Wednesday, December 22, 2010

Real Estate in 2011?

Next year, housing prices will likely drop 5-10% nationally-finally hitting bottom, according to Altos research, a real estate data company.

That doesn't mean that we're instantly going to bounce out of that trough. Expect local price instability. Early 2011 will bring the usual seasonal bounce in prices, similar to this year's period of price stabilization that occurred before the expiration of the home buyer tax credit.

Altos' latest housing market update projected that an uptick in seasonal demand would start to be visible in the third week of January. But two supply trends will ultimately drive prices lower next year; rising inventory and lower quality of that inventory, mainly because of foreclosures and short sales. Foreclosures are released in bundles, otherwise, the market would be inundated with these homes

We are not going to see improvement until 2012. It will come quicker than you think. So, hang in there. However, if you are struggling to keep your home and need help because you're not sure what to do next, contact me. I am a short sale foreclosure representative. Let me help. If you just want to sell or buy a home, I can help you with that as well. Call me, Lisa Longest at 443-786-4200 or email me at lisalongest@exitgoldrealty.com I specialize in Stevensville MD and surrounding areas.

Tuesday, December 21, 2010

How To Rebuild Your Credit After Foreclosure

How To Rebuild Your Credit After Foreclosure

If you’ve been through a foreclosure, you may wonder if there is hope for you to become a homeowner again. The answer is yes, but it will take a while.

A foreclosure is a major hit to your credit history and stays on your credit report for seven years.

Foreclosure is one of the FICO seven deadliest, regardless of the back story— whether it’s a job loss, rate reset, underemployment or other reasons.

So, after a foreclosure, your priority has to be rebuilding your credit. You’ll have some time to do so, because mortgage giants Fannie Mae and Freddie Mac impose strict rules on how long it will take before you’re eligible for another mortgage.

For example, borrowers with a prior foreclosure and extenuating circumstances—such as a job loss, divorce or medical issues—must wait three years before they can qualify for a Fannie Mae-backed loan. For all other borrowers, the waiting period is seven years.

At Freddie Mac, those who can prove extenuating circumstances must wait three years before applying for a new mortgage; everyone else must wait five years. But that will change in February, when the waiting period for those whose foreclosure was caused by their own financial mismanagement will increase to seven years.

Here’s what you need to do to rebuild your credit to qualify again for a mortgage:

Pay your bills on time: Make sure you consistently pay your bills on time. Demonstrated that you are now capable of owning a home and paying the bills, and have recovered from whatever circumstance caused the original foreclosure?

Review your credit report: You’re entitled to a free credit report once every 12 months. You should get a copy and check it for any inaccuracies.

To get your free credit report, go to http://www.annualcreditreport.com. Make sure that debts older than seven years have rotated off your report, as these could be dragging your score down unnecessarily.

Check your mortgage: You want to be sure that you don’t still owe anything on your old mortgage. Sometimes proceeds from a foreclosure sale aren’t enough to cover what’s owed on the mortgage, which would leave you owing the difference.

Make sure there is a zero balance reflected, and if you are responsible for a shortfall, make arrangements to repay the remaining balance.

Many lenders are willing to settle that “deficiency judgment” for less than what’s owed because it’s better than getting no money at all.

Apply for credit: In particular, apply for different varieties of credit. Have some revolving accounts, typically credit cards, and some installment fixed-payment loans. But be careful. Don’t apply for too much credit at once.

Don’t fall prey: Watch out for credit repair companies that promise to clean up your credit report after paying a fee for the service. The truth is, that no one can remove accurate, negative information from your credit report. It’s illegal. Only the passage of time can assure that negative, but accurate, information on your credit report will be removed.

When it comes to repairing your credit, there are no quick fixes, the experts say. What lenders want to see is responsible financial behavior over time.

Know that time is your friend, as the farther you move away from the financial distress, the less negative impact it has. Follow with responsible behavior with your new credit, and you’ll soon have a solid credit file.

If you are upside down or behind in your mortgage, don't worry. I am a default resolution specialist. Just call me, Lisa Longest at Exit Gold Realty and we will will work together through this. Call me at 443-786-4200.

Smart To Buy A Vacation Home Now

Lately, you've been thinking alot about investing strategies. You have a small nest egg that needs to grow, but frankly, you don't trust the stock market. And while real estate has been somewhat a rocky road in recent years, it's still a solid long-term investment strategy-and clearly we are in a buyer's market. But you aren't interested in being a landlord. So what can you do?

Purchase a vacation home and rent it out to travelers! Vacation homes are almost always a good investment. Why? Vacation properties have the ability to pay for themselves, and owners often earn a profit in rental income. Also, the investment comes with the desirable perk of having a place at the beach or in the mountains to call your own.

Here is why there's never been a better time to go vacation house hunting:

1. There's never been so many properties on the market. Once you have pinpointed the vacation rental market that is right for you-the coast, the mountains, ski resort area- you will likely have a lot of properties to choose from.

2. Prices aren't going to get much better. In fact, they're the lowest they've been in five to ten years.

3. Interest rates are very favorable for purchasing. Take advantage of them while they last.

4. You have access to the best real estate professionals. Anyone connected to the housing market who managed to survive the housing crash had to be at the top of his or her game. That means the agents left standing are possibly the best of the best.

5. It's never been easier to rent your vacation home. More and more consumers are choosing to stay in cozy condos, cabins,and chalets instead of cramped, impersonal hotel rooms when they travel.

6. If you buy now, you can be ready for the 2011 peak season. Experienced vacation homeowners often find that the rental fees generated during the twelve weeks between Memorial Day and Labor Day pay their mortgages for an entire year-and most inquiries come between January and March.

So, if you're ready to make the move on buying a vacation home, give me a call, Lisa Longest, with Exit Gold Realty to start the search. Call me at 443-786-4200 or my office at 410-643-4111

Pro's and Con's Of Open Houses

This has always been a dilemma. Do we or don't we hold an open house?

Here are a few things to consider:

Pro's: Home sellers who allow their Realtor to hold an open house benefits from greater exposure, and the open house allows agents to bring in clients over a 3 or 4 hour period instead of scheduling an appointment. The seller would rather vacate the premises for a single event, rather than every time the agent schedules a showing.

Con's: Agents could be focused on meeting potential new clients rather than focusing on selling the home. Items could be stolen by unscrupulous visitors, and a large volume of traffic in and out could result in damage or wear and tear on the floors.

So if you are a seller who is willing to hold an open house, you should leave with their pets during the open house time frame, ensure the home is neat and clean, use lighting and temperature to create a comfortable atmosphere, and remove any fragile objects or valuables.

Presented by Lisa Longest, Exit Gold Realty. Specializing in home sales in Stevensville Md and surrounding areas. Contact me at 443-786-4200

Home Staging Tips

Selling a home in any market can be competitive. It's essential that you follow some simple, yet important tips to help you make your home more salable.

A quicker home sale can be reached by keeping in mind the needs of the home's most likely buyer and creating a fresh inspiring look just for them. The difference between a "For Sale" and a "SOLD" sign often boils down to effective staging a home to appeal to either the young singles, families, or empty nesters- the 3 largest customer segments that are likely to make an offer, and, since everyone likes an updated home, here are a few simple refreshes that can and should be done:

For all groups: A technology overhaul. Flat screen TV's, laptop computers, iPods with docking stations, and wireless technology have eliminated the need of large bulky entertainment centers, and massive desks designed to hide wires.

An absolute must is color! Most sellers are instructed to use neutral colors when repainting. However, adding the right color to accent walls can create depth, enhance kitchen cabinets, or bring a dull bathroom to life. Or you use colors in simple accessories, like throw pillows, canisters, or flowers.

However, use caution with your color choices. Be aware of their sensory impact:

RED: Stimulating

ORANGE: Happiness

YELLOW: Uplifting

BLUE: Calming in softer tones; Clarity in deeper tones

GREEN: Fresh and Rejuvenating

PURPLE: Compassion

AQUA: Restful

For Singles: Singles spend alot of time in the bedroom and the living room, which are their sanctuary from the outside world. So there is no need to set up a dining room with such things a s place settings. Instead, focus on the flat screen TV on a simple stand and candles in the bedroom and bathroom.

Families: Include age appropriate bedding, linens, and towels. A bright rug near play areas, and toy chest with an open lid. And don't forget the garage when staging your home for this group of buyers. Organize children's toys and sports equipment to showcase the garage's storage capacity without compromising functionality.

Empty Nesters: Upgrading the bathroom with accessories or decorative hanging lights will make an impact. If the budget allows, upgrade the refrigerator, stove and dishwasher. Lighting is also important to this group of buyer. Living spaces should maximize natural light, or add lamps or ceiling fans with light fixtures.

So experiment and put yourself in the buyer's shoes. Ask a friend or relative to be brutally honest of the before and after you have staged your home. You may be surprised how little changes, with a little budget, can make a huge difference to a buyer.

So, if you are ready to list your home, or buy one, in the Stevensville Md or surrounding areas, contact Lisa Longest, Exit Gold Realty to assist you. Or if you have questions regarding staging your home, feel free to contact me at 443-786-4200.

Home Staging Tips

Selling a home in any market can be competitive. It's essential that you follow some simple, yet important tips to help you make your home more salable.

A quicker home sale can be reached by keeping in mind the needs of the home's most likely buyer and creating a fresh inspiring look just for them. The difference between a "For Sale" and a "SOLD" sign often boils down to effective staging a home to appeal to either the young singles, families, or empty nesters- the 3 largest customer segments that are likely to make an offer, and, since everyone likes an updated home, here are a few simple refreshes that can and should be done:

For all groups: A technology overhaul. Flat screen TV's, laptop computers, iPods with docking stations, and wireless technology have eliminated the need of large bulky entertainment centers, and massive desks designed to hide wires.

An absolute must is color! Most sellers are instructed to use neutral colors when repainting. However, adding the right color to accent walls can create depth, enhance kitchen cabinets, or bring a dull bathroom to life. Or you use colors in simple accessories, like throw pillows, canisters, or flowers.

However, use caution with your color choices. Be aware of their sensory impact:

RED: Stimulating

ORANGE: Happiness

YELLOW: Uplifting

BLUE: Calming in softer tones; Clarity in deeper tones

GREEN: Fresh and Rejuvenating

PURPLE: Compassion

AQUA: Restful

For Singles: Singles spend alot of time in the bedroom and the living room, which are their sanctuary from the outside world. So there is no need to set up a dining room with such things a s place settings. Instead, focus on the flat screen TV on a simple stand and candles in the bedroom and bathroom.

Families: Include age appropriate bedding, linens, and towels. A bright rug near play areas, and toy chest with an open lid. And don't forget the garage when staging your home for this group of buyers. Organize children's toys and sports equipment to showcase the garage's storage capacity without compromising functionality.

Empty Nesters: Upgrading the bathroom with accessories or decorative hanging lights will make an impact. If the budget allows, upgrade the refrigerator, stove and dishwasher. Lighting is also important to this group of buyer. Living spaces should maximize natural light, or add lamps or ceiling fans with light fixtures.

So experiment and put yourself in the buyer's shoes. Ask a friend or relative to be brutally honest of the before and after you have staged your home. You may be surprised how little changes, with a little budget, can make a huge difference to a buyer.

So, if you are ready to list your home, or buy one, in the Stevensville Md or surrounding areas, contact me, Lisa Longest at Exit Gold Realty to assist you. Or if you have questions regarding staging your home, feel free to contact me at 443-786-4200.