Money Saving Tips for Home Sellers

Often consumers feel overloaded with debt. In reality, many people try to handle too much debt for their available resources. Credit repair is possible but borrowers must be willing to admit that they are in trouble.

Addressing Debt

When it comes to debt, burying your head in the sand will just add to your burden. It does no good to avoid bankers' phone calls. Definitely, it does no good to buy 'more' to try to make yourself feel better about everything. As odd a solution as that may sound, more than one person chooses that route. When you find yourself overloaded with debt, you have to address the situation in a realistic manner.

No Instant Cure

Firstly, do not look for an instant cure. Debt settlement takes time. It makes perfect sense that settlement involves a step-by-step process. Bad credit did not happen overnight but many borrowers expect to escape from its wrath overnight –and with little pain. Credit repair does not work in that way. It takes time and effort.

Not only does bad credit build up over time but the credit can also arise from various sources. When you have major credit cards, department store cards, and maybe a loan agreement or two in your pocket, you have a disorganized mess. That tangle does not just refer to an untidy wallet. A ton of credit can add up to a ton of problems.

Debt Settlement

Yet borrowers can settle their debt. They need not expect it to be an easy process but negotiation is possible with lenders. Debt settlement is an agreement between a borrower and lender that settles the borrower’s debt. The arrangement involves a one-time payment and a lender accepts less than the original loan. The payment can be just 40%-60% of the loan.

Debt settlement can be used to settle varied types of debts - unsecured loans, personal loans, credit card debt, merchant loans, and medical bills. The earlier you request debt settlement, the best chance of the most favourable solution. The process can work better if you employ the services of a credit specialist.

They know how to negotiate with lenders. Credit experts understand the process. It is wise to have a knowledgeable professional in your corner.

Credit Specialists

Don't expect to phone your bank, request settlement, and get immediate agreement. Settling a debt is a complicated business. In fact, most banks refuse the first request.

Keep in mind that you are not the only one looking for debt settlement. A credit expert will be prepared for that initial rejection. They are familiar with the lender's approach and they know how to work within the system.

Lenders are willing to work with buyers – especially with buyers' representatives. As well, the consumer has to be prepared to work with lenders and their credit specialist. All parties must act in good faith. Lenders will put forth certain conditions. In addition, they want borrowers to bring something to the table.

Your credit specialists will work for you. Using a credit expert, you will probably settle for far less than the original debt. Credit experts can help you get maximum savings.

Consumer Proposals

Has Debt Settlement Worked For You?

Real estate therapy is an extension of retail therapy – except the stakes are higher and there are not as many players. You will find more people buy clothes or gadgets for 'feel-good' therapy than stack up houses on their shopping list. Yet real estate therapy is a reality.

Psychological Issues

Real estate – buying and selling – is tied up in psychology as much as it is in money. More than one person moves – and moves again – and again – not out of necessity – but for psychological reasons. Often people move because they need a bigger home or they see it as an investment. Some home owners keep buying and renovating and making a profit.

On The Move

Yet there is another group of home buyers that stay 'on the move' for other reasons – a need to keep moving forward, a desire to keep up, a drive to acquire more "stuff" ( in this case, houses). Another possibility is that real estate therapy is just retail therapy - gone out of control. Of course, buyers who trade houses like shoes might be in the minority.

Playing It Cool

You cannot, however, take the psychology of 'buying and selling' out of real estate. Sellers do not want to seem too desperate to get rid of their home. Buyers do not want to seem too eager to close the deal. Both sides have to play it cool throughout the process.

Nobody wants the other side to sense their urgency or excitement – depending on your position. Buying and selling is a delicate dance. Nobody should try to step on anyone's toes. Everyone wants to come out of this 'feeling good' about the deal. It is human nature to want to feel that you got the best deal.

Buying and Selling 

'Buying and selling' is influenced by emotions. Over–priced houses belong to people who cannot let go of their emotional attachment to their home. Often sales happen because buyers have a specific vision of the 'perfect' home. Of course, they envision a "perfect life" in a "perfect home." No matter how practical you think you are, your reaction to a home has a psychological basis.

The Psychology of the Sale

Housing Bubble

Indeed, industry experts even refer to the 'psychological' stages of the market as it works off a housing bubble. The distinct stages of a housing bubble include enthusiasm, greed, denial, worry, capitulation, and loss of hope. In the 'enthusiasm' stage, lenders extend a welcoming hand to buyers.

Everyone feels feverish, everything is looking great, and everyone makes money in the second stage of the housing bubble. Yet as prices decline, people go onto denial. With regards to market psychology, there is not much distinction between the capitulation (surrender) stage and the state of despair.

Psychological Stages of a Bubble

Foreclosure

Foreclosure can be the end stage for many home owners. Since people have such intense attachments to their homes, foreclosure can be a devastating experience. On the positive side, foreclosure allows people to let go of a burden, move forward, and rebuild their lives. Yet few home owners who are in danger of foreclosure can see the positive angle. Home ownership is a psychological issue.

Psychological Obstacles of Selling

Are You Planning A Little Real Estate Therapy?

'Renovation' is a powerful word. It can send chills down your spine or fire up your creative urges. Yet renovation is not a 'black and white' issue. Even a minimalist style can have a touch of drama! There is always a grey area. Should I or shouldn't I?

A Real Dilemma

Whether you are a home buyer or home seller, nobody escapes the 'renovation' question. Will I renovate before I sell my home? Should I buy a bargain and bring it back to life? Will I be able to afford this home when I factor in improvements? Home renovation poses a real dilemma.

Home Buyers

If you buy a home and plan to fix it up, you have to be prepared to live with chaos. The home buyer must be able to handle the 'process' and renovation can range from a mild inconvenience to an intolerable situation. Bathroom renovations come to mind.

'Fixing up' a home can take its toll. Sometimes home owners have to seek out other accommodations while the work is in progress. If individuals have allergies or breathing problems, hotel costs seem a small price to pay to protect one's health.

Yet all renovations come with a cost – quite possibly, a considerable expense. Home buyers need to think about resale values – especially in an uncertain economy. Before home buyers decide on improvements, they must be clear about the cost.

A home inspector can shed light on that area. Be warned, however, that it can be difficult to get enough financing to handle a massive renovation. FHA 203k loans are available (with certain restrictions) for homebuyers who want to make immediate home improvements.

"In this market, you need to be very careful about how much cash you invest to make sure you get that back in resale value," Valerie Huffman, a regional vice president and manager of the Bethesda-Chevy Chase office of Weichert Realtors.

Cost-saving found in more than price

Home Sellers

Home sellers also have to confront the renovation dilemma. Should they renovate before selling or will they just sell at a bargain? If a house is not up to the standard of neighborhood homes, renovation is a wise idea.

If your home is on the market, you do not want to have the worst house on the street. Even when a home is selling for a lower price, the 'below standard' house might not attract buyers. They might decide to pay a little extra and avoid the hassle of renovations.

Removing 'dated' features is a good plan. A 1970s kitchen will not excite the 2010 home buyer. Of course, kitchen renovations are a huge commitment. You have to consider your budget, time constraints, and willingness to live with the upheaval.

Minor renovations can make a big improvement at a low cost. A 'lighter' look is always appealing to home buyers. A fresh and airy feel is a welcoming touch but go easy on bold and bright shades.

You might think that vibrant red would jazz up your space. Remember though that you are the seller and therein lies the root of the real dilemma. People tend to decorate in their preferred style but home sellers must renovate to attract home buyers.

Renovating to Sell

Are Home Renovations Posing A Real Dilemma For You?

Many things look good in Dubai – at least, according to tourist statistics. Dubai is the one of the most visited cities in the world. As one of the seven United Arab Emirates (UAE), Dubai is expecting to accommodate 15 million tourists by 2015.

Looking Good

Everything looked promising today as Cityscape Global 2010 (the world’s largest business-to-business real estate investment and development event) opened in Dubai. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, presided over the opening ceremony of Cityscape Global at the Dubai World Trade Centre. The city has hosted this event for the past nine years. This four-day show spotlights emerging trends around the globe.

No Problems

Within the next two years, residential property prices are expected to stabilize in Dubai. Once again, investors are taking a serious look at the city's real estate. A leading consultant firm does not foresee any problems with the Dubai market.

“As long as the property supply doesn’t surpass the demand too much, we should see a stabilization of Dubai’s residential property prices within the next two to three years," explains a major consultant firm.

New Developments

By the end of 2011, Dubai is expected to see 50,000 new residential developments. Maybe the scale of development will not reach that exact number. Yet developments are now in the works that were on hold. As well, many buyers say that they plan to stay in Dubai for at least 3-5 years. Despite the downward trend in the past six months, things are looking up for this United Arab Emirate. An industry leader offered an explanation for the decline in Dubai residential rentals and sales in recent months.

"This downturn probably was mainly due to the holy month of Ramadan and summer vacations as well as buyers adopting a wait-and-see attitude. Many of the prudent investors were in anticipation that the prices would fall further, or the mortgage rates would get cheaper,” said a top consultant.

Good News

Banks are lowering mortgage rates in Dubai – sometimes to 5.99 per cent. The good news for Dubai buyers is reflected in pockets elsewhere around the world but Dubai is the darling in development at this time. Recently, there have been major encouraging announcements including today's news that the Real Estate Regulatory Agency would work with banks to raise up to $1.36 billion to finish 48 developments.

Emerging Trend

The truth is that mature economies are finding it difficult in recent years. Heavy debt is always a major issue – whether you are an individual or a mature economy. Developing economies are not burdened with that degree of debt and, therefore, they can grow at a faster rate. Rapid growth means higher returns and that fact is not lost on investors who are eyeing the Dubai market.

Dubai's residential sector in recovery mode

Eyeing Dubai

The Dubai real estate market looks attractive to investors and, no doubt, the city is a favorite with tourists. Yet the best measure of a city is how it cares for and nurtures its residents so that 'everyone' can live a productive and pleasant life within its boundaries.

Do You Have Your Eye On Dubai?

Selling a home has never been an easy process. It requires effort and commitment at the best of times. In today's market, however, selling a home can be much more of a challenge. Yet home sellers can put themselves in a favorable position. They have to know how to adapt to today's economic climate. Many home sellers make serious blunders and end up waiting much longer to sell their homes.

Selling a Home – Top Mistakes

1. Pricing Too High

Although it may be tempting to try to get as much as possible for your home, that strategy can backfire on a seller – especially in the current economy. If similar homes in the neighborhood are going for a lower price, you will be last on everyone's list. The worst scenario - you end up getting less than your neighbors for a home of equal value. Over-pricing in an uncertain economy will not help a home seller – although the neighbors might be more pleased than ever with you. Home sellers must remember that they are still competing against bank-owned homes, short sales, and HUD (US Department of Housing and Urban Development) homes.

2. Expecting Too Much

People have to lower their expectations in poor economic times. Sellers have to look at the situation in the 'here and now' - not last month or last year. Today's sellers may not be able to take home their expected profit. In the midst of financial instability, sellers have to adjust their thinking.

Don't get carried away with slight improvements in the economy. When a country is coming out of a recession, people are still nervous about their financial future. Obviously, home sellers share that concern. Yet they must be realistic about the situation. It might help if sellers consider how they would react if they were home buyers. That mental exercise may help sellers to get a realistic view of today's marketplace.

3. Selling A Loser

Don't try to sell a loser! Of course, there is nothing to stop you from putting a home in poor condition on the market. Just don't expect to get a good price for it!

Condition matters in selling homes and no hefty price tag is going to hide that fact. If it isn't a winner, don't price it in that category. People will see right through that scheme. Sell for a fair value or make improvements and be able to sell for an increased profit.

Actually with FHA appraisals, major repairs have to be fixed up-front. Home buyers won't be eager to buy houses with bad roofs or safety issues. If sellers want to get rid of a home in poor condition, they can expect to have to accommodate buyers. Sometimes sellers decide to give a credit for a major repair (such as roof repair) after pricing it out. Generally though, a home in bad condition has to either sell for less or the home seller has to be willing to invest in improvements.

4. Neglecting Curb Appeal

Many sellers overlook the definite appeal of "curb appeal." Some sellers seem to think that it is just a term from a home decorating television show. Curb appeal, however, deserves more than a passing mention. The TV decorators are right about this one. Curb appeal matters to potential home buyers and it can translate to extra cash.

Traditional sellers: Strategize before selling, say Realtors

What Do You Think Is A Home Seller's Top Mistake?

The FHA (Federal Housing Administration) Short Refinance Program, an initiative to help qualifying underwater US home owners, came into effect on September 7, 2010, and is set to run until December 31, 2012. The program will help home owners who owe more on their mortgage than the worth of their home. To qualify, borrowers must be current with their monthly payments.

Low Demand

Many home owners find themselves 'underwater' as sale prices in some areas have fallen more than fifty per cent. Within some US counties, more than half of home owners find themselves 'underwater' and in danger of losing their homes. Yet despite the number of financially-strapped families, lenders are not noticing a huge demand for this program. Of course, the FHA Short Refinance Program is a voluntary program but still a greater response was expected to the initiative.

Big Benefits

Taking part in this program can result in a considerable drop in one's monthly mortgage payment. Participating lieu holders must write down a borrower's mortgage – at least by ten per cent. Yet to date, there are few takers for the FHA Short Refinance Program – at least compared to the number of home owners who owe more than their home value.

Borrowers

Maybe all home owners are not aware of the benefits. The program has just gone into effect in recent weeks. As well, it targets a specific group – not all 'underwater' home owners.

The lack of response may also be attributed to the specific guidelines of the program. Many home owners are, however, eligible for help. Yet if individuals are delinquent on their mortgages, they do not qualify for assistance.

"…This group is in a "less serious" situation than borrowers who are already delinquent on their loans. But there's no question eligible homeowners would benefit from assistance," says Jill Perry, Northern Nevada director of Consumer Credit Affiliates.

Eligibility

To be eligible for the FHA Short Refinance Program, homeowners must be able to refinance under FHA. They must be current on their existing non-FHA-insured loan payments, use the home as their primary residence, and have a FICO credit score of 500 or above, as well as meet standard FHA underwriting requirements.

Lenders

In addition to hesitant home owners, not all lenders are embracing the program. Keep in mind that this initiative is also voluntary for lenders. Banks may not be ready for a while to refinance loans through this program.

Yet it makes sense for lenders to be participants. The hope behind the initiative is to stop foreclosures and help home owners stay in their homes. Obviously, this program will cost lenders but the expense is insignificant compared to the cost of foreclosures.

"…Servicers ought to be motivated by their best interest," says Bob Ryan, chief risk officer for the Federal Housing Administration.

Goal 

There is divided opinion about the level of assistance that this program will provide to US home owners. The government hoped that 500,000-1.5 million homeowners could be helped by the FHA Short Refinance Program. Yet industry analysts think that the program will assist only 200,000-300,000 home owners. Since the program is not yet even a month in operation, it is difficult to make an accurate prediction about the end result. Hopefully, all eligible home owners become aware of this new plan and are able to receive relief from it.

The FHA’s ‘Short Refinance’ Program: Frequently Asked Questions

Do You Think That The FHA Short Refinance Program Provides Enough Relief?

Image courtesy of flickr.com

With the official start of autumn shortly upon us, home fall shows are showing up everywhere and these annual events draw huge crowds. Some things about fall home shows always stay the same. You are bound to see warm touches and shades of pumpkin. Yet every fall season brings a new and bountiful crop of home décor trends. Surprisingly, some fall home shows even emphasize spring designs.

Spring in Fall

People who look at home furnishings in fall might be preparing to build a home in the coming spring. Therefore, it is not that unusual to see fall home shows include some spring-like styles. Maybe a few pale pastels might find themselves in the company of autumn orange.

Autumn Green

Yes, green is the color of renewal and rebirth, but fall home shows are going 'green' in more ways than one. Of course, shades of green remind those future home owners about the joys of spring. As well, autumn shows are becoming friendlier to the environment.

More stores like "ReStore' in Vancouver have booths at these events. 'ReStore' sells high-quality used (and new) building supplies such as kitchen and bathroom counters, lighting, and appliances. Home owners can find similar 'green' outlets at home shows all across Canada and the US. You will always find the latest green cleaning supplies like AspenClean - the first cleaning product in Canada to be certified by Ecocert (the European regulator of organic cosmetics and food).

Prices at home shows can be more than 50% lower than department store prices. Yet the merchandise can include top quality materials. Shoppers might pick up a cool and classic black granite countertop because someone preferred a lighter shade of granite.

If 'used product' stores did not exist, these building supplies would end up in the landfill. Since more and more people are adopting a green lifestyle, these outlets can now take their rightful place at the fanciest fall home show. 'Used' outlets are becoming the new 'cool' shopping experience with the 'green' crowd.

Design Books

Design books are now the darling of home shows. The design book booths cater to those who 'want' to learn more about design as well as those who 'need' to learn more about design. If you can't afford the designer pillows, you can buy a good interior design book that tells you how to make your own autumn pillows.

Designer books offer support and ideas to home owners. These books are an invaluable resource especially for people on a limited budget. A good quality design book is worth the investment because they offer tons of ideas for every season. Sometimes using the latest trendy colors or fabric can do wonders in recreating a designer look.

Customized Design

Home shows shine the spotlight on local artisans who produce one-of-a-kind products. Custom orders are part of the thrill of home shows. Shoppers can choose from a wide selection of unique items. Customize your home for fall and show off your harvest colors.

What Did You Fall For At Your Local Autumn Home Show?

Image courtesy of hbafm.com

Magazines and television shows are packed with money-saving information for  homeowners. The trouble is that most people do not act on the advice. Generally, the necessary changes take too much effort or don't make any significant difference.

Of course, every banker will tell you that if you look after the pennies, the dollars will look after themselves. Home owners understand the theory but putting it into practice is another story. People will respond better if the alternative is easy and a reward is in sight. The following 'fun' money tips are meant to make you smile and save money in the bargain.

Fun Money-Saving Tips

1. Practice Aromatherapy

Starting an aromatherapy routine might seem like an extra expense. After all, lavender and gardenia oil come with a cost. (Well, usually they do, unless you can pick your own wildflowers and make your own scents - and save cents along the way.)

The cost of oils though is canceled out by the benefits of aromatherapy. The scented blends can either relax or energize you depending on whether it has the perkiness of peppermint or the calming of chamomile. Home owners will be in a better frame of mind to balance that budget or stay calm and sort out their debt.

Repeat these words of advice in your relaxed or energetic moments.

"I am the creator of my own wealth and take action today toward abundance."

2. Have A Block Sale

Don't keep all the fun of saving money to yourself. Share it with the neighbours. Have a yard or garage sale that involves the whole neighborhood or apartment complex. It doesn't even matter if you don't have a yard or a garage.

'Block' sales can make everyone money, help get rid of the clutter, and unite neighbours in a common cause. Actually, people gain more than money from these events. The occasion encourages camaraderie and fosters a sense of belonging to a community.

Don't invest all your savings, however, into a post-sale celebration with the neighbors. Save a little for a rainy day. Anyway, a rainy day doesn't seem so bad when you’re surrounded by good neighbours.

3. Shop Online

Shop online and save money! Shopping seems like a painless way to save money and it can work for you. Of course, never shop beyond your means. Yet you should compare the price of online shopping to the actual cost of heading out to the department stores.

Besides your time and the inconvenience, department store shopping can mean transportation costs (maybe more than one trip), a probable stop for lunch, and maybe a salesperson who encourages you to buy more stuff. Online shopping is free from all these hassles. Often the retailers offer free shipping and, on the average, the prices are reasonable, and you don't have to leave the comfort of your own home.

Making Perfect Sense of Dollars and Cents

Actually, it makes perfect sense that saving money works best if it is part of a fun experience. Ideally, money is not meant to be a source of stress. No doubt, the lack of money for the basics of life is an overwhelming stress – one that nobody should have to endure in our world of extravagance. Yet beyond that circumstance, money should have its place, and saving it should not take the joy out of your life. If you lose your sense of joy, no amount of cents can replace it.

75 Painless Money-Saving Tips

What Are Your Favorite 'Fun' Money-Savings Tips?

Every home owner should keep up-to-date regarding the value of their home. Today's worth is not necessarily last year's value or even last month's worth. Whether home owners have moved in recently or are planning to move out soon, they should be aware of home value.

The market - in the immediate neighbourhood and the marketplace at large - affects home value. A home owner is stuck with that reality to a point. Yet home owners can take things into their own hands and try to increase the worth of their home.

It helps to work with a skilled professional to determine home value. Home owners should review strategies that will improve their home's worth. They should understand about the current market – especially in their neighbourhood. Home owners should decipher the factors that impact the worth of their home. Although all renovations are not equal as to how they affect home value, certain home improvements can make a big difference to home value.

Adding Value To Your Home

. Spruce Up The Exterior

First impressions apply to homes as well as home owners. The house that makes a good impression will be a fast seller. It is just common sense that potential home buyers are affected by the state of a home's exterior and the outdoor setting.

Home buyers are looking for a house to suit their needs. If the exterior and surroundings are a disappointment, the stage is set for this house to stay on the market for a longer period. The home's exterior has to look its best for the "open house." The outdoor area and entryway has to be safe and the location has to look appealing to buyers.

. Remodel The Kitchen

Remodelling a kitchen is a major investment ($15,000-$80,000) as well as a true hassle and definite source of stress. Yet a kitchen renovation is one of the best things you can do to add to a home's worth. The intense effort and hefty expense can translate into a high return on a home sale.

Of course, home owners can impress home buyers without having to spend huge sums of money. Most importantly, the kitchen must have a friendly atmosphere and safety has to be a priority. Even a fresh coat of paint or a clean-up and 'declutter' session can make a dramatic improvement to a kitchen.

. Redo The Bathroom

Redoing the bathroom to reflect more comfort and extra style is a wise move for every home owner. Redecorating a bathroom can come with a substantial cost. Keep in mind that an extensive bathroom renovation is a time-consuming project.

Redoing a bathroom can involve plumbing – a costly and labour-intensive process. Yet a bathroom renovation can get a home seller a return equal to or greater than the cost of remodelling. If a major project is beyond your budget, a thorough cleaning and new coat of paint can work wonders for your home. Even simple things can help to add a slight value to your home. The difference might be the deciding factor for a home buyer.

How Do You Plan To Add Value To Your Home?

According to the National Association of Realtors, US pending home sales rose 5.2% in July compared to June. The statistics refer to contracts signed during July. Usually such contracts take 1-2 months to become closed deals.

"We should be seeing more sales with financing so cheap," Larson said.

Index of pending home sales rises 5.2%

Some experts do not think that the rise is very impressive but, nevertheless, the increase was a pleasant surprise. Michael D. Larson, an interest rate and housing analyst with Weiss Research, noted that only a slight increase occurred and mortgages rates are at their lowest point. Indeed, one would expect more sales with these low rates.

Low Rates – Few Takers

Since mortgage rates are the cheapest in decades, it is amazing that they cannot entice more people to buy a home. During the past week, the average rate for a 30-year fixed loan was 4.32 per cent. That rate was down from 4.36 percent the previous week and that number reflected the tenth time in 11 weeks that rates had fallen to such a low level.

Of course, many people cannot qualify for loans as there are vey strict guidelines in place. Obviously unemployment is affecting sales and some people need time to regain their confidence after the recent recession. Individuals who suffered setbacks during the economic downturn cannot be expected to bounce back at a moment's notice. In fact, it can sometimes take a decade or longer to recover lost equity.

Positive Sign – Cautious Optimism

Yet a 5.2% increase seems positive compared to the declines of the previous two months. US home sales fell almost 30% in May and another 2.8% in June. In addition, last week's rumour was that pending home sales had experienced a substantial drop in July. Of course, despite the rise in July, home sales in the coming months are not expected to go through the roof.

Industry experts expect that improvements will come at a slow and gradual pace. At present, home sales are at their lowest level in more than a decade. Keep in mind that the system is now minus some perks such as the Federal Homebuyers' Tax Credit.

In addition, the July 2010 figures are not as favorable as the statistics from the same period in 2009. It is true that the index rose to 79.4 from 75.5 in June. Yet the level in July 2009 was 98.1 – almost 20% more than the July 2010 index.

The impressive 2009 level was reached after government announced tax incentives. The index fell to 75 in April 2010 after the expiry of the Federal Homebuyers' Tax Credit. In 2001, the index reading was 100 and it increased every year for the next five years.

Obviously, it is easy to understand why some experts do not think that the July rise of 5.2% was an outstanding performance. Pending home sales improved in July 2010 but not to any significant extent. While buyers take their time, sellers wait for that final sale. Of course, real estate investors are encouraged by July's numbers.

Do You Think That US Home Sales Will Continue To Rise In Autumn 2010?