More housing markets are forecast to experience appreciation in 2010 as the nation’s real estate markets move closer to stabilization. The Best 25 Housing Markets named annually by Housing Predictor hold the strongest likelihood of housing inflation of all 250 market predictions issued.

Despite the weak economy, home sales are increasing in the majority of the country and are projected to improve over at least the first half of the year boosted by the federal government’s expansion of the first time home buyers’ tax credit to move-up buyers.

Propelled by bargain prices, four Ohio markets top the list of the best 25. Prices got so low in most of Ohio that they have only one way to go. Bankers slashing prices of foreclosures and short sales are setting a new standard for the real estate industry in order to try and save their institutions from failure.

Twelve states are represented on the top 25 list, including many midwest and northern-tier states, which have been less severely impacted by the housing crisis. In all, 44 markets are currently forecast to experience housing inflation in 2010. As we encounter the most challenging real estate market since the Great Depression, the predictions here will be updated and change over the year.

Kieran M. Jackson, REALTOR®
Keller Williams Realty Greater Cleveland
27950 Chagrin Blvd
Cleveland, OH 44122

216-839-5500 — Office
216-854-8515 — Cell
216-456-2350 — Fax
KieranJackson@kw.com

Original article found at: http://www.housingpredictor.com/predictions.html

April 15th is less than six weeks away and we all know what that means. If you’ve yet to visit your accountant or tax preparer, there are some new tax laws, as well as a few old ones you need to know about. But, don’t worry. All of the information we’re going to share falls under the category of “good news”.

Back again for his yearly tax-time advice is Trevor Rice, a certified public accountant and shareholder with Stern, Kory, Sreden and Morgan, AAC in Stevenson Ranch, California. Considering that Rice’s appointment book is filling up quickly, we thought it would be a good idea to get him talking about some of the more favorable changes regarding our taxes from last year.

For Individuals
“With a lot of people struggling and finding themselves in survival mode,” Rice says, “Our government is responding with help in the form of new tax laws.”

According to Rice, the biggest benefit in terms of tax relief is extended to those who are losing their homes to either foreclosure or short sale. He says in the past, the amount forgiven by the lender could have been considered taxable income. Under the current law, up to $2,000,000 of cancelled debt can be excluded from being taxed.

Rice warns there are some provisions to the law. For starters, it ONLY applies to your principal residence. It also ONLY applies to the debt incurred from either buying the house, or from making upgrades and repairs. In other words, drawing from your equity line to pay off a credit card may still be taxed. Rice went on to say if you are deemed insolvent (the value of your total assets is less than your debt), you might be able to exclude ALL of the cancelled debt.

With this and every other tax law we’ll talk about, Rice asks you to check your state laws, and consult with your CPA or tax preparer. While they will apply to your federal income taxes, they are not guaranteed to apply to your state taxes.

The next great tax break is for first-time home buyers, as they are eligible to receive an $8,000 refundable tax credit. Before we go any further we should make it clear that anything labeled a “tax credit” is a dollar for dollar reduction of your tax. Anything labeled a “deduction” is something that reduces your tax based on your income tax bracket.

You should also be made aware the term “first-time home buyer” is defined as anyone who has not owned a principal residence in the last three years. However, the provisions for using this credit on your 2009 taxes include entering into a purchase contract no later than April 30, 2010 and closing the transaction by June 30, 2010. It only applies to homes up to $800,000 in cost, and if you are a high-earner you may not qualify.

Along the same lines for homeowners in 2009 is an existing home buyer tax credit. This is a $6,500 credit for anyone owning a home as a primary residence, five out of the last eight years, but is looking to buy a new home. The same deadline dates for first-time home buyers apply to this credit as well. High-earners may also not qualify.

There’s some good news, Rice says, for anyone who made energy-efficient improvements to their home in 2009. A $1,500 tax credit (30% of the first $5,000 spent) is available. Some examples would include the installation of energy-efficient windows or doors, insulation, a new furnace, or water heater. In the case of solar energy upgrades, the credit is thirty percent of the total cost, with no limit!

For anyone who has a child in his or her first four years of college, there is a new $2,500 credit. Also new is that forty percent of this credit is refundable. In other words, if the $2,500 credit exceeds the amount of your tax, forty percent of the difference can be refunded. There are a few exceptions to this credit, so make sure you check with your accountant.

For Businesses
“There are a few changes for business taxes this year,” says Rice, “But the biggest are for businesses suffering losses.” According to our expert, a business that shows a loss in 2009 has the ability to carry that loss as far back as 5 years and recoup taxes paid in any one of those years. The one provision, he says, speaks specifically to that 5th year, when you can only recoup up to 50 percent of the taxes paid. The trick he claims is for your accountant to look for the best year to apply that deduction.

Bonus depreciation is another law that businesses can use to their advantage. This law allows you to deduct fifty percent of the cost of new equipment purchased in 2009. One of the benefits to this deduction is that you can still use it even if your business suffered losses last year. Rice says that this law has been in existence, but it was supposed to expire in 2008. Thanks to our lawmakers, it has been extended to 2009.

Another law that has been extended from 2008 to 2009 is commonly known as “Section 179 Depreciation”. This provides business owners the ability to deduct up to $250,000 of new equipment in one year. Prior to 2008, the amount was limited to $125,000.

Rice closed out our discussion by telling us there are many new tax laws, so involving a CPA in the process of filing your taxes is highly important. Equally as important, he says, is to inform your CPA anytime you have something of major importance going on in your life. This would include buying or selling a home, getting married (or divorced), and having a child. Rice says events like these will always affect your taxes in some way. The key is early intervention, as it allows for the most strategic planning.

Trevor Rice has been a practicing CPA for the past twelve years. A graduate of California State University at Northridge, Trevor also holds the title of CVA or Certified Valuation Analyst. He currently practices at Stern, Kory, Sreden and Morgan in Stevenson Ranch, California where he is also a shareholder. Trevor specializes in both individual and business taxation. He can be contacted via email at Trevor@SKSM.com.

Staging is comparable to preparing a set for a movie, but in this case, you are setting the stage in a way that makes visitors feel comfortable and at home in your house. It makes people want to sit, to linger, and to begin imagining how their things will fit in your space. Helping prospective buyers achieve this level of comfort is not only conducive to offers; it practically guarantees higher offers.

These open house ideas will help you make the most of the situation:

Clean until it sparkles
The least expensive and best way to make your home appealing is to scrub and polish everything to perfection. If you need to hire a cleaning service, do not hesitate to do so. No one wants to live in someone else’s dirt, and the slightest hint of grime is the biggest turnoff to potential buyers.

Get rid of clutter
This can be tricky while in the process of packing, but clutter makes a home appear as if there isn’t enough storage space. Hiding things in closets is not advisable, since buyers will want to look inside. Rent a storage unit, or borrow space in a friend’s basement or garage during the open house if possible. Set the stage by making sure every space is tidy and clutter free.

Brighten things up
Another way to make your home appear larger and more spacious is to make it bright and airy. This is an easy staging trick that can be accomplished by simply opening blinds or drapes, turning on lights, or lighting candles. Open windows as well, if the weather is appropriate. If any light bulbs are burned out, replace them. You may also want to replacee dim lights with higher-wattage bulbs.

Make it smell like home
Use air fresheners in attractive containers or purchase scented candles. Use subtle scents, and make sure each item has the same scent to avoid an overpowering fragrance. For an extra homey touch, use items that give off the aroma of baked goods, such as cinnamon or vanilla. Actually baking something will fill your home with mouth-watering fragrances. Pop a package of ready to bake cookies into the oven and set the temperature very low so the cookies take a long time to bake and keep the house filled with aroma for several hours. Another staging trick is to slice an apple, put it in a baking dish with water, and cover it with cinnamon. Let it simmer in the oven throughout the open house.

Depersonalize your space
While you want your home to be warm and inviting, you do not want to overwhelm buyers with your personal tastes. Even though, on some level, people know that your things will go with you, personal items often distract them, making them view the house as someone else’s home. Staging is all about making buyers feel at home.

Neutralize your space
While you may love purple, a potential buyer may not find it nearly as attractive. Paint over the purple with a more neutral color so it will appeal to as many people as possible. Remember, do the work for the buyer. This is especially true if you have many different colors throughout the home. You stand to increase offers on your home by thousands of dollars just by spending a little time and money repainting.

Set the stage with attractive furnishings
If your furnishings leave something to be desired, replace them with pieces that are more attractive. Use slipcovers, purchase gently used furniture, or borrow a piece from a friend. It is also wise to insert furniture or accessories into empty spaces to avoid the appearance of wasted square footage.

Create good flow
If you need advice regarding furniture arrangement, ask for help. You want visitors to walk through your home easily and imagine how their furnishings will look in each space. Awkward arrangements will make buyers feel apprehensive and wonder if their things will fit comfortably. In addition, make sure your furniture arrangement does not detract from focal points such as fireplaces or bay windows. If there is too much furniture in a room, making it feel crowded, remove one or two pieces during the open house.

With a little work and very little money, many sellers are able to realize an excellent return for their efforts. You can do the same by setting the stage for competitive offers.

Kieran M. Jackson, REALTOR
Keller Williams Realty Greater Cleveland
27950 Chagrin Blvd
Cleveland, OH 44122

216-839-5500 — Office
216-854-8515 — Cell
216-456-2350 — Fax
KieranJackson@kw.com

Original article by Sherry Holetzky at http://www.life123.com

This is an article I found on the HUD website. I have added my own comments and links to other information in my editorial red font!

Why should I buy, instead of rent?

Answer: A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you’ll enjoy having something that’s all yours – a home where your own personal style will tell the world who you are.

Remark: This first point alone is reason enouh to own your home. If you are in a position where you CAN buy, then you owe it to yourself! If you would like to consult with a REALTOR® then find my info at the bottom of this article or go to
Keller Williams Realty Greater Cleveland

What are “HUD homes,” and are they a good deal?

Answer: HUD homes can be a very good deal. When someone with a HUD insured mortgage can’t meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then we sell it at market value as quickly as possible. Read all about buying a HUD home. Check our listings of HUD homes and homes being sold by other federal agencies.

Remark: OK, this actually… SUCKS! HUD doesn’t say what condition the homeowner’s credit will be in AFTER the foreclosure, and they’re out on their butt. NACA has a much better policy. If you would like to hear more about what NACA has to offer, give me a call. My number is at the bottom of this article.

Can I become a homebuyer even if I have I’ve had bad credit, and don’t have much for a down-payment?

Answer: You may be a good candidate for one of the federal mortgage programs. Start by contacting one of the HUD-funded housing counseling agencies that can help you sort through your options. Also, contact your local government to see if there are any local homebuying programs that might work for you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can’t find it, contact your mayor’s office or your county executive’s office.

Are there special homeownership grants or programs for single parents?

Answer: There is help available. Start by becoming familiar with the homebuying process and pick a good real estate broker. Although as a single parent, you won’t have the benefit of two incomes on which to qualify for a loan, consider getting pre-qualified, so that when you find a house you like in your price range you won’t have the delay of trying to get qualified. Contact one of the HUD-funded housing counseling agencies in your area to talk through other options for help that might be available to you. Research buying a HUD home, as they can be very good deals. Also, contact your local government to see if there are any local homebuying programs that could help you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can’t find it, contact your mayor’s office or your county executive’s office.

Remark: Pick a good real estate broker!
Keller Williams Realty Greater Cleveland

Should I use a real estate broker? How do I find one?

Answer: Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. A real estate broker will be well-acquainted with all the important things you’ll want to know about a neighborhood you may be considering…the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. He or she will help you figure the price range you can afford and search the classified ads and multiple listing services for homes you’ll want to see. With immediate access to homes as soon as they’re put on the market, the broker can save you hours of wasted driving-around time. When it’s time to make an offer on a home, the broker can point out ways to structure your deal to save you money. He or she will explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork and be there to hold your hand and answer last-minute questions when you sign the final papers at closing. And you don’t have to pay the broker anything! The payment comes from the home seller – not from the buyer.

By the way, if you want to buy a HUD home, you will be required to use a real estate broker to submit your bid. To find a broker who sells HUD homes, check your local yellow pages or the classified section of your local newspaper.

Remark: Use a real estate broker!
Keller Williams Realty Greater Cleveland

How much money will I have to come up with to buy a home?

Answer: Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money – the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.

When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. The amount of your earnest money varies. If you buy a HUD home, for example, your deposit generally will range from $500 – $2,000.

The more money you can put into your down payment, the lower your mortgage payments will be. Some types of loans require 10-20% of the purchase price. That’s why many first-time homebuyers turn to HUD’s FHA for help. FHA loans require only 3% down – and sometimes less.

Closing costs – which you will pay at settlement – average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won’t be caught by surprise. If you buy a HUD home, HUD may pay many of your closing costs.

How do I know if I can get a loan?

Answer: Use our simple mortgage calculators to see how much mortgage you could pay – that’s a good start. If the amount you can afford is significantly less than the cost of homes that interest you, then you might want to wait awhile longer. But before you give up, why don’t you contact a real estate broker or a HUD-funded housing counseling agency? They will help you evaluate your loan potential. A broker will know what kinds of mortgages the lenders are offering and can help you choose a lender with a program that might be right for you. Another good idea is to get pre-qualified for a loan. That means you go to a lender and apply for a mortgage before you actually start looking for a home. Then you’ll know exactly how much you can afford to spend, and it will speed the process once you do find the home of your dreams.

Remark: If you seem to be having difficulty getting approved for a loan, then you will need to o thru NACA. They will definitely be able to help you get approved for a loan. Give me a call for more details. My number is at the bottom of this article.

How do I find a lender?

Answer: You can finance a home with a loan from a bank, a savings and loan, a credit union, a private mortgage company, or various state government lenders. Shopping for a loan is like shopping for any other large purchase: you can save money if you take some time to look around for the best prices. Different lenders can offer quite different interest rates and loan fees; and as you know, a lower interest rate can make a big difference in how much home you can afford. Talk with several lenders before you decide. Most lenders need 3-6 weeks for the whole loan approval process. Your real estate broker will be familiar with lenders in the area and what they’re offering. Or you can look in your local newspaper’s real estate section – most papers list interest rates being offered by local lenders. You can find FHA-approved lenders in the Yellow Pages of your phone book. HUD does not make loans directly – you must use a HUD-approved lender if you’re interested in an FHA loan.

In addition to the mortgage payment, what other costs do I need to consider?

Answer: Well, of course you’ll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your real estate broker will be able to help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or condo association dues. You’ll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, your broker will be able to help you anticipate these costs.

So what will my mortgage cover?

Answer: Most loans have 4 parts: principal: the repayment of the amount you actually borrowed; interest: payment to the lender for the money you’ve borrowed; homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders; and property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year. Most loans are for 30 years, although 15 year loans are available, too. During the life of the loan, you’ll pay far more in interest than you will in principal – sometimes two or three times more! Because of the way loans are structured, in the first years you’ll be paying mostly interest in your monthly payments. In the final years, you’ll be paying mostly principal.

What do I need to take with me when I apply for a mortgage?

Answer: Good question! If you have everything with you when you visit your lender, you’ll save a good deal of time. You should have:

• social security numbers for both your and your spouse, if both of you are applying for the loan;
• copies of your checking and savings account statements for the past 6 months;
• evidence of any other assets like bonds or stocks;
• a recent paycheck stub detailing your earnings;
• a list of all credit card accounts and the approximate monthly amounts owed on each;
• a list of account numbers and balances due on outstanding loans, such as car loans;
• copies of your last 2 years’ income tax statements; and
• the name and address of someone who can verify your employment.

Depending on your lender, you may be asked for other information.

I know there are lots of types of mortgages – how do I know which one is best for me?

Answer: You’re right – there are many types of mortgages, and the more you know about them before you start, the better. Most people use a fixed-rate mortgage. In a fixed rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage payment will be, and you can plan for it. Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments usually start lower than a fixed rate mortgage. But your rate and payment can change either up or down, as often as once or twice a year. The adjustment is tied to a financial index, such as the U.S. Treasury Securities index. The advantage of an ARM is that you may be able to afford a more expensive home because your initial interest rate will be lower. There are several government mortgage programs,including the Veteran’s Administration’s programs and the Department of Agriculture’s programs. Most people have heard of FHA mortgages. FHA doesn’t actually make loans. Instead, it insures loans so that if buyers default for some reason, the lenders will get their money. This encourages lenders to give mortgages to people who might not otherwise qualify for a loan. Talk to your real estate broker about the various kinds of loans, before you begin shopping for a mortgage.

Remark: There are several types of mortgage loans out there, that you will be able to choose from, and the details of them are major. Too much for a blog article to describe effectively. If you would like to hear more about these loans, let me put you in touch with Sean Hadley of Heritage Mortgage Services, go to
Heritage Mortgage Services

When I find the home I want, how much should I offer?

Answer: Again, your real estate broker can help you here. But there are several things you should consider:

• is the asking price in line with prices of similar homes in the area?
• is the home in good condition or will you have to spend a substantial amount of money making it the way you want it? You probably want to get a professional home inspection before you make your offer. Your real estate broker can help you arrange one.
• how long has the home been on the market? If it’s been for sale for awhile, the seller may be more eager to accept a lower offer.
• how much mortgage will be required? Make sure you really can afford whatever offer you make.
• how much do you really want the home? The closer you are to the asking price, the more likely your offer will be accepted. In some cases, you may even want to offer more than the asking price, if you know you are competing with others for the house.

Remark: Use that GOOD real estate broker you selected!
Keller Williams Realty Greater Cleveland

What if my offer is rejected?

Answer: They often are! But don’t let that stop you. Now you begin negotiating. Your broker will help you. You may have to offer more money, but you may ask the seller to cover some or all of your closing costs or to make repairs that wouldn’t normally be expected. Often, negotiations on a price go back and forth several times before a deal is made. Just remember – don’t get so caught up in negotiations that you lose sight of what you really want and can afford!

So what will happen at closing?

Answer: Basically, you’ll sit at a table with your broker, the broker for the seller, probably the seller, and a closing agent. The closing agent will have a stack of papers for you and the seller to sign. While he or she will give you a basic explanation of each paper, you may want to take the time to read each one and/or consult with your agent to make sure you know exactly what you’re signing. After all, this is a large amount of money you’re committing to pay for a lot of years! Before you go to closing, your lender is required to give you a booklet explaining the closing costs, a “good faith estimate” of how much cash you’ll have to supply at closing, and a list of documents you’ll need at closing. If you don’t get those items, be sure to call your lender BEFORE you go to closing. Be sure to read our booklet on settlement costs. It will help you understand your rights in the process. Don’t hesitate to ask questions.

More information?

Answer: See our article “100 questions and answers” about buying a home at http://www.hud.gov

Kieran M. Jackson, REALTOR®
Keller Williams Realty Greater Cleveland
27950 Chagrin Blvd
Cleveland, OH 44122

216-839-5500 — Office
216-854-8515 — Cell
216-456-2350 — Fax
KieranJackson@kw.com

Original article found at http://www.hud.gov/buying/comq.cfm

Leave the Lawn
There’s no sense in fixing up the yard. After all, it’s the house they’re coming to see!

Or… See your yard as an extension of the house and give it a thorough once-over. Trim unruly bushes, pull weeds, spread fresh mulch, and keep it mowed. Your yard sets the expectations of the buyer before they’ve even stepped in your house.

Also, consider installing attractive outdoor lighting. It goes a long way (for a little investment) toward creating a dramatic mood. And if you have a dog, go on a hunt for “land mines” and clean them up.

Lingering Stench
Don’t change the litter box. After all, you changed it yesterday, right? It doesn’t smell that bad.

Or… give your house the “sniff test.” Nothing is more off-putting to a prospective buyer than a house that smells stale … or worse. Often, you become so inured to the smell of your own home that you don’t notice scents that might offend visitors.

Empty the garbage, load dirty clothes into the washing machine, run a lemon rind through the disposal, give wood furniture a quick polish, and for goodness sake, change the litter box.

Express Yourself
Indulge your creative side with vividly painted walls and furniture. Paint an accent wall a bright color. It’s fun!

Or… tone it down. Make your house a place that anyone could imagine living in. This means removing most evidence of your personal taste. Accent walls of vivid hues are all the rage now, except in the real estate marketplace. Decorate with a rigorous devotion to beige. Neutral walls, pale furniture, soft lighting, and inoffensive art all go a long way toward creating a crowd-pleasing interior.

Store your collections in a safe place for the duration of the selling process. Remember, you want prospective buyers to look at the space, not get distracted by your stuffed animal collection.

Playboy Palace
Stash your dirty magazines and movies in your oven or drawers! No one will think to look there.

Yes they will. Get rid of everything you wouldn’t want your mother to see. Prospective buyers will open the oven, investigate drawers for function and capacity, and study your closets and medicine cabinet.

Part of preparing your house to sell is a ruthless purging of all these places and a thoughtful review of potentially embarrassing items.

Distracting Doggie
Leave your dog in his crate while people look at your house. He won’t bother anyone.

Or… he may not be so well-behaved when you’re not there. A barking dog is extremely distracting when prospects are trying to get a detailed look at your house. Even though he might be contained, his voice will carry. Take him with you if you can, or drop him off at a pet-friendly neighbor’s house and repay them with house-sitting or a similar favor.

Team Loyalties
Make sure buyers know which team you cheer for. And don’t forget to fly that Red Sox flag!

Or… put your fan-of-the-year behavior on hold for a while, and stash your team merchandise away in the attic. What if your best prospect is a Yankee’s fan? You don’t want to lose a buyer over a foam finger.

The same goes for religious paraphernalia, although that may actually be less of a deal breaker.

Dirty Dishes
Don’t worry about the dishes in the sink. People will understand you were in a rush to get out the door that morning.

Or… they’ll think you’re a slob who couldn’t be bothered to put the dishes in the dishwasher — and probably hasn’t taken very good care of the house.

If it means you have to take your family out to breakfast, make sure to leave your kitchen pristine. The same goes for the bathroom. Dry the inside of the sink and the surrounding counter completely before you leave the house.

Leave As Is
Let the buyer fix the hole in the wall and the broken light fixture. Who knows? They may want to choose their own!

Or… be prepared to lose a sale over the poor condition of your house. Everything in your home must be in good working order before you put it on the market. This process can take a couple of months, but you need to fix all broken fixtures, change all burned-out light bulbs, repair any flaws in the walls, and refresh any paint that needs it.

The same goes for outdated or worn wallpaper. Some things do not get better with age, and nothing dates a room more than ’80s wallpaper.

Get-to-Know-You Game
Leave out your pictures, magazines, books, and knickknacks. You want a prospective buyer to feel that they know you, right?

Wrong. You want buyers to immediately begin imagining themselves living in your house, and they’ll have a hard time seeing beyond the pictures of your family at Beaver Creek and the old issues of Garden & Gun. Even worse, they might find your taste in books laughable or your choice of evening wear tacky and decide they couldn’t possibly live in your house.

So clear every surface, every side table, every coffee table, the sideboard, the desk, and the dining room table. You can put one item in each room, and it should be a plant or a flower arrangement.

Pack It In
Leave your furniture arranged just as you like it. That way people can see how many lovely pieces you own!

Or… remove extra furniture that clutters the space — side tables, foot stools, and magazine racks — and takes up more space than a fixed chair. Create simple arrangements with maximum impact.

Often people arrange their living room as if they’re hosting the neighborhood meeting, with all the furniture lined up along the walls. Instead, place a sofa facing the fireplace, and flank it with two chairs and coffee table in between. This will create visual depth and an inviting vignette.

Kieran M. Jackson, REALTOR®
Keller Williams Realty Greater Cleveland
27950 Chagrin Blvd
Cleveland, OH 44122

216-839-5500 — Office
216-854-8515 — Cell
216-456-2350 — Fax
KieranJackson@kw.com

Original Article By: Lydia Somerville

There are both advantages and disadvantages to selling your own home and it isn’t difficult to learn how to sell your own home, either. Number one on the list of advantages is saving money by avoiding real estate commission fees (Saving money on the commission? OK. Read on). Another major advantage is that the seller has complete control over the sale process (Misconception. You have final say on price WITH an agent also!). Among the disadvantages are paying out of pocket for advertising costs, pricing your home too high or too low, and not being able to devote enough time to the house-selling process; for example, holding open houses or showing the house to prospective buyers (Time is money!). If you STILL think you want to sell your home without the help of a real estate agent, then here’s what you need to know to sell your own home in today’s real estate market.

Preparing your home for sale
Preparing your home for sale means doing necessary house repairs and maintenance, such as cleaning the gutters, thoroughly washing your home’s exterior, and cleaning up clutter inside your home, including the basement, attic, and garage. Part of preparing your home for sale also includes setting a fair selling price. To do this you can do a comparative market analysis (many Web sites offer this service) or hire an appraiser who will appraise your home’s value based on age, condition, and recent sales of comparable homes. (Or maybe just get an agent!) When determining sale price, you should also account for items that will remain with the house, such as appliances, as well as fees for closing costs.

Advertising your home
Advertising is a big part of selling your own home, because if no one knows it’s for sale, then no one will buy it. And, as the saying goes, a picture is worth a thousand words, so excellent quality photographs are a must no matter what advertising media you choose. Because “For sale by owner” (FSBO) homes are not allowed to be listed under the MLS (multiple listing service), it is necessary to be creative. Handing out fliers, word of mouth, For Sale signs, advertising in the local and regional newspapers, and holding open houses are all methods that homeowners can use. There are also Web sites that cater to FSBO homes where, for a fee, home sellers can list their homes for sale. (Saving by not paying a commission, still?)

Negotiating the sale
Negotiating a final sale price is contingent upon what the asking price is as well as what a home seller’s bottom line is. Negotiations generally involve a give-and-take process with the seller determining a sale price and the buyer counter offering with a lower bid. This is the point in the home-selling process at which homeowners must remain objective and sever any emotional ties to their home. Sticking to the bottom line ensures you won’t lose money or the sale. (Or you may lose the whole sale!)

Legal paperwork
Dealing with paperwork such as legal forms and sale offers, agreements, and contracts is probably the least pleasant part of the home-selling experience. Homeowners who feel uncomfortable with this aspect should not hesitate to hire a real estate attorney to guide them through. (Yes, get a lawyer. Lawyers ARE cheaper then real estate agents!) Although it is an added expense, for many home sellers, it is well worth the costs incurred. Overlooking any legal aspect of a home sale could result in the sale falling through or future legal action from the buyer, so be sure you thoroughly understand what is involved in this step of the process.

Closing the sale
Closing the sale is the most exciting part of selling a home; however, it’s important to keep in mind that it’s not over until you have the cash in hand. Calculate in advance how much money you should be receiving on closing day, accounting for any fees that you have to pay. Review the settlement statement carefully for any mistakes. Once everything is in order and the keys are handed over, it’s time to celebrate.

Kieran M. Jackson, REALTOR®
Keller Williams Realty Greater Cleveland
27950 Chagrin Blvd
Cleveland, OH 44122

216-839-5500 — Office
216-854-8515 — Cell
216-456-2350 — Fax
KieranJackson@kw.com

It is no mystery that foreclosures are skyrocketing in the United States as quickly as the gas prices. Each state has its own foreclosure laws, and it is important for residents to have a clear understanding of what they are. We’re going to zero in on the state of Ohio.

Foreclosures in Ohio differ from other states in that there are no non-judicial foreclosures available. Properties in Ohio act as securities against the lien. In order for a foreclosure to take place in the state of Ohio, lenders must go to court for what is called a judicial foreclosure.

Once the court has granted the foreclosure, it is listed as a public notice sale. A complaint is filed with the county courthouse in addition to what is called a “lis pendens.” A “lis pendens” is a document which records the fact that a public notice is being filed stating the property is being foreclosed upon.

A foreclosure in the state of Ohio cannot go through unless a complaint is filed with the county courthouse giving the defendant 28 days to respond, three appraisers who are not interested in the property are secured and the notice of the foreclosure sale is advertised at least 30 days prior to the actual sale. If these conditions are not met, the foreclosure process starts over.

If the foreclosure goes uncontested, it typically takes between 150 and 180 days to go into effect.

The sheriff for the county handles all foreclosures in the county courthouse. The sheriff is also responsible for returning a writ of execution. A writ of execution is a document confirming the sale of the property took place legally.

Resources
United States Foreclosure Laws – Foreclosure Law in Ohio

Kieran M. Jackson, REALTOR®
Keller Williams Realty Greater Cleveland
27950 Chagrin Blvd
Cleveland, OH 44122

216-839-5500 — Office
216-854-8515 — Cell
216-456-2350 — Fax
KieranJackson@kw.com

AUSTIN, TEXAS (December 21, 2009) — Keller Williams Realty joined the ranks of the top franchises in the world last week, when the company was ranked as the No. 1 real estate franchise on the 31st Annual Franchise 500 list by Entrepreneur magazine. During the same week, the company was also voted the Most Recognizable Brand of Real Estate Franchises for 2009 in an industry-wide survey for the Swanepoel TRENDS Report.

“The Swanepoel TRENDS Report is a respected source for the real estate industry and beyond, as is Entrepreneur magazine, and we are excited to see our agents honored in this way for all of their hard work,” said Mark Willis, CEO, Keller Williams Realty. “We certainly wouldn’t have been included on either list without the dedication and resolve of our agents.”

According to the ranking in Entrepreneur magazine, the most important criteria to determine the top franchises included financial strength and stability, as well as growth rate and size of the franchise system. The magazine also looked at the number of years the company has been in business and the length of time it’s been franchising, in addition to start-up costs and financial data. Additionally, Keller Williams Realty made an impressive showing on the overall list, placing higher than any other real estate franchise.

The Swanepoel TRENDS Report is published by Stefan Swanepoel, a real estate industry speaker and insider. The survey was crafted to determine the Most Recognizable Brand for Real Estate Franchises for his report out in February 2010. The survey included votes cast by 11,000 plus real estate agents, who cast 390,000 votes to select the top 10.

Earlier in the year,Keller Williams Realty also received the highest overall satisfaction ratings from home buyers among the largest full-service real estate firms from J.D. Power and Associates for the second year in a row.

“We are extremely proud that our associates and company are being recognized for our strength and stability during this time in our industry,” said Mary Tennant, president and COO, Keller Williams Realty. “We attribute our success to being in business with phenomenal people and to our core business models, which have allowed our franchises to thrive during any market.”

Kieran M. Jackson, REALTOR®
Keller Williams Realty Greater Cleveland
27950 Chagrin Blvd
Cleveland, OH 44122

216-839-5500 — Office
216-854-8515 — Cell
216-456-2350 — Fax
KieranJackson@kw.com

What is Keller Williams RED Day?

RED (Renew, Energize and Donate) Day is a Keller Williams Realty service initiative dedicated to improving our local communities. We are asking all Keller Williams Realty associates in the US and Canada to donate their time on May 13, 2010 to renewing and energizing aspects of their local communities. Because of her constant commitment to the culture of our company, this day has been dedicated in honor of our Vice Chairman, Mo Anderson.

Our vision for this day is that all Keller Williams associates will actively engage in a coordinated effort to improve their local community. Activities may include rehabbing a house, cleaning up a local trail, providing food for the homeless, or any other service related activity needed in your community. This will be one of the single biggest events ever undertaken in the real estate industry.

In order for this day to be a huge success, we need your energy and your commitment. Each Market Center will be asked to identify and coordinate an activity which will have a visible impact on their local comminity and surroundings. We are confident that each Market Center will embrace this opportunity for positive change while demonstrating KW culture and spirit to their community.

What was last year’s RED Day like?

We have asked all our associates who participated in RED Day on May 14, 2009 to upload their photos for everyone to see. Please visit our photobucket site to see what other associates did. If you have more photos to share, please feel free to upload them here: Photobucket RED Day’s Past

How can I help??

Now to March 2010 – Form a RED Day committee to identify an activity and plan the event. Then, communicate RED Day plans to Market Center associates and save the date on Market Center and associate calendars.

April 2010 – May 12, 2010 – Gather sponsors to contribute food, beverages, tools, and any other day of items needed to conduct the event. A sample sponsorship letter is included below for your convienience. Next, plan the event logistics (i.e. Who is going to pick up the food? What tools are needed? If multiple projects are selected, who is going to lead each project? What is the parking situation?).

Frequently Asked Questions

Do we need to get RED Day sponsors?
RED Day is a great opportunity to involve local businesses, clients, family and friends in your community. We suggest using the sponsorship template located above to provide potential sponsors with the information needed to sponsor your Market Center. Ideally, all RED Day supplies (i.e. food, beverages and tools) will be donated or borrowed through local sponsors to your Market Center. This will allow all KW volunteers to focus on the chosen activity with a full stomach and proper tools.

Can I invite my clients, friends and family to participate in RED Day?
Given volunteer constraints on some projects, please check with your RED Day committee or Market Center leadership before inviting others to participate on RED Day. In any case, RED Day is an excellent opportunity to highlight the unique culture of Keller Williams to your clients, friends and family. We are currently developing various RED Day resources to assist you in communicating this message.

How should my Market Center choose what community activity to participate in?
Our vision for RED Day is that each Market Center should make this day their own by contributing to their community in a service project of their choice. The only criteria for selecting an activity, is that it improves the local community. While not required, we recommend finding a location large enough to engage all associates who wish to participate. This will ensure maximum impact on the community, while creating synergy and camaraderie.

How can I make this a win for both my business and my community?
The focus of RED Day is to make a positive impact on your local community. However, this is an excellent opportunity to reach out to your database of clients and recruits. Working side by side, a client or recruit is certain to build a lasting relationship which will strengthen your business, your profit share, and your community.

Any suggestions for working with our selected community project organization?
Here are a few important details to remember if contacting other organizations to work with:
What is the exact time and dateswill our volunteers need to be there?
What is the location that everyone should go to when they arrive on-site?
Are there any age restrictions?
What is the availability for parking?
What tools and resources may be provided, and what are we expected to bring with us to use that day?
Will any food and drinks be provided or should we plan for these accomodations ourselves?
Is there any special attire that will be required while working at this location? (i.e. work boots, hard hats)

Kieran M. Jackson, REALTOR®
Keller Williams Realty Greater Cleveland
27950 Chagrin Blvd
Cleveland, OH 44122

216-839-5500 — Office
216-854-8515 — Cell
216-456-2350 — Fax
KieranJackson@kw.com

Take a look at a list of the World’s Richest People as compiled by any number of organizations such as the US “Forbes 400 Richest Americans”, or Australia’s “BRW Rich 200 List”, and look at where each of these individuals have built their wealth. Whilst these people have generated their wealth from a very eclectic field of businesses and professions, one stands out as more common and re-occurring than the rest: Real Estate!

And for those that haven’t generated their wealth directly in real estate, many of them will use real estate as a secure and solid asset to funnel and further grow their fortunes.

So what makes real estate stand out above all the other asset classes as the vehicle of choice for wealth creation?

There are a number of reasons, but four principle ones:

1. Leverage

When purchasing real estate, it is not uncommon, particularly for a house and land package, to be able to borrow 80% or 90% of the purchase price. Depending on the location of the land, the lender, and your borrowing position (i.e. whether you already have other assets or secure “professional” employment), 100% lends are also possible.

If you went to your bank and told them that you wanted to buy their publicly listed stock and wanted a loan to do so, in most cases they would only loan you maybe up to 70% on listed stock in their very own bank! And yet this same bank would probably be more than happy to lend you 80% or 90% to purchase a well located piece of real estate.

This is a testament to how highly regarded well chosen and well located real estate is as a secure and solid asset class.

2. A Real Asset – Everybody Needs a Roof Over Their Head.

Unlike “paper assets” such as stocks or derivative market instruments, real estate is something real and tangible. It physically exists! Even more importantly than this is the fact that everybody needs a roof over their head, and we all need space and a place to live.

As long as there are people in a given area, there will be demand for real estate.

3. Limited Supply

Unlike virtually every other asset class, real estate is finite. Sure we can always build taller buildings with more apartments in them on the same size block of land, but there is only so much land, and only so much “well located” land near to public amenities, employment, and transportation.

The land component in particular makes real estate such an outstanding asset class because we aren’t making any more of it! Therefore your best real estate investment will generally involve one with a reasonable land component, as this is the component that appreciates most in value. Physical buildings themselves depreciate in value as they get older.

4. Price Inflation

As discussed in point 1, your “leverage”, or ability to borrow 80%, 90% or 100% of the purchase price of a piece of real estate, is only powerful IF it appreciates in value. If it depreciates… you could find yourself owing more than you originally borrowed! Whilst that may be a scary prospect, it is also pretty easy to avoid. This comes down to the correct “Real Estate Selection”, namely making sure that your purchase is:

- in an area of either increasing population or increasing demand;
- close to transport, shops, and public amenities;
- has a good land component to it; and
- is affordable to the average resident in that area

Real estate price inflation occurs for a variety of reasons:

a) Because of underlying inflation in the economy

Ever since the end of the Great Depression of the 1930’s, western as well as most other economies around the world, have been subject to economic inflation. This is the progressive increase in prices for most consumer items, and the corresponding decrease in the value of the nation’s currency unit.

During periods in the 1970’s, 1980’s and early “90’s, many western economies were suffering double-digit inflation, and whilst this may at first sound great to real estate speculators, bear in mind that interest rates during those times were correspondingly often in double digits as well!

So far in the 21st century, most western economies have enjoyed very low interest rates and correspondingly low single digit inflation. This may or may not continue. Nobody has a crystal ball, and we could be in for higher interest rates and inflation in the future, or possibly a return to deflationary times which we have not seen since the 1930’s. We need to be prepared for any and all possibilities. Fortunately, we are not dependant solely upon “economic inflation” for our real estate to appreciate. This is merely a contributory factor.

b) State of the Economy and Economic Health of the Nation

Real estate values also appreciate in line with the overall health of a nation’s economy, and the wealth of its citizens. If a country is enjoying economic success, has a low unemployment rate, and its citizens enjoy an increasing standard of living, then real estate prices for “in demand” locations will appreciate. This type of market is not only dependent on owner-occupiers for price value appreciation, but will also be helped along by investors seeking to build their nest eggs with their surplus equity and funds. The level of real estate investment in an economy is directly linked to the investor’s confidence in their nation’s present economic outlook. As with other investment classes, fear and greed are significant driving forces for investors.

c) Increasing Population

As stated earlier, one very valuable aspect to real estate, specifically the land component of it, is that we aren’t able to make any more of it! If a town, city, or even a particular suburb’s population is on the rise, so too will the real estate values. It’s all a part of the laws of supply and demand which influence the market values for almost every commodity.

This is one to take note of… If there are plans afoot for a new freeway, or a freeway extension, to link an outer suburb to downtown, you might like to investigate making a purchase in that outer suburb BEFORE the freeway is built. In many cases, the land values will increase several years before the completion of planned public works, so the earlier you can catch the wave the better. Such public works need not be limited to freeways or transportation infrastructure. A new shopping center, or any other commercial project or public work that is likely to enhance the desirability of the area, can be a precursor to future capital gains for that area.

d) Limited Supply in an “in demand” area

As touched on in the preceding paragraph, increasing demand for a limited supply of real estate occurs for reasons other than population increase.

Whilst a particular suburb may have been manufacturing oriented, the factories may have closed down as that industry may no longer be viable. If the suburb is in a desirable location, maybe close to the beach or not far from downtown, with good schools, shops and public transport, a process of gentrification may occur and the suburb may start to revitalize as a “café strip” lifestyle area. This will result in the area becoming more desirable to live in, and will attract more financially well-heeled owners and tenants! The net result… appreciation in real estate values.

So now that I have covered some of the reasons as to why real estate values appreciate, let’s touch on why price inflation of real estate in particular can be such a powerful wealth creation vehicle.

It all comes down to that first magic ingredient that real estate provides us with so much of: leverage.

If you purchase a $300K house and land package at 90% loan to value ratio, you are effectively only investing $30K (plus closing & transfer costs) to purchase that asset.

It’s historically quite common for real estate located in the metropolitan areas to double in value every 10 years. This is a compound rate of increase a little over 7% per annum.

For the sake of this example, I will assume a 5% per annum rate of appreciation. At the end of the first year, your $300K house and land package is now worth $315K. Hmm…. not bad you say? Fantastic I say! You only invested $30K of your own funds, therefore you have effectively realized a 50% cash-on-cash gain within the first 12mths. You’d be lucky to make a 5% return if you had instead parked your money at your local bank in a Term Deposit. This is ten times better!

But this is just the beginning. Your investment is now worth $315K, so let’s roll over to year 2 with another 5% appreciation in value: your asset is now worth $330,750; year 3 $347,287; year 4 $364,651; year 5 $382,884; year 6 $402,028; year 7 $422,130; year 8 $443,236… but wait a minute you say… it’s increasing in value by more than the original $15K per annum which we had after the first year? Indeed it is… because the value of your real estate asset is compounding! The increase in value, given the same 5% rate of appreciation, will become greater and greater as the years roll on.

Can you start to see the power in owning real estate? Now to be fair, values generally do not progress at this rate in a linear fashion. Several years may go by with very little or no capital appreciation, and then suddenly your area may experience several years of 10% or 15% per annum or more in capital gains. This is the cyclical nature of the market at work, but again as stated, it is not unreasonable to expect that well chosen real estate will double in value in every ten year period.

Now the hardest part about building wealth in real estate is making your first purchase. This is the purchase where you will have to find that 10% or 20% deposit to fund it. But once you are “in the game” and own your own little piece of appreciating real estate, you can use the increase in value from your original purchase to make subsequent purchases without having to save up to fund the 10% or 20% deposit in cash for each future purchase. You can simply borrow against the increase in value of your original investment to fund the deposit required to make subsequent purchases.

As time passes, you are creating a snowball effect, and your wealth will continue to multiply given stable economic conditions and well selected real estate in the right location.

So how do you determine what is “well selected investment real estate” and what is the “right location”? Click the following link for part two of Building Wealth With Real Estate: Selecting the Right Investment Real Estate.

This article is copyright © 2009 Financially Free Pty Ltd and CreateWealthWithRealEstate.com. All Rights Reserved.

You are welcome to reproduce this article on your own website or for your own readers, providing our copyright notice and the following live link is included at the bottom: Create Wealth With Real Estate. If you reproduce this article without this live clickable link, we will pursue you for breach of copyright.

Kieran M. Jackson, REALTOR®
Keller Williams Realty Greater Cleveland
27950 Chagrin Blvd
Cleveland, OH 44122

216-839-5500 — Office
216-854-8515 — Cell
216-456-2350 — Fax
KieranJackson@kw.com

http://createwealthwithrealestate.com