Buyer's Beware

Buyer’s Beware!
The market has begun to change and the buyers are the last to know. Great homes are moving fast- clever agents are pricing them below market value which draws a feeding frenzy of multiple offers and bidding wars. The final selling price is likely higher than anyone would have previously thought. However, a good portion of buyers are laboring under the mistaken impression that prices are continuing to drop in all market areas and they can name their price. Educating these buyers as to the reality of the market is proving difficult and sellers and agents alike are getting frustrated with ridiculously lowball offers. The tide has begun to turn and a home in good condition in a desirable area is under contract before some buyers are even able to view it. So many homes that can’t be shown because of a renter or some other situation, have multiple offers before anyone has viewed them based solely on the listing details, price, and location. Watch out for the bottom- if you are diving in to the market now you might strike your head on it.

Feng Sui, Front Doors, and First Impressions

Feng Shui, Front Doors, and First Impressions
I was walking my geographic farm in Southern California, hand delivering my newsletter over Easter weekend. It is a tract home community of homes from 3 to 5 years old ranging from 1,800 to 3,100 square feet. The style of the homes is Spanish Traditional with stucco exteriors and tile roofs. As I walked, I noted the different elevations and the variety of landscaping. But the thing that struck me the most was the dismal condition of a large percentage of the front doors. The California weather is not kind to paint and the finish on the doors was mottled, stained, and faded. In addition, a large percentage of the doors were white. And the door was not the only problem with many of the entrances.
Feng Shui, the Chinese art of design and placement for optimum good energy, specifies the importance of a home’s entrance to the chi, or energy flowing into and through the home. Begin with the front door itself; color choice is important. White in Asian cultures is the color of death so that would be a poor choice. Red is considered especially auspicious and attracts prosperity and good fortune and is considered a color of high energy. Red, however, does not go well with the soft adobe and stucco neutrals prevalent in California. Earth tones are excellent choices as well. Colors in nature, soft browns, taupes, and sage would be ideal.
Next, look down and consider the doormat. How many sad and tired examples I saw this weekend! Spring calls for fresh beginnings and doormats have a definite lifespan. If there is printing on your doormat that is no longer recognizable, frayed edges, colors that have bled away, or has a motif from a long past holiday, it is time for a new welcome mat. Regard the style of your front entrance when making your doormat selection.
Now it is time to consider the accent touches. A great pot with a beautiful plant is a wonderful addition to the entrance but only if you remember to water the plant. Dead foliage or an unhealthy looking specimen is bad for the chi of the home. Be cautious about the wreath on the front door as well. It should be appropriate to the season and look vibrant- not as if the occupants are in mourning. You might consider placing a fountain near the entrance to encourage money and prosperity to flow to you. And beware placing anything thorny, spiky, or threatening as far as foliage goes- it discourages good will and good fortune.
Spring is the time of renewal and reviving a tired entrance might give your home and everyone who lives there a fresh outlook on the season.

Fairy Gardens

There are many stories about garden fairies but do you know about creating a fairy garden? A fairy garden is a special miniaturized garden scaled to fit the denizens of Faerie. The tradition of fairy gardens began in England where belief in fairies is infamous and the vagaries of a fairy’s whims are notorious
Householders began creating little gardens to placate the fairies and to bring good fortune to their home and hearth.
There are plants that fairies are known to enjoy;
A flower with a bell shape such as a snapdragon or campanula is used for a fairy dress.
Fairies like to eat the nectar from plants that produce sweet nectar like honeysuckle.
Plants with tiny leaves that are in scale to tiny beings are especially prized. Good examples are baby’s tears and Irish and scotch moss.
To bring good luck to your home try the following;
Select a secluded site or use a large round clay pot or bowl for your fairy garden. You can place Bonsai or miniature conifers (available from mail order garden sources) as the structure in your garden and fill with scotch moss for grass and tiny leaved plants for accents. Find a small house, preferably something made out of natural materials with a secretive, rustic look, to put in the garden. Tiny furniture is also appropriate as well as food plants and those they can make their garments from. Keep your garden tidy but not too much so as fairies are wild creatures and scorn the tame and meek. Place little gifts occasionally and see what happens. Watch your good fortune abound!

Stimulus Package: How REALTORS are Helping

Stimulus Package
How REALTORS are helping

When the current administration’s first stimulus proposal appeared, it looked much different than it does today. The National Association of REALTORS lobbied for several improvements that are vital to providing the best results for homeowners. NAR asked for loan limit increases to be raised in high cost areas beyond 2008. Loan limits for these areas have now been set at $729,750 for FHA, Fannie Mae, and Freddie Mac products through 2009.
The Association also asked for the original $7,500 tax credit for first time homebuyers to be higher and to be a true credit with no repayment requirement. The credit is now $8,000 with no payback unless the home is sold within 3 years of the date of purchase. This credit applies only to homes purchased during 2009. If any credit amount remains unused, the unused portion will be refunded as a check to the purchaser. This credit is available to those with a gross adjusted income of no more than $75,000 for singles or $150,000 if filing jointly. The credit applies to any single-family residence, including co-ops, condominiums and townhomes that will be used as a principal residence.
If you are a potential homebuyer anxious about your job security, there is more exciting news from The California Association of REALTORS Housing Affordability Fund Mortgage Protection Program; first time homebuyers who lose their jobs may be eligible to receive up to $1,500 per month for up to 6 months to assist in making their mortgage payments. A qualified co-buyer also can participate in the program for a reduced monthly benefit of $750 a month for up to 6 months. Program benefits also include coverage for accidental disability and a $10,000 death benefit. CAR’s Housing Affordability Fund is dedicating $1 million to the program this year, and estimates that as many as 3,000 families will benefit from the program in 2009. To qualify for this program applicant must:
Be a first time homebuyer (someone who has not owned a home for the last 3 years)
Open escrow from April 2, 2009 and close on or before December 31, 2009
Use a California REALTOR in the transaction
Purchase the property in California
Be a W-2 employee (no self employed or military)

Stimulus Package Homebuyer Credit

How REALTORS are helping

When the current administration’s first stimulus proposal appeared, it looked much different than it does today. The National Association of REALTORS lobbied for several improvements that are vital to providing the best results for homeowners. NAR asked for loan limit increases to be raised in high cost areas beyond 2008. Loan limits for these areas have now been set at $729,750 for FHA, Fannie Mae, and Freddie Mac products through 2009.
The Association also asked for the original $7,500 tax credit for first time homebuyers to be higher and to be a true credit with no repayment requirement. The credit is now $8,000 with no payback unless the home is sold within 3 years of the date of purchase. This credit applies only to homes purchased during 2009. If any credit amount remains unused, the unused portion will be refunded as a check to the purchaser. This credit is available to those with a gross adjusted income of no more than $75,000 for singles or $150,000 if filing jointly. The credit applies to any single-family residence, including co-ops, condominiums and townhomes that will be used as a principal residence.
I will tackle the refinancing aspects of the package in the next issue. For more information check out some of these helpful websites:

http://www.car.org/governmentalaffairs/federal/hrlmp/

http://www.makinghomeaffordable.gov

Black Gold

Among organic gardeners the term black gold does not refer to hitting an oil strike but the earthy result of composting. Utilizing kitchen scraps, tree trimmings, grass clippings, and other natural debris to create a compost heap is a useful and green way to keep your trash load low and save money on fertilizer. Any fruit or vegetable waste in it's raw state can go in the compost. You do not want to add cooked items or anything with grease or oil in it. Egg shells and coffee grounds are other excellent additions and if you use unbleached coffee filters, those can be added too. A good compost heap has a balance of wet and dry materials. If the pile is too dry it will not break down quickly and too wet a pile can be a bit smelly. But even so, all piles will eventually break down , sooner or later, and become beautiful, crumbly black compost. Compost is perfect for top dressing lawns, gardens, and potted plants. You can make compost tea for watering indoor plants by wrapping compost in cheesecloth and soaking it in a bucket of water. Compost improves the soil and strengthens plants, making them resistant to pest and disease. You can go on the web and find plans for building a simple bin out of wire and stakes or wood or you can go on your local home store website and order one out of recycled plastic that keeps smells contained and critters at bay. Don't forget to aerate or stir your compost to accelerate breakdown and moisten it if it becomes dry. And if you're feeling really ambitious, you can purchase special red worms that will eat your kitchen scraps and produce the finest compost you have ever seen. Composting is one small step in the greening of the planet.

I'm a cash buyer

"I'm a cash buyer". This is a phrase every real estate agent hears at least once a year. It seems in this current economy some of us are hearing it a little more often. In the past, a dutiful agent explained to the Buyer that it doesn't matter to the Seller if they are a cash buyer if the other Buyers are qualified and pre- approved for a loan. The Seller always receives cash at the end of the transaction. A low offer is not considered any better if it is presented in the form of cash. That said, times have changed. The amount of deals falling out of escrow due to failure to procure financing is substantial. Can a Seller place a monetary value on a guarantee of funds on deposit? And consider, haven't you had the experience of losing a deal before closing because the Buyer lost his job? Cash Buyer? No problem! My conclusion is that in the present state of the market perhaps Cash is King.

Greening Your Appliances

Choosing the right appliances for a new home or a remodel is easy if you apply a few simple steps. Do you know how you use the appliances you currently have? How many loads of laundry do you do a week? What kinds of laundry loads- mostly utilitarian clothing on normal cycles or would you benefit from a machine that accomadated handwashing and delicates? There are machines designed for energy efficiency like front loaders as well as top loaders that act as front loaders. Do y0u do a lot of dry cleaning? One way to help the environment and your wallet is to buy a washer that will handwash and a dryer unit that will dry flat items and those on hangers. How many dishwasher loads do you do? Are you often running a half full machine or do you have trouble fitting everything in one load? There are dishwashers that have 2 drawers you can run seperately as well as considering adding a second drawer type dishwasher in addition to a standard unit. How about the oven? Large family and lots of casseroles? There are a variety of double ovens available from 2 unit wall ovens to stoves that are double. If you are a gourmet, consider dual fuel which allows gas cooktop and electric oven for maximum efficiency. And keep in mind adding a convection oven for quicker cooking, energy efficiency and improved baked goods. Microwaves come with this option as well which can be a huge energy savings. The refridgerator needs special consideration. If you entertain a lot you might appreciate a armoire style which gives maximum shelf space to accomodate large platters. The freezer on the bottom of these units can also be larger and more efficient use of space. Remember to look for the energy star certification. Appliances use an estimated 20% of your total energy use for your home so energy efficient appliances can make a huge impact on your costs and the environment.

Where's the bottom?

It is common to hear buyers in this fluid real estate market expressing concerns about the optimum time to buy. " Where's the bottom?" is a question a lot of realtors in bubble markets are being asked. No one knows where the bottom is except for the one they are sitting on. By the time a concensus is reached on the low point of pricing in a market, it has already passed and prices have begun to climb. Fear of overpaying has kept buyers from jumping in and perhaps landing the perfect deal. One must remember that it is not only the price of the home but the payment that matters. Interest rates have crept up a little but they are still considered low. The home you could not have qualified for a year or two ago is now a nice comfortable payment. And the beauty part is that it is inevitable that prices will go up and equity will build in that home. Traditionally, real estate is not a liquid asset with quick turn arounds; it's like the stock market where trends predict the benefits of having and holding. What goes down must come up!

Energy Savings

This is the time of year when your energy bills are bound to escalate. Here are some tips to get your bills down:
Keep vents in floors and baseboards unobstructed. Move furniture away enough to allow for sufficient air flow.
Replace air filters as needed to keep too much strain off your intake.
Utilize your microwave oven for cooking. It uses a lot less energy than traditional ovens.
Have your furnace serviced. A clean unit draws less energy.
Adjust your outdoor lighting timers to accomodate time change and length of days.
Remember- conserve, conserve, conserve!