Top 10 Signs That It's Time to Sell Your Home

1. When you bought your house, you lived in the country. Now you're surrounded by high rises.
2. You can't get any appliances repaired because "they stopped making those parts years ago."
3. The swing set in the backyard has sprouted roots.
4. The plumber's phone number is on your speed dial.
5. Your phone number is on your plumber's speed dial.
6. All the children's rooms are now guest bedrooms.
7. You haven't visited the other half of the house in six months.
8. You have to move the furniture to see the carpet's original color.
9. Your bathroom is a lovely shade of avocado green -- from the first time it was in style.
10. You can't make any improvements to the exterior of your home without getting approval from the Board of Historic Monuments.

Subprime Fallout: Good for Housing, Bad on Sales

Fallout from the subprime loan debacle will lead to tighter lending criteria and a healthier housing market, according to the latest forecast by the National Association of Realtors®. But higher loan standards will slow the housing recovery, NAR reports.

David Lereah, NAR’s chief economist, says the changes are necessary for the long-term health of the housing market. “We want people to be able to stay in their homes with mortgage terms they understand and can handle,” he says. “Simply stated, a loan with the lowest monthly payment probably isn’t in your best interests — borrowers need to understand worst-case scenarios. If you’re in a mortgage you aren’t comfortable with, now is an excellent time to refinance, if you can, with historically low rates on safer conventional loans.”

Last week, Freddie Mac reported the 30-year fixed-rate mortgage was 6.17 percent. The 30-year fixed rate should rise slowly to 6.6 percent by the end of this year, so borrowers who need to refinance should act soon, NAR says.

Home Sales Expectations

Tighter lending standards will dampen home sales slightly, but by less than a couple of percentage points from initial projections, Lereah says. “We still forecast 2007 to be the fourth highest year on record for existing-home sales, and housing remains a great long-term investment,” Lereah says.

Here are some of NAR’s projections for home sales:

• Existing-home sales: likely to total 6.34 million in 2007 and 6.52 million next year — in contrast with 6.48 million in 2006.
• New-home sales: projected to be at 904,000 this year and 935,000 in 2008, below the 1.05 million last year.
• Housing starts: estimated at 1.47 million in 2007 and 1.55 million next year, down from 1.80 million units in 2006.“

As home sales moderate, overall home prices will be essentially flat this year,” Lereah says. “The good news is that inventories remain well below the levels experienced during the last housing downturn in the early 1990s, and supplies are close to balance in many areas.”

The national median existing-home price will probably slip 0.7 percent to $220,300 in 2007, following a 1 percent rise last year. The median new-home price is expected to increase 0.4 percent to $246,200 this year, after gaining 1.8 percent in 2006. “When you look at housing activity in 2007, especially during the first half of this year, the percentage change in median home price is being distorted as the composition of sales shifts geographically from high-cost markets to moderately priced areas, in contrast with the sales distribution a year earlier,” Lereah says. “Within given markets, most areas can expect minor price gains.”

Overall, modest growth is expected next year, with existing-home prices increasing 1.6 percent and new-home prices rising 2 percent.Other InfluencesAdditional economic factors that can influence the housing market include:

The unemployment rate: expected to average 4.6 percent in 2007, the same as last year.

Inflation: (as measured by the Consumer Price Index) is likely to decline to 2.1 percent this year, compared with 3.2 percent in 2006, while growth in the U.S. gross domestic product is forecast at 2.3 percent in 2007, down from 3.3 percent last year.

Inflation-adjusted disposable personal income: will probably rise 3.1 percent this year, up from a gain of 2.6 percent in 2006.

— REALTOR® Magazine Online

For more housing market statistics and research reports, visit NAR's Research Department at REALTOR.org.

Simple Ways to Boost Curb Appeal

The outside of a home can be just as important as the inside in attracting buyers. Maureen Gilmer with the DIY Network offers the following five cheap and easy ways to improve curb appeal:

1. Edge it. Make the distinction crisp between lawn and flowerbed or sidewalk. Replace old edging materials with tumbled concrete payers — the heavier they are the better they stay in place.

2. Mulch it. Cover bare ground with two inches of attractive mulch.

3. Stain it. Old concrete walks, steps, and planters crack, stain, and discolor. Cover them with new colored concrete stains. The result unifies paving and mimics more expensive stone.

4. Color it. Worn out fences can give the property a black eye. Stain them with muted colors like warm gray, soft green, antique gold, or subtle blue.

5. Plant it. Buy whole flats of six packs of single color annuals.

Source: Seattle Post-Intelligencer, Maureen Gilmer (04/07/07)

Foreclosures Reshape Neighborhoods

Neighborhoods riddled with foreclosures quickly develop other kinds of problems.In fact, one foreclosure will shave up to 1.5 percent off the value of the other homes on the same block, according to research by Dan Immergluck, associate professor of city and regional planning at Georgia Institute of Technology.

Other costs are harder to measure, but municipal governments, police departments, and neighbors observe that empty homes give rise to an increase in thefts and may encourage drug dealers and even violent criminals to take advantage of the situation.

As homes fall into foreclosure, a neighborhood frequently turns more transient, analysts say. Investors often buy homes in foreclosure and rent them out if they can't sell them."You end up with a very fragmented community," says home owner Ann Fulman of Atlanta. "When investors buy them and turn them into rental property … folks come in [who] don't have the means to keep up the place."

In the Atlanta suburbs of Gwinnett County, the police department recently created a Quality of Life unit to address problems often associated with foreclosures. Working with other government agencies, the unit targets such issues as building-code enforcement, vagrancy, and graffiti.

Source: USA Today, Noelle Knox (04/13/07)

Your Top Ten Business Investments

1. Invest in your relationships with those you love. What will your success mean to you if you cannot share it with those you love? Don't make the mistake of pushing those most important to you in the name of "building your business." Your investment of time in your family and your friends is paramount to your sense of fulfillment and success.
2. Invest in a long-term personal-development program. You are your business's biggest asset. You need to incorporate activities such as attending seminars pertaining to your field and investing in tapes and CDs.
3. Invest in a sales coach. You will never know all you need to know to make every decision that arises from running a business. To succeed in sales you must remain teachable.
4. Invest in a competent right-hand assistant. More than likely, you are over qualified for the majority of the tasks that you perform. You're probably thinking that you can't afford to hire an assistant. But remember that we're talking about investing, not outspending. The real question you must consider is "Can I afford not to have an assistant?" The fact is that you will never be able to climb to the next level until you free up more time to do the things that bring your business the greatest profit.
5. Invest in a personal image. What impressions do people have of you when you walk through the door? What impressions do people get when the view your marketing material and presentations? Presentation is everything. Lastly, ask what impression does your appearance give? I'm sure you've heard the cliché "dress for success." People want to work with successful people that they trust.
6. Invest in a personal financial plan. Just like investing in a mentor you should also invest in a meeting with a qualified, trustworthy financial advisor who can help you map out a path to financial stability and freedom.
7. Invest time in an exercise program. Your career longevity begins with your health. It's a fact that the state of your body can dramatically affect your business, especially in the sales profession.
8. Invest in a client-retention program. To be successful in business you must do more than provide customer service; you must build customer loyalty.
9. Invest in technology. You can't move forward if you're using the tools of the past. Today's technology has the capability to reach out to more people than ever before. Seize the opportunity and move your business to the next generation.
10. Invest in a library. You don't have to re-invent the wheel in your profession. There are many mentors who specialize in your area of expertise. Learn from them. A little reading can go along way. If you read only fifteen minutes every day, you will complete about fifteen books per year.

"Investing in yourself is the best investment you can ever make." - Gene Bleecker

Foreclosure Sales Can Be Risky

With the National Association of Realtors® estimating that over 1 million homes will end up in foreclosure during the next couple of years, prospective buyers might view the situation as a means of snapping up a residence at a bargain price. However, experts note that foreclosure sales can be dicey, with the riskiest deals involving homes purchased at auction. While this format offers the greatest chance of a deep discount, buyers must provide payment at the time of the sale, making a deal without having the property inspected or an assurance that the current residents will vacate the premises. Once the bank takes possession of homes not sold at auction, buyers can purchase directly from them in a real estate owned (REO) transaction.

While inspections and title insurance are possible, buyers are not likely to receive tremendous discounts or get lenders to respond in a timely manner to their offers under these circumstance.

Those who scan public default notices and approach struggling home owners to inquire about purchasing a dwelling before it ends up in foreclosure assume the least amount of risk, experts say. And in most instances, they need only offer more than the mortgage balance but less than the market value to secure the sale. However, with large inventories of new homes in some markets providing leverages to those in the market for a property, buyers may not need to focus on foreclosures to get a good deal.

Source: USA Today, Christine Dugas (03/30/07)

FDIC issues warning about mortgage lending sales pitch

Says Community Reinvestment Act offer is bogus
Tuesday, April 03, 2007 Inman News

Some mortgage lenders are using a deceptive direct mail campaign that encourages homeowners to apply for a loan by claiming they are entitled to cash grants or equity distributions under the Community Reinvestment Act.

The Federal Deposit Insurance Corp. issued a warning Monday saying that the CRA is a real law, but that the offer is not.

Consumers have contacted the FDIC with questions and complaints after receiving solicitations suggesting there is a "Community Reinvestment Act (CRA) Program" that entitles certain homeowners to payments.

"These solicitations appear to be a deceptive effort to encourage consumers to apply for a mortgage loan secured by the consumer's home," the FDIC warned.

Enacted in 1977, the Community Reinvestment Act encourages banks and savings and loans to make credit available in low- and moderate-income neighborhoods, but does not entitle individuals to any grants or loans.

The FDIC did not identify the lenders using the ploy by name. California attorney general's office was investigating complaints from consumers about a similar direct marketing campaign.

NAR's Economist Says Tighter Loan Underwriting 'Problematic'

Current market problems and reforms in the underwriting and pricing of subprime loans, including the tightening of underwriting standards by regulators, will have a short-term impact on housing markets. That will be lessened if Congress enacts legislation to expand the roles of Fannie Mae, Freddie Mac and the Federal Housing Administration to provide more housing opportunities to lower-income homeowners and those living in high cost metropolitan areas, the National Association of REALTORS said this week.

NAR Senior Vice President and Chief Economist David Lereah predicted that tighter underwriting practices may cause total home sales to fall by about 100,000 to 250,000 nationally, or no more than three percent a year over the next two years. Many of these households will probably, over time, purchase a home when they have attained the financial capacity to do so by saving for a downpayment or growing their income.

"Foreclosures are increasing inventories in certain local markets. The projected flood of foreclosures are problematic and will add to the already loose housing supply in some local markets, but these local markets are exhibiting healthy economic activity, enabling them to be able to absorb increases in foreclosures," Lereah said.

"From a broader perspective, today's subprime problems are occurring against a backdrop of cyclically low mortgage rates and a growing, healthy economy. Jobs and liquidity are plentiful in the marketplace, suggesting that the subprime problems may be a manageable problem within our $10 trillion-plus economy," said Lereah in a commentary distributed to NAR members recently.

"Many of these households will seek mortgage loans from a revitalized FHA, from lenders making loans that meet Fannie Mae and Freddie Mac standards and from other lenders offering fair and affordable mortgage options to subprime borrowers. Remember, many of these borrowers are low-income, minorities and first-time buyers - all important participants in the home buying marketplace."

Lereah warned against overreaction to the situation. "Tougher lending standards imposed by the marketplace and the regulators are necessary, but we need to be mindful of overcorrection. Responsible lending practices are what the doctor ordered, not practices that cause a credit crunch," Lereah said.

In other news...

Pending sales of existing U.S. homes surprisingly rose in February even as bad weather and weakness in the subprime lending sector put a crimp on the housing market, according to a report released this week by the National Association of REALTORS. Pending sales were down 6.0% from a month earlier. The Pending Home Sales Index (PHSI), based on contracts signed in February, stood at 109.3 - down 8.5 percent from February 2006 when it reached 119.4, but is 0.7 percent higher than a downwardly revised reading of 108.5 in January. Earlier, mild weather caused the index to spike at 113.3 in December.

Wall Street analysts polled ahead of the realtor report were expecting the index to come in at 108.2. Jon Basile, an economist with Credit Suisse of New York, said this week's data "gives a feel that existing home sales has stabilized because they are higher than the lows of last year. At the very least, housing demand is not getting any worse."

The PHSI in the South rose 4.5 percent in February to 121.9 but was 8.0 percent below a year ago. The index in the Midwest increased 2.9 percent from January to 103.0 but was 9.7 percent lower than February 2006. The index in the Northeast slipped 1.3 percent in February to 99.1 and was 8.2 percent below a year earlier. In the West, the index fell 6.0 percent from January to 104.1 and was 8.2 percent lower than February 2006.

~~ Real Trends

New UCLA Anderson Forecast Sees Weakness

In its first quarterly report of 2007, the UCLA Anderson Forecast remains steadfast in its belief that the national economy does not face recession, though the group's economists concede that length of the current, below trend growth period leaves them "increasingly nervous." The Forecast in particular notes that, "The credit crunch in the subprime mortgage market will likely trigger a second leg down in the housing market in terms of output and prices."

In his National report, UCLA Anderson Forecast Senior Economist David Shulman remains consistent with the story the Forecast has been telling for some time, that a recession is not imminent for the U.S. economy. However, Shulman concedes that the period of below average growth will last longer than previously believed before the economy returns to normal.

Shulman's report titled, "A Long Runway for the Soft Landing," delves into the credit crunch in subprime mortgages and the impact it will have on weakness already evident in the housing market. He writes, "For a housing market that has already witnessed starts decline by 36 percent, this is not good news. We previously had thought that housing starts would bottom in the 1.4-1.5 million range; we now think the bottom could be around 1.2-1.3 million units with the risks still on the down side. Moreover, the recent weakness we have experienced in home prices will likely tend to accelerate with the nationwide peak to trough declines ranging from 5-10 percent."

On Freedom of the Press (a diversion from the real estate biz)

The following article was found at the Columbia Journalism Review. Click the Link for the entire article...

I Was a Tool of Satan
An Equal-Opportunity Offender Maps the Dark Turn of Intolerance
BY DOUG MARLETTE

Last year, I drew a cartoon that showed a man in Middle Eastern apparel at the wheel of a Ryder truck hauling a nuclear warhead. The caption read, "What Would Mohammed Drive?" Besides referring to the vehicle that Timothy McVeigh rode into Oklahoma City, the drawing was a takeoff on the "What Would Jesus Drive?" campaign created by Christian evangelicals to challenge the morality of owning gas-guzzling SUVs. The cartoon's main target, of course, was the faith-based politics of a different denomination. Predictably, the Shiite hit the fan.

Can you say "fatwa"?

*************************************
And more from Marlette...

Them damn pictures
By caving in to fanatics over the Danish cartoons, the West has shown that it is not only gutless but brainless.

Feb. 24, 2006 "Give up the cartoonists; they're in the attic." That is what many of us in the trade feel has been our lot since our brethren in Denmark were forced into hiding after drawing likenesses of the Prophet Mohammed. As art will do, "them damn pictures"-- Boss Tweed's term for Thomas Nast's cartoons from a more innocent time -- have exposed not just the internal dynamics of what some have called Islamofascism but the corresponding corruption of our own values and character in the West. Our insides have been illuminated like an electrocuted Daffy Duck in an old Warner Brothers cartoon. And we now see what we're made of: not a lot of guts, or brains either.

FLIP Tips: Buy the Book

The authors of FLIP, Rick Villani and Clay Davis, have been involved in more than 1,000 flips through their business, HomeFixers. Based on these experiences, they’ve created a list of the three biggest mistakes flippers make.

Last week’s biggest mistake was over- or under-improving a house.

This week’s tip is on the importance of making the absolute most of your money -- and your time.

FLIP TIP No. 3: Don't do too much of the rehab work yourself

Do you consider house flipping to be a hobby or a business? Villani and Davis say your answer to that question dictates how much of the work you should do yourself. If you love working on houses and think of flipping as a way to make a little money doing something you love, then by all means, hang that drywall and tile that floor. But if you look at house flipping as a business, either a side-business or your full-time job, they recommend you leave the rehab work to the professionals.
read more...

“Read this book before you flip that house. FLIP is an indispensable step-by-step guide to flipping houses that you will refer to again and again.”
-Carlos Ortiz, executive producer, Flip That House

From an exclusive partnership between Millionaire Systems, the people behind the bestselling Millionaire Real Estate series, and HomeFixers, one of the country’s leading real estate investment firms, comes FLIP. Offering a unique, five-step system, FLIP makes house flipping understandable, easy-to-implement, and very lucrative.

Buy the book from Amazon.com