Individual Agent, or Agent with a Team…Which is better?

People say: “It takes a village to raise a child”. The realities of today’s life (two family incomes and such) have forced a family to lean on others (neighbors, relatives, teachers, etc.) to protect and teach our young people about culture, history and acceptable behaviors. Teams, because of their ability to provide specialized solutions to problems, have often proved to be more efficient deliverers of information.

In real estate today (maybe more than ever), it also takes a team. As with a basketball team, each member needs certain skill sets and proper coaching on how to weave the different skills into a cohesive unit to achieve the desired outcome. The evolution of how things work has created a necessity of excellent communication between all the players. The needs of buyers and sellers have developed an even broader need for new members of a great team.

A great working relationship between an agent and a loan officer is an obvious connection. Changing mortgage guidelines, appraisal challenges and qualification standards requires everyone working together. But, there are so many others whose expertise may be needed to properly advise today’s clients.

An Accountant

One of the reasons people buy a home is that they hear of the tax advantages. What really are they? How will the purchase affect my monthly cash flow? Should we adjust our exemptions with our employer? What about home repairs and depreciation? What about parents who gift money to their kids…is there a smart way to do it?

And for sellers, especially people who may not be buying a new home, what are the consequences of their sale? Capital Gains Tax? Can/should they consider “gifting” proceeds to relatives? Long term health care? Life Insurance? That leads to …

A Financial Planner

How does buying or selling real estate impact cash flow and long term savings and planning?

Attorneys

Divorce attorneys, estate attorneys, elder care attorneys and even bankruptcy attorneys have a role in many transactions these days. Choices made without their counsel can have very damaging repercussions.

Home Inspectors, Termite Companies and Home Improvement Contractors

These professionals protect customers from nightmares, or explain the costs associated with preventing or curing problems.

Making a decision to buy or sell a home has far reaching effects. To think your real estate agent or loan officer is an expert in everything is not prudent. However, aligning yourself with a professional who surrounds themselves with other professionals is extremely wise. Make sure the people you work with have a network of related experts that you can tap into. You need to be represented by an agent with a TEAM of specialized individuals!

by Dean Hartman on July 12, 2012

Green Mortgages: Good for more than just saving you money

Inspired by my recent green certified listing, I was moved to share more information relating to the topic of “living green”. Believe it or not, smart financing can help the environment. Beyond the paperless mortgage that can save trees, I am talking about two loan products that can finance energy efficient improvements to your home. And both can be done at time of acquisition or during a refinance. First, we have the tried and true FHA 203K which will finance homes and their renovations up to the local FHA loan limit. In terms of green mortgaging, I have seen borrowers finance $50,000 solar heating and electrical systems and geo-thermal heating and cooling systems which enable homeowners to slash their energy costs and usage. Besides saving the earth’s resources, over time, customers save money. It’s a win/win. But today, I want to highlight a smaller loan that has been around for a few years, but rarely utilized. It’s called the EEM (Energy Efficient Mortgage). Some of the highlights are: It is available as an add-on to VA and FHA loan products, including 203K, for home purchases and refinances. It allows a borrower to get an additional 5% of the home price (capped at $8,000 for FHA and $6,000 for VA loans) to finance energy efficient improvements. The beauty of the additional funds is that the additional debt incurred in your monthly payment is excluded from your qualifying ratios. The logic is that what will be saved in electric/heating costs will be more than the increased mortgage payment. Logistically, your lender will require an independent certification of projected savings prior to closing, and they will hold the monies in escrow, until the work is completed and inspected. Otherwise, it is a fairly simple program that doesn’t alter your required documents or qualifications. Some of the more typical uses for the money are: replacement windows and doors, increased insulation, upgraded oil burner, conversion to gas heat, central air, sun lights, small solar panels, even energy saving appliances. Talk to your lender today about the ability to upgrade your home, while benefiting the environment, at the lowest possible interest rates. You’ll be glad you did!

Adapted from KCM Blog article by Dean Hartman on June 7, 2012

The cost of waiting

It's an INCREDIBLE time to buy!

I hear from a lot of people that they are ‘waiting for the market to come back up’.  The market they are talking about is the real estate market of course and there have been signs that it is improving.  However, sometimes there are expenses other than the PRICE of your home that we sometimes overlook.  Let’s look at some examples:

1. Time to downsize.  Have you considered the cost of cooling rooms that you no longer use because the kids have moved out?  Is continuing to stay in a too big house causing you to put off that trip to Europe that you always wanted?  What about the property taxes and insurance you are paying on your older home?  If you are ready to “go condo” so you can start enjoying the golden years, remember that even if you sell your house for less you can buy for less too.  Life is short!

1. Commuting expenses.  When you bought your home one of the things you considered was the distance to work.  Then 2008 came along and now you find yourself with an hour long commute and a monthly fuel bill of $400, plus the wear and tear on your car.  A 2 year delay in moving could cost you $10,000 in gas alone.  Factor in the time spent away from your family and maybe it’s time to consider relocating closer to work.

1. Emotional stress.  Are you barely scraping by every month?  Is the financial insecurity of living in a house you can’t afford taking a toll on your health and your stressing your relationship.  Your home is supposed to be a place of refuge not the source of stress.  Sometimes it’s easier to just let go (of your house not your honey).

Sometimes getting a new perspective can help you make your decision to stay or move.    I pride myself on educating my clients so you can make the right decisions for YOU.  If you decide now is the time to sell I will do my best to help you achieve YOUR goal.  And if you decide it’s better to wait, I’ll be there then too. My main goal as a real estate agent is to help you, whatever your decision may be.

Investment property: four considerations

I found this quick, to-the-point article on real estate investing and decided to share, since I deal with people of varying experience levels when it comes to the subject. 

Cash deals are all the rage right now!

NEW YORK – Sept. 7, 2010 – Real estate entrepreneur Ryan Moeller offers these four tips for anyone considering a consumer real estate investment:

1. Don’t count on appreciation. Appreciation is a bonus.

2. Watch the loan-to-value ratio. Ideally, the total cost of the purchase, fees and repairs should be no more than 70 percent of the appraised value of the property in good condition.

3. Maximize annual return. Aim for properties that can be rented for at least 1.5 percent to 3 percent of the purchase price. For example, plan to pay no more than $50,000 for a property that can be rented for $750 per month.

4. Have an exit strategy. Seek properties that are attractive enough to have value no matter what happens to the market – as rentals, for sale to other investors, or for sale to somebody who plans to live there via conventional financing or lease purchase.

Source: BiggerPockets.com, Ryan Moeller (09/01/2010)

Landscaping for curb appeal

A well-landscaped yard creates curb appeal and helps your property retain maximum value.

A beautiful yard is a head-turner, no doubt about it. The good news is that even if you can’t tell a tulip from a turnip at the garden center, you can still create eye-catching curb appeal by paying attention to the basics of good landscaping. Ignoring your yard–or doing something that’s out of character with the neighborhood-can jeopardize the assessed value of your home.

“We have several categories for design and appeal,” says Frank Lucco, a real estate agent and professional appraiser in Houston. “That’s where we make those adjustments. Poorly maintained landscaping can be as much as a 5 or 10% deduction.”

Appraisers are quick to praise the allure of a well-tended lawn and good-looking landscaping when it comes time to sell your home, but most do not assign any specific increase in monetary value for upkeep.

“Landscaping is going to add to the appeal of the property and it may sell quicker, but it’s hard to determine value,” says John Bredemeyer, president of Omaha-based Realcorp. “You have to have a number to compensate someone if you drove into their tree and killed it, but is it really market value? Probably not.”

Nevertheless, most professionals agree that curb appeal and a well-maintained appearance prevent your property from losing value. Here are the top suggestions from real estate agents, appraisers, and landscape designers for boosting the curb appeal of your yard:

GREEN UP THE GRASS

If your house has a front yard, make sure it’s neat and green(http://www.houselogic.com/articles/lawn-maintenance-calendar/). You don’t want bare spots, sprawling weeds, or an untrimmed appearance.

“It’s so simple to go to Home Depot, buy fertilizer, apply it every six weeks, and water it,” says Mitch Kalamian, a landscape designer in Huntinginton Beach, Calif. “It will green up.”

If the yard looks really scruffy, you may decide to invest in some sod. According to the National Gardening Association, the average cost of sod is 15 to 35 cents per sq. ft. If you hire a landscaper to sod your yard for you, labor will add 30% to 50% to the total cost of the project.

Another alternative is to plant low-maintenance turf grasses(http://www.houselogic.com/articles/low-maintenance-lawn-alternatives-turf-grasses/). Turf grasses are durable and drought-resistant. Expect to pay $18 to $30 for enough turf grass seed to plant 1,000 sq. ft. of lawn area.

ADD COLORFUL PLANTING BEDS

Flower beds add color and help enliven otherwise plain areas, such as along driveways and the edges of walkways. In general, annual flowers are a bit cheaper but must be replaced every year. Perennials cost a bit more but come back annually and usually get larger or spread with each growing season.

If you’re not sure what to plant, inquire at your local garden center. Often, they’ll have a display of bedding plants chosen for their adaptability to your area. Also, they’ll be inexpensive because they’re in season, says Peter Mezitt, president of Weston Nurseries in Hopkinton, Mass. Try pansies in the summer, and asters and mums in the fall to add vibrant color. “That’s what we do around the entrance to our garden center,” Mezitt says.

Valerie Torelli, a California REALTOR® who dresses up her clients’ yards to sell their houses faster and for more money, says that in her market, she can put in a bed of colorful annuals and bark, as well as cutting down overgrown shrubs, for less than $500. “We can buy gorgeous plants for $3.99 to $15.99,” she says.

ADD LANDSCAPE LIGHTING

For homeowners who have made a sizeable investment in landscaping, it makes sense to think about adding another 10% to 15% to the bill for professional lighting(http://www.houselogic.com/articles/outdoor-lighting-curb-appeal-and-safety/). “You can’t see landscaping after dark,” says Brandon Stephens, vice president of marketing for a landscape lighting firm in Lubbock, Texas, “and buyers are not always looking at houses on a Saturday afternoon.”

The cost of a system runs from $200 for a DIY installation to more than $4,000 for a professional job. If you’re doing it on your own, the key is to light what you want people to see, such as mature trees and flowering shrubs.

PLANT A TREE

The value of mature trees is particularly difficult to determine. Lucco says that in his market, mature trees(http://www.houselogic.com/articles/plant-trees-save-energy-grow-value/) contribute as much as 10% of a $100,000 property’s overall value. In addition, a properly placed shade tree can shave as much as $32 a year on your energy bills. Expect to pay $50 to $100 for a young, 6- to 7-foot deciduous tree.

You can make your own initial assessment of the value of your property’s trees by visiting the National Tree Benefit Calculator(http://www.treebenefits.com/calculator/index.cfm). For example, a mature Southern red oak tree with a diameter of 36 inches in the front yard of a house in Augusta, Ga., would add $70 to the property value this year, according to the calculator.

Article From Houselogic.com.  By Pat Curry. Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R). Copyright 2010. All rights reserved.

Increasing your home’s appeal

What should you do to get your home ready to show (and sell)?  Remember: a winning first impression is made in the first 60 seconds when someone enters your home. Here are some simple to significant ways to maximize your home’s appeal.

Exterior
* Keep the grass cut and remove all yard clutter.
* Weed and apply fresh mulch to flower beds.
* Apply fresh paint to wooden fences.
* Tighten and clean all door handles.
* Clean windows inside and out.
* Powerwash home’s exterior.
* Ensure all gutters and downspouts are firmly attached and functioning.
* Paint the front door.
* Buy a new welcome mat.
* Place potted flowers near the front door.

Interior
* Evaluate the furniture in each room and remove anything that interrupts “the flow” or makes the room appear smaller. Consider renting a storage unit to move items off-site. I also recommend using a staging company if at all possible.
* Clean and organize cabinets, closets and bookshelves.
* Clean all light fixtures and ceiling fans.
* Shampoo carpets.
* Remove excessive wall hangings and knick-knacks.
* Repair all plumbing leaks, including faucets and drain traps.
* Make minor repairs (torn screens, sticking doors, cracked caulking).
* Clean or paint walls and ceilings.
* Replace worn cabinet and door knobs.
* Fix or replace discolored grout.
* Replace broken tiles.
* Replace worn countertops.

Special details for showings
* Turn on all the lights.  If the a room has multiple lights, turn on those that will give maximum buyer impact for depth and space.
* Open all drapes and shutters in the daytime.
* Keep pets secured outdoors (or better yet, take them with you).
* Buy new towels for bathrooms.
* Buy new bedding for bedrooms.
* Replace old lamps or lampshades.
* Play quiet background music.
* Light the fireplace or clean out the ashes and light a candelabrum.
* Infuse home with a comforting scent, such as apple spice or vanilla.
* Set the dining room table for a fancy dinner party.
* Vacate the property while it is being shown.

These tips will save you time and money when you are ready to sell your home. A clean, tidy, well-cared for home shows much nicer than a home that doesn’t possess those qualities. Remember the market that we are in! HGTV.com and HouseLogic.com are some great sites to check out as well.

7 Gardening mistakes to avoid

Gardening is just about the simplest do-it-yourself home improvement work there is. If you can dig a hole, turn on a spigot, and snip a dead flower off a vine, you’ve got the basic skills down. Still, you do have to make some judgment calls, so it helps to know the ground rules, so to speak, that can help you avoid making some rookie mistakes.

MISTAKE #1: MAKING CHANGES TOO SOON

Take the excitement of buying a home, add a nice stretch of spring weather, and you get a lot of enthusiasm for doing yard work. That’s great; seize the day, but don’t jump into wholesale landscape changes, like pulling out plants or reorganizing the layout quite yet.

“That weed that you want to yank out in the spring might turn out to be a gorgeous fall-blooming vine,” says Gary Blondell, owner of Gary’s Gardens, a nursery in Severna Park, Md. Plus, it takes time to learn the landscape and figure out exactly what changes make sense.

Avoid this by: Living with the landscape for a full year, so you can observe it in all seasons.

MISTAKE #2: PLANTING TOO CLOSE TOGETHER

You buy a wheelbarrow full of young shrubs and perennials and plant them in a pleasing arrangement. But if they look properly spaced now, they’re actually way too close together.

Unless you’re creating an evergreen hedge, when the idea is packing things tightly together, the immature plantings will grow into each other in a few years and struggle to compete for sun, water, and soil nutrients. You’ll either have to dig them up and transplant them-or possibly throw them away.

Avoid this by: Following the spacing requirements on the plant label-even though the results will look absurdly sparse at first.

MISTAKE #3: PLANTING WITHOUT A PLAN

Putting in new garden beds without a long-term landscape plan is like tiling, painting, and wallpapering your house before you figure out your future remodeling plans: There’s a good chance you’ll have to undo your efforts in the near future.

Avoid this by: Drawing a simple, bird’s eye view sketch of your yard, and figuring out the rough location of any future construction-additions, patios, outbuildings, pools-so you can plant around them.

A good local nursery or home improvement store can help you with your design. Or you can hire a landscape designer to create a starter plan for as little as $250 to $500. Find a professional at the Association of Professional Landscape Designers(http://www.apld.com) or the American Society of Landscape Architects(http://www.asla.org).

MISTAKE #4: NEGLECTING THE ROOT BALL

Even the hardiest plants need a little help getting their roots established in their new locations. But just turning on the sprinkler every day to douse the foliage isn’t enough to ensure that they get the nutrients and hydration they need. You have to get the water to a plant’s nerve center–the root ball below ground–or it’s going to be stunted or short-lived.

Avoid this by: Placing the hose near the root ball and setting the water to a trickle for about 20 to 30 minutes. Do this twice a week-more during hot, dry spells-for the first four to 12 weeks. Choosing the right irrigation system can help with this task while saving water(http://www.houselogic.com/articles/water-saving-irrigation-strategies/).

MISTAKE #5: IGNORING YOUR YARD’S SUN CONDITIONS

Too many nursery shoppers pick plants based only on looks-not the growing conditions they need, which are almost always indicated on a label wrapped around the trunk or a marker pressed into the soil. “They put a sun-loving perennial under a dense tree or something that wants partial shade out in full-day sunshine,” says Blondell. “It looks great for about a week, and then it begins to die.”

Avoid this by: Watching the spot where you’re going to put the plant and estimating the amount of sun it gets over the course of the day during the growing season. To translate that to the language on plant labels, use this key:

Full Sun 6 hours a day or more Part Sun/Part Shade 3 to 5 hours Shade Less than 3 hours

MISTAKE #6: MISUSING IRRIGATION SYSTEMS

An automatic irrigation system is a luxury that allows you to keep your landscape hydrated throughout the growing season with almost no effort. Unfortunately, with the wrong settings, it can also bring disease, root rot, and an untimely death to the plants in your landscape.

“People tend to set their systems to come on for 15 or 20 minutes each morning,” says Blondell. “That provides a nice saturation of the surface, but not a deep penetrating soak to reach the roots of large shrubs and trees.” And a deeper soak is better for the lawn, too, because it promotes deep root systems.

Avoid this by: Watering for longer intervals-say, 40 to 60 minutes-only two to three times a week. Check with the company that maintains your irrigation system for local recommendations.

MISTAKE #7: NOT BUDGETING FOR LANDSCAPING DURING CONSTRUCTION PROJECTS

Whether you’re building a house or an addition, the bulldozers that excavate the job and the pickups that park on the lawn will damage the grass, trees, and shrubs. And the new building configuration will call for new landscape plantings.

Unfortunately, homeowners don’t often include money in their budgets for this work. So you wind up with a beautiful new family room, screened porch, or solarium, with a few azaleas thrown in around the foundation as an afterthought.

Avoid this by: Allocating 10 to 20 percent of your construction budget to the landscape-both hardscaping and plants-or at least making plans to spend that money as soon as possible after the construction job is complete.

A former carpenter and newspaper reporter, Oliver Marks has been writing about home improvements for 16 years. He’s entering his second summer at his house and has big plans for upgrading its scraggly foundation plantings.

7 Gardening Mistakes to Avoid. Article From Houselogic.com. By: Oliver Marks. Published: March 15, 2010. Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R). Copyright 2010. All rights reserved.

Websites offering home improvement tips

Making some home improvements not only can brighten or expand a property’s living space, it can also help cut utility costs and increase the value of the residence.  Several websites offer useful home improvement tips on everything from remodeling a bathroom to hiring a contractor. Here are a few:

411 Home Repair

http://www.411homerepair.com/ideas/index.shtml

Covers a variety home improvement topic, including do-it-yourself suggestions and hiring contractors.

Federal Trade Commission

http://www.ftc.gov/bcp/edu/pubs/consumer/products/pro20.shtm

Features insights on finding a reliable home improvement contractor.

HGTV

http://www.hgtv.com/real-estate/30-tips-for-increasing-your-homes-value/pictures/index.html

Serves up 30 home improvement tips under different spending cost categories.

House Logic

http://www.houselogic.com/categories/improve/

A recently new website from the National Association of Realtors, HouseLogic offers home improvement advice on a wide variety of topics.

National Association of the Remodeling Industry

http://www.nari.org/homeowners/tips/

Offers wide variety of general and specific interiors remodeling tips.

U.S. Department of Energy

http://www.energystar.gov

Select “Home Improvement” to find home renovation tips that can reduce energy bills.

source: Florida Realtors