6 Things You Think Add Value To Your Home - But Really Don't

Every homeowner must pay for routine home maintenance, such as replacing worn-out plumbing components or staining the deck, but some choose to make improvements with the intention of increasing the home's value. Certain projects, such as adding a well thought-out family room - or other functional space - can be a wise investment, as they do add to the value of the home. Other projects, however, allow little opportunity to recover the costs when it's time to sell. (For more, check out Top 5 Home Renos For Your Money.)

IN PICTURES:

via financialedge.investopedia.com

Fannie Mae wants you to buy. Buyer bonus of $1,500.00

So it seems Fannie Mae is doing all it can to unload its massive quantities of REO inventory.

 When I say massive, I mean the 129,310 single family bank-owned properties — or REOs, as they're called — it held at the end of Q2, which is more than twice what it was carrying at the end of Q2 2009.Y

Every time home prices drop just 1 percent, the value of all government-sponsored enterprise (GSE) REOs fall by $287 million (thank you to John Burns of John Burns Real Estate Consulting for that math).

No surprise, then that Fannie would want to get rid of its REO as fast as possible, especially as we saw bank repossessions hit a new record in August and home prices are again weakening. How does Fannie do it? It's renewing an expired program that gives buyers of its REOs "3.5 percent of the final sales price that can be used toward closing cost assistance, including a home warranty."

 

And if that's not enough, Fannie is now getting those crash-weary real estate agents on its side as well. "Selling agents representing owner-occupants will receive a $1,500 bonus." Nice. The offer runs from Sept. 23, "and must close by December 31, 2010," so this is a pretty short deal.

“We continue to look for ways to stabilize neighborhoods and offer incentives to qualified buyers who will occupy these properties over the long-term and help support their communities," writes Terry Edwards, Executive VP of Fannie's Credit Portfolio Management in the press release.

Market your listing with all the new Social Media Tools

Just attended a great webinar and learned some great ticks on how to better market our listings with Social Media.

Our team has some of the greatest tools out there to get the word out.

Let us know if you would like an estimate of the value of your home in this market.

 

 

 

 

Sherri Hansen, realtor

Keller Williams Realty - Bothell

425-750-8528 cell

425-408-9673 office 

http://www.reddoorteam.com/

Working hard for my buyers

Dealing with Fannie Mae can be tough, but I am working overtime for my clients to help this young family get a great home to raise their children in.

Sherri Hansen, realtor

Keller Williams Realty - Bothell

425-750-8528 cell

425-408-9673 office

http://www.reddoorteam.com/

 

MCC Mortgage Credit Certificate - This is a great program for first time home buyers. See if you qualify!

The tax credit is called an MCC or Mortgage Credit Certificate and was authorized by Congress in the 1984 Tax Reform Act as a means of providing    housing assistance to low- and moderate-income homebuyers.

 

The feasibility of the MCC Program is dependent upon the extent to which homebuyers have federal tax liability which can be offset by the MCC tax credit

Higher income homebuyers with few deductions or credits are generally the best able to use the MCC tax credit as a form of housing assistance

A qualified homebuyer using the MCC is able to claim up to 20% of annual mortgage interest paid as a federal income tax credit.  The remaining mortgage interest (80%) continues to qualify as an itemized deduction

As an example, on a $200,000 mortgage with a 5% interest rate the homebuyer will pay $10,000 in interest the first year.  Twenty percent of this amount, or $2,000, can be used to directly reduce the homebuyer’s federal income tax liability, thus       reducing their monthly outflow by $166.66

The MCC Program provides a dollar-for-dollar reduction of federal income taxes.  Unused credit can be carried forward up to three years and the       homebuyer can retain the federal tax credit for the life of the loan so long as the homebuyer continues to occupy the property as their principal residence 

 

Likewise,  there is a grant program for down     payment assistance that may qualify a first time homebuyer to receive up to $10,000 in down      payment assistance as well as closing costs.

 

Both of these programs are facilitated by the Washington State Housing Finance Commission. 

Their website is: www.wshfc.org

 

Want  more information?  Contact….

 

Michelle Swanson, Mortgage  Consultant,

Canyon Park Mortgage, a division of Prospect Mtg

Phone: 425-776-1450

Email: Michelle.Swanson@ProspectMtg.com

NMLS#36763

 

Great staging ideas from Today Show. Good tips on how to get a buyer to make an offer.

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A Moving Budget Unpacked and Broken Down By Kenia Perez

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They say moving is one of the most stressful life events—and I'll tell you why: the sheer expense of that stuff shuffle. I’m planning a move myself next year, and by budgeting ahead I hope to avoid the big expenses—and the sneaky ones.

Get estimates

• Boxes can be pricey at $2+ each. I'm using this online Packing Calculator and Uboxes.com to estimate the number and size of boxes I'll need: Over $200! Crikey! A) There's always the grocery and liquor store option and B) I plan to throw/give things away so there’s less to pack.

 

• A moving checklist like this one spotlights important expenses and chores (tape! get measurements!) so you can prep ahead.

 

• I got a quote from a moving company of about $75 per hour, with a two-hour minimum. (Most companies will give you a quote online, or use this free service.) Rather than spend about $300 (plus tip!), I'll beg my close friends (and brother) to help. If they say yes, my budget shrinks to about $100 for pizza and gas for the truck.

Sneaky stuff

• With so many utilities and services to cancel or transfer, I have to make sure that I avoid overlapping bills or late fees. Solution: Get those change-of-address forms in, and orchestrate phone calls to all the companies.

 

• Stock your shelves, plug in the fridge and make sure your kitchen items are carefully labeled. That will save big money on that monster... takeout!

Stage Your Patio - Great idea when preparing your home for sale.

  Staging Your Patio,Deck, Backyar, Front Porch. Home buyers see the bistro set you have set up on your bedroom balcony and envision rolling out of bed to a Sunday morning brunch as they leisurely peruse the New York Times.  It’s a fantasy, after all, so there’s no need to fill in all the details, like who’s preparing that brunch.

They see the picnic table on the deck and think only of the Labor Day barbecues, and not at all of the fact that they struggle to even light a grill.

Many buyers - especially those who have always lived in apartments with little or no outside space - are enamored with the idea of being able to spend time and entertain outdoors, so if you’re a seller with a home that has any outdoor space, it behooves you to stage it with little furniture  that show the space off to its best advantage.

But buyers, beware:  studies show that indoor spaces have a much greater impact on a homeowners’ happiness than outdoor spaces, so don’t let the gorgeous English garden sway you into thinking you’ll be sublimely happy in a home where the interior doesn’t do much for you.