Gene Perez Your Real Estate Consultant, Santa Maria Homes: February 2010

The home selling business is a very serious business - especially in today's buyers' market. Buyers have not been very forgiving lately. Once they come through your home and if it is not at its top condition, they just turn around and walk out. No second chances in this home selling business. Hence, it is important to make sure you do not overlook even at the smallest nooks in your home. Here are some tips in how to prepare your home when first impression counts:

Curb Appeal in Exterior Landscaping

• Add top soil and lots of mulch. There’s nothing like a fresh coat of mulch to show the buyers you care about the little details of your home.
• Add lavish colored annuals in flowerbeds so Buyers can start appreciating the yard while waiting for the agent to open the door.
• Mow yard regularly and make sure lawn looks well-manicured and groomed.
• As spring begins to start, double bag the fertilizer. Get it started soon.
• Make sure yard is weed-free including the flowerbeds.

Front Door/ Front porch

• Clean and polish the front door until it shines. First impression counts.
• Power wash the porch and walls.
• Front porch is clean. Also look up and remove dirt, spider webs, etc.
• Check to make sure door is easy to unlock. If not, lubricate it.
• Remove hoses.
• Replace broken door bell, if applicable.

Foyer/ Hallway

• Coat closet - Remove clothing and items so buyers can view how much storage is in there.

Formal Living/ Great Room/ Formal Dining

• If there are too much furniture, remove and simplify.
• Remove children's toys
• Use greenery/ silk plants to draw the eye in.
• Put a large artwork above the fireplace (rather than small items).

Kitchen

• It is a HUGE reason why buyers buy one house versus another.
• Polish the kitchen cabinets until they shine.
• Declutter and leave no items on the countertops. [Hint: Selling kitchen counterspace, not your items.]
• Kitchen pantry - All cans and items turned in one direction and in neat rows. Yes, be obsessive compulsive. Be Mr. Monk!

Master Bedroom/ Bathroom

• Showcase it as if it is a retreat. Minimize furniture.
• Clear bathroom countertops.
• Store toothbrushes, toothpaste, towels away.
• Bathroom shower must be clean and spotless.
• Remove perfume bottles and jewelry. They are more distractions to buyers.
• Closets must be neat and with minimal clothing. Color coordinate the clothes. It will leave a long lasting impression with buyers.
• Do the same with linens and towels. Make sure they are folded beautifully and neatly stored away. Buyers will think - if you cared about the little things, what more would you care about the house.

 

The great/family room, kitchen and master bedrooms are the most important rooms in the home. It must be showcased meticulously and give no reason to buyers not to write an offer for the house. Nothing beats a clean house. If your property is exceptionally clean, you probably beat half your competition. Either pay for a professional clean, or get it steam-cleaned yourself. Power wash the exterior and porches, clean the ceiling fans, vents, ledges, baseboards and make sure they are kept dust-free during your buyers' visits.

 

 

Loreena Yeo and 3:16 team REALTY employ the Systematic Market Approach to Home Selling in the greater Frisco TX areas. We have successfully sold every single home we listed today, except for one. The homeowner who became very ill decided not to sell his house until his health gets better. Read satisfied client testimonials of the Systematic Market Approach Home Marketing plan.

 

Related Articles:

• Pricing Motivation into Home Prices
• My Secrets to Selling in 30 days
• The 5 Senses of Home Selling
• When Sold is the Only Acceptable Outcome
• What Every Seller Needs to Know about Home Selling These Days

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Loreena Yeo
Frisco TX Realtor® / Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

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Copyright © 2010 by Loreena Yeo (3:16 team REALTY).
Originally Posted on How to Prepare Your Home For Sale When First Impression Counts

OneWest Bank Releases Their First Year Profit Statement $1.6 Billion- You Won't Believe This One!

Kudos to Scott Reckard with the LA Times.  He wrote an article today that is sure to open some eyes.  The article, titled "OneWest Bank Profit: $1.6 Billion" does an excellent job of pointing out some very interesting observations.

According to the article, OneWest paid the FDIC $1.55 Billion for the failed IndyMac Bank, and turned a profit of $1.57 Billion in it's first year.  The article specifically addresses the shared-loss agreement that was also put in place by the FDIC, which is expected to cost the FDIC nearly $11 Billion.

The reason I'm posting this article is that it dovetails perfectly into my blog titled "Is The FDIC Killing OneWest IndyMac Short Sales" in September/2009.  The blog, which ended up being the basis of the recent video produced by Think Big Work Small (without my knowledge or consent, by the way) deals with a transaction I handled for one of my clients with OneWest Bank.  Rather than go into all of the details of the blog you can read it here.  But basically, it centered on shared-loss deals, and how they are creating a disadvantage for consumers trying to accomplish loan modifications or short sales.

The FDIC was so upset with the video that they decided to issue an official press release on Friday, February 12th.  The LA Times article specifically states that the FDIC refused to comment today on the profit statement released by OneWest today.  

So let me get this straight...  The FDIC issues an official press release on a YouTube video, but doesn't want to talk to anyone about the profits OneWest just reported today, and the possible effects of the shared loss agreement they have in place with them?  Interesting.  Anyway, enjoy the article.  This story is beginning to "grow legs", as they say.  With 93 other loss share agreements in place, according to a recent Business Journal article, I'm sure this is something we will all hear more about in the very near future.

Oops, I spoke to soon!  While writing this article, I just found out that the FDIC just issued ANOTHER press release, this time announcing that they just sold La Jolla Bank in La Jolla, CA to, guess who?  You got it, OneWest Bank!  And guess what?  That's right, they signed yet another Loss Share Agreement with them as well.  Well, that makes a total of 95 loss share agreements, and counting!

Folks, it's time to stop this madness.  The LA Times article shows what this program is costing the American Taxpayer.  Some, like the FDIC (and their banker buddies) will tell us time and time again that the FDIC receives no taxpayer dollars, and is funded wholly by the FDIC premiums charged to the banks.  Think about it... When banks have to pay more for increased premiums, where do you think they get the money?  Quite simply, they raise their rates to YOU, the consumer, to cover these additional expenses.  And, when they finally run out of money, they have a nice little $500 Billion "Credit Card" they can use at the U.S. Treasury.  Where do you think this money comes from?  Correct...  YOU, the taxpayer.

So do your part and help spread the word.  It's time to stop asking questions, and start demanding answers from our fearless leaders in Washington.  Don't just read this and get mad.  Read this and share it with all you know.

Bob Hertzog

www.foreclosureuturn.com

Washington DC (APL) February 9, 2010 - for immediate release.

The Senate agreed today to send SB 60-1A to President Obama for his signature to be signed into law. As part of the National Initiative for Market Recovery Over the Decade (NIMROD) the president leveled his sites on real estate commissions which advisers say, "artificially inflate the sales price of homes as much as 6%" and the administration believes that has contributed highly to the number of properties which are "upside down". The president is expected to sign the bill into law as early as Wednesday. In essence it places the maximum commission to both the listing agency and the buyer's representatives will be limited to a maximum of .6% of the sales price. Mrs. Pelosi indicated this would "leave over $230,000,000 on the table for equity in homes sold over the next 12 months". The plan is to protect buyers from agents who unnecessarily profit on the transactions."

Of course this report, in it's entirety, is a fabrication. However, it is almost exactly what some agents support being done to loan officers and mortgage brokers. The idea that loan officers and brokers should work for a greatly diminished income, brokers now being required to give their commission to the borrower, is just as ludicrous.

When an agent writes they support the idea of not only mortgage brokers giving the Yield Spread Premium (YSP) to the borrower at the closing table it telegraphs their lack of understanding - true comprehension - of what YSP is.

ONCE AGAIN - WHAT YSP IS NOT

The conception is that YSP is something evil stacked on top of the fees and passed to the borrower. I was a broker for about a decade before I became a lender and can assure you YSP is no more easily abused than gas prices, food prices or real estate commissions. Did it get abused? Yes. So have real estate commissions. I have seen agency commissions in excess of 10% on HUD1s. Is it up to me to say that is abusive? No. Who knows what the agent and the seller negotiated? Maybe it included the agent paying for a 30 minute infomercial to be aired on broadcast television.

YSP is not something completely different than banks make. It's call profit. It's what makes people want to go to work and succeed. YSP is the victim of a very evil campaign - and yes I do believe it is evil - as a result of some greedy (and equally evil) rogue mortgage brokerages who did truly capitalize on unwary borrowers. But who are we to say they didn't work five times as hard to get those loans approved as I may have worked to get my loans approved.

Businesses must profit in order to survive or money must be taken from the citizens to support that business through a social program. In simple terms this is called Marxism. Marxism used to be something we passionately opposed but today we have many Marxists leaders making policy.

Here's the biggest lie of all - elimination of YSP was done to help the poor, innocent buyers. That is an absolute lie. If you don't believe me then let something like the above faked news report happen and see how the NAR and every Realtor in America gets up in arms. Don't you dare insinuate for one second that YSP is any different than real estate commission. Don't you dare. Let Congress challenge banks on the profit we make from selling loans on the secondary market - all hell would break loose from the MBA and other banking organizations.

The attack on YSP has been ruthless and will do absolutely nothing to help the economy (in fact it could hurt it) or the home buyer. The elimination of YSP has one purpose: cripple the mortgage brokerage industry and get them out of the sphere of aggressive competition with the banks. I know, there are bloviating, empty headed pundits who would verbally abuse you for that statement but it does not make it any less fact.

FALSE STATEMENT - "YSP is added on top of the interest rates the banks charge". False, YSP is the difference between the very competitive interest rate the borrower pays and the interest rate (called wholesale, you do know what wholesale means do you not?) the mortgage broker pays. What difference does it make how much profit the mortgage broker makes if the borrower gets a very competitive rate? Seriously?

FALSE STATEMENT - "YSP is a type of commission the banks don't make". False, YSP is not only less than the bank makes it must be approved by the bank and in most states is limited as a part of either federal Section 32 High Cost Loans or state limits through legislation such as Georgia's Fair Lending Act. Banks are virtually unlimited in the amount of profit they can make while brokers are openly restricted.

FALSE STATEMENT - "Bank interest rates are lower than broker rates". False, on apples to apples comparison brokers were actually lower through the first part of the 2000s and overall rates were very similar. Closing costs may have been a little higher at brokers because of bank fees added on to brokered loans (underwriting and funding fees).

Are there necessary regulations which make sense? Of course there are. This just happens to not be one of them. Trust me - brokers are my competition so I would not be adopting this stance if it were not demonstrably accurate on every level. Are/were there bad operators in the mortgage industry? You bet! But most of them were in the board rooms and on the trading floor.

The National Mortgage Licensing System could have been a great system ... had it been delivered equally to brokers, lenders and banks. There again the big bank lobbyists won and are given a pass. Bank loan officers are not required to pass the tests or take the classes - they only need to register.

Ken Cook - Georgia - FHA, USDA, VA and Conventional Home Loans (678) 439-8683

Fannie Mae and Freddie Mac are now requiring that borrowers obtain a H0-6 "Walls-in" coverage policy unless the Homeowners Association can document that the master policy provides the same interior unit coverage. The master policy must include replacement of improvements and betterment coverage to cover any improvements that the borrower may have made to the unit.

Master insurance for condos typically covers the building "from the studs out" and condo owners are encouraged to get an additional policy to cover the contents and finishes of their unit.  Until recently that coverage was not required as a condition of your mortgage but due to changes in lending guidelines, it is now a requirement to get a mortgage.  The coverage is called HO-6 "Walls-in" insurance.  Lenders are requiring coverage equal to 20% of the appraised value of your condo and you would then get additional coverage for your possessions.

"Walls-In" coverage is the rebuild interior aspects to a unit: Full Kitchen, Full Bathroom, Flooring, lighting, etc. If the Structure of the Condo complex burned down, the Association is ONLY responsible (in most all cases) to reconstruct the Building, the unit owner is responsible for the interior reconstruction.

There are three classes of assets in any home. The first is the exterior structural components, i.e. the walls and roof. Homeowners Associations cover this part of the property with their master insurance policy. Generally all state laws require an association to have only a "bare walls" policy

The second class of assets includes all of your personal property including furniture, art, books, clothing, and other personal possessions. If you are a buyer you will want to have this kind of policy.

The third class does not generally occur for people. This class of asset includes all the interior items that are still attached to the home. This includes plumbing fixtures, cabinets, interior doors, kitchen appliances, furnace, light fixtures, wall coverings, carpet or wood or stone flooring, and everything in the bathrooms. 

It is possible that assets in this third class might have slipped through the cracks as you were considering coverage. You might have thought that the Association's policy included coverage for these items, and, indeed, some associations do, but many more do not. Some personal property policies also include some coverage, but it might be minimal.

In the event of a total loss of your home due to fire, the Association's policy would re-build the structure but leave you with "bare walls," as in an empty shell. If you had that minimal coverage on your personal insurance policy, it would scarcely pay for rebuilding the interior of your home the way it was.

Fannie Mae and Freddie Mac have finally realized this gap in coverage and have moved to close it. Lenders may even require that the insurance be part of the borrowers monthly escrow.

 

Guy Barre

Senior Mortgage Advisor

guybarre@gmail.com

Office: 310-454-6061

Cell: 310-849-3656

Fax; 310-459-07683

In California www.jumboloans.com

Nationwide www.realprohomeloans.com

 

Let's face facts...buying a foreclosure isnt exactly a simply process. In fact, some would say the entire process sucks.

But, it can actually be even worse than you thought originally for your client without recognizing these 10 simple red flags. Knowing what to look for can save your clients thousands of dollars in the long run...

1. Air Quality: The air quality inside will tell you a lot about the over-all condition of the home. Musty or dirty smells can mean mold and mildew has developed. Perhaps a water leak...perhaps a leaky roof. Make sure you include air and surface testing in your home inspection. Yes, it costs money. But, that is a few hundred dollars well spent.

2. Peeling, bubbling or discolored paint: 9 times out of 10 this is caused by moisture...moisture that can cause mold. Swelling in walls or ceilings or a musty odor immediately point to water damage. Make sure you check the major surfaces in all areas around the kitchen and bathroom and UNDER these same rooms as well.

3. Missing sinks or other fixtures: We have all seen the news stories of disgruntled home owners that have been foreclosed on tearing out kitchen cabinets, toilets, sinks, etc. Make sure that, if the home you are looking to buy is missing these things, that they were removed properly and not simply torn from the wall or floor. That is the difference between replacing a toilet and replacing a wall, a floor, some plumbing, and a toilet.

4. Unheated during the winter: If the home was winterized properly, you have nothing to worry about. But, if not...there is plenty to worry about. Without it, water in pipes can freeze cracking seals, cracking pipes (both inbound and outbound) and potentially causing major water damage. Check all water lines leading to and from water heaters and all fixtures and the drain lines leading to the main sewer line until it leaves the structure.

5. Fungus growth: Fungus requires water to grow. If you find mold, there was or is water there. However, water flows downhill. So, look for the source of the water above where you find the mold.

6. Blocked drains: Blocked pipes will cause any number of potential issues including a sewage backup. Make sure all of your drains work properly and toilets flush with no issues.

7. Older homes with lots of renovations: Check with the city. Hopefully, these major renovations are tracible by being able to pull permits for the work that was done. Many older homes had asbestos (either in the insulation or in the tiles used). Make sure that any disturbance to this type of material was handled by trained professionals and that they potential risk is eliminated.

8. Excessive painting: Any "fresh" paint is subject to inspection. Especially if they felt the need to paint the molding, doors, even the wood floors. This is one of the main ways that people try to cover up the existence of mold. Out of sight, out of mind, right?

9. Discolored subflooring: When you are inspecting the basement, make sure you look up. Check out the subfloor above your head. Make sure you look for any evidence of discoloration or darkening stain residue. Also, look for holes in the subflooring that moisture could gather and create potential hazards later. Inspect those well to ensure they are dry and dont contain mold already.

10. Dingy walls or black cobwebs: If the walls have a dingy grey film on them or the light fixtures have a thin black cobweb-type appearance, you may be dealing with soot damage. Soot damage would be from several potential sources: a previous fire; a plugged chimeny associated with a wood stove; maybe even a malfunctioning furnace. Have your chimneys professionally cleaned and make sure that the furnace is tested by people that know what they are doing.

Yeah, you can get a great deal on a foreclosed home. But, knowing what to look for when in the buying process is the difference between getting a great deal...and buying a money pit.

 

If you would like information about Real Estate Client Referrals, please contact Clint at 800-977-7058. Also, become a fan of RECR on Facebook. And, if you are on Twitter, follow Clint!

Don't read this post until you're ready to have some fun.

The advice to use keywords when you write is everywhere. Using a few phrases consistently is great for search engine optimization and it can focus your writing. On the other hand, it's easy to start sounding stale if you don't add some variety to your word choice.

Google's team developed a search and keyword tool called Wonder Wheel that generates a graphical mind map (look up Tony Buzan) of keywords and related links.  It only takes a few steps to get started. I want to warn you that this tool is so interesting and fun to work with that you are going to seriously burn some time off the clock once you begin.

Start by doing a Google search for a keyword term that you want to use on your web site or blog. I used the word "bungalow" for my example. Near the top of the page under the Google icon and just in from the left side of the page is a "show options" command with a big PLUS sign to click on. Go ahead and click the "Show options" link.

You will get a new menu running down the left side of the page. Near the bottom, circled in blue on the folowing screen shot, is the term "Wonder Wheel". Click on that.

 

Check out the completely new graphical display of information.

There's no doubt that Google knows more about keywords and related search terms than anyone else on the planet This tool lets them share that information with you in a new and mind-stimulating fashion.

Working with Wonder Wheel is easy.

If you're following along in a separate window, you should now have a circle with your initial search term in the middle and a bunch of spokes reaching out to new, but related terms.  In my case I'm searching for "bungalow" and we can see what related search terms pop up.

On this screen shot I have drawn the blue circle around the term "Craftsman bungalow" a clickable link, but you will be able to choose whichever term most interests you after you do your own search for keywords. Even at this first level of the tool, the extra terms at the end of each spoke should trigger ideas for you about keywords you can add. I find entirely new post ideas from many of the terms that are suggested. So far, a lot of fun, but once you start clicking on the links at the end of each spoke, the circle of keyword and post ideas keeps expanding.

So, I have a final screen shot that shows a second circle created by clicking a link from around the first circle. This second circle extends the the process of finding new keyword and links all over again, but the origin with your initial keyword is still intact and you can go back and click on a link from the first circle or keep adding new circles by clicking on new links.

Remember, you can always switch back to the regular web interface to see what all these links have uncovered by going back to the top left of the page and clicking on "Web".

Don't say I didn't warn you how much fun this would be.

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