Home buyers unable to tap into a federal tax credit before it expired on April 30 are finding a consolation prize in mortgage rates, which dropped again this week to near-record lows. According to Freddie Mac, interest on 30-year fixed loans averaged 4.78 percent compared to 4.84 percent last week, while the 15-year rate slipped to a new low of 4.21 percent from 4.24 percent. The favorable borrowing costs will improve affordability and soften the impact of the tax credit program ending, says Freddie Mac chief economist Frank Nothaft.

Source: Investor’s Business Daily (05/28/10)

Before labeling a property a luxury home we have to have an understanding of what “luxury” means in the context of real estate. When I set out to write this article I talked to different real estate agents, their brokers, home builders and interior designers. It turned out that every time I asked the question I received a different answer. However, all the answers had something in common. They all fell within one or more of the following three categories.

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When it comes to your credit score, general consensus among credit repair specialist is that a short sale is more advantageous than foreclosure. This is a moving target and the answer changes every time you ask, be sure to inform yourself properly. It’s up to you to weigh the consequences and decide what you are willing to live with as you go forward financially.

Before you take action, consult your tax advisor to find out exactly what tax consequences you personally will face in a short sale or foreclosure situation.

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The near-record low mortgage rates seen during the past few weeks may not be around much longer. Signs of improving economic conditions could lead Federal Reserve Chair Ben Bernanke to raise key interest rates, driving up mortgage rates, says Stephen Stanley, chief economist at Pierpont Securities LLC. The evidence includes more consumers are paying their bills on time. Past-due accounts at American Express declined 34 percent compared to a year ago, and Target Corp. reported its lowest delinquency rate in two years during the second quarter.

In another sign of economic improvement, fewer banks reported tightening lending standards this month, one reason consumer borrowing rose for the second time in three months. “If lending standards start to stabilize, that’ll be another reason to remove the emergency measures, including the zero rate,” says Jay Bryson, a senior global economist at Wells Fargo Securities LLC in Charlotte, N.C., who formerly worked at the Fed in Washington.

Source: Bloomberg, Bob Willis and Anthony Feld (05/28/2010)

Don’t expect this to be a quick work; negotiating with lenders requires patience on all sides! It can be a lengthy waiting game, weeks, several months and sometimes more than a year before an approval is granted. Don’t believe anyone who assures you of a set time line because every situation is different and there’s a lot involved; investors, bureaucratic regulations and insurers that must be sifted through and satisfied.

It’s important to understand that if your house is going into foreclosure, requesting a short sale does not necessarily stop the process. However, though no-one can guarantee success, it won’t hurt to try.

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Today I want to share some information on an option known as “short sale”, also known as a “negotiated settlement,” a possible alternative to foreclosure that takes place between a homeowner and a lender. Depending on your individual situation a short sale might offer some notable advantages. Just be aware that the short sale is a bit of a moving target due to changing legislative policies.

How Does a Short Sale Work

When a property has lost its value to the point that it’s worth less than the loan amount, lenders know that taking back the property through the foreclosure process might further increase their loss. Often, you can convince your lender that taking less than what is owed to them now via a short sale is better than going through with foreclosure and trying to sell it later.

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Sales of new homes jumped in April, climbing 14.8 percent to a seasonally adjusted rate of 504,000 last month, up from 439,000 in March, the U.S. Commerce Department reported Wednesday. Sales were up 47.8 percent over the same period a year ago. The surge was driven by the home buyer tax credit, which expired April 30. “We got two solid increases in March and April,” says Mark Vitner, senior economist at Wells Fargo. “We may see sales fall to a record low in the aftermath of the tax credit program, but any fallback should be short-lived.” The government estimates that there were 211,000 new homes on the market at the end of April, a five-month inventory.

Source: CNNMoney.com, Hibah Yousuf (05/26/2010)

The cost varies, depending on the skill and experience of the stager, as well as what the home owner wants them to do. Generally, cost ranges from $0.20 to $0.80 per square foot per month, with a minimum of two to three months. Remember, everything is negotiable and you have the choice to stage your home in whole or in part (the job can also be priced for an overall area). Be aware that staging the whole home is preferable and will convey the maximum perceived value.

It is a good idea in any given scenario to maximize your chances of success and do all you can to stack the odds in your favor. For this reason, I believe that staging is a valuable tool worth considering for any seller that wants to improve results. Sabrina says that on average 60% of the homes that are professionally staged sell within 60 to 90 days.

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More than 76 percent of people say they would prefer to rent a home than buy one, up 5 percent from 2009, according to this year’s survey from the National Apartment Association. The survey also calculated that 60 percent of renters plan to continue renting in 2011, with only 12 percent planning to buy a home in the next year. Some 64 percent of renters cited having no responsibility for major repairs or maintenance as the primary reason they prefer to rent, followed by 33 percent who cited not being impacted by an unpredictable real estate market or susceptible to foreclosure.

Source: National Apartment Association (05/24/2010)

This should be good news for the rental market, let’s go investors… let’s get some rentals

Sabrina likes to start with an in-home consultation to discuss what will be the most suitable furniture and décor for the home. Upon execution of the agreement, the custom-selected furniture and décor is delivered, installed and set up by the designer. If desired by the home owner, the company will hold liquidation sales every weekend or every other weekend to help boost exposure and generate foot traffic to the property. All items sold will be replaced first thing Monday morning. Once the property is sells, the furniture will be removed.

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