Home buying strategies are important in today’s market. We are sitting in the sellers market, which means that almost all offers are being packaged “cash,” with a ribbon on top.

The low mortgage rates and increasing demands have attracted buyers back into the market. The homeowners who have listed their homes are already seeing more traffic. The bidding war for homes have started to resurface in some of the cities today.

Looking at the evidence suggests that the real estate nightmare is over. In the past year, home prices have increased in 92 of the country’s 100 biggest metropolitan areas. This is according to CoreLogic. With the prices increasing as high as 23% in Phoenix and 17% in San Francisco, a lot of people are indeed full of hope. Sales volume also rose in 69 out of the top 100 markets. And 35 of these show a double-digit gain.

Most economists believe that the bottom is way behind us. The five-year outlook for the housing market is already on solid footing. The years 2013 and 2014 are going to be the transition years for the market. That is exactly what Mark Fleming believes, the Chief Economist of CoreLogic. Although the market is not totally healed from the damage, it is indeed improving in many ways than one. And this is why buyers in today’s market need these home buying strategies to grab the property they want.

Successful Buyers’ Home Buying Strategies

Considering buying a home? For the first time in many years, the economics of the market are working against you in several places in the United States. That’s why you need some home buying strategies.

Inventory is pretty tight and bidding wars are back in the game in most parts of the country. To get your hands on your dream home, you’ll have to pay up and abide with the strict loan requirements. But on the bright side, despite of the increasing prices of homes, buying a home is actually still cheaper than renting one.

The days when you could get a home for 20 percent less than the list price are way long gone. Usually, homes on the list today sell very close to the listing price. In Detroit, the median sales-to-list price ratio is at 98%, and the national figure is at 97%.

To get the home you really want, you really have to apply some home buying strategies. For homes located in areas that are still selling below the listed price yet deals are made in less than two months, offer 2 to 3% below the asking price. This is according a realtor in Birmingham, Ala. But in places where homes are selling above the listing price, your first offer must be the asking price.

Home Buying Strategies During a Bidding War

From January to February of the current year, 73% of the agents  said that their clients offer faced rival bids, up from 56% in the fall of 2011. Of course, the only way to win a bidding war is to raise your price. Few contingencies can be helpful as well since sellers at this time no longer want multiple go-rounds. It’s simple ladies and gentlemen; just make your best offer. You either step up to the plate or walk away.

If you need help with your home buying strategies, then call us today! We’ll be glad to help you package your offers to get you the home of your dreams.

Although many players in the real estate market remain cautious about the overall health of the national market, some recent sales increases show signs of renewed life and recovery.  In fact, sales for March of 2013 have reached a 3 year high.  Figures released by the National Association of Realtors show monthly increases, including February’s home sales at 10.2% higher than the same time last year.

Interestingly, home sales could possibly go higher if there were more inventory available.  There is very little new inventory due to low levels of construction.  Plus, existing homeowners seem to be holding off on selling waiting for their homes to earn a higher equity.  However, the usual seasonal increases should create a little inventory jump for the summer months.  There are good signs pointing toward increased inventory.  After many months of decrease, total inventory did rise 9.6% at the end of February with 1.94 million homes listed.  But overall, inventory is still down from recent years when there were so many foreclosures on the market.  The foreclosure crisis seems to be lessening considering current listing numbers are 19% lower than last year.  There are significantly fewer distressed homes being sold.  In February of 2012, foreclosure and short sale homes accounted for 34% of total home sales.  In February of 2013, distressed home sales were down at 25% of total sales.

Home Sales Prices

Sale prices have shown a slow but steady upward increase over the last 16 months.  February was up .1% from January and almost 6% up from the same time last year.  30 of the largest metro areas in the country have shown appreciation monthly and annually.

As prices continue to rise, it should encourage more owners to sell.  Those factors will play an important part in a longterm “cure” for the ailing national market. It is this balance of price gains and healthy inventory levels that will really prove a complete recovery.  Home sale projections for the year are expected to be at about 5 million, but a truly thriving market would be closer to 6 million.

Lower priced inventory and sales are still lacking.  Sales of homes priced below $300,000 are down 27% from last year.  On the other hand, single family homes listed above $500,000 are up.  Sales for half-million plus homes were up 31% from last year.  An increase in the sales of lower priced homes will show that the market is stable for all.

Nonetheless, signs are still good for recovery.  Interest rates have had small increases, but are still low.  Homes aren’t sitting on the market for long, selling at an average of 74 days.  Overall, there is a momentum growing that looks promising.

If you’re thinking of buying, selling, or investing in today’s market, and you need an expert’s opinion on this -then call us today! We’ll be happy to help find the best plan of action for you.

Hoover Dam is a concrete arch-gravity dam located in the Black Canyon of the Colorado River. It is on the border between the United States of Arizona and Nevada. It was once known as the Boulder Dam. Its construction was from 1931 to 1936, during the time of Great Depression. The dedication was made on September 30, 1935 by President Franklin Roosevelt. The completion of the dam involved thousands of workers, and about a hundred of them lost their lives. For a time, it was also controversially named after President Herbert Hoover.

The Dam Construction

In the 1900, the Black Canyon and the Boulder Canyon had been reviewed for their potential to support a dam that can help in controlling floods, providing irrigation water, as well as giving hydroelectric power. It was in 1928 when the Congress finally authorized the project. The large concrete construction back then had never been built; thus, some of the techniques used during the construction were yet to be proven. There were few facilities near the site and the summer weather presented much difficulty. Nonetheless, it was completed two years ahead of schedule.

Hoover Dam as a Tourist Attraction

Hoover Dam is known to impound the Lake Mead. The dam’s generator also provides power for both public and private utilities in Nevada, Arizona, and even in California. Today, Hoover Dam is a major tourist attraction and millions tour throughout the dam every year.

The dam is indeed a testimony of a country’s ability to construct monolithic projects, despite many adverse conditions. Built at the time of the Depression, many men and their families came to the Black Canyon to tame the Colorado River. It took less than five years to build the largest dam at that time. And after decades, Hoover Dam still stands today and is already known as a world-renowned structure. It is even a National Historic Landmark and recognized as America’s Seven Modern Civil Engineering Wonders.

Hoover Dam Details

• Location: The dam can be found 30 miles southeast of Las Vegas. Take the U.S. Highway 93 to Nevada State Route 172. The dam is on the Nevada-Arizona border.
• Parking Garage: Open from 8 am to 6:15 pm, with a parking fee of $7.
• Visitor Center: Open from 9 am to 6 pm.
• A number of Tours are available. The guided Powerplant Tour lasts for about 30 minutes, while the Dam Tour lasts for about an hour. The price ranges from $11 to $30, depending on the kind of tour you want.
• Open daily, except for Thanksgiving and Christmas Day.

Amenities

• Restrooms can be found on Level 1 of the Parking Garage, on the Theatre and Exhibit Levels of the Visitor Center, adjacent to the Old Exhibit Building, and also downstream face towers on top of the dam.
• Food can be bought through a concession service, at the base of the Parking Garage.
• A gift shop is also available at the Parking Garage.

When was the last time you visited the Hoover Dam? Let us know in the comments below!

Ever since the start of the Great Recession, con artists have been using refi scams to target struggling homeowners. They have been posing as government agencies, attorneys, and representatives from lending companies. These scammers prey on desperate homeowners, ready to do anything to save their homes from a foreclosure. So, you better watch out for these refi scams.

Although authorities these days are updated with the latest refi scams and shut them down as soon as possible, new ones evolve.

A lot of people who have been scammed were being proactive. This is according to Yolanda McGill, the Senior Counsel for the Fair Housing and Fair Lending Project at the Lawyer’s Committee for Civil Rights Under Law. These are several cases where homeowners are trying to look into what lies ahead like retirement, company downsizing, some wanted to do refinancing and the like.

These people are actually doing just fine, but then they thought it would make sense to refinance, get a new loan with a lower interest rate. And they end up being scammed, since they went online, heard an ad, found someone with a good offer. The con artists of today are aware that there’s huge money to be made from borrowers who are looking to take advantage of low mortgage rates, and they have certainly come up with numerous ways to do so. One common scam is pretending to be affiliated with a company that can get you qualified for government programs.

Refi Scams Use Fake Government Programs

The HARP or Home Affordable Refinance Program is a free government program that provides an opportunity for homeowners to refinance. The scammers know that such program exists, and they created a phony government program. In this scam, a third party will try to contact you via phone, email, or direct mail. Of course they will tell you that they are affiliated with, or approved by the government. They may even have their own official logo, emails, direct mails, and a website.

After the first contact, the scammer may ask you to fill out some paperwork with details of your financial and loan info. They will likely ask for a fee, in exchange for their help in qualifying you for the HARP program. The scammer will also tell you not to contact the lender, lawyer or housing counselor since he or she will handle everything. Some are even told to start making payments to the scam company instead of the lender.

How to Prevent Refi Scams from Happening to You

To prevent such kind of scam, contact your lender directly and see if you qualify for the HARP program.  Don’t ever believe the third party when they tell you that they can rush the process. According to experts, the best help is actually free. A housing counselor cannot charge you with huge fees. And fact is, you don’t have to pay anything to qualify for the HARP. If someone tells you otherwise, that is probably a scam.

And one important thing to remember is to be careful on the papers that you sign. To make sure what the contents are, ask a real estate attorney not affiliated with the company to look into the paperwork. It is also best to check the company online, read reviews, and search for complaints.

If you aren’t sure about how legit a Refi offer may be, please contact us today and we’ll be glad to give you our expert opinion.

The average fixed mortgage rate dropped again last week, according to the Primary Mortgage Market Survey® (PMMS®), providing more buying power and incentive if you are seeking to buy your home.

Decreased Home Buying Mortgages

The 30 year fixed decreased to an average 3.41% with a 0.7 point (last year’s same date comparison was at 3.90%). The 15 year fixed rate mortgage dropped, as well, down to 2.64% with a 0.7 point (last year the 15 year FRM was at 3.13%).

Adjustable rate mortgages fluctuated as well.  The 5-year Treasury-indexed hybrid adjustable averaging at 2.60% (0.5 point) went down from an average 2.62% from the previous week. The 1-year Treasury-indexed ARM increased a tenth of a percentage to 2.63% (0.4 point).

Decreased Home Buying Interest Rates

Frank Nothaft, vice president and chief economist of Freddie Mac, explained the changes and low interest rates, saying, “Mortgage rates nudged lower this week as consumer spending showed signs of weakness. Retail sales contracted for the second time in three months, falling 0.4 percent in March. In addition, the University of Michigan reported their Consumer Sentiment Index dropped 6.3 points in April to settle at 72.3, its lowest level since July. The April reading snapped a streak of three consecutive gains.”

Low interest rates make it the prime time to lock in a mortgage rate and find your home.

If you have been thinking about buying, selling or you’re interested to learn more details about the interest rates and home prices then give us a call. We’d love to talk to you about your home buying options today.

The list below outlines some traditional gifts for Mother’s Day, but if you are really adventurous, consider checking her Pinterest account for more personalized ideas. Research on what appeals to the woman in your life.

Suggested gifts for Mother’s Day

Moms everywhere are moved by personalized jewelry and lockets, memory keepers, and photos of their children. That’s not to say that a trip to the spa or a get-away wouldn’t be gratefully received. But make sure that you have a detailed backup plan for the kids, which should come along with your gift.

If a trip away from your home isn’t possible, then bring the treatments to her. You can put together a collection of pampering lotions, skin care, or makeup sets. Or, try a virtual vacation of sorts. You may even purchase a tablet for her, that’ll be exciting.

If your Mom already has one, then consider a gift card from Amazon, iTunes, or a similar service.  She may search for books she like for instant download. This will provide a chance for quick escape from life’s daily cares.

Mother’s Day Gifts to Bring a Smile To Your Mom (and Your Home):

• Thoughtful Note of Gratitude (include with a gift below for best results)
• Personalized Jewelry (lockets, engraved charms, birthstones, etc.)
• Personalized Gifts Featuring Her Children (large laughing photos, artsy representations, framed art created by the kids)
• Get-Aways (that she doesn’t have to coordinate)
• Tickets to Experience Life (theatre, gourmet cooking class, hang gliding, yoga – search sites like Groupon for ideas)
• Gift Cards (to services or shops she wants to patronize)
• E-Reader or Tablet Device (working and loaded, ready to go)
• Spa Services to a Local Favorite (manicure & pedicure, massage, wraps, etc.)
• Beautiful Flowers (everyone can appreciate a little vibrancy)
• Chocolate (but be careful not to sabotage known fitness plans)

So what’s your idea of a perfect gift on Mother’s Day? Feel free to share your thoughts, we’re always glad to hear from you.

Before hiring a landscape designer to reconstruct your home, it’s helpful to compile a list of questions. You may share images of design styles and verify license and insurance, as well. The right landscaping combines local elements and weather conditions, as well as energy efficiency.

Your outdoor landscaping can also serve as a sound or visual barrier. Many options are available from furniture placement to the planting of tall shrubs along a home’s border.

According to Better Homes and Gardens, the Top Landscaping Ideas for Your Home in 2013 Include:

• Fragrance Producing Gardens
• Variation in Color of Flowers & Greenery
• Bulb Gardens
• Vegetable & Fruit Combination Gardens
• Grocery Gardens
• Old Fashioned Looks
• Paver Designs Incorporated in Gardens
• Garden Seating
• Herb Gardens
• Butterfly Gardens
• Hanging Plant Gardens
• Texture Gardens

A lot of these gardening ideas may appeal to you but you can’t work with all of them. The best way to start is to consult with a professional landscaper. He may be able to give you additional perspective and save you from an expensive mistake.

There are many landscaping ideas that you could use for your home. But you have to work with the one that will appeal to you most. You have to pick something that is most manageable too. Don’t try complicated combinations. You won’t be able to sustain it in the long run if you’re not enjoying it. So pick out something which is both beautiful and manageable.

Are you thinking of using one of these great landscaping ideas for your home? Do you need help finding the right person to do it? We can help you with that. Contact us for recommendations or referrals from our experts.

May is National Home Remodeling Month and the National Association of Home Builders (NAHB). Remodelers are using increased seasonal awareness this year. It outlines risks that a DIY approach can bring in terms of safety, time, and hidden costs.

Reports from the U.S. Department of Housing and Urban Development and the Census Bureau show that 37 % of home remodeling projects completed in 2010-2011 were done by homeowners themselves. That only shows how much they love jazzing up their abodes.

“Remodeling can be complex and often times full of surprises, even for experts like our members,” said NAHB Remodelers Chairman Bill Shaw, GMR, GMB, CGP. “DIY projects should be rewarding and fun, but if your DIY can’t be completed in the planned price range or your safety is at risk, leave the work in the hands of professional remodelers.”

NAHB suggested a review of these DIY tips before starting on a remodelling project for your home.

Safety - If it requires licensing to complete or compromises the integrity of your structure, walk away and hire a professional. Wear proper protective gear and be especially careful when using new tools. Unfamiliarity with DIY devices may involve risk.

Cost - Review quality and warranty specifications of your purchases. Incorrect installation can result in a warranty being disputed.

Time - Contractors are required to provide timelines, progress updates, and projected finish dates. If time is important to you, your contractor should get the job done according to your schedule. If you do this by yourself, would you be able to do the same?

If you need advice on the top tips to remodel your home click here to contact us. We work with an excellent group of re-modelers who would be more than happy to hear from you.

By: Thomas Quine

House flipping today is not as easy and simple as it was just a few years ago. Before, you could purchase an old rickety property, dress it up with some fresh paint, hold on to it for a month or two and you double your money.

But if you’ve been watching the news, then you know that those happy days are over. House flipping in today’s volatile market seems riskier than getting a heart bypass operation.

People who want to engage in house flipping are cautioned to understand that the goal is to buy and sell property quickly. The aim should be on speed not on maximizing profit. Any delays will compound the risks involved in such transactions. In this type of enterprise, it is preferable to sell quickly for a small profit than try to get the most out of the transaction. The extra time spent trying to do that will delay your move into the next transaction that may be more lucrative.

Successful House Flipping Depends on Market Value

The key to success in house flipping is not only to buy cheaply, but at below market rates. You are looking for bargains so look hard and at many places. Pass on any deals that do not give you an edge on being able to ask more in a turnaround.

This task is made harder by the number of properties being bought up by institutional buyers. Such mass buys can make bargains hard to come by.

Homes that need minor touch ups to look more presentable are good selections to make. New paint and carpets can be easily completed at relatively low cost, but avoid homes that require extensive repair. Such projects are not only costly, but they are time consuming, and speed is your aim here.

Avoid Taking on House Flipping Debt

House flipping should be done on a strictly cash basis. This will reduce your risk and save you plenty in loan fees and interest. Holding a loan for just a year means you can not amortize the costs over an extended period. A $100,000 loan might cost $2,000 in points. If you flip 3 homes in a year at that rate you will have to spend $6,000 which you could have avoided by using your own money.

By selling quickly, you will increase your profit rate. Using the $100,000 figure again, assume you pay that much for a house and then sell it for a profit of $10,000. If that takes a year, that is all you will make, but if you can do that three times in a year, your profits will triple.

Do you want to learn how to maximize your earnings on your house flipping deals? Are you eyeing the market to get into the house flipping trade? Then reach out to us, we have a pool of experts who could guide you and help you every step of the way.

Its always sad to hear celebrities losing homes to foreclosure, such as the case of R&B artist R. Kelly. He experienced a huge reduction in his finances recently when his 20,000 square foot mansion was auctioned for less than a million dollars. Kelly had the home built in 1997, and a $3.5 million mortgage was owed on the residence.

R. Kelly, whose real name is Robert Sylvester Kelly, has been name one of the best-selling music artists in the U.S. by the Recording Industry Association of America (RIAA). Kelly is also referred to often as the King of R&B, and has produced 10 albums, collaborating with music greats like Jay-Z and Kanye West and was nominated for a Grammy by writing Michael Jackson’s hit single, “You Are Not Alone.”

Despite Kelly’s celebrity and the selling of more than 38.5 million records in the U.S. alone, R. Kelly’s bank claims that he has failed to pay the mortgage on his Illinois home. The bank tried to put the home into foreclosure in 2011 but Kelly was able to delay the proceedings while he attempted to sell the residence himself. His efforts weren’t successful and house was on the market for an entire year before the bank again organized efforts to foreclose on the home this year. Recently, the home was finally sold at an auction for $950,000; the new owner can now take advantage of the six bedrooms, eight bathrooms, indoor pool, theater room and private lake on the property.

Celebrities losing homes like R. Kelly can be devastating because of the huge financial loss. And there are other celebrities losing homes out there who might be wondering if R. Kelly claim this item on his taxes? Unfortunately, the answer is no if he classifies the Illinois house as his primary residence.

A foreclosure is defined as a disposition for federal income tax purposes and is viewed as a sale. Even celebrities losing homes to foreclosure is also considered a sale. Yes, they are not immune to it. Though you pay tax on the capital gain of a sale of a home, which is subject to exemption, you may not deduct the loss on a sale of a home if it is your primary residence. Different regulations apply for property losses when the property is for investment or commercial purposes.

Celebrities losing homes can still be chased by huge taxes?

The tax-related consequences of a foreclosure don’t end there. In general, for federal tax purposes, when you borrow funds and the funds are cancelled, forgiven or discharged, you have to report and pay the taxes on the cancelled amount, forgiven or discharged. However, there are some exceptions to this rule. For instance:

• Insolvency. If you’re insolvent when the debt is cancelled, some or all of the debt may not be taxable. This classifies you as insolvent if your total debts are greater than the fair market price of your total assets. Assets are defined as all your possessions, even if the items are exempt from creditors or being used as collateral.
• Bankruptcy. If your debt is discharged because of chapter 11 bankruptcy, the discharge is not taxable income. Simply filing for bankruptcy isn’t enough. Only debt that was discharged as a direct result of bankruptcy is exempt under this exception.
• Certain farm debts. If you acquired debt by opening or operating a farm and meet other criteria, your cancelled debt won’t be considered taxable income.

Things are financially difficult for everyone, even for popular artists. Celebrities losing homes right now are very unfortunate. But the good news is there’s a relief that’s possible to forego some negative tax consequences. The rules can be difficult to navigate. But, you need to make sure you’re filing the correct forms, filling out the right paperwork and meeting crucial deadlines. If you’re facing foreclosure, short sale or mortgage-related issues, talk to a local tax professional.

Whether you’re a celebrity or not – If you want to learn more on how to navigate through this difficult foreclosure process or if you’re facing foreclosure yourself, then we urge you to reach out to us and let us help you get through this trying time.