Rather than a complete remodel, here
are some ideas for refreshing your units’
bathrooms between tenants:

Eco-friendly buildings not only attract a
growing subset of residents. If you’re
renovating, consider adding more insulation;
replacing drafty windows and doors; and
upgrading aging appliances, including
swapping out your rusty hot water heater for a
tankless model.

You can easily cut down on a property’s energy
usage with the help of low-flow faucets and
showerheads; smart thermostats; and LED
lighting.

According to Remodeling Magazine, the ROI of
a major kitchen remodel pales in comparison
to a minor upgrade. A major kitchen
remodel costing about $60K returns 65% of
a homeowner’s investment; while a $120K
remodel returns just 62%. In contrast, a minor
kitchen remodel (costing an average of $20K)
has an ROI of 80%.

Here are some ideas for improving a kitchen’s
appearance and functionality—without gutting
the entire room:

Hardwood floors are highly appealing to
prospective renters. A Buildium survey found
that 1 in 3 residents would pay higher rent for
a unit with hardwood floors. In addition, wood
floors hold up better under years of dirty feet,
pets’ accidents, and kids’ messes than carpet
does.

Consider buying click-lock wood flooring in
bulk if you can get a discount—it’s so easy to
install that a non-professional can do an entire
room in just a day or two. Best of all, hardwood
floors are believed to recoup up to 100% of
their cost.

New appliances don’t just lower your utility
bills—they can also help you to attract new
residents and keep your current ones happy.
Older refrigerators, ovens, dishwashers, water
heaters, HVAC systems, and other appliances
use significantly more water and electricity
than newer models.  Next time there’s a sale on
appliances at a local store, you might want
to consider replacing the oldest and most
problematic appliance in each unit.

*content from https://www.buildium.com*

But there is one sort of home seller I can’t really help: The seller who’s not really ready to sell.

If you’re thinking about selling your home, don’t enter into the process lightly. It’s a big deal. There’s some stress and there’s a great opportunity for joy. There’s a big investment at stake. This, along with a lot of other reasons large and small, is why you want to be 100% sure you’re ready to sell your home. If you think you’re ready to sell, but it turns out you’re not, you waste a lot of time and energy (and sometimes money).

So how do you know if you’re really ready to sell your home?

1. You’re fine with the process. You must have no problem with the idea of a stranger poking around your house, talking about renovating it, or treating it like a used car. If you’ve lived in your house a long time, it’s natural to have emotional attachments. So if the process of selling the house makes you feel protective or defensive, you may not be ready.

2. You are flexible on the right price. Motivated sellers understand selling a home involves negotiation and competitive market pricing. If you have a number “you must get” in order to sell, then you might want to think again. Also, if all of the agents who price your home come back too low for your standards, take a breather and ask yourself if it’s go time or not.

3. You know where you’re going next. Prepared sellers have plans, even if those plans aren’t 100% firm. They’re anticipating the move and they are probably even shopping for houses, if only casually at the moment. If you can’t clearly answer the question, “Where would you like to live after you sell?” then you’re not quite there yet.

If you’re iffy on any of these, take a step back and consider how you feel. While some markets favor sellers more than others, a home can sell in any market for the right price. Don’t jump into something before you’re ready.

However, when you’re ready, I’d be happy to help. Give me a call when the time is right:

Becca Linnig

(480) 570-8845

bhotaz@hotmail.com

http://www.howziz.com

In 2007, the law governing HOAs was changed so that they may not prohibit the indoor or outdoor display of a for sale sign by a condominium unit owner or single family homeowner on their own property. In 2010 the Arizona Association of REALTORS® fought for and successfully modified statute to prevent an HOA from prohibiting or regulating temporary open house signs, a unit owner’s or owner’s agent’s for sale or lease sign and open house hours for property that is available for sale or lease.

It was recently brought to AAR’s attention that some HOAs are attempting an illegal requirement that in order to use signs in certain condominium and planned communities by unscrupulously charging a fee for the use or placement of the indoor or outdoor signs. Some examples of such practice include HOAs that prohibit the use of sign installation from any other company than their “preferred vendor” which can cost upwards of $75 for the installation.

As a result of the continued efforts by HOAs to skirt current law as well as their continued creativity in finding ways to charge fees to homeowners as it pertains to for rent and sale signs, AAR has asked two Representatives to run language that would strengthen current law and penalize those associations that violate the law. HB 2609 (homeowners’ associations; signs; political; leasing) sponsored by Representative Barton passed out of the House last week with a vote of 36 ayes, 21 nays and 3 no votes. The bill has been transmitted to the Senate and assigned to the Senate Government Reform Committee. The other is HB 2717 (homeowners’ associations; penalties; attorney fees) sponsored by Representative Carter. This bill was amended on the House floor on last Thursday to add language pertaining to this issue.

The language in both bills would do the following:

·Prohibit an HOA from charging a fee for the use or placement of the indoor or outdoor display of for rent, sale or lease signs and sign riders, in any combination, displayed by a property owner on their property.

·States that an HOA or managing agent that violates specific statutes governing the use of indoor or outdoor signs by a property owner on their property forfeits and extinguishes the lien rights authorized by statue against that unit or property for a period of six consecutive months from the date of the violation.

“In the face of the deepest economic recession and housing crisis in decades, the Obama Administration has taken unprecedented action to promote stability in the market—keeping millions of families in their homes and helping millions more to save money by refinancing. But the data clearly show that the market remains extremely fragile,” said HUD Assistant Secretary Raphael Bostic. “While we cannot stop every foreclosure, we know that many responsible homeowners are still fighting to make ends meet. Through the broad range of programs this Administration has put in place, we can put help in reach to those homeowners as early as possible.”

“Our housing market remains fragile. We know this from the data, but homeowners across the country can feel it too. That’s why this Administration remains committed to helping eligible homeowners avoid foreclosure where it makes economic sense to do so,” said acting Assistant Secretary for Financial Stability Tim Massad. “Every month, HAMP continues to help tens of thousands of additional families in a cost-effective manner. And by setting affordability standards and developing a framework for how mortgage servicers provide assistance to struggling families, HAMP has established critical protections for homeowners and has catalyzed improvements in modifications industry-wide.”

The February Housing Scorecard features key data on the health of the housing market including:

-The housing market remains fragile as data through January 2011 paint a mixed picture of recovery. Existing home sales ticked upward in January, but remained below levels seen in the first half of 2010. Mortgage delinquencies continued a downward trend compared to early 2010 and foreclosure starts and completions remain below peak. However, as lenders review internal procedures related to foreclosure processing, many foreclosure actions have been delayed. The decline is likely to be temporary as lenders eventually revise and resubmit foreclosure paperwork in the coming months.

-Administration efforts have been effective in blunting the effects of the deepest economic crisis since the Great Depression. Since April 2009, record low mortgage rates have helped more than 9.5 million homeowners to refinance, resulting in $18.1 billion in total borrower savings. However, home prices remain unsettled at this fragile stage of the recovery. More than 4.2 million modification arrangements were started between April 2009 and the end of January 2011—including nearly 1.5 million HAMP trial modification starts, more than 730,000 FHA loss mitigation and early delinquency interventions and more than two million proprietary modifications under HOPE Now. While some homeowners may have received help from more than one program, the number of agreements offered was more than double the number of foreclosure completions for the same period (1.8 million).

Given the current fragility and recognizing that recovery will take place over time, the Administration remains committed to its efforts to prevent avoidable foreclosures and stabilize the housing market.

For more information, visit www.hud.gov.

·         Capital Gain and Dividend Rates – Current rates were extended for two-years for all taxpayers with a maximum rate of 15% for both.

·         Personal Tax Rates – Current rates were extended for two-years for all taxpayers with the top rate remaining at 35%.

·         Social Security Tax – The employee tax rate of 6.2% on the first $106,800 of wages drops to 4.2% in 2011.

·         Alternative Minimum Tax – Current exemptions were extended for all taxpayers for two-years.

·         Estate Tax – An exclusion amount of $5 million and a tax rate of 35% for amounts in excess of the exclusion was established for two-years; the exclusion will become indexed beginning in 2012.

·         Gift Tax – Like the Estate Tax, a Gift Tax exclusion amount of $5 million and a tax rate of 35% for amounts in excess of the exclusion was established for two-years, with the exclusion being indexed beginning in 2012.

·         Other Extensions – The $1000 child credit; an additional standard deduction for real-estate taxes; extension of 15-year cost recovery for certain leasehold improvements, restaurant buildings and qualified retail improvements (through 2011); and the extension of various energy credits (through 2011).

Although the legislation provides some certainty for two years, we may find ourselves questioning our future rates again in 2012.  Since that is also an election year, it may be interesting! 

Please see attached letter from Commissioner Stevens regarding his intention to decrease the UFMIP from 2.25% to 1.0% and increase the monthly Mortgage Insurance from 0.55% to between .80%-.90% annually.

The net-affect to a borrower who is requesting maximum financing from FHA is an increase in their monthly payment of approximately $22 per $100,000 borrowed at today’s interest rates.

On April 14, 2010, Fannie Mae made changes to the timeframes required after a “PRE-Foreclosure Event” before someone could obtain new Fannie Mae financing.  They have stated that since there are a variety of foreclosure alternatives available to borrowers who are having difficulty making their mortgage payments that the changes would highlight the importance of borrowers working with their servicers to avoid foreclosure.  As a follow-up to that Announcement, yesterday Fannie Mae modified the waiting period that must elapse before a borrower is eligible for a new mortgage loan after a “foreclosure.” The combination of the waiting period policies for foreclosures and preforeclosure events continue to favor borrowers who work with their servicers to avoid foreclosure by allowing these borrowers to be eligible for a future Fannie Mae loan in a shorter period of time.

Under the new guidance, unless  the foreclosure was the result of documented extenuating circumstances*, which only requires a three-year waiting period (with additional requirements of minimum of 10% down, primary residence purchase or rate/term refinance for all occupancy types), ALL borrowers will now be required to meet a seven-year waiting period after a prior foreclosure to be eligible for a new mortgage loan eligible for sale to Fannie Mae.

* Fannie Mae Definition of Extenuation Circumstances: These are nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.  If a borrower claims that derogatory information is the result of extenuating circumstances, the lender must substantiate the borrower’s claim. Examples of documentation that can be used to support extenuating circumstances include documents that confirm the event (such as a copy of a divorce decree, medical reports or bills, notice of job layoff, job severance papers, etc.) and documents that illustrate factors that contributed to the borrower’s inability to resolve the problems that resulted from the event (such as a copy of insurance papers or claim settlements, property listing agreements, lease agreements, tax returns (covering the periods prior to, during, and after a loss of employment), etc.).  The lender must obtain a letter from the borrower explaining the relevance of the documentation. The letter must support the claims of extenuating circumstances, confirm the nature of the event that led to the bankruptcy or foreclosure-related action, and illustrate the borrower had no reasonable options other than to default on their financial obligations.