Energy Smart

March 30, 2009
I am happy to announce that I am now an ESRES! I have completed my classes and am ready to offer advice and assist you in any way that I can. You are probably asking what this stands for right? Well it stands for Energy Smart Real Estate Specialist. I have tried to take part in a new path for realtors about being energy smart or "Green". Whatever you want to call it I am trying to do my part to educate myself, buyers and current homeowners about what they can do to save money on their homes by cutting their heating/cooling costs, electric bills and overall help conserve their resources. I have been doing this myself for a number of years now, most notably by the type of car I drive. Oh I have taken the jokes for my Prius Hybrid but it helps save gas and trust me as much as I drive a year it has been worth it. I have also done many of the things listed on the attached link such as unplugging lamps, televisions, fans etc. that aren't used on a daily basis and it has helped cut my utility bills by at least 25%. There are many simple things you can do in your home to cut cost, all that may take only a few minutes. It could be worth hundreds or may even thousands of dollars to you. These classes help me understand more fully about an energy audit, what a HERS rating is, Energy Star Appliances, usefulness of solar tubes and much more. These classes will help me provide this useful information when I am assisting buyers and seller with their homes. The movement is towards green and I am happy I can be one of the first in the real estate market to join in the effort.
http://www1.eere.energy.gov/consumer/tips/

Existing Home Sales Rise in Feb

March 23, 2009
I have noticed that traffic has been down on my blog lately since I changed the format so I have decided I am going to post in both areas to save folks from clicking all over the internet to find things. The above link will still take you to my blog site but I will post here as well everyday for ease of use. So today we have great news out on the housing front which is pushing the stock market higher. Existing home sales are finally up and not but just a little, and not just in one area. I mentioned a few weeks ago that our office sales for the month of February were off the board well this must have spilled across the country as all four areas were up. I am seeing very positive things on the horizon. This months and the last few weeks specifically have seen interest rates falling to below five percent. It has also seen an easing in the lending markets allowing money to flow back to the consumers. Homebuilding is starting to pick up again and if you remember what I said back in December when you start to see this happen it is a sign that things will begin to move again. This means builders are getting money to start and to continue funding projects and that their inventories have reached a lower level where they have to build. It is great that they stopped for a little while to allow some of the current inventory to be digested by the market but it's time. The only issue I have seen with the new report which is linked below is that we still have a 9 month supply of homes. This is still high as a usual stable market has about 4.5 months supply.
Look for information this week in coming posts about Title Insurance and the new "Green" initiative in the real estate market. Todays post however is: Existing Home Sales Rise in February
http://www.realtor.org/press_room/news_releases/2009/03/february_existing_home_sales

Is the Recession Going to End?

Oh what to do in a troubled economy. I keep looking for silver linings all over the place and they are there but you really have to look for them as day in and day out it's bad news after bad news. It does get kind of depressing I know, but I will tell you that you have to persist. Nobody becomes stronger by being complacent in life. Therefore, I continue on and bring you today GOOD NEWS! A recent article and interview by our infamous, whether you like him or not, Fed Cheif Bernanke says the economy is going to stabilize towards the end of the year. Exciting news right? Well it is, but I'm sure there are going to be a lot of people struggling between now and then. But at least we are beginning to hear some positive news which I will take any day of the week. Below is the attached article.

What do you want to hear or read about? Ideas and thoughts are always appreciated.

http://www.usatoday.com/money/economy/fed/2009-03-15-bernanke_N.htm

http://www.JoeReef.com

Friday Interest Rates

It's Friday and time for a check on the interest rates. Rates are down this week on a 30 year fixed to 5.12%. Moving in the right direction. It looks as if some of the banking news is starting to turn positive with some really good news out of Bank of America and Citigroup this week. This should help turn the tide a little bit so look for rates around 5% unless something crazy happens in the global market.

Have a great weekend and look for a new exciting post on Monday!

http://www.bankrate.com/gookeyword/rate/mtg_home.asp

http://www.JoeReef.com

Best Places to Buy Real Estate in 2009!

I was sent an article today that continues to give me hope and provides needed positive energy in this crazy real estate market. It is a new list out by Forbes that ranks the top 10 areas of the world that are expected to see investments in real estate during 2009. Can you guess who is on top? Well let's just say it made me happy! Enjoy!

http://www.forbes.com/2009/01/21/investment-obama-realestate-forbeslife-cx_mw_0121realestate.html?partner=email

http://www.JoeReef.com

No Job? Can't Refi? How Do You Talk to Your Bank?

You have been laid off or let go from your job and your in a quandary over what to do. You have a mortgage that you need to pay and you don't want to get behind. Instead of wiping out your savings at first why not try to talk to the bank and see what they can do. For many people this seems like a crazy thought. Why would I talk to my bank? What are they going to do for me? If I tell them then things may get worse. This might be what you think but banks for all the bad press they have received during the past few months are trying to work with people. There is always a second job that you can try for but we all know with the current economy this can be trying and exhausting. There are a few things you can do when you call the bank:

• Find out who services the loan by contacting the bank or lender you pay monthly
  If the servicer cannot help after using the following steps, find out who actually owns the loan and deal directly with them.
  
• Call the servicer or lender immediately and speak to someone in the loss mitigation department as soon as possible about refinancing
  
• Write what's called a forbearance letter or postponement of payment letter to either the servicer or lender telling them of your situation
  
• Be prepared to provide documentation of unemployment or income loss of you or your spouse
  
• Keep accurate copies of anything you send to a servicer or lender

I have attached the following article for more information but one thing to keep in mind is don't get discouraged. You are not alone in this. Exhaust all possibilities before making any rash decisions.

http://www.cnbc.com/id/29595747

http://www.JoeReef.com

FYI~ FHA May Require a Second Appraisal

So you are in the home stretch of your home purchase and all of a sudden you hit a snag. Things were moving along smoothly until two days before you are set to close on your home you get a call from your lender who says you have to have a second appraisal done on the property and it's going to cost you an additional $350 or more. Would you do it? Well how badly do you want the home? If you don't get the appraisal then you deal isn't going to happen and you will have spent the money up to this point for nothing.

This is happening to a lot of buyers right now due mainly to new FHA guidelines that were introduced last December but that took hold beginning in January. Lenders can't do much about this either as I personally found out from experience a little while ago. There are however a few things you can try. Depending on the situation you can see if the lending institution will pick up part of the expense. You can also see if the seller depending on how badly everybody wants to make the transaction happen, if they would be willing to pick up some of the expense. Your realtor is another option as well and so are you the client. What I would recommend to all buyers however is to discuss with your realtor the status of your appraisal contingency.

What is an appraisal contingency you ask? This is when your first appraisal is met and the lender says the home meets or exceeds the value you are paying and that things are good to go. At this point you will usually release the contingency when you find our your valuation is at or above, but recently due to this experience I have been letting this contingency ride through up until settlement unless the seller asks me to release it. This helps protect you the buyer and gives you an out if the second appraisal comes in lower (at least a little negotiating room). What this second appraisal has done is made buyers who are already tight on money cough up more money at settlement to pay for the appraisal. There are also some institutions that are notorious for second appraisals so keep an open line of communication with your realtor and lender and inquire about this at the time of your application.

I have posted the link below for further reading.

http://www.fhaloanpros.com/2009/01/more-fha-loans-will-require-two-appraisals-in-the-new-year/

http://www.JoeReef.com

Daylight Savings Time. Why?

Have you ever wondered why we change the clocks? Why we just can't leave time the way it is? Well I always wonder this as a realtor mostly because my clients look at homes on the weekends but also after work. It makes my job a whole lot easier to be able to have an extra couple hours to show homes especially during the winter and early spring. Well there are plenty of misconceptions about why we switch back and forth, some say its for energy which is mostly true, and some say it's so kids can get on the bus in the morning or that farmers can work later in the fields etc. during the growing season all good points but why do we actually do it? As you know or maybe have forgotten last year Congress enacted a law that changed the dates for Daylight Savings Time so here we are this weekend getting ready to turn our clocks ahead again. I know we will all be cranky as we get up on Sunday morning having one less hour of sleep but remember we get that extra hour of light at the end of the day! I have posted an article below for further reading. Also since it is Friday be sure to click on the updated rates from Bankrate.com.

http://www.webexhibits.org/daylightsaving/c.html

http://www.bankrate.com

http://www.JoeReef.com

How a Renter Can Provide Needed Income

I know a lot of people are in difficult positions right now. I see it everyday with homes going into foreclosure, people doing shortsales, picking up extra jobs or doing whatever they have to do to make ends meet and hold on to what they have. We all know that things are at some point bound to turn around but we just don't know when. As I have said we all need to have patience during these times, but we also all know that we can cut back on things like cable, movies, dinners out etc. We each can personally make a difference but what if you are so stretched that you just can't make it? I think we all feel as if we live paycheck to paycheck and it isn't a good feeling. So, what if you have space in your home, you know that extra space that isn't being used? Would you be willing to take in a renter? It's probably not for everyone and only you know if you can handle someone living in your home besides you. But it could provide you with some extra cash flow that helps get you through some tough times.

Now I caution there are risks involved such as security (people should be properly screened) especially if you have children. You have a loss of privacy so no running around the house (well you know what I mean). What about food? Who does the chores etc.? These are all questions to be answered but you have to decided is my home worth keeping, and can I do this for the short term until things improve? Who knows you may make some new friends out of the experience but it is all up to you. Sometimes we have to do things we don't always like but they are all experiences that I believe make us stronger and better. I have attached the article below which discusses taking on a renter so take some time to read it and see if it could work for you.

http://www.washingtonpost.com/wp-dyn/content/article/2009/02/27/AR2009022701292.html

http://www.JoeReef.com

New Mortgage Help Guidelines Just Released

March 4, 2009
Out this morning is the new Mortgage Help Guidelines. Do you qualify? It looks as if the plan will help millions of Americans and there will be more information coming out from HUD in the next few hours. What we know for now is that lenders will be able to look at your debt to income ratio and could revert your payments back to 31% of your income. However if you carry high debt on credit cards, car payments etc. you may be required to look at debt counseling. This plan will not help everyone and people should keep that in mind but we are headed in the right direction. I will have a further post tomorrow. But for now check out the article below: Mortgage Help: Do you Qualify?
http://money.cnn.com/2009/02/18/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009021911

http://www.JoeReef.com