Just like a top football, basketball or hockey player is drafted based on their stats, your credit score is used to determine your financial fitness.
Your credit score is the best way to define your ability to handle debt. It's based on several aspects of your financial picture and can help creditors determine if you're responsible with your money.
Improving your credit is one of the easiest ways to improve your overall financial scorecard. Doing so may help you get approved for loans and lower your interest rates and insurance premiums.
The following steps can help you improve your credit score:
Pay on time. Payment history is one of the most important factors used to calculate your credit score, so consistently paying on time is one of the easiest ways to boost your score. To help you pay on time, consider enrolling in an e-bill pay program that will make payments automatically on your behalf and guarantee they arrive on time.
Reduce debt-to-credit ratio. Focus on paying down the amount you owe on your credit cards so each one has an available credit of at least 50 percent. Doing so improves your debt-to-credit ratio and in turn will improve your credit score.
Use more than one type of credit. Your score is built around both revolving (ex. credit card) and installment (ex. mortgage loan) credit. Having both types in your credit history shows you can responsibly handle multiple kinds of credit, and in turn may improve your score.
Stick with the accounts you have. Opening new accounts means new inquiries on your credit report, which may lower your score. On the other hand, avoid closing accounts you already have, even if you don't use them that often. Doing so can negatively impact your debt-to-credit ratio and credit history – both of which are used to calculate your score.
Source: BMO Harris Bank
Friday, September 14, 2012
Wednesday, August 29, 2012
Helping Sellers Maximize their Profit Potential
For most people their home is their largest investment. It is most likely going to bring the greatest return on investment and it is perhaps the only investment that allows you to enjoy it while it increases in value. Therefore, homeowners should put a lot of thought and consideration into the eventual possibility of selling the home. After all, we all sell at some point, right?
Your sellers may be thinking of selling in a month, six months or six years, but the process is the same and the main objective is to get the maximum return on the investment. This translates to faster, higher commissions for you.
Staging has become an important factor in home sales. However we take a different approach to traditional staging. We actually don’t even like to use the word “staging.” Staging implies false or façade, which most savvy buyers can see through.
We like to call it detailing the home, or creating a lifestyle that buyers want, presenting the home as a “hot commodity.”
We do this by helping homeowners make decisions that will not only improve the way they live in their homes, but ultimately increase its value. Keeping a home updated and organized throughout the years will help to give the home the curiosity factor that makes people interested in seeing more.
As we all know, good curb appeal and updated kitchens and bathrooms help sell a home. They don’t need to be high-end or luxurious. Just updated, clean and well designed is enough. The investment made in these updates will definitely translate into cash at closing and could be the difference between a fast and profitable sale, versus a listing that languishes on the market.
Investing in preparing a home for sale can be a tough nut to swallow for homeowners in this challenging market, but they can’t really afford not to. Frequently, we hear that a homeowner did not know that the cost of preparing a home for sale—including the cost of professional staging—is often tax deductible.
In addition, it can often be charged on a credit card and paid off slowly or once the home sells. This minimizes the out of pocket costs for the homeowner and gives them the confidence that they have increased their profit potential.
We have found that the magic formula for selling high in the current market is what we refer to as the “selling trifecta.” A fair market price, excellent marketing and a well prepared “staged or detailed” home is the winning combination.
Help your homeowners sell high and fast by providing them with the tools they need to be market ready, and you too will reap the benefits when you hit the closing table.
Our top 5 ways to boost your sales appeal:
1. Curb Appeal - People do judge a book by its cover, so the outside of the home becomes as important as the inside. Seasonal color, a well manicured lawn and landscape, and a freshly painted front door all add value and interest to the home.
2. First Impressions - Make the entryway of the home inviting. Add a mirror. Buyers really do like to literally "see" themselves in a home they are interested in. Remove all personal items such as coats, shoes, sports equipment, etc. This will give buyers the impression that the home offers plenty of storage solutions. Adding flowers or natural elements will also add a welcoming touch. Don't forget to attract a buyer’s sense of smell. Consider air fresheners that are subtle with a natural scent like cinnamon or vanilla. Stay clear of florals. These small tricks will give buyers a positive first impression and make them interested in seeing more.
3. Kitchens sell homes - A well designed updated kitchen will pay for itself and then some. Changing out cabinet hardware is an inexpensive way to change the look of the kitchen. An interested buyer will open up drawers, cabinets and closets so remove anything unnecessary and give the illusion of a clutter-free lifestyle. Also, keep the counter tops clear of clutter and most appliances.
4. Bathrooms - In most cases, today's buyers are looking for homes that they can move into and live. They may have long term goals of renovations and updates, but they want to feel good about the investment that are making. Keeping the fixtures updated is essential to giving a bathroom that “move-in ready” feel. Again, by reducing the clutter and personal items, buyers will see the potential.
5. Furniture placement and flow - Edit down furniture and accessories to help buyers envision their things in the home. There does not need to be something on every wall or every corner. Leave passageways and hallways opened enough to allow two people to pass. It may look bare to the homeowner, but will look fresh and organized to a buyer.
Also, always keep paint colors neutral and current. Paint is an inexpensive way to freshen up a space and neutral colors always give a good first impression.
For more information and staging tools, visit www.centerstagedesignsct.com. Article written by: Cyndi Sadowsky Berardi
Friday, May 25, 2012
5 steps to picking the right agent to sell your home!
If you're selling a home, a good real-estate agent will help you set the right price, market the home professionally, qualify the buyers and expertly negotiate and finalize the deal.
A great agent has long experience with recent sales and can walk a tightrope, balancing optimism with realism and diplomacy with brutal honesty. You'll pay big bucks for an agent's service — an average of 5.3% of the sale price in 2011, according to Real Trends, a real-estate consulting company. So you owe it to yourself to interview more than one agent.
1. Round up good prospects
To identify prospective agents, you can ask for referrals from neighbors or friends or use the search tools on the websites of the National Association of Realtors or the Council of Residential Specialists.
Try to limit your search to agents with credentials that match your needs. For example, on the CRS website, you can search for agents who specialize in the sale of single-family houses, condos and luxury or resort homes, as well as short sales (selling a home for less than the owner owes on a mortgage) and assisting seniors.
Leigh Brown, an agent with Re/Max in Charlotte, N.C., says you want someone who is on his game. Although many half-hearted agents left the business after the housing bust, she says some of those who remain live under a black cloud, having lost a lot of income and confidence. Not only will you feel that lack of passion, but it may alienate prospective buyers. You want someone who will work assertively on your behalf but won't come on too aggressively, like a used-car salesman. That will turn off the buyers' agents, too.
2. Ask tough questions
You want an agent who is "intimately and passionately" familiar with your neighborhood, says agent Cotty Lowry of Keller Williams in Minneapolis. But, Lowry says, the agent with a lot of signs in your neighborhood may not be your best choice, either. "If a prospective agent has little constructive input about price and condition for you, be curious: Do they want to help you sell your house or do they just want to put a sign in your yard to bring in buyers?" he says.
Each agent you interview should offer a comparative market analysis (a comparison of recent and pending sales of homes similar to yours) and know enough about the neighborhood and recent sales to explain why you should list your home for more or less than the neighbor down the street who sold last season. Don't fall for the agent who glibly promises the quickest sale for the highest price.
3. Find out who the agent is working for
Most states require agents to disclose their "agency" relationships to you early on. But you'll benefit if you ask prospective agents whose financial interest they will serve throughout the sales process — and hire an agent who will serve as your agent only. If an agent insists on dual agency (meaning that the agent lists your home for sale but may also bring in the buyer, thus pocketing the entire commission instead of splitting it with the buyer's agent) or designated agency (your agent and the buyer's agent work for the same brokerage firm), feel free to negotiate the commission down by a point or two.
A lot of money is at stake. And the situation is an inherent conflict of interest, Brown says, because "the buyer wants the lowest price and the seller wants the highest price." She points out that an agent in that boat could "browbeat" sellers into taking a deal that's not best for them, or the agent may fail to present multiple offers equally to protect a buyer client.
4. Make sure your agent has backup
Lowry says that it's important for an agent to have at least one assistant; many agents have a team of specialists to help them. Advertising a home is "not just the Sunday paper anymore," he says. "All the various outlets — many online — require feeding and nurturing, collecting quantifiable analytics and forwarding the info to sellers." At the same time, you don't want to communicate through the assistants all the time; you want an agent with whom you can talk directly. To quell your inevitable anxiety, find out how frequently you'll receive updates from the agent.
5. Sign the right contract
Ask each agent how long the listing contract would last. The slower the market, the longer the contract an agent is likely to demand. However, three to six months is typical. For slower-selling high-end homes (say, those over $1 million), agents may want a year, says Francie House, an agent with Windermere in Seattle. Agents don't want to risk losing the listing after they've spent a few thousand dollars on marketing and staging.
Information reposted from LinkedIN - Courtesy of Pat Mertz Esswein of Kiplingers. Retrieved on May 25 2012 from this LINK.
A great agent has long experience with recent sales and can walk a tightrope, balancing optimism with realism and diplomacy with brutal honesty. You'll pay big bucks for an agent's service — an average of 5.3% of the sale price in 2011, according to Real Trends, a real-estate consulting company. So you owe it to yourself to interview more than one agent.
1. Round up good prospects
To identify prospective agents, you can ask for referrals from neighbors or friends or use the search tools on the websites of the National Association of Realtors or the Council of Residential Specialists.
Try to limit your search to agents with credentials that match your needs. For example, on the CRS website, you can search for agents who specialize in the sale of single-family houses, condos and luxury or resort homes, as well as short sales (selling a home for less than the owner owes on a mortgage) and assisting seniors.
Leigh Brown, an agent with Re/Max in Charlotte, N.C., says you want someone who is on his game. Although many half-hearted agents left the business after the housing bust, she says some of those who remain live under a black cloud, having lost a lot of income and confidence. Not only will you feel that lack of passion, but it may alienate prospective buyers. You want someone who will work assertively on your behalf but won't come on too aggressively, like a used-car salesman. That will turn off the buyers' agents, too.
2. Ask tough questions
You want an agent who is "intimately and passionately" familiar with your neighborhood, says agent Cotty Lowry of Keller Williams in Minneapolis. But, Lowry says, the agent with a lot of signs in your neighborhood may not be your best choice, either. "If a prospective agent has little constructive input about price and condition for you, be curious: Do they want to help you sell your house or do they just want to put a sign in your yard to bring in buyers?" he says.
Each agent you interview should offer a comparative market analysis (a comparison of recent and pending sales of homes similar to yours) and know enough about the neighborhood and recent sales to explain why you should list your home for more or less than the neighbor down the street who sold last season. Don't fall for the agent who glibly promises the quickest sale for the highest price.
3. Find out who the agent is working for
Most states require agents to disclose their "agency" relationships to you early on. But you'll benefit if you ask prospective agents whose financial interest they will serve throughout the sales process — and hire an agent who will serve as your agent only. If an agent insists on dual agency (meaning that the agent lists your home for sale but may also bring in the buyer, thus pocketing the entire commission instead of splitting it with the buyer's agent) or designated agency (your agent and the buyer's agent work for the same brokerage firm), feel free to negotiate the commission down by a point or two.
A lot of money is at stake. And the situation is an inherent conflict of interest, Brown says, because "the buyer wants the lowest price and the seller wants the highest price." She points out that an agent in that boat could "browbeat" sellers into taking a deal that's not best for them, or the agent may fail to present multiple offers equally to protect a buyer client.
4. Make sure your agent has backup
Lowry says that it's important for an agent to have at least one assistant; many agents have a team of specialists to help them. Advertising a home is "not just the Sunday paper anymore," he says. "All the various outlets — many online — require feeding and nurturing, collecting quantifiable analytics and forwarding the info to sellers." At the same time, you don't want to communicate through the assistants all the time; you want an agent with whom you can talk directly. To quell your inevitable anxiety, find out how frequently you'll receive updates from the agent.
5. Sign the right contract
Ask each agent how long the listing contract would last. The slower the market, the longer the contract an agent is likely to demand. However, three to six months is typical. For slower-selling high-end homes (say, those over $1 million), agents may want a year, says Francie House, an agent with Windermere in Seattle. Agents don't want to risk losing the listing after they've spent a few thousand dollars on marketing and staging.
Information reposted from LinkedIN - Courtesy of Pat Mertz Esswein of Kiplingers. Retrieved on May 25 2012 from this LINK.
Tuesday, May 15, 2012
Realty Times - Five Musts Before You List Your Home
Deciding to list your home for sale is a momentous time. It means you will be moving on to a new stage of life, no matter if you’re moving up or sizing down. Take a moment to look over these tips for what every seller should do before they put their home on the market.
Organize Your Paperwork: Every homeowner should have a detailed list of all past repairs, updates, and upgrades they’ve made. This will help your agent know what should be mentioned on the MLS. Did you put on a new roof in 2010 or a install a new water heater in 2009? These are great selling features because they mean less work in the future for the prospective buyer.
Also included in this list should be any home warranty information. These warranties will most likely transfer with title of the home.
Get Ready to Declutter: Even before you’ve officially listed your home for sale, you should start getting rid of things you don’t need. Starting now will mean a more thorough and less rushed job of clearing things out.
Start with one closet and work your way through the entire home. Sort items to toss, keep, sell, and donate.
Having a yard sale is a wonderful way of making a little extra pocket change while reducing the amount of things you’ll have in your home during showings and that you’ll need to pack up and move. It’s a win-win!
Clean, Clean, and Clean Some More: Dirty homes are a real buyer turnoff. Now is a great time wash down walls, spruce up paint, and give your entire home a thorough cleaning. Do your carpets need refreshing? Consider renting a carpet shampoo machine or hiring a professional carpet cleaning company to come in and revamp your carpets.
Chances are buyers will ask for this anyway come closing time. You’ll beat them to the punch and have a shiny, sparkling home to show for it.
Get an Inspection: Did you think inspections were only for buyers? Having a pre-sale inspection can mean identifying problem areas. Perhaps you’re unaware that your foundation needs repaired. This will severely affect your listing price. It’s best to be prepared and realistic in today’s market.
Make Repairs or Get Estimates: Your inspection will likely leave you with a list of repairs, large and small, that need made. Keep in mind that prospective buyers will also get an inspection of your home and will find these same issues. Head them off at the pass and do some fixing up. You may wish to go ahead with large repairs. If not, be sure to at least get estimates so you are fully prepared for negotiations (you’ll know what the real cost should be) or so you can provide the estimates for buyers.
Start Staging: Staging is like prepping your home for its first date. You want to have it clean and well-dressed. This means amping up curb appeal with neat landscaping, fresh paint, and flowers. It means rearranging furniture and removing clutter.
Congratulations on deciding to list your home for sale. Be proactive about making a good first step by following these tried and true tips.
Published: May 10, 2012 By Carla Hill (Carla Hill, M.A., works on the Realty Times staff as Managing Editor for our online publication. She also is Producer for the real estate news channel, seen daily on RealtyTimes.com and on video newsletters nationwide. Retrieved from this website - click here!
Organize Your Paperwork: Every homeowner should have a detailed list of all past repairs, updates, and upgrades they’ve made. This will help your agent know what should be mentioned on the MLS. Did you put on a new roof in 2010 or a install a new water heater in 2009? These are great selling features because they mean less work in the future for the prospective buyer.
Also included in this list should be any home warranty information. These warranties will most likely transfer with title of the home.
Get Ready to Declutter: Even before you’ve officially listed your home for sale, you should start getting rid of things you don’t need. Starting now will mean a more thorough and less rushed job of clearing things out.
Start with one closet and work your way through the entire home. Sort items to toss, keep, sell, and donate.
Having a yard sale is a wonderful way of making a little extra pocket change while reducing the amount of things you’ll have in your home during showings and that you’ll need to pack up and move. It’s a win-win!
Clean, Clean, and Clean Some More: Dirty homes are a real buyer turnoff. Now is a great time wash down walls, spruce up paint, and give your entire home a thorough cleaning. Do your carpets need refreshing? Consider renting a carpet shampoo machine or hiring a professional carpet cleaning company to come in and revamp your carpets.
Chances are buyers will ask for this anyway come closing time. You’ll beat them to the punch and have a shiny, sparkling home to show for it.
Get an Inspection: Did you think inspections were only for buyers? Having a pre-sale inspection can mean identifying problem areas. Perhaps you’re unaware that your foundation needs repaired. This will severely affect your listing price. It’s best to be prepared and realistic in today’s market.
Make Repairs or Get Estimates: Your inspection will likely leave you with a list of repairs, large and small, that need made. Keep in mind that prospective buyers will also get an inspection of your home and will find these same issues. Head them off at the pass and do some fixing up. You may wish to go ahead with large repairs. If not, be sure to at least get estimates so you are fully prepared for negotiations (you’ll know what the real cost should be) or so you can provide the estimates for buyers.
Start Staging: Staging is like prepping your home for its first date. You want to have it clean and well-dressed. This means amping up curb appeal with neat landscaping, fresh paint, and flowers. It means rearranging furniture and removing clutter.
Congratulations on deciding to list your home for sale. Be proactive about making a good first step by following these tried and true tips.
Published: May 10, 2012 By Carla Hill (Carla Hill, M.A., works on the Realty Times staff as Managing Editor for our online publication. She also is Producer for the real estate news channel, seen daily on RealtyTimes.com and on video newsletters nationwide. Retrieved from this website - click here!
Friday, May 11, 2012
Bernanke: Mortgages Still too Difficult to Get
Even creditworthy borrowers are finding it difficult to get a mortgage nowadays and it’s unlikely banks will ease their standards anytime soon, Federal Reserve Chairman Ben Bernanke told a banking conference in Chicago Thursday.
While banks have made huge strides in improving their balance sheets and overall lending (such as for credit cards and auto loans), banks continue to be extra cautious when it comes to issuing new mortgages, he said. Even borrowers coming with a 20 percent down payment on a home purchase may face hurdles unless they have stellar credit, he said.
"A return to pre-crisis lending standards wouldn't be appropriate," Bernanke said in referencing how banks prior to the housing crisis were issuing mortgages with little or no documentation for jobs or incomes. "However, current standards may be limiting or preventing lending to many creditworthy borrowers."
The challenges of getting a mortgage have been cited by real estate professionals and economists as one of the biggest obstacles standing in the way of a full housing recovery.
An estimated 10 to 20 percent of creditworthy home buyers are being locked out of the housing market because of tightened credit conditions, U.S. Housing Secretary Shaun Donovan told Reuters.
REPOSTED from Daily Real Estate News on May 11, 2012 from this link: Click Here
Source: “Credit Easing in U.S., Fed Chairman Says,” The New York Times (May 10, 2012) and “Bernanke: Even Worthy Borrowers Can’t get Mortgages,” Reuters News (May 10, 2012)
Friday, April 27, 2012
Real Estate Outlook = High Affordability
Real Estate Outlook: Affordability High
Housing affordability is still at a record high, according to the National Association of Realtors (NAR). It is at the highest level since record keeping began in 1970. This is based on the relationship between median home price, median family income and average mortgage interest rate.
NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said this latest data underscores buyer opportunities in today’s market. "This is the first time the housing affordability index has broken the two hundred mark, meaning the typical family has roughly double the income needed to purchase a median-priced home," he said. "For buyers who can qualify for a mortgage, now is a very good time to become a homeowner."
Projections for the remainder of 2012 indicate that this affordability high will continue and rates will remain low. "Housing inventory levels have declined to a point where conditions are becoming much more balanced in much of the country," Veissi said. "If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices with modest gains in areas with stronger job growth."
Despite these incredible buyer opportunities, builder confidence is down. The National Association of Home Builders (NAHB) reports that builder confidence for newly built, single-family homes declined for the first time in seven months.
"What we’re seeing is essentially a pause in what had been a fairly rapid build-up in builder confidence that started last September," said NAHB Chief Economist David Crowe. "This is partly because interest expressed by buyers in the past few months has yet to translate into expected sales activity, but is also reflective of the ongoing challenges that are slowing the housing recovery - particularly tight credit conditions for builders and buyers, competition from foreclosures and problems with obtaining accurate appraisals."
This has been an ongoing concern for many market activists. While housing affordability is at an all-time high, gaining access to credit is a tough road for many would-be buyers. Additionally, some would-be buyers are still wary of the market and are waiting on the sidelines for the economy to improve or market conditions to stabilize.
Regionally, results varied. The Northeast was the only region to see a gain in builder confidence, posting a 4 point gain on the HMI scale. The West remained unchanged, but both the West and South posted declines. Single-family home production held steady for the month. The multi-family sector saw a double digit decline, according to the U.S. Commerce Department.
Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, FL, reported, "While more consumers appear to be seriously considering a new-home purchase, builders remain very cautious about starting new projects until they see more actual sales materializing.
Reposted from Carla Hill - Realty Times - via Linked IN - via Realty Times
Published: April 23, 2012
Housing affordability is still at a record high, according to the National Association of Realtors (NAR). It is at the highest level since record keeping began in 1970. This is based on the relationship between median home price, median family income and average mortgage interest rate.
NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said this latest data underscores buyer opportunities in today’s market. "This is the first time the housing affordability index has broken the two hundred mark, meaning the typical family has roughly double the income needed to purchase a median-priced home," he said. "For buyers who can qualify for a mortgage, now is a very good time to become a homeowner."
Projections for the remainder of 2012 indicate that this affordability high will continue and rates will remain low. "Housing inventory levels have declined to a point where conditions are becoming much more balanced in much of the country," Veissi said. "If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices with modest gains in areas with stronger job growth."
Despite these incredible buyer opportunities, builder confidence is down. The National Association of Home Builders (NAHB) reports that builder confidence for newly built, single-family homes declined for the first time in seven months.
"What we’re seeing is essentially a pause in what had been a fairly rapid build-up in builder confidence that started last September," said NAHB Chief Economist David Crowe. "This is partly because interest expressed by buyers in the past few months has yet to translate into expected sales activity, but is also reflective of the ongoing challenges that are slowing the housing recovery - particularly tight credit conditions for builders and buyers, competition from foreclosures and problems with obtaining accurate appraisals."
This has been an ongoing concern for many market activists. While housing affordability is at an all-time high, gaining access to credit is a tough road for many would-be buyers. Additionally, some would-be buyers are still wary of the market and are waiting on the sidelines for the economy to improve or market conditions to stabilize.
Regionally, results varied. The Northeast was the only region to see a gain in builder confidence, posting a 4 point gain on the HMI scale. The West remained unchanged, but both the West and South posted declines. Single-family home production held steady for the month. The multi-family sector saw a double digit decline, according to the U.S. Commerce Department.
Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, FL, reported, "While more consumers appear to be seriously considering a new-home purchase, builders remain very cautious about starting new projects until they see more actual sales materializing.
Reposted from Carla Hill - Realty Times - via Linked IN - via Realty Times
Published: April 23, 2012
Monday, January 30, 2012
Obama Extends Foreclosure Prevention Program Aid
The Obama administration announced several changes to eligibility requirements for its Home Affordable Modification Program so that more struggling home owners can participate.
Follow this link for the complete details!
Obama Extends Foreclosure Prevention Program Aid
Obama Extends Foreclosure Prevention Program Aid
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