Social Networking
by Marylyn B. Schwartz
I am relatively new to using social networking as a means of communicating with friends, associates, clients and others. The journey to reach my skill level, moderately adept, has been both interesting and frustrating -- more the latter than the former.
Let's face it, we middle aged folks (I am giving myself significant leeway here as I don't know many 115 year old people) are generally a stubborn lot who find it tough to completely change the way we are used to things being done. Remember, we are the ones who walked 10 miles to school without shoes. Okay, I rode the bus, but it was a public bus replete with winos and peeping Toms.
Think of it. First, there was the computer. Talk about a learning curve. My curve looked like the flight path of Haley's comet. What would the nuns from my Catholic school education days say about the decline of the handwritten letter? Mercifully, most of those nuns have passed on now. I shudder to think how the loss of the mastery of cursive would have broken their blessed hearts.
So, kicking and screaming we get the computer thing down pretty well: term papers, letters, office stuff, etc. and then bam, we're hit with e-mail communication.
Those were tough times. I longed to hear the words, "Give me your address so I can drop you a note." Instead, the cry throughout the land was, "What's your e-mail address?" The minute you said, I don't have one, you were branded as a Paleozoic idiot. Move over Lucy, we have the new missing link right here.
E-mail was repugnant, lacking all warmth, tone and innuendo. It threatened to render the youth of the nation incapable of empathetic communication. We were warmed not to type in all caps. When you type in all caps, YOU ARE YELLING AT YOUR AUDIENCE. Sorry gang. Oh, and heaven help us when emoticons were born. Apparently e-mail cannot simultaneously exist with language that expresses the most common of human sentiments. Without symbols to denote joy, fear, anger, amusement, disgust, etc. we were emotionally illiterate. Yikes, that is to say: :(
However, the human spirit, especially in the older and wiser among us, is indomitable. We overcame our distaste for the lowly e-mail and are now e-mailing with the best of them… or are we? What seems to be happening is that we are suddenly e-mailing less and Facebook-ing, MySpace-ing, Linkedin-ing … more than e-mailing. Oh, I still get e-mails, but I get more private "my-wall-to- your-wall" notes than e-mails. (If you don't know what that means, you are not social networking -- yet) What would happen to all of those private communications if I suddenly stopped checking my sites? Would I be friendless in no time flat? Would the world slip by while I sat ideally watching the birds in my yard? Within weeks would people say, Marylyn who? And, if that were the case, would that be so bad??? There in lies the real question. Can we stand by, arms crossed, chins raised in haughty defiance, shouting, We're not going to take it anymore! Right, try it and that's when the family has the private meeting and the words long-term care are bantered about.
Truth be told, we don't want to be left out totally while the youth of the world continue to hunker down in their rooms creating their avatars, blogging to each other, texting till their little fingers all develop arthritis, exercise using their Wiis and creating ever more diabolical ways to advance technological communication.
Like it or not, our options are limited. The world is going forward with or without us. You're in or you're out. I say, sign up, log in, blog a lot, blog a little and enjoy the ride. Oh, by the way, there are blogs for martini drinkers and wine lovers. Thank goodness, it is not all work!
Published: August 24, 2009
Tuesday, August 25, 2009
10 Steps to Sell Tour Home in a Slow Market.
10 Steps to Sell Your Home Faster In A Slow Market
You probably already know that real estate across most of the country is not appreciating as fast as it was at one time. This isn't necessarily a bad thing, unless of course you purchased last year and are now selling. People who have owned a property for several years are still generally well ahead in the game. We can't predict what 2009 will bring, but so far, most markets have slowed, if not declined. For the majority of established home owners in the prevailing market, prior property appreciation will ensure at least some degree of profit, though today's sales might not be as prosperous as they would have been in 2006. But all homeowners want to get the highest possible profits. How do you go about this? There are 10 negotiating steps that a seller can follow to assure that a person's home gets the best price and is sold quickly.
Step 1: Use a broker from the local area. When the market is down, so is the number of buyers. That means that you need to expose your property to as many potential buyers as possible. Who do prospective buyers get in touch with when they are house hunting? Real estate brokers. National Association of Realtors statistics show that 85% of purchasers count on real estate brokers for their home selections, while the Internet accounts for 80%. Who creates all of those online real estate postings? Real estate brokers from the local area.
Step 2: Familiarize yourself with the entire sale agreement. Nearly all jurisdictions have standardized real estate contract which have become lengthy and complex over many years. If you use one of those, read it carefully and be aware that you are agreeing to every unmodified term and condition. Make sure there is nothing in the agreement that needs to be taken out, rewritten or added. The brokers should offer a copy of the sale agreement that they might use at listing presentations and the sale deed should be read to avoid misunderstandings. As these are agreements on forms, whatever is not stated as a requirement by the law can be changed by a cross-out or addendum. Consult your attorney or broker for further detailed information.
Step 3: Be completely familiar with the current real estate market. For the sake of negotiations, knowing what the recorded sale prices were isn't sufficient because often they don't give the complete picture. As an example, two houses might have both sold for $300,000. A person might have sold for $350,000 while the other for $300,000 but the owner gave the buyer a 6 percent seller credit for a new roof and appliances, which is $18,000. Local brokers who are familiar with the details of recent sales are able to provide the best negotiation advice.
Step 4: Understand all of the terms you are willing to offer. You are confident that your home is going to sell at some satisfactory price, but instead of starting out with an inflexible amount, consider the property sale as a combination of price and terms. For example, it might make more sense in a slow market to help reduce the buyer's closing costs by offering a "seller contribution "instead of lowering the price of the property. Often the seller contribution could be significantly less than a reduction in price, and buyers who require cash to close the sale could find it more attractive as well.
Step 5: Request a smaller deposit. In order to bind a legal contract, the buyer needs to make a deposit. In an ideal marketplace, a seller will receive a large deposit, but in a down or "off" market, a much smaller deposit may have to be accepted. The buyers prefer to make the lowest possible deposit because a huge deposit indicates a big financial and psychological commitment. You can ask for a lower deposit if the buyer has a mortgage pre-approval or if the buyer shows a strong interest in the property and you have no other offers.
Step 6: Sweeten the pot. Are you really planning to take large items like a swing set or washing machine? In certain cases it may be better to leave such items if a buyer makes an offer.
Step 7: MLS photos have to be updated. If your MLS photo shows snow around your home in the middle of the summer, potential buyers will know your house has been on the market a while. They may interpret this as meaning that you might be desperate to sell and will expect to lower your initial offer. Make sure your broker posts recent photographs.
Step 8: Fully understand the marketing plan. The broker's marketing plan should be reviewed quite often to see that it is being followed and is changed whenever it is needed.
Step 9: Check out open houses. Going to open houses, also known as your competition is a great idea. It isn't always easy to be objective. However, do other owners have selling ideas that might work in regards to your home? Is there something you can use to bargain with? You could consider offering to do some painting or other cosmetic repairs.
Step 10: Keep everything in context. Don't worry about nickels and dimes when your main goal is to get the house sold.As an example, just before closing the deal, we had a buyer request an extra $600 to resolve last minute concerns. That gesture seemed like nothing more than a case of buyer's remorse, so we agreed to it, received an otherwise ideal price, and closed the sale. It wasn't long before the prices softened in the local market. It was better to lose $600 than to find another buyer later when the market was harsher and the final sale price might have been less by several thousands of dollars. Would we have preferred to save that $600? Certainly. However, six hundred dollars was a small price to pay considering that the delays could have meant a big reduction in price.
You probably already know that real estate across most of the country is not appreciating as fast as it was at one time. This isn't necessarily a bad thing, unless of course you purchased last year and are now selling. People who have owned a property for several years are still generally well ahead in the game. We can't predict what 2009 will bring, but so far, most markets have slowed, if not declined. For the majority of established home owners in the prevailing market, prior property appreciation will ensure at least some degree of profit, though today's sales might not be as prosperous as they would have been in 2006. But all homeowners want to get the highest possible profits. How do you go about this? There are 10 negotiating steps that a seller can follow to assure that a person's home gets the best price and is sold quickly.
Step 1: Use a broker from the local area. When the market is down, so is the number of buyers. That means that you need to expose your property to as many potential buyers as possible. Who do prospective buyers get in touch with when they are house hunting? Real estate brokers. National Association of Realtors statistics show that 85% of purchasers count on real estate brokers for their home selections, while the Internet accounts for 80%. Who creates all of those online real estate postings? Real estate brokers from the local area.
Step 2: Familiarize yourself with the entire sale agreement. Nearly all jurisdictions have standardized real estate contract which have become lengthy and complex over many years. If you use one of those, read it carefully and be aware that you are agreeing to every unmodified term and condition. Make sure there is nothing in the agreement that needs to be taken out, rewritten or added. The brokers should offer a copy of the sale agreement that they might use at listing presentations and the sale deed should be read to avoid misunderstandings. As these are agreements on forms, whatever is not stated as a requirement by the law can be changed by a cross-out or addendum. Consult your attorney or broker for further detailed information.
Step 3: Be completely familiar with the current real estate market. For the sake of negotiations, knowing what the recorded sale prices were isn't sufficient because often they don't give the complete picture. As an example, two houses might have both sold for $300,000. A person might have sold for $350,000 while the other for $300,000 but the owner gave the buyer a 6 percent seller credit for a new roof and appliances, which is $18,000. Local brokers who are familiar with the details of recent sales are able to provide the best negotiation advice.
Step 4: Understand all of the terms you are willing to offer. You are confident that your home is going to sell at some satisfactory price, but instead of starting out with an inflexible amount, consider the property sale as a combination of price and terms. For example, it might make more sense in a slow market to help reduce the buyer's closing costs by offering a "seller contribution "instead of lowering the price of the property. Often the seller contribution could be significantly less than a reduction in price, and buyers who require cash to close the sale could find it more attractive as well.
Step 5: Request a smaller deposit. In order to bind a legal contract, the buyer needs to make a deposit. In an ideal marketplace, a seller will receive a large deposit, but in a down or "off" market, a much smaller deposit may have to be accepted. The buyers prefer to make the lowest possible deposit because a huge deposit indicates a big financial and psychological commitment. You can ask for a lower deposit if the buyer has a mortgage pre-approval or if the buyer shows a strong interest in the property and you have no other offers.
Step 6: Sweeten the pot. Are you really planning to take large items like a swing set or washing machine? In certain cases it may be better to leave such items if a buyer makes an offer.
Step 7: MLS photos have to be updated. If your MLS photo shows snow around your home in the middle of the summer, potential buyers will know your house has been on the market a while. They may interpret this as meaning that you might be desperate to sell and will expect to lower your initial offer. Make sure your broker posts recent photographs.
Step 8: Fully understand the marketing plan. The broker's marketing plan should be reviewed quite often to see that it is being followed and is changed whenever it is needed.
Step 9: Check out open houses. Going to open houses, also known as your competition is a great idea. It isn't always easy to be objective. However, do other owners have selling ideas that might work in regards to your home? Is there something you can use to bargain with? You could consider offering to do some painting or other cosmetic repairs.
Step 10: Keep everything in context. Don't worry about nickels and dimes when your main goal is to get the house sold.As an example, just before closing the deal, we had a buyer request an extra $600 to resolve last minute concerns. That gesture seemed like nothing more than a case of buyer's remorse, so we agreed to it, received an otherwise ideal price, and closed the sale. It wasn't long before the prices softened in the local market. It was better to lose $600 than to find another buyer later when the market was harsher and the final sale price might have been less by several thousands of dollars. Would we have preferred to save that $600? Certainly. However, six hundred dollars was a small price to pay considering that the delays could have meant a big reduction in price.
Tuesday, August 18, 2009
Pur-Plexing
"Pur-Plexing"
by PJ Wade
When it comes to real estate, buying more may be a better long-term plan than settling for what lenders insist your current income dictates.
If your income is not high enough to finance the purchase of the single-family house you'd prefer, consider buying a revenue-generating property to boost your buying power and enhance your long-term financial prospects.
Instead of a first-time purchase that's a shoe-box-sized condominium unit, a handyman's special or something at the end of a long commute, consider a move to an apartment where you're the landlord and the real tenants pay rent that becomes your cash flow.
When the final child moves out for the final time, rather than life-by-committee in a condominium or taking on almost as much maintenance in a scaled-down bungalow, why not look into a revenue-generating property that will boost lifestyle-spending power and free up your time through an income-tax-deductible property management service? Whether you decide on a live-in asset or buy strictly for investment, the revenue generated may eventually represent or supplement pension income.
Purchase a revenue property, and rental income can cover mortgage payments, taxes and maintenance costs to increase equity or accumulated value. When the location increases in value over time, equity gets a second boost. Income-tax deductions from this rental business may reduce overall tax liability. Whether financing for the initial purchase or refinancing down the road, loan-to-value limits up to and including 95 percent of property value are possible.
From a mortgage point of view, investment revenue can dramatically increase your qualifying income and, therefore, your real estate purchasing power. Buy a two-family property or duplex, a three-family triplex or a fourplex, and you'll have one or more streams of rental income to boost your salary when it comes to qualifying for a mortgage. The percentage added to your income varies with lender policy, but it normally falls between 50 and 80 percent of rental income.
Lender calculations limit payment of principal, interest, taxes and perhaps heating to about 28 to 30 percent of your gross household income. If you already make monthly payments for a car loan or other debts, calculations will vary. The higher your income, the larger the mortgage you qualify for. Add that to the cash you have saved, borrowed from family or netted from selling another investment, and you have your total buying power.
By law, mortgages for more than 80 percent of the appraised value of a property require mortgage loan insurance (not mortgage life insurance) to reduce lender risk and, therefore, keep interest rates competitive. Lenders also have the right to include this insurance as one of the lending terms for lesser loans if the borrower appears to present greater risk. The premium on the total loan ranges up from 1.25 percent and is normally added to the mortgage, not paid out of pocket.
The federal housing agency, Canada Mortgage and Housing Corporation (CMHC), provides mortgage loan insurance through its CMHC Income Property product line for non-owner occupied 1 to 4 unit rental properties:
Purchase and refinance with loan-to-value ratios up to 95 percent for permanent residents, newcomers and self-employed borrowers
No application fee or lender appraisal required [bullet] Flexible financing options, terms and conditions
Advantages for energy-efficient properties
Available across the country with no set loan maximum
The stronger the investment potential of the property and of the borrower's financial track record, the greater the borrowing power. Higher credit scores are an important asset for borrowers. To determine your standing, access your credit scores, and credit and personal reports at no charge, before applying for financing, so errors or omissions can be corrected:
EQUIFAX
TRANSUNION
There are many factors involved, so talk to experienced mortgage brokers, real estate professionals and successful investors (like your landlord?). Ask a lot of questions about the type of income property and the locations you are considering.
You'll discover a framework of financing factors that will guide your search for the ideal property, but only when you ask for property-specific consideration will you know exactly and precisely what can and cannot be accomplished relative to a particular offer to purchase. For instance, owner-occupied properties are considered lower risk. If tenants pay heat and utilities, owner operating expenses will be lower, so a lender may allow a slightly larger mortgage.
Buying an income property is not a snap decision. Considering this alternative can add new dimension and possibilities to your real estate future. Here lies real "out of the box" thinking for those who've never thought beyond owning a house or cottage.
Source: "Pur-Plexing Yeah Buts: Need-to-Knows When Purchasing Your First Duplex, Triplex or Fourplex"
Published: August 11, 2009
by PJ Wade
When it comes to real estate, buying more may be a better long-term plan than settling for what lenders insist your current income dictates.
If your income is not high enough to finance the purchase of the single-family house you'd prefer, consider buying a revenue-generating property to boost your buying power and enhance your long-term financial prospects.
Instead of a first-time purchase that's a shoe-box-sized condominium unit, a handyman's special or something at the end of a long commute, consider a move to an apartment where you're the landlord and the real tenants pay rent that becomes your cash flow.
When the final child moves out for the final time, rather than life-by-committee in a condominium or taking on almost as much maintenance in a scaled-down bungalow, why not look into a revenue-generating property that will boost lifestyle-spending power and free up your time through an income-tax-deductible property management service? Whether you decide on a live-in asset or buy strictly for investment, the revenue generated may eventually represent or supplement pension income.
Purchase a revenue property, and rental income can cover mortgage payments, taxes and maintenance costs to increase equity or accumulated value. When the location increases in value over time, equity gets a second boost. Income-tax deductions from this rental business may reduce overall tax liability. Whether financing for the initial purchase or refinancing down the road, loan-to-value limits up to and including 95 percent of property value are possible.
From a mortgage point of view, investment revenue can dramatically increase your qualifying income and, therefore, your real estate purchasing power. Buy a two-family property or duplex, a three-family triplex or a fourplex, and you'll have one or more streams of rental income to boost your salary when it comes to qualifying for a mortgage. The percentage added to your income varies with lender policy, but it normally falls between 50 and 80 percent of rental income.
Lender calculations limit payment of principal, interest, taxes and perhaps heating to about 28 to 30 percent of your gross household income. If you already make monthly payments for a car loan or other debts, calculations will vary. The higher your income, the larger the mortgage you qualify for. Add that to the cash you have saved, borrowed from family or netted from selling another investment, and you have your total buying power.
By law, mortgages for more than 80 percent of the appraised value of a property require mortgage loan insurance (not mortgage life insurance) to reduce lender risk and, therefore, keep interest rates competitive. Lenders also have the right to include this insurance as one of the lending terms for lesser loans if the borrower appears to present greater risk. The premium on the total loan ranges up from 1.25 percent and is normally added to the mortgage, not paid out of pocket.
The federal housing agency, Canada Mortgage and Housing Corporation (CMHC), provides mortgage loan insurance through its CMHC Income Property product line for non-owner occupied 1 to 4 unit rental properties:
Purchase and refinance with loan-to-value ratios up to 95 percent for permanent residents, newcomers and self-employed borrowers
No application fee or lender appraisal required [bullet] Flexible financing options, terms and conditions
Advantages for energy-efficient properties
Available across the country with no set loan maximum
The stronger the investment potential of the property and of the borrower's financial track record, the greater the borrowing power. Higher credit scores are an important asset for borrowers. To determine your standing, access your credit scores, and credit and personal reports at no charge, before applying for financing, so errors or omissions can be corrected:
EQUIFAX
TRANSUNION
There are many factors involved, so talk to experienced mortgage brokers, real estate professionals and successful investors (like your landlord?). Ask a lot of questions about the type of income property and the locations you are considering.
You'll discover a framework of financing factors that will guide your search for the ideal property, but only when you ask for property-specific consideration will you know exactly and precisely what can and cannot be accomplished relative to a particular offer to purchase. For instance, owner-occupied properties are considered lower risk. If tenants pay heat and utilities, owner operating expenses will be lower, so a lender may allow a slightly larger mortgage.
Buying an income property is not a snap decision. Considering this alternative can add new dimension and possibilities to your real estate future. Here lies real "out of the box" thinking for those who've never thought beyond owning a house or cottage.
Source: "Pur-Plexing Yeah Buts: Need-to-Knows When Purchasing Your First Duplex, Triplex or Fourplex"
Published: August 11, 2009
No Recess for Housing
The Senate and House may have left Capitol Hill for their August break, but housing lobbyists are busy at work gearing up a major campaign to extend the $8,000 home buyer tax credit.
The credit for first-time purchasers is scheduled to expire November 30.
The National Association of Home Builders and the National Association of Realtors want to persuade Congress to nail down an extension of the credit, and maybe even broaden its coverage, as soon as possible.
The home builders are mounting an aggressive campaign during the congressional recess. The association is sending out local teams of members to meet with congressmen and senators in their home districts, urging not only a one year extension of the credit, but an expansion of the concept to cover all home buyers next year, not just first-timers.
Though the endorsement may, or may not, have been connected with the home builders' campaign, one of the most politically powerful Democrats has already signaled that he favors a one year extension.
Senate Majority Leader Harry Reid of Nevada, said he thinks “it's something we can get done.” According to a report in the Las Vegas Sun, Reid made the comment last week during a conference call with Nevada reporters.
Meanwhile, the influential chairman of the Senate banking committee, Connecticut Democrat Chris Dodd, has teamed up with Georgia Republican Senator Johnny Isakson to sponsor a bill that would extend the credit for another year and expand it to a $15,000 maximum.
In the House, two bills have been introduced to extend and expand the credit for either six months or 12 months. The National Association of Realtors is strongly supporting the extension efforts, and is sending its own delegations to lobby key members of the House Ways and Means committee and the Senate Finance committee.
So with all this going on, is it a sure thing that the tax credit will be available in some form for home buyers next year? Should consumers who can't quite make the November 30 deadline breathe easier?
Absolutely not. There is no sure thing on Capitol Hill whenever legislation looks like it's got a clear path to passage. That's when opponents hijack the bill or filibuster it in the Senate.
Nonetheless, extension of the credit looks like it has growing bipartisan support. Mary Trupo, legislative spokesperson for the National Association of Realtors, told Realty Times last week that “we feel Congress is receptive” to the message that the housing tax credit helps create jobs, and stimulates the economy.
But nobody should assume it's a done deal, until it is.
Published: August 17, 2009
By Kenneth R Harney
The Senate and House may have left Capitol Hill for their August break, but housing lobbyists are busy at work gearing up a major campaign to extend the $8,000 home buyer tax credit.
The credit for first-time purchasers is scheduled to expire November 30.
The National Association of Home Builders and the National Association of Realtors want to persuade Congress to nail down an extension of the credit, and maybe even broaden its coverage, as soon as possible.
The home builders are mounting an aggressive campaign during the congressional recess. The association is sending out local teams of members to meet with congressmen and senators in their home districts, urging not only a one year extension of the credit, but an expansion of the concept to cover all home buyers next year, not just first-timers.
Though the endorsement may, or may not, have been connected with the home builders' campaign, one of the most politically powerful Democrats has already signaled that he favors a one year extension.
Senate Majority Leader Harry Reid of Nevada, said he thinks “it's something we can get done.” According to a report in the Las Vegas Sun, Reid made the comment last week during a conference call with Nevada reporters.
Meanwhile, the influential chairman of the Senate banking committee, Connecticut Democrat Chris Dodd, has teamed up with Georgia Republican Senator Johnny Isakson to sponsor a bill that would extend the credit for another year and expand it to a $15,000 maximum.
In the House, two bills have been introduced to extend and expand the credit for either six months or 12 months. The National Association of Realtors is strongly supporting the extension efforts, and is sending its own delegations to lobby key members of the House Ways and Means committee and the Senate Finance committee.
So with all this going on, is it a sure thing that the tax credit will be available in some form for home buyers next year? Should consumers who can't quite make the November 30 deadline breathe easier?
Absolutely not. There is no sure thing on Capitol Hill whenever legislation looks like it's got a clear path to passage. That's when opponents hijack the bill or filibuster it in the Senate.
Nonetheless, extension of the credit looks like it has growing bipartisan support. Mary Trupo, legislative spokesperson for the National Association of Realtors, told Realty Times last week that “we feel Congress is receptive” to the message that the housing tax credit helps create jobs, and stimulates the economy.
But nobody should assume it's a done deal, until it is.
Published: August 17, 2009
By Kenneth R Harney
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