyed reading our ad because I attempted some lame humor in there.  As always.
• Include a list of some of the types of items you’ll have.  Got kids clothes that are higher end?  List that!  And if you have great prices on stuff, list that too.  It’s one thing to know a seller has Ann Taylor clothing, another to know it’s only $3 a piece.

I put this photo in my ad and by 8:30am had sold $150 worth of kids clothes.

Signage: Perhaps the best thing you can do for yourself is have excellent signage.  Great signs will easily lead people who read your ads to your sale, AND attract people driving by.  Make sure the letters are neat and BIG.  Put them on each major corner in your area, especially on main streets.  You only need three things on your sign:

• the words Yard Sale or Garage Sale
• date and time
• a big arrow in the direction to drive
• address is optional; if it’s not easy to read while you drive by quickly, don’t add it!  Just be sure to have signs that lead to your home.

Here’s three options for lawn signs if you don’t have a pole to hang one.  Tape a sign to the side of a cardboard box, drop a brick or large stone inside, and you have a great sign that won’t blow away.  If you have yard signs from work you’ve had done, keep them!  Tape signs to each side and you have an attention getter for sure.  The Dollar Store often has Garage Sale lawn signs for only $1, when you see them stock up.

Be a good neighbor.  Collect your signs that night.  Littering is for dorks.

Pricing:  Whew, this is a toughie.  Conventional wisdom says to price at 1/3 the retail value, and that could hold true.  But times are tight, so people won’t always pay that amount.  For example, I priced my clothes at $3 each and trust me they didn’t cost $9 retail.  Pricing it right allowed me to let it go AND make some money for a new fall wardrobe.     It was helpful toask my buds on Instagram about what to price things, especially furniture– they were very honest!

Put price tags on everything.  It’s extra work but people really don’t want to ask how much something costs every few minutes.  For grouped items like books, hang a sign with the prices.

Here’s what I priced the most common items, with some wiggle room:

• Books: hardcovers $1, paperbacks .50, children’s paperbacks .25
• Kids Clothes (mostly Gymboree, GAP, & Carters) $2 a piece
• Kids Shoes (mostly Stride Rite and Keens) $3 a pair
• Women’s Clothing (mostly Ann Taylor, Loft, Banana Republic, J. Crew) $3 a piece– I could do way better on eBay but I wanted to get rid of it!
• Toys $1-$3
• Planters $2 each, Gift Bags .25 each

Group Like Items:  This will really help your sale!  Put like items together.  I like to have a table of books, one of home decor, toys on a tarp on the ground, sports equipment, etc. Here’s a few examples of other things to group together:

• box of extra fabric pieces: price it around .50 a piece and watch them sell
• toys: group all those small annoying things in a bag, price the bag for a buck, sold!
• jewelry: jewelry is HUGE.  Have outdated pieces or costume jewelry?  Price it at .50 up to a few dollars, KEEP IT AT THE CASHIER’S TABLE, and you’ll have a goldmine.  I bagged each piece and laid it in a shallow tray, everyone took a look and it sold so quickly.
• kids clothes: if you have a lot of clothing in various sizes, it works well to have it folded in boxes labeled by gender and size.  This was a very popular item!

Display:  Make it look inviting.  Tables are important, ask friends to borrow some if you don’t have enough.  Place your for-sale throw pillows on your for-sale chairs.  One mistake we made was using our furniture for sale to hold boxes of stuff.  In hindsight, I wish I’d borrowed a few utility tables for the book and clothing boxes and kept the furniture looking it’s best– perhaps with a lamp for some plates on top instead of being covered by boxes.  That being said, they looked neat all lined up on tables and it was a great height for browsing.

We have an IKEA wardrobe rack that I use year round in the basement, so it really comes in handy for the occasional yard sale.  I needed an extra one so I made it from two ladders and a pole held together strongly with duct tape!

Free Pile:  Each time we have a yard sale, we have a pile of free things that we place by the curb.  Carpet remnants, old plastic chairs, paint cans, even my old teaching worksheets– it attracts drive-bys and everyone loves something for free.  Be sure to announce your free pile in your online ad!

After the Sale:  If your goal was to get rid of clutter (like mine!), then this is one of the most important steps.  Load your leftovers IMMEDIATELY into your car, and drive them to a thrift store.  When you get home you’ll have your yard sale cash in your pocket, a decluttered home, and probably be totally exhausted yet fulfilled!  I’ll admit that we kept the furniture we didn’t sell so we could sell it on Craigslist, and my leftover kids’ books are going straight to a Philly school.

On that note, if anyone in the Philly area is looking for a deal on a coffee table / end table set, glider with ottoman, or a counter height kitchen set I’m your girl.  HA!

There you have it, a few tips that will help you have a ROCKSTAR garage sale.  CASH MONEY in your pocket and a clutter free home– what do you have to lose? {Clutter! You’ll lose your clutter!}  What are your killer yard sale tips?  Share ‘em in the comments!  And be sure to pin it for next summer if you’re not ready to have a yard sale this fall.  You’ll have all winter to declutter, you lucky peep!

To See More: http://makinglemonadeblog.com/tips-for-a-wildly-successful-yard-sale/