Agents|Brokers

25March

The snow has melted and it smells like Spring

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The snow has melted, the birds are chirping, flowers are blooming, the grass is growing and it smells like Spring. With all these wonderful transitions from the past months comes Spring indoor and outdoor chores. Here are a few reminders to assist:

  • Take a walk around your home and inspect the walls for any irregularities that might need repair
  • There might be a need for brick and mortar repair or paint touchup
  • Caulk around windows
  • Mulch flowerbeds
  • Fertilize yard
  • Prune shrubs
  • Clean gutters
  • Check attic for ventilation and remove any critter nests
  • Have A/C serviced
  • Drain and flush hot water heater
  • Perform maintenance or service garage door and opener

Be proactive and maintain your property in the best possible condition.

19March

BidSelect targets local buyers with featured properties

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With so many buyers starting their home search online, its critical for listing agents to market properties with a solutions provider that can serve up relevant information to the buying community.  With this in mind, BidSelect has implemented technology so that featured properties displayed on the home page are more relevant to the end user.  In addition, they have expand the number of featured properties providing greater opportunity for sellers to increase traffic to their listings.

Visit www.bidselect.com to see the new home page changes.

5February

Embracing Change

Buyers in the market have more tools available than ever before.   One of the tools is a booklet that lenders are required under the Real Estate Settlement Procedures Act (RESPA) to give to buyers within three days of their application for a mortgage loan.

Because purchasing a home is an important financial decision that should be considered carefully, this booklet will assist the buyer to become more familiar with the different layers of the home buyer process. Included are suggestions of the decision making process on whether to purchase or not and the cost involved in owning a home. The Good Faith Estimate (GFE) is explained in detail along with the HUD 1 Settlement Statement that is received at closing.  The information is essential for the buyer as well as to be used as a needed refresher for real estate agents everywhere.  There are explanations of the roles of a real estate broker, choosing an attorney, the terms of the sales contract agreement, affiliated businesses, and incentives from builders.  The booklet then addresses the different types of loans and insurances.  The step by step process of the GFE covers important dates and all the cost involved.  For example what cost cannot increase from what is stated in the GFE, what cost cannot have more than a10% increase at closing from what was stated in the GFE, and what cost/changes that could be different at closing than what was stated in the GFE.   The table below is included in the booklet.

Embracing Change

I applauded the changes with the new HUD1 Settlement Statement as well.  There are now three pages instead of two.  The third page is set in layman’s terms via a comparison chart of the GFE and cost at closing as well as the buyer’s loan document information.  Gone are the days of sitting at the closing table with the buyer’s eyes glazed over with confusion!  I have said it before and I’ll say it again, “Education is power, and when you empower someone with education, you build trust and report”.  I encourage all real estate professionals to become familiar with the GFE and the HUD1.  Dive in, get your feet wet!  Understanding the complexities of real estate and being able to communicate to your audience is one of the keys of a successful real estate professional.   There will always be change, so embrace it, smother yourself and indulge in the learning atmosphere!

15January

Is it time to flush your water heater?

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The flushing of your hot water heater should be part of an annual home maintenance program. Draining water out of the tank flushes out sediments that settle to the bottom of the tank. The flushing helps ensure safe, energy efficient operation of your water heater. Additionally it helps to extend the useful life of the unit. The service can be done professionally or consider it as a do it yourself project with the following recommendations.

To flush the tank:

  1. For electrical water heaters, turn OFF the power at the circuit breaker. For gas water heaters, turn the thermostat on the unit to the PILOT position.
  2. Connect a garden hose to the drain valve at the bottom of the tank, and put the other end either in a 5-gallon bucket, a floor drain, or run the hose outside.
  3. If you have a recirculation pump for your hot water system, then turn this off.
  4. Shut off the supply valve for the cold water inlet to the water heater.
  5. Open a HOT water faucet in a sink closest to your water heater, and open another HOT water faucet in a sink that is at the highest point in your house (NOTE:  Just a little water will flow out, since you have shut the water supply valve to your hot water heater in the step above).
  6. Open the pressure relief valve at the top of the tank (you might want to place a rag or small bowl under the vent pipe to catch any water drops that might come out).
  7. Open the drain valve on you tank and drain 1 to 2 gallons from the tank.  NOTE: The water coming out of the garden hose will be scalding hot so be careful that the water doesn’t splash anywhere except in the bucket, drain, or outside.  As the water begins to drain out, you will probably notice some small scale or sediment in the water.

To re-fill the tank:

  1. Close the drain valve and remove the garden hose.
  2. Close the pressure relief valve at the top of the tank.
  3. Open the valve for the cold water inlet to the tank, and you should start to hear the tank fill with water.
  4. Watch the faucets that you opened in the house.  After you begin to get a steady stream of water from the faucet, shut that faucet.
  5. For electric water heaters, turn the power back on, and for gas models, turn the thermostat on the water heater back to its ON position.
  6. If you have a recirculation pump, then turn it back on.
  7. Double check that the drain valve is tight.

TEST PRESSURE RELIEF VALVE:  The pressure relief valve is at the top of the tank, with a drain tube extending down from it.  To test the valve, with the water supply valve to your water heater in the open position (i.e., its normal operating position), place a bucket under the vent pipe for the valve, then lift the lever on the valve for a few seconds to let water flush out through the valve.  If little or no water flows out, or if the valve doesn’t shut off, then replace it.  NOTE: The water coming out of the vent pipe will be scalding hot, so be careful that the water doesn’t splash on you.

20November

Marketing a home (Part 2)….

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Excellent photographs are a must in order to properly market a home; without photos many listings simply get passed up. In addition to photos, a good quality virtual tour will lead a buyer from one room of the home to another, allowing the buyer to visualize themselves living in the home. Print advertising will reach buyers who read the newspaper, and direct mail may reach neighbors surrounding the property who may know of an interested buyer for the home. An open house is a magnet for buyers who are searching in a particular area. Brochures are also an excellent source to attract drive-by buyers who are interested in finding out more information about the home or even setting up a private viewing. Stay tuned for more.

6November

Congess Extends and Expands Homebuyer Credit

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President Obama is scheduled to sign an economic package passed by Congress this week that will help millions of Americans who have lost jobs and have been unable to rejoin the workforce. It would also extend for seven months an $8,000 tax credit for first-time homebuyers that was enacted as part of the $787 billion stimulus package passed in February 2009 and is set to expire at the end of November 2009. The program would be expanded with a $6,500 credit for homebuyers who have lived in their current residences for five years.

The IRS reports that 1.4 million people applied for the homebuyer’s credit through August 2009.  The legislation would extend the program through June 2010, as long as the buyer signs a contract by the end of April 2010. It also offers a $6,500 tax credit to those who have lived in their current residence at least five years.

The measure doubles the income ceiling for eligible individuals to $125,000. Homes must cost less than $800,000 to qualify.

26October

HomeTelos LEO Program Achieves Market Success as Foreclosure Alternative

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US-TX, Dallas, October 21, 2009 – HomeTelos Loan Exit Option (LEO) program has demonstrated market success as an effective approach in avoiding foreclosure for borrowers, investors, and mortgage servicers.  The LEO pre-foreclosure home sale program is faster and has significantly higher closing success rates than traditional short-selling programs. The HomeTelos LEO system aligns the interests of borrowers, servicers and other interested parties through its unique workflow management system, which qualifies properties for pre-foreclosure sale.  When qualified, LEO then facilitates property sales through its dynamic online marketplace that brings motivated sellers & buyers together.   Mortgage servicers can better help borrowers avoid foreclosure through HomeTelos’ integrated and streamlined LEO system and processes.  Costly, frustrating, and ultimately unsuccessful sales efforts are avoided without heavy staff demands being imposed on servicing operations.    

Since LEO’s launch last year, LEO properties upon listing have averaged 37 days on market, 4 offers per property and sales prices that average 96 percent of list price.  A key to this success is real-time communication between real estate brokers, servicers and investors, allowing LEO to average only 3 days from  buyer’s offer submission to servicer’s acceptance or rejection.  According to a Florida borrower, “we were getting nowhere, losing our job then our home.  We appreciated the quick action in getting our short sale resolved in this market”.  LEO provides loan servicers with assurance that the property is widely marketed, offers represent real market value and that closing issues are resolved in advance.  Borrowers avoid foreclosure proceedings, critically damaged credit ratings and the threat of lender recourse for loan payment shortfalls. 

According to HomeTelos President Stephen Polley, “LEO’s success is driven by its breakthrough combination of innovative technology and re-engineered workflow processes for achieving the combined critical objectives of servicers, borrowers and other interested parties.  LEO provides a way for families under financial stress to have a mortgage option that allows them to relocate with dignity.”  

The Loan Exit Option (LEO) system process is patent pending.  

About HomeTelos, L.P.:  HomeTelos is headquartered in Dallas, Texas and specializes in the development and support of web-based solutions which support the management and marketing of real estate assets, including pre-foreclosures and foreclosures.  For more information, visit www.hometelos.com or call (888) 676-9200.

19October

4 Important Things You Should Know When Purchasing a Home

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Purchasing a home is one of the most important personal and financial decisions you can make.  If you are about to make this decision you should take the time to get educated about the process because there are a lot of legal and financial ramifications involved.  Here are four basic, but important things, you should know and do before signing a contract to purchase a home. 

1.  Choose the Right Lender and get Pre-Approved.  This has always been the most important thing to do before buying a home, but today it is even more important with all of the recent changes and restrictions in lending.  The bottom line is this:  if your lender cannot close your loan on the day of closing you cannot purchase your home.  Most importantly, if this happens on the day of closing, you will be in default and can be sued in a court of law.   All real estate contracts have default language and you should read those paragraphs and know the penalties for default before signing. 

When choosing a lender, the worst thing you can do is go online and choose a lender that you know nothing about.  The best thing you can do is ask your real estate agent to recommend a lender.  Good real estate agents have established relationships with two or three reputable lenders and they can give you a good referral.      

Choosing the right lender is also important because they can determine up front if you even qualify to purchase a home.  Otherwise, unless you have the cash to purchase a home, you cannot buy a home without a loan.  If you are not pre-approved you will waste your time and the agent’s time looking for a home.  Any good real estate agent will require a pre-approval letter, or proof of funds for a cash purchase, before they start showing your homes.   This is customary and reasonable. 

2.  Choose a Good Real Estate Agent.  Next to choosing the right lender, you should choose a good real estate agent to represent you.  This is always a tough decision because there are no real standards or criteria to follow.  You can often find a good referral from friends or family who have used them and had a good experience.  Try to choose an agent with at least 2 or more year’s experience.   The most important factor is their real estate education.  There are numerous opportunities for agents to learn but not all of them take advantage of those opportunities.  Try to choose an agent that is knowledgeable and education-minded.  It is also a good idea to choose an agent that is part of a larger brokerage firm; that way if legal issues arise they usually have a good support system for resolving issues or for mediation.  

3.  Termination and Contract Deadlines.   Once you are under contract you should always know your contract deadlines.  As a buyer there are usually several options for you to terminate the contract without losing your earnest money.  Once those deadlines have passed, you “may” still be able to terminate, but you will forfeit your earnest money, which in most cases can be $1000 or more.  A few of the basic termination deadlines are financing deadlines, the option or inspection period, receiving HOA information, the survey or the Seller’s Disclosure Notice.   The financing deadline is very important because after that time period passes, you cannot use financing as a reason to terminate – which is the most common reason buyers terminate.   Most financing deadlines are 14 to 21 days after the contract is signed and executed, whereas the contract deadline is normally 30 to 45 days after it is signed.  That means if your lender determines on day 30 they cannot close your loan, you could lose earnest money.  It is important also that you inform your lender of the financing deadline.  Always look over your contract and highlight the phrases that contain the words “… this contract shall terminate.”  That way you’ll know all you termination options.
 

4.  Know Your Cost.  Before signing a contract, always know what your out-of-pocket costs will be.  As a buyer, there are thousands of dollars of costs associated with a home mortgage and your lender, by law, is required to provide you with a Good Faith Estimate (GFE).  The Good Faith Estimate will break down all of the costs associated with your mortgage, as well as, show you what your monthly payment, taxes and insurance will be.  You should look over the GFE carefully and have your real estate agent look over it to make sure the costs are reasonable and customary.  In addition, you should look over it to see how much money you will be required to bring on closing day and most importantly, how much your monthly mortgage payment will be.  You should know these costs before you even begin to look at houses.  That way you will know if you have the cash necessary to purchase a home and most importantly, if you can afford the monthly payment.  During the pre-approval process you should tell your lender how much you can afford for a monthly payment and how much cash you have for a down payment and for closing costs.  Once your lender knows this, they can give you the price range of homes you need to look at in order to stay within that monthly payment.  As a buyer, it is your responsibility to know the costs and what you can and cannot afford. 

Purchasing a home is a big decision and there are numerous other things that are important as well, and trying to navigate the process on your own is not a wise decision.  Just as you would hire an attorney to represent you in court or a doctor to treat a serious illness, you should choose a real estate professional and a reputable lender to represent you and provide you with good professional real estate advice.   

12October

Broad Improvement in Home Prices

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According to the Case-Shiller Home price index, published 9-29-2009, there has been Broad Improvement in Home Prices.  Data through July 2009 shows that, although still negative, the annual rate of decline of the 10-City and 20-City Composites improved compared to last month’s reading.  This marks approximately six months of improved readings in these statistics, beginning in early 2009. F igures continue to support an indication of stabilization in national real estate values.  For more information visit the S&P/Case-Shiller Home Price Indices

5October

HomeTelos LEO: On the Cutting Edge of Something Great!

Comment from a Platinum performing agent in Los Angeles, CA:  “Nothing is forever in this business and your ability to adapt to the changing marketplace will ensure your survival.  I think the move to focus on LEO is a brilliant move.  I think your company is on the cutting edge of something great.  I don’t see REOs flooding the market.  I see a measured pace for REOs especially as the number of workouts and short sales continue to increase.  I think the LEO program will be a great success in California.  I recognize that it’s a privilege to work with your company.