Your Arizona Real Estate Connection

Owning your Home Offers Some Tax Advantages

rbredahl@gmail.com (Health Insurance Web Quotes) — Wed, 04 Nov 2009 22:45:00 +0000

Owning your Home Offers Some Tax Advantages

Whether you own a mansion or a mobile home, many home-related expenses are tax deductible.

Mortgage interest and property tax are well-known deductions. To take advantage of them, you have to file the 1040 long form and Schedule A. For some homeowners, however, it might be better to file the EZ form because standard deductions would be greater than the allowable expenses.

The interest on a home equity loan is fully tax deductible unless the balance on the original mortgage plus the equity loan is greater than the property's value. After that, it's on a sliding scale. If you bought your home after Jan. 1, 2007, mortgage insurance is fully tax deductible if your income is $100,000 or less.

Mortgage interest and property taxes on a vacation home are deductible. But it doesn't even have to be a house. It could be an RV as long as it has cooking, sleeping, and bathroom facilities.

If you paid points to get a better interest rate on any of your home loans, you can deduct the points in the year you paid them. If you refinance the home, points are deducted over the life of the mortgage.

If you changed jobs and had to move more than 50 miles and had to sell a home because of the move, moving expenses are deductible unless reimbursed by an employer.

When your home has been damaged by a natural disaster such as fire, hurricane, or flood, some of the bills for renovating the property that were not covered by insurance can be deducted. Check with your tax preparer for more information.

Do you have a home office used on a regular basis for business? Keep records on the percentage of the house that is used for business and make a proper allocation of expenses. For example, if 20 percent of your house is used for business, you will be able to deduct 20 percent of utilities and basic home repairs.

Keep records that show what you do in your office to constitute a business activity.

See us at:

http://RalphandTricia.com

The Basics of Foreclosure “Short–Sales

rbredahl@gmail.com (Health Insurance Web Quotes) — Sat, 24 Oct 2009 14:45:00 +0000

by Attorney William Bronchick

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You will likely come across dozens of properties in foreclosure with little or no equity, that is, the seller owes at close to or more than the property is worth. In these situations, lenders are sometimes willing to accept less than the full amount due, commonly referred to a “short pay” or “short sale.”

Negotiating a short sale with the lender is a difficult process, generally because it is a daunting task finding a bank officer who has the authority to accept a discount. You will have to call around to locate the lender’s “Loss Mitigation Department”. More than likely, each lender you deal with will have a separate name for this department, so be patient when calling. Much like getting your phone bill corrected, you can expect the process to involve a lot of waiting on hold and being bounced around an intricate maze of automated voice mail systems. Once you get in touch with the right person, then the negotiating begins.

From the lender’s perspective, a short sale saves many of the costs associated with the foreclosure process - attorney fee’s, the eviction process, delays from borrower bankruptcy, damage to the property, costs associated with resale, etc. In a short sale scenario, the lender gets the property back faster, so it is able to cut its losses. Your job as the investor is to convince the lender that it will fare better by accepting less money now.

The lender will want some information about the property, the borrower and the deal he has made with you. Specifically, the lender wants to know what the property is worth. The lender will generally hire a local real estate broker or appraiser to evaluate the property (called a broker’s price opinion or “BPO”). You can also submit your own appraisal or comparable sales information. In addition you will want to offer as much specific negative information about the property as possible. Also, include some relevant information about the neighborhood and the local economy if things are bad (copies of newspaper articles with “bad news” may help). A contract’s bid for repair estimates should also be submitted, which, of course, should be the highest bid you can obtain!

The lender will also ask for financial information about the borrower. Sort of a backwards loan application, the borrower must prove that he is broke and unable to afford the payments. The borrower must show that he has no other source of income or assets to repay the loan. This process may involve as much, if not more paperwork than an original mortgage application! The borrower should submit a “hardship letter”, which is basically a sob story about how much financial trouble the borrower is in. This may require a little literary creativity, and some help on your part. Don’t lie, just paint a picture that doesn’t look good.

Finally, the lender generally wants to see a written contract between you and the seller. The lender wants to make sure the seller isn’t walking away with any cash from the deal. Generally, the contract must be written so that the buyer pays all costs associated with the transaction, so that the “net cash” to the seller is the exact amount of the short pay to the lender. A preliminary HUD-1 settlement statement is often requested, which can be difficult, since many title and escrow companies simple won’t prepare one in advance of closing. You can prepare your own HUD-1, and simply write “preliminary” on the top.

Don’t be surprised if your first short sale bid is rejected. Lenders aren’t emotionally attached to their properties, so they aren’t as likely to give you steal. Many short sales fall through if the BPO comes in too high, which is often the case. You can’t pull the wool over a lender’s eyes – if the property isn’t is need of serious repair, it is unlikely you can convince the lender the property is worth a whole lot less than the appraised value.

The process of the short sale is not that complicated, but the success or failure of the deal depends upon how you present it to the lender. Many novice investors and realtors give up at short sales quickly because their first deal is rejected. Like any business, short sales takes practice to get good. Generally speaking, loss mitigators are pretty good at spotting an amateur investor. If you know what you are doing, the loss mitigators are more likely to make a deal with you.

Calculating retirement income from Rental properties

rbredahl@gmail.com (Health Insurance Web Quotes) — Fri, 16 Oct 2009 16:15:00 +0000

Whether you have a 401k or other retirement plan, income from a rental property can make your later years more enjoyable.
After finding one in your price range, the next step is calculating its cash flow. That means determining what your annual expenses will be and deducting them from the rent. The balance is ysour cash flow.
Depreciation sounds like an expense, but it is generally a tax advantage. On a $125,000 property, for example, the depreciation over 27 and one-half years comes to $3,636 per year. This is a tax deduction.
In the early years of your mortgage, interest will reduce earnings on the property so you won't have much of a profit. During this time, the depreciation comes in handy to reduce taxable income from other sources. In later years, it will reduce the amount of tax you pay on rental profits.
When you retire, you can use monthly rental income for normal expenses and travel.
Or you can sell the property and have a lump sum to use for something you always dreamed of, like a luxury RV in which to tour the country. In years to come, your property could double in value.
Some things to consider when looking for a rental property:
* Good location. Today, rents are rising and will continue to rise in stable neighborhoods. The location should be not too distant from where you live now.
* You can often buy a duplex for not much more than a single family home, and rents will be higher.
* Find a building that's not too old so it will comply with building, zoning, and fire codes. And it will have lower maintenance costs. Have it inspected.
* Have your real estate agent tip you off to a building with an out-of-town owner who is eager to sell. Sometimes such owners will take a two- or five-year contract for deed, which means a very small down payment. Be sure to visit http://ralphandTricia.com

Key indicators from Phoenix's Housing Market

rbredahl@gmail.com (Health Insurance Web Quotes) — Sat, 10 Oct 2009 13:36:00 +0000

There are some positive signs coming from metropolitan Phoenix housing market. Foreclosures dropped slightly in September while home prices inched up again.
Last month, lenders foreclosed on 3,759 Valley homes, an almost 5 percent drop from August, according to the Information Market. It's the second month in a row foreclosures, or trustee sales, have fallen. Pre-foreclosures also dropped in September, a good sign there will be another decline in foreclosures this month. There were 7,857 pre-foreclosures, or notice of trustee sales, filed by lenders last month. That's an 11 percent drop.
There's been a big push by the government and nonprofits for lenders to do more loan modifications, which could be behind the decline in foreclosures. Whatever the reason, at least for now, it means more people keeping their homes.
The median price of metro Phoenix home sales climbed to $130,000, according to Mike Orr's Cromfort Repord. The median a month ago was $127,000. Home prices, particularly in many of the Valley's edge communities have been slowly climbing since April, reports Orr, who analyzes Arizona Regional Multiple Listing Service data daily.
New Valley home prices are up as well. Real estate analyst RL Brown's Phoenix Housing Market Letter reports the median price of a new Valley home is at $197,948, after hitting a recent low of $184,750 in July.
However, home building fell after showing some gains in recent months. There were 6964 single-family housing permits issued Valleywide. Home sales overall were down slightly from August but are still well ahead of last's year pace.

Worst may be over for housing in the Valley

rbredahl@gmail.com (Health Insurance Web Quotes) — Sat, 10 Oct 2009 13:18:00 +0000

Worst may be over for housing in the Valley

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HUD Properties, FHA & Title Seasoning

rbredahl@gmail.com (Health Insurance Web Quotes) — Sat, 10 Oct 2009 13:01:00 +0000

by William Bronchick

With HUD properties, title seasoning, FHA loans, and short sales, investors have had some confusion regarding the rules. This article will clarify all of these issues for you.

HUD is the United States Department of Housing and Urban Development, a government agency whose goal is to increase homeownership, support community development . The Federal Housing Administration (FHA), which is part of HUD, provides mortgage insurance on loans made by FHA-approved lenders throughout the United States.

HUD and FHA come into play in three different scenarios in the investor/foreclosure arena.

HUD Foreclosed Properties

When a person gets an FHA loan, it is funded through a private lender and the loan is insured or backed by the Federal Housing Administration. When the loan is in default, FHA pays out the lender and take an assignment of the loan. When the property is foreclosed, it is owned by HUD. HUD then offers these properties for sale to both owner-occupants and investors. The properties are offered on the local MLS computer database, but you have to submit an offer through a HUD-approved real estate broker. The offer is made under a bid process, under which the HUD will either accept or reject your offer depending on what other offers are submitted. An investor can buy, hold, or flip these properties if their offer is accepted.

FHA Loans and Title Seasoning

Then second place HUD comes into play is the FHA loan. If a buyer of your property gets an FHA loan, there is a title seasoning requirement of 90 days. In other words, if you are selling the property to an FHA buyer, you must have title recorded in your name for 90 days before the closing and funding of the FHA loan. This precludes you from doing a double-closing or a short term (less then 90 days) flip.

Keep in mind that the 90 day seasoning rule has nothing to do with HUD-owned properties as described above. In other words, you can buy a HUD property and flip it 3 minutes later so long as your end-buyer is not using FHA financing.

The third place HUD comes into play is if you are working on a foreclosure short sale on a property that has an FHA loan. In this case the Federal Housing Administration is insuring the loan and must approve the short sale. You can buy a property with an FHA loan on it, then flip it without a title seasoning issue, unless your end-buyer is getting an new FHA loan.

In summary, don't confuse the FHA new loan 90-day title seasoning requirement with the two other scenarios, HUD-owned properties and and existing FHA-insured properties. For more information on HUD properties and FHA loans, visit www.hud.gov.

http://www.ralphandtricia.com/

FHA steps up to serve first-time homeowners, more . .

rbredahl@gmail.com (Health Insurance Web Quotes) — Sat, 10 Oct 2009 12:57:00 +0000

First-time buyers and those who have lower to middle income have an old way, now turned new, to find a mortgage. In the Phoenix Arizona real estate market FHA is becoming the mortgage of choice.

Many are turning to federally-backed Federal Housing Administration (FHA) loans. Mortgage applications increased from 41,530 in December 2006 to 73,444 in June of this year.

When the FHA was established in 1934, it copyright 2008 PAGES Editorial Service buyers to get a home of their own. In 1934 it was difficult to get a home loan because many banks required a down payment of up to one-half of a home's purchase price.

Today, FHA requires a 3.5 percent loan down payment.

As many mortgage companies came up with innovative financing plans for home buyers in recent years, the number of buyers turning to FHA fell significantly. Though there are still some nothing-down loans available from mortgage companies, most require the buyer to have a high credit rating and above-average income to get one.

While the FHA system needs some updating, it still works for many people. One of its flaws is the current maximum for a single-family home, which is $362,790. In San Francisco, however, the average home price is $748,100, according to the National Association of Realtors. Buyers in the Phoenix Metro are able to find some very nice housing that fits into that range.

Because some lenders don't care to deal with FHA paperwork, usually a mortgage broker handles the loan. It usually takes from 90 to 120 days to get approval. Buyers should know what the entire cost of the mortgage will be including the broker's fee.

Meg Burns, FHA's director of the Office of Single Family Program Development says, "Given how many borrowers really could benefit from FHA financing but how few of them do, I would say we are still in the doldrums."

The FHA is anticipating more applications as mortgage companies continue to make requirements more stringent.

To learn more about FHA and other Real Estate questions visit us at

http://www.ralphandtricia.com/

rbredahl@gmail.com (Health Insurance Web Quotes) — Wed, 07 Oct 2009 14:57:00 +0000

I found this fascinating quote today:

As the, so far, jobless recovery continues, the White House is reportedly hunkered down trying to figure out what to do next. Obama administration officials are taking note of programs that have worked and those that have not done as well. biggerpockets.com, First Time Home Owner Tax Credit Likely To Stay; But Current Homeowners Still Face Uncertain Future, Oct 2009

You should read the whole article.

Are Short Sales and Foreclosures Your Path to Riches?

rbredahl@gmail.com (Health Insurance Web Quotes) — Tue, 06 Oct 2009 15:06:00 +0000

There are hundreds of properties in the Phoenix Metro approaching foreclosure and homebuyers and investors are seeking the best deal towards pursuing short sales. Our current real estate market has no doubt seen better days and investors know short sales are a sure path to big profits.

While we get this ideal picture in our heads of locating the perfect house, purchasing and either flipping for profit can be far from the truth. Before approaching the idea of investing in short sales and foreclosures you should take caution and fully understand how the process works.

Short Sales

In a conventional home sale, the property is sold for enough money to pay off the existing mortgage or mortgages, and to pay the sellers’ closing costs. When the mortgage amount plus closing costs equal more than the selling price, the sellers are “short” the amount needed to close the sale.

Sellers with sufficient financial resources can use money from other sources such as savings, to pay the amount they are deficient and complete the sale. Sellers unable to do this may convince their lender to accept a loan payoff that is less than the amount owed. A “short sale” refers to a sale where the lender agrees to accept a reduced loan payoff. Some lenders call this a “workout.”

Wondering why a lender would agree to accept less than full payment? Today most lenders will accept a BIG deduction because their books are full of foreclosed homes or homes steadily approaching that phase. These lenders would prefer to clear the loan from their books, even at a loss. When a borrower becomes delinquent on loan payments the lender is often faced with a foreclosure procedure, which is very costly.

Negotiating with the lender can be difficult. Many lenders will not consider a short sale until the property is marketed and the sellers are sure they cannot sell for enough to pay the loan off completely.

Anyone purchasing a short sale will need a lot of patience. This process usually takes time and will require persistent savvy negotiation on the part of the sellers and their agent.

You probably will have more difficulty negotiating the price on a short sale property than on a property where the sellers are making a profit. But even though the lender will want the highest price possible to minimize their losses, they usually have a strong motivation to sell. If they didn’t have an urgent need to sell NOW, they would just wait for the market to improve.

Foreclosures

Sellers who are selling short are probably not current on their mortgage and are in financial disarray however they are taking measures to appropriately sell their house and maintain some level of credit worthiness. A foreclosure on the other hand is a completely distressed sale that occurs when there is no hope of the owners saving their home or negotiating fair terms with the lender.

Several types of foreclosure proceedings exist and state law governs the specifics of how foreclosures are handled. Often foreclosed properties are sold to the highest bidder. Those properties not sold off to a new owner revert to the lender and are called REOs – real estate owned. REOs are often listed for sale through a real estate broker, but sometimes lenders have an inventory of REOs that are not actively marketed.

You could get a good deal purchasing a foreclosure property, but buying foreclosures like fixer-uppers, requires hard work and thorough research. Often touted as a quick way to get rich, you can just as easily lose your shirt on foreclosures. You need lots of hand-holding from an experienced realtor.

If property values have dropped since the property was purchased, the remaining loan balance could exceed the market value of the property. So you may end up not getting a great break on the price.

Some foreclosures are sold “as-is” regarding property condition. If this is the case, make sure to have the property thoroughly inspected before you make an offer. A distressed sale property is most likely in bad condition.

Both types of purchases can be a good investment for a buyer with patience and those willing to put in a little time and research. See our articles at Are http://www.ralphandtricia.com/randt.rss.txt

It's Time to Invest in Real Estate

rbredahl@gmail.com (Health Insurance Web Quotes) — Tue, 15 Sep 2009 02:35:00 +0000

James B. Stewart (as published in SmartMoney September 1, 2009)

Passing through the Fort Myers, Fla., airport a few weeks ago, I noticed people eagerly signing up for a free bus tour of foreclosed real estate — with all properties offering water views. During the ride to my hotel, the young driver volunteered that he'd just bought his first house, paying $65,000 for a foreclosed property in nearby Cape Coral that had last sold for over $250,000. He said he'd never expected to be able to buy anything on a driver’s salary, let alone something that nice.
Last week, Standard & Poor’s reported that its S&P/Case-Shiller U.S. National Home Price index of real estate values increased this past quarter over the first quarter of 2009, the first quarter-on-quarter increase in three years. Its index of 20 major cities also rose for the three months ended June 30 over the three months ended May 31, with only hard-hit Detroit and Las Vegas experiencing declines. The week before that, the National Association of Realtors reported that sales volume of existing homes was up 7.2% in July from June.
In short, the data suggest that real-estate prices hit a bottom some time during the second quarter, and have now begun to rise. There’s no way to be certain that this marks the end of the long, painful correction that followed the real-estate bubble, but clearly prices are no longer in free fall. That means if you've been sitting on the fence, it’s time to act.
Ordinarily I'd never try to time the real-estate market, but I can understand why buyers have been cautious. Few want to buy in down markets, just as stock buyers avoid bear markets. And for most people, of course, buying a house is a much bigger decision than buying a stock. But with real estate prices nationally now down about 30% from their 2006 peak, and showing signs of turning up, the prices aren't likely to go much lower. Every real-estate market is local, and so there may be a few exceptions. Overall, though, I can't imagine a better time to buy than right now.
In addition to bargain prices, buyers should find plenty of homes to choose from. The inventory of unsold homes was 4.09 million units in July, up 7.3% from June, according to the National Association of Realtors. And mortgage rates this week were at a two-month low of close to 5%, according to Zillow. Even the stricter appraisal process is working to the advantage of buyers. Appraisals are coming in far lower than most sellers have been expecting, forcing them to face the new reality of sharply lower prices. And with stricter standards, lenders aren't going to let buyers borrow more than they can afford, which protects buyers and helps to keep prices down.
Unless you’re really prepared to accept the demands (and headaches) of being a landlord, I don't recommend direct ownership of real estate as an investment. The days of buyers lining up to buy and flip Miami Beach and Las Vegas condos are mercifully gone. There are much easier ways to make money in real estate, such as real-estate investment trusts or buying shares in home builders and other housing-related businesses (such as Home Depot (HD)). Historically, the mean rate of return on real estate has been around 3%, according to research from Yale economist Robert Shiller, who co-developed the Case-Shiller index. Shares in REITs and other stocks have often done much better.
But there’s a good reason home ownership has been such a central part of the American dream. It delivers security, pride of ownership, a sense of community and decent investment returns as a bonus. I felt glad for my driver in Florida. He represents the other side of the foreclosure crisis. For every hardship story, and no doubt there are many, others are realizing their dreams of home ownership and getting what may well turn out to be the deals of their lives

Homeowners Facing Foreclosure Should Converse with a Realtor

rbredahl@gmail.com (Health Insurance Web Quotes) — Thu, 10 Sep 2009 18:14:00 +0000

Many homeowners already shell-shocked by the state of their financial affairs bury their heads in a hole until it’s too late. There are plenty of ways to fight back and save your home and your good credit. Don’t just stop with a call to the bank; add a Real Estate agent’s name to the list.

Your first call should be to the mortgage lender. Banks understand the economic downfall has placed many homeowners in a corner, unable to make their payments. Loan modifications, Repayment plans and Reinstatements are all options to help you remain in your home; but many times a loan modification or even mortgage forbearance will not work for you; this is when you give a call to a Realtor and seek other options.

While selling your home may not be your first choice it’s surely better than a foreclosure and bad credit scores. A real estate agent can help you negotiate with your mortgage lender and perhaps work out a short sale.

The deal breaker here will be how long you waited to seek out help but any call for help is better than none at all.

A Silver lining

rbredahl@gmail.com (Health Insurance Web Quotes) — Sat, 04 Jul 2009 18:22:00 +0000

We are Realtors in the Phoenix Arizona and have been hit harder than most areas with foreclosures. It is difficult to find properties that are not lender owned (unless they are short sales which will soon be lender owned in most cases)
However, there is a silver lining in the market. Buyers are returning in large numbers and REO's are selling in a few days with multiple offers being the norm. I too believe that a new wave of foreclosures is due soon but, at least here, the savvy buyers are ready, willing and able.
It is an exciting time to be a Realtor in the Valley of the Sun. See more at http://RalphandTricia.com

I should have--------------

rbredahl@gmail.com (Health Insurance Web Quotes) — Sat, 20 Jun 2009 16:41:00 +0000

I had a phone call the other from a person that was looking for a house to lease. He stated that he had great credit and a nice down payment in the bank. He went on to say that he plans to live in the area for several years. When I asked why he didn't want to buy he told me that he wants to see what happens with the market.

Now I admit that my opinion may be a little biased but I told him that if he plans to stay in the house for a few years a wise decision would be to buy.

Prices have begun to stabilize and the number of homes on the market has decreased over the last several weeks. This is due in part to programs that encourage the lenders to renegotiate with home owners that are having trouble paying their mortgages. Also, interest rates continue at record lows. (And yes if you have good credit and money down there is mortgage money available.) And then don't forget that mortgage interest is tax deductible. For a first time buyer its like giving yourself a raise.

Well to make a long story short he choose to sit on the sidelines and maybe someday join the group that will say, "I should have bought when . . . .!"

Recovery around the corner??

rbredahl@gmail.com (Health Insurance Web Quotes) — Fri, 12 Jun 2009 00:57:00 +0000

by Kenneth R. Harney
If rising sales, rising consumer confidence, and rising new construction are keys to a
rebound ahead in the home real estate market, it looks like we're well into recovery
mode.
That's because this week, all three of those important indicators are strongly positive. On
top of that, we've got low mortgage interest rates…and an eight thousand dollar home
buyer tax credit - working as well.
Take consumer confidence if you really want proof: After six months in the doldrums,
consumers' attitudes about the national economy and their own personal financial
situations took a major jump to the positive side in the past month.
The Conference Board's national Consumer Confidence index soared to its highest level
in eight months, up 14 points in the span of just 30 days. That's crucial for future home
buying and selling behavior because when people are worried about their economic
futures, they stay on the sidelines.
Lynn Franco, director of the Conference Board's research center, said the latest numbers
show that consumers are now considerably more optimistic about everything from jobs
to their own finances - more so than they've been for most of this recession.
A second important indicator last week came with the National Association of Realtors'
monthly home sale report. Sales of single family homes, condos, townhomes and
cooperatives jumped nearly three percent in April -- with the biggest gains at the
lower-priced segments that appeal most to first-time buyers seeking the $8,000 tax credit.
In the Northeast, sales jumped nearly twelve percent, in the West by three and a half
percent, and in the South by two percent. Only the Midwest saw a decline -- by about
two percent.
New home building starts and permits are also on the upswing after months of negatives.
In hard-hit California, new home starts increased 21 percent in April over March -- the
most dramatic jump since last October.
Bob Rivinius, head of the California Building Industry Association, said "month to month
increases (in sales) indicate that builders are (finally) clearing out their inventories and
starting to build again."
Mortgage rates have hovered just under five percent, with the average thirty year fixed
rate loan going for 4.8 percent last week … and 15 year money stable at 4.4 percent. But
there are inflationary pressures at work in the market, so don't be surprised if mortgage
rates rise in the coming weeks.
The main sobering news last week was on prices. According to the federal government's
home price index for purchases, prices were down by an average one half of one percent
in the first quarter, and by 7.1 percent when compared with the first quarter of 2008.
Published: June 2, 2009
www.realtytimes.com

FHA Tax Credit Monetization Helps Home Buyers With Upfront Costs

rbredahl@gmail.com (Health Insurance Web Quotes) — Thu, 11 Jun 2009 15:07:00 +0000

RISMEDIA, June 11, 2009-First-time home buyers who would otherwise qualify for the $8,000 tax credit, but don’t have the money for a down payment or closing fees, may now be able to get a loan to help cover those upfront costs.

The U.S. Department of Housing and Urban Development (HUD) announced on May 29 that the Federal Housing Administration (FHA) will allow state housing finance agencies to provide second mortgages “monetizing” the tax credit so that borrowers can use the funds toward their down payments and closing costs for the purchase of homes with FHA-insured mortgage loans.

“This is great news for thousands of families who want to take advantage of today’s low interest rates, competitive prices, great selection and the federal tax credit that is only available until Nov. 30, but could not save enough money for a down payment and closing costs,” said National Association of Home Builders Chairman Joe Robson, a home builder from Tulsa, Okla.

HUD also announced that FHA-approved lenders may purchase the tax credit from the home buyer in advance, so that the home buyer can use the funds for closing costs or to make a down payment in addition to the 3.5% minimum. Home buyers who go directly to FHA-approved lenders will still need to come up with the 3.5% minimum down payment that is required for an FHA-insured loan.

Home buyers previously would be able to use the funds from the tax credit only after filing their federal tax returns and had to come up with the pre-purchase costs on their own.

NAHB estimates that 40,000 more homes will be purchased due to the new FHA monetization program, in addition to the 160,000 sales already expected as a result of the tax credit.

The National Council of State Housing Agencies has a list of states offering first time home buyer tax credit loan programs on their website, www.ncsha.org.

For information on the $8,000 first-time home buyer tax credit, go to www.federalhousingtaxcredit.com [2].

2020 Wahington Gilbert AZ

rbredahl@gmail.com (Health Insurance Web Quotes) — Wed, 10 Jun 2009 02:29:00 +0000

Gilbert az Realtor

rbredahl@gmail.com (Health Insurance Web Quotes) — Mon, 08 Jun 2009 13:01:00 +0000

2020 W Washington Home for sale in Gilbert Arizona. Close to San Tan freeway. Close to San Tan Village Mall. Gilbert school district. Pebble tech heated swimming pool on a half acre lot. Ramada and Large Grassy Area completes outdoor living enjoyment. Island Kitchen boasts distressed, low-sheen Alder Cabinets, Gas Stovetop & wall Micro/Oven combo. Huge Great Room features custom Fireplace with 8 foot French door to patio. Roomy Master bedroom with French door to patio & huge walk-in closet. Lots of storage throughout house including Master Bath Linen Closet. Large Secondary Bedrooms with walk-in closets. Cherry wood floors in Kitchen, Dining & traffic areas. Crown molding in Kitchen, Great Room, Dining & Master bath. 8 foot Exterior and Interior doors Must see to love this custom home for sale in Gilbert Arizona!

Ups and downs of todays market

rbredahl@gmail.com (Health Insurance Web Quotes) — Sat, 06 Jun 2009 00:03:00 +0000

A Glendale home that sold less than two years ago for $259,000 sold again three months ago for $113,000. A Phoenix home that fetched $190,000 two years ago just went for $45,900. A Queen Creek home sold for nearly $275,000 when it was built in 2005. Last month's price: $78,000.
If there's an upside to the Valley's growing foreclosure problem, it's the number of home bargains now available.
Lenders saddled by a growing portfolio of foreclosed properties are selling homes for prices not seen in metropolitan Phoenix for a decade."I haven't seen pricing like this ever," said Beth Jo Zeitzer, president of the foreclosure real-estate brokerage Phoenix-based R.O.I Properties. "Valley foreclosure properties are plentiful and priced to sell."
Almost half of all Valley home sales last year were foreclosed homes resold by lenders, according to an analysis of sales data by The Arizona Republic.
Investors, first-time buyers, retirees and people moving up to bigger homes are all taking advantage. Deals can be found on nearly new homes on the Valley's fringes, fixer-uppers in historic neighborhoods in central Phoenix, new and old condominiums from Mesa to Glendale, and even luxury homes in Scottsdale.
There are some potential pitfalls to buying foreclosure homes: bidding wars, repair costs, financing and the risk that home prices will continue to fall. But foreclosures do offer an opportunity to buy Valley homes at prices unthinkable just a few years ago.
"There's a lot of properties to choose from, particularly in the $100,000 range," Zeitzer said.
Finding deals
Nearly half of Valley homes for sale are properties that lenders have taken back or that are about to go into foreclosure, according to the Cromford Report, which analyzes area real-estate data. Market watchers expect that number to increase in the next few months as the foreclosure moratoriums put in place by big lenders begin to expire.
Prospective buyers can find foreclosed properties on most Internet sites that list houses for sale and by contacting real-estate agents.

Before buying a foreclosed home, check out the neighborhood. Are there other foreclosures that might threaten your hoped-for resale price? Are there rentals that might drive down your rental income? Are there empty homes for sale that soon might become foreclosures themselves?
"Look at other homes in the area, particularly on the same block," said Julie Bieganski, a real estate agent with 1st USA Realty. "Check out the schools, the shopping and the roads." In January, she and her husband paid $63,000 for a foreclosed home in Phoenix that they plan to sell or rent. More than $261,000 was owed on the home when it was foreclosed on last fall.
"Try to buy the ugliest home on the block," she said.

The most popular segment of the foreclosure market now is homes priced below $100,000. Many of the best deals can be found in the West Valley, south Phoenix and Pinal County, the areas hurt most by the housing-market downturn.
"You are going to find the real deals on the homes with the most (physical) damage in the neighborhoods with the highest foreclosure rates," said Realty Executives agent Brett Barry, who says 70 percent of his business now is listing foreclosures. "Those are the homes that draw the multiple offers."

He said lenders don't want to spend more than $15,000 to $20,000 to fix up a foreclosed home for a sale. So if a home has extensive damage, the price is discounted more. Some foreclosed homes have been stripped of appliances, light fixtures, tile and even toilets by former residents.
Bob Ortega bought a foreclosed home in Queen Creek for $90,000 late last year. Similar homes in the area that aren't in foreclosure were listed for more than $150,000. But he had to buy a new stove, refrigerator, washer and dryer and then repaint and carpet the house.
"The last owners must have been mad because they did some real damage," he said. "It was a big headache, but I think I ended up with a deal."
Unfortunately, he is seeing other foreclosed homes in his neighborhood now selling for $10,000 to $20,000 less than he paid.

Facing Foreclosure? Here Are Do's and Don'ts

rbredahl@gmail.com (Health Insurance Web Quotes) — Fri, 05 Jun 2009 23:10:00 +0000

Facing Foreclosure? Here Are Do's and Don'ts
It's a situation facing hundreds of thousands of people - and the numbers are growing rapidly.

Foreclosures aren't just happening to people who over-leveraged themselves and got into risky loans. They are happening to homeowners who are getting divorced, facing health issues, needing to relocate for a job, and numerous other reasons. Regardless of how you may end up falling behind on your mortgage, knowing what to do next is critically important.

The Douglin Group and Foundation gives free seminars and workbooks to the public for homeowners facing foreclosure. Carla Douglin is the founder and CEO. Here's a Q-and-A with her.

Q: There's a lot of information out there about foreclosures, but one thing the news media tend to tout as being the first action step should actually be postponed. Why?

A: "A lot of the news media are talking about the first thing you need to do is contact your lender. However, if [homeowners who are] facing foreclosures contact their lender first, the first person they interact with is the customer service agent, who may threaten them and tell them 'We're going to foreclose on your home right away' and scare them into not taking action. If they get to a loan mitigation person and they are talking to them, they may agree to a workout that they cannot afford just to get the phone calls to stop. However, if they agree to a workout they cannot afford and they miss a payment, [the homeowners] have essentially lied to their loan agency. And that's not something good."

Q: Homeowners generally fall into a panic mode shortly after they realize the severity of their foreclosure circumstances. What do you recommend they do first?

A: "People need to back up, really stop panicking. … [They need to] look at their finances, look at their income, look at their expenses, and any liquid cash and then call their lender with that information so that they can work out something that's really going to help them and not break them."

Q: What can homeowners say to their lenders to help influence them to work out a mutually beneficial arrangement?

A: "If you have gone through the steps of understanding what your deadlines are and then facing your finances and you still see that you're short, that's where you do need to communicate with your lender and say, 'I need to work out some other agreement with you because right now I don't have it.'"

Q: How receptive are lenders when homeowners say they can't pay their mortgage?

A: "What people are finding is that lenders are willing to work with them. It will take a whole lot of persistence on the part of homeowners. They really need to make sure that they're not intimidated by the conversation they need to have with their lender. But they need to step up and say, 'I am not going to be able to make this. What can we do to suspend the payment, lessen the payment or modify the payment until I get back on my feet?'"

Q: Homeowners should also look for other sources of money. Where can they find this help?

A: "There are some employers who have a $5,000 loan that they are able to give their employees with low interest. They can pay it back through their pay over time; that's one. Two, there are grant programs through housing counselors like HUD; there are grant programs that are available to people who are going through foreclosure. [Homeowners] can reach out and be able to get some money that way."

Q: You advise homeowners to also think outside the box to help come up with money; what are those creative strategies?

A: "A lot of people are taking in boarders and renting out rooms. Some people are renting out their entire house and they are staying with family so that they can make the mortgage payment. These are all things that homeowners need to do - think a little bit outside the box when it comes to a solution.

"There are plenty of other alternatives, and people just need to look for them and apply them as quickly as possible."

Looking for solutions to an emotionally and financially draining situation such as a foreclosure is fatiguing and frustrating. However, if you realize there are options, you can begin to build momentum to rectify your situation.

Ultimately, it's critical to consult with experts on this matter, to be open about your financial dilemma, and to seek help immediately. For instance, real estate agents can either help you sell your home in a short sale, if necessary, or rent it out to help you pay your mortgage. Trying to do it alone can be a painfully disastrous experience - seek the help you need.

Monetize New home buyers Credit

rbredahl@gmail.com (Health Insurance Web Quotes) — Fri, 05 Jun 2009 22:59:00 +0000

Eligible purchasers who apply for mortgages insured by the agency may soon be able to get bridge loans or cash advances -- up to $8,000 -- that they can use for the down payment or closing costs. By Kenneth R. Harney

May 24, 2009

Reporting from Washington - The $8,000 federal tax credit for first-time home buyers is about to morph into a ready-cash down payment source, thanks to a new federal policy change.

Buyers eligible for the credit who apply for mortgages insured by the Federal Housing Administration may soon be able to get bridge loans or cash advances -- up to $8,000 -- that they can use for the down payment, closing costs or other loan expenses pending receipt of their tax credit check from the Internal Revenue Service.

Housing and Urban Development Secretary Shaun Donovan announced the FHA change May 12 in a speech to the National Assn. of Realtors. The idea, he said, is to "monetize" -- turn into immediately spendable cash -- a tax credit that often is not received until months after the settlement date.

As many as half of all would-be first-time buyers do not have enough cash on hand for a down payment and closing costs, according to building and real estate industry estimates. By advancing these consumers as much as $8,000 at closing, many more would be able to afford the purchase.

Officials at the National Assn. of Home Builders say the bridge loan feature could double the total number of home purchases stimulated by the 2009 tax credit program to more than 300,000, depending on how many private lenders and state housing agencies participate.

Under guidance drafted by the FHA, all lenders approved to do business with the agency will be authorized to provide bridge loans at closing -- secured solely by the tax credit that the borrower anticipates receiving from the IRS. State and local government agencies and nonprofit organizations approved by the FHA will be allowed to offer either bridge loans or second mortgages secured by the house.

Although the $8,000 tax credit carries the name "first-time home buyer," eligibility extends to anyone who hasn't owned a principal residence during the last three years. The credit amount from the IRS is the lesser of 10% of the purchase price of the dwelling or $8,000.

Donovan's announcement came as a small but growing number of states have begun bridge loan programs on their own to help stimulate home purchases. California has even created its own state-funded tax credit program -- a 10% credit payable to the buyer over three years -- but has limited it to newly built houses.

Bob Rivinius, president and chief executive of the California Building Industry Assn., said the new FHA credit monetization program "should provide a great combination" with the California credit. Some first-time buyers using FHA loans could even qualify for what he called "a trifecta": They could claim the 10% state credit, file for the $8,000 federal tax credit, then turn the federal credit into instant cash for use on a down payment or for closing costs.

Rivinius said funding for the state tax credit was being depleted fast, but legislation pending in Sacramento would add $200 million -- and that "should allow buyers to receive credits" through the end of the year.

The federal $8,000 credit only covers purchases closed by Nov. 30. Unless Congress extends the credit, it will disappear Dec. 1.

The new bridge loans and cash advance features of the federal credit may not be available immediately through private lenders, mortgage industry leaders say. Among the key questions yet to be answered: Where will non-depository mortgage companies get the $8,000 in advance money to provide upfront to buyers? Although most major banks offer second mortgage programs, the FHA guidelines stipulate that the tax credit advances cannot be secured by a lien on the property but only by the tax credit to be received by the buyer.

Many mortgage companies, which do not have banking deposits to tap, will need a few weeks to prepare documentation for what will essentially be secured personal loans. Plus they'll need to locate a source of funds for their advances.

In the meantime, however, would-be buyers who believe they are eligible for the federal credit shouldn't sit around. They should shift into high gear shopping for a house -- the Cinderella date of Nov. 30 is looming -- even if they'll need a bridge loan or cash advance to complete the deal.

The odds are good that by the time they're ready to get a mortgage and go to closing, at least some local FHA-approved lenders will be actively in the market with bridge loans.

bad news or Not?

rbredahl@gmail.com (Health Insurance Web Quotes) — Fri, 15 Feb 2008 22:24:00 +0000

Recent headlines tell us that new home sales and new home permits have reached almost record lows. Two major builders have consolidated into one and another builders parent company has filed for bankruptcy.
How can this be good news for the resale housing market?
In last months newsletter I had an article that gave the seven things that have to happen for a market recovery. A slow down in housing starts and major players in the new home market pulling out were two important ones,
Real estate prices are controlled by supply and demand just like everything else in our free market.
Resale home sellers could not compete with the oversupply of new homes and the huge price discounts that went with it.
While many factors have contributed to the housing slowdown this is one piece of the puzzle and individuals will soon not have to compete with this artificial surplus.

Paul Pastore's Top 10 Reasons It's a Great Time To Buy:

rbredahl@gmail.com (Health Insurance Web Quotes) — Wed, 23 Jan 2008 17:29:00 +0000

1. Selection, selection, selection.
Regardless of price range, there are plenty of houses from which to choose. There's a great selection of attached homes, condos and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. You have many options. When resale inventories are low, buyers are forced to make compromises. Not today.

2. No bidding wars.
In 2005, we knew one family who made offers on 10 homes. They lost the first nine to the feeding frenzy that existed in the market - other buyers bid the properties up substantially from the original listing prices. There were even escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There's no competitive bidding in the buyer's market of today.

3. You can make an offer.
A few years ago when you made an offer, the only question was how high above the list price you should reach in hopes of being the best offer on the table. Today the sell price vs. list price ratio is about 96 percent. Sellers won't be insulted if you "make them an offer they can't refuse."

4. Patience is tolerated.
In the hot seller's market, everything was rushed. You had to find a house before other buyers did, then hurry up and make the offer. Today, buyers can take their time. They can look at several homes and think about their decision for a while.

5. Due diligence is welcomed.
In this market, a buyer is encouraged to obtain a home inspection, termite inspection and appraisal. In 2005, many buyers waived these contingencies in order to gain an advantage.

6. Plenty of specs.
Buyers sometimes had to play games if they wanted a newly built home. There were lotteries and waiting lists. Some buyers even slept in their cars in order to get to the head of the line.

7. Repair requests are accepted.
After buyers complete a home inspection, they're allowed to submit a repair request to the sellers. But in the past, sellers often insisted the home be sold as-is. Many times, there were back-up buyers waiting for the primary buyers to upset the sellers, whose home was increasing in value almost daily.

8. Few, if any investors.
It's estimated that one third of all sales in 2005 were to investors. These buyers caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.

9. Location, location, location.
Today's buyers can find homes closer to work. In this market, reasonably priced homes are within biking or walking distance to schools, rapid transit lines and relatives.

10. Real financing is available.
The "wink, wink" zero-down, no-doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first-time homeowner bond programs, and special loans for teachers or police officers are back in business. The bottom line: It's a great time to buy real estate!

Copyright © 2008 RE/MAX International Inc. 1/22/08

Sellers list right to avoid price reductions

rbredahl@gmail.com (Health Insurance Web Quotes) — Mon, 31 Dec 2007 14:42:00 +0000

Tips on matching price to market conditions
Monday, December 31, 2007

By Dian Hymer
Inman News

In most areas of the country, 2007 marked a change in the residential home-sale market. Buyers gained clout for the first time in over a decade. Inventories of homes for sale grew to record levels in some places. Price reductions, which carried a negative stigma when listings were easy to sell, came to be seen as a necessary part of the home-sale process.

That is not to say that price reductions are a good thing. They are not. The initial marketing effort is a prime opportunity to attract attention to a new listing.

When the merchandising and pricing are on target, a timely sale occurs. If the opportunity is missed either due to poor planning and preparation, or to a price that's too high for the market, the only hope for success is to lower the price quickly to an acceptable level.

Many sellers balk at the notion of reducing the list price soon after the property is listed. However, the timing of a price reduction is critical. If you wait too long, hoping for the impossible, it could be difficult to kindle enthusiasm for the property.

This is particularly so in an area where there are a lot of new homes coming on the market and where the sales volume is low. This means that the competition from other listings grows as you wait for the unlikely: a knight in shining armor to appear and pay the asking price or more.

HOME SELLER TIP: The best time to make a price reduction is as soon as you discover that your home is priced too high for the market. Waiting too long to lower the price can cost money in the long run if the market is moving lower. Reducing too little, too late can lead to a series of further reductions and ultimately to a lower selling price. Ideally, you should avoid such an unpleasant downward spiral.

The goal is to sell without having to reduce the price. To do this, you must accept current market conditions. You also need to recognize that no matter how wonderful you think your home is a buyer will find fault with it.

To be a successful seller in this market -- and to some extent in any market -- requires separating pride of ownership in the property from the task as hand, which is to sell for the highest price possible. It's not easy for most sellers to put their emotional feelings about their home on ice. It helps to stop thinking of the property as "home" and to start looking at it as a commodity you want to sell.

Before listing a property for sale, sellers should seriously consider their motivation. Successful sellers in today's more difficult marketplaces have a compelling need to sell. They don't simply want to sell if someone will make it worth their while. Many of today's prospective home buyers have a wait-and-see attitude about the market. They are looking, but it will take a fabulous home offered at a great price before they'll commit to buy.

Sellers should also check out the temperature of the local market. Residential real estate is a localized business. Even if you live in a city where prices are down, that might not be the case in your neighborhood. The supply of homes for sale and demand for housing are critical variables, as is the local employment picture.

There is a common theme to the listings that sell well now. These listings look great, are in good condition, don't have incurable defects and are priced right for the market.

THE CLOSING: Being realistic about what to expect is half the battle.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

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Should I postpone selling my home?

rbredahl@gmail.com (Health Insurance Web Quotes) — Sun, 30 Dec 2007 16:33:00 +0000

Timing market depends on where interest rates, inventory stand

According to the media, now is one of the worst times to consider selling a home. However, although the national statistics don't paint a rosy picture, some sellers are finding success in this market. It all depends on what you have to sell -- house or condo, where it's located, what kind of condition it's in, and how well it's priced for the market.

Some sellers wonder if one time of year is better for selling than another. Usually, spring is the season when the highest volume of home sales takes place. The end of summer tends to be slower, while there is often a spurt in the fall after prospective home buyers return from vacation.

However, although there is generally a seasonal pattern to the real estate market, every year is somewhat unique. For instance, last year, the housing market didn't have a noticeable fall pickup in home-sale activity. Whether or not we experience an uptick in activity this fall will depend on interest rates and on the supply/demand balance in your particular neighborhood.

The most notable characteristic of the recent slowdown in the home-sale market has been the increase in the numbers of homes for sale in comparison to recent years when inventories were at record lows in many areas. Although rising inventories of homes for sale is a widespread phenomenon, there are still some markets in the country where listings have not increased significantly. In those areas, the market is likely to be active this fall as long as interest rates remain relatively low.

In areas with a large standing inventory of unsold homes, selling is more challenging. Buyers in these markets feel no urgency to buy. With plenty of homes for sale to choose from, buyers can take their time to find exactly the right place.

A precipitous drop in interest rates could create a catalyst if buyers perceive an opportunity to buy a well-priced home with a low-interest-rate mortgage. Absent an outside stimulus, sellers need to provide an enticing incentive to motivate a buyer to buy in an otherwise lackluster market.

HOME SELLER TIP: Sellers who aren't motivated to sell at market value, whatever that might be, should seriously consider postponing selling. Getting a home in the kind of condition that will maximize your return on the sale takes time and money, particularly if you're competing against new homes that are sitting on the block unsold. Don't waste your time if you're not committed to doing what it takes to get your house sold.

When there's stiff competition, being priced right for the market may mean pricing under the market. A Crocker Highlands (Oakland, Calif.) home in mint condition was listed in July at a below-market price that generated a handful of offers and a quick sale for over the asking price.

Economists forecast a turnaround in the housing market sometime in 2008 or 2009. But, no one knows for sure. The market could slow more before it improves. Or, the inventory for homes in your area could drop as sellers of overpriced listings give up. This would create a better market for sellers who are realistic about current market conditions.

Your agenda may require a timelier sale than next year or the following year. If so, get your home ready to sale. Study the local market carefully. When the for-sale signs disappear in your neighborhood, check with your agent and see if the time is right for you to make a move.

THE CLOSING: Then pick an enticing list price and make your home gleam. The market will take care of the rest.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

New Year's 2008 resolutions for home sellers

rbredahl@gmail.com (Health Insurance Web Quotes) — Wed, 26 Dec 2007 15:01:00 +0000

Be sure your approach is in line with your market
Wednesday, December 26, 2007

By Ilyce R. Glink
Inman News

A year ago, the average price of a home had dropped by 3.5 percent nationwide. As we end 2007, the average price of homes has dipped again – a small amount in some markets and by more in others.

But the next year (and perhaps the year after that) will be a sellers market that's made for those with strong stomachs. While the National Association of Realtors claims that the housing market is stabilizing, other economists are calling for a turnaround in 2009, 2010 or even 2014.

If you want to sell and move, that's not the kind of news you want to hear. But given that 2008 is a presidential election year, and real estate normally slows during an election cycle, a real estate recovery in 2009 seems plausible.

That doesn't mean folks won't be buying. If you're going to sell next year, the key to a successful closing will be planning.

To get you going, here is my annual list of home seller resolutions you might want to keep. As a home seller, I resolve to:

Overcome any possible objections a buyer would have.
Sellers don't often understand that their primary job is not only to eliminate any potential objections that would stand in the way for a buyer to make an offer, but to exceed their expectations as well. If your home is competitively priced, and your home's condition exceeds a buyer's expectations, you'll get the offer you want.

Get my home into shape before I let anyone see it.
Getting a home into "selling shape" is quite different from even having a clean, beautiful home. You need to "stage" your home, which means you have to make it look exactly the way a buyer thinks it should look.

For best results, stage the home before you invite any real estate agents or brokers in to assess how much it is worth. The agents you interview will be your "Wow!" test. If they walk into your home and say "Wow! What a great place you have here," you know you've done it right.

How do you stage a home? Start by throwing away, giving away, or packing away anything you haven't used in the last three to five years. You should also give your home a thorough cleaning and address any small fixer-upper projects you've been putting off.

Once your home is clean, you can assess what kind of other work needs to be done. Should you give your home's interior and exterior a fresh coat of white paint? Do you need to power wash your vinyl siding? Should the windows be washed? The wood floor polished? New wallpaper put up in the guest bathroom? Does your landscaping require a visit or two by a professional landscaper? Whatever you decide to do, make sure it's completely finished before you invite anyone over to see your home.

Finally, move out excess furniture, buy matching towel sets for the bathroom, and make sure you have a new cover with matching pillows for your bedrooms. Your home should look very put together, as if you were auditioning for the cover of a home decorating magazine.

Invite at least three agents to create a comparative marketing analysis.
Often, sellers simply call the agent who sold them their home to list it. While you may end up with that person, you'll be doing yourself a favor if you invite a couple of other agents in from different firms.

Why? Because each agent will have a different marketing plan and idea about how much your home is worth. If you invite three agents to prepare a comparative marketing analysis (a CMA is a sales tool that analyzes homes similar to yours that have recently sold, presents a marketing plan and suggested list price), one will bring in a high price, one a low price, and one somewhere in between. Each may have a slightly different idea about how to market your home, or give you ideas that you can share with the agent you finally choose.

If you don't like any of the three agents you've invited to your home, get some referrals and invite additional agents to prepare a CMA. One good way to get agent referrals is to ask the agents you invited to do a CMA who they think is the best agent in town (other than themselves, of course).

Know what my selling timetable is before I list my home.
Do you want to sell or do you need to sell? If you need to be out in three months or less, you'll need an aggressive agent with a very competitive list price. If you've got six months or a year in which to sell, you may choose to price your home a little higher, or may choose a different type of agent. Knowing when you have to move – and sharing that crucial bit of information with your agent – allows you to choose a correct pricing and marketing strategy.

Be realistic about the market.
After a half-dozen years of a super-hot seller's market, the tables have turned in many markets. Expensive homes are selling more slowly than homes priced for first-time buyers. (Although homes priced at $10 million and above seem to be selling at the same pace as always.)

Accept the reality of your local market and make sure you price your home realistically. Don't blame your broker if you don't get three offers over your list price within 24 hours of putting your home on the market. Sellers who set sky-high prices could wait months for an offer and may wind up with the same price they would have had if they'd priced their home correctly the first time – or a lot less.

Know where I'm going.
Once you've decided to sell, you ought to think about where you want to go. Often, people move to another home within the same general neighborhood. But if you're moving to a different city, state or part of the country, you'll need to do your homework ahead of time. Start researching neighborhoods that offer the amenities you're interested in. Don't wait until you have a contract on your home. That's the time you should be seriously looking to put in an offer on your new home, not start the process of exploring neighborhoods.

Or, if you're not sure what you want to do, consider renting on a short-term or month-to-month lease. These days, landlords are hurting and they may be perfectly happy to accept a 6-month lease.

Read all documents thoroughly before I sign them.
Why would someone sign a legal document he or she hasn't read? I'm not sure, but home sellers do it every day. If you're going to sell (or buy) in the coming year, promise yourself that you'll take the time to read and understand the listing contract, offer to purchase, and loan documents for your next purchase. (If you're taking back a loan for the home buyer, have an attorney prepare the documents so you are sure to be protected.) Unless you've got cash to spare, a mistake in these documents and the warranties they contain, could seriously affect your finances.

Set my minimum sales price.
Everyone wants to get their list price. But unless you're in a strong seller's market (where there aren't enough homes to meet the demand), it's unlikely you'll get it. That means you'll probably get an opening offer that's somewhat below your list price.

In order to negotiate effectively, it helps to determine the minimum amount you'll be happy accepting for your home – before you put your property on the market. This is a price that will allow you to walk away happy. If you receive an offer with anything above this price, it's like gravy. If it's below the minimum price you've set, you can negotiate accordingly.

The psychological benefit of a minimum acceptable price is great: It puts you in control of an emotional situation by helping you distance yourself emotionally from the negotiation process.

Not be driven by greed.
One big mistake many sellers make is to get a little greedy, particularly if the first offer is above the minimum acceptable price you've set. Then, the negotiation becomes a game of how much you can get.

Remember, a successful sale means everyone walks away feeling happy. If you get so greedy that the buyer walks away, you've let the deal get the best of you. Resolve to be reasonable and you'll end up shaking hands with the buyer at the closing.

To get even more valuable advice from Ilyce, visit her Personal Finance and Real Estate Center.

***