Tips on How to Sell Your Home Quickly

Even on this tough housing market, these tips can help you sell your home faster to potential buyers:

1. Price your home Right!  The current housing market is sluggish, so instead of pricing your home aggressively high, consider pricing your property no higher than the middle of the range of homes comparable to your home.

If you need to sell your home quickly, price your home among the bottom 25% of comparable homes. Why? With few buyers chasing many homes, you need to quickly get the attention of those who are serious about buying. If your home is priced too high, buyers won't even consider looking at your home. 

2. Home Staging.   Home Staging can either be done by yourself or by a professional.  A home staging professional will come in and take away some furnishings and rearrange others to make your home show better.  The goal of home staging is to create a home interior that looks brighter, bigger and more inviting to potential buyers that will ensure quick sale of the home and for the highest possible price.

The top two priorities when staging a home for a quick sale are fresh-paint and like-new cleanliness.

3. Fresh Paint. Fix any hole and cracks on the walls of your home.  Apply a fresh coat of paint to the room that needs it. Neutral colors lead to a new, clean, classic and spacious look.

4. Curb Appeal. The first thing home buyers will see when they arrive at your home is your front yard, the color of your home, the landscaping and walkways.  If your home's curb appeal makes a great first impression, everyone -- including potential home buyers -- will want to see what's inside.  Have a fresh paint on the exterior of your home; Clear the weeds, debris and pressure wash concrete, brick and pavers to give a clean appeal to your stepping areas.

5. Fix Stuff.  Fix the broken window; fix the hinge on the broken kitchen cabinet; fix the leaky faucet. If you don't have the time or skill, find a handyman to go through your home and make repairs. Also consider replacing the old roof that looks like it might leak, the antique furnace and the stained rug.  

6. Declutter and depersonalize. Pack up all your trinkets, anything that sits on the top of the counter top, table or other flat surfaces.  Take away all the things that make your home your personal sanctuary -- your family photos, religious items or kitchen memorabilia from a trip. Pack them up and put them into a storage.  Buyers want to visualize your house BEING their home. It's difficult to visualize their own style when your stuff is scattered all around the place.

7. Organize your Closet. Pack up all seasonal clothes from your closets. This will free up some closet space and your closet will appear large and spacious. Aim to remove 2/3 of your closet space. Disorganized closets tell buyers that your home doesn't have enough storage space. Aim to remove 2/3 of your clothes from your closet.

8. Hire an experienced Realtor.  He will be able to share some tips on how to price your property for quick sale and he knows what the buyers are looking for in a home.  His advice will get your property off the market in no time.  

If you need tips on how to sell your home quickly, please don't hesitate to contact me.

Changes in the Home Affordable Refinance Program

Federal Housing Finance Agency, Freddie Mac and Fannie Mae has announced a series of HARP Changes to Reach More Borrowers. The goal of this new program is to create refinancing opportunities for these borrowers, while reducing risk for Fannie Mae and Freddie Mac and bringing a measure of stability to housing markets.

The new program enhancement addresses several other key aspects of HARP including:

- Eliminating certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers;

- Removing the current 125% Loan-to-Value ceiling for fixed-rate mortgages backed by Fannie Mae and Freddie Mac;

- Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie Mae and Freddie Mac;

- Eliminating the need for a new property appraisal where there is a reliable AVM (automated valuation model) estimate provided by the Enterprises; and

- Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the Enterprises on or before May 31, 2009.

Borrowers who owe more as compared to the value of the home will be able to reduce balance owed much faster if they take advantage of today's low interest rates by shortening the term of their mortgage.

Criteria for HARP eligibility:

- The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae; 

- The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009;

- The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May 2009;

- The current loan-to-value (LTV) ratio must be greater than 80%

- The borrower must be current on the mortgage at the time of the refinance, with no late payments in the past 6 months and no more than one late payment in the past 12 months.

FHFA, Freddie Mac and Fannie Mae will be issuing a detailed guideline of the new changes in the program to the mortgage lenders and servicers by November 15.  For more information, please visit https://www.efanniemae.com/sf/mha/mharefi/pdf/refinancefaqs.pdf

Prepare Your Home for the Winter Months

The weather is turning cooler, and it's time to start preparing for winter weather.  Here are helpful tips to prepare your home for the cold weather:

Clean out the gutters and use a hose to spray water down the downspouts to clear away debris. Install leaf guards on the gutters or extensions on the downspouts to direct water away from home.

Hire a contractor to check the structure ability of the roof to hold unusual heavy weight from the accumulation of snow or water.

Weatherize. Add insulation to your walls and attic if necessary.  Consider purchasing insulated doors and storm windows to further protect your home from the cold. This will also help lower your heating bill.

Ask a gardener to trim trees if branches hang too close to the house or electrical wires, this will prevent winter injury.  Plant spring flower bulbs and lift bulbs that cannot winter over such as dahlias in areas where the ground freezes.

Buy supplies in advance.  In the event of a severe winter storm, you'll need a stock of supplies on hand such as rock salt to melt ice on walkways, sand to improve traction, snow shovels and other snow removal equipment.   Make sure that your home has sufficient heating fuel; regular fuel sources may be cut off. It's good to stock up on good supply of dry, seasoned wood for your fireplace or wood-burning stove.

Remember fire safety. Keep fire extinguishers on hand, and make sure everyone in your house knows how to use them. House fires pose an additional risk, as more people turn to alternate heating sources without taking the necessary safety precautions.

The winters can be long and sometimes harsh.  It is essential that proper preparation is taken PRIOR to a potential freeze.  If you need professional help, please click here for the contact list of my recommended experts to assist you in preparing your house for the long winter months ahead.

Investing in Multi-Family Home

At this tough economic situation, it is important to be smart on where we should invest our hard earned money on.  Many Americans invest their savings on a house they've been dreaming of living in.... but would you consider investing in a multi-family home, that not only provide a roof over your head but also give you a passive income that can last a long time?  The table below shows the average rent for a number of rooms in Anchorage.  The rental information indicated in the table can be yours when you decide to invest in a multi-family property.

	Rent /unit
Studio	$757
1 BR	$954
2 BR	$1,254
3 BR	$1,678

Note: Average Rental in Anchorage. (Source: http://www.myapartmentmap.com/apartments/ak/#data

     

Here are the advantages of investing on a multi-family property:

Interestingly, many multi-family homes are selling for the sameasking prices as single family detached homes with similar features.

It generates income! A multi-family home has several units that can generate income and bring you cash every month. Repair cost per unit is lesser compared to a one single unit that needs repairs and maintenance. No worries if you don’t have a job.

It pays its own expenses – Payment for the property’s mortgage, taxes, utilities, payroll, advertising, landscaping, and so on is not taken from your pocket.  The property can generate income that can pay for its own expenses.

It's easy to get a loan.  Investing in multi-family properties promises an easier loan approval compared to non-income producing-single family home, because lenders qualify and approve the loans based on the property's ability to repay the debt itself.

For non-owner occupants, a 1031 tax-deferred exchange can move the entire profit from the property's sale into another, larger multifamily structure. Using a different strategy, as an owner-occupant, you can sell your property after two years of living on the premises and receive the portion of the profit that's equivalent to your living unit tax-free (in a two-unit home, for example, half of the profit would be tax-exempt). With careful financing and a good track record of on-time mortgage payments, you can expand your investment into two multifamily buildings. You can then continue this pattern atperiodic intervals to constantly increase your net worth.

Now is the best time to invest in a multi-family home because the property values and mortgage interest rates are lower than ever! Furthermore, the rent income is great!

Multi-family homes are going to bring you the greatest amount ofpassive income possible because the tenants you are going to have are going to consistently be paying their rent, and they are going to do so long after the mortgage on the property is paid off. If you choose to flip a property you may be able to enjoy ten or fifteen thousand dollars in accumulated equity; however, that is all you are going to get. By choosing to rent a multi-family home you are going to have the rent checks coming in month after month. These rent checks are going to pay your mortgage for you, and once the building has been paid off, it will more or less be sheer profit for you to do with as you will.

If you want fast return on your investment, you can check out the newly updated 108 Friendly St., Anchorage multi-family home with MLS# 11-417.  It is a FANTASTIC Anchorage Fourplex investment property with great rental history in a very high demand area!  Please call me for more information.

About Weatherization Assistance Program

Weatherization Assistance Program (WAP) is a government program that enables low income families

to permanently reduce their electricity bills by making their homes more energy efficient.

Funds are used to improve the energy performance by air sealing (weatherstripping, caulking), wall and 

ceiling insulation, heating system improvements or replacement, efficiency improvements in lighting, 

hot water tank and pipe insulation and refrigerator replacements with highly efficient Energy Star rated units.  Both single-family and multi-family buildings are assisted.  

WAP serves low-income families free of charge and limits the amount of assistance to $6,500 on any single residence. Household can have average savings of more than 20% per month once the program has started.  

Households with incomes at or below 60% of state median income are eligible for assistance.  Program services are available to both homeowners and renters, with priority given to senior citizens, families with children and persons with disabilities.

Weatherization Assistance Program helps our country reduce its dependence on foreign oil and decrease the cost of energy for families in need while improving the health and safety of their homes.  

For more information on Weatherization Assistance Program, please check out http://www1.eere.energy.gov/wip/wap.html.

Energy Saving Tips This Winter

In today's economy, it is important to search on ways on how we can we can easily reduce the monthly expenses.  Winter is just around the corner and winter heating costs have been steadily increasing these past few years. You can lower your heating costs by following these simple steps:

If you're in the market for an upgrade or an update, try going green. The initial costs may be high, but you will enjoy lower electricity bill in the future.  There are companies that can install solar or wind powered systems in your home.  We just received our PFC in the mail, it will be a great idea to use it on upgrading our home into a more energy efficient living space.  If you do not have the available cash, then at least consider all other options. 

Maintain a properly insulated home. Older homes may have limited insulation, thus they may have a higher electricity costs.  Adding insulation can be relatively inexpensive and can be a real money saver, since heat rises and can easily escape trough an improperly insulated room.  Insulation can also go beyond the inside or your walls.  Insulated (thermal) curtains can also do wonders for conserving energy.  They are thicker than the regular curtains and have several layers that serve insulating process.

Check for leaks around windows and doors.  If you have older, non-insulated windows, consider replacing them with energy efficient upgrades. You can even take a tax credit for these particular improvements.  

You may also install storm doors and windows to prevent heat escaping your home.

Installing a programmable Thermostat.  Set the temperature lower during night time and start heating before you wake up.  Your home will be warm during walking hours and you'll save money off your heating bill.

Do you know that you can get rewarded by making your home energy efficient?  One example is the Home Energy Rebate Program.  In the Home Energy Rebate Program, homeowners may receive up to $10,000 for making energy efficient improvements on their home.  If you want to learn more about other Energy Programs sponsored by the government, please check http://www.ahfc.us/energy/energy.cfm.

It can really get cold during the coming months, be sure to prepare properly for winter.  Keep heavy blankets, especially wool and warm clothes.  It may be necessary to pile on the layers instead of turning up the thermostat.

Your electricity bill will definitely go higher during the winter, but if you prepare in advance, you will earn significant savings with just few simple steps. 

If you need a list of service providers that can make your home more energy efficient, please don't hesitate to call me.

Increase in Guarantee Fees

Fannie Mae and Freddie Mac, the government-sponsored enterprises that purchase mortgages from lenders in order to create mortgage-backed securities, have announced that they will be increasing their guarantee fees next year to attract more private investment in the housing market.

Guarantee fees charged by Fannie Mae and Freddie Mac are fees that meant to help cover the issuer of the loan's expenses and reduce the risk of loss or default.

The new guarantee fees will be comparable to that of private investment houses.  The new fees will be implemented to encourage the private entities to invest the in housing market.

According to Edward J. DeMarco acting Director of the FHFA (Federal Housing Finance Agency), said that "The guarantee fees" charged would be increased to lessen the companies' long-term exposure to risks.  As Freddie Mae and Freddie Mac are backed by the tax payers, he said that the proposal would result to protecting the taxpayers from losing more money.  Fannie and Freddie have so far cost the taxpayers more than $140 billion in bailout money.  

In a CNBC report, according to the President's budget plan the increase in guarantee fees would produce $28 billion savings in over ten years.

However, some experts are worried that the increase in guarantee fees may hinder the possible recovery in the housing market which has suffered from falling prices since the credit crisis of 2008.  

If you need more information about guarantee fees, please don't hesitate to call or e-mail me.