Wait...HOW much is my downpayment?!?

Declining Markets - On the face I would assume that we could categorize this market over the past year as declining. That makes sense! However, that term actually means something more to your lender. GIVE US MORE MONEY!

When you buy a home you may think that if the appraisal comes in at a good value (at or above the sale price) you will be on the right road to closing and owning your first new home! Well, hold your horses. If the home appraiser categorizes your home as being in an area that is a "Declining Market" you may not be able to purchase it with the terms you thought. Meaning you more than likely will have to put more money down on the property! Typically you would not have to worry about this going FHA. However with a conventional loan you will. The lender (Fannie Mae) originally wanted you to put down 5-6 percent. Now that your home is located in a defined "declining market" area you may have to put down 10%! OOPS! Who would have thought of that? How can you protect against looking for a home in those declining market areas? I don't know any realtor that follows that stat! I don't even know of any lender who follows that stat! Getting a loan is a hard-to-do task in this day and age for certain...

Let the buying begin (again)

So, it has passed. The dust has settled. Now, what is this new Nov.7 housing stimulus package all about? Well, if you have lived in your home for 5 out of the past 8 years ( as a primary residence) you are now eligable for a tax credit!! YEAH!! That means that if you rented your property for a couple of years but lived in it for (again) five out of the last 8 years - you can get a credit! The current $8,000 first time homebuyer credit is still in force as well. There are quite a bit of strings attached so I recommend you read up a bit to make yourself fully aware of the strings. Here is a great link to an informative site. It will get you up to speed!

BTW - How about those colts! Big game coming up Sunday night with the Patriots! Not to mention other local schools doing well in the playoffs: Carmel, Warren, Center Grove to name a few! Go Hounds!

Homebuyer Credit EXPANDED and EXTENDED

The House of Representatives has voted to pass legislation extending the home buyer tax credit until April 30, 2009.
Last night the Senate voted 98-0 to pass the legislation. Next the bill will head to President Obama to be signed into law on Friday.
While the bill extends the $8,000 tax credit for first time home buyers, it also makes available a tax credit to homeowners who have lived in their current residence for at least five years. The credit for these buyers will be capped at $6,500.Income levels will be extended from the current limits of $75,000 for a single purchaser and $150,000 for couples to $125,000 and $225,000 respectively.

Above those limits there are diminishing credits available.Housing interests, especially the National Association of Home Builders and the National Association of Realtors, has pushed strongly for the extension and the Obama administration has also lobbied heavily for its passage. However, not everyone was in favor of it.

Some critics have charged that the tax credit has merely moved sales that would have occurred sooner or later to an earlier date and that, when the credit finally does go away, the market will experience another severe downturn. A diametrically opposed opinion would have it that, while 1.4 million claims have been made, few sales were actually inspired by the credit. Others have argued that the current interest rates and low housing prices are enough of an incentive without spending tax money. The extension is expected to cost an estimated $11 billion on top of the $10 billion that has been spent to date.There have also been charges of fraud in the operation of the program. To combat this the new law has some expanded safeguards including a minimum age of 18 for obtaining the credit, a requirement that a settlement statement accompany the tax return claiming the credit and a prohibition on non-arms length transactions.Another criticism of the extension has been that it ends just as the "spring market" is getting underway. Diane Olick writing for CNBC's RealtyCheck said it "is sort of like offering cheap snow boots in July."
Robert E. Story, Jr., CMB, Chairman of the Mortgage Bankers Association (MBA), today issued the following statement in response to the passage in the U.S. Congress of legislation to extend and expand the homebuyer tax credit."At a time when we are finally starting to see some signs of life in the housing and mortgage markets, extending and expanding the homebuyer tax credit is a critical step to keeping the momentum. This has been one of MBA's top single family legislative priorities, and we are very glad to see that policymakers on both sides of the aisle see the importance of this measure."The existing credit for first-time homebuyers has helped move a segment of potential homebuyers off the sidelines and into their first homes. By expanding it to qualified existing homeowners, we can help stimulate even more home purchases for qualified buyers. I also want to applaud measures in the bill that will help eliminate fraudulent use of the tax credit."

Short Sales - The Family Hunting Game

I know that short sales could be a great opportunity for some Buyers. It is obviously a sign of distress when it comes to sellers. Hunting down and capturing a short sale home (prior to foreclosure) certainly has become the latest sport for the Buyers in the market place. What any good "sportsman" has to do is to get acquainted with the approach and know their opponent - that is the key to success. Extremely low-balling a home is kinda like firing a warning shot above their heads. In my experience it will make the lender run away and not respond. Do your research (determine the value of comparable homes, derive a value on the property, make an educated and well thought out offer within 85% of the determined value NOT LIST PRICE) and then fire your direct shot. Do you think that the lender has not already determined the home's value? Knowing what they know is the key. That approach will not scare them away - it will more than likely really make them appreciate your offer and take it much more seriously. The "warning shots" take up a lot of time for a lot of people and most of the time, do not pan out.

I am not a hunter. However the analogy seemed to fit in quite well here!

What is the status of the extension for the FIRST-TIME HOMEBUYER TAX CREDIT??

Well, it is all rumor and gossip at this point but I wanted to post a great article about the possibilities.


CNN TAX CREDIT ARTICLE


...

MARION COUNTY 2009 TAXES RELEASED

WOW! As most of us get ready for Halloween Candy and Thanksgiving Turkey it looks like Marion County has finally release the 2008 pay 2009 tax bills! That is wonderful for planning - considering the tax bills are typically due in May and November of each year this is a bit of a setback. Bills are roughly 6 months behind.

I found a great website for all of those curious about the Marion County tax bills and/or exemptions, deductions, etc... The best news is that you now can file your exemptions up to New Years Eve and still have it take effect for that years taxes (lets hope the office is open on New Years eve - doubt it).

This link will take you to the Marion County treasurer's office. Check out the frequently asked questions or check out your tax bills.

I changed my mind - TAKE IT BACK!

Wow! What a great time everyone had at the barbeque! Wish everyone could have been there. We had around 60 people attend - the bounce house and the barbeque were the biggest hits of the night. The goal of the evening was to thank all of my clients for their continued support and loyalty. I know that it was a success!

The goal of any sale is the actual closing. The Buyers and the Sellers meeting at a predetermined location to exchange and sign many legal documents the most important of which is , well, the money. I have found that lending has definately tightened up substantially. I posted earlier some of the newer tiers of credit requirements.

My current frustration is focused on the lack of respect of the official contract. Buyers need to remember that when they put an offer on the table and it is accepted - IT IS A LEGAL CONTRACT! This document requires that you buy the home. If you change your mind you may be opening yourself up to a bunch of legal issues. Make certain this is the home for you before setting those expectations. If the inspection is that important to you ask if you can inspect the home prior to placing an offer on the home. You may loose more than just your earnest money if you back out!!

Junk mail is paying off!

I have decided to not send out junk mail! I stopped a year ago. Now don't get me wrong. I still send out the ever so expected listing mailers and advertisements to prospective buyers. I just stopped sending out ego driven marketing to remind old clients how awesome I am. It's the truth. Our industry is known for "look at me" advertising.

Look at me......

I'm on a shopping cart! I'm in your mailbox! I'm on your pencils!

you get the drift. The philosophy, I guess, is to keep your REALTOR (or my face) in your mind all the time. I read that book. Didn't like it!

This month I am having a blow out party for my clients! Yep, the works - tent, drinks, musician, bounce house, catering. I mean to tell ya, it is going to be a blast. I am hoping that this will stay in their mind more than a frisbee or refridgerator magnet. This is my junk mail payoff. Instead of accepting my hundreds or thousands of dollars of junk in the mail. How about a night of fun! It pays to be a Rose Realty VIP!!

IS YOUR HOME UPSIDE DOWN?

Weary homeowners finding it tough to qualify for federally sponsored mortgage assistance programs are increasingly contemplating whether or not to consider the short sales route instead. While short sales have certainly assisted many homeowners in resolving their debt burdens, there are pros and cons to consider. Below are some of the most critical questions to answer before deciding whether to short sale your home or not…

1. Can you afford to keep your current home? Is your current economic situation a question or weeks or months/years? Depending upon your specific situation you may be able to delay or make partial payments for a few months by contacting your current mortgage service department. On the other hand, if you have been permanently downsized, disabled or are facing other longer term economic problems, it is a good idea to grapple with reality sooner rather than later; by addressing the problem early you have more choices.

2. Do you want to keep your current home? Sometimes situations change. Marital status, children leaving home (or coming home), job change, health or other events make a once desirable home little more than an ongoing headache. Evaluate your present property to make sure it is still a good fit before deciding whether to keep it or sell.3. Can you handle your other debt obligations? Short sales are often a great alternative to thos

e seeking to avoid bankruptcy or planning to restructure their debt obligations.

4. Do you owe more on the home than it is worth? Unfortunately, declining real estate values combined with variable interest rate loans, teaser loans or other hybrid mortgages have created a situation where many homeowners now owe more than the current market value of the home. In many cases, tens of thousands of dollars more. Make it a priority to determine whether it is worth the long term cost of paying down a high mortgage or saving for retirement, college and other expenses for the family.

5. Are you unable to refinance or gain more favorable terms? Not only have home values plummeted in many parts of the nation but rising unemployment rates, tighter lending standards and higher debt to income ratios caused by re-setting interest rates on ARMS have resulted in the perfect debt storm. Homeowners are increasingly unable to obtain favorable refinance terms.

6. Do you desire a relatively fast sale? Due to the downturn in the economy and backlog of existing home sales, there is a large inventory of homes on the market. Those that seriously wish to sell must price right and work aggressively to position their home for a fast sale. Many short sale investors are already pre-qualified and able to purchase the property as soon as the bank approves the offer. While a short sale isn’t “instant” (45-90 days), they are generally much faster than the current sales period for a regular MLS listing (6 to 12 months).

7. Do you want to avoid fixing the property in anticipation of a sale? Few things are worse than being forced to spend money in order to sell a property below the price you originally paid. Short sale investors routinely purchase properties in “as is” condition saving you the time and money required to put the property up for sale in the traditional manner.

INDY-FABULOUS

WOW! No big suprise here - however we are still the best value in the country for housing! I have recently worked with relocation folks from Arizona, Kansas and Lousiville. All of them moving into our area! Having family in rural Indiana I understand that it is great to have relocation business right now!

Here is a clip from the MONEY magazine article!

"The older, industrial Midwest cities generally offer the best bargains. Indianapolis has led the NAHB's Housing Opportunity Index for 16 straight quarters. Nearly 95% of all homes sold there were affordable to those earning the area's median income of $68,100."

I took this picture ontop of the pagoda at the Indy 500 track!

GO INDY!!!

And the best school is..........

Today marked the first day of school for my daughter Lilian. She was quite excited about the bus ride! I was not excited to see her leave. However, I don't know many parents who LOVE to send their children off to school. I do have high expectations for my daughter and our school district. This is why we chose to live here. Many homeowners/homebuyers do tend to put a high value on the quality of education, or should I say, the perceived quality of education that the community provides.

There are many quality websites that provide school statistics. The Indiana Department of Education website does provide a lot of data for your review. Here you can compare schools, review annual school performance reports, you can also look into the ISTEP test results.

In my case, I hope to be as interactive with my children's schooling as possible. See, in the end I feel that education is what you make of it. I would like to think my support and encouragement is the biggest key to success for my children.

Summer Slow Down

The State Fair is a wonderful event that my family and I look forward to each year. It signals the end of summer and the excitement of the new school year. I typically don't have a lot of business this time of year. After years in the business I certainly have come to recognize the Indianapolis Metro housing cycles. Obviously 2008 and 2009 have been 'recession' years which have to be analysed mostly on their own merit. However, year-in-year-out I have found that the cycle is similar.

Starting usually in Mid-February (the spring warm up time frame) the big surge begins and it usually ends around late May to early June. The dog days (slower sales) of summer kick-in from June through Mid September. Then something weird happens. In Mid-September there is usually a bit of a surge through October. December and January are great months for anything but real estate!

So, my quick advice for when to place your home for sale is to begin staging your home after the holidays and be ready for the "For Sale" sign come Valentines Day. This year things did not kick off until around April. But we have just went through a crazy time that cannot be compared to. Who knows, maybe the housing recession is over?! My crystal ball said that we have hit the bottom of a very long pool. Meaning it may be 2011 until values pick up locally. But I don't think they will fall much more either!

Tax Credit Going Away???

Tax Credit Going Away?

I keep getting the question as to the first time homebuyer's tax credit. I even heard one gentleman tell me that the credit is going to improve!! I dont think he controls that but.... I sounds like an optimistic thought to me.

With only a few months left, we will soon see folks that enter the buying process in a rush to get their purchases closed before December 1, 2009 when the tax credit expires. We CONSTANTLY get questions on whether it will get extended, or even may be raised. Keep in mind that any changes require consensus and there is a tremendous amount of legislation focused on mortgage/banking regulation and healthcare. As it stands now there will be some great folks that will close November 30th (he, he) and other nice folks that close December 1st and I assume both will get great deals but on will qualify for the $8,000 tax credit and one will not. With all the changes in financing, many companies are at 45-90 days to close a mortgage loan, while we remain at 30 days, we still encourage people to start the financing process if you are interested in purchasing.

I really think anyone interested in the credit push should get a preapproval in process. Call me for some good mortgage leads.

THE HOMES MUST BE STAGED

I have to give major "props" to MIBOR. The marketing of the BLC is spectacular. I honestly do not know a better way to market your home for sale than with a MIBOR member/REALTOR. "obviously" you may say - "you ARE a realtor". Time and time again I sell homes VERY quickly in this bad economy. I don't know if it is just hard work, salesmanship, and hustle or just ...well...MIBOR marketing. I have, however, taken a stance this week. I am going to pay for a home stager to consult with the my clients/sellers each home I list over $200,000.

I find it that important. It is important for the sellers to set their product above the competition. Staging can be a difficult process. Every person has their idea and perception of colors and furniture placement. We each live in our homes as a dwelling, not a showroom. I made a stand. My listings are a product to be properly merchandised. My clients want me to sell quickly. Therefore it is my responsibility to do just that...sell quickly.

I listed an average home in a middle class area of Fishers last month. The home was staged. I sold that home in less than three weeks for more $/SF than any other home on recent record. I could chalk it up to luck, good signage, good weather, and an AWESOME listing realtor. Naw, I am giving the props to two areas: MIBOR and their members and the stager. The second of which has finally "sold me" on the importance of a proper third party critique of product presentation.

Man in the mirror

Well, what a week. I often thought that when Lucille Ball and George Burns passed, those would be big moments. See, I really saw them as the consummate showmen. As Lori can attest. I loved Michael. O.K., I admit it. I really did. My favorite was song of his was "Man in the Mirror". (I know the link is to a Reggie Miller Highlight Film set to Smooth Criminal - I love that too!) I was even listening to it this week after my workout. I listen to MJ during most of my limited listening time. Unlike Lucy and George, who were a bit "pre-me", Michael did define my generation. Michael was, well, a direct hit at my generation.


Looking back at my (and the world's) admiration of Michael- it bordered somewhat upon that of idol status. I would watch the videos endlessly and know every step (at least I thought) from the thriller to the moonwalk. My faith has taught me to be weary of appointing the idol status. Yet, I don't regret it. My focus was fun and innocent. I mean - come on now - did anyone really think he was "Bad" or simply entertaining.

I got to see Michael in Wrigley field. I still have the ticket stub and pictures, thanks again to Lori! I obviously don't and have not idolized him for quite a while. I still love his message though. "I'm starting with the man in the mirror. I'm asking him to change his ways. No message can have been any clearer. If you want to make the world a better place better look at yourself and make the change."



So, how does this relate to Real Estate. It is a stretch, I admit. Keep plugging away and do what you love to do. Your HIStory will be etched.



Miss ya Michael.

Hello..is anyone home? HELLO

Imagine being homeless. No, not under a bridge in the stereotypical way. You have just sold your home in a down market. You have held off looking for your next home until yours finally sold. After months of patience you are off on the house hunting trip you've long awaited. You can feel the excitement and your anxiety is somewhat palpable.

There it is- the home you have been eyeing from a distance is finally in site. Nobody lives there, it is just meant to be! Except for one thing, the owner of the home does not care to sell. You can't get in to the home to even see it. Trespassing you walk around the exterior, peering in windows. You notice the power is out and your dream home is slowly being abused by a lack of attention. The basement is getting wet, the grass is growing, the paint is beginning to peel.

This is frustrating to say the least. I have clients that want to buy homes that are sitting empty. See, in Indiana we own homes. Even if you have a mortgage on the property, you own your home. If you don't pay your mortgage payments the bank may have to start foreclosure proceedings followed by the actual foreclosure or sheriffs sale. I have known people who have lived in their home for 12 months without paying a payment and moving out just prior to the sheriffs sale.

Potential buyers cannot buy your home unless you, the homeowner, allow them to see the property and they submit to you an offer to purchase. Many folks going through the foreclosure process feel like the house of cards is falling in all around them. They don't want to face the facts or do anything to save their credit. They feel that there really is nothing they can do to help themselves.

Now, I don't claim to have all the answers. I do feel that if you are facing foreclosure you should do anything you can do to sell your home. Communication is the KEY!!! Talk with potential buyers, enlist an active real estate professional to help. Don't forget that our services are free to you as a seller anyway. You might not be able to save your home but you may be able to save your credit and place yourself in a good position to be able to purchase another home in a year. If you foreclose you won't be able to consider it for about 7 years.

7 COUNTERS LATER..............

It has come to my attention that the devil is in the details. Selling a home seemed pretty easy in the 1990's. I had one transaction that lasted 10 counters but for the most part the negotiations tend to end at around 2 or 3. It is safe to assume that after two counters both of the parties seem to be somewhat emotionally bought into the process. After the 4th counter people tend to get angry. After the 6th counter the REALTORS typically need shot!! Just kidding of course!

On April 28th I started the process of negotiations on a home in Indianapolis. It seemed to be a bit trivial since the buyer was way off the price mark. However, the deal was signed off today-9 days and 7 counter offers later! Because of the changes in the lending/lender environment I have started to incorporate a few updates to the traditional clauses. I need an appraisal done NOW!! I will NOT give possession at closing (unless the home is not occupied of course). I won't take the home off the market without a preapproval backed up with a few phone calls. And, inspections are to take place AFTER the appraisal is completed.

It seems as though the value of homes today are not based on market value or what someone will pay for the home. We are now faced with prices that may be substantiated by the appraiser. Do you have anything that you added to your contract? If so, let me know! I would love to hear your ideas!

Pop-Pop's Birthday and 70 degree weather

Enough with my pessimism already I am tired of Bloggin about the Market. Do you blame me? Today is about 70 degree weather, spring, family memories, and good people! Friday was Pop-Pop's Birthday! He turned 95! Pop is a loving man that is a bit of a grandpa figure to me. He and his whole family have always treated me like - well - family. Since the grass is always greener on the other side I can admit that there were times growing up that I too wished to be a part of his family. Don't get me wrong, I love and cherish my blood family deeply. However, Nana and Pop-Pop are and will always be a part of my life. The odd thing is that although I am not "family"... I really am. Not through marriage but through love and a sense of community that still exists. At least I know it existed this afternoon on the corner of 10th and Logan in downtown Noblesville at a small restaurant named Eddies Corner Cafe. It was there that I once again realized that small town Indiana still exists, along with it's values, family, love, and community. I love "Pop-Pop" as we all call him. I love him like family - well ... he really is! Happy 95th Birthday! On a side note - my Grandma Rose turned 104 on April 15th. What an amazing story that would make some day!

National City Bank - The No Closings Bank of choice

Can you believe this email I got from National City Bank?!?!

"National City Mortgage is writing the check for this home purchase. We must follow FHA guidelines or you will not have an FHA loan or any loan for that matter.
It is widely stated that purchasing a home is one of the most stressful things a person can go thru other than death of a loved one or some catastrophy.
Try working in the business & dealing with these things everyday."

WOW! Now I have found someone who needs to check out the "Customer Service for Dummies" book at the local library. Bottom line here is that the home was supposed to close on the 14th of April. They did not even start reviewing the documentation until April 16th. We have received no expectations and limited communications ever since the start of this nonsense. I think I will start referring to NCB as the No Closings Bank. They are NOT wanting to lend money! That is as obvious as the fact that our Loan Officer needs to find a new job!

IHCDA ZERO interest home loans for forclosed properties

Here is another example on how "Obama Bucks" are reaching our community! Can you believe it? If you buy and live in your first home (in three years) for ten years, and it is a foreclosed property you can get an $8,000 tax credit, a $15,000 gift check from the IHCDA, and another $10,000 zero interest loan from Federal Home Loan Bank of Indianapolis. That's $33,000 dollars!!!

Lt. Governor Becky Skillman and the Indiana Housing and Community Development Authority (IHCDA) is offering up to $25,000 in zero-interest, non-amortizing loans for Hoosiers to purchase foreclosed homes. Hoosiers who buy foreclosed homes to use as their primary residence can qualify for a $15,000 loan from IHCDA's Market Stabilization Fund. The Federal Home Loan Bank of Indianapolis has committed to supply matching loans of up to $10,000. The money comes from HUD's Neighborhood Stabilization Program (NSP), which allocated $84 million to IHCDA. The state will use $33 million of that allocation for the Market Stabilization Fund. Assistance from this fund will be made available to income-qualified individuals and families who choose to purchase foreclosed homes in areas of the state in greatest need of assistance. Indiana is the only state using NSP money in a statewide program to help people buy foreclosed homes.


Quickly, one of the best benefits is that this loan may NOT HAVE TO BE REPAYED!! There is way too much information about this to put in this blog. However, click here for more information from MIBOR (Metropolitan Board of Realtors). Now, for first time homebuyers lets couple the tax benefits along with this and really make a great deal!

I wanted to get this information out to my clients and blog visitors. I have been asked about this program quite often. Here is a quick link to more information from the State.

Prehistoric Lending - Extinct Careers

We are all too familiar with professions that have faced extinction - one hour photo developers, VHS tape manufacturers, and yes the all mighty United Airlines Mechanic. Most of these jobs went through years of phasing out. This "natural selection" gave a lot of time for most to see the writing on the wall and find other careers.

I have to give it to the Mortgage Broker. I don't know if you realized it or not, however, these folks woke up on one Monday morning in 2008 to find that someone had taken away their "wares". Relate it to a shoe salesman who went to work one day to find that someone had taken away all his shoes. What does he do now? Can you imagine the shock? Many of these salesmen worked for years and decades building up reputable businesses throughout our area only to have been told, "go away" from the same people they faithfully made lots of money for - the lenders.

Well, for those brokers still out there - "The next drink is one me"! Brokers are getting cut out of the lending arena. If you use a broker on a conventional program that requires PMI (you are putting less than 20% down), you may get declined based on the fact that you are working with a broker. Not because you have bad credit, insufficient income, or a lack of documentation , you may get decline merely because you are using a broker instead of a bank. Hmmmmm - something is rotten in the woodpile!

Thinking of buying a new home? Call me, there are a few brokers out there that I simply trust implicitly. They are priceless and the banks, in large part, are not worthy of their knowledge and commitment to their industry. But wait a minute - if they can't sell shoes I guess they will have no other choice but to work at the bank. In my opinion it is a sad story indeed. Don't fret - there are also men and women at banks that I have found equally knowledgeable and trustworthy - most of them came from the prehistoric broker period. Ironically, I feel that most of the blame from the subprime meltdown should be pointed at these same lenders who funded the loans in the first place (different topic different blog).

QUICK QUESTIONS TO ASK YOURSELF:

Do I have a 680 or higher score? If you don't you better think FHA.

Do I have a 620 or higher credit score? If you don't you better think Apartment.

Do you have a debt ratio of 45% or higher? Yes? Well you best renew the lease.

Are you buying your home in a declining market as labeled by Fannie Mae? If you are buying in the Indy Metro Area you are. This means you better butter up your lender and put the shocks on the car; you may have a rough ride ahead of you no matter what your credit is like!

Do you have a Realtor? I typically try to stay away from this personal plug, but, here goes - it is a "maze of mess" out there and you better find some good help!

Special Thanks to Mike Senn for enlightening me on some of these issues today! He's a great lender (yep he works for a Credit Union) and friend.

The Appraiser's gift of Ignorance Part II - KARMA

So, a few weeks ago I had a somewhat good experience with an appraiser (detailed in a previous post "the appraisers gift of ignorance"). Today Karma bit me!! See, the whole issue with appraisers is kind of like Realtors. They all talk a big game but most of them don't walk it. I had two appraisers on different transactions all claiming every delay excuse in the world. I was honestly just waiting on all of them to dry their hair (If you understand the joke). The new appraiser rules are not allowing the banks to pick or really even communicate with the actual appraiser. We all should understand why that is a necessity considering the Housing "Hubba Bubba". Now the banks have to call an independent appraisal house (I am calling them the pimps). They call they pick a name out of a hat and send the "chosen one" to the home you are going to buy or sell in order to appraise it. On both occasions the banks ordered the appraisals at least 3 weeks before they were needed. On both occasions neither delivered the complete appraisals in time- siting extreme peril and heartache in their lives as the cause for the delay ( most likely they were just on a boat somewhere on spring break). Since the banks cannot talk to the "chosen ones" I am certain that the information they require in their appraisals will not be complete because proper expectations have not been set. I hate telling a family they cannot move into their new home. The "chosen ones" now have business and for most of them that is a new concept. Either they don't know the area or they have no concern for the impact of their delays. I will "move on" (pun intended) but unfortunately I have four families that not only can't "move on" they cannot - fly back home to start a new chapter, unpack their moving van, install their new flooring, buy their next home, and two of them have to file an extension to file their taxes until the appraisers and lenders get their acts together!

Spring Break Blues

Don't you love the annual Spring Break Blues? Honestly it does not matter if you are blue because you are not going on spring break, or you are blue because after all the euphoria of beaches and roller coasters you realize a ominous 12 hour car ride, heavy credit card catch up, and a cold blast of life's reality waiting on you back at home. For me, well, I did not go on the traditional spring break trip. I did, however, visit my father who is going in for invasive back/neck surgery on the 29th. I am sure his life will change after this and so will mine. Turning 40 (my birthday is in May) means a bit of rear view reflection to times spent and times you wished you could have spent with loved ones here and gone. My Spring Break Blues are two fold - I wish I could afford the trip to the coasters and I wish I could afford to take everyone I love with me too! So, to those coming back from Spring Break here in the next few days - WELCOME HOME (don't open your mailbox for a few weeks that helps the anxiety). And for those, like me, who have a mild case of "wish-I-could-have" illness - don't worry, Mickey will always be there waiting. Here is a link to an Indy Star article today that hit home for me - frugality in the family vacation. (The picture above is of my family last summer at Kings Island in Mason, OH)

Pulte Centex Merge! PLEASE start with a clean slate!

Let face the facts. For most national builders their innate emphasis is on their profitability for the share holders not lifespan or quality of the products. The longevity of the home builder needs to be staked on a quality product. A product that will pass the test of time. Pulte and Centex are building a quality home in the field. However, the design and layout of the neighborhoods are seemingly driven by local density standards and codes - not what will stabilize values and improve the quality of life in an entire community. If the builders were to drive into some of their neighborhoods they built in the 80's and 90's and then compare them to older neighborhoods dating into the 70's and early 80's -they could learn a lot. They could learn a lot about themselves, their greed, and their true commitment to improving the quality of living in the communities they serve. They may even find the answers to some of their declining home sales. The character and structural diversity of a neighborhood goes beyond mulch, entry monuments, and playgrounds. It extends to quality siding, varied home site locations set withing larger building pads, more extensive and long term landscaping, and curved streets. Let's all regroup and focus our housing efforts and investments on Eco-friendly, value driven, and value stabilizing communities that we will all be proud to call home today and in 50 years! Note to the builders - where did your cheese go? It's moved and here it lay!

The Appraiser's gift of ignorance - thanks to the HVCC!

So, one of my clients bought his new home today! That is always a good thing. However, he was presented a 7,500 dollar gift from FHA (indirectly). See, FHA is now requiring that your lender must order the appraisal on your new home from a national appraisal "house". This "house" will select and assign an appraiser to appraise your home. The changes state that rather than going to an appraiser directly, lenders must order a real estate appraisal through a third party, such as an appraisal management company. This is to try and eliminate the Loan Officers from influencing the appraisers valuation results. Well, this appraisal "house" assigned an appraiser from well out of this homes location. The appraiser was not familiar with the community or it's respective values. Therefore he under valued the home (in my opinion) substantially. Because of the new appraised value the Sellers had no other choice than to lower his sale price to match the appraisal results (either that or not sell the home). While working with FHA transactions you only get one chance on an appraisal. You cannot go get another appraisal to override the first (even if you feel it is erroneous) for six months. My client saved $7500 dollars off the sales price and still got his Obama Stimulus Tax Bucks to 'boot! For a more detailed summary of the new FHA Appraisal guidelines I have found a wonderful (and boring) article. CLICK HERE FOR MORE on the new Home Valuation Code of Conduct.

INCREDIBLE TIMING

The expanded credit for first time homebuyers has certainly paid off for one of my clients today! He purchased a residence in Carmel for $85,000! No, it is not huge but it is in good condition and it is in a great location too! But the details are incredible along with the timing.

He is going to get an $8,000 dollar tax credit on his income tax return due this April! Now, this is dollar per dollar. So, if he owed $8,000 in 2008 and paid $8,000 throughout the year - he will get an $8,000 dollar return!! WOW!! Each transaction is so unique it is hard to tell you all the specifics. But, this is great timing. He bought low and is taking full advantage of the first time homebuyer credit. I have often heard the statement "where's my bailout" from everyday folks like me. However, I can say that I would not have sold the residence today without the stimulus package. I think I found my bailout! For more details on this FIRST TIME HOMEBUYER credit I have found a quick article from the US department of treasury I wanted to share with you.

Take my sofa PLEASE!!

Nice sofa... REALLY?!?

Throughout a typical day I might go and view anywhere from 3 to 4 homes that are for sale. As people prepare or stage their homes to get ready for my viewings I wonder what goes through their mind. My thought is that the furniture that is being displayed really has to have a purpose. You need to use the piece often or it has to add some sort of aesthetic beauty to your space. I wondered, does this piece really have a place or purpose?

I have a wonderful sleeper sofa dating back to the 1980's hiding in my basement right now! No, this is not a picture of my sofa. I found a great place that you can donate your furniture and they will pick it up for free! YEP! St. Vincent Depaul Society - 317-687-1006. They call themselves "friends of the poor". However, with this service I call them friends of the entire community! (I have also heard that the Salvation Army provides a similar service.)

Americans See 18% of Wealth Vanish - REALLY?

In a rash of further good news, S. Mitra Kalita with the Wall Street Journal helped bolster consumer confidence by breaking the "country is broke" story again. This breaking news was coupled with a heart wrenching story of a mom who had to tell her son he could not shop at Abercrombie & Fitch. Really?

Come on. We know already. We know.....

Now this has hit home -NO Abercrombie - this is the proverbial straw!

All joking aside - I marinate in this swell stew of pessimism every day. I'm tired and really need to let it out. Stop reporting the reported, let's proactively report optimisim. Let's try and focus our investments in solid value and quality backed products made in America . And finally, let's provide for and enjoy the blessings we've been given.

Buy a quality home with more land. Buy a home with Brick in a good location. More than anything lets take responsibility for our commitments and restore the American pride and will that we experienced briefly in 2001 and occasionally before each little league baseball game.