RE/MAX Innovations - It's our One Year Anniversary!

Please join me Thursday November 13

for an

OPEN HOUSE LUNCH

from 11am - 1pm

This has been a busy week for me and my office at RE/MAX Innovations!

We are welcoming Marilyn Cline, formerly of Peoples Company, to our office.  Marilyn is a great real estate agent with 3 years experience who will also be our front desk coordinator.  We are so excited to have you, Marilyn!

Congratulations to Brooke Gray, who just received her license last week and is starting her real estate career.  Brooke is an Indianola native with lots of enthusiasm and knowledge on the process of buying and selling. Visit Brooke's webstite at www.brookegray.net.

Ken and Kim Hass closed on their home in Prairie View on Monday, a new Van Dam Construction home that was my favorite plan I have seen in that neighborhood.  Ken and Kim and their two daughters have been stationed with the Air Force in Germany for the last 4 years, and it has been 6 years since they lived in the US.  They were an absolute pleasure to work with - welcome to Indianola and the US, Ken, Kim and girls!

Last of all, I cannot believe that it has been over a year since our office opened at the Wells Fargo building.  We are holding an anniversary open house luncheon from 11-1pm Thursday, November 13.  Stop by and grab a quick lunch with us and we can catch up! 

RISMEDIA, Oct. 29, 2008-With mortgage meltdowns, plummeting home prices and soaring foreclosure rates constantly in the news, it's no wonder people are wary of the housing market these days. But contrary to popular belief, things are not as dismal as they seem, according to Lawrence Yun, chief economist of the National Association of Realtors. Yun debunks 10 commonly held beliefs about the current housing market, and FrontDoor.com offers 10 related tips.

1. Peak-to-trough home price declines to date have been about 20%. Wrong. Measurements of home price declines can be skewed depending on which homes in which markets are being measured. For instance, the Case-Shiller Index, which indicates that home prices are down 20%, is heavily skewed towards homes with subprime loans and other distressed home sales. These troubled homes have experienced a steeper decline than home prices in general, says Yun, adding that both government data based on loans backed by Fannie Mae and Freddie Mac and data from the National Association of Realtors suggest much more modest price declines. TIP: If you're selling your home, the best thing to do is price your home right.

2. The much smaller number of new homes now under construction indicates the dismal outlook for the housing market. Wrong. The inventory of homes on the market is very high, so the last thing we need now is more new homes being built. Home builders have cut back sharply on production, which will help lower inventories and stabilize prices. The builders have done exactly what market forces are dictating under current conditions, Yun says. TIP: With many new homes completed but not sold, you can find great opportunities.

3. Even when the housing market recovers, home price growth will be only 4 to 6% per year — much less than historical average returns for the stock market. Most buyers put less than 20% of their own money into a home purchase; this borrowing power can translate to a greater rate of return. This is how Yun explains it: Home price appreciation historically has been about 1 to 2 percentage points higher than consumer price inflation, which translates into about 4 to 6% per year. But this growth rate cannot be viewed as a rate of return like the stock market. The reason is that most people do not buy a home for all cash, instead making a cash down payment and borrowing the rest. The leverage this borrowing creates can magnify returns — and losses. If price growth returns to historic norm, the price growth of 4% can easily turn into 20 to 30% rate of return if the home buyer makes a down payment of 10 or 20%. TIP: Get the fundamentals right when investing in real estate.

4. Impending baby boomer retirements and moves to small homes will cause a glut of homes on the market. Wrong. The first edge of the baby boomers has reached 60 years of age and the massive bulk of that generation will soon go into retirement, but far from trading down, many of these older homeowners are keeping their homes or moving to ones of comparable size. And even if more boomers do sell their larger homes in the years ahead, Yun points out, the rapidly growing U.S. population should absorb the inventory of existing homes on the market. TIP: Active seniors can find a retirement community that caters to their needs and interests.

5. The federal government takeover of secondary mortgage companies Fannie Mae and Freddie Mac is a bailout that will cost taxpayers bundles. Too soon to tell, says Yun. It's conceivable that taxpayers may have to cover some losses. It's also possible that the government takeover will result in no loss of taxpayer dollars. Even if taxpayer funds are used, the bailout would be preferable to the global economic problems that would have occurred if Fannie and Freddie had gone belly up. TIP: Uncle Sam is “bailing out” homeowners facing foreclosure. Find out more about the Hope for Homeowners plan.

6. The Federal Reserve controls mortgage rates. Wrong. Yun explains: The Fed's activities influence mortgage rates but don't directly control them. What the Fed sets is a very short-term interest rate called the Federal Funds Rate. Mortgage rates are determined by global savings as well as credit spreads and inflationary pressures. Over the past two years, the Fed has raised the Fed Funds Rate to 5.5%, and then cut it deeply to around 2%. All the while, the 30-year mortgage rate has averaged in the 6 to 6.5% range. TIP: Today's rates don't look bad compared to the 10% we saw in the early '90s and 17% in the '80s.

7. It's the wrong time to buy. Wrong. All real estate is local. For those who are financially and mentally ready to buy, there has never been a better time to be a buyer in many markets. An abundant selection of homes and historically low interest rates give buyers an edge over sellers. The recently passed $7,500 federal tax credit for first-time home buyers creates an added incentive. For someone with a long-time horizon, Yun says, there is very little worry about home values since homes have historically provided a solid foundation for wealth accumulation. TIP: Compare the pros and cons of renting vs. buying to see what makes sense for you.

8. It's the right time for everyone to buy. No. All real estate is local, and everyone is unique. Someone who is not emotionally or financially ready should not be forced or induced to join the rank of homeowners, even when a market presents good buying opportunities. Potential homeowners clearly need to understand that the decision to move up to ownership requires sacrifices, like saving up for down payment and elevating their credit scores. Homeowners who lose their home to foreclosure serve no one's interest, Yun adds. TIP: Take a good hard look at your financial status and create a homeowner's budget to see if you're ready to buy a home.

9. It's a terrible time to sell. Wrong. In markets where home sales are picking up strongly, a seller can easily get an offer if the property is priced correctly. Also, Yun says, for those looking to trade-up, selling low on an existing home is more than offset by buying the new move-up home at a lower price. When the market recovers, home price appreciation on the traded-up home will bring bigger bang for the buck. TIP: Homebuyers want bargains in this market. If you price your home much lower than your competition, you might end up with a bidding war.

10. With the advent of the Internet, more and more homes are being sold by owners (FSBOs), and real estate practitioners are becoming obsolete. Nope. According to Yun, the share of home sellers who choose to go it alone when selling their home has actually decreased from about 20% in the late 1980s to about 12% today. Even after these sellers successfully complete a transaction, only 4 in 10 say they would sell their next home without the assistance of a real estate professional. TIP: You don't have to sign a listing contract to talk to a Realtor. Ask family and friends for referrals and interview a few. You might even get some free advice.

Brian Swanson, a Home Mortgage Consultant from Wells Fargo in Indianola, had some great information that he passed along today:

Changes in Attitudes, says it all in this market we are in currently!  As we have literally changed underwriting guidelines almost 180 degrees from approximately 1 year ago.  We have went from underwriting files with minimal documentation for income and assets to 2 year full tax returns, 2 months bank statements, 401K statements and proof of any and all assets we have available.

We have flip flopped from underwriting 80% conventional guidelines (easy files) and 20% Government files to 80% Government files and 20% FHA files.  This is why we are experiencing a little longer turn times in Underwriting. Extra underwriters have been added to staff in order to keep the flow at an acceptable pace. 

In lieu of the market conditions and the trouble some of our buyers have to move their current homes, I wanted to get some information out to you as I consider you all to be my real estate partners.  Here are the most recent changes to departure residences: 

• If the property the customer is selling will be closed prior to our closing on the new home, all things are standard.
• If the property is to be retained as a second home –
• OPTION 1 - If the customer has 30% equity in the home (may need to be documented by a separate appraisal) Both the current and new mortgage PITI payments must be used in the qualification ratios AND have at least 2 months PITI reserves for both properties. 
• OPTION 2 - If the customer does not have at least 30% equity in the property, They must qualify with both PITI payments AND have at a minimum of 6 months PITI payment reserves on both properties.
• If the property is to be retained as an investment property.
• OPTION 1 –  The property has at least a 30% equity in the home.  75% of the rental income may be used to offset the mortgage payment for qualifying for the new home.  We will need to document the lease agreement and obtain proof that a security deposit was received from the tenant and deposited into the borrower's account.
• OPTION 2 – The property does not have 30% equity.  No rental income may be used to offset the payments of the both the existing and new PITI payments.  We will need to document 6 months reserves for both properties PITI payments.

Debra Patterson from Bankers Trust sent out some great tips on what to do to preserve your credit, even when times are tough:

Utility bills – You may have noticed that utility bills, such as phone, gas and water are not listed on your credit report. Since they are not listed on your credit report, they are not factored into your FICO score, right?  Maybe, as long as they are paid as agreed, they won't have any impact on your score.  However, if you skip utility payments, the utility companies may submit these unpaid accounts to collection agencies, which can report them to the credit bureaus where they will be considered negatively by your FICO score. The take-away here – do not neglect these bills just because they are not listed on your credit report…….they may still damage your FICO score if not paid as agreed.

Credit cards – There are many different strategies for managing your credit cards when you cannot afford to pay off your balances each month.  Here are two things you should do to prevent your FICO score from tumbling:

1.     Pay at least the minimums on all of your cards.

2.     Don't let any account go so delinquent that the account gets turned over to a collection agency or the lender takes you to small claims court.  The lender could obtain a "judgment" against you, which can happen when an account is "charged-off" as a loss after becoming more than four payments late.  Paying the minimums will keep your accounts in good standing even if you are not devoting much towards your balances.  Hopefully, when you are more financially stable, you can pay more than the minimums and work down the balances.  Making sure a debt doesn't become a judgment or get submitted to a collection agency is very important.  Keep this in mind – you can always get a delinquent account back in good standing by getting caught up with your payments, but once it is charged-off as a loss you probably cannot salvage that account.  A charge-off, judgment or collection on your credit report is something you definitely want to avoid.

Non-credit obligations – Like utility bills, you may have other obligations that don't show up on your credit report in which you need to stay current.  For example, if you owe your mechanic payment for work he did on your car, do not ignore his invoices just because he might not report delinquent customers to the credit bureaus.  If he decides to take you to small claims court and the judge rules in his favor, a judgment for this debt can be added to your credit report.  Just the presence of this judgment can hurt your FICO score and continue to do so even after it is paid. The take-away here – don't ignore your non-credit obligations. Instead, call your mechanic or person you owe money to and try to work something out. You'll probably feel better that you're not ignoring your mechanic and he'll feel that you're trying to make good – even if it may take longer to get his full payment.

While there are many considerations when managing your credit when money is tight, keeping these things in mind can help maintain a healthy FICO score.  A good FICO score may help preserve your credit options when you're in a better position to take advantage of them. 

                        Information provided by:             DEBRA PATTERSON, 554-7322

                                                                        Bankers Trust

Pricing your home in today's real estate market is no simple thing.  I work with my sellers to look at what has happened in recent months and where the home will be positioned in the market compared to the competition.  Here are some additional considerations that I think are helpful to understand what kind of factors are looked at as you get ready to go on the market and determine your asking price:

Solving the Home Sale Pricing Puzzle - 8 Considerations for Sellers

RISMEDIA, Most sellers have an emotional connection to their home and feel it deserves top dollar when being sold. Everyone naturally wants to get the most money for his or her product, but “sellers must not be hasty with this all-important decision,” cautions real estate expert Robert Jenson, founder and CEO of The Jenson Group. “Indeed, the most common mistake that causes sellers to get less than they hope for is listing the sale price too high.”

Jenson notes, “Listings reach the greatest proportion of potential buyers within the initial days and weeks after hitting the market. If a property is overpriced early on, it will be dismissed - or outright missed - by prospective buyers and may result in price reductions that will reflect poorly on the listing. Overpriced properties languish on the market, and most end up selling at a lower price than would have been realized had it been priced properly in the first place.”

To help would-be sellers foster maximum profits with their real estate transaction, Jenson offers these insights on the various elements that must be considered when establishing a fair, competitive and marketable sale price for a home:

1. Square footage: Total square footage is an important consideration when establishing a home's sale price, but this is usually just a starting point for buyers who will use it to narrow down the field, but make an actual purchase decision based on many other factors. There are some general rules of thumb to know when considering a home's price per square foot, such as smaller homes generally get a higher price/foot than large homes, and single stories will sell for a higher price/foot than a two story.

2. Location within community: Homes that back up to a busy street get, on average, 10-20% less than homes elsewhere in a neighborhood. Anticipate this type of obstacle and factor it into the original sale price to avoid inevitable price reductions down the road, which reflect poorly on the listing and will likely cause it to sell at a lower price than would have been realized had it been priced properly at the onset. Quiet cul-de sacs, golf or water frontage, lots that offer privacy are value adds that can certainly justify a higher sale price than other homes in a community - or be leveraged as an advantage against competing listings.

3. Views…or lack thereof: Whether it is the ocean, a downtown skyline, the mountains, water or some other desirable landscape, buyers are willing to pay a premium for views and a home should be priced accordingly. Just be realistic. A view that can only be had by standing on the counter from the second story looking out the window to the left simply doesn't count, and it's inadvisable to dupe a prospective buyer by adding this to the listing's MLS description.

4. Upgrades and features: It's a simple formula: upgrades = sold. For a home to sell quickly and for the price desired, it must be “finished” with as many structural and interior design upgrades as possible…and nothing's too small to leverage in establishing a home's price point. From crown molding to faux paining to door handles and cabinet handles/knobs with modern finishes, to more obvious upgrades such as appliances, window, counter, cabinet and floor treatments, to swimming pools and surround sound wiring…any functional or beautification enhancement to a home are considerations in establishing its true value and strategic sale price.

5. Community amenities: Guard-gated communities or those with amenities such as a clubhouse, swimming pool and/or fitness center are also elements that often raise a home's price per square foot. When pricing a home without these benefits, know whether you are competing against other homes that do offer such value adds so that you can price your home as aggressively and competitively as possible.

6. Comparable sales: Price your home referencing sold comparables -price per square footage of other homes that have already sold in your community - up to 3-months old maximum, as looking beyond 3-months is simply not a realistic portrayal of current market conditions and may steer you in a wrong direction. It's also as important to compare your listing to active competing listings - homes currently for sale, which is the best tool for honing an effective pricing strategy - particularly for highly motivated sellers.

7. Professional appraisal: Sellers often frown on the idea of paying for an appraisal before there's even an offer on the table, but doing so is actually one of the most important things a seller can do in pricing a home relative to current market conditions. Want to sell the home quickly? Price it at or below the appraised value as buyers are educated, are shopping deals, and will recognize your fair price and be more apt to pay it with less haggling.

8. Current mortgage conditions: The current mortgage market has tightened its proverbial belt and many lenders now require higher credit scores coupled with higher down payments, which can cash strap a buyer who will most definitely be holding out for the best deal possible. Every seller naturally wants to get the most money for his or her product, but a savvy seller will understand the mortgage industry's impact on the buyer and will price accordingly.

One question that I often get from new buyers or homeowners trying to figure out their best stategy in today's real estate market is how to analyze the financial news and how it translates into their life.  Here is a good article explaining how the Fed's moves, in response to our crazy financial markets, can affect homeowners or buyers in different situations.  It is often a mistaken assumption that the Feds rate changes directly changes mortgage rates:  this article explains that a little as well.

RISMEDIA, Oct. 13, 2008-(Bankrate.com)-When the Federal Reserve meets, we all have questions: What does it mean to me? Will my mortgage rate go up or down? Is this a good time to refinance? Bankrate offers help. We've looked at five categories-mortgages, home equity loans, auto loans, credit cards and certificates of deposit-to determine if the Fed's moves made you a winner or a loser. Here's a look at mortgages:

Winner: Homeowners with adjustable-rate mortgages

The Federal Reserve's half-point emergency rate cut may not have any affect on mortgage holders. Changes in the federal funds rate do not directly influence the direction of mortgage rates.

However, Fed rate cuts may have more indirect impacts on some mortgage rates, particularly those associated with adjustable-rate mortgages.

Many ARMs are closely pegged to the London Interbank Offered Rate, more commonly known as LIBOR. When the Fed cuts the federal funds rate, LIBOR rates usually decline correspondingly.

During times of financial stress-such as we are experiencing now-this relationship often breaks down, and the spread between the federal funds rate and LIBOR actually tends to widen.

If that trend reverses-and LIBOR rates drop back closer to the federal funds rate-the Fed's latest rate cut would be a boon to many homeowners with ARMs. Homeowners with these mortgages could expect to see their monthly mortgage payment decline the next time it resets.

Loser: Consumers looking for instant discounts on fixed-rate mortgages

Cuts in the federal funds rate do not directly impact fixed-rate mortgages. So if you're shopping for a fixed-rate mortgage, don't expect the Federal Reserve's surprise rate cut to send mortgage rates lower.

They may fall. Then again, they may rise.

Take action

The Federal Reserve's emergency rate cut will not directly impact mortgage rates. Fed actions change the federal funds rate, which is not directly correlated to mortgage rates.

As a result, consumers should not make decisions about their mortgages based on the hope that the Fed's latest emergency rate cut will send mortgage costs plummeting. Mortgage rates often rise after a Fed rate cut. But they could fall just as easily.

For more information, visit www.bankrate.com.

Today is my youngest son Ethan's 2nd birthday.  It is amazing how quickly they grow up!  He is my little sweetheart;  definately attached to his "Mama" and so adorable, and I am not just saying that because he is my own baby.

Happy Birthday, Ethan!!!

I would like to welcome our newest agent, Stephanie Harrington, to the RE/MAX Innovations office!  Stephanie is a resort and lake property specialist, as well as a contractor for Deer Valley Log Homes.  With the growth around the Lake Rathbun area, we are so excited to have her on our team!

I will be out of the office September 16-23 when my family goes to Walt Disney World in Orlando, Florida.

My two oldest sons, Seb and Nate, are in the Year Round Education program at Irving Elementary, and this is their Fall break.  This is our last year of Fall break, as next year Seb starts Middle School, so we thought this would be a good opportunity to take a special trip.

I may be out the rest of the week after my return...I will need a vacation after this type of vacation!!!

One thing I have heard about more this year than any other is the topic of RADON.  Apparently Iowa is one of the highest rated radon areas, so it might not be a bad idea to do your homework and test your home:

From Consumer Reports, here are some steps to making your home radon-free:

- Measurement. The first thing to know is that radon is measured in picocuries per liter (PCi/L). The national average indoor level is 1.3. Anything above 2, the EPA suggests remediation. Above 4 is the recommended level to take action.

- Figure out your risk. While most states have areas that are higher risk than others, radon levels vary from home to home. The only way to determine radon levels in your house, for sure, is to test.

- Luckily, radon test kits are fairly accurate and not that expensive. Go with a long-term kit for better accuracy. These kits take sampling levels for 90 days or more and will give you a better reading on average radon levels than a short-term kit. A long-term kit costs about $40. If you do need faster results, one accurate short-term kit to use is the RTCA charcoal canister. It costs $20. But its results should still be confirmed with a long-term kit just to be on the safe side.

- If you discover radon, call in the pros. A radon-removal kit can cut levels to below 2 PCi/L. They run from $800 up to $2,500. For an average house, the cost is about $1,200. Check with the EPA to find a trained pro in your area at www.epa.gov/radon.

There has been a lot of buzz recently about the new Housing Tax Credit.  Thought this article gave some good info on the pros and cons:

How the Housing Tax Credit Proves Good, Bad News

RISMEDIA, August 25, 2008-(MCT)-The housing recovery law enacted late last month included good news in the temporary $7,500 tax credit for first-time home buyers, but it also leveled a “double whammy” for some markets, a mortgage consultant said.

That's from the buyer's side. On the seller's side in the meantime, houses priced right still sell quickly, a Realtor said.

For current homeowners, while the new law directs almost $300 billion to a new federal program that could help troubled homeowners refinance their mortgages into more sustainable loans, that program comes with restrictions that could bar many in trouble from using it, as well as costs to both lenders and homeowners that could drive them away from it.

Mixed news for buyers

“These programs could be used not just by first-time home buyers, but by anyone who needed assistance and are very popular and useful programs. I estimate that this program helps 20 percent of all first-time home buyers in our market,” said Scott Senner of First Commercial Bank in Oklahoma City.

The bad news? Certain down-payment assistance programs will no longer be available after Oct. 1.

The double-whammy?

The law also raises the mandatory down payment on Federal Housing Administration-backed loans from 3 percent to 3.5 percent.

In most markets, Senner says. However, in “Oklahoma City home prices are averaging somewhere around $145,000, which means that a borrower will need to come up with $5,000 (plus closing costs) to buy a home. For a first-time home buyer, that is a lot of money. As a matter of fact, for most people that is a lot of money,” Senner says.

Good news for sellers

“If you price your house just a little bit below market value, it'll sell quickly,” said Mitchell, a sales associate with Real Estate 2000 in Oklahoma City.

But, she said, many sellers, perhaps remembering the heady days of multiple offers and bidding wars during the 2002-2005 housing boom, won't budge, or budge far, from their first asking price.

Even some people facing foreclosure hold onto the hope that they can get top price for their home-enough to pay off their loan, real estate agent fees and everything else-until too late and they tumble into foreclosure and lose their home, Mitchell said.

Some lose more than they realize, especially young people who were first-time buyers a few years ago and who are now seeing that what follows a housing boom isn't pretty, even if it's not a bust.

“They think, ‘Hey, I'll just get a foreclosure and be able to go and get my credit straightened out and buy another house,” she said.

Maybe, but not anytime soon.

“They don't realize,” she said, that a foreclosure is about as bad as a bankruptcy, taking seven to 10 years to clear from one's credit record.

...because Football and Fall Soccer have begun.  Sebastian, my oldest son who just turned 11, plays for the Colts in the Indianola Youth Football League.  4th, 5th, and 6th Graders participate in this league, with teams from Indianola, Norwalk, Winterset, and Perry.  He really enjoys it, but I can't believe how old he looks in his uniform!

http://indianolayouthfootball.com/index.html

Nate is participating in Indianola Soccer Tribe, and this is his first season in the U10 league, so he will play kids from other communities.  He loves to run, so can't wait to get out on the soccer field.

www.indianolasoccer.com

In today's market, condition means everything.  Here are some great tips that I found from RISMedia:

RISMEDIA, Feb. 1, 2008–It's no wonder home staging has gotten a lot of attention lately. Expand interior appeal to a larger buyer group and you may sell the home sooner and for more money.

Companies that track home staging results report that a staged home can potentially reduce selling time by half and improve sales prices by 5% -7%.

In fact a national survey of 2000 real estate agents conducted by HomeGain in 2003 found that “…moderately priced home improvements, ranging from $80-$2,800 made in preparation for sale actually yield the highest returns when a house is sold.”

So, if broader interior appeal translates to increased economic value, an improved exterior should, too. Because most buyers form opinions ‘at the curb' - before they even get out of the car - a home's exterior is a powerful, pre-emptive stage-setter, keeping prospects' interest intact.

Build Appeal, Build Value

Strategic home preparation is a fundamental consideration in any home marketing tool kit, whether it's an improved landscape design or basic upkeep and maintenance. Major elements such as landscaping; structural items and architectural features should appear cohesive and well-kept. Visual appeal is sometimes subjective, but balanced and consistent features generally create a pleasing composition.

The good news is-you don't need a landscape designer to tell you that the foundation plantings need updating. or the front walk is undefined or unwelcoming. And improving selected features will probably cost less than you'd expect. In 2002, the American Nursery & Landscape Association reported that the average amount spent on landscape installation / construction was $3,502. Several sources indicate that this investment cost recovery is high. According to Money Magazine, February, 2000, “A nicely landscaped property can allow owners to recoup 100-200% of their investment at selling time.” Larger landscaping design projects can offer more value but always keep investment cost in line with property values.

Landscaping - An Underused Strategy?

The HomeGain survey also reported that a simple improvement such as ‘landscape & trim' with a typical cost of $432-$506 can bring an increase in sale price from $1,594 - $1,839 - a 266% average return.

Other sources concur. According to the Gallup Organization, a landscaping project could add anywhere from 7%-15% to a home's value. A Clemson University study reports slightly more conservative results: homes with “excellent” landscaping can expect a sale price about 6%-7% higher than one with only “good” landscaping.

Buyer appreciation of patios, decks and inviting outdoor living spaces further heighten sales appeal and add real economic value when it's time to sell. But if expectations are to recover all costs of elaborate projects - sellers beware - because many buyers will not consider a highly personalized project desirable.

At The Front Door

The front entryway is a particularly important area and offers great opportunity to make a statement. It doesn't matter how tiny the area is - there are lots of tasteful touches that will make an impact without costing much. A simple welcome mat, a wreath on the door, a hanging flower arrangement may be enough. A brass door knocker and kick-plate, and a potted tree on the steps can class up the front door area. Benches, art or antique objects fitting in with the overall house style can add interest and a welcoming appearance.

Consider color in the front entrance, too-could door trim or the front door itself use a color upgrade? Changing front door color is a quick and inexpensive fix to improve curb appeal. Painted a complimentary color to house and trim, doors can add dimension and style instead of receding or even detracting from overall appeal. House numbers, lighting and mailboxes should also be included in design appearance.

“Hardscaping” elements leading to the front door or the front porch itself are other opportunities to improve features that may need a lift. Selection of hardscape materials themselves (i.e., slate, brick, stone, etc.) are style choices that should relate to and complement other property elements.

Driveway, front porches and walkways are items often overlooked that when updated, can make a huge impact. One of the easiest projects to do is create a defined walkway if there is none. This not only adds visual value, but is practical. A walk way should efficiently direct users to the entry and look attractive while doing it; no overgrown grass, shrubs, loose slates or out-of-place bricks on the way to the front door.

The Value of a Tree

A home's curb appeal has the power to set the stage; it may keep prospects away or draw them in, easily affecting a property's sale price. Appeal is highly individualistic, but a well-designed and maintained “curbscape” needn't be cost-prohibitive to improve the home's sale-ability. If sellers anticipate a curb appeal project for the purpose of resale, remind them that design moderation is best for investment recovery.

For those planning to sell soon, now is the time to consider curb appeal improvements. Even for those not intending to sell right away, consider the value of a tree; based on its maturity it can have an appraisal value of between $1000 to $10,000, according to the Council of Tree and Landscape Appraisers.

Peg Guinta, CRP, is Projects Director for RIS Consulting Group. For more information, e-mail peg@rismedia.com.

Brian Swanson from Wells Fargo Home Mortgage passed along information on this bill, which was just passed this week:

Effective Jan. 1, 2009, higher permanent loan limits for conventional conforming and FHA; limits to increase to a maximum amount or ceiling of $625,500, depending on the formula for each metropolitan area.  Note: The temporary limits established in March will expire on Dec. 31, 2008.

·         FHA floor limits will remain the same at $271,050.

·         The VA guaranty will increase.

·         Minimum cash investment for FHA loans will increase to 3.5%.

·         A moratorium on risk-based pricing for FHA loans, effective Oct. 1, 2008, as indicated in the Act.

·         Elimination of Seller-funded Down Payment Assistance Programs with FHA loans, effective Oct. 1, 2008, as indicated in the Act.

·         Condo processing for FHA loans will be streamlined (timeline TBD).

·         FHA reverse mortgages (HECM): changes, among others, include higher loan limits, availability with purchase transactions and a modification to the origination fee.

I am so excited to have a RE/MAX balloon at this year's National Balloon Classic in Indianola, held from July 25 - August 2.  It is one of the many summer events that makes me really enjoy having a family in Indianola - not everyone gets to have a balloon in their backyard on a regular basis, and the kids go crazy!

I have several general admission tickets available, and would love to share them!  If you need a set, just give me a call or send me an email!

With the way gas prices are right now, we all could use some good advice.  When the bill to fill my truck started hovering OVER $100, I decided maybe I should start paying a little more attention to watching how I use my miles.  Thought this article might have some good tips:

RISMEDIA, July 19, 2008-The summer vacation season is getting in full swing and fuel prices are rising faster than the temperature. But drivers can stretch each tank of gas by roughly 10% with simple driving tips and smart car care solutions from 3M Car Care.

“Over the life of a car, poor fuel efficiency and excessive fuel use can lead to hundreds, if not thousands of dollars in added expense,” said John Marmar, U.S. business manager, 3M Car Care products. “Properly maintaining the vehicle and watching your driving style are two of the best ways to maximize fuel efficiency and reduce long term expenses.”

3M Car Care offers six tips to maximize your car's fuel performance.

1. Check tire pressure - Improperly inflated tires can greatly reduce fuel economy, so make sure tires are inflated to the manufacturer's recommended pressure listed on the inside of the driver's side door. The correct tire pressure will also provide a safer ride and help reduce tire wear.

2. Let your engine breathe - Replacing a dirty, clogged air filter will go a long way in improving fuel efficiency. According to the federal government, a car's gas mileage could improve by as much as 10% with a clean air filter. In addition to the fuel savings, the new filter will help protect the engine.

3. Keep the fuel system clean - Carbon and resin buildup in a car's fuel system reduces fuel efficiency. You can clean the entire fuel system with the new 3M DIY Fuel System Tune Up Kit. With just one tool and 45 minutes, it cleans the engine, fuel injectors, intake manifold, intake valves, combustion chambers and throttle plate with the same trusted 3M products used by automotive professionals. Keeping the fuel system clean helps maximize the engine's performance, extend the life of the engine and improve mileage.

4. Keep it cool inside - Summer heat requires air conditioning, but AC can account for up to 5% of a car's fuel consumption. Using 3M Crystalline Automotive Window Film can keep the sun and heat at bay - making the vehicle cooler and reducing the demand on a vehicle's air conditioning system. Even better, 3M Crystalline Automotive Window Films offer many of the benefits of darker window tints, with the option of being virtually clear in color.

5. Take it easy and slow down - Driving a car at a high speed, “jackrabbit starts” and aggressive driving in traffic can greatly reduce fuel efficiency. The U.S. Department of Energy says “As a rule of thumb, you can assume that each 5 mph you drive over 60 mph is like paying an additional $0.20 per gallon for gas.” And every time you “hit the gas” you get closer to the next refill.

6. Put your car on a diet - Remove any unnecessary, heavy objects in the vehicle. An extra 100 pounds can reduce fuel efficiency by as much as 2%. Even removing golf clubs can help lighten the load.

For more information, visit www.3Mcarcare.com.

Please join me for my OPEN HOUSE at 3941 29th Street Sunday, July 13 from 2:30 - 4:30pm.

This great ranch has 3 BRs and 2Baths on the main level, a finished basement, tons of storage, and an inground pool with beautiful perennial landscaping!

With a new price of $139,900, it is a great find!

Here are some tips that I found on RE/MAX Mainstreet, the meetingplace of information for RE/MAX Associates, from agents around the country on what adds value when selling your home:

From Max Perryman (ABR, ABRM, CRB, CRS), of RE/MAX House of Brokers, Springfield, Mo.:
Cleanliness is number one! Nothing is more important, even if the home is older, outdated and maintenance has been deferred - it must be clean! It must look clean and smell clean. (It's often harder to get buyers interested in a home that smells bad - smoke, pets, and teenage boys - than one that looks bad.) Most sellers are reluctant to spend money on improvements to a home they are about to sell. If they lived with a badly worn carpet, they aren't likely to replace it for someone else. However, they must fix those items that will be viewed as potentially bigger problems: for example, a stained ceiling may mean a major problem with the roof.

From Tupper Briggs (CRB, CRS, SRES), of RE/MAX Alliance Evergreen in Evergreen, Colo.:
Generally, we look at how the market is probably going to respond to the home and then ask ourselves which projects would yield at least $2 in a higher selling price for each $1 spent. This helps us to prioritize in our own minds, and it helps us justify the projects to our clients. Having a home clean and having everything working (doors opening smoothly, light switches actually turning lights on, stairway handrails secure, etc.) are the most important and least costly things our clients can do to enhance their homes' presentation. After that, we may suggest more expensive projects - but don't make these recommendations lightly.

From David Indermill, of RE/MAX Coastal Properties in San Diego, Calif.:
There are many factors to consider when advising sellers about improvements. The biggest concern is whether or not the sellers can recoup their expenses. If the seller decides to do improvements, I recommend only certain things. Most important are improvements that will enhance the curb appeal. Spend the extra money for a nice lawn and landscaping. Be sure to use neutral colors for carpets. Sellers should paint the interior and exterior if need be - also sticking to neutral colors. Make it look like a model home as much as possible and also very homey. The home should also be deep cleaned by a cleaning company.

From Barbara Hibnick, of RE/MAX Experts in Buffalo Grove, Ill.:
I always tell my sellers that the home should look as close to a model home as possible. I suggest they paint rooms that need it - usually a soft white shade. Clean all carpet and deodorize. Recaulking can improve the look of a bathroom enormously, and spending about $260 to have a bathtub repainted is important if it is a really distracting color. Look at the home from across the street and decide how it looks as a homebuyer looking at its curb appeal. Trimming bushes and shrubs is a good idea around any driveways, walkways, or decks. A professional cleaning crew is an incredible return on the dollars spent. And most importantly, declutter!

From Wayne "Shorty" Short (ABR, CRP, CRS), of RE/MAX Realty Professionals in Wichita, Kan.:
I tell sellers that in the first 18 seconds that a buyer drives up to, and walks into, the house, they have made up their mind whether or not the home is a "keeper" or not. They will either really look it over, or they will walk through hurriedly and move on to the next one. I explain to all my sellers how they live in the home and the condition in which they sell it are two different things. I will not list the home until it is in its best "SHOW" condition. You would be surprised how many of my homes get new carpet and paint.

From Jeff Bowers (ABR, CRS), of RE/MAX Professional Realty in Charleston, S.C.:
The kitchen is often the most important room in the house. A major overhaul usually won't make sense, but sellers should do all they can to make the kitchen look its best. Painting is an easy, inexpensive way to revive any room - but be sure to stick to neutral colors. If your countertop tile is old, grungy or outdated, think about some new tile. Get rid of old stainless steel faucets and update with a stylish replacement. Suggest replacing old knobs and pulls with new hardware. Get rid of the clutter, make sure blinds are open and that the room is well-lit - and be sure the kitchen is odor-free (other than the smell of cookies, of course).

Great things to consider!  I offer services of walking through the home with my sellers and pointing out changes that can maximize appearance and marketablility.  I also have access to a great home staging service :  Decorating with Panache (971-5169).  Peggy will stage homes that lack decor or pizazz to really enhance the home.

A nice article that I found on RE/ MAX Mainstreet that I thought had some great info on kitchens:

Cabinets Unhinged
By Marni Jameson

If I had to do it over (that line could open half my columns), I'd rethink my cabinet hardware. Until this past week, I hadn't given this hardware much thought. I liked my kitchen cabinets, which are only four years old. The drawers glide smoothly like Michelle Kwan, and the door hinges feel sturdy as firemen. But recently two events conspired to change my affections.

One, I visited my friend's new home, which she and her husband spent three years designing and building. A kitchen diva, Laurie cooks and entertains like an Oscar-party caterer, so I knew her kitchen would be, err, top drawer (sorry). Two, I received a preview of The New Yankee Workshop's nine-week kitchen makeover special, where the plaid-shirted Norm Abram, that carpenter who can build a log cabin out of an abandoned beaver dam, outfits a tired old kitchen with smart new cabinetry. Suddenly, my hardware seemed out of date, second rate and wholly inadequate, the way parents of college graduates feel.

When I get to Laurie's house, she's cooking dinner for her 16-year-old son and 24 of his friends. I pitch in to assemble five pans of vegetarian lasagna, two vats of Caesar salad, and three trays of garlic bread. As she dredges eggplant and stirs a gallon pot of bichamel (a word that in my recipe book means turn the page or order pizza), I snoop.

Her kitchen is enormous, but my obsession isn't with size, but with drawers. I pull one open, swoosh. It's fastidiously organized with compartments like a tackle box. I look it over.

"Where is it?" I ask.

"Where's what?" She must wonder why my head is under her drawer.

"The hardware." There's no drawer orthodontia cluttering the sides, waiting to catch crumbs and grease.

She shrugs. "Does the lasagna need more cheese?"

Then I meet the invisible hand. With a tap, the drawer slides to an inch of closing, then stops as if it hit a cotton ball. Just as I'm ready to push it again, a vacuum-like force sucks the drawer silently, firmly shut. I scream and jump back.

I holler to Laurie as if I'm the one who's discovered it: "Watch this!" I open a drawer and shut it, harder. It slows to a controlled stop, then swoosh, sucks closed. I need to tie a strap under my jaw to keep it from falling in the lasagna. "How does it know?"

"Uhh, when you're done, could you toss salad?"

When dinner's ready, the teenagers come through like locusts. Once they've gone, and we've cleaned up, Laurie offers coffee. "What kind do you want?" she asks.

"Whatever you're having."

"No, seriously, you can have whatever you want." She shows me her built-in Miele espresso machine. The appliance has cartridge slots for five kinds of coffee, ranging in octane levels from hair-on-your-chest strong to why-bother decaf. Pick your strength, and it brews espresso, latte or drip by the cup.

I shake my head. "Is this Jane Jetson's kitchen or yours?"

Laurie slides open a drawer built under the coffee maker. In it are not just mugs, warm mugs, because this isn't just a drawer; it's a mug warming drawer.

The longer I stay, the more unfaithful I feel toward my own comparatively modest kitchen. I was falling in love. That's the inevitable risk of home improvement. However up to date you make your kitchen, advancing technology sits on the verge making it as outdated as the wood-burning stove. Still, knowing that, if I had to do it over, I'd rethink the hardware, and I'd add that warming drawer.

I became even more smitten with high-tech kitchen gadgetry when I returned home and previewed The New Yankee Workshop kitchen series, airing this month and next on PBS. After watching it, I called Abram to uncover a few more secrets and trends:

• Design with your stuff in mind. Kitchen designers use several methods to customize kitchens. Using a string test, they tie a string to someone and trace her steps as she cooks. Then they design a cabinet plan that saves footsteps. The heap method involves putting all your kitchen stuff in a pile, and then designing cabinets to accommodate it, which beats making what you have fit given cabinets. Laurie took pictures of her kitchen supplies while they were in the cabinets of her former home, then made sure her new kitchen had a place for everything and more. The owner of the kitchen Abram was remodeling had 14-inch plates; standard upper cabinets are 12-inches deep. "Simple," Abram said. "We made the cabinet deeper."
• Don't skimp on the hardware. Typically, hardware comes rated for two kinds of loads: carrying ability and shock capacity. (Can your kid jump on it?) The higher the load the better. Both Laurie and Norm used hardware from Blum.
• Trade doors for drawers. Thanks to better hardware, cabinets with fixed shelves are giving way to cabinets with pullout shelves or drawers. Laurie's kitchen has upper cabinets, but for lower storage she has primarily drawers. She will never again rummage in the back of a cabinet for a pot.
• Bring dead corners to life. Corner cabinets often become black holes; things go in but never return. New cabinet designs fix that. Drawers have fronts built at a 90-degree angle that pull open to reveal full drawers. Doors open on elbow hinges, revealing shelves that turn like Lazy Susans.
• Replace don't retrofit. Putting new hardware on old cabinets is expensive, difficult and usually not worth it. "If you're ready to replace the hardware, you're getting close to the idea of new cabinets," said Abram.

Marni Jameson is a nationally syndicated columnist and author of "The House Always Wins" (Da Capo). You can learn more about her and her book - which can be a nice housewarming gift or a tool to show buyers some great ideas on turning a house that isn't quite right into perfect, at www.marnijameson.com.

• Avoid outstanding liens. Make sure the property has a clean title. Any outstanding liens and fees incurred by the original owner will be transferred to the new buyer.

• Bid conservatively. The market in many places is still depreciating. That unknown added to transaction, repair, and marketing costs could sour the deal.

• Beware foreclosure concentration. Prices in neighborhoods where there are lots of foreclosures have declined the most – and prices in these areas are still declining. A buyer should confirm that there's an opportunity to make money if prices fall another 15 percent.

• Beware the appraisal. If the price is discounted from an appraisal done before August 2007, it is almost certainly unrealistically high.

• Cash is king. Even a buyer with a renter lined up and enough money for a 20 percent down payment needs still more cash to weather another two or three years of a depressed market before unloading the property.

Please join me Sunday June 22 as I hold open my darling listing at 536 2nd Street in Valley Junction from 2:30 to 4:30pm.

This home is a gem and in such a lively and convenient location!

This was an interesting article in Inman news:

Most buyers and sellers feel relieved when the negotiations are done and the purchase agreement has been signed by all parties. It's a milestone. But, you might want to hold off celebrating until the transaction closes.

Current market conditions have complicated the home sale industry. Lender requirements for mortgage qualification and the types of home loans available are changing daily. Before getting into contract to buy a home, make sure you double check with your lender or mortgage broker to confirm that the loan you were qualified for several weeks ago is still available.

For example, a week before closing, buyers who were purchasing their first home -- and who had been assured that their financing was in order -- were informed that their lender was no longer providing the type of loan they needed to complete the transaction.

These were well-qualified buyers who had enough cash for a 10 percent down payment and closing costs. They needed to borrow a first mortgage for 80 percent of the purchase price and a second mortgage for the remaining 10 percent. The lender who was providing the 10 percent second mortgage decided they would no longer provide 10 percent second loans to first-time buyers.

In a similar situation, buyers who had been approved for 80-10-10 financing were told by their lender at the last minute that their underwriting guidelines had changed. The lender would no longer provide a second mortgage for 10 percent of the purchase unless they were also providing the first mortgage.

A year ago, financing was readily available to just about anyone who wanted to buy a house. And, most of what sold appraised for the purchase price. It was rare to see a listing back on the market because the buyer couldn't get financing. If a deal fell apart, the most likely culprit was an irreconcilable difference over an inspection issue.

HOUSE HUNTING TIP: Due to the change in the credit markets, buyers are wise to include financing and appraisal contingencies in the purchase contract in addition to an inspection contingency. A contingency should give the buyers a period of time to satisfy the condition in question. If they act in good faith and attempt to satisfy the condition, but are unable to, they may have the right to withdraw from the contract without penalty, depending on how the contact is written.

When buyers find themselves in competition, it's tempting to waive contingencies. A year ago, many buyers felt comfortable waiving contingencies for financing and property appraisal. There was a loan product for everyone and appraisals weren't an issue.

This is no longer the case. Most lenders have stopped doing easy-qualifier, no-cash loans and pay-option mortgages, to name a few. Lenders have also tightened up on appraisals, credit score and verifiable income requirements.

Buyer's remorse is a more serious issue in a slow market where home prices are soft than it is in a market where prices are escalating. Sellers can help prevent buyer's remorse from sinking a deal by properly preparing their homes for sale. This includes pricing accurately for the current market so that the buyers don't feel they overpaid when they see the inspection reports.

Obtaining pre-sale home inspections will also help keep buyers from having second thoughts. The more buyers know about the condition of the property before they make an offer, the less chance they will back out due to inspections.

THE CLOSING: A soft market makes an offer that is made contingent on selling another property more risky. Even if your buyer has lined up a buyer for his house, if that deal falls apart so does yours.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Two upcoming Open Houses:

410 Thornton Avenue, $139,900
Sunday June 8 12 - 2pm

2931 39th Street, $143,900
Sunday June 8 2:30 - 4:30pm

Come visit!

Per REALTOR magazine:

1. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. An inspector will be able to give you a good indication of the trouble areas that will stand out to potential buyers, and you'll be able to make repairs before open houses begin.

2. Organize and clean. Pare down clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or in boxes neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine.

3. Get replacement estimates. Do you have big-ticket items that are worn our or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don't plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.

4. Find your warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.

5. Spruce up the curb appeal. Pretend you're a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments?

Great Ideas to make your property stand out from the start!

Thirteen years on May 13! And we still are really lucky to have a great life and 4 amazing kids. Happy Anniversary, Keith!

Thirteen years of marriage on the thirteenth! And we are still so lucky to have a great life and four wonderful kids. Happy Anniversary, Keith!