Renee's Blog

Barnes & Noble Nook Horrible?

Renee Porsia (RE/MAX ACTION REALTY) — Thu, 10 Dec 2009 08:36:55 -0600

Barnes & Noble Nook Horrible?

Here on Renee Porsia's Blog, I like to write about other things other than real estate at times because face it, there are other things going on in the world other than real estate.

That being said, today I wanted to write about technology. I absolutely love technology and thus when a new gadget comes out, I just have to get it. So, it shouldn't surprise anyone who knows me that when Barnes & Noble announced their new addition, Nook which is an e-reader, I wanted it.

Demand was much higher than I guess Barnes & Noble had expected and the release date which was originally scheduled for the end of November was pushed off to January 2010. Naturally, I was hugely disappointed and wanted to kick myself for not pre-ordering in early November.

When reviews started coming out, which were not very favorable for the highly anticipated Nook, I started to wonder if what was being written was in fact true. I decided to go check out my latest desire for myself at Barnes & Noble.

When I first saw the Nook in person, I immediately thought how pleasing to the eye it was. I picked it up and it was pretty light and not hard to hold. The reviews had said that it was hard to maneuver and the network 3G was very slow. I do not agree with either of those reviews as I found it very easy to use and the network was extremely quick. Naturally, with anything new, it will take a bit to get used too.

I found it very easy to get around and find books, magazines and newspapers and you can order a new book very quickly.

I am extremely satisfied with the way the Nook performed and happy that I decided to not simply listen to the negative reviews and research myself.

So although I will not get any Nookie for Christmas this year, I can relax and find comfort in knowing that I will have it in January.

Don't just take my word for it, go in to any Barnes & Noble and check out a Nook for yourself and let me know what you think.

Should You Race Out To Take Advantage Of The First-Time Home Buyer Credit?

Renee Porsia (RE/MAX ACTION REALTY) — Tue, 29 Sep 2009 08:23:30 -0500

Barbara Corcoran was on NBC's TODAY show this morning talking about the $8000 first-time home buyer tax credit.According to Mrs. Corcoran First-time buyers accounted for 1/3 of all home sales this past July and more than 1.4 million Americans have qualified for the tax credit this year. She also stated that she wanted home buyers to know that "it's a tax credit, not a deduction."When asked is there enough time for home buyers to run out there and find a home? Mrs. Corcoran answered "if you believe in miracles and you can find a really good foreclosure where the bank has sweaty palms yes its not too late but for the most part its impractical. Most homes take 60-90 days to close and the banks don't lend the money so readily so the whole process has slowed down. So if you found a house this weekend, chances are very good that you wouldn't get the tax credit."

Mrs. Corcoran went on to say " there are 12 bills on the floor to extend the deadline. I think it will happen because every congress guy out there or gal wants to tie their name onto this very popular bill. So, I fully expect that this is going to be extended."

Having the tax credit extended would be great news in my opinion because it would continue to stimulate the housing market as well as the economy and improve consumer confidence.

Also, on the table is increasing the tax credit from $8000 to $15,000 and extending it to all home buyers. When asked if she thought that this would happen, Mrs. Corcoran stated that "there is a lot of talk about this, that or the other thing but anything that will stir up the housing market is a good thing and probably will pass."

If you are a home buyer this is great news. Continue your search for a home because home prices are back to where they should be which means they are not ridiculously over priced as they were last year, rates are still at an all-time low, there is still plenty of inventory and if this tax credit is extended that just sweetens the deal all the more. Home buyers should rejoice!

If you have any questions about buying a home or have any comments, please feel free to contact me at reneeporsia@mac.com or feel free to visit my web site at www.reneeporsia.com.

Time Really Running Out For The $8000 First-Time Home Buyer Credit

Renee Porsia (RE/MAX ACTION REALTY) — Thu, 17 Sep 2009 17:01:12 -0500

If you are a first-time home buyer and want to take advantage of the $8000 tax credit, this may be your last chance.The deadline to take advantage of this credit is before December 1, 2009.What does this mean to first-time home buyers?

Well, it takes about 30-60 days to close on a home barring any issues that may arise. It’s now September 17, 2009. A buyer must find their home now in order to close on either October 17, 2009 or November 30, 2009. That's just a little over 60 days people.

If you are someone who doesn’t like to be rushed, perhaps this time crunch is not for you but if you are someone who wants to buy their first home and feels that this credit is well worth this final push, then get out there with your buyer agent today and find your home.

This also means that you need to have your financial situation already taken care of. You will only delay your process more if you go out to view homes without first being approved for your mortgage.

A few other quick facts worth mentioning are that a first-time home buyer is a buyer who has not owned a "principal" residence during the last three years prior to this purchase. This also means that if you are married and one of you has never owned a home but the other has, neither of you are qualified for this tax credit.

The amount of the credit is equal to 10% of the purchase price with a maximum credit of $8000.

How can you claim your tax credit? You can claim your tax credit by completing form 5405 to determine first, how much of the credit you will receive and then claim that amount on line 67 of the 1040 tax form for 2009 tax returns.

I would advise speaking with a qualified, licensed accountant to answer all of your questions.

I hope my article answers some of your questions. Now, get out there and find your dream home. Feel free to write to me if you have further questions.

Dual Agency, Not In Anyone's Best Interest

Renee Porsia (RE/MAX ACTION REALTY) — Thu, 27 Aug 2009 12:44:16 -0500

It seems as though every time I post my professional opinion either in my own personal blog or in a public forum about how I feel about dual agency, a bunch of Realtors jump all over me because they just can't understand how a Realtor can have such an opinion.

The problem is that most Realtors do not actually understand what dual agency really is or the consequences thereof.

Dual agency is very complicated so it is easy to see how most Realtors wouldn't understand it however due to their lack of understanding, it hurts consumers.

I wanted to explain what dual agency is and why I do not practice it.

Dual agency occurs when a Realtor represents both parties. Further, since Realtors do not own their listings and the Broker does, the entire office then becomes a dual agent. So, are you confused yet? Obviously, you are not alone because most Realtors don't even understand.

I will try to break it down for you. Each real estate office must have a Broker of Record who is responsible for all of the agents. So, when one of the Broker's agent's takes a new listing, even though the agent met with the sellers and was hired by the sellers, it's actually the Broker of Record who owns that listing. Are you still with me?

Upon taking that listing, the entire office in effect becomes a dual agent. A dual agent in name only. Think of it as an umbrella. Some Realtors will argue that what one Realtor knows in the office every Realtor knows in the office. Meaning that the agent who took the listing came back and shared all of the seller's personal and confidential information with every single agent in the office. Not only is that not true but if it were true, that would be unethical on the listing agent's part because they have a fiduciary duty to their seller to keep the seller's information confidential. And in an office where there are 200 plus agents that would just be silly to think. How am I doing?

So, yes in theory and in name only, every single agent in that office is deemed a "dual agent" because the Broker of Record owns every single listing in the office. So, if a buyer wants to purchase a listing that belongs to their buyer agent's office, the agent's must disclose that dual agency exists within the entire office but neither agent is personally acting as a dual agent.

Are you dizzy yet?

Real dual agency occurs when a Realtor is hired by a seller to sell their home and then secures a buyer who wants to buy that seller's home and wants the Realtor who took the listing to also represent the buyer at the same time. At that point, the Realtor is working both sides of the table and now can no longer negotiate for either side but instead acts as a mediator. Dual agency.

In my professional opinion, dual agency is not in anyone's best interest, not even the Realtor. The seller doesn't have fair representation anymore even though when the listing agent was hired, promised to get the seller the highest price the market would allow and vowed to protect their best interest but as soon as a buyer comes along, the agent just throws all of that out the window and wants to represent a buyer who never wants to pay the highest price for the home.

Years ago, buyers didn't have the right to representation, only the seller was represented. The playing field was not level. Now, the field is level. Both sides can have equal representation.

I do not see any good in dual agency. I feel that nobody wins when both sides are represented by the same Realtor as someone usually gets hurt. I will certainly not promote it and will stand up against it when the need arises.

Consumers are always concerned about their rights and I write this blog to make consumers aware that they do have rights. They have the right to be represented by their own Realtor. They have the right to have someone look out for their best interests. But most importantly, they have the right, finally, so why not use that right?

Realtors are supposed to put their client's best interest first all of the time. By participating in dual agency, I feel that neither client's interests are put first. The agent basically sits on the fence and is neutral. How does that help anyone when the Realtor basically sits on the fence and says to the seller, "the buyer wants to offer you this, do you want it?" And then goes back to the buyer and says "the seller says no, are you good with that?" The Realtor is just acting as a paper pusher. The best quality a Realtor is supposed to have is their negotiating skills. Take negotiating out of the equation and then what good is the Realtor? I suppose dual agency is the way to go for those Realtors who are just not comfortable with the negotiating process.

Keep in mind that when a Realtor enters into a dual agency relationship, the Realtor keeps the entire commission which leads many to believe that is the sole incentive for a Realtor wanting to partake in dual agency because it can cloud the Realtor's judgment.

In closing, I say to all buyers and sellers, if you want the best deal, hire your own Realtor and stay away from dual agency.

$8000 First-Time Home Buyer Credit, The Clock Is Ticking

Renee Porsia (RE/MAX ACTION REALTY) — Mon, 20 Jul 2009 08:31:48 -0500

$8000 First-Time Home Buyer Credit, The Clock Is Ticking.

If you are a first-time home buyer hoping to take advantage of the $8000 tax credit, I hope you have done your homework and are out there looking for your home because time is quickly running out.

If you haven’t been preapproved for a mortgage, you should find yourself a reputable lender and get yourself preapproved. It takes time and there may be some issues you need to address before you can get your approval.

Find yourself a buyer agent and get out there looking. If you are not aware, it takes 30 or more days to close on your new home so if you are looking at the calander that only leaves a little more than 4 months. That really isn’t a lot of time. Make sure you have a plan and know what you want and don’t want. There are many issues that could come up during the home buying process and the more time the better to take care of them. This is a great opportunity for first timers. The credit combined with the low rates, reasonable home prices and the amount of inventory equals happy home buyers.

Before You Sign That Listing Contract, Read This

Renee Porsia (RE/MAX ACTION REALTY) — Thu, 11 Jun 2009 07:55:33 -0500

I am writing this blog with the hopes of saving many home owners a lot of aggravation, stress, time and attorney fees.

Before you sign the listing contract with that Realtor you have been so gracious to allow in your home, there are some very important things you should be aware of.

1. Make sure the listing contract is a PAR form (Pennsylvania Association of Realtors) If you do not see that anywhere on the contract. Do not sign it. That means that that listing agent's Broker's office created their own contract which could contain clauses that may take away your rights.

2. Make sure that the contract says what you agree upon. If the Realtor told you the contract is only for 6 months make sure it states a start date and and end date equalling 6 months and nothing more.

3. If the you agree to a 1 year listing contract, make sure the contract does not exceed 1 year. It must expire exactly 1 year from the start date otherwise it is not valid. Do not let the Realtor intimidate you into believing that they can list your home for anything beyond 1 year. One important fact worth mentioning is that there is no need for a 1 year listing. If your Realtor prices your home properly and realistically, your home should sell. If not, it's time for a new Realtor. Keep in mind that you also must be realistic with your listing price.

4. Make sure the amount of the commission is what you agreed to pay. You as the home owner have the right to decide just how much of that commission your Broker receives. If you only want your Realtor to receive 2% and a buyer agent to receive 4% then make sure it's in the contract that way. Spell it out. Any reasonable request that you want your Realtor to do or be responsible for must be in writing in the listing contract otherwise it was never requested.

5. Make sure there is no variable commission rate written into the listing contract. For example seller agrees to pay between 2%-8%. That is ambiguous at best. Make sure it is a fixed commission fee written into the contract. For example a total of 3%.

6. Make sure the listing price matches what the Realtor is agreeing to list your home for.

7. Make sure there is an exit strategy. What happens if your Realtor is not doing what you hired them to do? How do you fire them? What will be the consequences to you if any?

Understand that the Realtor you hire does not own your listing. The Broker of Record of that office owns your listing so if you do have an issue with your Realtor, find out who the decision maker is, your Realtor or their Broker. The last thing you need if a problem should arise is to get the run-around. Trust me, this happens all to often.

I felt the need to put this out there due to the many phone calls I keep getting from home owners who hired a Realtor to list their home and then felt that their Realtor was not doing what they were hired to do or that the paperwork wasn't what they thought they agreed to. Remember, you do have the right to take a day or two to review the paperwork. You do not have to sign the paperwork that same day. If you like the Realtor and you feel like you want to hire them, just tell the Realtor your intentions to hire them but that you need time to re-read all of the paperwork again and perhaps write down more questions for them. A professional Realtor who has nothing to hide, will have no problem with this reasonable request.

Not every Realtor is out to get you. There are many, many great, honest, ethical, loyal Realtors out there but as with any profession, there are many bad apples in the bunch. You should just be aware of what to look for. Remember, the more you know, the better off you will be.

It is your legal right to have an attorney review the listing contract before you sign and the Realtor should have no problem with that. When in doubt contact an attorney.

I hope you find my blog to be helpful. If you should have any questions, feel free to contact me.

Closing Costs 101

Renee Porsia (RE/MAX ACTION REALTY) — Wed, 03 Jun 2009 16:03:18 -0500

What are closing costs is a question I get almost every day. Many home buyers are not aware that in addition to their down payment, they will also need money for closing costs and are very shocked when they find out just how much they will need in order to settle on their home.

Closing costs are fees paid at the time of settlement (when you sign the papers for your new home). These fees could include, points, origination fees, title search, insurance, taxes, appraisale fees, insurance, recording fee, notary, credit report, endorsements and conveyancing to name a few.

These fees are common but can add up to thousands of dollars.

Closing costs are foreign to most people so I figured i would list what you can expect to pay at closing. Keep in mind that not everything may be on your settlement sheet that I list or perhaps you may have more items depending on where you live.

I will break the fees up to make it a bit more simple:

Items Payable In Connection With The Loan such as:

any loan origination fees
loan discount points
appraisal fees
credit report
any inspection fees not already paid
mortgage application fee
flood certifciation fee
tax service fee
underwriting fees

Items Required By Lender To Be Paid In Advance:

any interest per day from the day of closing to the end of the month
mortgage insurance
hazzard insurance premium

Reserves Deposited With Lender (lso known as escrows:)

hazard insurance for 3 months
mortgage insurance for 2 months
county property taxes for 7 months
school taxes
city taxes

Title Charges:

settlement or closing fee
abstract or title search
title examination
title insurance binder
document preparation fee
notary fee
attorney fees (if you used an attorney)
title insurance
lender's policy
owner's policy
closing service letter fee
record mortgage

Government Recording And Transfer Charges:

recording fees deed/mortgage
city/county/tax/stamps
state tax/stamps
transfer tax

Additional Settlement Charges:

survey
pest inspection
fed ex mortgage pkg/payoffs
reimburse seller for taxes paid through the end of the year
gas balance due
water service balance due
reimburse cert fees/use and occupancy
real estate office conveyancing fee
commission

This list is not only for buyers or only for sellers. I have included what a buyer and a seller can expect to pay.

You should have an idea of all of these costs prior to settlement because you should have met with your lender and received a Good Faith Estimate.

I do hope this helps you understand a bit better about what closing costs are.

Using the $8000 First-Time Homebuyer Tax Credit As a Down Payment

Renee Porsia (RE/MAX ACTION REALTY) — Thu, 14 May 2009 07:20:07 -0500

VOCATIONS

By Renee Porsia | May 13, 2009

Great news for first-time home buyers. This week, Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development stated that the Federal Housing Administration (FHA) is now going to permit it's lenders to allow home buyers to use the $8000 tax credit as a down payment. Previously, buyers had to wait to file their taxes to take advantage of the tax credit, which hindered some home buyers from buying.

By allowing buyers to utilize the tax credit as a down payment, money will now be freed up for the buyer that would otherwise be needed at closing. This will allow the first-time home buyer to save their money for a rainy day or for home improvements.

I believe this new program will further stimulate the already improving real estate market, attracting even more first-time home buyers.

There couldn't be any more incentives for first-time home buyers, considering that interest rates are at an all time low, home prices are not over inflated and there are plenty of homes to choose from. Sellers would have to give the home away for free for there to be a better deal. This is the absolute best time to be a first-time home buyer.

Consumer confidence needs a boost and I feel that this is just the news that will do it or at least light a fire. Now, if only the news media such as the TODAY Show would report on this great news instead of always reporting on the negatives about the real estate market, consumer confidence would increase.

If you are a first-time home buyer, get out there and find your home before this tax credit is gone in November.

Rene Porsia is a Realtor. Learn more on her blog.

Buyer Etiquette

Renee Porsia (RE/MAX ACTION REALTY) — Mon, 11 May 2009 15:50:35 -0500

Buyer Etiquette

VOCATIONS

By Renee Porsia

Is there such a thing as buyer etiquette? I say, yes, there is.

I'd like to set the record straight for buyers when I say that there is a good way to behave when setting out to find your new home.

Most buyers think they can just pick up the phone and call a local Realtor without giving one thought to the actual home buying process. The problem also lies with Realtors who run out to meet an unprepared buyer.

Both buyer and Realtor have different motives for behaving the way they do. The buyer just wants to get in to see a home, feeling that if they like it, they can then inquire about the process. And the Realtor, looking for business, will oblige and have the buyer go through the process after the like the home.

So, what then is the problem? Well, the problem is that that type of behavior only winds up hurting either the buyer, the Realtor or in many instances both.

What is a buyer to do then? Keep your buyer etiquette in check. The way you can do this is by putting a simple plan together.

If you see a home that catches your eye, relax, take a deep breath and take down the address and phone number on the sign. Go home and look up the home on Realtor.com to see if you can afford the property. STOP there though. If you are seriously looking, contact a lender to see how much you qualify for.

It doesn't cost anything to get approved. Most buyers do not realize that. You can call your bank or ask a friend or family member if they know a good mortgage consultant. This is an easy process and this does not mean that you have to buy a home.

Getting approved will tell you just how much house you can or can't afford and how much you will need for both closing costs and a down payment. Most buyers get sticker shock when they see just how much they will need for closing costs.

Once you know exactly how much you can afford, then you are in the position to schedule an appointment to view the home or any home that is within your price range.

Now that you have taken the first step, the next part of good buyer etiquette is knowing when enough is enough. How many homes is enough to see? Seeing 25 homes is not very good buyer etiquette and also just shows your Realtor that you really do not know what you are looking for in your new home. It will also only wind up confusing you and chances are, the home will not be there by the time you decide that you liked home number one. Viewing approximately 8-10 homes on average is plenty of homes to view.

Another form of good buyer etiquette is being able to make up your mind. Seeing a home two times and then requesting your Realtor bring you in to see it a third time so you can get mom and dad in to get their opinion is a definite no, no. Remember, you are buying the home, not mom and dad. Anyone who will be helping you with the decision should be prepared to come view every home with you at the first showing.

Lying, misrepresenting or withholding the truth about your entire financial situation is not only bad buyer etiquette but can get you in trouble and put you in default and you will lose your deposit or worse. You will be sued by the seller and possibly criminal charges could be filed against you. Always be truthful.

Going out to view new construction homes without telling your Realtor is extremely bad buyer etiquette. So is viewing open houses without your Realtor and talking to "for sale by owner" properties without your Realtor. Once you hire a Realtor, it is your Realtor's job to find you a home and to negotiate your sale, so let your Realtor do their job. After all, that is what they are being paid for.

Being late to view homes is not only bad buyer etiquette but is also disrespectful to the home owner as well as your Realtor. If you need to be late, please give enough notice as you would want the same courtesy extended to you.

Etiquette is not the same as manners, mind you. Manners involve general behavior guidelines such as treating elders with respect whereas etiquette is a specific code of behavior. It is important not to confuse the two. Knowing the proper code of behavior as a buyer will make your home buying experience much more pleasant and will show your Realtor that you value their time, advice and representation.

Do you have good buyer etiquette?

Should Realtors Be Paid Like Attorneys?

Renee Porsia (RE/MAX ACTION REALTY) — Mon, 04 May 2009 15:32:20 -0500

Real estate is the only profession where people clearly do not value a Realtor's time. Just because many Realtors do not charge an hourly fee for their time and choose to be paid out of the proceeds at settlement, consumers feel they can just waste a Realtor's time.

This is the fault of Realtors because many Realtors need business, any business, so they will run out at all hours of the day or evening to meet with consumers at the drop of a dime, putting no value on their time.

If a Realtor doesn't put a value on their time or services, don't be too surprised when you get what you pay for.

Lawyers put a value on every single thing they do such as talk on the phone, write or respond to emails, write letters, attend a meeting with you, file faxes, copies etc. Consumers just know that if they need to hire an attorney, it will be costly and so they know not to waste an attorney's time. If Realtors put a value on their time, consumers wouldn't be so quick to just want to go out and view homes before they were actually ready to buy a home or list their home.

A Realtor's job is to provide representation for a buyer and seller. From the initial consultation at either a listing presentation, which by the way, can take up to three hours to the initial meeting with a buyer, the clock starts ticking. Every showing, every email, every text, every phone conversation, meetings to put together an Agreement of Sale, follow-ups for changes, faxes, printouts of properties everything should have a fee attached to it. As a general rule though, Realtors do not charge but instead choose to get paid when and if the buyer or seller goes to settlement and even on the day of settlement, sometimes the Realtor doesn't get paid. But a seller will choose to have five different Realtors out to their home to see which Realtor will charge the least to them, knowing that they won't be charged for their time.

I worked extremely hard to obtain my real estate license and then my broker's license. I go to continuing education classes, keep up with all the current laws, rules, trends and take ethics classes. People feel that anyone can go get their real estate license and therefore anyone can become a Realtor. And due to that way of thinking, consumers just do not value a Realtor's time.

If Realtor' actually charged for their time, consumers would then do their homework ahead of time and make their choices wisely of who to have out to their home. They wouldn't play the Realtor roulette game. Buyers wouldn't call every single Realtor in the area to take them to see every home they see listed for sale. Instead they would want to find the best buyer agent their money could pay for. After all, buying a home is probably the most valuable asset you will purchase.

There are hundreds of bad to mediocre Realtors out there who are willing to work like a dog for free and could care less about a buyer or seller's best interests. A Realtor who is an expert at their craft will put a value on their time and will provide professional services and if the buyer or seller wants great representation, they will be willing to pay for the service the same way would pay for an attorney.

If an attorney doesn't win a case, they still get paid so if a buyer or seller doesn't go to settlement for whatever reason, why shouldn't a Realtor be paid? They still did all of the work.

I'd like to pose these questions to you. Do you value your Realtor's time? More importantly, does your Realtor value their time? The next time you meet with your Realtor, keep track of the time you spend with him or her. How many times do you speak with your Realtor per week, per day, per hour?

If you had to pay an hourly fee to hire a Realtor, would you treat Realtor's differently or change the way you do business with them or even the way you go about finding one? I invite you all to comment.

Renee Porsia is a Realtor in Philadelphia. Visit her website to learn more or follow her on Twitter @ http://www.twitter.com/reneeporsia.

Why Do Celebrities Use Twitter?

Renee Porsia (RE/MAX ACTION REALTY) — Tue, 21 Apr 2009 15:06:00 -0500

You have to be living under a rock if you haven't heard of Twitter lately. Everyone is tweeting these days, even celebrities.

But why would a celebrity want to use Twitter? Don't we give them enough attention already? Aren't they always whining every day that they have no privacy? Why then would they go on Twitter and tell whoever wants to listen what they are doing or where they are eating dinner? Obviously for the attention. You want attention or you don't want attention? I can't tell.

I myself am following many celebrities on Twitter. It seems as though all they do is tweet amongst each other, which makes me ask the question, why can't they just call each other?

You may have heard recently that Ashton Kutcher was in a race with CNN to get to one million followers. Of course, once the word got out, Ashton was able to pass his goal. And strangely enough, when people tried to unfollow Kutcher, they received a message that said there was an error. I myself was following Kutcher and read his tweets. His tweets weren't words of wisdom but I wanted to know what all the hype was all about. I attempted to ask Kutcher a few questions as well as what his name on Twitter meant (aplusk) and never received anything back. Of course having over one million followers, perhaps my questions got lost in the mix. Does having so many followers defeats the purpose of Twitter in the first place, which is to network? If you have so many followers that you can't keep up with them, what is the use?

Celebrities are now taking over Twitter, from Miley Cyrus to Nicole Richie. Some are saying how Twitter is quickly becoming a celebrity playground. I guess fan pages aren't enough for celebrities anymore. Now they want to take over the social networking world. The more followers on Twitter or the more friend requests on Facebook, the more popular the celebrity, even if they don't talk to anyone other than their elite group of peers.

The best thing about these social networking sites is that we can choose to unfriend or unfollow these celebrities. After all, I am looking to network with people, not to be a groupie. I give everyone a chance though. If I attempt to talk with a certain celeb a few times and they do not respond, I then unfollow them and I think that is what everyone should do. If they do not want to network with "regular" folk then nobody should follow them.

Renee Porsia is a Realtor in Philadelphia. Visit her website to learn more or follow her on Twitter @ http://www.twitter.com/reneeporsia.

Tweeting my Business One Tweet at a Time

Renee Porsia (RE/MAX ACTION REALTY) — Thu, 09 Apr 2009 09:11:33 -0500

Lately, I've been tweeting like a banshee. When I tell people that I've been busy working and tweeting their response is what is tweeting?

Tweeting in my opinion is just a bunch of status updates that people post all day long. It's actually no different than Facebook in the sense that Facebook asks what's on your mind and Twitter asks what are you doing?

What is different about Twitter than Facebook is that instead of friend requests, you can choose to follow people's tweets. Some people's tweets are protected and you have to ask permission of the person to view their tweets. I actually like it better than Facebook's friend requests because the term "friend" on Facebook is used to loosely and you have those who simply want to have a million people want to be their "friend" but then talk to no one and in my opinion, that is just someone who craves attention or wants "celebrity" status and if that is the case the person needs a fan page instead of a page where the main theme is, can I be your friend?

I've met a lot of people on Twitter and have grown my social network immensely. Yes there are celebrities on Twitter and they tweet all day long and some even tweet back at you.

It's a great place to promote just about anything. I use it to promote myself and my real estate business. But, you can't tweet all business and no play so I tweet about my day, bad or good. If I have an opinion about something, I don't mind expressing myself.

I have to say that since I have started tweeting, my business has grown by leaps and bounds. The traffic to my website has increased greatly. My blog has received a huge amount of attention and I have been getting requests for interviews about my blog.

Be aware though, if you start to tweet, it will become addicting and you will find that everything you do will become a tweet of some sort and can get on people's nerves. For me, whenever I am somewhere doing something, even getting my morning coffee, I tweet while in line.

People have used Twitter to express the bad customer service they receive. Don't laugh, companies take consumer tweets very serious and in fact big companies such ast At&T, Comcast and Starbucks just to mention a few, even tweet and if they see someone twuining their reputation, they will attempt to make restitution for that consumer who did the tweeting.

Tweeting is becoming all the craze and I think its great. Here a tweet, ,there a tweet, everywhere a tweet, tweet.

So, I ask the question, do you tweet? If not, jump on the twagon (sorry, I tried) and find out what all the buzz is all about.

Come follow me @ http://www.twitter.com/reneeporsia

A Change is Brewing

Renee Porsia (RE/MAX ACTION REALTY) — Wed, 25 Mar 2009 06:34:47 -0500

People keep asking me how the market is and for some time now, I could answer "slow." Now, I can honestly answer that a change is on the horizon.

I've noticed that houses are moving,more buyers are out there looking with their buyer agents and even more are contacting me to find out how to get qualified.

Months ago, when I would call to schedule a viewing of a home, every one of them was available and my buyers had weeks or months to compare and then go back to see many of the homes for a second or third time. That is not the case now. Over the past few weeks, I've noticed when I call to schedule homes to view, many are now pending a sale and when I do get in, by the time my buyer takes time to compare other homes and then wants to go back to see one of their favorites for a second time, the home is pending a sale. That is great news because it means that the real estate market is slowly bouncing back.

It also means that consumers who can purchase a home are out there living the American dream. It means that people who can purchase a home are and people who shouldn't be purchasing or simply are not in the position to purchase are not. It's back to basics. Consumers need to have great credit, a stable job and money saved for closing costs and a down payment. Gone are the days of 100% financing for those with absolutely no money and who probably shouldn't have been allowed to purchase a home in the first place.

First-time home buyers are out there in droves taking advantage of the First-Time Home Buyer $8000 Tax Credit as well as seller assist for their closing costs, back to normal home prices and plenty of inventory still available.

This is a bright spot in what has been a very gloomy new year.

The Realities of the $8000 First-Time Home Buyer Credit

Renee Porsia (RE/MAX ACTION REALTY) — Thu, 19 Mar 2009 21:06:41 -0500

By Renee Porsia | March 18, 2009

After my first article regarding the $8000 tax credit, I received even more e-mails and questions so I wanted to touch on the subject a bit more.

I wanted to clear up misinformation that has been aired on NBC's Weekend Today. Mrs. Barbara Corcoran was on Today last Sunday and stated to Jenna Wolfe that first-time home buyers can use the $8000 as part of their down payment. I then received quite a few e-mails asking me if this was true. No, it is not. It's not true because a new home owner can not get their credit until they file their taxes.

Now it would certainly be a nice thing if home buyers could get their hands on that money for their down payment. So to that I say, if you have a family member or friend who can gift you the $8000, you should do that and then pay them back after you receive your tax credit. This way you can take full advantage of the money at a time when you most need it.

There is a way, however, to access the money sooner rather than waiting to file your 2009 tax returns. This would involve adjusting your withholding amount on your W-4 forms via your employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. In this situation, the buyer would be able to accumulate extra cash by raising his or her take home pay. Keep in mind, though, that this is different than just receiving the $8000 out right. You would have to be very strict and save the extra money you take home.

You also should already be approved by a lender and working with your buyer agent to find your home by now if you want to take advantage of this tax credit. You only have to December of this year to find your home and be eligible. Time goes extremely fast. Remember in most cases it does take a minimum of 30 days to get to settlement, barring any issues. You don't want to put yourself up against a wall rushing to find a home in October, just so you can take advantage of the money.

Who qualifies for the tax credit? Anyone who has not owned a principal residence during the 3-year period prior to the purchase.

So, if you own vacation home or a rental home and it is not used as your primary residence, it does not disqualify you as a first-time home buyer. That may be good news for some people and news to those of you who simply weren't aware of that.

There are income limits for claiming the tax credit. Those limits are $75,000 for single tax payers. For married taxpayers filing jointly, the limit is $150,000.

You can claim your tax credit by filing form 5405.

Any type of home qualifies for the tax credit. This includes single family, townhouses, twin, row homes, condominiums, mobile homes and houseboats.

If you already filed your taxes but purchased your home in early 2009, the good news is that you can still claim your credit by filing an amended 2008 tax return with a 1040x form. Always consult with your tax adviser to make sure you file this form properly.

I really hope this answers your questions. Now get out there and find your first home.

If you have any comments or additional questions, feel free to e-mail me at reneeporsia@mac.com.

My thanks also go to the National Association of Home Builders for their contribution to my article.

Renee Porsia is a Realtor in Philadelphia. Visit her website to learn more.

First-Time Home Buyer Survival Guide

Renee Porsia (RE/MAX ACTION REALTY) — Fri, 27 Feb 2009 05:48:56 -0600

So many first-time home buyers have been contacting me, asking about mortgages and what to do and not to do when starting the home buying process. Here are some answers to those first-time home buyer questions.

The first thing that every first-time home buyer needs to do is hire a buyer agent. Your buyer agent is going to play an important role in the entire process. If you find a good buyer agent, they will bring you in and sit you down and explain the buying process to you and answer all of your questions. So, be prepared and have a list of questions ready. Running out to a property and meeting a Realtor for the first time is not the way to hire a buyer agent.

It is important to know that if you hire a buyer agent, you do not have to pay the buyer agent. Traditionally, your buyer agent will be paid out of the fee for service that the seller agreed to pay when they listed the home.

Get pre-approved. If you don't want to get pre-approved then you are not serious. You need to know how much you can afford before you look at homes. Don't worry, homes will be there. If you do not know of a reputable lender, your buyer agent will have names of some great mortgage consultants for you to talk with.

Don't get caught up in interest rates. You can't lock in on any rate until you have a signed Agreement of Sale so it doesn't matter if the mortgage consultant tells you that rates that day are 4%; they mean nothing to you until you find your home. It is extremely important that you understand this.

Make sure to get a Good Faith Estimate (GFE) from your mortgage consultant which lists all of the fees you can expect to pay at settlement.

Have money for a deposit, down payment and closing costs. If you do not have money saved, it's not time to be looking for a home. And do have a job!

Have patience and make sure to trust the Realtor you hire. Your buyer agent does this every day and will guide you.

Trust your instincts. Everyone will have opinions and advice but you have to listen to yourself. If you view one house and that home is the price you want and has everything you want, then do not be afraid to put an offer in on it. Remember, you are looking for a home and you only need one. Many people will tell you not to buy the first home you see. But what generally happens is that when you listen to other people and go against your feelings and view many other homes only to figure out that the first home was the home for you, that home usually is not available and then you missed out on exactly what you set out to find in the first place.

Don't low ball every home. Your Realtor will know how much homes are selling for. Yes, it is a buyer's market and you can get a great deal but if you expect to put in ridiculous offers on every home no matter what, you lose the home and you will be wasting your time as well as your buyer agent's time.

Know what you want before you go look at homes. Have a list of what you need first, then list what you would want but could live without.

Know the style of home you want. Do you know the difference between a cape, a townhouse or a row home ? If not, you need to find out so ask your buyer agent what the differences are. This way they are not showing you homes that you do not like.

If you are interested in a condo, there are important things you need to know about them before you go out and look at them. You may find out that a condo is not for you.

Bring a notebook with you when you view homes to take notes and document concerns. Ask: how far is the home from your job, do you have to pay tolls, use more gas and how much are taxes? The price may be right but in the long run, it may wind up costing you much more just to get to work.

Always bring the person or persons who will be helping you make the decision on the home. You may think that you know what the other person wants but trust me, it's best to view every home with whomever else will be buying the home with you. The last thing you want to do is fall in love with a home only to bring back your husband/girlfriend/partner and find out that they do not like it like you do.

Finally, remember buying a home is very time consuming and stressful. Failing to plan is planning to fail. Knowing what to expect before you run out there to view homes will make your home buying process so much more enjoyable. I do hope that I have answered some of your questions and that you have a better sense of what to expect.

The $8000 Home-Buyer Tax Credit

Renee Porsia (RE/MAX ACTION REALTY) — Mon, 23 Feb 2009 10:59:46 -0600

Recently, I have been getting a lot of phone calls and e-mails asking me questions about the $8000 home-buyer tax credit so I wanted to answer the most asked questions and make it as simple as possible.

So who gets the credit? First-time home buyers or someone who hasn't owned a home in three years.

How much is the credit? $8000 or 10% of the home's value, whichever is less.

What do you have to do to get it? Claim it on your 2008-2009 taxes.

It's totally refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of withholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount

Is there a deadline? The purchaser must purchase their new home between January 2009 to November 2009.

Do you have to pay the money back? If you reside in the home for three years, you do not have to pay it back.

Are there any restrictions? Yes. buyers must make less than $75,000 for singles or $150,000 for couples. Higher-income buyers may receive a partial credit.

Is it easy to apply for the credit? Yes. It's as easy as filing your taxes.

What if you already filed your taxes? If you have already completed your tax return, you can file amended returns for 2008 to claim the credit.

It's a great incentive if you are a first-time home buyer. With low interest rates, low home prices, plenty of inventory and now this tax credit, I find myself wishing that I was a first-time home buyer again.

If you are on the fence, it may be time to jump off.

Facebook Friends Or Acquaintances

Renee Porsia (RE/MAX ACTION REALTY) — Thu, 19 Feb 2009 16:14:01 -0600

It seems like just about everyone I know now has a Facebook page. It has really become quite the phenomenon.

People are reconnecting with high school friends, old girlfriends and boyfriends, family, distant relatives and even making new friends. It seems to have taken the place of a good old fashioned pen-pal.

So, when does someone go from stranger to friend? That is a question that I recently started thinking a lot about. I originally created my Facebook page to network with other professionals. I wasn't looking to find new friends but things don't always end up like you thought they would. Now I have met so many new people and have made quite a few new "friends." Or have I?

The way to connect with people on Facebook is to ask someone you either know or don't know if they will accept you as a "friend." That person has the option to view the requesting person's profile to see if they know the person or find out who they are, where they live, what they do for a living, view personal photos and read what they are doing throughout the day. The requesting person cannot view those same details about the person they are requesting friendship from because that person's profile is set to private. They then have the option to accept the friend request or to ignore the friend request.

Do you really want to be friends with the person who is asking you to be friends with them?

Once someone has accepted the new friend, both people can now do such things as write on each others walls, comment on their status updates, view photos and comment on them, chat with them live, message them, send them cute, little (sometimes annoying) Facebook gifts such as a virtual drink, flowers, hugs, cakes and cookies.

People I have never met before have requested to be my friend and I have requested to become friends with some people that I didn't know. So, why would someone want to be friends with someone they have never met before? For me, it was about someone sharing the same interests with me, mostly. I do not accept everyone who requests to be my friend. Really -- I do look at everyone's profile before I accept them as a friend and for those who choose to accept me as a friend, I send a nice thank-you for the friend acceptance message.

I now even consider a few of the new people I have met to be actual friends. But can it be a one-sided friendship? Can both people have two different opinions of what friendship actually is? Friendship is defined as "a person you know well and regard with affection and trust." It makes sense to say "he was my best friend at the university." An acquaintance is defined as "a person with whom you are acquainted." I have trouble remembering the names of all my acquaintances.

I may be old-fashioned but I consider someone to be my "friend" once it goes beyond an occasional "Hi, how are you?" and moves on to talking almost every day and revealing personal details about yourself. Once you've exchanged phone numbers, what else could it be? You wouldn't give a perfect stranger (I hope) your personal phone number. Would you?

I actually have come to really like socializing on Facebook. It's great for networking and has allowed me to meet some really great people that I would have otherwise not had the opportunity to meet.

So what is my point here? My point is that unless you plan on actually talking to the person you accept as your "friend," you shouldn't accept them into your Facebook world. Talk about Facebook etiquette. How can it be considered good Facebook etiquette to accept someone as a "friend" only to just ignore that person and never speak with them? Or on the rare occasion that you do, you are very short with them or are cautious of their motives? Perhaps Facebook should be called "Friendbook" or "Aquaintancebook" and its members should only speak to their actual "friends." We should go back to good old-fashioned "fan pages" for those who want to be worshiped without all of the responsiblity of an actual friendship.

My intent was clear when I created my page. I wanted to network and that is what I have done and along the way, I have also made new friends.

What is your intent? Are you clear on your Facebook page? What do you have listed on your info page? Are you looking for a friendship, a relationship? To date, mingle or network? Be clear and don't mislead.

Pompous Realtors

Renee Porsia (RE/MAX ACTION REALTY) — Mon, 16 Feb 2009 06:14:46 -0600

I thought everyone could use a good laugh so I thought I would poke fun of all the Realtors who love to say things like "I'm in the"top 1%", or "top producer", or "million dollar producer."

Top 1%? The top 1% of what, the UUWSO....the unprofessional, unethical, whiney, show off group of Realtors? The top 1% of Realtors with brown eyes who have the most clients named Kathy, the top 1% of Realtors who over price their listings, or how about the top 1% of Realtors who sold big white homes with red roofs on Friday afternoons? There is a catagory for everyone.

I'd like to give honorable mention to all of the Realtors who are actually top producing Realtors but fail to mention that they have 30 other agents working under them.

The million dollar producer. This is not hard to accomplish people. Any Realtor who sells a million dollars worth of real estate can use this great title.

Then there are the Realtors who like to tell you what clubs they are in such as the presidents club, platum club, the 100% club, the I make more than you club, the I sell more properties than anyone in my office club. Where are these clubs? Do they meet every wednesday night and is there a secret knock? I bet there is a Grand Poobah of the Loyal Order of Water Buffaloes too?

How about the Realtors who list all of the designations they have such as the I know how to work with older people designation or the I know how to use a computer designation or how about one of my favortes the I just bought a home for $10k this morning and I am going to sell it to my poor unsuspecting buyer this afternoon for $100k who is already paying me a commission and a finder's fee designation (you know who you are) or the I know how to work with a buyer designation and the my broker also knows how to work with buyers designation and finally the I know how to sell a home designation. Isn't that our job?

Thank you.

What You Should Know About Mortgage Rates

Renee Porsia (RE/MAX ACTION REALTY) — Tue, 10 Feb 2009 16:17:18 -0600

Mortgage companies really tick me off. Constantly misleading the public by putting deceiving information out there to attract business.

Telling consumers that they can get an interest rate of a certain percentage should not be allowed because the simple truth of the matter is that a bank cannot quote anyone any type of interest rate until a buyer finds a home and has an accepted Agreement Of Sale and even then, the buyer needs to lock in a rate. If the buyer does not lock the rate in, their rate will then be floating free to either go up or come down until it's locked.

By putting this misleading information out there, mortgage companies then make my job that much harder because I then have the wonderful pleasure of being the bearer of bad news having to tell an excited home buyer that the rate that they were quoted basically means nothing. If the rate was 5% the day that you spoke with the lender and by the time you get an excepted Agreement Of Sale, the rate is now be 6% now you may have to buy down your rate. It will also depend on your middle credit score. If you have a low score, expect to have a higher rate.

There is no rate to quote so stop quoting rates to consumers. Instead what the banks should be doing is educating consumers. Explaining to them how interest rates work, and how their interest rate will be determined as well as when it will be determined. Advise them of what they need to do to straighten up their credit if need be in order to be able to get the lowest rate available when they finally get an accepted offer, explain what it means to buy down thier rate and why it make sense to do so. Educate, educate, educate. Disclose, disclose, disclose. Stop misleading the public.

If you are a home buyer and you have spoken with a lender but do not have an accepted Agreement Of Sale at the time you meet with this lender no matter what the lender says, you cannot take advantage of any interest rate at that time.

What you can do is ask the lender to give you a Good Faith Estimate (GFE) which will list every single cost that you will be paying to purchase the home. Remember, it is just an estimate which means it could go up depending on price of home, interest rate, down payment, taxes and other fees. Since the lender does not know what your rate will be, they will naturally use some rate so that they can calculate your costs but its just an example. What you might want to do to be on the safe side is to ask for a few different scenarios using a low interest rate and a high interest rate so that you can see the difference.

Whenever I provide a buyer with an estimated closing cost sheet, I estimate all fees to be on the higher side to be safe and if the fees and rate are lower when they finally lock in, the buyer will have been prepared for the worst and receive the best.

Who does this misleading information wind up hurting? The consumer and it just makes the entire industry look bad and that just infuriates me.

I don't know if my blog will help anyone but at any rate, now you know.

Short Sale Really A Long Sale

Renee Porsia (RE/MAX ACTION REALTY) — Wed, 04 Feb 2009 06:24:26 -0600

For buyers, purchasing a home that is involved with a short sale can be a really great opportunity however be prepared to wait and wait and wait and oh, wait some more.

For those home owners who simply can't afford their monthly mortgage payments anymore and are facing foreclosure, are now turning to their banks and asking if their home can be approved for a short sale. In case you are not aware of what a short sale is, a short sale takes place when a home owner owes more on their home than what the home will eventually sell for and will not have enough to pay off their current mortgage. The bank can approve the sale of the home and essentially forgive any remaining monies due on the mortgage or in many instances mortgages therefore avoiding foreclosure.

But, what's with the name "short sale?" It's been my experience that a short sale isn't short at all, in fact, it's a very long, drawn out tedious process that can take months to close leaving many impatient buyers wondering if they will ever take possession of their new home.

So, why does it take so long? Well for one reason, many Realtors simply do not know what they are doing. Many Realtors think that once they send the offer over to the bank, that's the end of their responsibility and all that is left to do is wait for an answer. An answer that probably will never come. Once the offer is sent to what is called the loss mitigation department, it has to go through various departments for approvals. The bank needs to have an their own appraisal performed, they need to review all of the paperwork they requested from the buyer which includes what is called a hardship letter that explains why it is the home owner couldn't afford to pay their mortgage anymore as well as bank statements, comps, photos, tax returns and anything else they can think to ask for. They also need to see an estimated closing cost sheet which details just how much money the bank will be getting from the sale of the home. Each process can take weeks. The truth is that lenders usually just drag their heels in getting an answer back to the Realtor.

I think the name "short sale" confuses many buyers. Seriously. I've told many buyers exactly what the process involves and yet the buyer will still call every week to see if their offer was accepted. It's not just buyers it's Realtors to. I've had buyer agents call me every day to ask what is going on with their client's offer.

What I can say about a short sale is that yes, it can be a great opportunity for a buyer to get a very nice home for a great price but if you need to be in your new home quickly, a short sale is not for you. If you do not have patients, a short sale is definitely not for you. If you have a home to sell and do not have a place to stay if your home sells while you wait for an answer from the bank, a short sale is not for you.

There is nothing short about a short sale. The name is a bit deceiving though I am sure the name has absolutely nothing to do with how long the process actually takes, it still doesn't make explaining it any easier.

If you are a buyer who is involved with a short sale, be patient , make sure your Realtor is experienced with short sales before you ever view the property and understand that the seller has no say over what your offer is anymore. It's all in the bank's hands.

And that's the long and not so short of it.

Do You Remember The Realtor Who Sold You Your Home?

Renee Porsia (RE/MAX ACTION REALTY) — Thu, 29 Jan 2009 15:12:59 -0600

Do you remember the Realtor who sold you your house? You should. It was a stressful time in your life. Don't you think you should remember the name of the person who put everything together for you and got you to the settlement table?

You have your family doctor, your mechanic, your hairdresser, your accountant and maybe even an attorney and you should also have your Realtor who you can contact should a need arise. You wouldn't just change doctors every time you fell ill or switch hairdressers every time you needed a hair cut. So why would you want to chance calling different Realtors when you are dealing with the most valuable asset you own?

If you do not remember who your Realtor was, that Realtor didn't do their job. If you are the type of person who thinks that once settlement is over, so is your relationship with your Realtor, you are wrong and misguided. It is my belief and practice that a Realtor's job only really starts after settlement. A Realtor's responsibility is to be there for every client not only during the transaction but most importantly, after the transaction is over.

Just as a consumer has the right to decide who they wish to work with when selling or buying a home, Realtors also have that same right. I make it a practice to decide if I would like to continue a relationship with a client before I get involved.

Since I run my business by referrals, I count on my clients to refer me to people they know who are like them. If I do decide that I want to continue to be their Realtor after the transaction is over and I also would like to work with their friends and family, I put them into my Client Appreciation program. I ask the client to complete an enrollment form at settlement which tells me personal details such as their favorite home design store, sports team, music and birth-date as well as a letter of introduction into the program. Then, once a month, the client will receive an item of value from me which could include information on how much it would cost to do various home improvements or a coupon to their favorite place to shop.

I also do what is called a "pop-by." A pop-by is when I stop by the client's home every few months or so when I am in their area to say "hello" for a few minutes. I like to find out how the home is and if they did anything new to their property. While there, I also answer any real estate questions they may have or see if anyone they know anyone who may be in need of my services. I also call them every other month.

It is vitally important to show clients how much I appreciate and value their business. Since not every client of mine is enrolled in my Client Appreciation program, my clients realize that I personally chose them and that I actually care about them. They were not just simply another transaction. I prove that I am there for any of their real estate needs, always just a phone call away. My clients will not ever forget my name because I am always around.

There are Realtors out there who do not keep in touch with their clients after the sale or only call their clients when business is slow. I think that that gives Realtors a bad name and consumers believe that all Realtors only care about making a buck. Selling real estate is my business but I also do it because I love to help people.

If its been years since you've heard from your Realtor, it is time to find a new Realtor. Don't wait until the last minute when you may not have the proper time to find a good Realtor who will work for you and who meets your expectations. Start calling Realtors or ask your friends if they are still satisfied with their Realtor. If so, give their Realtor a call and have them come out and meet with you. Have a check list of your needs ready.

In a time when good customer service is almost non-existent, isn't knowing that your Realtor is always looking out for you comforting? I don't know any doctor who makes house calls these days or who calls you to see how you are feeling. In fact, I do not know of anyone in any profession right now, who takes time to personally stop by their client's homes while in the area or who calls their clients just to say "hello." Something to think about, right?

If you do not wish to work with the Realtor after your transaction is over for whatever reason, just be honest and tell the Realtor. You wouldn't want the Realtor to keep you on their mailing list or to keep calling you if you were not happy with their services.

If you do remember your Realtor's name but haven't heard from them in a while, why not pick up the phone and give him or her a call. You could have them out to your home to give you an up-to-date home value report and to find out what price homes are selling for in your area. Or you could call just to say "hi" and see if he or she is still there for you.

I love when my clients call me to say "hello." Even Realtors need love.

What You Should Know About Foreclosures Before You Buy

Renee Porsia (RE/MAX ACTION REALTY) — Tue, 27 Jan 2009 13:49:00 -0600

I get a lot of calls every day from buyers who want to purchase foreclosed homes. After speaking with them for a few minutes, I realize that they really have no clue about what is really involved in purchasing a foreclosure.

With so many foreclosed homes on the market today its no wonder that so many buyers are thinking about purchasing one.

Buyers think that because the home was foreclosed on, that it just has to be a great buy. Not always the case.

I have been working with bank properties for all of my career and I can tell you lots of stories about foreclosed homes but I digress. I want to concentrate on what you should know before you venture out there.

Foreclosed homes are not always in great shape in fact, expect that the home will need repair, sometimes a lot of repair. When people are losing their homes, they tend to do lots of damage to the home. It's just the way that it is. Expect that the utilities will not be working. Banks do not like to put utilities in their name. Sometimes they have the Realtor put them into their name but I never liked to do that so I am certain many other Realtors feel the same.

Do realize that you will be buying the home in "as is" condition. Now, do not get confused, though you are buying a home in "as is" condition, that does not mean that you can not negotiate with the bank. I do it all of the time. Generally, these homes have been sitting vacant for a long time and nobody has kept up with maintaining the home so the home could have termites, mold, leaks, a bad roof, broken windows etc. Understand that banks do not want to negotiate or issue credits to you and that is why you need an aggressive, experienced Realtor who knows how to work with banks.

You can have a have a home inspection but keep in mind that you will be responsible for paying the inspector and any repairs that are needed. If you need to purchase as an FHA buyer, you will be responsible to make all repairs prior to settlement and that could wind up costing you a lot of money even before you take possession. Generally, if you need to purchase as an FHA buyer, I always advise my clients NOT to purchase a foreclosure.

If you do not have money for a down payment and closing costs, buying a foreclosed home is not for you. The bank will want to see how much money you have. If you are needing to scrape together enough money just to get to the table, you will be getting in way over your head. Remember, you are buying someones home who got in way over their head. You certainly do not want to end up the same way. There will probably be other offers and the bank will be looking for the strongest.

You will have no history of the home. If an investor purchased the home for a low price and used cheap materials and then was forclosed on which does happen, you may have future issues down the road. You get no disclosures with a forclosed home as you would from a home owner who is selling their home.

The bank will operate on their own schedule and not yours. In a traditional sale that involves a seller, there is usually a respond by date to allow for the seller to review your offer and make a decision. Banks DO NOT operate in the same way. They could get back to you in a day, a week or even a month which I have seen them do. If you are looking to be in a home by a certain date, buying a foreclosure could change your plans.

Make sure to have some place to stay because you may not be able to move in until after you have made the necessary repairs.

Foreclosed homes can be a way to get into a home at a reasonable price but you do need to do your homework and have the money and time to put into it. You should find yourself a buyer agent who is experienced in dealing with bank properties and not a Realtor who is a wallflower. You need an aggressive Realtor who will fight for you. You are buying someone else's problem. Someone who could not afford to pay their mortgage or make the necessary repairs to the home. As long as you realize that going in, you will be ahead of the game.

With home prices being so incredible right now, you may just be better off buying a home from a traditional seller and knowing exactly what you are buying and not having to worry about making all of the repairs, putting out extra money and you may even get a better deal without all of the stress.

I hope I have given you some things to think about prior to starting your home search. It's better to be safe than sorry rather than kicking yourself or blaming everyone else after you've purchased your home.

To Sell Or Not To Sell?

Renee Porsia (RE/MAX ACTION REALTY) — Sat, 24 Jan 2009 10:07:38 -0600

With all the talk about it being a buyer's market it seems the sellers are left wondering "what about me?"

After so many years of it being a seller's market, now the tables have seemed to have turned and sellers are no longer are in control which leaves so many home owners scratching their heads asking "is this a good time to sell?"

I get sick to my stomach when I hear so many people out there telling sellers that now is not the time to sell their home. Sure, I wouldn't just go sticking my house on the market just for the sake of doing it but if you have been in your home for several years and have been thinking of moving, have a great credit score, saved money for closing costs and a down payment, I couldn't disagree more.

I feel like a broken record when I say that this is an amazing time for everyone. If everyone would just stop always looking for something to complain about what a wonderful world it would be! When it was a seller's market, everyone was out there screaming about how home prices were ridiculous and buyers should not be out there buying and the real estate bubble would eventually have to burst. Come on people, is anyone ever happy?

Here is why the real estate market is just so amazing in my eyes right now. Mortgage rages are AT AN ALL TIME LOW, the supply of homes on the market right now is insane and best of all, wait for it, is that HOME PRICES HAVE GONE BACK TO WHAT THEY SHOULD BE and not what they should have never been in the first place.

So, if you put your home on the market and you hire an aggressive seller agent who will price your home realistically, you will sell your home. If your home is worth $300k then expect to get around $300k and nothing less. If you get an offer even close to what you are asking, take it because the next offer will be even lower. Believe it!

Ask yourself these questions before you put your home on the market:

are my bathrooms updated
is my kitchen updated
have I ever done anything to improve my home
if I were thinking of buying my own home, would I pay what I want someone else to pay

If you can HONESTELY answer yes, to those questions, then you can feel secure in knowing that your home will sell. If you can't answer yes to those questions and you do not have to sell, it probably isn't the best time to put your home on the market. Buyers are simply not going to want to over pay for your under-improved home!

So, your neighbor sold their underimproved home for some ridiculously high price and then in turn went and purchased someone else's ridiculously over priced, probably unimproved home. Nobody won in that situation. At least now, you will sell your home for what it is worth and then you will buy another home that is either worth exactly what you are paying or you will get an even better deal because some Realtor over priced the seller's home over 300 days ago so now can purchase it for UNDER market value and probably with a great mortgage rate. Their loss is your gain!

So, is it a good time to sell, I believe it is just as much as I believe that it is a good time to buy! Everyone wins!!

Can't we all just get along?

A Positive Attitude Goes A Long Way

Renee Porsia (RE/MAX ACTION REALTY) — Wed, 21 Jan 2009 09:40:45 -0600

Do you need an attitude adjustment? Chances are, that you just might.

Very recently, I have come to realize that our attitude plays a very important role in what goes on in our lives. I say very recently because I didn't exactly grow up with the most positive of role models. Sorry Mom, Dad.

Everyone has those days when absolutely everything is going wrong, you wake up in the morning and spill your morning coffee on yourself then you get in your car and some hot headed driver cuts you off and infuriates you and then the rest of your day doesn't get any better. Why? Well, I have come to believe that it is our attitude and the attitudes of those around us.

I wanted to test my theory so I have been doing my very best to be extremely positive about everything in my life no matter what. I am trying to be around only positive people, which turns out is quite a challenge in itself, and I am putting out there what I want to be. We create our own reality. In doing this, I have found that things have been getting better, having more good days than bad and I have been in a much better mood.

So, how is your attitude? How are the attitudes of the people around you? Are you the type of person who always sees the negative in just about everything and everyone? Are your friends negative? If so, why not test my theory.

If you want to be more successful in your career, why not think of yourself in that position already. Carry around a notebook and every day write in it what you would be doing during that day if you actually had that new career or were in that new position. What would that new position involve? For example, "heading out for a business meeting." You will be surprised at how your mind starts to think and how motivated you become.

Do you have have goals? If so, what are you doing to keep track of them? Write them down. In the begining of every year, I write down my goals for the new year and at the end of every year, I take them out and see what I have accomplished and am always quite surprised to see that I do accomplish a lot of what I set out to do.

Do you want a better life for yourself? What do you have to do to have that better life? Write it down, change your attitude, surround yourself with positive, like-minded people and most of all, do something about it. Sitting around saying "oh, I'm too old" or " I can't do that" is just negative,harmful thinking. You are the key to your own success.

It's a brand new year, a clean slate, you can control your own destiny and a positive attitude goes a long way and so can you!

The Truth About Today's Real Estate Market

Renee Porsia (RE/MAX ACTION REALTY) — Fri, 16 Jan 2009 08:58:08 -0600

We've all heard and seen all the bad, horrible things the media has been portraying about the real estate market, "we're going to sink into another Great Depression", "the real estate bubble has finally burst." Threes no doubt that times are tough. We are in a recession and if you are unfamiliar with what a recession is, it's defined as being two successive quarters of negative growth. However, you must keep in mind that we will come out of it and better days are ahead!

I have just become frustrated with all of the negativity that the media keeps spuing all over the place. They seem to like to pick and choose what they report on leaving out some very positive facts, important, hopeful facts that I think you need to know about, the silver lining.

When you want to apply for a mortgage, certain factors are taken into consideration such as the Housing Affordability Index. The Housing Affordability Index measures the ability of a typical American family to qualify for a mortgage. A score of 100 means that a typical family would qualify for the preferred 20% down payment as well as the monthly payments of no more than 25% of their household income. The great news that the media doesn't ever tell you is that currently, the index is at 135.2% which means the average American family not only can afford to purchase a home, but also will have excess money for living expenses.

More good news according to the National Association of Realtors and that the media forgets to report on is that existing home sales prices are also expected to increase by 3.7 percent in 2009, with new home sales increasing by 4 percent.

I was reading an article recently and after I was done reading this one tiny blurb, I thought about it and thought to myself how true it was so I wanted to share it with you. "Real estate is the only industry that gets "bummed out" when we have a sale- "oh, there are lots of options, prices are down..I'm depressed!" At Nordstrom, they'd be saying this is the time to get into the store." Come on people how true is that? When department stores SLASH their prices we all go crashing through the doors to be the first one in line to buy, buy, buy and save, save, save. Same holds true for real estate. We just have to start thinking of real estate the same way we think about department stores. The only difference is that you won't see huge signs hanging up saying " CLEARANCE SALE!" You won't see commercials on television telling you to come by a house this Monday and save up to 50% off. So, I am telling you. If you are looking for a home, now is your time. The real estate market is having a sale. A huge sale. Interests rates are at an all-time low, the market is saturated with inventory and prices have been SLASHED!

Home owners who are out there screaming to anyone who will listen "it's not a good time to put your home up for sale" couldn't be more wrong. I want to be very clear here. Sure, those days of home owners putting their unimproved, out dated, not maintained home up for sale and getting $100k over what they should have ever gotten are OVER! Gone, goodbye! Goodbye and good riddance I say! I don't know about you but I wouldn't want to purchase a home where the home owner lived for the last 50 years and never made any improvements and now just because some other sucker paid one of their neighbors $100k over what their home was worth, this home owner wants me to pay it too. Today, that poor sucker who purchased that over priced home is living in a home that has now depreciated and isn't worth what they paid for it and more than likely is facing foreclosure! Home prices are now going from completely ridiculous back to realistic and that is great news for everyone. If you are looking to put your home on the market, expect to get market value. If you are a home owner who thinks that your home is worth more than every other home around you my advice is to not put your home on the market.

More great news for you is that gone are those unethical mortgage consultants and Realtors. All of the people who jumped on the band wagon just to make a quick, dishonest buck from you are gone! When all of the dust has settled, the only mortgage consultants and Realtors who will be left standing are those who are in it for the long run, the honest, ethical, caring, respectable professionals. Mortgage companies have now made it more difficult to get loans which is a good thing. Remember how we got into this whole mess, in 1999, the U.S. government passed laws to increase home-ownership. Now, home-ownership is a good thing, but it's not an entitlement. You're supposed to work hard, save and even sacrifice to buy a home and over the past few years, that didn't have to happen. Now, it does! Who said the American dream would be easy? So, settle down, buckle up and get ready for a bumpy ride. We enjoyed a nice, easy, relaxing ride for a long time.

I wrote this article to hopefully encourage you. I hope it does! There is always a silver lining!

Special thanks to Brian Buffini for his contribution to my blog!