Right now most days are still warm and the evenings are just a tad on the cool side.  Here in Hoover Alabama we can still wear shorts during the day - or at least all the High School students think so.  Today it looks like it might rain again - a sign that a cool breeze is on the way.  I'm thinking winter is right around the corner.  YEA!!!!!

Winter though brings higher heating bills and higher bills is NOT something we are looking forward to.  The average American household spends $2000 on energy bills - half of which goes to heating and cooling.  With winter coming there are some things we can do.  We can turn the thermostat down and put more clothes on when in the house.  Many people have their thermostat turned up to the mid 70s.  Set your thermostat to below 70 degrees.  It will not be too uncomfortable (just put on some more clothes).

You may want to look into getting an Energy Star programmable thermostat.  There are basically 3 kinds:  The one that sets the temperature the same for all 7 days, the one that has the same temp for 5 days, then a different temp for 2 days, and a third that has 5 days, 1 day and 1 day.  That way the thermostat lowers the temperature in the middle of the night when you are toasty under the covers and then raises it before you get up so you will be comfortable when you get out of bed. You can also set the temp to go back down after you leave for work or school.  I have heard you can save $180 per year by properly using a programmable thermostat.

 If you would like to get information from Energy Star on programmable thermostats click here.

 When buying a home in the Hoover Alabama area, you can shop for a home with a programmable thermostat.  That is one of the features that is published on the realtor's MLS data sheet. Looking for a new home to buy?  You can shop for homes in the Hoover Alabama area on my website at www.tonibird.com. If you would like to know if a house has a programmable thermostat, let me know and I'll find out for you.

I Need A Down Payment To Buy A House and I just can't seem to get there!!!

So you've been hearing about the First Time Home Buyer Tax Credit; up to $8000 tax CREDIT if you haven't owned a home in the last 3 years and buy before Dec 1, 2009.  Who wouldn't want 8K in FREE MONEY?

But you need to come up with the 3.5% down payment in order for the deal to work.  You've been saving and you are Close, but not quite there yet. 

 Try these ideas:     

1. Sell Some Stuff - Do you have DVDs, CDs, or Video Games that you don't use anymore? You can sell them back to a 2^nd hand gaming or CD store.
2. Sell More Stuff - Do you have furniture, bicycle, whatever that you can sell on e-bay?  There is an e-bay store in the Wal-Mart shopping center on HWY 150 in Hoover if you don't want to do it yourself. There is always the yard sale - I say that last because I hate yard sales, but I've known people that have made some bucks selling used stuff.
3. Get a second job - We're not talking about forever, just until you get some money saved up and if you work retail at somewhere where you get discounts on stuff for your house, you can furnish your place at a discount.  Have you looked at how much money you can make delivering pizza or babysitting? Also, it is October and the leaves will be falling soon.  You can make some MONEY raking leaves.
4. Cut Off Your Cable (if you are not under a contract that hasn't expired yet) - This is only temporary. When you get the new house, you can get it back, but think of how much money you could save without say 6 months of cable payments?
5. Car pool. Depending on how far you live from work, you could save hundreds each month by sharing a ride - and get to know some friends really well in the mean time.
6. Check You Phone Bill - Do you have the right plan for the type of calling you make?  You may need to cut back if you are paying extra.
7. Stop Eating Out - Most people waste a lot of money eating out.  Eat Breakfast at home, bring your Lunch, Don't buy drinks and snacks out of the machine, and limit your Dinners out to a budgeted amount.  Keep track of the money you spend eating out for two weeks.  Most people are totally shocked at how much they spend of food.

 These are just a few ideas.  For ideas about saving money check out this article. 

How much can you save in a month?  Set a goal and see what happens.  If you can't make the 3.5% by the end of November, then you will have a good chunk saved and can build on it. They keep talking about extending the tax credit for 1^st time home buyers and if THAT happens, you'll be ahead of everyone else. DON'T GIVE UP. Saving money to buy a home is a terrific goal. Once you buy a home, the value will increase and you will build equity which is also a means of saving. 

If you would like help finding the home of your dreams, you can start by looking on line at my website. Let me know at toni@ToniBird.com if I can answer any questions.  Good Lick!

When your realtor prepares to sell your home, that person will look at what homes have been selling for in the area immediately surrounding your home.  What homes are selling for is what sets the Market Value - or what you can expect to get for your home.   Prices have come down in Hoover Alabama, just like they have in the rest of the country, so it is unrealistic to expect to get the same amount of money your neighbor down the street got two years ago.

VERY UNREALISTIC

I like to say, you need three things to sell a house: great condition, great marketing and the right price.  I have given all kinds of helpful "condition" hints in the past, but let's talk about PRICE.

The first three weeks on the market are the most critical when selling a house. So, it is important to resist the temptation to price it higher and then come down later.

Here's the thing, especially in today's current housing market where numerous sellers are competing for fewer buyers (there may be over a hundred properties that meet a buyer's general requirements), your house has to be in the top 10% to get noticed.  No one - well almost no one - wants to look at 100 houses. Buyers look at homes on the internet and pick out their favorites.  If the seller's home is grouped with others that have more "WOW", the buyer will just skip over it. Also, the majority of buyers use buyers' agents to assist them with purchasing a property. Buyers' agents will help the buyers find a home that's right for them. If their buyers are interested in a particular home and it is priced too high (based on comparable properties sold) then the buyers' agents will find their clients similar more reasonably priced homes to view in the same area.

As a seller's property that's over-priced continues to sit on the market the listing loses its newness. There are typically fewer new listings than existing listings. Agents pay a great deal of attention to what's new on the market. Homes that are priced correctly generate attention, activity and a sale; over-priced homes, on the other hand, sit for long periods, are passed over, and ultimately result in a price reduction.

If a seller has an over-priced home on the market and then finally lowers the price it sometimes goes overlooked. Because it's not a new listing it'll need a lot more attention to get agents and buyers to notice that this same home is now being offered for less.

There are things the realtor can do to try to get the home back in front of people - to COME SEE IT NOW  - Emails, Flyers, ads, etc.. Not an impossible battle, but again, the listing is no longer new and may be less appealing even with the price reduction.

When the seller lowers the price, it may come too late and if the market is falling, the seller is still above its competition even though they lowered the price.

Most sellers who start too high, end up getting less in the end than they would have if they priced lower to begin with.  If you'd like to know what houses have sold for in YOUR area, let me know at Toni@ToniBird.com.  Reviewing information on SOLD properties will help see what the selling price of YOUR home should be.

If you'd like information on selling your, home check out the seller's library on my website at www.ToniBird.com.

When looking at Buying A Home, one of the biggest yes or no items in the buyer's mind is the BATHROOM.  You can have a great backyard, super den, and even updated kitchen with the latest bells and whistles, but that bathroom killed the deal!  Could have been wrong color tile, bathroom too small or no separate tub and shower.

Fixing up a Bathroom is NOT that hard.  If the room is too small, many times you can take in a nearby closet space or take out part of another room.  These are fixes that a contractor can do fairly easily and doesn't add square footage (and additional cost) to the house. 

Do you have that outdated colored tile from the 50's (aqua), 60's (pink), or 70's (avocado)?  That outdated colored tile can be replaced (tumbled marble in a neutral color like the one you see here is very popular right now) and adding a seat or a spot to put your soap is a nice touch.  Take a look at this house for sale in Birmingham, Alabama, that has been totally redone, with a gorgeous tub and shower.  Can't you just see yourself relaxing in this beautiful bath?

Don't want that big of a project; paint the tile.  Don't just slather on regular paint, there is a special paint that a professional can use.  I had my mother's BRIGHT PICK bathroom painted white and it had a totally new look - the cost $400. 

Light fixtures can make a huge difference and are not that expensive.  I bought one for over the sink for $29.95.  Some are a lot higher, but check the clearance isle at Mazer's, Home Depot or Lowes and you can find some really nice ones.

Faucets and other fixtures are also a pretty easy fix.  The houses we see from the 80's have a lot of brass fixtures that are considered outdated.  These can all be replaced with brushed nickel or oil rubbed bronze.  If you start the job - finish it.  That means the stopper in the bottom of the tub should match the faucet.  And those shower doors CAN be replaced with oil rubbed bronze.  This bathroom to the right is in a house built in the 90's and WAS brass just 3 short months ago.  Look at it now!

If you'd like a few ideas about fixing up YOUR bath, let me know. Be creative, look at magazines and shop around.  We bought several fixtures and faucets at the day after Thanksgiving Sale - and the big boxes are not nearly as crowded as the mall!

 Investing in fixing up the bath will pay really make your house stand out when it comes time to sell!

Ahh, it's raining right now, temp in the 70s, and really muggy outside.  But a huge COLD FRONT is supposed to be on its way.  Anyone who knows me knows I LOVE the cold weather.  My idea of the perfect day is 40 degrees with the sun shining and no wind. It is easy to breathe and it's just exhilarating!

Soon we will be able to stop running the A/C and open the windows for fresh air.  This summer wasn't as hot as it has been in the past, but I for one will be glad to see a little relief from that big summer electric bill.  My electric bill is less than ½ in the spring and fall when I don't run the HVAC.

One thing I've been hearing a lot about is the tax credit for getting energy efficient appliances.  The credit is part of President Obama's Recovery and Reinvestment Act. The Environmental Protection Agency has a rating system called Energy Star which means appliances that qualify meet strict energy standards.  You can get a tax credit for up 30% of the cost of a new qualifying HVAC unit (with a cap of $1500).  Now that means if you buy a new HVAC system with the new energy star ratings, you save big bucks on your utility bill (statistics show up to 30% if your HVAC is over 12 years old), AND you can get MONEY BACK when you file your taxes next January.

That sounds lime a WIN, WIN, to me.

 If you want more info on the requirements for getting a tax credit for a new HVAC unit click here.

Want to save money on heating and cooling but don't want to go through the effort of having a new HVAC unit installed?  You could buy this house.  These owners have already purchased a new HVAC unit for this lovely house.  Big rock, wood burning fireplace - very romantic on a cool evening, hardwood floors - the real thing (not laminate), new kitchen counters, fabulous deck and now a NEW HVAC. It doesn't get any better than this!  And if you haven't owned a home in the last 3 years, this one qualifies for an $8000 first time home buyer tax credit. 

Something to think about.  Some people sit around and complain about the "government spending all that money".  Well here is your chance to make it work for you.

You keep hearing about the first time home buyer's tax credit and want to take advantage of it, but can you USE the $8000 to actually BUY the house.  Well, NO. The problem is with 99.9% of the loan programs out there today, you need to have a down payment AND pay closing costs.

So, how much money do you need?  Well FHA is the most popular loan for people who haven't saved up a lot of money and the down payment is 3.5% of the price you are paying for the house.  So, if the house costs $100,000, you have to have $3500 as a down payment.  If the house costs $80,000 you have to have $2800. If the house costs $145,000 (like the house at the right) the down payment would be $5075 - you get the point.

In addition to the down payment, you will need to pay your closing costs and prepaid items.  What is that you say???  Well, closing costs are fees that are paid to the lender to make the loan (all those people who work on your loan have to be paid so there is a processing fee, an underwriting fee, a tax service fee, etc). Also, you will need things like a title policy to make sure the person who is selling the house actually owns it, and the termite report to make sure the house has no termites and the closing attorney who closes the house needs to be paid.

Prepaid items are things paid in advance like your homeowner's insurance.  Just like you buy car insurance in case something happens to your car, you buy homeowners insurance in case something happens to your house.  This fee is paid a year in advance, so you pay a One Year premium at closing.

So, that seems like a lot, but don't worry. Your realtor will make sure it ALL happens before you get to the closing - you just have to pay for it. 

Many times the seller will pay some of the closing costs for you - if they like the price you are paying for the house. But you still have to come up with the down payment (3.5% of the purchase price).

It can be a challenge to save up money to buy a home but if you have some money in the bank, now would be a great time to talk to lender to see if you can qualify to buy a house. The first time home buyer tax credit is set to expire on November 30, 2009, so you have to find the home and close within 60 days.  With a good lender and a good realtor, this is definitely possible  - but don't wait.

You can search for homes for sale in Hoover Alabama and the Greater Birmingham area by going to the MLS Search section of my website.  Click here for ALL the homes available in the area.  See something you like, let me know and we'll go take a look!

Are you thinking about Buying a Home and want to get the best mortgage payment? Want to make sure you are getting the best interest rate on your mortgage?  Well finding the best rate is not always finding the best deal.

Whenever you make a big purchase, it's always a good idea to shop around. There are hundreds of financial institutions wanting to give you a mortgage. If we hear about the Fed dropping the rate and the Fed Rate seems to be controlled by this one person (or government committee) then why can one mortgage company have a rate of 6.0 and another have a rate of 6.5?  Well, everyone is out to make money (there is nothing wrong with making a reasonable profit) but what sounds like the best deal isn't always the best deal.

There are two things you need to look at when shopping for a mortgage: rate and fees (fees typically run 3-5% of the loan amount but some can be really high).  If you are looking at 2 companies and one is offering a rate of 6.0% and the other company is offering a rate of 6.5%, then the first company is probably charging you more fees than the company offering 6.5% rate. 

Fees equate to cash out of your pocket at closing.  A higher rate means you pay a higher monthly payment.  So, you are either going to pay the money today, or over the life of the loan.

So with all these fees and rates it is hard to compare apples to apples.  That is where the APR comes in.  The APR takes into account the amount you are paying in fees along with the rate.  The lower the APR the better the overall deal.  So if you are calling around or checking out rates on the internet - look for the APR.

If you would like any information about buying a house in the Hoover, or Greater Birmingham Alabama area, please contact me at http://www.tonibird.com/.

Getting Ready to Move?

So you've got a contract on your house - now the fun begins.  You know you've got to pack but don't forget to let everyone know your new address. 

Here is a list of those to notify:

Provide the post office with your forwarding address two to four weeks ahead of the move.

Notify your credit card companies, magazine subscriptions, and bank of your change of address.

Create a list of friends, relatives, and business colleagues who need to be notified about your move.

Notify your children's school about your move (some school districts will require a change in school if your address changes).

Arrange to disconnect utilities and have them connected at your new home.

Cancel the newspaper, or change the address so it will arrive at your new home.

Cancel insurance coverage on the old residence.  Insurance on the new property is usually handled by the closing attorney so you HAVE insurance on the New home, but sometimes people forget to cancel insurance on the old home.  Most insurance is paid ahead for one year so you are entitled to a refund. You will want to check to see which insurance covers items DURING the move. Usually movers only cover what they pack.

Good Luck with your move.

If you would like any help finding a new home in Hoover, Alabama or the Greater Birmingham Area, just let me know. Search the internet from my website http://www.tonibird.com/search.asp?

It is very easy to qualify for the tax credit.  Anyone who has NOT owned a home in the last 3 years can qualify for the tax credit.  When you want to buy a home, you must qualify for a loan (unless of course you are paying cash) but if you can qualify to buy a home, the tax credit is YOURS.  Do nothing NOW; in January when you file your 2009 tax return, you get the form for the credit and attach it to your return. 

The tax credit is equal to 10% of the price you pay for the house, up to $8000.  They call it the $8,000 tax credit because most of the homes in our city are over 80,000. If you pay only $60,000, your credit will be $6,000. This first townhome is on sale for $79,900.  Click here for more info on this home.  Your tax credit for this one would only be $7,990.

Here is another great home for sale.  This one is a house with a nice fenced backyard that is on the market for $109,900.  Click here for more info on this great property.  Since there is a cap of $8,000 on the credit, then 8K is all you would get.

Remember, this is actually a tax CREDIT.  So if you owe 8,000 in taxes, you will pay -0-.  If you only owe $4000, then you will get $4000 back.  It's that simple.

Both of these are good choices and there are many, many more. This is a great time to buy a home. What could you do with an extra 8K next year???

There are a lot of tax credits floating around out there these days.  One is the tax credit for 1st time home buyers.  What happens is this - if you buy a home for the first time, you get a tax credit equal to 10% of the amount you paid for the home.

So, next January when you go to file your taxes, if you bought a $60,000 house, you can subtract $6000 from your tax bill.  If you buy a $100.000 house, you get to subtract $8,000 because $8000 is the most they will give you back.

If you had taxes deducted from your paycheck, you can get a refund of what you paid in UP TO $6000 or $8000 in our example above.  What if you didn't have to pay that much?  Great news, you get a CREDIT of the whole $6000/$8000.  THIS IS A HUGE DEAL.

The tax credit will run out ON DEC 1st, so it's time to get started looking if you want to take advantage of the tax credit.  If you have questions, call me.  If you have good credit and some money in the bank, we can get you into a house before the tax creit runs out.

Here is a house that one of my clients bought a few years ago as HER first house.  It was perfect for her.  She even made some improvements like adding hardwood floors and redoing the kithen.  Click here to see what the house looks like on the inside.  Can you see yourself living there?  AND can you see yourself getting an $8000 check from the IRS AND living here?

It has a small backyard, and very little exterior maintennce, so you won't have to spend your weekends mowing at your 1st House. Sounds really good, doesn't it.