Archive for July, 2008
Choosing The Right Roof For Your Home
Posted by Rich Johnson | Currently 1 Comment »
Keeping a roof over your family’s heads is the single most important responsibility apart from keeping them fed. As a home owner, it is inevitable that at some point in your life that roof will need to be replaced. Fortunately, unless caught in a natural disaster, your roof will not need replacing often. Nevertheless, replacing a roof is a major undertaking with many options to keep in mind.
One of the first decisions you will need to make is which type of roofing material is going to be used. This decision takes some time and consideration and it is important to be aware of the different options available to you. With this in mind, I have provided some information about the different options available to you and some non aesthetic considerations you will want to acknowledge. 
Types of roofing available:
Asphalt - This type of material is very versatile and is considered to be architecturally correct for almost any type of home across the country.
Wood Shakes and Shingles - Wood shakes are generally made of cedar. Wood roofs are often seen on older homes and would probably not be considered practical for most modern homes.
Clay Tile - Clay tile is most prominent in Southwestern architecture. This style of roofing is generally found on homes that incorporate Spanish and Italian designs.
Slate - Slate roofing never really caught on in the West Coast. It is usually found on older building in the East Coast located close to the quarries from which it was mined. Modern builders tend to stay away from slate because it does not fit most contemporary architecture styles and it is unwieldy to work with.
Fiber Cement - This material is durable and available in a variety of textures and colors. The hardiness of fiber cement roofing makes it a good fit for homes situated close to an ocean or in hot, humid climates. Other roofing material tends to break down more quickly when exposed to the moisture, salt, wind, and heat present in such areas.
Features to consider:
Ease of Installation and Repair - Asphalt, wood, and metal roofing are easy to install, comparatively lightweight, and fairly easy to repair.
Cost - A roofing project is comprised of two cost elements, materials and installation. The heavier roofing materials (slate, fiber cement, etc…) are generally more expensive to purchase and install. Asphalt is generally the most affordable option with wood shanks or shingles following a distant second.
Reprinted Courtesy of 1ParkPlace
Popularity: 14% [?]
Related Posts: Home Improvement
Seven Money Saving Tips For Moving
Posted by Rich Johnson | Leave A Comment »
You are planning a move. Maybe it’s voluntary; maybe not. Nevertheless, you are planning to move and you need to sell your present home. You want a fair profit. Your goal is to get as much money out of the sale of your home as you can, to recoup some of the time and investment you’ve put into it over the years. But you also realize you don’t have a lot of time. You need a relatively quick sale.
That’s the dilemma.
How do you decide how much to ask for your house in order to secure a fair profit and generate a quick sale at the same time - with the least amount of headache and hassle? 
Take heart. It’s possible.
Regardless of the market - be it hot or cold; regardless of the season - be it summer or winter; and regardless of the fact the house down the street has been sitting on the market forever without any takers - you can accomplish the goal of selling your home fast and at a fair price if you follow a few simple principles.
1. Think of the building you are preparing to sell as a house - not your home. You must detach yourself emotionally from the sale of your property and view it as just another commodity for sale on the open market. It is no more and no less a residential property for sale to a buyer who is ready, willing, and able to purchase it.
2. Realize what you think your house is worth has absolutely no merit. Being a commodity on the open market, a house is only worth what other people are willing to pay for that particular style of house, in that particular area, and at this particular time.
3. Determine prices of comparable houses. A lender always hires a professional appraiser to evaluate the value of a house before underwriting a loan. The most important factor an appraiser uses in determining the value of a house is the reliable data gathered from comparing the selling price of similar properties in style, size, location, and relative time frame - usually 30 to 60 days.
4. Hire an appraiser to give you a documented opinion as to your house’s value. Realize, however, the appraisal you receive is only the appraiser’s professional opinion based on reliable market data - but it is only an opinion. Only a buyer willing to put money in your pocket can tell you what your house is actually worth. And be aware that appraisals are often too high - appraisers are more likely to 
overstate the value of a house rather than understate it.
5. Ask a broker for help. Another way to help determine what your house is fairly worth is to ask a real estate agent. Many agents offer a free “comparative market analysis” in the hope you will list your house with them. Get the broker’s opinions in writing and obtain at least three appraisals from different brokers. This will protect you from a common but tragic practice of telling you what you want to hear. In the trade it is called “buying the listing” and it happens with appalling frequency.
6. Learn the asking prices of similar houses for sale. While actual sales prices of recently sold houses are the best source of information, knowing the asking prices of houses still on the market will give an idea of the top range of market values in your area.
7. Gain an overall view of the local housing market. Is the market hot or cold? Is it a buyer’s market or seller’s market? It is also helpful to know the total inventory of houses currently on the market in relation to the number of houses currently pending sale. For instance if 356 houses are for sale and 42 houses are pending sale, the ratio is 1:8. This means there is one buyer per eight houses for sale. Called a “Total Market Analysis,” this data can be the most powerful information you can gather to best position your house for a fast, profitable sale.
(Bonus) Price your own home. Given all the above data you should now be in a position to determine an asking price for your house which will ensure a fair profit and a fast sale. The trick is to price your home a little below current asking prices and a little higher than actual selling prices. The actual price you choose would best be determined by a total market analysis and would ensure a lot of buyer activity as well as providing you a fair, over market profit. It’s like having your cake and eating it too!
With the right information, you can price your house to sell for the most money, in the shortest amount of time, and with the least amount of hassle. Simply follow the seven basic principles and you are well on your way to a fast, profitable sale.
Popularity: 23% [?]
Related Posts: Moving Tips & Advice
New Fannie Mae Investor Rule
Posted by Kevin Kueneke | Leave A Comment »
Many buyers are choosing to retain their current residences and turn them into rental properties. Ideally, the rent received will be enough to cover the mortgage payment if not more, and in the long run the buyer will enjoy appreciation on the property as well. As far as qualifying for their home purchase, lenders would typically accept 75% of the new rent to help offset the mortgage payment of the retained property instead of counting the entire payment against their debt to income ratios.
Big change to FNMA guidelines: The underwriter must now obtain a statistical appraisal (also known as an AVM) on the borrower’s current residence to determine the percentage of equity in that property. If the borrower has a minimum of 30% equity in the current residence, then normal underwriting guidelines apply. However, if it is determined that the borrower has less than 30% equity in the retained home, the entire mortgage payment, including taxes and insurance, will be counted against them, regardless of down payment on the new home, credit, etc. This can be a deal killer.
Unfortunately, there have been many buyers that provided fake lease agreements so that they could buy their next home, wrongly assuming that the home would rent quickly. After a few months of the retained property sitting vacant, the mortgage payments still being due, and a depressed real estate market, some of these folks chose to walk away from the old home.
If you have a client that plans to rent out their current home and needs that income to qualify, run comps on the retained property to be safe. You do not want to wait until after you already have an accepted offer to find out they do not qualify. This guideline change is affecting almost all conventional loans including Conforming, Conforming Plus, and true Jumbo even though Jumbo loans are not insured by FNMA. Not the greatest of news, but in the long run this can help in the effort to reduce loan defaults.
Should you have any questions especially if you have a client that might be affected by this change, please feel free to call me at (760)500-1919 or email me.
Popularity: 13% [?]
Related Posts: Buyers, CW Mortgage, Home Loans, Mortgage News
New Technologies or Old School Communication - What’s Better?
Posted by Erica Vautier | Currently 1 Comment »
When talking about tennis shoes or day planners, the popular New Years mantra “out with the old, in with the new” is great advice. But when it comes to marketing a home, an integration of new technologies and old techniques is the most effective.
Faced with a softening market and price appreciation slowing, real estate agents and home owners must work harder to sell properties that would have been snapped up in past years. In response, numerous companies have come up with a “better mouse trap” promising to increase exposure and sell homes faster.
Sellers now have a plethora of real estate marketing tools at their finger tips and it can be easy to get lost in good intentions.
To decide what technologies to allow into our lives, sellers need to step outside their routines and explore new options. Ironically, the best way to learn about new ways to communicate is to simply talk to our friends, family and coworkers.
Find someone who is actively using the iPhone or writing a web site blog and solicit their advice. A friend will warn you about the shortcomings of new gadgets before a salesperson will. You may wonder how you ever lived without emails coming directly to your phone, or decide that starting your own blog is too time-consuming.
To sell a home in today’s cautious environment undoubtedly requires marketing creativity, but technology for the sake of technology is self-defeating. The goal is to determine which new tools will actually help sell your property, and then work with an agent to integrate those tools into your marketing plan.
Web sites are now the primary source of exposure for homes for sale and properties that feature virtual tours appear higher up on lists of homes. Still, with an estimated 25,000 homes available in San Diego alone, it is important to work with an agent who has strong contacts in the community and follow-up systems in place. Let technology add to your home’s exposure, but choose an agent who understands the value of personal communication.
Whatever marketing tool you and your agent decide to test drive, don’t forget to evaluate its effectiveness. Your agent should ask people who comes to see your house to fill out a source card so you know where they heard about you. The most successful agents use precise tracking systems to learn about potential buyers and expedite the sales process.
To the most technologically advanced sellers, I suggest the occasional reality check. Despite the undeniable appeal of email and text messaging, there is no replacement for face-to-face contact with prospective buyers. For sellers determined to stay grounded in the grassroots ways, I recommend adopting an open mind. Change is inevitable, so find a way to make it work for you and your home. The key is to combine the best of new technologies and traditional real estate practices.
Popularity: 58% [?]
Related Posts: Education, Marketing, San Diego, Sellers, Technology, Windermere, Windermere Agents
