Great way to think about yourself

Santa Claus Broke our Chimney Damper

Real Estate Questions and Answers. 

Question: Our buyers recently had a home inspection performed on my home. The inspector said the fireplace damper is broken. I haven’t used my fireplace in years. We have had 17 Christmases in our home, so I'm sure the damper was damaged by the fat guy in the red suit coming down our chimney. Why should I be responsible to make that repair?

Answer:  We assume you mean Santa Claus. I think the jolly old man who brings happiness to millions of children & families every year, deserves a bit more respect from you. Since Santa visits millions of homes every year, there are bound to be a few accidents. We once had a few roof shingles break off from what was probably caused by Santa and his reindeer team. Since Santa's visits have been very special to our family, we consider this as normal Holiday maintenance and had no problem making the repairs. 

Mr. Seller, the broken damper is a safety issue. Your new buyers have every right to insist that you fix the chimney damper. Failure to do so could terminate the contract on your home. We suggest you fix the safety issue with your home, move towards a successful closing and be happy knowing that your new buyers will be safe in their new Home.

Here is something else you should know:  Blaming Santa for this broken damper is most definitely going to put you on His “Naughty List.”  You may want to reconsider your accusations.

Food for Thought

A Home is More than Just an Investment

You Want to take your Home off the Market During Christmas Time? Why?

When you look at your holiday calendars you may find the months already overloaded with seasonal obligations -- shopping, entertaining and more.  It is understandable why you would be tempted to take your home off the market during the holidays. Better to just pack it in and start fresh in January, right?                                                                                                                                                                              
NO! We feel taking your home off the market during the Christmas season is a mistake.  The house sure isn't going to sell off the market! So what is the advantage of that? So you're busy. Have your Realtor put on a lockbox. You can leave in the morning, go to work, go shopping, and let the Realtors take care of things for you.

Many people take off work sometime during the season. The husband and wife are both off and want to see houses.  We like the holidays because the buyers have more time, and they can look at homes together.                                                                                                                                                                     
Before you take your home off the market, consider the following points:

Although buyer activity may appear to slow down, the buyers who are actively looking during the holidays are more serious. The home market is no more affected at Christmas than during other "busy" period. If that were so, the market would shut down throughout the year as families concentrate on spring weddings, June graduations, summer vacations, and Fall back-to-school activities.

At Christmastime, our culture focuses on family and home. Preparing for the indoor activities of winter is one of the most enjoyable periods of family life. When is your home ever more beautiful and inviting? You have cleaned and decorated, and your home looks like a picture postcard. If the results are good enough for family and friends, they will surely be good enough to impress your buyers. Get the family team on board to do a five-minute blitz pick-up every morning to keep holiday messes to a minimum.

With reduced inventories and motivated buyers, you will have all the members of the Multiple Listing Service on your team.  If you do get a contract, you can arrange the terms to suit your needs. If moving during the holidays isn't an option, you can put in the closing date of your choice. Most people can close 30 to 60 days after a contract is written, so there is plenty of time.                                                                                              Allowing buyers to view your home during this happy season lets them better picture their own family life in the attractive environment you have created.   

52 Week Aggressive Savings Plan

Are You Investment property Ready?

Question: I am venting. We are looking to purchase a home that needs some work, but it’s amazing how many homes are past the “needs work” and into the “disgusting” category. Bad odors, torn carpeting and walls with holes…the list goes on. We can’t find anything. Any suggestions?

Answer: Let’s review this…. You are looking for a good deal, but you don’t want a home with odors, or a home that needs some work? I don’t think the distressed property market is for you. If you want a good deal on a home, you are going to have to find something that needs a lot of work. A home with odors, torn carpeting and holes in the walls and more. If the home doesn’t need work, the homeowner can sell it at fair market value which is usually always higher than what they would get in an investors market.

Finding a super deal in real estate is not easy. The overwhelming majority of homes sold would be categorized in the “fair deal” category. Fair, because Realtors price the homes correctly and appraisers ensure the buyer is not overpaying for a home in an effort to protect the lender. Fair would also mean that both the buyer and seller are satisfied with the sale terms.

If you are looking for a deal, then you need to look at homes that need work, do the math, and hope that you can make a profit by selling it for more than what you paid for it plus expenses to fix it up and sell. There is tough competition in the investor market. Everyone wants to make money selling homes.

Sometimes you can get a deal if you are a cash buyer and find a seller who does not want to deal with a buyers financing and wants a quick close.

Discuss your ideas with a Real estate Broker to see if this is really something you want and can do. 

Good Home Security Idea. This tip came from a neighborhood watch coordinator.

Put your car keys beside your bed at night.
Tell your spouse, your children, your neighbors, your parents, your Dr's office, the check-out girl at the market, everyone you run across. Put your car keys beside your bed at night.
If you hear a noise outside your home or someone trying to get in your house, just press the panic button for your car. The alarm will be set off, and the horn will continue to sound until either you turn it off or the car battery dies.

 Next time you come home for the night and you start to put your keys away, think of this: It's a security alarm system that you probably already have and requires no installation. Test it. It will go off from most everywhere inside your house and will keep honking until your battery runs down or until you reset it with the button on the key fob chain. It works if you park in your driveway or garage.

If your car alarm goes off when someone is trying to break into your house, odds are the burglar/rapist won't stick around. After a few seconds, all the neighbors will be looking out their windows to see who is out there and sure enough the criminal won't want that. And remember to carry your keys while walking to your car in a parking lot. The alarm can work the same way there. This is something that should really be shared with everyone. Maybe it could save a life or a sexual abuse crime.

Would also be useful for any emergency, such as a heart attack, where you can't reach a phone. My Mom has suggested to my Dad that he carry his car keys with him in case he falls outside and she doesn't hear him. He can activate the car alarm and then she'll know there's a problem.
This may save a life!

Is the Phoenix Area a good Investment?

Question:  I live in Indiana, but thinking about buying in the Gilbert, Chandler, Tempe areas of Phoenix, Arizona. Tell me which one will appreciate the most in the next 3 years.

Answer:  Don’t know. Wouldn’t guess. Although I happen to know those areas pretty well and see a bright real estate future in any one of those towns, there is still that risk with real estate. Prices can rise and fall. There are no guarantees—and no one knows what the future will bring.

Offensive Offer to the Seller?

Question:  A property was on the market for $260,000. The price is far higher than sales made in the past 3-4 months. We offered $205,000. This offer was rejected outright and not countered. The next day, the price dropped to $249,900.

So my question is, was our offer just offensive to the seller?

Answer:  Sellers have the right to test the market. That homes have not sold for a given price previously does not mean the owner or the owners broker were somehow wrong. Prices rise in some communities, which means someone must be the first to breach a given price level.

The marketplace will ultimately decide the value of the property. That said, buyers have a right to bid for properties according to the value they see. You, as a purchaser, may have felt that the property was worth less based on past sales, available properties, condition, location, design, etc.

How do you know what the seller will accept unless you make another written offer? A real estate transaction is a business deal – you made an offer, it was rejected and both parties can decide what they wish to do next, if anything.

Buyer Market or Sellers Market?

Question: I was talking to my neighbor and he said he isn’t selling yet because it’s a Buyers’ Market. What exactly determines a Buyers or Sellers’ Market?

Answer:  During a Sellers market, homes sell quickly and sellers have a lot of pricing power. As a result, prices rise more rapidly than at other times. During buyers markets, homes may sit on the market for a while before selling, so sellers become more flexible and may even drop their prices. The market is determined by supply and demand.

In real estate, the relationship between supply and demand is calculated as “available inventory”. At the current sales price, how long would it take to sell the total number of houses available on the market? That is how the real estate industry measures inventory.

Longer inventory times are associated with buyers markets.  Shorter inventory periods are associated with sellers markets. At this time, many local markets are still in a buyers market, but not all. For example, a town that has high inventories and lower demand may still have homes that defy the usual formula for a buyers market. These homes that are priced right and are beautiful will usually sell rather quickly compared to homes that are overpriced or lack that wow factor.

Real estate is part of a business cycle and we all know that investment returns are cyclical. Real estate is just like any other investment, it has its ups and downs.

Here is some good advice: Give your home that wow factor so you can smile and enjoy it while living in it, and then, when you are ready to sell, that same wow factor will attract more buyers at a price that will make you smile even more!

Question: There is a home down the street that is identical to mine that just sold for $9,000 more than my current list price. I am furious at my Broker and want to raise my price. I can see the home down the block has more updates, but my home is still very nice. I have included both addresses for your review. Please let me know your opinion.

Answer: Thank you for including both addresses so we can better understand your position in the market. After reviewing the information, it is pretty clear that the home down the block sold for the price it did, because of its condition.                     This home was completely updated and beautiful. Although your home appears to be very nice, you lack the updates that would yield top dollar in the market. The homeowner down the block spent thousands of dollars in updates and is entitled to top dollar. Beautiful, updated homes are in high demand and will have a higher selling price. This is the basic economics of supply and demand: High demand, higher prices.                                                                                                    We are not sure why you feel your home is worth as much as your neighbor’s home? Buyers do not care that you feel you have a nice home. They have compared homes and have decided that the other home is the better value. If your home is not selling, we would suggest that you lower the price or add updates that would yield a higher price. This should be discussed with your Broker.

It is unfortunate that you did not add these updates earlier. Not only would you have been able to enjoy these improvements, but you probably would’ve sold your home by now for a higher price than you are currently listed for.

In a Rush to Buy a Home before My Wedding Day!

Question: I'm a first time home buyer. I'm 18 years old and getting married in April to a man who is 23 years old. He has good credit but I'm afraid we won't be able to get a mortgage in time for the wedding.

He has two car loans already and his jobs aren't really that great. If you put all three of his jobs together he makes around six to seven hundred dollars a week.
Where do you think would be the best place for us to get a loan. Where is the first place we should try?

Answer: You should be congratulated for thinking ahead and your future husband should be recognized for his willingness to work.

It's not necessary to have a mortgage in place by the time you're married. In fact, it may not be a good choice. The reason is that you, at age 18, need some time to either continue your education or get a job. The first choice will increase your potential earnings while the second will help you generate dollars that can be used to build savings and pay off those pesky car loans.

Before buying a home you need to consider your local market and your preferences. Are home prices rising or falling? Is the job base growing? Is the population increasing? How will you get to work? Where will you be living in five years?

You can speak with several lenders regarding loan programs that might work for you. Once you can qualify for a program you will know how much house you can afford. Then speak with a local broker regarding properties now available that would meet your needs.

As to a new home by your wedding day, allow me to suggest that you are best served carefully examining your options and waiting until the right property is available. If that happens by your wedding day that's great; if not, that's okay too. The purchase of a home is a long-term investment, a process which should not be rushed.

 

Interest Rates are Great...Here's Why

A $200,000 fixed rate loan for 30 years at 4.5% yields a $1,013 monthly principal & interest payment.
Take this same loan with a 5.5% interest rate and the monthly payment increases to $1,136.
Not only is the monthly payment $123 per month higher, the additional interest paid over the life of the loan would be huge!
If you are thinking about buying, now is definitely the time.

In our opinion, home prices are on their way up, especially in Indiana. Take advantage of these interest rates and lower home prices. Nothing this good lasts forever.

New Home Buyer? Beware of this Mistake

After finally finding that "dream home," what buyer isn't tempted to stretch as far as possible -- and drain all available savings -- just to make the numbers work?  It's one of the big homebuyer mistakes.

Often, buyers fall in love with a property, and they try to rationalize the decision. You need to be disciplined about it.

Too often, buyers set a price range and then fall in love with something that costs more. So they figure they'll borrow the difference.

But you need a reserve fund -- something you hold back to address unexpected problems, like the refrigerator that quits in mid-July, or the "like-new" water heater that dies the day after you move in. Or the realization -- after seeing the neighbors sunbathing once too often -- that you need a privacy fence, quickly.

In most homeownership situations, there are going to be some unforeseen circumstances. So you want to make sure you have some funds behind you.

My Agent isn't Showing My Home

Question: I signed a contract to sell my house. My problem is that I have yet to see my agent with anyone at my door. We have other agents showing it. I don’t have a problem with that because we wouldn’t have any showings if it weren’t for them. When I asked my agent why he never showed my house, the response was it is a conflict of interest. Huh? I’m the one who signed the contract. Who are they working for?  

Answer:  Let’s take your concerns step by step. First, there are thousands of agents out there looking for homes for their buyers. So, obviously there is a much greater chance that other agents will show your home more than your agent. Keep in mind that 94 % of the buyers search for homes on the Internet. These buyers, if they are interested in your home, will most likely call their agent (not your agent) to show it to them.                                                                                                                                                               I suggest you review your agents marketing plan to ensure you are visible on all the popular internet home search sites, and that you are happy with the home remarks and pictures.

Second, not sure why your agent feels there is a conflict of interest in showing your home. The goal is to get your home sold. Is it possible he felt uncomfortable with this dual agency situation and had another agent from his office show your home? You need to discuss this with him. It doesn’t make sense that your agent is putting off buyers because of the “conflict of interest.” Your agent does not get paid if your home doesn’t sell.

You are now immersed in one of the biggest changes in your life….selling and moving! Communicate your concerns to your agent. We stress this with our clients. If our clients have a concern, we want to know about it!

Call your agent for a meeting to discuss his marketing plan.                                                  George Bernard Shaw once said: “The single biggest problem with communication, is the illusion that it has taken place.”

It also sounds like you are unhappy with the number of showings on your home. If you are getting a lot of internet views of your home and they are not equating to actual showings, then during this meeting with your agent, you need to review your PRICE!

4 Money Facts you need to know before you buy a home:

1. Lenders qualify buyers based on their incomes and debt-to-income ratios without considering how much the borrowers spend on items such as transportation, savings, food and other necessities.

"A lot of first-time buyers are optimistic about the future and excited about buying a home, so they borrow the absolute maximum they can afford instead of allowing themselves wiggle room for a partial loss of income or for future expenses such as children," Harrison says.

Financial experts recommend that consumers decide how much they want to spend each month on housing before meeting with a lender.

"Every buyer should create their own budget and know their limits," says Stephen Adamo, president of Weichert Financial Services.
Adamo says many first-time homebuyers experience a sizable change in their housing payments. Some new owners may go from $500 per month in rent to a monthly mortgage payment of $2,000, he says.



2. Meeting with a lender for a buyer consultation and prequalification for a mortgage should be the first step toward homeownership. Yet many first-time homebuyers wait until they are ready to start house hunting before contacting a lender.

"It's never too early to set up a free buyer consultation with a lender," Adamo says. "Every buyer needs to get prequalified early enough in the process so that they can make some changes if they need to or correct errors on their credit report."

Some buyers may need to spend up to a year saving more money, increasing their incomes or cleaning up their credit before making an offer on a home.

A buyer consultation should include creating long-term financial goals and strategies for buying property, Adamo says.



3. While most consumers know it's important to have a high credit score, not everyone understands how costly a low score can be.

"All mortgage lending is done with a tier of interest rates and terms based on consumer credit scores," Harrison says.

Borrowers with credit scores of 740 and above tend to get the lowest rates and fees, saving potentially thousands of dollars. Mortgage-related fees usually are a little higher for credit scores from 720 to 739, and they go up for every 20-point downward increment in credit scores. Interest rates can go up, too. Consumers should learn about credit scores the minute they start working, Harrison says.

Even after a mortgage approval, consumers must avoid applying for new credit or taking on new debt, Adamo says, because a second credit check is often required before settlement.



4. First-time homebuyers today typically opt for a 30-year fixed-rate mortgage.

But Harrison says home loan alternatives to a 30-year fixed sometimes make more sense. For example, buyers who are certain their companies will relocate them within five years may find a 5/1 adjustable-rate mortgage "could be a much better mortgage," he says.

"There's no reason to pay a premium for a product you don't need like a 30-year loan," Harrison says.

Homebuyers eager to build equity in their homes or who are older and want to live mortgage-free in retirement should consider a 15-year fixed-rate loan or, if they can afford it, even a 10-year mortgage to reach their goals.

St Patrick's day Wearing of the Green

Wearing of the green

On St Patrick's Day it is customary to wear shamrocks and/or green clothing or accessories (the "wearing of the green"). St Patrick is said to have used the shamrock, a three-leaved plant, to explain the Holy Trinity to the pagan Irish^:  The Father, The Son and the Holy Ghost. This story first appears in writing in 1726, though it may be older.

The colour green has been associated with Ireland since at least the 1640s, when the green harp flag was used by the Irish Catholic Confederation. Green ribbons and shamrocks have been worn on St Patrick's Day since at least the 1680s. The Friendly Brothers of St Patrick, an Irish fraternity founded in about 1750, adopted green as its color. However, when the Order of St. Patrick—an Anglo-Irish chivalric order—was founded in 1783 it adopted blue as its colour, which led to blue being associated with St Patrick. During the 1790s, green would become associated with Irish nationalism, due to its use by the United Irishmen. This was a republican organisation—led mostly by Protestants but with many Catholic members—who launched a rebellion in 1798 against British rule. The phrase "wearing of the green" comes from a song of the same name, which laments United Irishmen supporters being persecuted for wearing green. Throughout the 19th and 20th centuries, the colour green and its association with St Patrick's Day grew.

Moving in Tips, Things you Should Do

From House Logic:

1. Change the locks. You really don’t know who else has keys to your home, so change the locks. That ensures you’re the only person who has access. Install new deadbolts yourself for as little as $10 per lock, or call a locksmith — if you supply the new locks, they typically charge about $20-$30 per lock for labor.
2. Check for plumbing leaks. Your home inspector should do this for you before closing, but it never hurts to double-check. I didn’t have any leaks to fix, but when checking my kitchen sink, I did discover the sink sprayer was broken. I replaced it for under $20.
Keep an eye out for dripping faucets and running toilets, and check your water heater for signs of a leak. 
Here’s a neat trick: Check your water meter at the beginning and end of a two-hour window in which no water is being used in your house. If the reading is different, you have a leak.
3. Steam clean carpets. Do this before you move your furniture in, and your new home life will be off to a fresh start. You can pay a professional carpet cleaning service — you’ll pay about $50 per room; most services require a minimum of about $100 before they’ll come out — or you can rent a steam cleaner for about $30 per day and do the work yourself. I was able to save some money by borrowing a steam cleaner from a friend. 
4. Wipe out your cabinets. Another no-brainer before you move in your dishes and bathroom supplies. Make sure to wipe inside and out, preferably with a non-toxic cleaner, and replace contact paper if necessary. 
When I cleaned my kitchen cabinets, I found an unpleasant surprise: Mouse poop. Which leads me to my next tip

5. Give critters the heave-ho. That includes mice, rats, bats, termites, roaches, and any other uninvited guests. There are any number of DIY ways to get rid of pests, but if you need to bring out the big guns, an initial visit from a pest removal service will run you $100-$300, followed by monthly or quarterly visits at about $50 each time.

For my mousy enemies, I strategically placed poison packets around the kitchen, and I haven’t found any carcasses or any more poop, so the droppings I found must have been old. I might owe a debt of gratitude to the snake that lives under my back deck, but I prefer not to think about him.

Home of the Week: Stunning Condo in Fifty Shades of Grey Building

https://www.youtube.com/watch?v=KJD_t0u3FBM


Check out this Beautiful Condo!

You will enjoy this new Coldwell Banker Commercial. Waiting for you to come Home

https://www.youtube.com/watch?v=uVGLpeftwYI

Click on the Norton Safe Link. You will Enjoy this Commercial.

Check out the Monthly Real Estate Market Report for your Area

http://www.coldwellbankeronline.com/MarketWatch/default.aspx

1. Click on the Norton Safe Link

2. Choose your region: IL South suburbs or Indiana

3. Choose your Town.

Note that January is typically the slowest month of the year. We expect another excellent year for Real Estate Sales.

This Could be a Great Year to buy Real Estate!

First off, Home loan rates have fallen to their lowest level since June 2013-- and that means your monthly payment and long term interest expense will be reduced by a lot! 2nd, with home values on the rise, now is the time to buy. If you are even thinking of purchasing a home,  do your research. Go on the Internet. Go to Coldwell Bankeronline.com. It is an excellent search site. Call us, we will email you what is available that meets all your next homes criteria. We can even set you up on automatic email, so when the exact home you are looking for, with all the features you want, becomes available, it will be sent to you.  Not any home, just the exact home you are looking for. Perhaps a home located in a certain area. Or that home with a lake view. Why search through all homes that don't meet your needs and desires. Our filtered search send you only the homes that meet your specifications.

Multiple Offer Situations

Question: We recently put a bid on a home. Our Real estate agent told us that we had to sign a multiple offer form and that we should increase our offer if we have any chance of getting this home. We did not increase our offer and we did not get the home. I am still confused about this. Could you explain?

 

Answer:  It is normal practice for a Realtor to inform all buyers in writing, that this is a multiple offer situation. It notifies the buyers that they are up against other offers. This notice usually has a final date & time, by which any buyer may change their offer and let the seller know their intentions. In other words, a buyer who really wants this home may increase their initial offer in hopes that this higher offer will be chosen by the seller. Keep in mind that sellers look at more than just the price. Financing terms, possession, etc, may also be important to them.

Example: a seller may want to take a cash offer that is lower in price, rather than take a higher offer from a buyer who must obtain financing.

The Realtor goes over with the seller, the positives and negatives of each offer.     The seller then chooses to accept or negotiate with one of these offers.

A buyer does NOT have to change an offer just because of a multiple offer situation. They may let the seller know that the original offer stands.

That being said, experience has shown us that in most cases, buyers will increase the initial offer for that home if the increase is still acceptable to their budget and loan qualification status. This increases the chances of their offer being accepted by the seller.  Multiple offers are a big benefit to sellers for obvious reasons.

Your Realtor felt that if you wanted this home, you needed to increase your offer. The Realtor was your consultant. The final decision was yours to make.