Real Estate Agents

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?

Long Term

When home owners take on a mortgage, they agree to a long term commitment. Home buyers should seek out the best professional advice to help them in arranging their mortgage.

Amortization

Mortgages will amortize over a specific period of time. The usual length of a mortgage is 30 years but amortization can be as short as 15 years. On the other hand, mortgages can run longer than 30 years under certain circumstances.

Differences

Mortgages are not all the same. They differ in loan amount, terms, interest rate, and monthly payments. A mortgage must suit individual needs and finances.

Risks

Lenders assess the risk of granting a mortgage to a home owner. Before applying for a mortgage, individuals should try to be in the best possible financial condition. They should work to get their credit rating to the most favorable level. Lenders will reward a good credit rating with a low interest rate.

Market

Just like shopping for any major purchase, people should look for the best deal with their mortgage. Shop around for the lowest interest rate. If all lenders offer the same rate, they might still offer different terms and conditions.

Questions

Borrowers should ask lenders about the mortgage process. Home buyers must be as informed as possible about the steps in getting and managing a mortgage.

Pre-Approval

Pre-approval makes for an easier process down the line. Yet home buyers should not get overenthusiastic about pre-approvals. An individual might be able to get a substantial loan but that does not mean that it is a wise decision to pursue an exorbitant amount.

Down Payment

Generally, lenders require a down payment. The deposit is seen as a portion of the value of the property. If home buyers make a 30% down payment, they have a loan-value ratio of 70%.

Constant Terms

Lenders will offer constant terms to borrowers for a set time – usually ranging anywhere from six months to five years. During this period, interest rates and payments will remain constant despite market fluctuations.

Variable Rate

If a home buyer expects a drop in rates, a variable rate mortgage is a sensible choice. The interest rate will fluctuate according to the market rate.

Payments

Home buyers must be realistic about what they can afford to pay per month. Although a mortgage payment is high priority, so are food, utilities, transportation to work and school, and other basic expenses. The monthly payment should account for only 30% of the gross combined family income.

Rounding Up

Borrowers can ask lenders to round up their mortgage payment - for example, from $141.52 to $160. That $18.48 difference per month might not seem like a big deal but it can add up to thousands over amortization of the mortgage.

Skipping

Skipping a mortgage payment is not a good idea. That action adds to the interest on the outstanding balance. 'Skipping' increases interest costs on the life of the mortgage.

Mortgage Basics

What Question Would You Ask Your Lender About Mortgages?

The mainstream media in North America tends to concentrate on US or Canadian real estate. Yet they should not forget that North American investors are interested in international real estate. Bulgaria is one country that has sparked the interest of investors.

2009

There was never a better time to buy a home in Bulgaria. In today's real estate market, buyers in Bulgaria need less cash and have more choices. The poor economy was the final straw for many homeowners already struggling to keep their homes. This unfortunate circumstance put more homes on the market at reasonable prices.

In the first half of 2009, housing prices in Bulgaria dropped an average of 23% compared to the previous year. Homes were selling for almost 10% less in the second quarter of 2009 than in the previous three months. Prices dropped everywhere from Ruse to Shumen, from Stara Zagora to Yambol.

Even higher priced residential properties in larger centers experienced price reductions of more than thirty per cent. Apartments in cities such as Sofia still added up though to be a pricey option. The average property price for a Sofia apartment reached €895 per square meter.

Yet people considered the advantages of such ownership. More appealing lending offers and equally attractive prices lead buyers to act on the good deals. Some lenders, however, required a substantial deposit in this current economic climate.

Indeed, many superb holiday homes had lower sale prices than usual in this marketplace. The global economic slump saw some homeowners wanting to sell their vacation properties. People put their primary focus on basic needs in recession periods.

Holiday properties, as well as seaside and ski retreats, are always the first consideration in any "cutting back" process. Many Bulgarians bought back property which they original sold to UK buyers. Numerous properties went on the market around Veliko Turnovo. Housing prices dropped 38% in Veliko Turnovo.

Bulgarians who bought back these properties got an excellent investment. These properties were in ideal locations and most had also undergone recent renovations. The Bulgarian property market was once considered the top investment location in the world. The Black Sea Coast has been the most dramatically affected by the current real estate market.

During the first half of 2009, sellers were often observed dropping their prices every two week period. Housing prices, however, were expected to stabilize late in 2009 or early in 2010. Interested buyers were encouraged to act quickly to experience the current favorable low housing prices. The Black Sea capital, Varna, had the highest housing prices while Kyustendil had the lowest priced residences.

Most recent home buyers purchased finished units. Eighty per cent of real estate sales in Bulgaria from January-June 2009 were for completed projects. The most popular choice was a two-bedroom apartment selling for below BGN 50 000. The most active sales period was between May and June. Housing construction was at a standstill in the same period. The construction sector, however, was also expected to make a quick and full recovery.

The Bulgarian property market can be a profitable investment for residents and international buyers. The average property price is €551/square meter. Bulgarian prices for consumer goods and services are 51% of the average across the EU. Food prices factor in at 67% of the average EU price. Bulgarian real estate can offer the best deal in a better home for you.

2010

For the second year in Bulgaria, real estate prices favor the property buyer. Although prices are still low, that scenario is expected to change in the near future. Yet there are conflicting opinions about the state of Bulgarian real estate in the coming months. If you are an investor, you might want to act while Bulgarian homes sell for low prices.

Bulgarian Properties

Would You Consider Investing In Bulgarian Real Estate?

Do you live in a 'famous' neighbourhood? What gives your home that claim to fame? Depending on circumstances, neighbourhoods can gain fame or infamy.

Maybe a celebrity grew up on a street or a significant event happened in the area. So possibly, a few people will stop and take a photo of your street - if it has a claim to fame. Yet how many people can say that their neighborhood is preserved in wall hangings, or paintings, or has a business called after it – or better yet – has a wine created in its name.

If you live on Jelly Bean Row in St. John's, Newfoundland, Canada, you have that distinction. Living on Jelly Bean Row is a sweet deal. This charming street is home to Victorian row houses with each one painted a different vibrant color. Put the street in the middle of historic St. John's with its 'Old World' look and you have a hit on your hands.

Geoff Meeker, director of Jelly Bean Row, thought,"Why not create highly detailed art work, print it on a press, and then plaque mount it so that the houses can be hung in a row, just like the real thing!"

In fact, a St. John's business, called "Jelly Bean Row," that makes wall hangings of the colourful homes, has been featured in 'Citizen of the Month' in New York and placed in the top 20 during November 2008 in the 'Mommy Blips' ranking in the U.S. Of course, the 'Jelly Bean Row' wall hangings are meant to hang in a row.

The 'Jelly Bean Row' business has a smart idea for collectibles. Who wants to own 'half' a street? Not even in Monopoly!

Of course, the fame of Jelly Bean Row – the street – doesn't just hang around on the wall. Auk Island Winery in Notre Dame Bay, Newfoundland, makes a 'Jelly Bean Row' wine. Local berries – sweet strawberries and tart partridgeberries (lingonberries) – form the base of this subtle but sweet wine. Together, the Newfoundland berries create a light-bodied wine with a vivid color – similar to the Victorian row.

A 'Jelly Bean Row' wine makes an impression just like the street itself. Visitors to St. John's always like to see this area of the city. It is unlikely that you will miss seeing this street. The brightly-colored Victorian homes don't tend to blend into the background.

What do people think of painted houses in every imaginable bright shade? Usually people answer – charming, cute, makes me smile – and 'garish' is well in the minority. Maybe the houses appeal to our inherent need to express our individuality. More than one resident of St. John's, Newfoundland, is fond of unique style.

Actually, the truth is that jelly bean houses are scattered all over St. John's. Indeed, jelly bean houses come with their own history. St. John's is a city with its roots in the fishery. According to legend, captains painted their homes bright colors so that they could see them from the harbour when they returned from sea.

Fact or fiction, aren't you glad that we shared our row of jelly beans with you today – or at least – Jelly Bean Row?

See more vibrant homes in Bo-Kaap Quarter: Cape Town, South Africa. Is flashy fuchsia or neon green your color?

Would You Like To Live On Jelly Bean Row?

Jelly Bean Row image - design-ties.blogspot.com

The original Hardest Hit Fund, announced by the Obama administration in February 2010 to ease the housing crisis, included five of the "hardest hit" states. The expansion of the fund in March added five more states. On Wednesday, August 11, the US Treasury Department started the next round of help and added seven more states to the "hardest hit" list.

FIVE...THEN TEN

February's funding ($1.5 billion) was earmarked for five states in crisis - Arizona, California, Florida, Michigan, and Nevada. The second round in March ($600 million) was designed to help North Carolina, Ohio, Oregon, Rhode Island, and South Carolina.

MORE THAN TEN

Last week's additional $2 billion extended the aid to Alabama, Illinois, Kentucky, Mississippi, and New Jersey, as well as the District of Columbia. The amount of money given to each state depends on its population.

UNEMPLOYED OR UNDEREMPLOYED

The recipients of the benefits will be unemployed or underemployed home owners who cannot afford their mortgages. The money comes from the Troubled Assets Relief Program (part of the Making Home Affordable Program). Whether you agree with this approach or not, it is hard to deny the need.

CRISIS

Obviously, the crisis is fueled by the same turmoil which was the inspiration for the 'Zero Down' program or the Federal Home Buyers' Tax Credit. The aid might be dressed in different packages and address slightly different angles. Yet when you get right down to the basics, all these measures are meant to raise everyone out of the economic slump. Although many people are finding their way back, some individuals and families are still in crisis. Unemployment is the cause of much of the distress out there.

DIFFERENCE

Last week's 'Hardest-Hit Fund' is slightly different from the original assistance. This recent $2 billion in funding can be used only to help with mortgage payments for "the unemployed or underemployed" home owner. With the February funding, money was given to state housing agencies and they could design individual programs (such as foreclosure prevention programs and similar initiatives) to help their markets.

NEED

The administration believes that there is an urgent and immediate need for this latest program. California though has yet to use the first part of its funding ($700 million) but the state has now received an additional $476 million. Of course, California did come up with a plan – four new programs – from the February funding. The plan has just not gone into operation to date.

NEED FOR FAIRNESS

Besides California's unemployed home owners who are waiting for the program, people in other states are facing similar challenges. As a whole, these states did not qualify in the 'top 17' but that does little to help these unemployed individuals. Actually though, there is supposed to be a $1 billion program under development to help in the other states. The program is expected to be released under the U.S. Department of Housing and Urban Development.

If this program does not come to life, we are left with an odd scenario. Two people are facing the same challenge and one gets help and one doesn't - because of their location. Within any system, the perception of being fair is as important as fairness itself.

What Do You Think About The Expansion Of The "Hardest Hit Fund?"

If you are looking for a hotel room in New York City, you shouldn't have any problem. Next year, it will be even easier again as more hotels are slated to open in the Big Apple.

NEW HOTELS

According to Smith Travel Research, 46 new hotels will have opened in New York before the end of this year. The NYC hotel industry is booming with Manhattan in May having occupancy rates of more than ninety per cent. Occupancy rates haven't been that high in Manhattan since 2004 when they came in at eighty-five percent.

CORPORATE TRAVELER

Actually, corporate travelers are creating part of the boom in the industry. Could that be a sign of a rising economy or just business people travelling further to get business? It will remain to see how that connection plays out in the long run.

As well, New York's hotel figures are often way ahead of other US locations. Let's consider how big a player New York is in the hotel business. Almost one hundred hotels will open this year in major cities across the US and we know that 46/100 will be centered in New York.

CONTINUED GROWTH

The growth in the industry is expected to continue into next year. Observers don't expect tourists to stop coming to New York any time in the near future. So with all those new hotels on the horizon, it is a good time to find a hotel room in New York City. In fact, it is a great time to buy a hotel in New York City.

Despite the talk of big business in New York hotels, the economy is coming out of a slump and, sadly, some did go down with the ship – or go almost underwater. Some fancy hotels are now going for a song – an expensive tune, in most people's eyes – but investors hear the music.

SOLD

The 16-storey, 300,000 sq ft Knickerbocker Hotel (1466 Broadway), built in 1908 by John Jacob Aster, sold for $180, 500,000. In March, Istithmar World Capital, a branch of Dubai World, defaulted on the $300 million mortgage. And, like me, most of you missed out on bidding for the "W New York - The Court" and "W New York – Tuscany." St. Giles Hotel picked up the two midtown Manhattan hotels for $78 million ($243,750 per room).

DON'T WORRY

No need to worry though as you still have lots of chances to buy a NYC hotel. Besides the luxury towers for sale, there are many more affordable hotels on the market. If hotel owners want to raise capital, they recognize that now is the perfect time to sell a New York City hotel. So in NYC hotels, it is a favorable market for buyers and sellers.

REALITY BECKONS

Of course, not everyone is overjoyed with this scenario. Many people hate to see the historic hotels (like the buildings in the Knickerbocker era) from 'America's Gilded Age' going for small change – well, not exactly, small change. Yet some romantics sigh at the change as glamour makes way for reality. Well, of course, the upscale New York City hotels are not really about reality - at least not most people's reality.

Are You In The Market For A NYC Hotel? 

Although the television commercials about mortgages are filled with smiling couples, life isn't always like that. Actually, maybe life even shouldn't be like that. Life is best experienced as a smorgasbord. Indeed, real life is not the stuff of commercials and every couple does not smile all the way through the mortgage process. (In fact, maybe no couple ever accomplished that).

Now a frown or two does not mean that they do not "feel the love." It is simply a fact that getting a mortgage is a stressful time for couples. Sometimes people forget that positive things in one's life come with their own type of stress. The healthy form of stress helps us to meet challenges. Understanding stress is the key to differentiating between good stress and bad stress.

Significant events in your life can bring about this natural response. During the process of getting a mortgage, however, stress levels can go though the roof. Couples can be torn apart at a time when they should be working together.

How To Save Your Marriage and Your Mortgage

1. Understand The Process

Couples must understand that the process of buying a home takes time and patience. It is normal to feel the pressure but your spouse didn't create the system. Sometimes people get annoyed with the process but complain about the socks on the floor or the dishes in the sink. Really, your partner is not to blame for the long wait, honest, trust me! Of course, couples know that, but it's easy to loose sight of what's important when your dream home is nearly – but not quite – in your grasp.

2. Don't Confuse The Dream With Reality

Without a doubt, go for your dream, but maybe you can't get it today. Anyway, a dream without effort seems rather unreal – sort of forever like a 'dream' – but a dream achieved through effort is a dream come true. Maybe you might like the 'penthouse' but your budget screams "small home". When the dreamer marries the practical person, however, a mortgage could be a nightmare but only if they lose their way. Once they remember that a marriage is about a team effort, things get back to normal in short order.

3. There Are No Winners

Don't get too focused on specific things to the exclusion of what matters in life. The – "I have to have" - statement can meet with the reply from your spouse – "But I don't want that." Individuality is admirable and nobody should lose themselves in a partnership. The problem arises, however, when one or both make it their mission to be the winner. They end up living in a house where one half of the couple may not feel at home. I forget; what did the other half win anyway?

4. Know Your Finances

If a couple doesn't know the real state of their finances at the beginning, there is bound to be stress down the road. Couples must determine if they can afford the whole package – the mortgage payments, the maintenance, and other expenses involved in buying a home. A couple might love a house, but if they can't afford it in the long term, it won't feel like a home.

Talbot Boggs wrote recently in the Canadian Press - Mortgages a tricky, scary business.

Mortgages are tricky and they can be scary but being informed gives you a definite advantage. For couples, remembering that, hopefully, the marriage will even outlast the mortgage helps them to put their priorities in order.

Daniel Huerta has some great advice for couples buying a home - The First Five Years of Marriage.

Do You Have Any Advice For Couples Buying A Home?

The estaterebate.com blog was created to be your source for "everything real estate." We have covered topics from low mortgage rates to green homes as well as other relevant and timely real estate issues. The estaterebate.com team is open to your suggestions about real estate topics that you would like to see covered in our blog.

We know that many people have concerns and questions about real estate. In the past, the real estate industry was not so open with its customers. In fact, real estate agents were not even required to explain an agent's true role to their clients. Many customers did not know that a real estate agent is bound by law to represent the seller. A buyer's best option is always a broker who works exclusively for the buyer.

In the 1990s, the Federal Trade Commission (FTC) regulated real estate agents to present a clear picture about their role. Since that time, the industry has been more forthcoming with answers. Yet many people are still in the dark about certain areas of real estate.

Actually, some industry experts believe that the recent housing collapse was spurred on by misinformation given to borrowers. Home buyers and sellers need access to accurate information. Many people have burning questions about the current real estate market.

'Hot' Real Estate Topics

Should I buy now while prices are favorable to buyers?

You should go ahead and purchase a home if you are ready for the commitment. Ultimately, the decision to buy a home has to be based on an individual or family's ability to handle the long term consequences. No matter how good a short term offer or benefit, home buyers have to think in terms of the future. Government incentives or low mortgage rates can be tremendous benefits to buyers who are ready to buy a home. Yet if one is just thinking in the short term, it is easy to get in over your head.

Why do housing markets vary across the US?

Most variations in housing markets are tied to the unemployment rate in the region. Generally, the real estate market is not as strong in areas of high unemployment. Yet sometimes there are exceptions to that rule.

Should I expect a slight drop in my home's value?

The current market does not favor the seller. You can probably expect a substantial drop from 2007 prices. Many sellers in today's market are not expecting the lower returns. They find it hard to believe their real estate agent's quote. A home seller can check with additional sources about local prices. Yet sellers must be prepared to make some compromises in the current marketplace.

How will real estate investors fare in the current market?

The real estate game can usually be lucrative for investors if they are involved in buying and selling. When you are playing both sides, price is not as huge a factor as for the individual home buyer or seller. Real estate investors have to keep the motion going to build profitable investments. Investors cannot afford to be stalled in the process.

Do You Have A 'Hot' Real Estate Topic Suggestion For estaterebate.com? 

In every relationship in life, it really works better if you like the other person. The home seller-real estate agent relationship is no different from any other partnership. Of course, it helps if you think your real estate agent is the perfect match for you.

Yet according to a recent survey, home sellers are not feeling the love towards their agents. Home buyers seem more satisfied with their fate but home sellers are a dissatisfied lot at the moment. According to J.D. Power & Associates, a marketing-data company, the home sellers' satisfaction score is down 40 points from last year. In the meantime, buyers' satisfaction with their agents has risen 12 points.

The discontent seems to have grown because home sellers are blaming the messenger. With the end of the Federal Home Buyers' Tax Credit and the general economic climate, sellers might have to consider reducing their prices. Some home sellers are not taking kindly to that message. Real estate agents are bearing the brunt of the blame.

Industry observers say that most agents are doing an expert job for sellers. The real estate agents are negotiating and marketing to the best of their ability. Their popularity keeps slipping, however, and their image is being influenced by the state of the economy.

The reality is that home sellers have to be prepared to put forth extra effort in a buyer's market. Some sellers are not willing to do that and, after all, it is much easier to blame your real estate agent. When home buyers can have their pick, sellers want to make certain that they pick their home.

Maybe it will require a reduced price to make that sale. Maybe it will take more renovations and better landscaping. When buyers have a choice, they are going to choose the best model. Home sellers might want to pay attention and listen carefully to their real estate agent.

It may not be smart to stick to the price that houses on the street were selling for in past months. What are homes selling for today on your street? Sometimes people even make the mistake of focusing on the price of a similar house across town.

Home sellers have to be realistic because real estate is a very 'local' matter. Sellers should stay with the price trends in their neighborhood. They do not want to go above those prices and be left the loser. Home sellers should be open to their agent's suggestions. Problems with the sale of a home are not always the fault of the real estate agent.

Of course, as in every profession, there are real estate agents who do not want to put in any extra effort. Home sellers should always take some time to choose the right agent for their individual needs. Since marketing of the home will be the key to a successful sale, sellers should check out the agent's tools and approach.

Sellers need someone who will do everything possible on their behalf – online marketing, open houses, and more. Yet home sellers cannot expect the real estate agent to be able to control the economy. Sometimes the seller just has to go with the flow.

Do You Like Your Real Estate Agent?