Ken Hunter's Home Buying, Selling and Ownership Blog

4 Ways to Hater-Proof Your Home, Before You List It

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Thu, 24 Jan 2013 06:03:56 -0800

4 Ways to Hater-Proof Your Home, Before You List It Re-blogged from Tara-Nicolle Nelson, Trulia, 1/23/13 View RSS feed close [x] ThisIIn my experience, there’s one fundamental truth about haters: you can never fully escape them. The only way to live a 100% hater-free life is to never stick your neck out, and never do anything because, as the saying goes, you simply cannot please all of the people all of the time. And this is particularly true with real estate and putting your home on the market - because homes, locations, aesthetics and such are so much a matter of personal preference, some people will find something to criticize about even the most perfectly staged, priciest properties on the market. As a home seller, your job is not to try to make your home be all things to all people. That said, you don’t want to be the house that nearly every buyer and broker sees, rolls their eyes and utters the same few, predictable deal-killing criticisms. Fortunately, what is predictable is avoidable. Let’s explore the most common things buyers hate about listings they see. In the process, you’ll get equipped to sidestep those issues and, in large part, hater-proof your own home. House Hater Complaint #1: Odors. Some of you might think I’m beating a dead horse, here. But as long as house hunters keep emailing me to ask why, in the name of all that is sacred, they keep seeing homes that smell like all sorts of madness and mayhem, I’m going to keep repeating this message. Viewing a home sounds like it’s all about the visual of the experience. And visuals are critical - your home should be in its Sunday best, so to speak, when it’s being shown, in terms of being spruced, staged and clutter-free. But when a buyer comes to see your home, they don’t turn off the rest of their senses. And there is nothing that can turn a buyer off from a home, they’d otherwise like, quicker than a powerfully bad odor - in particular, cigarette and pet odors in a house that seems to have been well-cleaned create the concern that they might be permanent and that the buyer might not be able to get rid of them without dropping some serious cash on cleaning or even removing wall, window and floor coverings. If you are a seller and you know that someone has been habitually smoking in your home or that you have had a “challenge,” let’s say, with pet accidents, do not ignore the problem. And do not think that because you had the carpet shampooed or the drapes cleaned, or because YOU can’t smell anything, that the problem is gone. The fact is that the human sense of smell very quickly gets used to smells that it lives with or is surrounded with on a regular basis. So it’s critical to get your agent, stager or even your friends and family members - who don’t live with you and love you enough to be honest! - to help you detect bad smells and odors, and make sure they are eradicated by any means necessary, before you place your home on the market. House Hater Complaint #2: Glaringly extreme overpricing. There’s the kind of overpricing that makes a buyer say, “Hmmm - seems a bit high. Let’s go see it, but we might have to offer a little less than the asking price if we like it.” Then there’s the kind of overpricing that makes buyer say “I’ll wait until a price reduction” or worse, hold their sides from laughing. When overpricing is glaring, many buyers and buyer’s brokers will comment on it or inquire about it. What they are less likely to do is actually come out and see the place - especially if they weed it out online after comparing its specs to all the other homes in the area and the price range. Often, homes this severely overpriced simply don’t sell, or not until after they’ve had some serious price cuts or have been on the market so long buyers begin to feel confident about making lowball offers. In fact, the goal is the opposite - you want your home to stand out as a property that is not dirt cheap, but does present a good value for the money - that’s what motivates buyers to get out of their chairs and into the property for a viewing. Here’s how to hater-proof your home’s listing against this issue: fixate on the comps. Smart sellers deactivate their emotional attachment and very human tendency to overvalue their precious homes by poring over the sales prices (not list prices) of similar, nearby homes that have recently sold. Your agent will be happy to help you walk through this data and will almost certainly recommend a list price, but ultimately you make the decision about the price point to list your home at. Also, consider using your broker’s first Open House as an additional hater-proof measure: if the agents overwhelmingly comment that they think the home is significantly overpriced, listen. House Hater Complaint #3: Dirt and messes. Possibly the single largest source of House Hater Complaints I’ve ever heard are the dirt, messes, piles and personal belongings that buyers find so distracting, when they walk into a home for a viewing or Open House. Obviously, homes that are filthy from floor to ceiling are fertile fodder for haters, but often those homes are bank-owned or otherwise distressed so that the sellers aren’t likely to do much. What is underestimated is how often even savvy home buyers are distracted (and disgusted) by relatively clean homes that just have a few outstanding messes, like piles of dirty dishes in the sink, piles of dog poo in the yard or even piles of papers, mail, books or clothes lying out in plain view. Will one or two such items ruin the sale of your home? Perhaps not. But a few of them (or more) can certainly distract a buyer enough that they fixate on your messes and, in the process, fail to see what is so great about your property. And as I see it, cleaning up, meticulously, before every single showing is free - so it makes no sense to even run the risk of turning off a prospective buyer by letting messes get in the way of their ability to visualize themselves and their families flourishing in your home. House Hater Complaint #4: Lots of little malfunctions. All of us tend to think our homes are in fantastic condition. After all, you have the furnace maintained regularly, you’ve got granite and dual paned windows - maybe you even had the floors refinished or the walls painted in preparation for putting your place on the market. That’s all fantastic - all the non-cosmetic work you’ve done to maintain and improve your home should be trumpeted in your marketing materials, and the cosmetic items will (or should) speak for themselves. But here’s the thing: buyers who visit your home won’t be running your dishwasher or testing the furnace (at least not until inspections). What they will do - almost unconsciously - is: • flick light and fan switches • open or close window coverings, closet, room and entry doors, • open and close drawers, cupboards, gates and fences and • hold the handrails as they walk up and down the stairs. They will hear leaky faucets and point out water spots from long-ago repaired leaks, and they will notice (or potentially trip on) uneven exterior tiles, paths and walkways. And even though these items might be vastly less expensive to fix than the roof or sewer line you had replaced, they are much more visible and noticeable to a buyer. In fact, buyers don’t always even know that the little malfunctions and repairs that need doing are little or inexpensive. And when they notice a bunch of these sorts of things in a single property, they can jump to the conclusion that the whole place is rickety. Since these little fixes are inexpensive to make, have them completed before you list, if at all possible. You might even ask your agent to walk through the property with you and to give you a handyperson reference for someone they know works efficiently. Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

Top Ten Things You Need to Know About the 3.8% Investment Tax on Home Sales

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Tue, 15 Jan 2013 00:24:17 -0800

This article was published today in the Houston Association of REALTORS weekly newsletter. Just thought everyone might be interested to know what's in store for the 3.8% investement (including real estate) tax for 2013: "Top Ten Things You Need to Know About the 3.8% Investment Tax on Home Sales David Mendel, January 14, 2013 Almost immediately following passage of the Health Care and Education Reconciliation Act of 2010 and Patient Protection and Affordable Care Act in 2010, a series of emails began circulating around the Internet, most with a kernel of truth but largely made up of misinformation. A new round of emails has recently begun to circulate. REALTORS® are not CPAs or professionals who are necessarily proficient in tax law, so with the new year upon us and as you begin to consider your 2013 tax obligations, HAR recommends that you consult your own tax advisor about your particular circumstances. That being said, here are the general details of the legislation that will potentially impact some home sellers. The Acts impose a 3.8 percent investment tax on unearned income above certain levels to help fund Medicare. Prior to the U.S. Supreme Court’s upholding the Acts in July 2012, there was much uncertainty whether the tax would actually go into effect. Now we have certainty, and beginning with the 2013 federal tax year, the 3.8 percent investment tax on unearned income is law. 1) When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will NOT be subject to this tax. 2) The 3.8% tax will NEVER be collected as a transfer tax on real estate of any type, so you’ll NEVER pay this tax at the time that you purchase a home or other investment property. 3) You’ll NEVER pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year’s gross income. 4) If you sell your principal residence, you will still receive the full benefit of the $250,000 (single tax return)/$500,000 (married filing joint tax return) exclusion on the sale of that home. If your capital gain is greater than these amounts, then you will include any gain above these amounts as income on your Form 1040 tax return. Even then, if your total income (including this taxable portion of gain on your residence) is less than the $200,000/$250,000 amounts, you will NOT pay this tax. If your total income is more than these amounts, a formula will protect some portion of your investment. 5) The tax applies to other types of investment income, not just real estate. If your income is more than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest income, dividend income and net rents (i.e., rents after expenses). 6) The tax took effect on January 1, 2013. If you have investment income in 2013, you won’t pay the 3.8% tax until you file your 2013 Form 1040 tax return in 2014. The 3.8% tax for any later year will be paid in the following calendar year when the tax returns are filed. 7) In any particular year, if you have NO income from capital gains, rents, interest or dividends, you’ll NEVER pay this tax, even if you have millions of dollars of other types of income. 8) The formula that determines the amount of 3.8% tax due will ALWAYS protect $200,000 ($250,000 on a joint return) of your income from any burden of the 3.8% tax. For example, if you are single and have a total of $201,000 income, the 3.8% tax would NEVER be imposed on more than $1000. 9) It’s true that investment income from rents on an investment property could be subject to the 3.8% tax. BUT: The only rental income that would be included in your gross income and therefore possibly subject to the tax is net rental income: gross rents minus expenses like depreciation, interest, property tax, maintenance and utilities. 10) The tax was enacted along with the health care legislation in 2010. It was added to the package just hours before the final vote and without review. NAR strongly opposed the tax at the time, and remains hopeful that it will not go into effect. The tax will no doubt be debated during the upcoming tax reform debates in 2013." Source: National Association of REALTORS® Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

6 Unexpected Advantages of Having the Right Agent

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Fri, 23 Nov 2012 04:40:51 -0800

I once worked with a buyer who had to fly to the other end of the world within a couple of days after we placed her offer. Needless to say, she was agitated and anxious about the prospect of being so far away during inspections and contingency removals, especially since I’d earlier stressed how important it was for her to be present. Rolling with the punches and poor timing, we sat down just before she left and talked through the timeline, including which events would take place on every day of her absence - including some harmless glitches that commonly arise along the way. I never will forget her laughter when the occasional glitch of this sort did, in fact, come up. She would say: “I would have been stressed out by that. But since I knew to expect it, I’m not!” The list of pleasant surprises in real estate matters is really, really short. Normally, we all want things to tick along precisely according to plan, and almost anything unexpected causes us inconvenience or plain old stress. But there is one relatively common set of real estate surprises that is actually quite delightful: the unexpected perks of working with the right real estate pro. Most sellers come to their real estate agent relationships expecting help selling their home on a particular time frame, and marketing the place to make that happen. Buyers are most often seeking an agent’s help finding the right home and negotiating to buy it. But both buyers and sellers are often pleasantly surprised at the other resources, strategic counsel and expertise their agents ultimately provide.Here are some of the biggest benefits that catch them off-guard: 1. Insider knowledge. In a recent survey, home buyers said one of the biggest benefits they got from their agent was an understanding of how the buying process would unfold. When it comes to something as infrequent, complex and high stakes as buying or selling a home, having an insider advisor who is dedicated to your success can alleviate your anxieties and otherwise put you in a power position, when it comes to making smart decisions and moves. 2. Lifestyle design advice. I recently spoke with Tim Ferriss, author of The Four Hour Workweek, The Four Hour Body and his brand-new book, The Four Hour Chef: The Simple Path to Cooking Like a Pro, Learning Anything and Living the Good Life. I asked Tim flat out what would be in his dream kitchen, if he were in the market for a home and he answered without hesitation: a six-burner Viking range. And that was it. No Carrera marble. No European soft-close drawers. To a world class cook, what really matters is the stove. In fact, he explained, he was briefed on the importance of the range, and only the range, to a great chef’s kitchen by chef extraordinaire Alice Waters. The right agent can and often does precisely what Alice Waters did for Tim Ferriss: they can course correct you around what home features, transaction terms and even timing nuances will help further the lifestyle you are trying to create - and which won’t - based on their past experiences working with buyers and sellers in similar situations. You might think that you are desperate to live in a particular neighborhood, but your agent can help you understand the realities of the commute in a way you didn’t before. You might want to wait to list your home until the summertime, but your agent can point out the wisdom of getting started prepping the place during your holiday vacation time so that you’ll be poised to take advantage of pent-up cold weather demand at the first thaw. Of course, for your agent to be able to do this, you have to give them as much information as possible about the lifestyle you aim to create. 3. Save you from yourself. As we discussed last week, there are many instances in which even the smartest buyers and sellers are their own worst enemies, committing unintentional acts of self-sabotage like overpricing, lowballing, overspending and the like. If you equip your agent with a deep understanding of the overall life picture, financial picture and then home picture you’re trying to create with your buy or sale (or both), they can help point out when you’re about to take an action that will be inconsistent with or counterproductive to what you say is important to you. Ultimately, it’ll be your decision whether to take a given red flag-waving step or not, but your agent can be a very valuable coach to gently point out when you might be getting in your own way. 4. Stop you from buying the wrong house. A surprisingly high number of home buyers report that their agent actually talked them out of buying the wrong house for them. Whether because the inspection results come back and are deeply worrisome, the sellers simply want more money than you can healthily afford or experience has taught them that a buyer with your priorities will not be happy with a house like that, the majority of agents would rather sell you the *right* home for your family next month than sell you the wrong one right now. 5. Devise a pre-buying or -selling action plan. What a tangled web we weave, when first we fail to properly plan and prep to buy or sell our home. Okay, so it doesn’t have quite the ring as the original saying, but you get the gist nonetheless. Agents love nothing more than to get a call way in advance of when you think you’ll be ready to make your move. Calling them in advance allows them to sit down with you in an unhurried, unpressured environment to map out an action plan that sets you (and them) up for successfully achieving whatever your real estate goal is. And that, in turn, can help you prevent the overwhelming frustration, procrastination and eventual last minute scrambling and freak-outs that arise when your ducks are not all in a row. Things an agent can help you plan out, significantly in advance of your target move-in or move-out date, include, among many others: Referrals to mortgage brokers, financial planners, contractors, stagers and relationship counselors (just kidding on that last one!). Setting up action steps you need to take and helping you understand when you need to take them to meet your target time frames. Getting clear on the relative costs (and financial prep it will take) to buy in any of several neighborhoods, cities and even property types that you are considering. 6. Illuminate options you weren’t aware were even possible. There’s no shame in not knowing everything there is to know about real estate - even very active real estate consumers will only buy or sell 5, maybe 10 homes in a lifetime. But your agent does this all day, every day, for their entire career. So off the top of their head, they might be able surface options in terms of properties neighborhoods pricing plans contract terms marketing tools negotiation strategies and even post-closing protections and service providers that you would never have known existed, if not for them. The theme here is this: don’t limit your agent and the help they can provide you by what you *think* their job is, or what you think they do or don’t know. Make sure that when you’re getting referrals or meeting agents online and in person early on in your agent selection process, you pay attention to their references and marketing plans, but also to how well your personalities mesh. Ideally, you’ll find and work with an agent in whom you can confide everything from your big picture life vision to your truly confidential financial details. Bottom line: The more you feel comfortable sharing with your agent, the more likely you are to be pleasantly surprised with the ways they can help you. Re-posted from Trulia Blog by Tara-Nicolle Nelson Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

The 5 Most Expensive Ways Buyers & Sellers Sabotage Themselves

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Thu, 15 Nov 2012 05:32:06 -0800

It’s easy to see the experience of buying or selling a home as an adversarial one: you vs. the people on the other side of the bargaining table, with one chess move by your opponent potentially costing you thousands of dollars. In my experience, though, the average real estate consumer’s biggest potential enemy is him or herself. Buyers and sellers routinely take approaches, make moves and make omissions that cost themselves much more than anything the other side could ever do. The first step of any cure is diagnosis. Here are some clues to detecting the costliest cases of real estate self-sabotage so you can stop them in their tracks, get out of your own way and get back to the business of buying or selling your home: 1. Hesitating. I’m a big proponent of buying or selling - making any real estate move, really - on whatever time frame makes sense for your life, your family and your finances, rather than trying to time the market. That said, once you’ve done the math, saved your pennies, prepped your property and otherwise decided to move forward on your home buying or selling plan of action, hesitation can cost you. Buyers who hesitate to make an offer can lose out on a home entirely - or can wait so long another offer comes in, forcing them to offer more to beat the other folks out. Sellers who hesitate to take an offer can lose out on a buyer, when a new listing comes on the market that catches their eye or better meets their needs. Mortgage borrowers who wait too long to lock their interest rates can end up paying more when rates creep up instead of down. And here’s one more for buyers: hesitating to move forward after you get into contract can also cost you untold stress and deal complications if it snowballs into a situation where you run late removing contingencies - having to ask the seller repeatedly for extensions can cost you negotiation goodwill that you could otherwise have leveraged into repairs or closing cost credits. I’d say 90% of hesitation is a result of fear, and fear most often arises when we second-guess our life decisions connected to the real estate transaction, we don’t understand or are intimidated by a subject, or we feel powerless to make a wise decision because we don’t know our options all the factors we should be taking into account. Accordingly, you can eliminate hesitation-related self-sabotage by: working through the life and financial decisions that are intertwined with your real estate matters completely and on paper before you start the process, so you can revisit them if and when you’re tempted to hesitate getting as educated as possible in advance about your local market dynamics and neighborhood home values, as well as the home buying or selling process in general, and diving head first into the discomfort and uncertainty that everyone experiences when they make these major decisions, sitting down with your agent and other pros involved to get every question you have answered in a timely manner so you can move forward, rather than putting decisions off and “sleeping on it” night after night. 2. Not taking expert advice. Have you ever taken an indecisive friend out to dinner, watched them hem and haw over the menu, ask the server what their favorite dish is and then order something totally different than the server’s choice? That same phenomenon takes place every day in real estate. Many smart buyers and sellers invest much time and energy into agent-finding, asking around for referrals, checking agents out online, interviewing them and even calling around to check references, only to completely disregard their advice! If you have a reputable, competent agent, you might be surprised at how often they can save you money with simple nuggets of experience-laden advice specific to a given scenario, like: act fast list it lower offer less/more counteroffer for more be aggressive take the bank’s terms don’t buy that house get one more inspection/bid don’t remove contingencies yet/remove contingencies now ask for X, Y or Z repair, price reduction, credit, free rent-back, furniture, or longer time to close. Experienced, local agents have a strong sense for some of the precise things that are so tricky for a buyer or seller to wrap their heads around, like pricing and negotiations. You should definitely ask your agent for data and the logical rationale behind their advice, and should keep asking until you understand and are comfortable with the decision that you make (whether or not it agrees with their recommendations). By no means am I suggesting that you blindly take every piece of advice you are given by any agent, trusted or not. That said, if you’re having a hard time getting satisfaction or making progress on your home buying or selling aims and your typical reaction to advice from your agent is to reject it, at least consider that being more receptive to that advice might actually help you get out of your own way. And if you have a truly hard time trusting your agent’s advice for whatever reason, consider that you might simply not yet have found the right agent for you. 3. Overpricing or lowballing. It might run contrary to conventional wisdom, the idea that asking for more money or offering less can be acts of self-sabotage, but ignoring the damage that these acts can do to your real estate plans is unwise. In real estate, pricing is just more nuanced than that. It’s not the case that you can simply pick your price, ignoring the financial complexities involved and the psychologies of the folks on the other side, and expect for good things to magically happen. Those nuances include these truths: setting a list-price that is significantly above what other, similar homes have recently sold for will not only not get you that price, it poses the potential to turn buyers off, keep them from coming to see your home, make your place sit on the market longer than it needs to and ultimately, it can result in low or no offers. At the extreme, overpricing can force you to cut the price, sometimes dramatically, to activate buyers who have learned to disregard the obviously overpriced listing in their online house hunt search results. And buyers beware: making lowball offers significantly below the fair market value of target homes has a similar impact. Sellers ignore them or counter them up higher or they get beat out (often repeatedly) by more realistic buyers. I have seen the tendency to lowball cost buyers thousands over the months they are trying to get a fantasy-land deal, in terms of home price increases or money that same buyer ends up throwing at their eventual home, out of desperation and frustration. Don’t let your emotions be the ruler of your pricing or offer decisions. Motivation is one factor to consider, but the data on recent, comparable sales should be given much more weight, to keep the threat of price-related self-sabotage in check. 4. Cutting corners. Getting a home ready for sale is a marathon endeavor, not a sprint - especially if you’ve been living there for a number of years. Same goes for working on your credit, savings and financial plans in advance of making your first buy: smart buyers-to-be start years in advance. So, it’s tempting to get near the end of your preparation action plan, lose patience and start cutting corners on staging, property preparation, even vetting your own financials and family wants and needs. Don’t submit to temptation - well, don’t submit without the input of your agent and loan officer. Depending on your situation, there are some corners that might be okay to cut - the ones that will have very little impact on the eventual outcome of your real estate endeavors. But give the pros you ‘hired’ the opportunity to give you their input before you unilaterally skip steps on your original action plan. If you tell your agent you need to cut your property preparation budget down by a bit, they can help you decide where the corners you cut will have the least impact on your home’s overall presentation to buyers. If your loan officer says that paying a particular credit account down by $4,000 instead of $5,000 won’t really do too much to your qualification status, you might be fine kick starting your house hunt a few months before you had planned to. Unfortunately, it’s all too common to see homes where the sellers have poured cash into great, fundamental repairs and neglected some essential, inexpensive cosmetic items - or buyers who have fallen just a tad short on cash or credit and end up scrambling to boost one or both under pressure. Bring your professional team into the conversation before you cut any corners, and ask them to help you understand and minimize any consequences of cutting costs. 5. Failing to read documents all the way through. Hundreds of your signatures will be requested and required during the process of buying or selling a home. But perhaps the single-most expensive way real estate consumers stab themselves in the back is by failing to read and understand nthe documents they are given - from contracts to disclosures to inspection reports and even closing/loan documents - all the way through. Many a condo owner has been surprised to learn that they are being assessed a hefty special bill for common area repairs, when that “surprise” was predictable from a few of the hundred pages of HOA disclosures they received before closing escrow. Seller disclosures can be cryptic and boring, but also often contain red flags to guide buyers and their inspectors to the real areas of concern. (Their guiding power is nil if you don’t read them, though.) And the same goes for sellers - your agent should read and help you understand offer(s), buyer’s inspection reports and requests for repairs or credits, estimated closing statements and everything else, but ultimately you are responsible for reading and understanding all of these influential, binding documents before you sign them. So read them. And don’t be afraid to ask questions or insist on clarifications and corrections, if indicated. If you were quoted a certain interest rate or monthly payment, make sure that matches up to what you see in your closing docs - or that you understand and accept the reasons why it doesn’t, before you sign. This sounds obvious, but you’d be surprised at the major lender-borrower disputes and buyer-seller legal dramas that have arisen over the years because of errors in loan or closing documents that could have been detected and resolved simply, easily and inexpensively before closing. Don’t be one of them. ALL: How have you sabotaged yourself - or seen others do the same - in the process of buying or selling a home? Attribution: Published in Trulia 11/15/12 by Tara-Nicholle Nelson Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

Landscaping to improve your home’s value …..

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Wed, 16 May 2012 08:56:04 -0700

(Great article found at www.Askmen.com/Investing) If you're selling your house, it's what's outside that counts. Prospective buyers can’t immediately see what's inside, but one thing they will notice right away is your landscape. That same landscape can ultimately spark a buyer's interest or send them running in the opposite direction. The good news is that many landscape renovations are affordable and far from impossible. Not only will they enhance your selling opportunities, but they can also provide a significant investment return. As your property value increases, so does the return on your renovation investments. For landscape renovations, payback values can range between 25% and 75% of the original cost. Let's say that you spend $2,000 on a renovation that carries a 60% payback value. Initially, this means that you've added $1,200 to your property value, but if the overall home value increases by 80%, that $1,200 is multiplied by 1.8 (the existing value of your home plus the 80% increase), and the renovation is then worth a profitable $2,160. That said, don't rush out to start renovating without first being informed. Landscape renovations offer “curb appeal,” but in the current market, your neighborhood and the quality of the renovations are some of the most important factors at play. Make sure that with any renovation, you are thinking as a seller, because your taste might not reflect someone else's, and one bad choice could harm your investment. If you're stuck, an appraiser can assess your home's current value and share some ideas for improvement. Even though the market changes constantly and so do all of the numbers, a good landscape renovation will still help you sell. Let's talk about some specifics, including the following recipes for success: Deck Your $5,000 minimum investment = 50% to 75% payback Adding a new deck is one of the most lucrative expansions that you can make to increase your property value. A deck means added possibilities like outdoor kitchens, barbeques, fireplaces, and dining areas. If you are keen to build it yourself, you can benefit from a lower cost, provided that you can do a good job. If you're going to go through with it, the biggest issue for your deck isn't the price. It will be the maintenance, which depends on your choice of material. Wood looks nice, but it wears out relatively quickly, so the more durable hardwood and plastic wood composites are becoming increasingly popular. These alternatives bring the maintenance level down, but the costs go up. With a deck, concerns about safety often make sellers a bit anxious about building one themselves. A contractor will charge significantly more, and any extras like rails, chairs or arbors will add to the bottom line. Even so, if your deck has the right mix of quality and cost, it's worth having. New sod $200 to $600 minimum = 25% to 50% payback A nice lawn says a lot about the inside of your house. If your lawn isn't well maintained, people will make the same assumption about the house. So, why not buy a new lawn? If you're ready to maintain it, sod is your best choice. If you want to do your own installation, check that the ground is level and buy the sod wholesale to save money. Be careful, because a bad sod installation can cause you a lot of grief in repair and costly replacement fees. Those fees can be avoided with a pricier professional installation, and since sod lawn maintenance is inexpensive, a hassle-free installation is often the way to go. If you want to go further than sod, add a garden. If you're purchasing garden tools anyways, then you just need to decide on the flora that will best complement your surroundings. Rock gardens can be an inexpensive choice, while a garden arbor can add character to your garden. Garage $3,000 to $4,000 minimum = 50% to 75% payback As long as there is a suitable driveway, a new garage can make for an excellent addition. Especially beneficial in urban areas, you'll get the biggest bang for your buck from a garage in cities where traffic, parking and bad weather are common concerns. From a seller's perspective, it's vital that your garage be built for expansion and that it can accommodate at least two cars. A garage is multifunctional, as it can also be used as a storage shed, which is an attractive proposition for many buyers. Because of the various construction possibilities, you may prefer to hand off a project this big to a contractor, although the cost will certainly increase as a result. Planning is everything, and there will be questions of electricity, windows and ventilation to answer. You'll also need to purchase a permit before construction begins, as they're required for new garages in most areas. When all is said and done, the high investment will most likely provide a sizable return. Fence $2,500 to $3,000 minimum = 25% to 50% payback If you're not fenced in, you probably should be. Unless you're going all-out for a picket or chain-link fence, the financial rewards will far outweigh the risks. If you have plants and shrubbery, you may have to move them, but the fence will bring your greenery together, providing a common link for all of the elements in your landscape. The amount of vegetation will also determine the amount of ventilation that your fence will need. Whether you're selling soon or not, a fence will benefit everyone in the house. It's a safe enclosure for pets and children, and it will also draw more attention to your house. Speaking of safety, you may want to discuss the construction of your fence with your neighbors. Since it will border on their property, you can start by working out height and ventilation details for the fence. If that goes well, you can ask your neighbors to cover some costs, which will improve your profit margin even further. Trees and shrubbery$1,000 minimum = 25% to 50% payback If you don't have any trees or shrubbery in your landscape, you're doing a disservice to both your property value and your environment. Trees will increase your property value as soon as you plant them and they will continue to add value as long as you take care of them properly. An improvement in air quality is a great benefit, too. When combined with shrubbery, trees will reduce noise, provide a view from inside and across the street, and will add an unbeatable aesthetic quality to your property. The appeal of trees and shrubbery only works when you know how to keep them healthy. If you're starting from scratch, take the weather and wind patterns into account when arranging them. Check regularly for diseases and pests as the trees develop, and prune away any infected branches (or dangerous ones, for that matter). If they aren’t up to par, consider all of your options, including removal. Be prepared to pay for it though. Water features $500 minimum = 25% to 50% payback Given their popularity, swimming pools might seem like the ideal water renovation, but in fact, they can scare many buyers away. The biggest reason is due to safety concerns for families with young children. Safety doesn't bode well on investment returns, so with an average payback of only 10% to 40%, you're better off with the more lucrative options of ponds and water fountains. For starters, these two water features attract wildlife, which is usually a pleasant sight for new buyers. The sound of flowing water also adds tranquility to the landscape, so it's no wonder that more and more people are buying them up. Pricing is based primarily on size, with ponds being significantly cheaper than fountains. If you want both, they can be combined for the right price (some combos go for $6,000). Pond prices are right for a lot of people, and unlike fountains, they are usually installed without any assistance. If you are setting up your own pond, be prepared for some physical work, as it will require some manipulation of grass and rocks. That aside, a small pond comes with fewer safety risks than those associated with pools and it is a cost-effective approach for sellers who want to give some water back to their landscape. Think “curb appeal” and start outside …. Landscape renovations are just one way to improve the chances of selling at the right price, but they're more important than we might think. Sellers never get a second chance to make a first impression. Because of that, it's quite conceivable that all the interior upgrades in the world are for naught if the trees are sick, the lawn is discolored, and your house is the only one on the block without a fence. Just like any other home improvement, landscape renovations will require an investment of time and money, but because of their potential for financial return and added "curb appeal," don't be afraid to get your hands dirty. Resources www.qualityhomerenovations.com www.jimmessenger.com www.caroleboleman.com www.aicanada.ca www.costhelper.com - decks www.costhelper.com - Lawn www.costhelper.com - Garage www.costhelper.com - Fences www.costhelper.com - Trees www.costhelper.com - Tree removal www.landscapenetwork.com www.greensgardenfurniture.com www.workaholics.ca www.iii.co.uk www.handyamerican.com www.bellinghamherald.com www.artistree.com http://mccloskey.24.tripod.com www.cedarrim.com http://findarticles.com www.dispatch.com http://mccloskey.24.tripod.com www.askmen.comKen Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

Five Questions to Ask Your Mortgage Lender

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Mon, 30 Apr 2012 02:04:28 -0700

This article is right on the money. No pun intended! Home buyers and those re-financing their homes to take advantage of today's generational low interest rates need to read this. "Everyone knows you’re supposed to be proactive and assertive when you take out a mortgage, carefully collecting and evaluating all sorts of information before you make the biggest deal of your life. But when the mortgage broker starts shooting sheaves of papers (OK, PDF documents) at you, it’s easy for your eyes to glaze over at the sight of so many zeroes, and tempting just to start signing whatever it takes to get that house! Here are 5 questions every smart buyer (or refi-er) should add to the list of issues to cover with your mortgage professional: 1. Are you a bank, a broker, or both? Generally speaking, mortgage lenders that are banks or have their own banking divisions (which many reputable brokerages do) have more control over the appraisal process, including the ability to submit your file to a pool of appraisers they know have some knowledge of your local neighborhood. Given the fact that non-local appraisers and the inability to communicate with appraisers under relatively new guidelines for brokerages are responsible for killing loads and loads of deals, working with a company that is or has a bank could be a deal-saving move, especially if the property is in an area that hasn’t had many recent sales or is otherwise challenging to appraise. Also, some broker/banks that originate loans and sell them straight to Fannie Mae or Freddie Mac under the FHA loan programs offer the same benefits of an FHA loan - low down payment and moderate qualification guidelines - without the “overlays” imposed by some larger banks, which actually place a more restrictive set of guidelines on FHA loan programs. For example, FHA guidelines do not impose a minimum credit score, but many banks overlay their own 640 minimum FICO requirement. Broker/banks that sell straight to Fannie and Freddie often mirror the FHA minimum guidelines precisely. Finally, brokerages with their own in-house bank and a large roster of lenders and programs provide the advantage of offering a wider range of fallback options than plain old banks or plain old brokerages - Plans A, B, C and D, if you will - which many borrowers need these days, in the (increasingly common) case your first choice bank or loan program doesn’t work out. 2. Will you explain my Good Faith Estimate to me? May I also have a fee sheet or estimate of funds to close? The current, national standard Good Faith Estimate (GFE) is pretty clear, clarifying all sorts of deal points, from the broker’s commissions to the costs associated with the loan, but as a point of customer service, you should ask your mortgage pro to explain it to you (if they don’t do so under their own initiative). The one shortfall of the the latest edition of the GFE is that, while it clearly shows the costs associated with a particular loan scenario, it does not always show so clearly the actual amount of funds you’ll need to close the transaction (which might be more or less than those costs)! So, ask your mortgage representative to prepare a fee sheet or an estimate of funds to close as early in the transaction as possible. 3. How long will it take to close my loan? How much time will I need for loan and appraisal contingencies? The time frames for closing your mortgage - which often drive the time frames for closing your home purchase - often vary widely depending on the type of loan and even the type of lender you work with.(Large bank loans originated by the bankers who sit inside the branch are notoriously slower to close, on average, than loans originated by brokers.) Similarly, the time it takes to get through the FHA loan appraisal and underwriting process might be much longer than it would take, all things being equal, to clear those hurdles and remove your loan and appraisal contingencies on a Conventional (i.e., non-FHA) mortgage. When you first meet with your prospective mortgage pro, talk with them about these time frames, so they can help you set realistic expectations and insert realistic time frames into your offer when you make it, to minimize the drama of a contingency clock that ticks way faster than your mortgage process. 4. Are there any fees for the mortgage loan application/approval process? Some lenders charge for credit checks up front, and most require that you pay for your appraisal in advance (although the latter happens only after you find and get into contract on your property. One of the first questions you should ask, when you sit down with a new mortgage broker is how much cash you’ll have to come up with just for the privilege of having them run your application and take the first steps down the road to loan approval. 5. How long have you been originating loans? And how long have you been with your company? Mortgage pros who have been around for a long time have the knowledge of advance troubleshooting, workarounds and backup plans, and the current underwriting practices it takes to get a loan closed in this restrictive mortgage market. If you found them in some way other than a referral, you can even ask for references from a few clients. Most mortgage pros who have been in business for awhile will be able to give you names and numbers of clients they’ve worked with on multiple purchases and/or refis: that’s a very good sign. You’ll rest a lot easier if you know that your loan is in the hands of a seasoned pro who others like you trust with their largest asset - and largest financial obligation. Please let me know if you have any questions, or if you need more help. And, congratulations on starting your new job tomorrow.Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

5 Real Estate Rules of Thumb: Fact or Fiction?

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Fri, 23 Mar 2012 04:19:13 -0700

"We humans have a natural craving to simplify the complex. This same instinct, which explains why legends, films and fairytales from every culture tend to boil down to heroes vs. villains, also explains why so many buyers and sellers desperately seek rules of thumb for making the often scary, rarely simple decisions they face. Reality check: your real estate transaction is not a children’s story. Grown-up life is complicated, as are money matters and relationships. Since real estate involves all three (being a grown up, money and relationships), smart buyers and sellers should cast a suspicious eye at super simple real estate rules of thumb. Let’s take a handful of the most persistent ones head on, and decipher which of them are fact, and which are fiction. Rule of Thumb #1: Location, location, location. Fact or Fiction: Fact. One of the elemental truths of real estate is that almost everything can be changed about a home - except its location. By the same token, location is essential to our ability to afford and enjoy living in a place, given that it impacts everything from: · where our children go to school (and whether or not we have to pay for it), · our safety, · the beauty, quiet and convenience of our surroundings and · the recreational, shopping and cultural options which do - or don’t - become part of our daily lives. Location impacts whether you hear train tracks or birdsong in the morning, whether your neighbors bring you cookies or bring you drama when you move in - it can even impact your career and job prospects. The deep, numerous impacts of where we live on our experience of a home, in turn, give location a powerful role in driving whether we can resell our homes - and for how much. The critical importance of location is one real estate rule of thumb that grows more true over time. However, the specifics of what makes a location desirable have and continue to evolve rapidly. For example, urban homes with super-short commutes to bustling job centers have grown more and more interesting to buyers as their prices have come down and gas prices have gone up. Rule of Thumb #2: It costs more to buy than to rent your home. Fact or Fiction: Depends on where you live. Just today, Trulia released its latest Rent vs. Buy study, showing that in 98 percent of American cities, it's actually less expensive to buy a home than it is to rent! Of course, the type of home you might want to buy could be pricier than what you’d be satisfied living in as a rental, and buying a home requires an upfront chunk of dough (i.e., down payment and closing costs) that renters don’t have to come up with. But the age-old would-be buyer objection that “I can’t afford to buy a home” is now frequently shattered by the reality that when you take all things into account, buying a home at today’s prices and interest rates can actually cost the same or less than renting at today’s relatively high rental costs in many areas. That said, if you live in San Francisco or New York City, chances are good that it does actually cost more to buy than to rent. But if you live elsewhere, it behooves you to actually do the math, factor in the massive tax advantages of homeownership and see which is truly more expensive for you. And make sure your decision accounts for the massive opportunity costs you might incur if you don’t take advantage of today’s prices and rates to buy a home of your own and start building equity - something you can simply never do as a tenant. Rule of Thumb #3: List it high, to give yourself bargaining room. Fact or Fiction: Fiction. The fact of this matter is that if you are selling a home in a strong buyer’s market, your competition is steep. The home that presents the best value for the price is the one that is the most likely to sell. Listing your home higher than what you know it’s worth is a surefire way to alienate that relatively rare specimen: a qualified buyer with a sense of urgency who might otherwise be interested in making an offer on your home. Smart buyers who are ready to leap off the fence into homeownership do their research, and may have seen dozens - even hundreds of online listings before they make an offer. If your home is overpriced, chances are good that they’ll pass your home up, even if they like it, waiting for you to get a clue and cut the price. There are simply too many other great homes at great prices on the market. Overpriced listings are much more likely to be a source of prolonged stress and handwringing to their owners than a source of successful sales. If you're tempted to list your home high, there’s something else you need to be aware of: the sweet spot phenomenon. Homes that are listed too high sometimes go through one, maybe even several, price cuts before they hit a sweet spot - the price at which buyers are drawn to the value like moths to a flame, sometimes even generating multiple offers over the discounted price (but below the original list price). Here’s some good news: you don’t have to wait months and months and go through the agony of showing upon showing and price cut upon price cut to get your home’s list price to the sweet spot where it sells. Work with a local agent who has a strong, recent track record of selling homes, quickly and at or near their list prices, in your area. Then, trust their pricing advice. (You might find it easier to trust them if you select your agent after speaking with several.) It’s the most efficient way to leverage local market expertise to get to your home’s pricing sweet spot, quickly and with minimum drama. Rule of Thumb #4: Always offer 10% below the asking price. Fact or Fiction: 100% baloney. I mean fiction. Few decisions in real estate are so nerve-wracking as that of how much to offer for a home. These days, we search online for comparables, try to flesh out their similarities and differences between those homes and our target property, run some more numbers - there might even be a spreadsheet or two involved. We ask our agent to talk with the listing agent, get a feel for the seller’s motivation level and figure out whether there are any other offers, then try to factor the competition level and any credits or bank involvement into our thinking. We touch base (again!) with our mortgage broker to understand how rates have changed since our last conversation and exactly what the monthly payment will be if we offer X or Y or Z. And at the end of all that, buyers often still feel like the final decision about exactly how many dollars and cents to offer for their home amounts to something like licking their finger, sticking it into the wind, and just picking a number. And that just seems wrong, for a decision so important. So it’s no wonder that one of the most frequently asked questions I personally receive is the request for the perfect rule of thumb of how much below asking a buyer should offer, given today’s market dynamics. My answer is now what it always has been and will be: sorry folks - move along - no rule of thumb to see here. Every state, county, city and neighborhood has a different dynamic - as does every listing. Every seller, bank or individual, has its own particular motivations, situational constraints or influences (like how much they owe on the home, or the need to split proceeds between divorcing or sibling co-owners) and thought processes. If the seller feels they listed the place at an uber-low price, they might respond very differently to a particular offer than a seller who gets the same offer, but felt like they were building cushion into the list price. If the home is in a neighborhood where most homes sell for more than the asking price, or the property has multiple buyers vyying for it, even a full-price offer might get laughed at. Long story short - the specifics of each listing’s situation absolutely must be taken into account when deciding how much to offer, along with the comparable sales data and the buyer’s own (a) financial concerns and (b) motivation level for getting the home. Rule of Thumb #5: Listing your home as a FSBO will save you some dough. Fact or Fiction: Fiction (with the occasional exception). I know some will argue this point, but the data is unequivocal: homes listed for sale by owner (FSBO) simply sell for less than similar homes listed by agents. From my own observations, I’d also argue that FSBO listings often simply don’t sell at all, and many end up listed by an agent after wasting months and months of the seller’s time. The fact is, listing your home for sale by owner might save you the commission you would otherwise have paid to a listing agent. But the FSBO sellers who are successful generally do offer to pay the buyer’s broker’s commission, so the prospect of saving the full 5 or 6 percent agent commissions is more realistically the prospect of saving 2.5 or 3 percent. Beyond that, the smartest FSBO sellers also often end up: paying a limited service broker to list the property on MLS, paying for an attorney to assist them with the disclosures and contracts involved in the sale, all services that are frequently included in an agent’s services. And even those FSBO sellers still forgo the objective pricing advice and marketing expertise that a good, local listing agent would bring to the table, all included in the commission. Fact is, many sellers who don’t hire an agent, but do cobble together a similar level of professional services and account for their own time spent on a FSBO listing, soon see that they’re not actually saving much money at all. And even those who think they can save soon see that there’s no savings if the house doesn’t sell - a common fate of FSBO’s on today’s market. Sellers who already have in hand a buyer who is ready, willing and qualified to buy their home are the best suited for selling by owner, with the help of legal, title and escrow professionals, in my opinion. Most others should at least talk to several agents, discuss whether there’s any flexibility on commissions and be honest about what the prospect of marketing, preparing and selling the home DIY would really look like, before assuming that they’ll save a ton of dough by listing it FSBO. All: What real estate rules of thumb have you heard? Did any work for you, or prove to be completely off-base? Do tell!" Re-blogged from Trulia article by Tara-Nicole Nelson Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

How to Find an Agent You Love

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Thu, 15 Mar 2012 02:35:49 -0700

Re-blogged from Tara-Nicole Nelson, Trulia "My adventures in business of late have caused me to believe that, contrary to popular opinion, many entrepreneurs and companies are inspired to do what they do out of a passion for their customers. I'm also aware that the feeling is not always, or even often, mutual. In a recent survey, only 20 percent of Americans said they trusted real estate agents as a profession. But here's the good news, for buyers, sellers and agents: though people seem to distrust agents as a group,nearly 90 percent of buyers and sellers liked their individual real estate agent enough to say that they would work with them again! Your relationship with your real estate agent should ideally be a very intimate one. First off, they represent your interests on the most financially and otherwise impactful transaction most of us will ever undertake. But in a best case scenario, they can and will also learn your personal hopes and dreams, your very personal financial information, your family’s private way of living and lifestyle needs and even often your intepersonal relationship dynamics so they can fold all these considerations into their work to help you secure the right home at a price and on terms that work for you for the very long term. For this to happen as holistically as is ideal, you need a relationship of deep trust with your agent: trust that they’ll keep your confidences and trust in making your decisions in part based on their advice and expertise. Plus, with house hunts stretching out for longer and longer, you’ll be spending a ton of your off-work hours with this person. So ideally, you'll work with an agent you love spending time with! So, let’s cover a few key steps for finding an agent that you trust, respect and ultimately love. 1. Get referrals to agents whose clients love them.We live in a digital era, and there are all sorts of ways you can harness the power of technology to manage your real estate matters. But when it comes to the relationship issue of finding an agent you'll love, your best resources aren't technological: they're human. Ask the people you know - friends, family, colleagues, the people at church or temple or soccer - what local agent did they work with when they bought or sold their home? Then dig a little deeper - were they buying or selling? When did they do their deal, and what was their experience like? Did they like their agent? Were they trustworthy? And most importantly: did they love their agent enough that they would work with them again? If yes - what was so lovable? There's no reason you have to do this completely low-tech, though. Post your agent referral request on Facebook, if you don't mind letting your world know that you might be in the market - or peruse agents listed on Trulia and click on their profiles to see whether any of your Facebook friends have already written a recommendation or review of their services. (Note: this feature is relatively new, so it's not usually a bad sign if an agent has no Facebook recommendations on their Trulia profile - but it's a great thing if they have good ones.) If you're moving to an area where you don't know anyone, or no one you know has an agent they give rave reviews, look to the recommendations feature on Trulia and to communities like Yelp! and Angie's List and see what agents people there are raving about. 2. Scope out how they engage online.Once you have a short list of agents whose past and current clients love them, spend some time scouting out their online and social media presences: Check out their Facebook pages, websites and blogs to see whether and how they provide educational or neighborhood resources in a style that resonates with you. See if they are active in discussions or answering buyer and seller questions in online communities like Trulia Voices. If they are, that by itself should win points, as agents are very busy, so taking the time to engage with consumers on these sorts of channels shows an above-and-beyond commitment to their professional practice. Beyond whether or not they are active, look at how they are engaging with buyers and sellers like you online. Do they answer the questions being asked, with clarity? Do they appear to offer insight on local market dynamics or practices that are standard in the areas you'll be house hunting or selling? This may give you some insight into how these agents will interact with you or handle your questions, if you decide to work with them. 3. Look for a comparable and compatible agent.If you've read this blog much at all, you know that I frequently encourage buyers and sellers to pay attention to what we call the "comps" - recent sales of similar homes in the area around the property they're looking to buy or sell. When you're in the market for a real estate agent, though, consider looking at the agents and their backgrounds through a similar lens. Look for agents who have strong experience and can, ideally, provide references to past or current clients in comparable situations to yours. If you're looking to sell your home via a short sale, look for agents and references with that background. If you want to buy an REO, discuss with your prospective agents whether they have had experience representing buyers on foreclosure listings. The more similar the references' situations were to yours, the more easily you'll be able to trust that your agent has your own situation covered. Beyond the comparability of their past experiences to your own upcoming transaction, compatibility is also key. When it comes to compatibility, don't take shortcuts like assuming you need an agent whose demographics are just like yours - that's a surefire way to miss out on some agents who might take your best interests very seriously. I've seen young agents work well with retirees, and 30-something newlyweds buying their first homes instantly, deeply trust the experience of their Baby Boomer agent. Finding an agent with whom you are compatible is more an issue of communication styles and logistics. There's not necessarily a right or wrong way for an agent to communicate with clients, so long as it's honest, prompt, clear and competent, but it is important that you work with an agent who communicates in ways that work with you. If the agent is vocal about not liking to text or email much, but those are tools you tend to use all the time, proceed with caution. And vice versa - if you get quick responses to your calls, texts or emails at the "dating" stage, that portends well for the future of the relationship. 4. Tease out their track record. Particularly if you're looking for an agent to sell your home, it's critical to get at their track record of success. This should not take much detective work - you can just flat out ask the prospective agent. In fact, many agents will proactively offer you this information when they come to a listing appointment with you. Just in case, when you make appointments, ask the agents to come to the meeting with information about things like: the percentage of their listings from the last year that have sold the average number of days one of their listings stays on market before it sells (DOM) addresses, list prices and sales prices of listings they've recently sold, and if you suspect your home might sell for less than you owe on it, the details of the most recent short sale transactions they've brokered. Buyers, Sellers and Agents: What other questions should savvy agent-interviewers ask? Please share in the comments. 5. Connect and listen. The next step is the most basic and possibly the most important: sit down with prospective agents at their office, your home or a coffeeshop and spend an hour getting to know them. Beforehand, make a list of your questions, your values, your priorities and generally the vision of your life you're trying to create by virtue of doing this transaction. Spend some of the hour going through those things, but don't forget to spend some time just getting to know the agent on an interpersonal level and listening to what they have to say. Then listen to your gut. Based on the totality of the information you now have, is this someone you want to spend hours and hours with? Is this agent someone you feel you can trust? Don't discount your gut-level instincts on this score. Yes, buying or selling a home is a business transaction, and it's critical to have someone with the competence and expertise to get your deal done. But it's also a very personal matter, and one which will require you to make a series of tough decisions over an extended period of time, based at least in part on the advice of the agent you choose. On some levels, finding an agent you love poses a chicken-and-egg conundrum. If you trust them up front, you'll be more likely to follow their advice, which (if their advice is sound) positions you for the sort of successful outcome that will make you love them even more! If you don't have that trust up front, it's more likely that you'll blow their advice off when it comes to the hard things like dropping your home's list price or increasing your offer price - things that seriously impact the success of your transaction, your satisfaction with the property and your overall financial situation for years and years to come. These steps will help you stack the decks in your favor of starting out the transaction and the relationship with as much trust as you can." And, remember that if you're looking for an agent that you can love in Spring, Tomball, Cypress, The Woodlands or Houston, Texas, please consider me. Do your research on Google, HAR.com and my website at www.KenHunterREALTOR.com. I'm Ken Hunter and I'd like to be your REALTOR. Thank you. Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

6 Keys to Having a Zen Home Buying Experience

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Fri, 09 Mar 2012 09:18:13 -0800

Re-blogged from Tara-Nicole Nelson, on Trulia Your home is the largest purchase you’ll ever make. So it might seem that emotional side effects like panic and fear are inevitable. But they’re not. You do have the power to manage your emotions and have a relatively blissed-out home buying experience. And you should seize that power; doing so will not only minimize the discomfort, it will also keep panic and fear from fouling up your decision-making. Let me hand you some keys - the keys to having a Zen home buying experience: 1. We fear what we don’t understand. Buying a computer, a TV, even a car – these things aren’t super scary, in part, because we do them repeatedly. But we buy homes much less frequently, and the transactions are much more complex and filled with jargon that is essentially unintelligible to all but those who practice real estate for a living. On top of all that, the mistakes we stand to make when buying a home, from buying a lemon to taking the wrong mortgage, hold the potential to devastate our lives and our finances for years to come. No pressure. The things that create the most fear and panic in a real estate transaction are the things that we don’t understand. Similarly, conflicts, questions and concerns that remain unspoken to your spouse, your agent or your mortgage broker also hold the potential to create deep anxiety and evolve or erupt into serious problems down the road. Zen homebuyers are the ones who tend to start educating themselves months, even years, in advance by reading books, frequenting smart personal finance sites, visiting open houses, scouting neighborhoods, and asking questions on discussion boards frequented by experts and fellow consumers. They also educate themselves intensively throughout the process by reading their mortgage, contract, disclosure and inspection documents all the way through and systematically ask the relevant professionals to answer every single one of their questions. This question-asking piece can be tough for both the timid, and those used to being the expert. But if you want to minimize your home buying stress, give yourself a gentle shove out of your comfort zone and decide to be willing to readily admit what you don’t know and assertive about insisting on answers. 2. Ask - and allow - your experts to manage your expectations. I’ve found that buyers tend to experience real estate as an emotional rollercoaster when they (a) start out with unrealistic expectations or (b) resist the expectation management their brokers, bankers and agents are trying to dole out. There is a lot of education you can get from books and the web, but when it comes down to the nuts and bolts of making your offer on your home, and anticipating the details of your escrow and moving experience, you should look to your own local agent and mortgage sherpa to help you understand things like: · the range of outcomes that might result from your offer, · how long to expect things to take, · when to expect to bring cash in – and how big of a check you should expect to write, each time, and · when you’ll need to take off work to come sign things in person. Books and news sites don’t offer the level of detail and local specificity for the nitty-gritty of what you need to know; as well, they also pose the danger of overwhelming you with a fire hose of information, when what you really need as you get into a transaction is knowledge: specific answers to questions you actually have or issues you are likely to personally face. Don’t just look to your local pros for expectation management and answers, though, listen to them. 3. Shatter the 8 ball. In any market climate, you are at a negotiating disadvantage if you have an urgent deadline for buying and moving. But in today’s market, when deals are taking just about ever to close, having a deadline doesn’t just put your in an inferior bargaining position - it will drive you predictably crazy! There are literally hundreds of moving pieces to a real estate transaction, any of which can cause things to fall behind. Your appraisal can come in too low, your inspector can recommend you have a specialist come do another inspection, your lender’s underwriter can take longer than expected, and so on and so forth. When you are under the gun because you have to close by a certain date keep your interest rate locked, you don’t have enough cash to cover the differential in closing costs if you close at the beginning of next month vs. the end of this month, or because you plain old have to be out of your old place by a certain deadline, every one of those moving pieces and steps in the transaction will become loaded with a disproportionate amount of anxiety. (And you may become tempted to make unwise decisions just to get the transaction moving!) Neutralize the drama-driving potential of all these potential timeline tripwires by getting out from behind as many timing 8 balls as possible and injecting breathing room as many places as possible. Talk with your mortgage broker about extending your rate lock, stuff your cash cushion with as much fluff as possible, plan on some overlapping weeks – even a month – where you can be in your old place and your new one. I can vouch: minimizing your home buying time pressures will maximize your Zen. 4. You’re exceptional, but you’re probably not the exception. Your decision to buy, your work at saving and sprucing your credit, the hard work of wading through all those homes and making the hard decisions about when and where and what to buy, your brilliant taste in real estate blogs (!) – all these things indicate that you are an exceptional person. But don’t expect to create or to be the exception, or be immune to the predictable irritations and glitches of buying a home on today’s market. Short sales take a long time. Underwriters sometimes request the same document what seems like a dozen different times. Sellers tend to take the highest qualified offer they get (even when that buyer is nowhere near as beautiful and brilliant as you!). With that said, it’s entirely possible that you will have a super smooth transaction or the shortest short sale ever. In fact, that is my hope for you. But if you go in expecting to be the exception to these rules of thumb, there’s a good chance you’ll be upset over and over again by things that are completely predictable and, thus, create no need for dismay. On the other hand, if you expect glitches, delays and the like, your emotional experience of the transaction will likely be smooth, even if the transaction itself contains the now-normal bumps. 5. Cultivate clarity. One extremely common cause of emotional chaos during home buying is the sense that things have spiraled out of your control. Many buyers express feeling that what started out as a very personal vision, dream or aspiration for their lives, their finances and their families is now 100% controlled by banks who don’t care about them or professionals who don’t intimately understand your wants and needs. It’s true that not everything in your transaction is within your control, but many things are – and that’s where you should focus your energies. If you start preparing to buy months, even years in advance, by saving, working on your credit, getting referrals to professionals that you feel you can really trust and such, you are much more likely to end up with a home and outcome that satisfies your lifestyle and financial needs. You can also optimize for this by writing out a clear vision statement for your post-buying daily life and your personal finances before you ever meet with a real estate agent or mortgage broker, so that you can walk into those meetings and clearly communicate your wants, needs, and what is and isn’t important to you. That makes it much more likely that you’ll get your needs met and minimizes the chances that your transaction will become derailed from your original intentions. 6. Manage your own mindset. The list of freak-outs that are common in the emotional landscape of the homebuyer is quite a long one: · the fear that the seller won’t take your offer, · the fear that you’ll pay too much, · the fear of surprises, · the fear of mortgage glitches, · the fear that the seller’s bank won’t sign off on the short sale, · the fear that the home of your dreams will turn out to have a bunch of problems, · the fear that the appraisal will come in low, · the fear of buying into a declining market, · buyer’s remorse, and the list goes on. Ultimately, only you have the power to be the manager of your mindset. Get educated about the full range of things that may happen and plan accordingly, but avoid mentally dwelling on or worrying about hypothetical disasters and worst case scenarios. Learn what things are and are not within your power to control, and decide up front that you will not fixate on or stress about the things that are not. For example, you can control what you offer or whether to house hunt for short sales; you cannot control whether another buyer offers more or whether the seller’s bank green lights the short sale. If you do get a curve ball thrown at you, take a deep breath, consult with your experts and make the decision that best serves your personal vision and priorities. Then, don’t look back! Re-blogged from Tara-Nicole Nelson, on Trulia Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

Short-sale Help for First Time Homebuyers

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Tue, 06 Mar 2012 05:44:44 -0800

Many people in the market today are first-time home buyers who would not have been able to buy when home prices were higher. Enticed both by lower prices and bank promotions, these eager hopefuls are have taken the signs of deals as the best chance to make their first real estate move . While all home buyers need help with the short sale process, it’s especially challenging to address the needs and concerns of a first-time home buyer who has decided a short sale is the home for them. Here’s how to get answers to first-time home buyers’ top three questions about short sales. 1. How long does it take for a bank to approve a short sale? This is the million-dollar question. While it takes an average of three to six months, the timeline – and the process – vary quite a bit from one bank to another. Short sale approval timelines depend on the bank (some just take longer than others). While each bank has different short sale guidelines, the short sale has to make sense to the bank. The more sense the short sale offer makes to the bank, the faster the approval process. Here are some things that slow down the process by several weeks or more – these usually involve more people or more factors: · Multiple liens on the property · A third party negotiating the short sale on behalf of a seller. Some states allow third parties to do this, for a fee; some states, like Virginia, limit this to real estate licensees, attorneys, and employees of attorneys. · Private Mortgage Insurance (PMI) on the property · Additional investors Action: To make an accurate prediction about the short sale timeline for a particular property, research the bank’s general timelines, the property’s liens, and whether there is PMI before writing the offer. 2. Will the bank make repairs to the property? The short answer is, probably not. Here’s why: · The bank does not have possession of the property and has no authority to make repairs on behalf of the seller. · Many short-sale sellers do not have the financial means to make repairs. · Many banks require the short sale to be sold strictly “as-is” and do not allow the seller to pay for any repairs. Why wouldn’t a bank allow the seller to make repairs? your buyer may ask. A short sale is a sticky situation for a bank, and that the bank wants to avoid potential liability. For example, if the bank allowed the seller to make repairs and the repairs proved to be faulty, the buyer might potentially hold the bank liable, since the seller doesn’t have money (which is how the short-sale situation came about in the first place). Action: Find out how the bank and the seller feel about making possible repairs. A short-sale buyer needs to understand that the home will most likely be sold strictly “as-is” and all repairs will be at their expense. 3. How do other types of debt affect the short sale outcome? Many short-sale sellers are more than just “house-poor.” Many have additional debts that place a cloud on title. These include tax liens – income and property, medical liens, mechanic’s liens, and child support judgments. Depending on your state, some creditors can try to collect debt by going to civil court and getting a judgment lien placed on the property against the homeowner. These liens must be cleared before the short sale transaction can be closed. · Surprisingly, tax liens are probably the easiest to clear off the title. The IRS has several avenues to collect back taxes, and doesn’t want to become a real estate holding company. Removing a tax lien can take up to 120 days, so it is imperative that this process is started well in advance of the short sale. · Medical liens can usually be negotiated and a payment plan worked out. However, this is a time-consuming process and needs to be started as soon as possible. · Mechanic’s liens are a little harder to get removed. There is not much recourse for tradespeople and bad debts. · Child support judgments are also difficult to remove because they usually involve government agencies. In short, additional debts can tie up the short sale process. Action: Make sure to ask the listing agent if a preliminary title search has been performed on the property so you can advise your buyer about possible obstacles. The more information you can offer your first-time home buyer, the more confident they can be about the transaction. The more confident they are about the transaction, the more likely they will see the transaction through to the closing table. Re-blogged from Trulia.com article created by Sarah Stelmok, ABR, GRI, e-ProKen Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

6 Ways to Turn Off Your Home's Buyer (or Seller!)

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Thu, 09 Feb 2012 05:39:38 -0800

6 Ways to Turn Off Your Home's Buyer (or Seller!) In the wild world of dating, when you encounter a “turn-off,” you can just pack it in and not to go on another date with that guy or gal again. But turnoffs can be much more detrimental when they come up in the realm of your real estate goals. Indeed, turn a buyer off, dear sellers, and you risk not selling your home - period - or getting a lower price than you might have otherwise. And, contrary to what you might assume, the same goes for buyers. Even in today’s ‘buyer’s markets,’ multiple offers do happen. And even in cases when you’re the only buyer on the scene, having a cooperative seller goes a long way toward everything from getting access to the place for inspections to getting a price reduction when the appraisal comes in low. Thus, the potential still exists for buyers to turn sellers off, and risk having their dream home slip right through their fingers.As you proceed on your quest for drama-free real estate, factor in these frequently occurring gaffes that turn off buyers and sellers, and my tips for avoiding them.Top 3 Ways to Turn a Buyer Off: If you’re a seller courting buyers, here are 3 faux-pas to avoid:1. Hanging out when buyers are viewing your home: Buyers stalk properties online and off, checking obsessively for price reductions and the like. But buyer-side home stalking is unobtrusive to sellers. On the other hand, buyers can feel personally stalked and stifled in their ability to fully explore or verbally process their impressions of a home when you, seller, hang out inside your home while it’s being shown. As soon as a buyer sees you in the house, it instantly becomes much more difficult for them to” (a) envision themselves living there (it’s your house, after all), (b) be comfortable opening up drawers, closet doors, etc., and (c) express their thoughts about how this house might be exactly what they’re looking for, if they can knock out that wall and get rid of those cukoo murals you so lovingly painted in your children’s rooms.Sellers: If you want to sell your home, it’s best to not be around when buyers are looking. Give them some breathing space and a chance to truly walk around and consider what they like and/or dislike about your home without lurking and looming (and, let’s be real - eavesdropping) nearby.2. Showing a messy house: Life gets hectic, and it’s easy for things like laundry, dishes and other house cleaning tasks to fall by the wayside. It’s also difficult to keep the home in which you and your 4 kids, 3 gerbils and 2 Labrador Retrievers live perfectly spotless for months at a time, while you’re waiting for an offer. But when you decide that you’re going to sell your home, it’s imperative that you make a pact and a plan with yourself and your family that the place will be in tip-top shape when buyers come knocking. Remember: your home is competing with dozens of others, as well as with buyer’s HGTV-infused visions of what their next home should look like, so first impressions really count.Sellers: Stuffing the closet is not the answer. (Buyers will be opening that closet door, after all.) Pack up your personals like you were moving (best case: you are), and put all but the essentials in storage, if needed. Get the carpets cleaned, do the dishes, make the beds, mow the lawn, dust, sweep and mop. Ask your agent to give you a gut check on whether your idea of clean is clean enough (better yet - ask them for the number of a house cleaner who you can engage to get the job done to showable standards). This might all seem obvious, but agents and buyers alike are constantly amazed at the condition of some of the homes they walk into. Take my word for it; I’ll spare you the ‘ewww’-inducing stories.3. Overpricing your home: Buyers already have lots to do before making the largest purchase of their lives. They have to wrangle their finances into order, jump hoops to qualify for a loan, collect the cash for down payment and closing costs, and invest sometimes hundreds of hours into market research and house hunting. With all of this already on their plates, the prospect of trying to negotiate down a crazily high asking price is just too much work (and too outside their comfort zones) for most buyers to deal with. The average buyer won’t even bother looking at your home if the asking price is clearly high and off base compared with other similar, nearby homes for sale; they’d rather sit tight and wait.Sellers: Price to sell from the beginning. Work with your agent to determine a price that is supported by the data on how much nearby homes have recently sold for. You’ll save yourself a lot of time and anguish and get a lot more legitimate bites from serious, qualified buyers.Top 3 Ways to Turn a Seller Off: Buyers, if you want a home’s seller to play ball, best practice is to avoid these 3 pitfalls:1. Unjustified, extreme lowball offers: It’s no secret that buyers have the upper hand in many markets right now. (To be clear, I said ‘many’ - not ‘every’ - your agent can help you understand what the dynamics are in your market.) But let’s be realistic, here. No seller can afford to give away their home at a price far below what it’s worth on today’s market. Lowballing a seller at a price far below the recent sales prices of similar homes in the neighborhood on the ‘let’s-take-a-stab’ plan, is highly likely to turn them off. And that, in turn, will cause the seller to view your offer - and you - as disrespectful and wasteful of their time. Not only will they turn down your offer, but they may not even bother with a counteroffer, rendering your efforts at securing that particular home dead in the water.Buyers: Review the recent sale prices of similar homes in the neighborhood (aka “comps”) with your agent before you make your offer. Also, ask them to help you factor in other market data, like the average list price-to-sale price ratio and the average number of days neighborhood homes stay on the market. It’s all right to come in lower than asking, if the market data supports such an offer; just be sure your offer is based on reality - and not your fantastical hallucination about scoring the bargain of the millennium.2. Buyer-side mortgage fails: Plenty of employed buyers with decent credit and cash in the bank have been turned down for a mortgage these past few years. That means buyers can’t assume (a) that they’ll be approved for the amount of loan they need to buy the house they want, or (b) that they’ll be approved for a loan at all. Your inability to get approved for a home loan can create all sorts of problems not just for you, but also for your home’s seller. The average seller’s worst case scenario is that they accept your offer only to find out a few weeks, or months, later that you can’t get the loan you need to close the deal. Buyers: It’s not overkill to start working with a mortgage professional as far as six months or a year in advance of starting your house hunt to get pre-approved for a loan. Make sure you get a clear understanding of the amount you qualify for, then work with your real estate agent from there to determine the price range you should house hunt in. And whatever you do - don’t buy a new car, open new credit cards or even change your line of work before your escrow closes, unless you consult closely with your mortgage professional before you make that move.Tip for Sellers: Work with your agent to vet buyers before you sign a contract. Factor in their down payment and earnest money deposit, and feel free to counteroffer these items, not just the offer price. It’s not overkill to have your agent contact the buyer’s mortgage broker to see how reliable the buyer’s pre-approval really is.3. Bashing the seller’s home: Home bashing happens when buyers start bad-mouthing (aka “trash talking”) the place and/or the neighborhood in hopes of getting a lower asking price. Examples: pointing out all the foreclosures in the area, saying the house down the street just sold for much lower than the asking price on this house, saying you’ll need to rip out the entire kitchen before you even consider moving in - saying any of these things to a seller who happens to be at home during the showing or the inspection is probably one of the fastest ways to turn them all the way off. Buyers: Bad-mouthing a house or neighborhood won’t work to get you a lower price. Instead, it only serves to irritate the seller and motivate them to come up with all sorts of reasons why they shouldn’t sell their home to you! Remember: homes hold incredible emotional experiences for owners. Make an offer you’re comfortable with and keep the negative comments to yourself. If there are legitimate, factual reasons underlying your decision to make an offer at a price the seller might see as a lowball, ask your agent to respectfully communicate those facts to the seller’s agent.Buyers, sellers, agents: What are the biggest turnoffs you’ve encountered during home buying or selling? Reblogged from Tara-Nicholl Nelson's Blog on Trulia.comKen Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

10 REASONS NOT TO STAGE YOUR HOME

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Tue, 07 Feb 2012 03:05:59 -0800

This is a must read for Sellers and their agents! Word to the wise! The housing market today is much more competitive, many more homes from which to choose. But, homes that are properly prepared for the market and well-priced will sell much faster; and may even bring multiple offers. 1. We want to test the market for 90 days. And on the 91st day? Price reduction--and 90 days worth of potential buyers who have already eliminated your property. 2. It costs too much money. I have never seen a home where the staging costs would have exceeded the first price reduction. And that doesn't even factor in the monthly carrying cost of the home. 3. We can't stage the house, we're living in it. One common misconception is that staging is only for vacant homes. Every home/condo can be staged, and you can actually live in it after staging. 4. We didn't have to stage any of the other properties we sold over the years. Yes, once upon a time you could generate three offers by 5 p.m. on the same day your Realtor put the For Sale sign in your yard. Not now. Buyers are picky and they have a lot of homes to choose from. 5. Everyone loves our house so buyers will love it, too. What you, your friends and relatives love about your house may not be what today's buyer wants. Sellers are often baffled by the feedback they get after showings--amazed that buyers have found things they don't like about the property. 6. We can clean the carpets and declutter without someone telling us how. Yes, you can (and should) do this, but it is a tiny piece of staging. Do you know what separates "clutter" from "asset"? And what about all the other things that staging encompasses, like traffic flows, highlighting architectural features, updating, and appealing to your target market? 7. We have no desire to remove/change our _______________ (wallpaper/mirrored tile/gold faucets/paneling/dated light fixtures . . .). And neither do buyers. Better to keep your home or be ready to sell at a deep discount. 8. The view alone will sell this place. Then why many months later are these great view homes/condos still on the market? Could it be that buyers want something to go with the view--like a comfortable, move-in ready home? 9. We would rather let the buyers makes their own paint/flooring choices. And that equals a price reduction. If buyers do make an offer on your home they will double or triple the cost of these items and reflect that in their discounted offer price--which includes a deduction for the inconvenience. 10. Our home is professionally decorated. A professionally decorated home is tailored to the owner's particular needs. Does it work for the new buyer's needs? You could see #1 above . . . . These are all great reasons-- for price reductions for extended time on the market for buyers not coming to look at your home for buyers not coming back for a second look There are dozens of reasons not to stage, but only one good reason to stage--getting your home sold faster for the highest possible price. Staging is preparing your home for sale and creating a home that buyers want to buy. If you want to be in the best competitive position in this market today, consult with a professional home stager before listing your property for sale. Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

9 Documents That Will Help You Reap Real Estate Tax Benefits

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Mon, 06 Feb 2012 11:09:44 -0800

Technically speaking, April 15th is tax day. But for Americans who expect a refund - including many homeowners who want to cash in on real estate-related tax perks - filing sooner holds the promise of getting that check in hand, stat. If you count yourself in that number, here’s a handy guide for 9 pieces of paper you should be sure to round up as you prepare to file, in order to reap every penny of the tax rewards you’ve earned by virtue of owning a home. Mortgage Interest Statement - IRS Form 1098. The meatiest real estate tax deduction on the books is the one that allows you to deduct 100 percent of the mortgage interest you paid in a year - including prepaid interest or points you might have paid at close of escrow, if you bought a home last year. By now, you should have received in the mail a Form 1098 from your mortgage lender that reports how much that interest totaled up to in 2011. If you itemize your taxes and claim a mortgage interest deduction, you must include this form with your tax form when you file. (If you haven’t received yours yet, most lenders that have online account management services also post the form digitally in your secure account on the web. Just login like you would to make your monthly payment, and look for a notice that says you can now download your 2011 Form 1098.) Property Tax Statements. In addition to deducting your mortgage interest, if you own a home you are eligible to deduct the property taxes you pay to your local city, county and/or state. You are not allowed to deduct some of the other miscellaneous expenses that some localities bundle up with the taxes they collect, like waste management and local assessments for things like street lighting, libraries and sidewalk construction. To get this deduction right, the best practice is to have your property tax statements at hand and make sure you’re only deducting what’s allowed. Uniform Settlement Statement (HUD-1). If you bought or sold a home last year, right after closing you should have received a form called the HUD-1 Settlement Statement (hint: it’s usually on legal-sized paper and contains an accounting of credits and debits for you and your home’s buyer or seller). That form documents a number of line items which might help you out at tax time, including prepaid interest, the prorated property taxes you paid at closing, and closing costs like original fees and discount points. Some states offer tax credits for buying a foreclosure; check with your tax pro to find out if any such credits apply to you. If so, this statement might be your ticket to lower taxes. Moving Expense Receipts. Moving expenses are tax deductible, if your move is closely related, both in time and in place, to the start of work at a new or changed job location and you meet the IRS’ time and distance tests. Long story short, your new home must be at least 50 miles farther from your new workplace than your old home was from your prior place of work, and you must work essentially full-time. So, if you bought or sold a home and moved in 2011, you’ll need to include receipts from expenses you incurred making the move (meals not included) in your tax prep paperwork. No matter what your tax situation is, if you own a home, it absolutely cannot hurt to get some professional help and advice to make sure you maximize your deductions, while minimizing your exposure to audit. And you should always consult with a tax attorney or certified public accountant regarding your tax liabilities and implications when you buy, sell, short sell or lose a home to foreclosure. Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

Five Reasons to Buy a Home in 2012

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Mon, 16 Jan 2012 02:37:38 -0800

The American dream of homeownership is a very feasible aspiration for 2012. There are many benefits of owning a home. Yet some first-time buyers are skeptical of purchasing with the uncertainty surrounding the housing market. The uncertainty many reference when speaking about the housing market involves a specific date when home values will increase. Since no one can pinpoint this date, the word uncertainty (when paired with the housing market) often reveals a negative connotation. There are some factors we can be certain about in this housing market such as home values rebounding. This is true; the housing market often moves in cycles. It’s safe to assume that many Americans harbored the same uncertainty during the George H. W. Bush administration in the early 1990s when the national homeownership rate fell from its previous historic high of 64.4 percent in 1980 to a low of 64.1 percent in 1991. In the 1960s Lyndon Johnson illustrated a correlation between homeownership and accountability by stating “owning a home can increase responsibility and stake out a man’s place in his community…The man who owns a home has something to be proud of and reason to protect and preserve it.” This statement is still true more than 50 years later. There are many reasons to take pride in homeownership such as: Appreciation – Buying a home now (at the current rates) can almost ensure your home’s appreciation in the future. Mortgage rates are near historic lows and home prices in many parts of the country are down. This is the perfect recipe for home appreciation. Additionally, many foreclosed homes are available for a fraction of the original cost. This can translate to a higher profit if you decide to sell once the market rebounds. Property Tax Deductions – For income tax purposes, real estate property taxes for a vacation home and first home are fully deductible. The IRS (Publication 530) provides detailed tax information for first-time buyers that may answer many questions about what deductions homeowners are eligible for. Preferential Tax Treatment – If you own your home for more than a year and receive more profit than the allowable exclusion after the sale of your home, the profit will be considered a capital asset. Capital assets are given preferential tax treatment. Equity Building – Many factors such as credit qualification, loan flexibility, and annual percentage rate (APR) contribute to the final decision of what type of mortgage loan best fits your goals. Yet, a new trend being used by some homeowners is to actually add money to their monthly payment to decrease the principal balance of their loans at a much faster pace. This trend is called equity building. Equity builders usually select a home loan with a lower interest rate (and a shorter term loan such as a 15-year fixed) to help build equity faster. This rapid payment process allows borrowers to: Pay off the principal balance faster Lock in near-record-low interest rates Shorten the length of their home loan Own their home faster Pay substantially less mortgage interest Equity building is a beneficial trend that’s becoming more and more popular with fiscally responsible homeowners. Also, home equity is the largest single source of household wealth for most Americans. Pride – Homeownership offers many benefits to many different types of people. For some homeowners, playing your music as loud as you want and painting the walls the color of your choice is a perk. For me, homeownership will permit me to build an NBA regulation size basketball court on my own property. For my coworker Joel Jarvi, home ownership may allow him to build the indoor slide of his dreams. No matter who you are, homeownership is a purchase, commitment, and journey that’s sure to bring you pride. Furthermore, when the uncertainty surrounding the housing market fades and the market rebounds, homeownership may in fact transform that pride to profit through a home sale. Jonathan Slappey is a writer for Quicken Loans.Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

8 Tips to Protect Your Home While Away on Vacation

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Wed, 14 Sep 2011 04:18:27 -0700

8 Tips to Protect Your Home WhileAway on VacationBy Kelly O'Ryan Many lucky families are planning holiday trips to cure their winter blues. Here are some important things to remember if you leave your home for several days.

Make sure to hold the mail and newspaper. If you can't have someone pick it up every day, it's a sure giveaway that nobody's home and can be a green light for burglars. If possible, leave a key with someone you trust, preferably a neighbor and have them keep an eye on your home while you're gone. Make sure to offer returning the favor and thank them with a gift when you return. Unplug all electronics that don't need to used like the television, coffee maker, and home computers. Lower the temperature on your water heater. If you can, leave a car in the driveway and use timers to turn on outdoor and indoor lights to give the impression that someone is home. Leaving the porch light on the entire time you're gone is a bad idea. If you don't have a timed light, you can leave an interior light on for the duration of your trip as long as you can't easily notice it during the day. As excited as you may be to go on vacation, avoid advertising it over Facebook and Twitter. Also, keep this in mind while posting updates from your cell phone on vacation. If you have access to one, place all your valuables in a safe or safe deposit box. Remember, if your house is on the market, you can ask your REALTOR® to stop by and check in. While you're on vacation, it's a great time for showings because you won't have schedule conflicts. If you follow these tips the next time you are out of town, you will most likely protect your house and your peace of mind.Reprinted with permission of RisMedia, publisher of Real Estate Magazine

Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

4 Insider Secrets for Avoiding Surprises at the Closing Table

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Thu, 04 Aug 2011 09:23:11 -0700

I used to pass a mortgage company billboard on the freeway every day that read: “Surprises are for birthday parties.” (Implied: surprises are usually unpleasant when they arise in the context of real estate transactions.) The worst case scenario that looms large in the minds of buyers, refinancers and sellers alike is that they’ll get to the close of escrow and some big glitch will arise, coming between you and your home – or your cash. Here are 4 key need-to-knows to help you avoid getting a nasty surprise at the closing table. Read my lips: no new bills (or other financial blips). Most savvy buyers know better than to run out and buy a car while they’re trying to buy a home. But you’d be surprised at how many don’t think twice before opening new credit accounts to buy appliances or finance the kitchen remodeling work they plan to have done as soon as they get the keys to the place. Many a lender will run a quick credit check right before closing, mostly so they can detect whether your bills – your monthly obligations – have increased to a point that pushes your debt-to-income ratio too high to qualify for the home, or would make it tough for you to pay your new mortgage. If your escrow runs 45, 60 or 90 days (or longer) as they commonly do in short sales and sales of bank owned homes, new accounts can certainly show up on your credit report in that time frame, endangering the deal and generating a surprise “no deal” from your lender just when you thought you’d be getting a set of closing docs to sign. Also, some lenders conduct a last-minute check of borrowers bank account statements. Of course they want to make sure that you have the cash you need to seal the deal. But you might be surprised to learn that lenders also want to be sure that there are no unexplained, major deposits to your account, as well. They know some borrowers are inclined to borrow fistfuls of dollars from family and friends just before closing in an effort to scrape together the cash they need to close their home purchase by any means necessary. And, unless the money is a lender-approved gift, that’s not allowed! (Why? The mortgage lender wants to avoid the friend or relative later saying they “own” part of the house, and also doesn’t want your obligation to repay a “friend-and-family” loan to interfere with your ability to repay your new home loan!) If you have any large deposits (other than your normal income) come in just before or during escrow, be prepared to both explain them and document their source. Make full disclosure when you first apply for your mortgage or short sale. Today’s loan underwriters are notorious for being sticklers about verifying and re-verifying the facts on your loan application. And as mortgage guidelines have tightened, lenders have also tightened up the underwriting process, creating a virtual gauntlet of review after review, underwriter after underwriter that you have to get past in order to close your deal. The most critical one? The funder – it is this underwriter’s job to give the thumbs up (or down) on wiring your mortgage money into escrow. Funders are the toughest to get past, understandably, because the buck stops with them when it comes to their employer’s issuance of tens, even hundreds of millions of dollars of mortgage money every year. So, they want to be sure every last one of your loan qualifying i’s are dotted and t’s crossed – up to the very last possible moment before they green-light the disbursement. They have the right – scratch that – the responsibility to re-check your credit, assets, even your employment at the last minute, and they take this responsibility very seriously. And on a short sale, the pre-closing title check can reveal legal judgments and liens against the seller that have been placed on the property up to the day of closing. I’ve seen deals fall apart or come to the brink of failure the day or so before they were supposed to close because a buyer had lost a job, turned out to actually be legally married (the divorce they’d put on the application was not yet final), or a new collection account had surfaced. I recently saw a short sale nearly cancelled when a new collection account of the seller’s was filed as a lien on the house. Once, I even saw a deal killed beyond salvation when a last minute credit re-check surfaced a social security number flag that revealed one buyer was not in the country legally! To avoid these sorts of last minute surprises, be 100 percent honest with your real estate and mortgage agents at the beginning of your homebuying (or selling) process about any and every area of your life that corresponds to a mortgage or short sale application question, even before you complete the application – there’s almost no such thing as an overshare at that stage. That puts them in a position to help you avoid closing table drama from the jump, even if it means they advise you to stay in your job, settle some bills or buy the home on your own, rather than with your spouse. Watch the calendar closely. Buyers who originally were pre-approved for their mortgage many moons before they find the right property should obtain updated estimates of their mortgage payments and the cash they will need to close their purchase as their house hunting period goes on, and especially once they have a firm closing date estimate. Mortgage interest rates can change dramatically over a period of a few months, and closing costs vary widely based on things as seemingly minor as whether your transaction closes at the beginning or the end of the month. To avoid getting to closing and realizing that you have to come up with an extra few weeks’ worth of prepaid mortgage interest because your closing date changed, make sure your real estate and mortgage brokers are in close communication, and ask them to keep you apprised of how any closing date changes will impact the size of the check you’ll have to write to close the deal. And if you’re buying a property that is a short sale or foreclosure, ask them to give you this briefing as soon as possible (and as frequently as possible!) in the transaction so that you can prepare a little cushion of extra cash in case closing is delayed for reasons beyond your control (which happens very frequently in these sorts of sales). Obtain and review your closing documents in advance. I used to give this advice mostly to buyers, urging them to ask their agent and mortgage broker to provide them with their loan and title documents at least a day or so in advance – earlier, if possible. If you have to sign 300 pages at the closing table and you know your keys and moving plans hang in the balance, the chances you’ll be scrutinizing every line are pretty slim – and if you do happen to catch an error, the time it will take the lender to revise and reissue a set of papers can throw your moving calendar entirely out of whack. The best practice is to get these documents in advance, so you can check on line items like the interest rate and monthly payment in the comfort of your own home or office, ask questions of your representatives and initiate any corrections that need to be made without disrupting the plans for signing and closing. And this applies to sellers, too – even though buyers have a much higher volume of paperwork to get through at closing (and errors can be costly), closing doc errors occasionally arise that have a serious impact on sellers, as well. I was once asked for advice in a situation where the seller owned two neighboring parcels of land, and the title paperwork for the sale of one erroneously included the other one, too! It took a boatload of high-drama legal wrangling to get the mistake corrected, and get the sellers' other lot back Re-printed from Trulia Article 8/4/11 By Tara-Nicholle Nelson | Broker in San Francisco, CA Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

5 Questions to Ask Your Mortgage Lender

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Fri, 22 Jul 2011 04:38:52 -0700

This article is right on the money. No pun intended! Home buyers and those re-financing their homes to take advantage of today's generational low interest rates need to read this. "Everyone knows you’re supposed to be proactive and assertive when you take out a mortgage, carefully collecting and evaluating all sorts of information before you make the biggest deal of your life. But when the mortgage broker starts shooting sheaves of papers (OK, PDF documents) at you, it’s easy for your eyes to glaze over at the sight of so many zeroes, and tempting just to start signing whatever it takes to get that house! Here are 5 questions every smart buyer (or refi-er) should add to the list of issues to cover with your mortgage professional: Are you a bank, a broker, or both? Generally speaking, mortgage lenders that are banks or have their own banking divisions (which many reputable brokerages do) have more control over the appraisal process, including the ability to submit your file to a pool of appraisers they know have some knowledge of your local neighborhood. Given the fact that non-local appraisers and the inability to communicate with appraisers under relatively new guidelines for brokerages are responsible for killing loads and loads of deals, working with a company that is or has a bank could be a deal-saving move, especially if the property is in an area that hasn’t had many recent sales or is otherwise challenging to appraise. Also, some broker/banks that originate loans and sell them straight to Fannie Mae or Freddie Mac under the FHA loan programs offer the same benefits of an FHA loan - low down payment and moderate qualification guidelines - without the “overlays” imposed by some larger banks, which actually place a more restrictive set of guidelines on FHA loan programs. For example, FHA guidelines do not impose a minimum credit score, but many banks overlay their own 640 minimum FICO requirement. Broker/banks that sell straight to Fannie and Freddie often mirror the FHA minimum guidelines precisely. Finally, brokerages with their own in-house bank and a large roster of lenders and programs provide the advantage of offering a wider range of fallback options than plain old banks or plain old brokerages - Plans A, B, C and D, if you will - which many borrowers need these days, in the (increasingly common) case your first choice bank or loan program doesn’t work out. Will you explain my Good Faith Estimate to me? May I also have a fee sheet or estimate of funds to close? The current, national standard Good Faith Estimate (GFE) is pretty clear, clarifying all sorts of deal points, from the broker’s commissions to the costs associated with the loan, but as a point of customer service, you should ask your mortgage pro to explain it to you (if they don’t do so under their own initiative). The one shortfall of the the latest edition of the GFE is that, while it clearly shows the costs associated with a particular loan scenario, it does not always show so clearly the actual amount of funds you’ll need to close the transaction (which might be more or less than those costs)! So, ask your mortgage representative to prepare a fee sheet or an estimate of funds to close as early in the transaction as possible. How long will it take to close my loan? How much time will I need for loan and appraisal contingencies? The time frames for closing your mortgage - which often drive the time frames for closing your home purchase - often vary widely depending on the type of loan and even the type of lender you work with.(Large bank loans originated by the bankers who sit inside the branch are notoriously slower to close, on average, than loans originated by brokers.) Similarly, the time it takes to get through the FHA loan appraisal and underwriting process might be much longer than it would take, all things being equal, to clear those hurdles and remove your loan and appraisal contingencies on a Conventional (i.e., non-FHA) mortgage. When you first meet with your prospective mortgage pro, talk with them about these time frames, so they can help you set realistic expectations and insert realistic time frames into your offer when you make it, to minimize the drama of a contingency clock that ticks way faster than your mortgage process. Are there any fees for the mortgage loan application/approval process? Some lenders charge for credit checks up front, and most require that you pay for your appraisal in advance (although the latter happens only after you find and get into contract on your property. One of the first questions you should ask, when you sit down with a new mortgage broker is how much cash you’ll have to come up with just for the privilege of having them run your application and take the first steps down the road to loan approval. How long have you been originating loans? And how long have you been with your company? Mortgage pros who have been around for a long time have the knowledge of advance troubleshooting, workarounds and backup plans, and the current underwriting practices it takes to get a loan closed in this restrictive mortgage market. If you found them in some way other than a referral, you can even ask for references from a few clients. Most mortgage pros who have been in business for awhile will be able to give you names and numbers of clients they’ve worked with on multiple purchases and/or refis: that’s a very good sign. You’ll rest a lot easier if you know that your loan is in the hands of a seasoned pro who others like you trust with their largest asset - and largest financial obligation. Attrribution: Reprinted from Tara Nacolle Nelson's article in Trulia 7/20/11 Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

5 Questions to Ask Your Home's Inspector

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Thu, 14 Jul 2011 05:20:18 -0700

Reprinted from Trulia Article 7/14/11 by Tara Nicholle-Nelson "Most home buyers feel like they are bona fide real estate experts after all the studying up on loans and neighborhoods, online house hunting and open house visiting it takes just to get into contract on a home these days. But for all but the most handy of house hunters, getting into contract and starting the home inspection process only surfaces how little you actually know about the nuts and bolts and brick and mortar of the massive investment you're about to make: a home! So, you hire a home inspector, but it seems like they're speaking an entirely different language - riddled with terms like "serviceable condition" and "conducive to deterioration" - about your dream home! Here are 5 questions you can use to decode your home inspector's findings into knowledge you can use to make smart decisions as a homebuyer - and homeowner.1. How bad is it - really? The best home inspectors are pretty even keeled, emotionally speaking. They're not alarmists that blow little things up into big ones, nor do they try to play down the importance of things. They're all about the facts. But sometimes, that straightforwardness makes it hard for you, the home's buyer, to understand what's a big deal and what isn't so much - the information you need to know whether to move forward with the deal, whether to renegotiate and what to plan ahead for. I've seen things categorized in home inspection reports under "Health and Safety Hazards" that cost less than $100 to fix, like replacing a faucet that has hot and cold reversed. And I've seen one-liners in inspection reports, like "extensive earth-to-wood contact" result, after further inspection, in foundation repair bids pricier than the whole cost of the home! In many states, home inspectors are not legally able to provide you with a repair bid, but if you attend the inspection and simply ask them whether or not something they say needs fixing is a big deal, nine times out of ten they will verbally give you the information you need to understand the degree to which the issue is a serious problem (or not).2. Who should I have fix that? I always ask this question of home inspectors, with dual motives. First, very often, the inspector's response is - "What do you mean? You don't need to pay someone to fix that. Go down to Home Depot, pick up a ___fill in the blank__, and here's how you pop it in. Should cost you $15 - tops." And that's useful information to know - it eliminates the horror of a laundry list of repairs and maintenance items at the end of an inspection report to know that a number of them are really DIY-type maintenance items. Even buyers who are really uncomfortable doing these things themselves then feel empowered to either (a) watch a few YouTube vids that show them how it's done, or (b) hire a handyperson to do these small fixes, knowing they shouldn't be too terribly costly.And even on the larger repairs, your home inspector might be able to give you a few referrals to the plumbers, electricians or roofers you'll need to get bids from during your contingency period, which you may be able to use to negotiate with your home's seller, and to get the work done after you own the place. Dropping the inspector's name might get you an appointment booked with the urgency you need it in order to get your repair bids and estimates in hand before your contingency or objection period expires.And same goes for any further inspections they recommend - if neither you nor your agent knows a specialist, as the general home inspector for a few referrals.3. If this was your house, what would you fix, and when? Your home inspector's job is to point out everything, within the scope of the inspection, that might need repair, replacement, maintenance or furthe inspection - or seems like it might be on it's last leg. But they also tend to be experienced enough with homes to know that no home is perfect. Many times, I've asked this question about an item the inspector described as "at the end of its serviceable lifetime" and had them say, "I wouldn't do a thing to it. Just know that it could break in the next 5 months, or in the next 5 years. And keep your home warranty in effect, because that should cover it when it does break." This question positions your home inspector to help you: understand what does and doesn't need to be repaired, prioritize the work you plan to do to your home (and budget or negotiate with the seller accordingly), get used to the constant maintenance that is part and parcel of homeownership, and understand the importance of having a home warranty plan. 4. Can you point that out to me? Often, when you attend the home inspection, you'll be multi-tasking, taking pictures of the interior, measuring for drapes or furniture, even meeting the neighbors, or fielding several inspectors at a time. Worst case scenario is to get home, open up the inspector's report and have no clue whatsoever what he or she was referring to when they called out the wax ring that needs replacement or the temperature-pressure release valve that is improperly installed. Your best bet is to, at the end of the inspection, while you're all still in the property, just ask the inspector to take 10 or 15 minutes and walk you through the place, pointing out all the items they've noted need repair, maintenance or further inspection. When you get the report, then, you'll know what and where the various items belong. (One more best practice is to choose an inspector who takes digital pictures and inserts them into their reports!)5. Can you show me how to work that? Many home inspectors are delighted to show you how to operate various mechanical or other systems in your home, and will walk you through the steps of operating everything from your thermostat, to your water heater, to your stove and dishwasher - and especially the emergency shutoffs for your gas, water and electrical utilities. This one single item is such a time and stress saver it alone is worth the lost income of missing a day of work to attend your inspections."

Posted in Home Repair, Home Maintenance and Repair Tips, Advice.
No Comments \| Leave a Reply	Top



3 Absolute Musts for Buying a Home - Without the Stress!


3 Absolute Musts for Buying a Home - Without the Stress! "Major money transactions are stressful. Moving is stressful. Big life commitments are stressful. Put 'em all together, and what do you have? The home buying process (and the potential for one of the most stressful life experiences you'll ever have)! But even in this volatile market where distressed properties - and people! - are commonplace, it is possible to maintain your sanity in the midst of a real estate deal - I promise.Here are 3 money, mindset and calendar management strategies for buying a home, without stressing entirely out.1. Work the Boy Scout program: be prepared. Scrambling for money and documents that the lender, unexpectedly, "requires" to close has got to rank up there in the top couple of stressors that buyers experience. Once you get into contract and, especially, once you've removed contingencies and put your deposit money on the line, every request that your lender makes seems like a ransom demand for your home - and your life, as you'd planned it.Avoid this scrambling by being prepared. If you are planning to buy a home down the road, consult a mortgage broker and real estate pro early on in your planning process, so you can know what kind of cash you'll realistically need to close the deal - before you start the buying process. You might keep hearing about 3.5% down FHA loans, but your local pros can reality check you that it might cost an addition 5 or 6% of the purchase price just to close such a loan, in your area and price range!If they give you a range, err on the high side - penny-scraping buyers are generally the most stressed of them all, as they are the ones whose deals are most likely to be entirely derailed if there's an uptick in interest rates, say, during the time they are house hunting or in escrow, or if the homeowners' insurance costs a bit more than they planned.And have all your documents ready, too - things like divorce decrees, tax returns, updated check stubs, documentation of bills that you've recently paid down or off , even driver's licenses (you wouldn't believe the number of people who can't produce ID when the notary needs it at the closing table!), keep all these items at the ready in case your lender requires them. By the same universal law that renders my dogs smarter and faster the wetter they get, it seems like lenders require the most documentation of the folks who have no idea where their most important papers are.Last, but not least, there's also an education element of preparedness. Educate yourself about the standard practices and timelines for a real estate transaction in your local market (your agent will surely be able to brief you on this, and you can also peruse Trulia Voices Community to sample the experiences of other folks buying right now in your area.) If you're buying a bank-owned property or a short-sale, educate yourself about what this will entail - spend some time reading up on the rollercoaster of Wild Westiness (a mixed metaphor, I know, but still appropriate) that some distressed property sales can be, from the buyer's point of view. When it comes to buying a home, realistic expectations will set you free. Stress-free, that is.2. Keep your timelines as flexible as possible, as long as possible. Rarely does the sun set in America without some homebuyer (or 5) near you lying awake in bed wondering how long they'll have to: a) keep bunking with their in-laws, b) keep paying the nightly rate for the all-suite hotel down the street from the place they're buying, c) keep paying the daily fee for the moving truck which is parked outside, containing everything they own, d) keep begging their landlord to please, please, please give them another 24 hours - and they swearing they'll be out after that (even though they said that yesterday!), e) keep pushing back the vacation days they took off work for the move that seems like it will never happen, or f) some combination or all of the above,all because their escrow is not closing on the timeline they expected it to.There are as many reasons for late escrow closings as there are insomniac homebuyers facing this issue: buyer's loan underwriting is taking too long, seller's short sale application is still being processed, appraisal is glitchy, bank-owned property asset manager is slow to produce the necessary signatures, and the list goes on. More important than knowing the causes, though, is having the awareness that escrow closing dates are not set in stone until the end is very, very near - and that the problem of delayed closing comes up with ever-increasing frequency these days. Buyers who are trying to time their closing so that they move out of their apartment on the exact day they plan to close are likely to be disappointed - and temporarily homeless - in the current market climate. Best practice is to plan on some overlapping days, weeks or even a month between the time you should be able to move into your next home, and the time you must be out of your current home, if you can afford it. Keep your moving plans flexible as long as possible - I've know a number of buyers who didn't realize their move would be delayed until they were signing their closing docs! Also, it's sanity-making to try to keep some flexibility about your daily calendar while you are in escrow, lest you need to show up at the property and get some additional inspections, unexpectedly, which were recommended by your inspector. If you only have a couple of days before you must remove your inspection contingency, you might have to drop everything and stop in at the place for an hour here or there. You might also need to stop in at the bank - in person - to wire cash when it's time to increase your deposit or pay your down payment or closing costs into escrow. This cannot usually be done over the phone or outside of banker's hours, so if you can be a bit flexible for these outings, calendar-wise, you'll be in good shape.3. Pre-approve the folks across the bargaining table from you. There's nothing worse than doing every thing you're supposed to do, then having the deal fall apart at the last minute, through no fault of your own. I've known scores of buyers whose short sales failed to get approved by the seller's bank and fell out of escrow as a result. I've also seen and heard from buyers whose deals died when their intended properties failed to meet the buyer's mortgage guidelines because of condition problems like incomplete kitchen remodel jobs, mold or electrical problems and high-cost pest report items that neither the buyer nor the seller can afford to repair.These ailing transactions can be prevented by early diagnosis: vet the other party's qualifications and ability to close the deal, before you get into contract. For buyers, this can mean having your agent collect as much information as possible about the seller's equity position, how underwater the home is, which banks are involved and how successful the listing agent is at closing short sale transactions - all of these things can give your agent and yourself a big old clue as to whether a short sale is likely to close. Similarly, if you're getting an FHA loan, before you make an offer, walk through the property with your agent and troubleshoot it for condition problems that might come up during the appraisal. With this information you can make an informed decision whether to move forward and try to buy the place; if you get into contract knowing it's a crap shoot, at least you'll have realistic expectations - the sort that are very difficult to disappoint." By Tara-Nicholle Nelson, Published on Trulia 5/26/11

Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

Buying Gasoline? Try these tips!

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Mon, 04 Apr 2011 07:51:30 -0700

I received this information in an email last week. I don't know whether or not it's accurate, but it sounds logical and can't hurt. If it works, it will save you some money ..... and that's always good! Please let me know if this is helpful. "I don't know what you guys are paying for gasoline.... but here in California we are paying up to $3.75 to $4.10 per gallon. My line of work is in petroleum for about 31 years now, so here are some tricks to get more of your money's worth for every gallon: Here at the Kinder Morgan Pipeline where I work in San Jose, CA we deliver about 4 million gallons in a 24-hour period thru the pipeline. One day is diesel the next day is jet fuel, and gasoline, regular and premium grades. We have 34-storage tanks here with a total capacity of 16,800,000 gallons. Only buy or fill up your car or truck in the early morning when the ground temperature is still cold. Remember that all service stations have their storage tanks buried below ground. The colder the ground the more dense the gasoline, when it gets warmer gasoline expands, so buying in the afternoon or in the evening....your gallon is not exactly a gallon. In the petroleum business, the specific gravity and the temperature of the gasoline, diesel and jet fuel, ethanol and other petroleum products plays an important role. A 1-degree rise in temperature is a big deal for this business. But the service stations do not have temperature compensation at the pumps. When you're filling up do not squeeze the trigger of the nozzle to a fast mode If you look you will see that the trigger has three (3) stages: low, middle, and high. You should be pumping on low mode, thereby minimizing the vapors that are created while you are pumping. All hoses at the pump have a vapor return. If you are pumping on the fast rate, some of the liquid that goes to your tank becomes vapor. Those vapors are being sucked up and back into the underground storage tank so you're getting less worth for your money. One of the most important tips is to fill up when your gas tank is HALF FULL. The reason for this is the more gas you have in your tank the less air occupying its empty space. Gasoline evaporates faster than you can imagine. Gasoline storage tanks have an internal floating roof. This roof serves as zero clearance between the gas and the atmosphere, so it minimizes the evaporation. Unlike service stations, here where I work, every truck that we load is temperature compensated so that every gallon is actually the exact amount. Another reminder, if there is a gasoline truck pumping into the storage tanks when you stop to buy gas, DO NOT fill up; most likely the gasoline is being stirred up as the gas is being delivered, and you might pick up some of the dirt that normally settles on the bottom."Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

5 Tax Tips, Tricks and Traps for Homeowners

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Thu, 03 Mar 2011 00:50:02 -0800

Ask a roomful of homeowners what's so great about owning versus renting, and you'll hear them holler in unison: "the tax deductions!" And it's true - homeowners who itemize their taxes are able to deduct 100% of their mortgage interest and property taxes from their income tax returns.That means that if you're in a 28% tax bracket, Uncle Sam effectively subsidizes about a third of your borrowing costs or more, making your home more affordable or allowing you to buy a larger home than you could have otherwise. Also, big chunks of your closing costs are tax deductible, and hundreds of thousands of dollars of any profit (or capital gains) that you realize when you sell your home are exempt from income taxes.At tax time, it's critical to know what you're entitled to, so you can claim it. So, here are five essential need-to-knows about home-related income tax tips to help you get the most tax-reducing bang out of your home-owning buck - and to avoid hefty home ownership-related tax traps.1. You Have to Itemize Your Return to Claim Your DeductionsDuring the recent debate on Capitol Hill about whether the mortgage interest deduction should be eliminated (it won't be, not anytime soon), it came out that nearly 40% of homeowners lose out on their major tax advantages every year when they fail to itemize their income taxes. If you own a home and otherwise have a fairly simple return, it might be tempting just to take the standard deduction - and if your mortgage, property taxes and income are low enough, the standard deduction might outweigh your homeowners' deductions. But you'll never know if you're losing out on the tax advantages of itemizing unless you try; before you grab a pen and start filling in that 1040-EZ grab those forms from your mortgage company and answer the questions on tax software like TurboTax, which will automatically do the math on whether itemizing or taking the standard deduction will result in the lowest tax bill - or the highest tax refund - for you. 2. Plan Ahead and Be Strategic When Taking a Home Office DeductionAccording to the Small Business Administration, the average home office deduction is $3,686 - multiply that by your tax bracket - 15%, 20%, 30% or whatever it is, and that's what you'll save on your taxes by writing off your home office. Know, though, that the space you designate as your home office cannot be exempted from capital gains tax when you sell your home later. The $250,000 (single)/ $500,000 (married filing jointly) income tax exemption for capital gains is only good on your personal residence, after all - not including any space in your home you've claimed as your tax-advantaged office. If you foresee selling your home for much more than you bought it in the future, near or far, discuss this with your tax preparer to see if the few hundred bucks you save is worth the capital gains complication later.3. Tax Relief for Loan Modifications, Short Sales and Foreclosures Is Only Around Through 2012While the long-term housing outlook is beginning to look up, 2011 is projected to be the peak year for foreclosures during this market cycle. Distressed homeowners who are on the brink of a short sale, loan modification or foreclosure should be aware that normally, any mortgage balance that is wiped out by one of these outcomes is taxed as what the IRS calls Cancellation of Debt Income, or CODI.Under the Mortgage Debt Forgiveness Relief Act of 2007, the IRS is currently not charging income taxes on CODI incurred through a loan mod, short sale or foreclosure on most primary residences through 2012. But right now, banks are taking many months, or even years, to work out mortgages in all of these ways; the average foreclosure in New York state right now occurs only after 22 months of missed mortgage payments. If you foresee any of these outcomes in your future, don't put things off. Do what you can to get to closure on your distressed home and loan, ASAP, while you won't have income taxes to add as the insult on top of your significant housing injury. 4. Project the Income Tax Consequences of a Refinance or Property Tax AppealHomeowners everywhere are working on applying for a lower property tax bill on the basis of the last few years' decline in their home's value. Those who have equity have flocked en masse to refinance their 7% home loans into the 4% to 5% rates of the last few months. These strategies offer some of the heftiest household savings out there for the corresponding investment in time and money they take. But here's a caveat for savvy homeowners who slash these costs: remember that property taxes and mortgage interest, the very costs you're minimizing, are also the basis for the major tax benefits of being a homeowner. So plan ahead for your income tax deductions to go down along with your taxes and interest.5. Don't Forget Those Closing CostsIf you bought or refinanced your home in 2010, you may be so focused on your mortgage interest and property tax deductions that you forget all about your closing costs. Any origination fees or discount points that were paid to your mortgage lender at closing are tax deductible on your 2010 return, get this - even if the seller paid your closing costs. If you can't figure out exactly what you paid, look for your HUD-1 settlement statement, that legal sized paper full of line item credits and debits that you should have received from your escrow provider or title attorney at, or just after, closing. Can't find it? Drop your real estate agent or mortgage broker an email; they can usually get a copy to you quickly. Note: This post first appeared on WalletPop.com on 2.28.2011.Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

Tips for Buying Foreclosures

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Wed, 26 Jan 2011 05:59:46 -0800

Tips for Buying Foreclosures RISMEDIA, January 25, 2011-The McCarty Group, a Florida real estate team specializing in Marco Island properties, has released a "Top Tips" list for buying foreclosures. Mike and Wendy McCarty of Keller Williams Realty say the tips apply to virtually all markets in the U.S. and that while many buyers have heard that there are many foreclosures on the market, most don't understand these practical rules they can follow to save money. Here are some tips to consider: 1. Work with an agent who has access to foreclosure information. Many home buyers assume that all agents have access to foreclosure listings. It's important to ask. 2. Bank-owned properties generally close faster than short sales. While short sales can be bargains, they also can take a lot longer. Some banks will negotiate in a timely manner on short sales, but most will prioritize properties they have already repossessed. 3. Always offer less than the asking price. Don't assume that banks are firm on their price. For example, asset managers responsible for liquidating bank-owned Marco Island, Florida condos are often willing to consider a lower offer. 4. Ask the bank to pay your closing costs. The worst that can happen is that they say no. Sometimes buyers are surprised to find that banks can be quite accommodating when they want to. 5. Get pre-approved from the right bank. When making an offer on a short sale, it's often strategically helpful to be pre-approved by the same bank. During negotiations, this may tip the scales in your favor.Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

Tips for Keeping Your Home Healthy

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Tue, 18 Jan 2011 04:00:27 -0800

Tips for Keeping Your Home Healthy RISMEDIA, January 18, 2011-It's easy to overlook a small leak or slight draft. But these problems have the potential to get worse very quickly. To prevent a big problem from arising, energystar.gov recommends having a contractor or service company perform annual check-ups-on the cooling system in the spring and the heating system in the fall. To remember, you might plan the check-ups around the time changes in the spring and fall.Here are some general things your contractor or service company should do: Check thermostat settings; Tighten all electrical connections; Lubricate all moving parts; Check and inspect the condensate drain in your central air conditioner; and Check controls of the system to ensure proper and safe operation. Cooling System Specific - Clean evaporator and condenser air conditioning coils; Check your central air conditioner's refrigerant level and adjust if necessary. Too much or too little refrigerant will make your system less efficient increasing energy costs and reducing the life of the equipment.Dirty coils reduce the system's ability to cool your home and cause the system to run longer, increasing energy costs and reducing the life of the equipment.Check the starting cycle of the equipment to assure the system starts, operates, and shuts off properly.furnace and/or heat pump (when in cooling mode). A plugged drain can cause water damage in the house and affect indoor humidity levels.Parts that lack lubrication cause friction in motors and increases the amount of electricity you use.and measure voltage and current on motors. Faulty electrical connections can cause unsafe operation of your system and reduce the life of major components.; and Clean and adjust blower components to provide proper system airflow. Heating System Specific - Check all gas (or oil) connections; and Check all electrical connections. Things You Can Do Yourself - Inspect, clean, or change air filters once a month in your central air conditioner, furnace, and/or heat pump. Your contractor can show you how to do this. A dirty filter can increase energy costs and damage your equipment, leading to early failure.gas pressure, burner combustion and heat exchanger. Improperly operating gas (or oil) connections are a fire hazard and can contribute to health problems. A dirty burner or cracked heat exchanger causes improper burner operation. Either can cause the equipment to operate less safely and efficiently.for greater comfort levels. Airflow problems can reduce your system's efficiency by up to 15 percent; and Install a set-back electronic thermostate to ensure the cooling and heating system keeps you comfortable when you are home and saves energy while you are away. Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

Four Steps toward Preparing Your Home for a Hurricane

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Thu, 22 Jul 2010 09:21:45 -0700

4 Steps toward Preparing Your Home for a Hurricane By Stephanie AndreRISMEDIA, July 22, 2010--It's hard to believe that it's already been five years since Hurricane Katrina devoured the Gulf Coast. While hurricanes are not preventable, there are steps you can take to protect yourself and your property should disaster strike. Here are four important steps to consider, according to the Insurance Information Institute: STEP #1: Review Your Insurance CoverageBe sure you have the right kind and amount of insurance, enough to rebuild your home and replace your belongings. Ask about flood insurance, which is not covered under a standard homeowners policy. Learn more about flood insurance at www.floodsmart.gov.STEP #2: Create a Home InventoryAn up-to-date home inventory will speed up the claims process by substantiating losses and may provide documentation for tax purposes. It can also help you determine how much insurance to purchase. Visit www.knowyourstuff.org to download software to help make this process easier.STEP #3: Protect Your PropertyKeeping wind and water out of your home is critical. Invest in storm shutters and reinforced garage doors. Secure roof shingles and seal any openings, cracks and holes. Gable end walls and roof sheathing should be strongly attached and braced, and double doors should have heavy duty anchors at the top and bottom and a dead bolt at least 1" long. STEP #4: Have an Evacuation PlanDecide where you will go and how you will get there, and have more than one option. Keep a map, phone numbers and addresses handy. Think about what you'll need to take with you - items like medicines, important documents, clothing and food - and have them ready to go. Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

Have You Thought About an Outdoor Kitchen?

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Thu, 08 Jul 2010 02:28:42 -0700

Have You Thought About an Outdoor Kitchen? By Jean PattesonRISMEDIA, July 8, 2010--(MCT)--The outdoor kitchen is rapidly becoming the social hub of the home, much as the indoor kitchen is the favorite gathering place for family and friends. The trend is especially strong in areas where the climate favors outdoor living almost year-round."It's a hot item," said Scott Redmon, owner of Alfresco Living in Maitland, Fla. "And the outdoor kitchen is becoming a lot more than a grill and a sink in the corner of the porch. It's a whole entertainment system. People have a higher expectation for their exterior spaces since HGTV came around."Outdoor kitchens are popular because they are fun to live with, said Russ Faulk, vice-president of product development at Kalamazoo Outdoor Gourmet in Kalamazoo, Mich. "They add to the quality of life for the homeowner. Preparing a meal outdoors is not a chore, it's an occasion, a reason to have friends over and enjoy the process."In addition, an outdoor kitchen expands a home's living space and adds to its value, he said. "The return on your investment is comparable to an indoor kitchen redo."Since the economic downturn, "People have been unable to sell their homes, so they are starting to upgrade with better landscaping and outdoor kitchens, spending more time at home," said Sue Fern, manager of the Florida chapter of the American Society of Landscape Architects.The built-in grill was the start of the outdoor-kitchen trend, said Faulk. "Then came the sink, the refrigerator, a counter for food prep, cabinets for storage - pretty much what you'd have in an indoor kitchen."As more equipment is added, outdoor "rooms" are becoming larger and more covered, he said. Seating areas are added, along with outdoor TV sets, fire pits and water features.The grill - fired by gas, wood or charcoal - is still the heart of the outdoor kitchen. Especially popular are hybrid grills, which can be switched from gas to wood or charcoal, depending on what is being cooked, said Faulk. "There's nothing like grilling fish over an oak fire."Pizza ovens are starting to threaten the grill's reign as king of the outdoor kitchen. Oven designs range from large, wood-fired brick and clay ovens that take several hours to heat up, to compact countertop models fired by gas that are ready for baking pizzas in 20 minutes.Also gaining popularity in outdoor kitchens are keg-tappers, wine chillers, ice makers and warming cabinets.When designing an outdoor kitchen, be sure to look for low-maintenance equipment, said Faulk, "or you defeat the purpose of carefree outdoor cooking."Also, make sure any cabinetry is designed to keep the contents clean and dry in inclement weather; install good task and ambient lighting; and choose counter-top material that is stain- and grease-resistant and stays cool in direct sunlight."Get counter-top samples, leave them in the sun and see how hot they get," advised Faulk. "Heat-retention is not always related to color. Some light colors get hotter than some dark colors."He also offers these cost-cutting tips. "Design the outdoor kitchen against the house to reduce the cost of getting utilities to the space. And buy the best grill you can afford."When designing an outdoor kitchen, "Consider how the space will be used: as a personal refuge or a place to entertain and be social; as a place to cook and eat, or to drink and socialize," said Eduardo Xol, exterior designer on Extreme Makeover: Home Edition and celebrity designer for hayneedle.com.And remember, he said, "Indoor-outdoor living helps balance the soul. It keeps you connected with nature and helps you become more aware of living green."(c) 2010, The Orlando Sentinel (Fla.).Distributed by McClatchy-Tribune Information Services.Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex

Simple Tools to Do a Home-Energy Audit, and Save

Ken Hunter (Better Homes and Garden Real Estate-Gary Greene) — Sat, 26 Jun 2010 11:52:17 -0700

Simple Tools to Do a Home-Energy Audit, and Save By Liana B. BakerRISMEDIA, June 26, 2010--(MCT)--For many homeowners, electricity use is highest during the summer - that means steeper energy bills are just around the corner.But a lot of the energy you're paying for is squandered through air leaks around doors and windows, or through cable boxes and appliances that sap energy when no one is around. Before you shell out the cash for a professional home-energy audit, however, here are some do-it-yourself ways to measure - and then curb - your energy use.MEASURE ITThe average household will spend about $2,140 on residential energy consumption in 2010, according to the Washington-based Alliance to Save Energy. What's running up that bill? A home power monitor is one way to find out, said Tom Simchak, a research associate at the Alliance to Save Energy.Simchak said he purchased one - The Energy Detective, or TED (see the site at TheEnergyDetective.com) - for about $200. It's connected to his circuit-breaker box and to his Internet router. The monitor records and calculates the cost of his electricity use and sends that information (current and projected consumption, plus cost, among other things) to a small box with an LCD display that he keeps in his living room.The monitor also sends the information to his laptop, where TED's proprietary software lets Simchak assess his energy-use history and projected use in greater detail. In addition, the monitor uploads the data to Google PowerMeter, a free online home-energy monitoring tool.While the power monitor won't tell you how much energy each separate device is consuming, Simchak said the real-time data makes it easy to figure out. "When you hear the air conditioner click on," he said, "power consumption goes up by seven or eight times."A cheaper alternative that does give you information on specific devices' energy consumption is a kilowatt meter, which measures the energy use of any device plugged into it. You plug the meter into a wall socket and then plug the device into the meter.The kilowatt meter can't measure an overhead light or other devices hardwired into your home, but "it's still a useful tool," said Reuven Walder, a professional energy auditor in Rockville, Md. He sells a kilowatt meter for about $30 at his store, Ecobeco (see the site at Ecobeco.com). Walder said it might surprise you, for instance, just how many kilowatts your cable box uses - it can add up to $30 to $50 a year.CURB IT - AND SAVEWhether or not you decide to shell out for energy measurement devices, you can save money on your utility bill with some simple steps to reduce your home's energy use.A smart strip, for instance, eliminates vampire energy - the energy devices consume when they're switched off. Smart strips, which retail for about $30, plug into the wall and also work as surge protectors. The strip's sensor cuts the power to devices plugged into it when they're switched off.Next, check doors and windows for gaps around the frames. "Insulation is important any time of year, but in the summer you don't want to waste all that energy on AC that's just going to escape through your door," Simchak said.Walder suggests looking at windows and doors every season. Many of the air gaps you find can be sealed with caulk or spray foam.Black and Decker sells a thermal leak detector that shines a red light on walls; the color of the light will change to blue to indicate a hot or cold spot. But Walder said the $50 device has its limits: It can only cover a few inches of wall at a time so you may not always get a reading of exactly where the air is coming from.Covering pipes and water heaters with special wrapping is another cheap way to save on energy this summer. Water heaters usually are in basements that remain cool even during summer, so they must consume energy to maintain their high temperatures. Putting a thermal barrier around a heater helps it work less, and that can save you money.Soon after buying a house earlier this year, Simchak said he spent about $10 buying foam to wrap exposed pipes. "I was able to get at about half of the hot-water pipes in my house," he said.Walder and Simchak highly recommend buying a programmable thermostat to better regulate your use of your air conditioner, and the heating system in winter.You can save around 10 percent a year on energy bills simply by lowering your thermostat by 10 percent to 15 percent for a minimum of eight hours, Walder said.LITTLE THINGS HELPSome other low-cost or free energy-saving moves: Put thicker curtains around windows in summer (including in an unfinished attic) to keep out the sun. Regularly dust off the coils under your refrigerator so it doesn't have to work as hard to stay cool. Install low-flow faucets (with an aerator so the water doesn't just trickle out). Replace incandescent light bulbs with more-efficient fluorescent or LED ones. Consider checking out Microsoft-Hohm.com. The website details the average energy use of homes nationwide. Simchak said these energy-saving steps don't require technical know-how. "I haven't done anything a normal person can't do," he said. "It takes a little time and effort. But with all these products available, regular folks can do them just fine."(c) 2010, MarketWatch.com Inc.Distributed by McClatchy-Tribune Information Services.Ken Hunter, REALTOR (832) 515-9951 Ken@KenHunterREALTOR.com Better Homes and Gardens Real Estate|GARY GREENE Serving Northwest Harris and Southwest Montgomery Counties Greater Houston Metroplex