Wednesday, November 25, 2009
Be Thankful for the Most Important Things in Life
I asked a long time friend and local builder how his business was doing. He said that it sucked, but everything else was great!
He said that he and his wife were having more fun together than ever. They were spending long week-ends away and hiking the trails around their new home. He took the time to take a two- week trip with his teen-aged son, just the two of them. He has been able to keep his promises to help his friends with their building projects. He even framed in a set of stairs, something he hasn’t done for twenty years. (He felt pretty darn good about it)
He said his bills are getting paid on time and his family and friends are all healthy and happy!
I told him that it sounded like the most important things in his life were great. He agreed. He realized that it was a good thing that he had “everything else.”
If you think that you have nothing to be thankful for, take a closer look! It’s more than a matter of good home $$’s and sense!
Happy Thanksgiving!
Visit me at:
www.seehometown.com
He said that he and his wife were having more fun together than ever. They were spending long week-ends away and hiking the trails around their new home. He took the time to take a two- week trip with his teen-aged son, just the two of them. He has been able to keep his promises to help his friends with their building projects. He even framed in a set of stairs, something he hasn’t done for twenty years. (He felt pretty darn good about it)
He said his bills are getting paid on time and his family and friends are all healthy and happy!
I told him that it sounded like the most important things in his life were great. He agreed. He realized that it was a good thing that he had “everything else.”
If you think that you have nothing to be thankful for, take a closer look! It’s more than a matter of good home $$’s and sense!
Happy Thanksgiving!
Visit me at:
www.seehometown.com
Tuesday, November 24, 2009
Retirees Have Options in Today’s Market
Dear Sue,
My husband and I are in our seventies. We know that we will be in our eighties at the blink of an eye.
We love and have lived in the Auburn area our entire lives. We bought our second to the last home about ten years ago.
Yes, you heard me right. We bought a bigger home than we needed. Our plan was to let our home appreciate over five years or so and then sell it and buy a smaller less expensive home that we could retire in. We planned on taking advantage of the capital gains law where you can make a profit of up to $500,000.00 on your personal residence and not have to pay any taxes.
Obviously our plan has backfired. We keep waiting for the market to turn around but it just seems to get worse and we seem to get older. I forgot to mention that our home is on a slope and it is a two story. At our age I don’t think we have the time for the market to come back.
We are at a loss. We don’t know what to do or who to turn to for help!
Aging Angie
Dear Angie
Many aging homeowners are in a similar situation. Some of these seniors are upside down or “under water” in their present homes. If they have been current on their payments and have good credit and sufficient income they can complete a short sale and then actually buy another home immediately after they close their short sale escrow if they use FHA financing.
Since you purchased your home ten years ago and assuming that you didn’t refinance and take out all of your equity, you should be in a good equity position. If this is the case I would recommend that you sell your home and buy a smaller home that you find more suitable for retirement. You may sell your home for less money than you had planned on but keep in mind you will be buying for less money as well. This is referred to as a lateral move.
I have seen some amazing bargains in today’s market. One can buy a new 3 bedroom, 2 baths, 1900 sq ft. single level home in Auburn for just $275,000.00.00. That was unheard of just three years ago! You can get better deals if you are willing to move to Lincoln, Rocklin or Roseville.
Some seniors currently residing in the homes they have retired in have lost income from their savings or investments. These seniors now have the reverse mortgage option. That is a program where the lender pays the homeowner a lump sum or scheduled monthly payments. The homeowner can stay where they are until they die.
The place to start is with a trusted financial planner. Understand the ins and outs of reverse mortgages. Weigh all of your options, do the math. Choose the option that meets your needs and then make a plan.
If you think you want to sell your current home and buy a home that meets your retirement needs you will need information. Select a skilled and patient Realtor that can give you a fair market evaluation of your current home. Have her/him show you the homes that are available on the market that may work for your retirement. Make sure that it makes financial sense before you put your home on the market. Doing the homework will be a matter of good home $$’s and Sense!
My husband and I are in our seventies. We know that we will be in our eighties at the blink of an eye.
We love and have lived in the Auburn area our entire lives. We bought our second to the last home about ten years ago.
Yes, you heard me right. We bought a bigger home than we needed. Our plan was to let our home appreciate over five years or so and then sell it and buy a smaller less expensive home that we could retire in. We planned on taking advantage of the capital gains law where you can make a profit of up to $500,000.00 on your personal residence and not have to pay any taxes.
Obviously our plan has backfired. We keep waiting for the market to turn around but it just seems to get worse and we seem to get older. I forgot to mention that our home is on a slope and it is a two story. At our age I don’t think we have the time for the market to come back.
We are at a loss. We don’t know what to do or who to turn to for help!
Aging Angie
Dear Angie
Many aging homeowners are in a similar situation. Some of these seniors are upside down or “under water” in their present homes. If they have been current on their payments and have good credit and sufficient income they can complete a short sale and then actually buy another home immediately after they close their short sale escrow if they use FHA financing.
Since you purchased your home ten years ago and assuming that you didn’t refinance and take out all of your equity, you should be in a good equity position. If this is the case I would recommend that you sell your home and buy a smaller home that you find more suitable for retirement. You may sell your home for less money than you had planned on but keep in mind you will be buying for less money as well. This is referred to as a lateral move.
I have seen some amazing bargains in today’s market. One can buy a new 3 bedroom, 2 baths, 1900 sq ft. single level home in Auburn for just $275,000.00.00. That was unheard of just three years ago! You can get better deals if you are willing to move to Lincoln, Rocklin or Roseville.
Some seniors currently residing in the homes they have retired in have lost income from their savings or investments. These seniors now have the reverse mortgage option. That is a program where the lender pays the homeowner a lump sum or scheduled monthly payments. The homeowner can stay where they are until they die.
The place to start is with a trusted financial planner. Understand the ins and outs of reverse mortgages. Weigh all of your options, do the math. Choose the option that meets your needs and then make a plan.
If you think you want to sell your current home and buy a home that meets your retirement needs you will need information. Select a skilled and patient Realtor that can give you a fair market evaluation of your current home. Have her/him show you the homes that are available on the market that may work for your retirement. Make sure that it makes financial sense before you put your home on the market. Doing the homework will be a matter of good home $$’s and Sense!
Wednesday, November 11, 2009
Homeowners Horror Story
Dear Sue,
I refinanced my home three years ago. I got one of those pick-a-payment loans and made the lowest monthly payment possible. My loan is due to adjust to a 30 year fully amortized loan where I have no payment options.
When I got this loan three years ago I planned on having the option to refinance because I knew that I wouldn’t be able to afford the adjusted payment. Little did I know that stated income loans would be discontinued!
Hoping for a loan modification and finding the process intimidating, I went to an attorney who promised to get it done. I gave him $2500.00. He closed his office and took my money with him.
A friend of mine suggested that I go directly to the bank and negotiate the loan modification myself. I took her advice and started the process a year ago. The bank representative told me to stop making my payments. I did as she asked. I put the money in a savings account.
We have been in communications at least twice a week. They reassured me that I would be getting my loan modification any day. Every day it was any day.
Last week a man came to my door and posted a notice of sale. He also told me that I shouldn’t just send the past due money in because in his experience, the banks pocket the money and go ahead and sell the house anyway! He said that I should get a lawyer to help make sure that my loan was reinstated.
I called my lender demanding to speak to a supervisor or anyone that could get this fiasco straightened out. When I finally got someone on the phone they said that there was nothing in my file. No communications. Nothing.
Based on my previous experience with a lawyer, I was reluctant to talk to another one. I knew that I had to do something quickly so I asked a good friend for a referral. I met with the real estate attorney yesterday.
He told me that I needed more paper work to him before he could help me.
Sue, I hope that my story will help others. I plan to keep you posted.
Jerked Around Jim
Dear Jim,
I appreciate the opportunity to share your horrible experience. I see many lessons in your story.
Avoid making financial decisions predicated on something changing in the future unless you enjoy gambling.
Never stop making payments on your loan.
Never pay an up front fee for a loan modification to an attorney or anyone else for that matter. Unscrupulous people come out from under their rocks when they see an opportunity to prey on desperation. Fortunately it is now illegal to accept advance fees for loan modifications.
I can only hope that your lender acted out of good faith. Lenders are not prepared for today’s onslaught of loan modification and short sale requests. Their representatives are learning as they go. The internal communications of lenders is overwhelmed. The loan modification department doesn’t know what the foreclosure department is doing.
Please keep me updated as to the outcome of your saga!
In today’s lending environment it’s hard to make good home $$’s and Sense!
I refinanced my home three years ago. I got one of those pick-a-payment loans and made the lowest monthly payment possible. My loan is due to adjust to a 30 year fully amortized loan where I have no payment options.
When I got this loan three years ago I planned on having the option to refinance because I knew that I wouldn’t be able to afford the adjusted payment. Little did I know that stated income loans would be discontinued!
Hoping for a loan modification and finding the process intimidating, I went to an attorney who promised to get it done. I gave him $2500.00. He closed his office and took my money with him.
A friend of mine suggested that I go directly to the bank and negotiate the loan modification myself. I took her advice and started the process a year ago. The bank representative told me to stop making my payments. I did as she asked. I put the money in a savings account.
We have been in communications at least twice a week. They reassured me that I would be getting my loan modification any day. Every day it was any day.
Last week a man came to my door and posted a notice of sale. He also told me that I shouldn’t just send the past due money in because in his experience, the banks pocket the money and go ahead and sell the house anyway! He said that I should get a lawyer to help make sure that my loan was reinstated.
I called my lender demanding to speak to a supervisor or anyone that could get this fiasco straightened out. When I finally got someone on the phone they said that there was nothing in my file. No communications. Nothing.
Based on my previous experience with a lawyer, I was reluctant to talk to another one. I knew that I had to do something quickly so I asked a good friend for a referral. I met with the real estate attorney yesterday.
He told me that I needed more paper work to him before he could help me.
Sue, I hope that my story will help others. I plan to keep you posted.
Jerked Around Jim
Dear Jim,
I appreciate the opportunity to share your horrible experience. I see many lessons in your story.
Avoid making financial decisions predicated on something changing in the future unless you enjoy gambling.
Never stop making payments on your loan.
Never pay an up front fee for a loan modification to an attorney or anyone else for that matter. Unscrupulous people come out from under their rocks when they see an opportunity to prey on desperation. Fortunately it is now illegal to accept advance fees for loan modifications.
I can only hope that your lender acted out of good faith. Lenders are not prepared for today’s onslaught of loan modification and short sale requests. Their representatives are learning as they go. The internal communications of lenders is overwhelmed. The loan modification department doesn’t know what the foreclosure department is doing.
Please keep me updated as to the outcome of your saga!
In today’s lending environment it’s hard to make good home $$’s and Sense!
Let Your Agent Do Their Job!
Dear Sue,
I just put my home up for sale. My agent asked that I make myself scarce when my home is being shown.
I didn’t believe that she was serious. I really thought she was joking. When I had my first showing I had to point out some things that the agent wasn’t telling the buyers about. The buyers seemed to like my assistance.
It wasn’t but two hours later that I received a call from my agent scolding me (in a nice way) for being present when the buyers were there. I explained to her that the agent wasn’t telling the buyers everything they needed to know about my house. She still insisted that I not be there when my house is being shown.
I don’t understand it. I know more about my house than anyone else. Can you please explain to me why I shouldn’t be the one showing my own house?
Baffled Bev
Dear Bev,
Your agent is right. You shouldn’t be present when your home is being shown. There are many reasons. I will share some examples with you.
Most people don’t understand that the sales process begins the very moment the agent meets the potential buyer. The buyer’s agent is asking “open ended” questions throughout the entire process. The answers to those questions are what guide the agent through the selling process.
For example, the agent may ask a retired couple, “How do you feel about being in a neighborhood where there are children?”
The buyer’s response may be “We would love it, our grandchildren will have someone to play with!”
The buyer’s agent knows that there are several retired homeowners in your neighborhood. The agent also knows that they have grandchildren that visit. Problem solved.
So the buyer’s agent makes an appointment to show your home. You greet them and tell them that you will stick around just in case they have any questions. Mr. and Mrs. Buyer ask you, “Are there any children in the neighborhood?”
Assuming that they are older and may want peace and quiet you unwittingly say, “No we don’t have any children in our neighborhood. We enjoy the peace and quiet.”
Mr. and Mrs. Buyer are disappointed and go on to the next property on the show list.
Another example; Mr. and Mrs. Potential buyer tell their agent that they want a great room concept. They also want 5 acres with a pond. The buyer’s agent knows that your house meets all of the criteria except for the great room. The buyer’s agent knows that if a wall was taken down; presto, a great room!
The buyer’s agent makes an appointment to show your home. You greet them and let them know that you will be there to answer any questions that they may have. Mr. and Mrs. Buyer don’t say a word. They are thinking that their agent doesn’t listen. You are pointing out all of the great features. The agent is afraid to talk to the buyers about tearing down the wall that separates the family room from the living room. The entire showing is a bust!
I believe that potential buyers need to “try on” a home before they feel comfortable enough to make an offer. Potential buyers feel very inhibited when sellers are hovering over them. They are reluctant to open closet doors and kitchen cabinets. They are afraid to ask questions. They feel intrusive. I have that same feeling when I am trying on clothing and the store clerk won’t leave my dressing room. I will just leave without buying anything.
You may know your home better than anyone but believe me your agent will show it better than anyone. Your agent will have listed your property features in the MLS. You can help the buyer’s agent by making a list and further describing the many features that your home offers. Display photos of the fabulous sunrises and sunsets and the roses at their best.
Understanding the sales process and letting the buyers agent do the showing is a matter of good home dollars and sense!
I just put my home up for sale. My agent asked that I make myself scarce when my home is being shown.
I didn’t believe that she was serious. I really thought she was joking. When I had my first showing I had to point out some things that the agent wasn’t telling the buyers about. The buyers seemed to like my assistance.
It wasn’t but two hours later that I received a call from my agent scolding me (in a nice way) for being present when the buyers were there. I explained to her that the agent wasn’t telling the buyers everything they needed to know about my house. She still insisted that I not be there when my house is being shown.
I don’t understand it. I know more about my house than anyone else. Can you please explain to me why I shouldn’t be the one showing my own house?
Baffled Bev
Dear Bev,
Your agent is right. You shouldn’t be present when your home is being shown. There are many reasons. I will share some examples with you.
Most people don’t understand that the sales process begins the very moment the agent meets the potential buyer. The buyer’s agent is asking “open ended” questions throughout the entire process. The answers to those questions are what guide the agent through the selling process.
For example, the agent may ask a retired couple, “How do you feel about being in a neighborhood where there are children?”
The buyer’s response may be “We would love it, our grandchildren will have someone to play with!”
The buyer’s agent knows that there are several retired homeowners in your neighborhood. The agent also knows that they have grandchildren that visit. Problem solved.
So the buyer’s agent makes an appointment to show your home. You greet them and tell them that you will stick around just in case they have any questions. Mr. and Mrs. Buyer ask you, “Are there any children in the neighborhood?”
Assuming that they are older and may want peace and quiet you unwittingly say, “No we don’t have any children in our neighborhood. We enjoy the peace and quiet.”
Mr. and Mrs. Buyer are disappointed and go on to the next property on the show list.
Another example; Mr. and Mrs. Potential buyer tell their agent that they want a great room concept. They also want 5 acres with a pond. The buyer’s agent knows that your house meets all of the criteria except for the great room. The buyer’s agent knows that if a wall was taken down; presto, a great room!
The buyer’s agent makes an appointment to show your home. You greet them and let them know that you will be there to answer any questions that they may have. Mr. and Mrs. Buyer don’t say a word. They are thinking that their agent doesn’t listen. You are pointing out all of the great features. The agent is afraid to talk to the buyers about tearing down the wall that separates the family room from the living room. The entire showing is a bust!
I believe that potential buyers need to “try on” a home before they feel comfortable enough to make an offer. Potential buyers feel very inhibited when sellers are hovering over them. They are reluctant to open closet doors and kitchen cabinets. They are afraid to ask questions. They feel intrusive. I have that same feeling when I am trying on clothing and the store clerk won’t leave my dressing room. I will just leave without buying anything.
You may know your home better than anyone but believe me your agent will show it better than anyone. Your agent will have listed your property features in the MLS. You can help the buyer’s agent by making a list and further describing the many features that your home offers. Display photos of the fabulous sunrises and sunsets and the roses at their best.
Understanding the sales process and letting the buyers agent do the showing is a matter of good home dollars and sense!
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