Lori Day's Blog

Household Maintenance Made Easy - Volume II April

Lori Day (Infinity Realty) — Sun, 04 Apr 2010 09:31:19 -0700

With the go-go lifestyles we lead, it can be easy for life's to-do list to be overwhelming. My monthly home & lifestyle maintenance checklist will help you stay organized, show you how to do a little at a time, and how to get everything DONE.

Indoor Cleaning Tips

Use your vacuum and dishwasher to clean more efficiently. Start at the ceiling line with the vacuum: Vacuum walls, baseboards, and furniture before vacuuming floors. Empty the bag as soon as it starts getting full.

Use the dishwasher for everything that fits. On some models, you can take out the top shelf for oversized items you might not have considered like the bathroom garbage cans, broiler pans, and bath caddies.

Clean and shampoo carpets. If you can, hire someone to do this; it will save a lot of time and free you up to do other things. Wash floors, then treat per manufacturer´s instructions. Wash woodwork including moldings, baseboards, and doors.

Take down curtains and drapes. Wash or dry clean. Wash mini-blinds, blinds, or shades. If damaged, repair or replace. Clean lamps and ceiling fans, removing light bulbs and covers to wipe/polish.

Take down pictures and artwork. Clean frames and glass. Move appliances and heavy furniture. Clean underneath.

Indoor Organizing Projects

Empty clothing closets, toy boxes, cupboards, and drawers. (If you´ve been decluttering and cleaning throughout the year, you know which ones you generally ignore.) Vacuum, dust, or wash shelves, drawers, and cabinets depending on when they were last cleaned. Repaint or wallpaper a closet if you have time
Sort winter clothes for tossing, donating, tag sales, or storage. Wash or dryclean woolens and down-filled clothing then store with cedar chips. (Tip: Use "Space Bags" to store large/many items in a small space. These really help maximize storage areas such as closets and under the bed.)
Go through bookshelves. Get rid of any books that you no longer need or want. Donate or set them aside for a tag sale. Dust and replace on clean shelves. Sort through videos, DVDs, electronic games, and music CDs. Toss damaged tapes and CDs. Sell or donate old games, CDs, and movies.
Sort through computer clutter. Donate usable software, manuals, and equipment. Find a recycling center for dead equipment. Pitch disks and floppies that you can´t read on your current systems.
Set aside garage sale items, drop off donations, and haul garbage to the dump or dumpster.

Outdoor Checklist

You still have time to reseed patchy areas of the lawn. Now is a good time while everything is in growth mode. Be sure to scape off dead/dried out grass and remove before seeding.
Transplant and move plants that are still dormant or just starting to wake up. If you wait, they may be too leafed out and more susceptible to transplant shock.
Have your sprnkler system checked for leaks or clogs. Set timer for early-morning watering three times per week. (Tip: You will probably be able to over-ride many of these watering sessions since we typically get a lot of rain in April. This way though, when the heat kicks in - your system is up and ready to go.)
Bring out hoses and seasonal lawn equipment. Wash lawn furniture and hose off exterior of grill (at least the parts that were not covered during the winter season.) Scrub down patios, stairs & decks.
Wash exterior windows. (Tip - Windex Outdoor works great - and is a snap to use.)

You can stay on top of your home's maintenance by doing the little things all year long. Just a little bit of effort through the year goes a long way toward avoiding major headaches down the line. Check back next month for the next volume of my Household Maintenance Made Easy series. Happy Homeowning!

Lori Day

Infinity Realty

(816) 200-4372 Cellular

(816) 554-6351 Fax

(816) 554-6368 Office

mail to: Lori@LoriDaySells.com

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My Mission Statement:

At Infinity Realty, we make a difference in real estate by saving our clients thousands! Whether you're buying or selling, I WILL save you money; with expert negotiation skills and lowered commission rates. When you hire me, you won't sacrifice service! I promise I'll provide you with a full-service customized client experience, at the highest level of integrity. I do the little things that make a difference - from start to finish, and beyond. Your satisfaction is my mission, because I want to be your Realtor for life!

Household Maintenance Made Easy - Volume I March

Lori Day (Infinity Realty) — Sun, 21 Mar 2010 07:24:06 -0700

Outdoor Projects

Start spring yard clean up. Edge and lay a fresh layer of mulch in beds

Top dress and reseed lawns. Mow when grass gets to be 4" high. Be sure not to mow it too short.

Fertilize almost everything.

Double check all gutter extensions and splash blocks to ensure water is being carried away from the foundation of the house.

Indoor Maintenance

As spring rolls in, remember to check your basement for cracks or leaks. If you see moisture, call a professional to check it out. Many homeowner´s insurance policies no longer cover fungus or mildew damage, so sealing basements is more important than ever.
Fill all bathroom sinks to the top, and let the top drain remove as much water as it can before pulling the drain plug. Running water through the top drain will help prevent slow drain issues when done regularly.
Check all the batteries in your smoke and carbon monoxide detectors. Also double check the expiration of your fire extinguisher. If you don't have one - get one.

Lifestyle Checklist

Prepare for vacation. Schedule time off. Make reservations and schedule flights for summer months.
Organize your paper life. Root out and recycle old magazines, newspapers, and assorted mementos. Build a new file system or clear out old files that are past being useful.
Start a file named Household Maintenance Schedule. Print off each monthly checklist to hang on your refrigerator. When the list is completed, file away for future use.
Prepare taxes or have them done, if you haven´t already. File electronically this year. If you owe, write the check and prepare to mail...on April 15 and not a minute sooner.

Lori Day

Infinity Realty

(816) 200-4372 Cellular

(816) 554-6351 Fax

(816) 554-6368 Office

mail to: Lori@LoriDaySells.com

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My Mission Statement:

Can't I Just Call The Listing Agent?

Lori Day (Infinity Realty) — Sun, 14 Mar 2010 07:53:48 -0700

So you're driving down the street, and you see a beautiful home for sale. You pull a flyer out of the box in front, and it looks like THE perfect home for you. The next thing you do is call the number for the listing agent and set up a showing - right? WRONG! At least not if you want an agent that's working for YOU.

When you're ready to buy a home - one important thing you need to understand is "Agency". There are many ways a consumer can work with an agent in the KC Metro, and it's important to know who is working for whom.

In most cases, the agent who lists a home for sale is representing the seller - and the seller only. So if you call the listing agent to view & write an offer on a home, you're on your own. What's worse is not only will they not be able to provide you advice on purchase price and terms, but any personal information you tell them about yourself WILL be passed on to the seller. (Why you're moving, what you can spend, how interested you are in the home, etc..) This can definitely jeopardize your position at the "negotiating table."

What you need is an Exclusive Buyer Agency Agreement with a qualified Realtor, so that your interests are represented. A Buyer's Agent will be working for you to get you the best price and terms possible, and all of your information and motivations will be kept confidential. Best of all, buyer representation is at no cost to you in Kansas and Missouri.

So, rather than driving around looking for homes, and calling several separate Realtors to view the ones you like - get your own Realtor first. Having a qualified professional on your side will save you time and money. Although buyer representation is "free", having someone to guide you through the process from start to finish is "priceless."

For more information about buying a home in the Kansas City Metro Area, call or email me any time. I stand ready to answer your questions and help to guide you through the process.

Lori Day

Infinity Realty

(816) 200-4372 Cellular

(816) 554-6351 Fax

(816) 554-6368 Office

mail to: Lori@LoriDaySells.com

Curious about prices in your neighborhood? Want to know what your home might sell for?

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My Mission Statement:

HOPE Program Offers Additional Buyer Incentives In Missouri

Lori Day (Infinity Realty) — Tue, 09 Mar 2010 07:15:00 -0800

The Missouri Housing Development Commission (MHDC) is currently offering an incentive program to first-time and repeat buyers in Missouri, called the Home Ownership Purchase Enhancement (HOPE) Program.

MHDC has allocated $15 million toward the HOPE program. Qualified Missouri families that purchase a home in 2010 are eligible for a HOPE incentive equaling the amount of the 2009 real estate tax bill associated with the property they purchased, up to a maximum of $1,250. Additionally, homebuyers who are approved for the real estate property tax HOPE incentive may also be eligible to receive an additional amount if they bought a qualified newly constructed energy efficient home or bought an existing home and remodeled or purchased items, such as Energy Star appliances, to make the home more energy efficient. The maximum combined total of the HOPE property tax incentive and the HOPE energy efficiency incentive is $1,750.

This is a great opportunity for new homeowners to get a little extra cash in their pockets! For program details, and to see if you qualify, visit #mce_temp_url#

Lori Day

Infinity Realty

(816) 200-4372 Cellular

(816) 554-6351 Fax

(816) 554-6368 Office

mail to: Lori@LoriDaySells.com

Curious about prices in your neighborhood? Want to know what your home might sell for?

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My Mission Statement:

Are Foreclosures Really All They're Cracked Up To Be?

Lori Day (Infinity Realty) — Sun, 21 Feb 2010 11:08:49 -0800

"My friend Mary just got an awesome deal on a foreclosure! She got the house for $35,000 below market value."

In this market, who among us has not heard a story similar to that? Sure, when you know just what you're up against and have an experienced Realtor to guide you, foreclosed and distressed homes can be a fantastic opportunity for some walk-in or sweat equity. But there is a lot of the story missing; and buyers out to get a steal in the the real estate market often have to find out the hard way that it is not just making a low-ball offer and signing on the dotted line.

First, when you're negotiating to purchase a foreclosed home - you are at the mercy of the bank, investor, or servicing company who is handling the sale of the property. The whole process will happen on the terms of the seller; and while it may take them days to answer a buyers offer, they expect all counter-offers and documentation from the buyer to be submitted immediately.

They will outline the closing date, inspection and financing timelines. Many of these homes are without utility service and/or have been winterized, which can add $200-$300 in additional inspection expenses. In most cases, the home will be sold as-is (except for the case of termite infestation, which all sellers in this area are compelled to treat by law), therefore many of these homes will not pass FHA or VA Appraisal requirements.

Buyers can spend up to $1000 on inspection costs, only to find that the condition of the house is unacceptable to the lender, or buyer - or both. Having to start again the search and negotiation process can be frustrating, especially with a lot of time and money having already been spent.

So if the process to buy these foreclosures is so difficult, why do buyers even bother with the process? Simple! They remain in charge of one major aspect of the sale - the price. Buyers have quite the advantage in this current real estate market because there are so many distressed homes for sale. Many of these homes are being sold for thousands (and even tens of thousands) below a "typical market value."

Even the homes that need some work can represent a great profit opportunity to the savvy buyer. However, a lot of the available homes out there are in terrible condition, and will require thousands of dollars in repairs and updates. Therefore, what a buyer will spend in total on the property must be considered.

Many buyers who have already purchased homes are surprised to find that they have little room to "make demands" like they have in past transactions. First-time buyers - for whom the buying process is already full of surprises, can be easily (and understandably) overwhelmed by the additional difficulty added when buying a foreclosed home.

This is why it is essential to have an expert Realtor in your corner. Now more than ever, having a skilled agent guiding you through the process step-by-step will help ease what is likely to be challenging at the very least. With all the changes happening in lending and the housing market - consumers need someone on their side who stays informed, and is out there "fighting the battle" for their clients every day.

So before you decide to "hop aboard the foreclosure train", be sure to contact an experienced Realtor who will help you examine the pros and cons. Each buyer's situation and home for sale are unique, so be sure you have an expert to help you decide what's right for you.

Lori Day

Infinity Realty

(816) 200-4372 Cellular

(816) 554-6351 Fax

(816) 554-6368 Office

mail to: Lori@LoriDaySells.com

Curious about prices in your neighborhood? Want to know what your home might sell for?

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My Mission Statement:

Say No to Double Taxation

Lori Day (Infinity Realty) — Sun, 14 Feb 2010 08:51:18 -0800

The Show Me State has something new to share with its citizens. It’s called a real estate transfer tax, and its effects will be felt by property owners for years to come. A real estate transfer tax is a one-time tax paid at the closing of a property. Like a sales tax, a transfer tax would charge every seller a percentage of the total sale price.

With unemployment spiraling out of control, a credit crisis of epic proportions crippling our economy and the number of home foreclosures at an all-time high, the government is looking for ways to generate revenue. And they want to dig into your pockets to do so. The real estate market has already been taxing on Missourians. But the government thinks not nearly taxing enough. Wasteful spending has our state government falling into an unprecedented deficit, and they want the citizens to provide the bailout.

Real estate transfer taxes are nothing more than double taxation, and are often paid by the people who have lived in their home for years and have already paid thousands of dollars in annual property taxes. With banks demanding larger down payments, a transfer tax would make it more costly and much harder to buy a home, especially for first-time home buyers. The government collects a transfer tax any time you transfer ownership of your home, land or other real estate.

Currently, Missouri is one of 13 states that do not impose transfer taxes. However, real estate transfer taxes are happening in other states, including Illinois, Iowa, Kansas and Arkansas. We need to send a clear message that now is not the time to for new taxes that target already struggling property owners.

The Missouri government currently has the power to enact a transfer tax at anytime, but the Missouri Association of Realtors is leading the charge to amend the state constitution and prohibit the real estate transfer tax for good. A 2010 ballot initiative is already in place. A “YES” vote means changing the Missouri constitution to prevent the state or local government from ever charging new taxes on the sale of a home or property. As the real estate market struggles to recover, new taxes are not the answer.

It’s time to keep the American dream alive and say “YES” to no more taxes . Visit www.yestosavehomes.com or call (877) 710-8683(VOTE) for more information.

Lori Day

Infinity Realty

(816) 200-4372 Cellular

(816) 554-6351 Fax

(816) 554-6368 Office

mail to: Lori@LoriDaySells.com

Curious about prices in your neighborhood? Want to know what your home might sell for?

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My Mission Statement:

Real Estate Market Makes a Comeback

Lori Day (Infinity Realty) — Sun, 07 Feb 2010 06:57:07 -0800

Great news out today – as the National Association of Realtors reports December 2009 the fifth-highest volume residential home sales month in two years. December’s national totals increased 10.9% over December 2009.

This data certainly points to a trend of improvement. While some may point out that those numbers are skewed due to the massive response to the Federal First Time Home Buyer credit, I say “So what?”

In what has recently been an oversaturated market, homes are finally being sold. With the first-time buyer and move-up credits – everyone wins! Sellers in distress are finally being able to get out of trouble, and sellers in better situations are able to move up to larger homes in a “deal-rich environment”. First-time buyers are finding homes at deep discounts, and enjoying a big financial bonus to do so.

One of the greatest benefits of rising sales will be firming home prices. “For several months now we’ve been seeing stabilization in all of the home price measures as inventory is pulled down,” Says Lawrence Yun, Chief Economist for the National Association of Realtors. “As a result, the housing wealth for many middle class families has begun to stabilize.”

Yun projects the extended and expanded tax credit will encourage 2.4 million households to take the credit in 2010. “While new-home sales will remain low due to a lack of construction, existing-home sales are projected to rise to around 5.6 million in 2010,” Yun said. Last year there were 5.16 million existing-home sales.

There’s still time to make the deadline – but you must act fast! Buyers who have a contract in place to purchase a primary residence by April 30, 2010, have until June 30, 2010, to finalize the transaction to qualify for a tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.

Although the tax credit has been extended and expanded in the past – there’s no guarantee it will happen again. After all, all good things must eventually come to an end.

Contact me for more information on how you can cash in on this credit before it’s gone.

Lori Day

Infinity Realty

(816) 200-4372 Cellular

(816) 554-6351 Fax

(816) 554-6368 Office

mail to: Lori@LoriDaySells.com

Curious about prices in your neighborhood? Want to know what your home might sell for?

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My Mission Statement:

On Your Mark...Get Set...GO!

Lori Day (Infinity Realty) — Sun, 31 Jan 2010 13:19:31 -0800

The race is on to “cash in “on the $6,500 tax credit now available to all home buyers that have owned their most recent home for 5 out of the last 8 years! In real estate terms this is a short race, you might even say a bit of a dash! To receive the tax credit, you must get a home under contract by April 30, 2010 and close by June 30, 2010. This means a homeowner needs to put their current home on the market to get it sold as soon as possible. For details about the $6,500 tax credit and who qualifies, visit: http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit

Lori Day

Infinity Realty

(816) 200-4372 Cellular

(816) 554-6351 Fax

(816) 554-6368 Office

mail to: Lori@LoriDaySells.com

Curious about prices in your neighborhood? Want to know what your home might sell for?

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My Mission Statement:

Proposed Reduction on Mortgage Interest Deduction

Lori Day (Infinity Realty) — Mon, 02 Mar 2009 18:39:19 -0800

Here is some info thanks to the National Association of Realtors.

Then below is a blog Re-posted wiit thanks to Stephanie Roulier

NAR Opposes Mortgage Interest Deduction Provision on Obama's Budget Proposal
National Association of Realtors ^ | February 27, 2009 | NAR

Posted on Friday, February 27, 2009 8:06:50 PM by free-n-TX

February 26, 2009 - President Obama released his budget proposal this morning. A small section of the sweeping budget plan has the potential to become a major impediment to a recovery in real estate markets across the nation. NAR is 100% opposed to the provision that modifies the Mortgage Interest Deduction and is prepared to use its formidable array of resources against its enactment.

As currently drafted, the plan changes the Mortgage Interest Deduction by reducing the amount of mortgage deductibility on families earning over $250,000. This proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values. If this proposal is enacted it will set of a new round of price depreciation, will cause greater distress on the balance sheets of banks as the collateral value of mortgage backed securities declines. A second credit crisis could emerge before the first one is resolved.

As you read this NAR is launching a multiphase plan of action to eliminate this provision from the budget plan. In the next 24 hours, NAR will be expressing our concerns directly to President Obama, to all members of the United States House of Representatives and the Senate, placing advertisements in the publications read by Washington, DC decision makers. Additionally, NAR will be forming a coalition with other groups affected by this proposal.

Via Stephanie Roulier (RE/MAX Property Legends):

Every time you watch the news, open your homepage on the computer or read a newspaper, we're told home sales are declining and that last month was even worse than the previous month which was the worse in thirty-odd years. There is still no end to falling prices and even amazing rates, like 5% mortgages are not getting people to sign on the dotted line. Then on Thursday, President Barack Obama announces in his proposed budget, that the most sacred of tax deductions, (the mortgage interest deduction) will be reduced for certain homeowners.

The timing of this proposal couldn't be worse. I believe we need every incentive available for people to make a home purchase. So, Joe Jones, down the block, is making $209,000 a year and wants to purchase a house, thereby supporting the economy, the real estate industry and the construction industry and you're going to penalize him by allowing him a smaller deduction on his taxes? We need as many people buying homes as possible. If it takes incentives, LOWER tax rates, or one-percent loans (with no adjustable rates to go up or balloon payments) or prices to finally bottom-out, so be it. Let's not penalize Joe Jones for being "rich" (and when did that become a dirty word?!?).

I realize that President Obama's proposal must pass Congress and even with an approval rating hovering about 12%, I hope cooler heads in Washington will prevail and the mortgage interest reduction remains as is.

And don't even get me started about lowering the deductions for charitable contributions!

Lori Day

Infinity Realty

(816) 200-4372 Cellular

(816) 554-6351 Fax

(816) 554-6368 Office

mail to: Lori@LoriDaySells.com

Curious about prices in your neighborhood? Want to know what your home might sell for?

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My Mission Statement:

Buyer Series – Buying Short Sales – Sweet Deal or Short Changed?

Lori Day (Infinity Realty) — Tue, 24 Feb 2009 10:04:50 -0800

With all the recent financial troubles daunting many American families, we've seen a huge increase in listings called "Short Sales." While short sales can represent a "sweet deal" for the buyer looking to buy a bargain - in many cases, they can be more trouble than they are worth.

WHAT IS A SHORT SALE?

A short sale is when a homeowner is unable to sell their home for enough money to pay off their mortgage. (This is either because they have been loaned more on the home than the market will bear, or because values in the area have decreased substantially.) Therefore, the bank agrees to accept less than the mortgage payoff in order to avoid foreclosure proceedings (which can cost the lender up to $60,000).

BEWARE - THE ASKING PRICE IS THE AGENT'S "BEST GUESS"

When a home is listed as a short sale, it is extremely rare that the lender has already been consulted in order to approve the list price. The listing agent will attempt to estimate an amount far enough below market value to attract buyers, which is still high enough to receive approval from the lender. For that reason, the asking price that attracts the buyer in the first place may not be the amount the bank will accept. In addition, it's not only unusual to negotiate less than the agent's estimated short sale price, but also fairly common to end up being asked to pay more than that price.

THE HOME WILL BE SOLD AS-IS

Before a buyer begins negotiation on a short sale home, it is important to know that the lender (who is paying all the fees in the transaction) usually will not make any repairs (including pest inspections or treatment, and home warranties). This means that any questionable items that come up as a result of a home inspection are for the buyers' knowledge only. However, it is imperative to go through with the inspection process, and leave this contingency as a "loophole" in case serious issues come to light.

THE CLOSING DATE IS ANYONE'S GUESS

It can take 2-6 weeks just to receive an answer from the lender on the original purchase offer! If there are two lenders involved (a "first mortgage" and a "second mortgage"), those two entities have to agree on how to split the loss - so it can take even longer to reach an agreement. In addition, the short sale closing process takes an indefinite amount of time. It is extremely unusual to close in 60 days or less - and pretty common to take several months before finalizing the sale. So buyers in a time crunch may not be able to coordinate a closing fast enough to meet their needs.

HIRE AN AGENT WITH SHORT SALE EXPERIENCE

Once a buyer has decided to pursue a short sale "eyes wide open" - it's very important to have a Realtor on their side that is familiar with the short sale process. Although buying any given short sale home is never a "done deal" until closing - having the right agent can literally make or break the deal. A great deal of communication, understanding of the process, and follow up is necessary to give a short sale its best chance for success.

While buying a short sale home can represent a great "deal," there are many potential stumbling blocks along the way. It is important to know just what you're getting into going in, so you're prepared for the possible pitfalls you may experience during the sale. Most of all, hire a Realtor with experience in all kinds of sales (short, foreclosure, traditional, etc.) so that he or she can help you explore your options, and choose the best route for you.

If you would like more information about buying or selling a home in your area, please don't hesitate to contact me! I am always available to answer your questions - and ready to serve your real estate needs. Your complete satisfaction is my goal - because I want to be your Realtor for life!

Lori Day

Infinity Realty

(816) 200-4372 Cellular

(816) 554-6351 Fax

(816) 554-6368 Office

mail to: Lori@LoriDaySells.com

Curious about prices in your neighborhood? Want to know what your home might sell for?

"Become a Fan" on Facebook!

My Mission Statement:

'Stimulus' and 'Stability' Equal Help for Homeowners

Lori Day (Infinity Realty) — Mon, 23 Feb 2009 06:06:52 -0800

Here is an overview of some benefits of the Economic Stimulus Plan for 2009 and the Homeowner Affordability and Stability Plan that may impact you.

Stimulus Plan - Tax Credit for Homebuyers

The $787 Billion stimulus bill is made up of tax cuts and spending programs aimed at reviving the US economy. Although the package was scaled down from nearly $1 Trillion, it still stands as the largest anti-recession effort since World War II. One of the major benefits of the plan is a tax credit for new homebuyers. According to the plan, first-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit.

It's important to remember that the $8,000 tax credit is just that... a tax credit. The benefit of a tax credit is that it's a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if you were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, you would owe nothing.

Better still, the tax credit is refundable, which means you can receive a check for the credit even if you have little income tax liability. For example, if you're liable for $4,000 in income tax, you can offset that $4,000 with half of the tax credit... and still receive a check for the remaining $4,000!

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.

The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying "homes" include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify. Buyers will have to repay the credit if they sell their homes within three years.

While details are sketchy - we will expect to get some clarity soon as to an additional tier of conforming loan amounts which had been first established in 2008. This tier of home loans are those greater than $417,000, and with a maximum that depends on the area, but is not greater than $729,750. These loans would be eligible for rates that are slightly higher than conforming loan rates, but less expensive than the standard "jumbo" loan rates.

Homeowner Affordability and Stability Plan

President Obama unveiled his plan to help stabilize the housing market and keep millions of borrowers in their homes. The Homeowner Affordability and Stability Plan includes two initiatives to help struggling homeowners. One is a refinancing program for homeowners with less than 20% equity in their homes, or who owe more than their home is worth. The second program attempts to lower monthly payments for homeowners at risk of losing their home. Many of the plan's details are still being worked out and will not be announced until March 4. Here is an overview of the plan's main components.

Refinancing Initiative

Under current rules, those families who own less than 20% equity in their homes have a difficult time refinancing and taking advantage of the historically low interest rates. This initiative is open to homeowners who have conforming loans which are guaranteed by Fannie Mae and Freddie Mac, and who owe up to 5% more than their home is worth.

According to the plan, "credit-worthy" or "responsible" homeowners can refinance their mortgage into a 30- or 15-year, fixed-rate loan based on current market rates. The refinanced loan, however, cannot include prepayment penalties or balloon payments. For many families, this low-cost refinancing may help reduce their mortgage payments by up to thousands of dollars per year.

As with the rest of the plan, details about this initiative will be released at a future date--including what, if any, credit score requirements will be included.

Stability Initiative

This initiative aims at providing help to individual families as well as entire neighborhoods by helping reduce foreclosures and stabilize home prices. It is intended to help homeowners who are struggling to afford their mortgage payments, but cannot sell their homes because prices have fallen significantly.

The goal of this initiative is simple: "reduce the amount homeowners owe per month to sustainable levels." To accomplish this, lenders are encouraged to lower homeowners' payments to 31% of their income by lowering their interest rate to as low as 2% or by extending the terms of the loan. In addition, lenders can also lower the principal owed by the borrower, with Treasury sharing in the costs.

Homeowners who are current on their mortgages but are struggling can still apply for this program. As such, this is one of the few programs designed to help homeowners who may face delinquency soon, but are current at the moment.

This initiative also includes a number of additional elements and incentives, including an extra incentive for borrowers to keep paying on time. The initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.

Since the focus of this initiative is on helping families and neighborhoods, investment properties do not qualify.

(Posted with thanks to Barry Allen of First Federal Bank of Missouri.)

If you would like more information about buying or selling a home in your area, please don't hesitate to contact me! I am always available to answer your questions - and ready to serve your real estate needs. Your complete satisfaction is my goal - because I want to be your Realtor for life!

Lori Day

Infinity Realty

(816) 200-4372 Cellular

(816) 554-6351 Fax

(816) 554-6368 Office

mail to: Lori@LoriDaySells.com

Curious about prices in your neighborhood? Want to know what your home might sell for?

"Become a Fan" on Facebook!

My Mission Statement:

Seller Series – Why the Appraisal You Got is Probably Not the Price You’ll Get for Your Home

Lori Day (Infinity Realty) — Wed, 18 Feb 2009 06:39:17 -0800

I've heard it time and time again - my house appraised for $x, so that's what I am going to list it for. While it's great to know the approximate value of your home before listing it for sale - many sellers are misled (albeit unintentionally) by appraisals. Many times, the "appraisal value" a seller receives can vary significantly from the true "market value" of a home. Here's why...

IF THEY WORK FOR YOU THEY WANT TO DELIVER GOOD NEWS

When you hire a private appraiser, that company is working for you - the seller. Therefore, they want to earn your money, make you happy, and provide you with the highest possible value for your home. The typical private appraiser who comes out will likely use the "Cost Approach" method. This means he or she will estimate the amount it would cost to replace the home with all the improvements, minus depreciation - then add the approximate value of the land. While this method is a handy tool for getting an approximation of the value of your home - to satisfy curiosity, for instance - no sales comparison is used. Therefore, the value determined by the appraiser could be much higher than the market value of your home.

IF THEY BUY UGLY HOUSES IT'S GOING TO BE BAD NEWS

When you call one of the many investment companies out there, it's their goal to make money - not make you money. Therefore, when determining the "value" of your home, they will likely use what's called the "Income Approach" method. This involves estimating what an investor would pay for your home, based on the money he/she would put into it, and what they'd likely profit either by re-selling it, or in monthly rents. SO, if you call 1-800 WE BUY ANY HOUSE IN 10 DAYS - it's true you may be able to sell your house quickly. However, you will likely be given a value that is much less than the market value of your home - and end up "leaving money on the table" at closing.

ONLY A REALTOR WILL TELL YOU WHAT YOUR HOME IS "REALLY" WORTH

When you call a Realtor to do a Comparative Market Analysis (CMA) for your home, he or she will use the "Sales Comparison Approach" to determine the value of your home. This method will help you determine the current and actual market value for your home, as it involves comparing several properties similar to yours that have sold recently. While you could still receive a wide value range if you interview several Realtors, this approach is still your best bet for determining the current value of your home. (Tip: If you do interview several Realtors, look closely at the comparable properties they use to value your home. The more properties the better - and the more recent the sales the better. One or two properties that sold 9-12 months ago really have nothing to do with today's market!)

As you can see, appraisals are more of an art than a science. There are so many factors and methods involved - that it can be difficult to obtain a "true value" for your home. So - the first thing to ask yourself is - why do I want to know the value of my home? If it's because you are thinking of selling - CALL A REALTOR! That is your best bet for getting a current - real market value for your home. After all, Realtors only make money if they SELL your home, whereas appraisers make money just to visit - and investors make money by paying as little as possible!

If you would like more information about buying or selling a home in your area, please don't hesitate to contact me! I am always available to answer your questions - and ready to serve your real estate needs. Your complete satisfaction is my goal - because I want to be your Realtor for life!

Lori Day

Infinity Realty

(816) 200-4372 Cellular

(816) 554-6351 Fax

(816) 554-6368 Office

mail to: Lori@LoriDaySells.com

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Buyer Series – You Can Still Buy With No Money Down In Missouri

Lori Day (Infinity Realty) — Tue, 03 Feb 2009 14:02:44 -0800

With all the changes in the mortgage industry in the past year, buyers have found it increasingly difficult to find the assistance they need to purchase a new home. In previous years, there have been several ways for buyers to buy with no money down - 100% loans being the #1 choice. But even with the elimination of most 100% loan programs and seller-paid down payment assistance programs, buyers can still get the help they need to overcome what is typically the biggest barrier in their paths.

100% LOANS ARE NOT JUST A THING OF THE PAST

While it's true that most conventional loans no longer allow a buyer to borrow 100% of the home's value - there are still options available! One option many people don't know about is the VA Loan. While you have to be active or former military to qualify - a large number of Americans can access this type of loan. It is the only true 100% value single-loan program out there - and interest rates are competitive. The only downside is the VA funding fee, which increases each time a veteran uses their VA certificate. However, this fee is minimal, and for most VA buyers, the benefits of getting into a home with no money down greatly outweigh the funding fee that is charged.

GIVE THE GIFT OF HOME OWNERSHIP

While it is no longer allowed for the seller of a home to participate in a down payment assistance program for buyers - closing costs can still be worked into the contract! Most loans still allow the seller to pay 3-5% of the purchase price in "concessions" - which can help reduce or eliminate the amount of money a buyer needs to pay for their loan fees and "pre-paids" (loan interest, insurance, taxes, etc.) at closing. In addition, most loans also allow monetary gifts from family members to help buyers with their down payment needs. With the combination of these two strategies, many buyers can come to the closing table with no money at all "out of pocket."

DOWN PAYMENT ASSISTANCE PROGRAMS ARE STILL AVAILABLE

The Missouri Housing Development Commission (MHDC) has just announced a new program which will allow home buyers to access their federal first-time home buyer tax credit at closing - rather than waiting until tax time. The tax-credit advance works in the form of a fixed-rate 30 year "second mortgage." Buyers can access up to 6% of the purchase price of the home (with a maximum of $6,750), and the money is used to cover down payment and closing costs. The home buyers then file for their federal tax credit, and use the refund to repay the MHDC tax credit advance. If the loan is repaid before the deadline (June 2010), no interest is due, and only a negligible funding fee is charged. If the loan is not paid in full before the deadline, then principal and interest payments to repay the loan over 10 years automatically begin.

Although mortgage lending standards have been tightened, and many programs previously available to buyers have been eliminated - buyers can still find help! With several great financing options, and fantastic mortgage rates - now is a great time to buy! If you would like more information about buying or selling a home in your area, please don't hesitate to contact me! I am always available to answer your questions - and ready to serve your real estate needs. Your complete satisfaction is my goal - because I want to be your Realtor for life!

Lori Day

Infinity Realty

(816) 200-4372 Cellular

(816) 554-6351 Fax

(816) 554-6368 Office

mail to: Lori@LoriDaySells.com

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Seller Series - Three Steps to Selling Your Home in a Buyer’s Market

Lori Day (Infinity Realty) — Tue, 27 Jan 2009 09:21:27 -0800

You have probably heard over and over "It's a buyer's market out there." But, in hearing that, many are left wondering what does that really mean, and how will it affect me if I want to sell my home?

WHAT IS A BUYER'S MARKET?

Put simply, the term "a buyer's market" means that right now, that's who has the advantage in the real estate market. Because of these three factors: inventory is high, astoundingly low interest rates, and record-high availability of foreclosed homes; buyers are looking for nothing less than (and can certainly find) what they deem "a steal."

YOU CAN STILL SELL YOUR HOME!

However, this certainly does not mean you will be unable to sell your home! In fact, a buyer's market is a great time to sell your home - since there are so many buyers out there! But, just putting a sign in your yard and waiting for the buyers to stampede won't get the job done! Now - more than ever, you have to have a solid strategy to get your home sold.

STEP ONE: PRICING YOUR HOME RIGHT - THE FIRST TIME!

The homes that are selling right now fall into one of two categories: Perfect, move-in condition at a fantastic price; or Needs work, and is priced well below the neighborhood's "market value." Therefore, you need to make a decision before ever listing your home for sale: Spend some time and money to fit your home in the "Perfect" category, or show your house as-is, and price it in the "Steal" category (which means taking more money off the price than it would cost a buyer to "fix it up"). No matter which route you choose - use homes comparable to yours, in or near your neighborhood, that have sold in the last three months to help you establish the asking price for your home. These are not the days where a seller can risk pricing high to "see what they can get." Pricing your home effectively the first time will help you avoid extended periods of time on the market before a sale, and lost money at the closing table.

STEP TWO: YOUR HOME MUST SHOW WELL - EVERY TIME!

It is imperative that the buyers who see your home get a great first impression. This means don't show your house before it's ready! Listing your home with a disclaimer that "some work still in progress" is a terrible idea. A buyer cannot envision the work that "will be done", nor are they likely to come back later to see what you've done. There are too many homes on the market right now to risk letting your buyers leave your home with a less-than impression. Among the most important factors to ensure your home sells well are: great smells, no clutter, and clean, clean, clean!

STEP THREE: EXCELLENT MARKETING IS KEY!

No matter where your home fits on the "price scale," you MUST get the word out! It is imperative to use all available resources in marketing your home - in order to reach the highest possible number of "ready-to-act" buyers. This means that you (or your agent!) must utilize the latest, cutting edge technology to syndicate information about your home via the internet - to reach buyers both in & out of town, within real estate offices throughout the city (as 97% of buyers work with professional Realtors), and to your neighborhood and to your entire circle of friends and family (leaving no stone unturned!).

While it's true that there is a lot of "competition" out there - if you follow the above three rules - there is no reason your house can't sell! If you would like more information about buying or selling a home in your area, please don't hesitate to contact me! I am always available to answer your questions - and ready to serve your real estate needs. Your complete satisfaction is my goal - because I want to be your Realtor for life!

Lori Day

Infinity Realty

(816) 200-4372 Cellular

(816) 554-6351 Fax

(816) 554-6368 Office

mail to: Lori@LoriDaySells.com

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Buyer Series – With all the "gloom and doom" being reported in the world today, why should I buy now?

Lori Day (Infinity Realty) — Mon, 19 Jan 2009 13:05:16 -0800

For more than a year, the media has reported down real estate markets, rising foreclosure rates, decreases in home values, and crisis in the lending world. Because of this - many would-be buyers are left sitting on the fence - counting all the things that could "go wrong" if they make the move today, rather than tomorrow.

While much of what has been reported is based in fact, so much of it has been overblown, that it's caused a panic in the real estate world - with buyers & sellers - and even some Realtors.

GOODBYE HOUSING GLOOM AND DOOM

Well I, for one, am ready to stop hearing all this gloom and doom - and want to do what I can to set the record straight. The truth is that there are so many reasons to buy a home (especially vs. renting) in ANY market. The unique market in which we live today presents even more opportunities for brave buyers willing to take the plunge.

BUYING A HOME IS THE BEST LONG-TERM INVESTMENT... ANY TIME!

No matter what the economic forecast, buying a home is hands-down the best long-term investment there is. After all, you cannot live in a 401k, and you can't raise your children in a CD. People will always need a place to live - and paying off someone else's mortgage instead of your own just doesn't make sense!

In the long term (which is what every buyer should be looking at anyway!), as long as you buy in a good area, with good schools - your home WILL appreciate in value. According to the National Association of Realtors, a home's value nearly doubles every ten years. When you weigh the amount of money it takes to get into the home, and the amount of each monthly payment that goes toward the principal of your loan - the long-term payback cannot be beat!

In addition to the money you will "make" on your home - there are so many tax incentives for homeownership that are not available to a renter. In most cases, the interest you pay is tax-deductible, which helps greatly to offset any money you might owe at tax time. In some cases, it may even help net you a refund! With the recent Economic Recovery Act of 2008, there is an additional $7,500 tax credit available for first-time buyers who purchase a home before July 2009.

LOW INTEREST RATES WON'T LAST

Thanks to the difficulties our economy has faced in recent past - interest rates are at a decade low. Reports that there is "just no money to lend" are simply untrue. While standards have been raised, you do not have to have a "perfect" credit rating in order to get a home loan. In fact, if you have just a 620 credit score, you have an excellent chance to receive great rates on financing a home today. The better your score, the better your rate will be! While these low rates are likely to last a little while - no one knows just how long. One thing is for sure though - these rates will not be here forever! The difference of just 1% on a home loan can save buyers thousands of dollars per year.

Great rates, in combination with the many great deals on homes out there, make it possible for buyers to afford so much more house, for so much less money. It is actually thanks to the housing slump (and the large number of sellers ready to sell today), and high number of foreclosures (owned by banks who just want to make back their investment) that it's a great time to buy.

So, despite all the "bad news" out there today - now is actually an excellent time to buy! If you would like more information about buying or selling a home in your area, please don't hesitate to contact me! I am always available to answer your questions - and ready to serve your real estate needs. Your complete satisfaction is my goal - because I want to be your Realtor for life!

Lori Day

Infinity Realty

(816) 200-4372 Cellular

(816) 554-6351 Fax

(816) 554-6368 Office

mail to: Lori@LoriDaySells.com

Curious about prices in your neighborhood? Want to know what your home might sell for?

"Become a Fan" on Facebook!

My Mission Statement: