Gary Macrides's Blog

The Short Sale - Not so Short!

Gary Macrides (Surterre Properties Inc) — Thu, 01 Apr 2010 10:39:10 -0700

What do "same difference", "airline food", "free gift", and "accurate estimate" all have in common? Answer: They are all "oxymorons" (a figure of speech combining two normally contradictory terms). Now we can add the real estate "short sale" to the oxymoron list!

The "short sale" in real estate is typically not very short. If you are considering a short sale as a home seller or buyer, you should understand upfront that the conventional short sale will take longer than a normal real estate home sale - sometimes twice or three times as long (or longer!). This is because there are extra steps to get a short sale approved by the Seller's lien holder (typically a bank and there could be more than one). Here is a summary of the minimum steps in a short sale:

1. Seller qualifies for a short sale after seeking expert legal, tax, and financial advice.

2. Listing Agent assists Seller in putting the house up for sale as a short sale.

3. Listing Agent contacts Seller's bank(s) to notify bank(s) of short sale.

4. Listing Agent markets Seller's home.

5. Buyer makes offer on Seller's home.

6. Buyer and Seller negotiate final agreement on sale/purchase of home.

7. Listing Agent submits short sale package to Seller's bank(s).

8. Seller's bank(s) review short sale package internally.

9. Seller's bank(s) orders appraisal or Broker Price Opinion on Seller's home.

10. Seller's bank(s) and Listing Agent/Attorney/Seller negotiate final terms of acceptance.

11. Listing Agent/Seller re‐negotiate with Buyer as necessary.

12. Seller and Buyer reach final agreement on contract terms.

13. Seller's bank(s) approve sale/purchase of home.

14. Home sale/purchase closes

Steps 8 through 13 can take weeks or months to execute. If the Buyer's initial offer is not adequate from the bank's point of view (they are the one actually losing money in the short sale), then the bank will attempt to negotiate with the Seller (who may in turn have to re‐negotiate with the Buyer) to reach an acceptable agreement. If an acceptable agreement cannot be reached, the Seller's home will likely go into foreclosure.

As a Seller in a short sale, it is critical to provide all required information outlined by your bank and/or Listing Agent. The completeness of the short sale package sent to the bank is key in getting the bank to review the Seller's file in a timely fashion. Importantly, the Buyer in a short sale must be willing to stay the course while the Seller's bank conducts its review process. Patience and an understanding of the complete process will help the parties work together for a successful outcome.

Homebuyer Tax Credit Countdown - Are you in?

Gary Macrides (Surterre Properties Inc) — Thu, 01 Apr 2010 10:26:48 -0700

CHANGES AT FHA

Gary Macrides (Surterre Properties Inc) — Sun, 24 Jan 2010 10:15:47 -0800

Are you following all the new changes to FHA?
Here it is directly from the source, The Commisioner David Stevens

Via David H Stevens (United States Dept. of HUD):

I wanted to take a moment to make sure you are familiar with events surrounding a sweeping set of policy changes for FHA announced earlier this week. The announcement details the changes that Secretary Donovan promised to deliver by the end of January when he testified before Congress last month.

The new policies are designed to strengthen the FHA's capital reserves so we can continue to fulfill our mission of serving underserved communities. In addition, we were determined that these changes should support, not disrupt, the nation's housing market recovery. Bringing these changes to market has been the result of a lot of hard work and long hours. And, I am proud to have worked with so many of you on this initiative.

What changes will be implemented? We announced the following on January 20:

Increase the up-front mortgage insurance premium (MIP) to 2.25%;

Update credit score and down payment requirements for new borrowers;

Reduce seller concessions to three percent, from six percent; and

Implement a series of significant measures aimed at increasing lender enforcement.

When combined with the risk management measures announced in September of last year, these new changes are among the most significant steps ever taken by FHA to address risk. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market's recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.

Let's go into more detail:

Announced FHA Policy Changes:

1.      Increase the MIP to build up capital reserves and bring back private lending.

o    The first step will be to raise the up-front MIP by 50 basis points to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.

o    If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.

o    This shift will allow for the capital reserves to increase with less impact on the consumer because the annual MIP is paid over the life of the loan instead of at the time of closing.

o    The initial up-front increase is included in Mortgagee Letter 2010-02 and will go into effect in the spring.

2.      Update the combination of credit scores and down payments for new borrowers.

o    New borrowers will now be required to have a minimum credit score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 credit score will be required to put down at least 10%.

o    This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.

o    This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

3.      Reduce allowable seller concessions from 6% to 3%.

o   The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.

o   The change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.

4.      Increase FHA lender enforcement.

o    Publicly report lender performance rankings to complement currently available Neighborhood Watch data which will be accessible via www.hud.gov on February 1.

§ This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.

o    Enhance monitoring of lender performance and compliance with FHA guidelines and standards.

§ Implement Credit Watch termination through lender underwriting ID in addition to originating ID.

§ This change is included in Mortgagee Letter 2010-03 and is effective immediately.

o    Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process.

§ Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.

o    HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:

§ Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite.

§ Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative.

Note: This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches.

In addition to the changes I have outlined, we are continuing to review FHA's overall response to housing market conditions, to evaluate its mortgage insurance underwriting standards, and to improve its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.

I know this is a lot of information to absorb. Listed below are links to some of the major stories about the announcement. I promise to keep you aware as we implement these changes going forward.

Wall Street Journal (Nick Timiraos, 1/20) "FHA Sets Tighter Lending Requirements" The Federal Housing Administration is implementing more-stringent lending requirements and higher borrower fees to cushion against rising defaults and stave off the need for a taxpayer bailout of the agency. LINK



Washington Post (Dina ElBoghady, 1/20) "FHA plans to require borrowers to produce more cash for downpayments" The Federal Housing Administration plans to increase the amount of up-front cash paid by all new borrowers and to require higher down payments from those with the poorest credit, according to agency officials. LINK



Chicago Tribune (Mary Ellen Podmolick, 1/20) "FHA homeownership rules to change" The Federal Housing Administration announced changes Wednesday that will make it more expensive for homebuyers to secure agency-backed mortgages while some consumers will be priced out of the housing market. LINK



CNNMoney.com (Tami Luhby, 1/20) "FHA loan requirements will make it harder to get a mortgage" It's going to be harder to get a government-backed mortgage from now on. LINK

CNBC.com (Diana Olick, 1/20) "FHA Boosts Insurance Premiums to Cushion Defaults" In a move to shore up the FHA's beleaguered balance sheet, Commissioner David Stevens on Wednesday announced big changes at the government mortgage insurer that now backs about half of all home loans to the nation's minorities. LINK

I want to thank you for your efforts to keep this housing system on track. The role of the Real Estate Agent, Mortgage Lender, Settlement Service Provider, and all who make the dream of homeownership a reality, is critical to stabilizing this economy. Your work is for a good cause. We really are making a difference in people's lives. Thanks for the partnership!

Six Questions that Can Help You Gain Insight on a Prospective Home

Gary Macrides (Surterre Properties Inc) — Sun, 09 Aug 2009 11:41:52 -0700

Unlike an automobile, you can't test drive a home before you purchase it. You have to base your decision on other factors such as layout, condition and much more. And, of course, the seller is obligated to disclose the property's condition that may alert you to issues such as previous mold, defective water heater or leaky roof. Yet, that still doesn't always paint the entire picture. Here are six questions you should consider asking the seller to gain additional insight about the prospective home before you make a final decision.

1. Why is the seller selling the house? This question may help you evaluate the "real value" of the property. Is there something about the house the seller does not like? If so, you may be able to adjust the purchase offer accordingly.

2. How much did the seller pay for the home? In some instances, the answer to this question may help you negotiate a better deal. However, it is important to remember that the purchase price is influenced by several factors, like the current market value and any improvements the seller may have made to the home. The original purchase price might not have anything to do with the current value of the house.

3. What does the seller like most and least about the property? By asking the seller what he or she likes most and least about the property, you might get some interesting information. In a few cases, what a seller likes the most about a home might actually be something the buyer is looking to avoid. For example, if the seller describes his house as being in a "happening neighborhood," the buyer might consider this a negative factor because the area may be too noisy or busy for his or her taste.

4. Has the seller had any problems with the home in the past? It is also a good idea to ask the seller if he or she has had any problems with the home while living there. Has the seller had problems with a leakage from the upstairs bedroom in the past? If so, even if the leak has been corrected, the floor and walls around the bathroom might have been damaged. You should check that these items were repaired properly.

5. Are there any nuisances? Use this question to find out about barking dogs, heavy airplane traffic or even planned changes to the community, such as a planned street widening. This may give you insight on why the seller is really moving.

6. How are the public schools in the area? Because the value of a community is usually greatly influenced by the public schools in the area, finding out the buyer's perception can give you some insight about the quality of the area's schools.

Knowing all you can about a prospective home will help you make a more informed decision as well as offer. Your real estate professional can be a great resource in helping you get your key questions answered and give you advice on how to evaluate your findings.

Dana Point Open House

Gary Macrides (Surterre Properties Inc) — Sat, 04 Oct 2008 09:57:29 -0700

Dana Point Open House - Sunday 10/04/08 & Sunday 10/05/08, 1:00 - 4:00PM

Please stop by for a visit at this beautiful steal of a deal Dana Point Pool home home at 33022 Daniel Drive, Dana Point, CA, 92629. I will be open from 1:00pm - 4:00pm this Saturday and Sunday and I'd love to see you there!

Come steal a slice of paradise in cool Dana Point. Finally the home that you have been waiting for at the right price! Rarely available model in highly desirable and much sought after Dana Crest with numerous upgrades. Remodeled and Reconfigured spacious kitchen looking out to Breakfast nook and family room, Living room with French doors out to private patio plus a Spacious rolling front lawn with room for a walled patio. Updated banisters and stairs. Custom Master Bathroom Remodel with Raised Vanities, Double Sinks, Romantic Spa-Tub, Glass Surround Shower, Walk-In Closet and Pocket Doors for privacy. Murphy Bed in 2nd bedroom included. Freshly painted, Newer Roof and roll-up garage door. Located on quiet private street. No HOA and no Mello Roos!

Gary Macrides

Prudential Ca Realty

(949)370-6827

Strategies for Selling a Vacant Home

Gary Macrides (Surterre Properties Inc) — Sun, 21 Sep 2008 12:56:11 -0700

By Gary Macrides Prudential CA Realty As the real estate market continues to stabilize, sellers may find that their property remains on the market significantly longer than the days of “list today, sold tomorrow.” There is also more competition for buyers. So, it can be frustrating to put your home on the market, expecting a fast sale, only to find that after six months you’re still waiting for an offer. This is especially true if you need to move quickly and leave your unsold home vacant.
Besides creating a marketing challenge, a vacant home can also be a target for vandalism. Here are strategies you can use to hasten a sale and protect your property during the process.

· Instead of producing a spacious appearance, an empty room tends to look smaller than a furnished room. So, leave behind a few select pieces of furniture and keep the window treatments in place. A chair or lamp on a small table will confer a sense of scale and help potential buyers gauge whether their furniture will fit the space.
· If you decide to remove the furniture, have the house cleaned and painted. Furniture, rugs and decorations tend to hide or minimize imperfections. When furniture and artwork have been removed, every blemish and bruise becomes accentuated, faded paint and wallpaper become more noticeable and scratches and nicks stand out.
· Repaint brightly and boldly colored rooms to a neutral tone. What was an eye-popping room when fully-furnished may appear stark and small when empty.
· To thwart unwelcome visits, give the house a lived-in look. Set a couple of lamps on timers, and ask a neighbor or friend check on the house daily to collect mail, park a car in the driveway, and close and open drapes and windows. Continue using a gardening service or hire someone to cut the grass regularly. During the winter months, arrange to have snow shoveled from the walks and driveway.
· If available, consider employing a home manager or house sitter. At little or no cost to homeowners, the house is furnished and decorated for show-to-sell condition. Most companies require home managers to mow the lawn, shovel snow, even pay pool maintenance and utilities. Having someone living on site discourages vandalism, protects against deterioration and weather hazards and may even reduce insurance costs. (Check with your insurance carrier.)
· Leave the utilities connected. Depending on the season, make sure the thermostat in the house is set at a comfortable level. You don't want a potential buyer to run through the home because it is too hot or cold.
· Review your homeowner's insurance policy with your insurance agent to find out what the stipulations and coverage pertain to your vacant home.
· Find a real estate professional with experience selling vacant houses. Often, these sales professionals specialize in relocation. You want to make sure that you are comfortable with your lines of communication. If you will be residing in another town, come up with an agreement on how often your representative will check on the home and what should be done if a problem develops.
Although a vacant house presents certain challenges, it does not need to be difficult to sell.

Can You Afford That House?

Gary Macrides (Surterre Properties Inc) — Sat, 23 Aug 2008 12:31:03 -0700

By Gary Macrides

Prudential CA Realty

Before you start searching for your dream home, you first need to determine a price range you can afford. According to the Federal Housing Administration (FHA), depending on the consumer's current debt ratio, most people can typically afford to pay 31 percent of their gross monthly income for mortgage payments. For example, if you earn $50,000 annually, then your monthly income is about $4,167. Thirty-one percent of that is $1,292.

There are several online tools to calculate a monthly mortgage you can afford using factors such as your current monthly expenses, down payment and the interest rate. You can also work with a lender to get pre-qualified for a loan. This estimate will help you gauge how much money you may be able to borrow and the monthly mortgage payments.

However, the amount you are able to afford for a home loan should not be your only consideration for determining your price range. With homeownership come other housing expenses.

Utilities: The most obvious of additional housing expenses are utilities-gas, electricity and water. But don't forget about telephone, trash collection, and cable or satellite bills.

Taxes: As a property owner, you are responsible for property taxes. The rate will vary from city to city. In our community, the tax rate is (insert %) percent. That means for a home with a market value of $200,000, yearly taxes will run (insert dollar amount). To get a general idea on how much the tax bill will be for a property, ask the seller for a copy of the previous year's tax assessment. Your real estate professional can help you refine these figures.

Association Dues: Another cost you may incur is homeowner association (HOA) dues. Most condominiums and some (residential developments/subdivisions/neighborhoods) have HOAs, which are legal entities, created to maintain common areas and enforce deed restrictions. As a property owner, you are required to pay the established monthly or annual homeowner association dues. Be sure you factor this cost into your budget.

Maintenance: You also need to consider the upkeep of your home. You should budget for seasonal maintenance such as lawn care, pest inspections and carpet cleaning, as well as unexpected repairs. The amount you budget will depend on the age of the home, as older homes tend to require more repairs such as installing a new roof, painting and replacing older appliances.

Insurance: Depending on the type of coverage and your area, the costs for homeowners insurance each year can be anywhere from a few hundred to thousands of dollars. And, if you live in an area that has high risks for flooding, earthquakes, hurricanes, etc., you may need supplemental insurance.

Remodeling/Upgrades: Unless the home you purchase is picture perfect, you'll more than likely be adding your personal touch. Therefore, you need add to your housing budget the costs for remodeling and upgrades. According to "Remodeling Magazine's" 2007 Cost vs. Value Report, the national average for a midrange minor kitchen remodel is $21,185; a bathroom remodel averages $15,789.

Even minor cosmetic fix-ups such as light fixtures, window treatments, carpeting and decorative cabinet knobs can begin to add up.

By determining all the costs associated with homeownership, you can go into your home search with a reasonable price range that will allow you stay within your budget.

Should Buyers Use a Real Estate Professional?

Gary Macrides (Surterre Properties Inc) — Sat, 23 Aug 2008 12:25:00 -0700

By Gary Macrides
Prudential CA Realty

With just the stroke of a few keys, you can find myriad resources on the Internet to help you in your search for a new home. Besides property listings, you can find out about specific communities, schools and mortgage options. Prudential Real Estate has made three great resources - Environmental Profile, Property Profile and Value Range Estimate - available on prudential.com/realestate that provide detailed real estate information just by keying in a U.S. property address.

With this wealth of information at your disposal, do you really need a real estate professional to represent you? Absolutely.
Think of it this way, when you go to an unfamiliar place, sure you could do a self-guided tour. However, your tour is much more rewarding and enriching when you have someone who is familiar with the location to guide you along because he or she has inside knowledge on the history, culture and stories that you may not have otherwise received.
The same can be said about sales professionals. Their role is more than someone to drive you around from property to property. They can be a great resource, especially to homebuyers relocating from other communities. He or she knows the local area including home values, taxes, utility costs, and school data, and may even be knowledgeable about resources pertaining to your special interests or needs. For instance, should you require help relocating an aging parent with you, your real estate professional may be able to direct you to local services or organizations for the elderly.
A sales professional can familiarize you with the processes involved in buying a home, alert you to potential risks, help you determine how much house you can afford, explain alternative financing strategies, as well as provide tremendous moral support.

Another benefit is having a strong advocate during the negotiating process. Sales professionals can help you objectively evaluate an offer then work to negotiate a favorable contract. During the process, he or she will review the contract and obligations before you sign, explain how contingencies and release clauses work, and so on.
And something easy to overlook is our familiarity with the complexity and risks inherent in the process. In the years I have been practicing I have been continually amazed at how quickly a seemingly simple transaction can grow legally complex and risky. When complex questions arise, a sales professional can help you quickly locate an attorney or other licensed professionals whose services you may require, such as home inspectors, engineers, surveyors and lenders.

As your single point of contact, a sales professional can manage the entire transaction including coordinating inspections, keeping in touch with the other real estate professionals, managing the documentation for the loan process, monitoring deadlines associated with contingencies, providing applicable paperwork, estimating closing costs, and helping prepare for a smooth and uneventful closing.
If you're about to begin the process of buying or selling a home, consider involving a real estate professional. When the stakes are high, it's comforting to have a specialist by your side.

Make Safety an Open House Priority

Gary Macrides (Surterre Properties Inc) — Tue, 24 Jun 2008 11:27:09 -0700

By Gary Macrides

Prudential California Realty

An open house can be a great marketing tool, but it also means exposing your home and family to countless strangers. Don’t assume that every person who visits your home is an earnest, potential home-buyer. It’s important to take security seriously. Here are some common security measures that can pull double-duty, keeping you and your family safe while enhancing your home’s marketability:

Remove personal items such as family photographs, your children’s artwork, calendars that include daily routines and other items that may reveal the names of your family members or everyday life. Removing or packing away these items will not only enhance your privacy, it will also help keep the potential home buyer focused on your home and not your family. A house that’s been depersonalized shows better because it’s easier for the buyer to visualize living in the house.
Identity theft is a growing problem, so be sure to remove or lock up all credit cards, bills, health insurance information and anything else that contains personal information like social security numbers and bank account numbers. Of course, this step removes clutter from your counters, maintaining visual appeal.
Remove or lock up jewelry, cash and other valuables; firearms and other weapons; and all prescription medication.
Make sure the house is well-lit and keep all interior and exterior walkways clear of clutter and other debris. · After each showing, take a thorough walk-through of your house and make sure all of the doors and windows are shut and locked, and that no items or valuables are missing.

In addition to safeguarding your property and identity, there are precautions you should take to protect yourself if you are present during an open house. Ideally, your real estate professional will be representing you during the open house, so that potential home buyers feel comfortable snooping around, opening cupboards and speaking freely about the home. However, if you do find that you are in the home alone, or are selling your home on your own, consider a few tips from the pros:

Never turn your back on a potential buyer. Instead, let the buyer lead you through the house. This allows you to watch the buyer and avoid becoming cornered or trapped.
Employ the buddy system. If you must show the house yourself, enlist the help of family or friends. This rule is especially important if the home is located in an isolated area.
Have a visitor register and make sure everyone who tours your home signs it and includes their phone number and address. This will help you keep track of who is viewing your home.
Know and have a plan for the fastest escape route for each part of your home. The open house process is just one step toward selling your home.

A real estate professional can provide you with a fresh set of eyes and will tour your home and point out safety measures you may have overlooked as well as answer other questions you may have about selling your home.

Now Is A Great Time To Buy A Home

Gary Macrides (Surterre Properties Inc) — Tue, 06 May 2008 16:35:12 -0700

By Gary Macrides, Prudential California Realty

If you're ready to buy a home and can afford it, now is a great time to buy. Mortgage interest rates remain very low. In many areas, buyers have a lot of inventory from which to choose and long-term homeownership continues to be one of the best ways for the typical American to build wealth.

Don't let all of the negative media attention about the "mortgage meltdown" keep you from pursuing your homeownership dream. Mortgage industry woes are primarily limited to subprime loans and other types of creative and comparatively risky financing products. While the mortgage industry stalled briefly to reconsider its more exotic loans, there is plenty of conventional financing available for qualified homebuyers. Interest rates remain at historically low levels - still less than 7% for the typical, 30-year fixed-rate mortgage.

Indeed, the market has changed. It's gone from a frenzied seller's market to calmer buyer's market. In fact, buyers haven't seen a market this strong in years. When the national median home price dropped for the first time on record, the decline made huge albeit misleading headlines. For starters, there is no such thing as a national real estate market. All real estate markets are local and driven by local factors that include the local economy, housing supply and demand factors and other attributes like geography.

The slight decline followed years of unprecedented steep home price appreciation and the reality is that only a handful of markets experienced price declines. Corrections in markets that experienced exorbitant home price appreciation were expected and signal good news for buyers. According to 2007 third-quarter National Association of REALTORS® (NAR) statistics, the vast majority of the nation's metropolitan areas showed rising or stable home prices with most areas experiencing modest gains.

Right now there are many homes from which to choose and in most areas buyers don't have to deal with the harried and hurried competition of multiple bids. The changing market has also changed the inventory landscape to include fewer speculative sellers and a larger share of serious and motivated sellers.

Prospective homebuyers have some time to shop inventory and thoroughly compare home types and prices, amenities, neighborhoods, commutes and other important real estate-related features. And buyers have stronger price negotiation power as sellers compete for their attention by offering concessions or other incentives.

While all real estate markets have ups and downs, Americans continue to consistently build wealth through homeownership. According to the NAR:

Ø On average, the value of a home doubles every 10 years. During the past three decades, home values have increased an average of 6.6% per year.

Ø The average homeowner today has 36 times the wealth of the average renter. Homeowners are essentially paying themselves when they pay their mortgages and this means they're building equity. Homeowners also benefit from some real estate-related tax write-offs like mortgage interest.

Ø Sixty percent of the average homeowner's wealth is their home's equity. For homeowners who're in their homes for the long-term, home equity typically is their single largest source of wealth.

Because every market is different, it's a good idea for potential homebuyers to contact a local real estate specialist to learn more about what's happening in his or her community and real estate market. The bottom line in real estate doesn't change - if you're ready to buy and can afford to make a long-term homeownership commitment, it's always a good time to buy!

Five Tips for a Green Home

Gary Macrides (Surterre Properties Inc) — Tue, 06 May 2008 16:21:21 -0700

By Gary Macrides, Prudential California Realty

Eco-friendly. Carbon footprint. Global warming. Energy-efficient. These catch phrases have become part of our lexicon as we've become more aware of our impact on the environment and our role in protecting it. As a homeowner, there are some simple, inexpensive steps you can take to make your home energy-efficient. Get started on the road to being "green" with these five tips:

Change Your Light Bulbs
By replacing just five incandescent light bulbs with compact fluorescent (CFL) bulbs, you can save $100 per year on electric bills while using up to 75 percent less energy and removing greenhouse gases from the environment.

Buy ENERGY STAR® Appliances
ENERGY STAR-qualified appliances, such as refrigerators, washers and air conditioners, meet a higher level of energy efficiency set by the Environmental Protection Agency and U.S. Department of Energy than standard models. According to ENERGY STAR, if just one in 10 homes used ENERGY STAR-qualified appliances, the impact could be compared to planting 1.7 million new acres of trees. And, switching to these appliances is not only good for the environment, but also easy on your pocketbook. Although these appliances may costs more, you can reduce your energy bill by $80 per year.

Seal Up
Cracks and air leaks represent cash seeping from your doors and windows. Get rid of air leaks in doors, windows and other areas by caulking gaps and cracks. This will help decrease your heating and air conditioning bill. But make sure you use silicone sealants. Acrylic caulk tends to shrink, while silicone sealants are waterproof and won't shrink or crack, creating less waste.

Use Less Water
Did you know that roughly 60 percent of a home's water consumption takes place in the bathroom, according to the California Urban Water Conservation Council? The largest culprit is the toilet, which accounts for 27 percent of your household supply every year. By installing low-flow toilets, showerheads and faucets, you can save thousands of gallons of water each year. In addition, replace leaky fixtures. That slow-dripping faucet can waste as much as 2,400 gallons of water per year.

Adjust the Thermostat
When adjusting your home's thermostat, the rule of thumb should be: turn up the dial in the summer and down in the winter. Lowering the temperature by just one degree will reduce your electrical costs. And if you use a programmable thermostat, you can program your air-conditioning and heating systems to reduce output while no one is at home or at night while you sleep. Ceiling fans are also helpful in circulating the air to keep the room cool in the summer and warm in the winter.

Going green doesn't have to be overwhelming or costly. By making just a few small changes within your home, you can help decrease energy consumption and help make the world a "greener" place.

A Home Shopper’s Must-Haves and Wish Lists

Gary Macrides (Surterre Properties Inc) — Tue, 08 Jan 2008 09:37:29 -0800

By Gary Macrides
Prudential CA Realty

Shopping for a home is an exciting adventure and it's easy to get lost in a sea of dazzling for-sale homes and all of their fabulous amenities - which can cause you to temporarily forget that a large backyard is your top priority. To keep yourself focused, take time to identify and organize exactly what you're looking for in a home by creating thorough "must-have" and "wish" lists before you begin home shopping. You may also want to make a third list that details your dislikes.

To get started ask yourself these questions: Which items and features must your home have? Which items and features would you like to have, but could live without? What would your dream house include? And, what features or issue must you avoid?

For the must-have list, try to focus on essentials and hard-to-change details, like a home's layout. If you must have a three-bedroom, two-bath house, put it on the list. Ranking your must-haves in order of importance is also a good idea.

Hard-to-change, must-have features can include the type of house, for example a two-story colonial or sprawling rancher; the number of rooms and square footage; the home's proximity to shopping; or its overall condition. Your must-have list can't be too detailed because it aims to itemize the features that are most important to you and your family.

Your wish list is the flexible and fun list. Wish lists are good for cosmetic features that would be great to have, but that can be changed. Hardwood floors can replace old wall-to-wall carpeting. If the yard is large enough and has adequate open space, a pool can be installed later. And landscaping can be a work in progress. Since the wish list is secondary, there are no limits so be sure to also include your dream amenities. While compiling your lists, don't hesitate to confer with your real estate professional, who is a great source for information about neighborhoods, homes and other pertinent "must-have" information.

Once you've determined your must-haves and optional features, create a checklist to take with you during your home tours. Besides helping you stay focused, it will provide an organized review of each house. Your lists will most likely change as you tour homes and see what the market really has to offer. It's also unlikely that one house will include all of your must-have features. But, your efforts will be well worth it once you find the perfect house that includes just enough must-haves and even a few wishes. Your perfect home might not include that must-have basement, but its view may be a dream come true.

Gary Macrides can be reached at (949) 370-6827. Prudential CA Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Moving With Children

Gary Macrides (Surterre Properties Inc) — Mon, 01 Oct 2007 10:57:26 -0700

Moving With Children

By Gary Macrides
Prudential California Realty

Moving is an exciting time full of commotion that can be tough on everyone, including the children. The impact the move will have on kids usually is age-related. Babies, toddlers and young children tend to deal well with moving, while adolescents may resent and resist the move. Here are a few timeless tips that may help all families on the move:
Clearly explain why you're moving. Children like to be in the loop and talking to them about the move, what it means and what it will entail can help limit move-related anxiety.
Familiarize the children with the new location by providing them with exciting information about the area. Some useful tools include maps, news stories and pictures. Highlight some of the location's points of interest that you think your children will appreciate, like an amusement park or nearby lake.
Make sure everyone has packed and clearly labeled their most-used items and keep these items easily accessible. For a small child, this could include a few favorite toys or a security item. Older kids may not be able to survive without certain electronics or favorite clothing items.

Moving Babies and Toddlers
Babies and toddlers typically are easy to move, but they also can become confused or scared. Consider the following tips for them:
Pack their rooms last and keep favorite toys and other must-haves close at hand.
Try to stick to established routines like lunchtime and naptime.
Once in the new house, young children may need to be reminded about which household appliances are dangerous and other safety precautions or rules they learned at the previous house.

Moving Preschoolers and School-Age Children
Kids this age can get excited about moving and may be eager to help. If you're moving with school-age children, consider the following tips:
Let the children help pack their own rooms and once you're in the new house, let them help decorate and arrange their new rooms.
Locate the recreational facilities and children's group activity centers. Once you're in the new location, enrolling your children in group activities can help them quickly make new friends.

Moving Adolescents
Adolescents are deeply involved in their social network. Child development experts suggest these kids receive news of the move as soon as possible. They will need more time to get used to idea and to say good-bye to their friends. Some other tips to consider:

Spend time together getting to know the new area by driving around and noticing what other kids are doing and wearing. Discuss how you can help your child "fit in." If your child is a senior in high school, some child-development experts suggest letting the child stay behind to finish the school year. These experts emphasize that this decision only makes sense if your child's living conditions will be appropriate and safe.

Moving is an exciting time when families tend to work together to make sure the adventure goes smoothly. Your real estate professional has helped many families move and is a great resource for more information about moving with children.

Gary Macrides can be reached at (949) 370-6827. Prudential California Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

How Does the Escrow Process Work?

Gary Macrides (Surterre Properties Inc) — Thu, 13 Sep 2007 21:47:01 -0700

How Does the Escrow Process Work?

By Gary Macrides - Prudential California Realty

One of the stages of the home buying process is escrow. This process begins when the offer is accepted and ends once the financing is approved and the buyer and seller have fulfilled their requirements. So how does it work?

A neutral third party agent of the principals-buyer, seller, lender and borrower is designated the escrow holder. This agent assists with the transfer of ownership by ensuring that the terms of the transaction are completed including safeguarding all funds (including the buyer's deposit) and documents.

The escrow holder keeps track of obligations of the seller or buyer. For example, if the seller is required to supply a termite inspection, the escrow holder will make sure it is fulfilled before any funds are transferred to the seller. Findings in the termite inspection report must be corrected on or before the close of escrow. In addition, the escrow holder receives from the title company a complete ownership history of the property and any liens on record in the preliminary title report. Any discrepancies that affect the condition of the title, such as condo liens, judgments, etc., against the buyer and seller, must be addressed prior to close of escrow.

The escrow process can last any number of days depending on what is agreed upon between the buyer and the seller. To assure a timely closing, it is important that each party provide the escrow holder requested information as soon as possible. For example, a lender will not fund a new home without a homeowner's insurance policy. Without the lender's verification that there is insurance, the escrow process may be delayed. An unsecured source of funding, such as a personal check can also delay the process, because it takes longer for those types of funds to clear.

The escrow process is just one step towards fulfilling the dream of homeownership. Your real estate professional can provide more detail on the escrow process, as well as answer other questions you may have about home buying and selling.

Preparing Your Home for a Successful Open House

Gary Macrides (Surterre Properties Inc) — Thu, 13 Sep 2007 21:39:47 -0700

Preparing Your Home for a Successful Open House

By Gary Macrides - Prudential California Realty

Buyers are drawn to homes that appeal to their senses. This is important to remember when preparing your home for an Open House. Through sight, sound and smell, buyers should leave your home with a lasting impression. Here are some tips to showcase your home in the best-possible light.

Exterior

Start outside by inspecting the front of your home from across the street. Does it have curb appeal? It should look inviting, with a trimmed lawn and flowerbed and a freshly painted front door. Polish door handles and knockers and replace worn items such as a rusty doorbell. Consider adding a new doormat and flowering plants at the entrance. Do the windows need cleaning? Be sure to remove oil stains from the driveway. Next check the side and back yards. Add some flowering plants to the back as well. Rearrange the outdoor furniture to look inviting. Put away gardening tools. Tidy around the grill area.

Interior

Now focus on the inside of the home where cleanliness, space, smell and lighting are key. First, get your house in tip-top condition by cleaning and clearing away clutter. Steam clean and vacuum the carpet. Make sure your floors are waxed and shiny. Touch up nicks on walls and make sure the porcelain sinks and tubs and metallic fixtures shine. Your kitchen and bathrooms should pass the white glove test. Be conscious of any lingering odors such as smoke, pets or strong-smelling foods. You may need to air out your home prior to the Open House. Consider grinding fresh lemons in the garbage disposal or even baking chocolate chip cookies. And don't forget to empty all trashcans.

Next, set the mood. You want buyers to be able to picture your home as their own. Consider rearranging the furniture so that rooms look more spacious. Add accessories from rooms with too many furnishings to those that appear bare. Look at your countertops in the kitchen and bathrooms and the tops of your bureaus. Do they seem cluttered? Clear away and store as much as possible. The idea is to make your home appear spacious.

Lighting is also an important factor in creating an inviting atmosphere. Bright lights provide a cheerful environment and make a small space appear larger. Pull back all the drapes and open the blinds. Turn on all the lights. Make sure all the light sockets have working bulbs and install the maximum-wattage bulb that is safe for that fixture. For rooms that you want to have a warm, cozy feeling, use softer lights.

Don't forget little touches such as fresh flowers, lighted candles in the bathrooms, new logs in the fireplace, or a bowl of fresh fruit on the kitchen counter. You may even want to set your dining room table with color-coordinated table settings.

An Open House is a terrific way to show your property to many people in a short amount of time. However, keep in mind that buyers may see seven or eight homes in a single day. The most memorable home will be the one that seemed the brightest, the most spacious and the most cheerful. So, don't rely on buyers to use their imagination. Help them capture it. Work with your real estate professional to get more tips on creating an unforgettable home.